Suzano S.A. · BMFBOVESPA:SUZB3
Suzano — Debt Investor Presentation (July 2016)
26 slides from Suzano's debt investor presentation, July 2016
Slide 1: Fixed Income Presentation
Fixed Income Presentation July 2016 1
Slide 2: Disclaimer
Disclaimer The statements in this presentation constitute forward-looking statements. Such statements are subject to known and unknown risks and uncertainties that could cause the Company’s actual results to differ materially from those set forth in the forward-looking statements. These risks includ
Slide 3: Agenda
Agenda 1. Company Overview 2. Strategy 3. Pulp and Paper Market 4. Financial and Operational Highlights 3
Slide 4: Company Overview
Company Overview Suzano at a Glance Competitive Advantages Suzano Papel e Celulose is a forestry based publicly held Forestry Pulp Paper company, controlled by Suzano Holding. Shorter Eucalyptus Low production Regional leader With over 90 years of operations, the Company produces cycle: 7
Slide 5: Corporate Governance
Corporate Governance Board of Directors, Management, Committees and Policies Capital Structure (Mar/2016) Board of Director, Committees and Management Members of the Board are well-known in the Brazilian Corporate 42% Free Float landscape and are supported by the committees on the decision 56% makin
Slide 6: Forestry Assets
Forestry Assets Suzano’s forestry competitiveness allows its operation in different regions with adequate yields States of Maranhão, Pará, Tocantins and Piauí: • Total¹: 635 k ha 1,094 k ha • Planted²: 217 k ha of total area • Average Structural 550 k ha Distance: 150km of planted area States of Bah
Slide 7: Product Portfolio
Product Portfolio Production and sales optimization to maximize assets return Paperboard Pulp 35% Net Revenues Printing & Writing 39% 61% R$ 10.8bn1 65% Uncoated Coated Exports Domestic Pulp Paper Suzano is the world’s second largest eucalyptus market pulp producer and South America’s largest distri
Slide 8: Agenda
Agenda 1. Company Overview 2. Strategy 3. Pulp and Paper Market 4. Financial and Operational Highlights 8
Slide 9: Leverage Goal Achieved
Leverage Goal Achieved Consistent results allow Suzano to advance in the strategy Operational Cash Generation(1) (R$ billion) and Leverage (x Adjusted EBITDA) 5,2x 4,1x 5,0x 2,7x 2,3x 3,7x 2,3x 2,3x 3,7 3,4 1,5 1,1 dez/13 dez/14 dez/15 mar/16 Operational Cash Generation (1) (R$ million) Net Debt / A
Slide 10: Strategy to maximize the return on invested capital
Strategy to maximize the return on invested capital... ... and generate more value to shareholders 10
Slide 11: Project 5.1
Project 5.1 Investment in retrofitting and debottlenecking to reach the optimal structural cost Industrial investment (modernization) in Imperatriz and Mucuri mills Capacity of 5.1 million tonnes in 2018 Forest base increase and average distance reduction Cash cost reduction: lower inputs consumptio
Slide 12: Adjacent Businesses
Adjacent Businesses Investiments in high profitability and scalability projects that innovate and break paradigms FuturaGene Fluff First genetically modified clone First company in the world to use approved by Brazilian hardwood to produce fluff Biosafety Authority for commercial purposes Up to 70%
Slide 13: Agenda
Agenda 1. Company Overview 2. Strategy 3. Pulp and Paper Market 4. Financial and Operational Highlights 13
Slide 14: Global Paper Consumption
Global Paper Consumption Demand for pulp driven by tissue and paperboard consumption 4 Estimated demand growth until 2030 3 Tissue Containerboard 2 Paperboard Packaging Uncoated 1 Uncoated (%p.a.) Woodfree Mechanical 0 -1 Coated Other Woodfree -2 Coated -3 Mechanical Newsprint 20 40 60 80 100 Share
Slide 15: Tissue Consumption
Tissue Consumption Demand for tissue is impacted by economic growth, urbanization and culture Per-capita Tissue Consumption (Kg/person/year) Suzano has pulp market share relevance in the regions with the Per-capita consumption growth (2013 – 2030) 100% highest growth potential China 80% India 60% Br
Slide 16: Pulp Cash Cost
Pulp Cash Cost The new pulp projects are in the low-cost regions, mostly in Brazil Cash Cost CIF / Europe (US$/tonne) Hardwood Softwood 800 400 0 Other Europe East Canada East Europe East Europe West Canada Indonesia Iberic Pen. Canada USA Chile USA China Bel/France Finland Finland Other world Brazi
Slide 17: Brazilian Paper Industry
Brazilian Paper Industry Suzano has a leading position in all segments in which it operates Brazilian Paper Demand in LTM* (million tonne) Total 86% 14% 6,3 Printing & Writing 85% 15% 1,8 35% Suzano Market 27% Share Paperboard 92% 0,6 Domestic Sales Imports Source: Forestry Industry Association (IBA
Slide 18: Agenda
Agenda 1. Company Overview 2. Strategy 3. Pulp and Paper Market 4. Financial and Operational Highlights 18
Slide 19: Operating Results
Operating Results Pulp Business: Presence in the main international markets and strategic relationship with clients Paper Business: Operational excellence in paper: product portfolio and revenue management, optimization of assets, and strengthening of distribution channel Pulp and Paper Production P
Slide 20: Financial Results
Financial Results Cost performance bellow inflation Net Revenue Consolidated Pulp Cash Cost* (R$ million) (R$/tonne) 10.785 Inflation: +19% 10.224 +14,5% 7.264 3.621 3.765 642 664 5.689 580 536 3.413 3.111 6.603 7.021 3.851 2.577 2013 2014 2015 1Q 16, LTM* 2013 2014 2015 1Q16, LTM* Average 2.16 2.35
Slide 21: Financial Results
Financial Results Suzano has posted the highest operational cash generation in the industry Adjusted EBITDA Adjusted EBITDA and Adjusted EBITDA Margin (R$/tonne) (R$ million) (%) 1.016 1.075 44,9% 45,7% 31,3% 33,8% 4.594 4.931 588 555 2.452 1.781 2013 2014 2015 1Q 16, LTM* 2013 2014 2015 1Q 16, LTM*
Slide 22: Debt Profile
Debt Profile Adequate debt profile and competitive cost of debt Currency Breakdown Debt Maturity Profile (% of Net Debt) (R$ billion) 3,9 BRL 25% 2,8 2,9 2,4 2,0 1,3 1,2 0,2 USD Cash 9M16 2017 2018 2019 2020 2021 2022 75% Position onward Secured1 vs. Unsecured Debt Average Cost of Debt (%) (%) Secur
Slide 23: 2016 CAPEX
2016 CAPEX Estimated CAPEX for 2016: R$ 2.4 billion 0,38 0,28 0,10 0,51 Discretionary Capex = R$ 1.3 billion 2,4 1,1 Sustaining Capex Project 5.1 (1) Others Tissue (2) Others Total Capex (2016) Sustaining Capex Structural Competitiviness Adjacent Business Nota: 1 Estimated Capex for 2017 and 2018 is
Slide 24: Rating
Rating Suzano is on track to achieve Investment Grade Klabin CMPC Arauco Suzano Fibria Standard & Poors BB+ BBB- BBB- BB+ BBB- Moody's - - Baa3 Ba2 Ba1 Fitch Ratings BBB- BBB+ BBB BB+ BBB- 5,4x 3,2x 2,9x Net Debt / 2,3x 1,8x Adjusted EBITDA LTM1 (US$) Klabin CMPC Arauco* Suzano Fibria 1Last twelve m
Slide 25: Suzano Sustainable Initiatives
Suzano Sustainable Initiatives Suzano aims closely to integrate its economic objectives with environmental and social responsibility, and to sustainably develop its forestry resources and pulp production technologies. Sustainable Initiatives Expenditures related to sustainably managing forests that
Slide 26: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br 26