Irani Papel E Embalagem Sa · BMFBOVESPA:RANI3
Irani Papel E Embalagem Sa — Investor Presentation (December 2020)
36 slides from Irani Papel E Embalagem Sa's investor presentation, December 2020
Slide 1: Irani - RANI B3 Listed NM
irani ) RANI B3 LISTED NM
Slide 2: Irani: the Brazilian pure player in the packaging sector listed on B3's Novo Mercado
IRANI: THE BRAZILIAN PURE PLAYER IN THE PACKAGING SECTOR LISTED ON B3’S NOVO MERCADO 8 decades of experience more than 40 environmental awards at regional and national levels more than 2,200 employees BRL 972mm 18% Export 82% Domestic market 321 million sqm. of corrugated containerboard 292 thousand
Slide 3: We are ready for a new growth
WE ARE READY FOR A NEW GROWTH M&A 1994: Acquisition of the Company by Grupo Habitasul Greenfield 1997: Entrance into packaging segment 2018: Simplifique Project to implement 2013: Acquisition of São Roberto SAP S/4HANA as main ERP and long- term strategic planning Greenfield 2019: Divestments totali
Slide 4: Our executive board represents our essence
OUR EXECUTIVE BOARD REPRESENTS OUR ESSENCE Sérgio Ribas Fabiano Oliveira Henrique Zugman Lindomar Lima Odivan Cargnin Chief Executive Officer People, Strategy and Paper and Forestry Packaging Business Officer Chief Financial Officer Management Officer Businesses Officer and Investor Relations Click
Slide 5: Irani has a diversified customer base, serving domestic and external markets
IRANI HAS A DIVERSIFIED CUSTOMER BASE, SERVING THE DOMESTIC AND EXTERNAL MARKETS Corrugated Containerboard Paper for Packaging Resin Packaging Net Revenues Breakdown by Market LTM 100% 72% 18% 9% 91% DOMESTIC EXPORT 8% % of Net Revenue LTM 39% 53% LTM: Last Twelve Months as of Sep/20
Slide 6: Mills and facilities are strategically located in the main regions of Brazil
MILLS AND FACILITIES ARE STRATEGICALLY LOCATED IN THE MAIN REGIONS OF BRAZIL, IN TERMS OF GDP AND FOREST BASE Forests Land Area Focus Pulp, market timber and energy SC | Santa Catarina 27,947 ha generated from biomass RS | Rio Grande do Sul 5,959 ha Resin Total 33,906 ha Corrugated Total Production
Slide 7: Resilient and Attractive Investment Thesis
Resilient and Attractive Investment Thesis
Slide 8: Resilient and attractive investment thesis
RESILIENT AND ATTRACTIVE INVESTMENT THESIS 1 2 3 4 Active Management Sizable Opportunity in a Market Dominance High Level Governance Focused on Implementing Sector With Favorable Supported by Final Client- Practices Supported by Key Strategic Initiatives in Dynamics Focused Approach, Renowned Board
Slide 9: Active management focused on implementing key strategic initiatives
1 ACTIVE MANAGEMENT FOCUSED ON IMPLEMENTING KEY STRATEGIC INITIATIVES Initiative Results Strategic Consulting 2008 - 2018 • Projects with top tier firms focused on improving • Consulting projects by Falconi, EY, results, reducing costs, increasing productivity and Seta, Otima and Escola de mitigatin
Slide 10: We have several people management practices to develop engaged and high performance teams
1 WE HAVE SEVERAL PEOPLE MANAGEMENT PRACTICES TO DEVELOP ENGAGED AND HIGH PERFORMANCE TEAMS Being one of Brazil’s best companies in among the more than which to work is part of our vision; this only comes about when our employees best Top Ser BRL 1.5 recognize us in this manner. companies to work Hu
Slide 11: Sizable opportunity in a sector with favorable dynamics
2 SIZABLE OPPORTUNITY IN A SECTOR WITH FAVORABLE DYNAMICS Corrugated Containerboard is a resilient market and is still underpenetrated in Brazil. Brazil is the 6th major Corrugated Containerboard packaging market in the world. The corrugated containerboard demand in Brazil is at its highest 76,2 his
Slide 12: Sizable opportunity in a sector with favorable dynamics
2 SIZABLE OPPORTUNITY IN A SECTOR WITH FAVORABLE DYNAMICS New wave of Paper as one Increasing share of sustainability driven by of the best packaging e-commerce and tele- the end consumer solutions deliveries Shoppers want more than just Paper is renewable and easily E-commerce is a sales channel qu
Slide 13: Market dominance supported by... Corrugated Containerboard Packaging
3 MARKET DOMINANCE SUPPORTED BY… Corrugated Containerboard Packaging Exposure to non-cyclical BOX SHEET segments with solid and non-concentrated Crease-cut & briefcase-style High-resistance sheets in customer base corrugated containerboard boxes single and double walls with with several applications
Slide 14: Market dominance supported by... Paper for Packaging
3 MARKET DOMINANCE SUPPORTED BY… Paper for Packaging Mix of quality FLEXIKRAFT E products FINEKRAFT BAGKRAFT FLATKRAFT FLASHKRAFT ENVELOKRAFT Paper with several Recycled paper that Ideal paper for Monolucid and long Paper for the envelope food & beverage allows high printing manufacturing virgin fib
Slide 15: ...and integrated business model
3 …AND INTEGRATED BUSINESS MODEL Irani has an integrated pulp and paper producer with own forestry base and significant portion of own power generation Own forestry base Timber Containerboard Corrugated OCC Integrated pulp production and kraft paper containerboard packaging OCC recycling Forest up t
Slide 16: High corporate governance standards
4 HIGH CORPORATE GOVERNANCE STANDARDS Board of Chairman Tag Along Directors Péricles Pereira Druck • 100% tag-along rights to preferred shareholders Distribution of dividends • Up to 50% of the adjusted net profit in equal conditions between shareholders Board of Directors Vice Chairman • Five manda
Slide 17: ESG – Environmental, Social and Governance
4 ESG – ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environmental Irani releases GRI certifications Sustainability reports for 14 years and has several procedures to guarantee As part of its environment ESG initiatives and friendly strategy, Irani has 2006 2007 2008 2009 2010 2011 2012 commitment. other in
Slide 18: We are a carbon-neutral company by nature
4 ESG – ENVIRONMENTAL, SOCIAL AND GOVERNANCE We are a carbon-neutral Pollution Emission x Removal ‘000 tons CO2 company by nature. That means we capture more 529 544 565 586 greenhouse gases from the atmosphere than we emit. In addition to being guided by the GHG Protocol 643 617 634 650 guidelines
Slide 19: ESG – Environmental, Social and Governance
4 ESG – ENVIRONMENTAL, SOCIAL AND GOVERNANCE We formalized the commitment to promoting the circular economy in the value chain in our strategic map for the 2018-2027 cycle. Our teams are constantly evaluating industrial processes, capturing opportunities to reduce the consumption of materials and an
Slide 20: Earnings Release 3Q20
Earnings Release 3Q20
Slide 21: Highlights of 3Q20
HIGHLIGHTS OF 3Q20 Adjusted EBITDA of BRL 55.6 million in 3Q20 with a growth of 10.4% in relation to 3Q19 Company held a public Set of investments with great offering of shares, raising environmental impact BRL 405 million Plataforma Gaia Pro forma Net Operating revenue Net debt/Adjusted EBITDA Net
Slide 22: Results 3Q20
RESULTS 3Q20 Net Revenue and % of Net profit (loss) Adjusted EBITDA and Margin exports [BRL thousand] [BRL thousand] [BRL thousand] +9.4% +66.9% +10.4% 25,558 261,363 238,913 55.637 50.412 15,312 19.1% 21.3% 21.1% 15.5% 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20
Slide 23: Results 3Q20: Corrugated Containerboard Packaging
RESULTS 3Q20 Corrugated Containerboard Packaging Sales Volume Average Prices ABPO Irani Irani +12.7% +4.1% +10.2% [metric ton] 4,270 4,447 [BRL/metric ton] 936,504 1,032,385 43,167 38,300 +10.3% +11.9% +4.6% [thousand m²] 2,014,414 [BRL/thousand m²] 1,826,933 2,028 2,122 80,603 90,179 3Q19 3Q20 3Q19
Slide 24: Results 3Q20: Paper for Packaging
RESULTS 3Q20 Paper for Packaging Total sales Average Prices [metric ton] -0.4% [BRL/metric ton] 32,057 31,923 3,875 3,980 +2.7% 23,356 23,572 Paper for sacks Containerboard 2,311 +3.7% 2,398 8,701 8,351 3Q19 3Q20 3Q19 3Q20
Slide 25: Results 3Q20: Paper for Packaging – Scrap paper price evolution
RESULTS 3Q20 Paper for Packaging Scrap Paper Price Evolution [Net Price BRL/t|FOB] Anguti Irani +17.0% +13.7% 618 723 628 714 3Q19 3Q20 3Q19 3Q20 Anguti Estatística – Scrap Paper Bulletin
Slide 26: Results 3Q20: RS Forests and Resins
RESULTS 3Q20 RS Forests and Resins Sale of Gum Rosin and Turpentine Average Prices of Gum Rosin Average Prices of Turpentine [metric ton] [BRL/ metric ton] [BRL/metric ton] -7.5% +18.4% -32.3% 14,324 4,323 3,401 3,146 3,651 9,696 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20
Slide 27: Indebtedness
INDEBTEDNESS Indebtedness and Net Debt/EBITDA The average cost of debt was 6.26% p.y. 967.3 Gross Debt Profile 922.4 825.0 838.3 198.1 813.3 817.8 776.8 145.4 786.9 110.0 National 85.7 132.2 98.6 777.0 108.2 currency Foreign 769.3 633.5 168.1 727.6 728.3 640.4 93% currency 719.2 692.7 678.7 7% 137.7
Slide 28: Gaia Platform
irani Gaia Plataform a CAID platform
Slide 29: Gaia I
We will expand our process of chemicals and utilities Gaia | recovery focusing on sustainability and full respect of the : environment. The project starting point is the installation of Expansion of anew wood yard, followed by the installation of a recovery Chemicals and boiler, a new power cogenera
Slide 30: Gaia II
irani Gaia II Expansion of Chemicals MP#2 Reform Cristo Rei Sao Luiz and Utilities Recovery a U Repowering Repowering rove) Gaia | Gaia Ill Gaia IV Gaia V |
Slide 31: Gaia III
irani’)) Gaia III Gaia | Gaia Il Gaia III Gaia IV Gaia V CO : Expansion of Chemicals Expansion of SC MP#2 r Cristo Rei Sao Luiz and Utilities Recovery Packaging Unit Repowering Repowering
Slide 32: Gaia IV
Gaia IV At this stage, impacts of Gaia Platform make a significant leap in power sufficiency. Repowering of Cristo Rei hydraulic G Ala IV power plant, in the SC Paper Unit, will allow 84% increase in the power plant average generation, with a new Cristo Rei transmission line, new generators and turb
Slide 33: Gaia V
Gaia V Sao Luiz Repowering ove) Gaia | Expansion of Chemicals and Utilities Recovery Repowering of Sao Luiz hydraulic power plant, in the SC Paper Unit, will allow 233% increase in the power plant average generation, with a new transmission line, new generators and turbines as well as infrastructure
Slide 34: Gaia platform will lead us to new levels of profitability
Gaia plataform will lead us to new levels of profitability Total Fixed Project Unit Schedule Capex Capex Gaia I – Expansion of Chemicals and Paper SC Oct/20 Jul/23 455,561 451,604 Utilities Recovery Gaia II – Expansion of SC Packaging Packaging SC Sep/20 Oct/22 149,156 141,819 Unit Gaia III – MP#2 R
Slide 35: Disclaimer
DISCLAIMER This presentation may contain certain affirmations This is because a number of important factors and statements expressing beliefs and trends may cause actual results to be materially related to Irani Papel e Embalagem S.A. (“Irani” or different from the plans, objectives and "Company") a
Slide 36: www.irani.com.br
www.irani.com.br
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