Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Suzano Papel e Celulose — Q4 2018 Earnings Presentation
13 slides from Suzano's earnings presentation, Feb 22, 2019
Slide 1: Disclaimer
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 2: 2018 represents a turning point in Suzano's history
2018 represents a turning point in Suzano’s history 3 HIGHLIGHTS Record Operational Cash Generation¹: R$ 5.5 billion Record Adjusted EBITDA² : R$ 6.8 billion ¹ Operating Cash Generation = Adjusted EBITDA less Sustaining CAPEX. ² Adjusted for non-recurring factors. Fibria transaction was concluded su
Slide 3: Paper: Continuous improvement in operational and sales performance
Paper Production (´000 ton) Paper Sales (´000 ton) Suzano prices in Brazil (R$/ton) Suzano export prices (US$/ton) 4 Paper Continuous improvement in operational and sales performance ¹ Excludes consumer goods unit from 1Q18 onward. average in R$/ton average in US$/ton 806 804 374 376 1,180 1,180 201
Slide 4: Paper: Operational evolution combined with price growth favored profitability
Paper Adjusted EBITDA (R$/ton) Paper ROIC (%) 5 Paper Operational evolution combined with price growth favored profitability ¹ Excludes consumer goods unit from 1Q18 onward. ² Impact due to the Management’s Long-Term Incentive: (i) 3Q18: -R$ 67/ton in EBITDA; (ii) 4Q18: -R$ 36/ton in EBITDA; (iii) L
Slide 5: Pulp: Results boosted by exogenous factors
Pulp Production and Sales (´000 ton) Average net pulp price (R$/ton and US$/ton) Pulp Adjusted EBITDA (R$/ton) Pulp ROIC (%) LTM: last twelve months. Average FX (BRL/USD) R$3.65 R$3.25 R$3.96 R$3.81 R$3.19 6 Pulp Results boosted by exogenous factors 1,222 1,895 1,806 1,017 1,699 4Q17 3Q18 4Q18 2017
Slide 6: Input prices and exchange rate compress cash cost together with lower volume
Quarterly Pulp Cash Cost (excluding downtimes – R$/ton) Note: In line with market practice and for comparison purposes, the methodology for calculating the cash cost has been changed from 1Q18 onward and currently does not consider the depletion of wood from third-party suppliers. LTM Pulp Cash Cost
Slide 7: Investments execution in line with the forecast
8 ¹ The 2nd tranche of the acquisition price will be paid in 2018 (50%) and 2019 (50%). ² Estimated CAPEX for 2018. 2018 Maintenance 1.3 0.3 Acquisition of Facepa 2.8 Total Structural Competitiveness & Adjacent Business 0.6 0.7 Acquisition of land and forests¹ Capex (R$ billion) 2017 1.1 - 1.8 0.7 -
Slide 8: Beginning of the construction of a future with greater capacity in value generation
Beginning of the construction of a future with greater capacity in value generation 9 Corporate merger and integration of processes and systems in process Integrated management and single corporate office since January 14th Drivers of the new culture already disseminated Capture of synergies in proc
Slide 9: Pro Forma Performance: Revenue favored by higher volumes and prices
P r o F o r m a P e r f o r m a n c e ¹ R e v e n u e f a v o r e d b y h i g h e r v o l u m e s a n d p r i c e s Production and Sales² (´000 ton) Net Revenue (R$ million) 31,702 Pulp Paper Klabin 2017 2018 Pulp Cash Cost (excluding downtimes - R$/ton) 33 622 611 ( 19 ) 2018 2018 2017 Cash Cost Wo
Slide 10: Pro Forma Performance: Record Adjusted EBITDA and Operational Cash Generation
P r o F o r m a P e r f o m a n c e ¹ R e c o r d A d j u s t e d E B I T D A a n d O p e r a t i o n a l C a s h G e n e r a t i o n f o r b o t h c o m p a n i e s Operational Cash Generation ³ (R$ million and R$/ton) Adjusted EBITDA² (R$ million) and Margin² (%) Suzano Fibria Suzano Fibria 55% 1,
Slide 11: Adjusted Pro Forma Indebtedness
12 Adjusted Pro Forma Indebtedness¹ Long-term debt with competitive cost ¹ Not audited. ² The gross and net debt considers: (i) the accounting position of Suzano and Fibria on 12/31/2018; (ii) less the transaction’s Cash Installment payment (R$ 27.8 billion); (iii) plus the cash raising and debt of
Slide 12: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br
Slide 13: Suzano Investor Relations
SUZANO ¢——_ Investor Relations wwwsuzano.com.br/ir ri@suzano.com.br
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