Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Suzano Papel e Celulose — Q2 2018 Earnings Presentation
13 slides from Suzano's earnings presentation, Aug 10, 2018
Slide 1: Earnings Conference Call 2Q18
Earnings Conference Call 2Q18 Exhibit 99.3
Slide 2: Forward-looking statements and no offer or solicitation
This communication contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements are identified with words like “believe,”
Slide 3: Highlights: quarter affected by strike and exchange variation
Quarter affected by the truck drivers’ strike and exchange variation Adjusted EBITDA²: R$ 1,573 MM +36% vs. 2Q17 +3% vs. 1Q18 Operational Cash Generation¹: R$ 1,279 MM +40% vs. 2Q17 +1% vs. 1Q18 ¹ Operating Cash Generation = Adjusted EBITDA less Sustaining CAPEX. | ² Adjusted for non-recurring facto
Slide 4: Paper: operational stability supports the evolution of results
96 ¹ Excludes other businesses from 1Q18 onward, i.e. consumer goods. | ² LTM: last twelve months ending on 06/30/2018. | ³ Impact referring to the Management’s Long-Term Incentive : (i) 1Q18: -R$ 33/ton in EBITDA and -0,1 p.p. in ROIC ; (ii) 2Q18: -R$ 120/ton in EBITDA and -0,6 p.p. in ROIC; (iii)
Slide 5: Pulp: results supported by exchange variation, volume affected by strike
97 Pulp Results supported by exchange variation and volume affected by truck drivers’ strike FX (BRL/USD) R$3.32 R$3.21 R$3.24 R$3.61 R$3.19 Pulp Production (‘000 ton) Pulp Adjusted EBITDA (R$/ton) Pulp ROIC (%) ¹ LTM: last twelve months ending on 06/30/2018. Pulp Sales (‘000 ton)
Slide 6: Pulp production cash cost affected by lower volume and raw material prices
Pulp Production cash cost affected by lower volume produced and raw material prices Price increase of chemicals inputs (indexed to the U.S. dollar) Reduction of approximately 80,000 tons of market pulp in 2Q18 Lower dilution of fixed costs Obs.: In line with market practice and for comparison purpos
Slide 7: Steady capital discipline
99 Steady capital discipline ¹ The 2nd tranche of the acquisition price will be paid in 2018 (50%) and 2019 (50%). 6M18 Maintenance 0.6 0.3 Acquisition of Facepa 1.3 Total Structural Competitiveness & Adjacent Business 0.3 0.2 Acquisition of land and forests¹ Capex (R$ billion) 2017 1.1 - 1.8 0.7 -
Slide 8: Leverage and amortization schedule
Leverage¹ (in times) Amortization Schedule (R$ million) Net Debt: R$ 9.9 billion (US$ 2.6 billion) 100 ¹ Leverage measured by net debt over Adjusted EBITDA of the last twelve months. Average Cost of Debt (in US$): 4.6% p.a. based on market swap curve Average Debt Maturity: 90 months Continuous impro
Slide 9: Fibria Business Combination Transaction Timeline
10 Regulatory Approval SEC filings Shareholder meetings Closing Fibria Business Combination Transaction Timeline Agreement between Suzano and Fibria Antitrust Unrestricted authorization issued by the Federal Trade Commission (US antitrust) Antitrust clearance processes in progress: CADE (Brazil), SA
Slide 10: Hedge operations: instruments of protection reduce exchange exposure
03/15/2018 Cash Payment (R$) Hedged Amount (R$) % Hedged in Reais Hedged Amount (US$) Exchange rate of Hedge (R$/US$) Exposure (US$) Exchange rate (R$/US$) 29,027 - - - - 8,837 3.29 06/30/2018 SENSITIVITY at each R$ 0.10/US$ variation ~US$ 277 million ~US$ 54 million Hedge Operations Instruments of
Slide 11: Impact of the hedge on the cash payment in the Fibria transaction
103 (on 06/30/2018) US$ 9,180 (R$ 2,550) (average exchange rate of R$3.5961/US$, considering swaps) Derivatives Results Impact of the hedge on the cash payment in the Fibria business combination transaction
Slide 12: Cash installment and financing sources for the transaction
104 (R$ million - on 06/30/2018) ¹ Cash Installment: payment of R$ 52.50 to Fibria’s shareholders for each common share issued by Fibria, which will be subject to adjustment in accordance to the variation of the CDI rate from 03/15/2018 to the date of consummation of the Transaction. | ² Commitment:
Slide 13: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br
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