Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q1 2017 Earnings Presentation
12 slides from Suzano's earnings presentation, May 2017
Slide 1: Presentation May 2017
Presentation May 2017
Slide 2: Why to invest in SUZANO?
Why to invest in SUZANO ? Strategy to Maximize the Return on Invested Capital Competitive Advantages and Leading Position in the Industry Strong Operating Cash Flow
Slide 3: Strategy: Maximizing returns for shareholders
Strategy Maximizing returns for shareholders Transformation Structural Adjacent Reshaping of Competitiveness Businesses the Industry is our foundation o Anticipated return o Investments in adjacent o Transformational changes improvement as result of businesses such as in the industry should lead cos
Slide 4: Why to invest in SUZANO?
Why to invest in SUZANO ? Strategy to Maximize the Return on Invested Capital Competitive Advantages and Leading Position in the Industry Strong Operating Cash Flow
Slide 5: Wood Competitiveness
Wood Competitiveness Suzano’s forest competitiveness with adequate yield allows lower wood cost BHKP Wood Cost by region (US$/tonne) Suzano Brazil Chile / East Canada Indonesia Finaland Sweden Bel / Other USA Iberia Japan China Uruguay Europe France Asia FX of R$3.12 US$ Source: Hawkins Wright (Mar/
Slide 6: Suzano's Pulp Cash Cost
Suzano’s Pulp Cash Cost Downward trend continuous Wood cost reduction Optimization of wood supply Consolidated Pulp Cash Cost Ex-Maintenance (R$/ton) 642 Target Cash Cost Average distance reduction 623 605 585 Industrial cost reduction 570 475 Debottlenecking of Imperatriz 2015 2016 LTM¹ 1Q17 1Q17 2
Slide 7: Paper business to benefit from the Brazilian Economy recovery
Paper business to benefit from the Brazilian Economy recovery Brazilian Paper Demand (Thousand tons) Paper market is less volatile Printing & Writing Paperboard 2,375 2,362 Resilient cash flow 327 1,835 1,826 327 292 291 Brazilian paper market is consolidated Leadership position in the Brazilian 2,0
Slide 8: Suzano's Paper Competitiveness
Suzano’s Paper Competitiveness Suzano is an integrated paper producer, which leads to a higher contribution margin per ton Domestic Sales 68% Suzano’s Domestic Paper Prices (R$/ton) 3,140 3,178 2,792 2,614 2,418 Price adjustment above inflation Dec/13 Dec/14 Dec/15 Dec/16 Mar/17 Strong distribution
Slide 9: There is more to come: Tissue
There is more to come: Tissue Competitiveness on production and logistics adds value to pulp Cash Flow (R$/ton¹) Operational Logistic Integrated Production close production and to the North and control of more than Northeast 90% of cash cost markets in Brazil Final product Market Pulp Potential Tax
Slide 10: Why to invest in SUZANO?
Why to invest in SUZANO ? Strategy to Maximize the Return on Invested Capital Competitive Advantages and Leading Position in the Industry Strong Operating Cash Flow
Slide 11: ROIC is the indicator used to manage Suzano
ROIC is the indicator used to managed Suzano Operating Cash Flow¹ (R$ million) 3.5 ROIC (%) 2.8 2.5 1.1 1.4 15.1% 11.8% 2013 2014 2015 2016 LTM 10.6% 6.4% 5.2% Adjusted EBITDA (R$ billion) 4.6 4.0 3.4 2013 2014 2015 2016 LTM 2.4 1.8 2013 2014 2015 2016 LTM 793 745 784 696 675 Avg Europe FOEX 677 609
Slide 12: #proudtobesuzano
#proudtobesuzano suzano.com.br 12