Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q1 2020 Earnings Presentation
14 slides from Suzano's earnings presentation, May 15, 2020
Slide 1: Earnings Conference Call 1Q20
Earnings Conference Call 1Q20 1
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are considered “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements are identified with words
Slide 3: Executive Summary – 1Q20
Executive Summary – 1Q20 Resilience in adverse environment Pulp: Paper1: 2.9 million tons 239 thousand tons Sales Volume Index Adjusted EBITDA: R$3.0 billion Inventory reduction - pulp: ~500 thousand tons Operating Cash Generation2: R$2.3 billion Cash cost ex-downtimes: R$596/ton Capex 2020: reducti
Slide 4: Systemic approach to the crisis generates operational stability
Business Resilience Systemic approach stability to the crisis generates operational • Preventive and mitigating measures according to directives of local and international health authorities • Support to suppliers and service providers People Society • R$50 million contribution to contain the pandem
Slide 5: Paper: COGS reduction favors EBITDA performance
Business Resilience Paper: COGS reduction favors EBITDA performance Paper Production (‘000 tons) Paper Sales (‘000 tons) Local Foreign 1,150 Adjusted EBITDA from Paper1 Net Average Price (R$/ton) 1,380 396 R$ MM 3,646 1,160 1,145 R$/ton 5 Excludes Consumer Goods unit. | 1 Excludes Long Term Incentiv
Slide 6: Pulp: diversified presence in terms of regions and segments
Business Resilience Pulp: diversified presence in terms of regions and segments Records Diversified sales1 2,856 120% 1% Others Sales Volume (‘000 tons) ecialties Americas P&W Europe ssue BRL Net Prices2 (per ton) Sales by region Pulp end-use USD 6 1 Net revenues LTM 1Q20. | 2 Foreign market. + R$15
Slide 7: Pulp: production in multiple high-scale facilities provides flexibility
Business Resilience Pulp: production in multiple high-scale facilities provides flexibility Pulp Production (‘000 tons) 7 industrial sites and forestry base strategically located o 2,337 3 pulp export ports o Pulp Cash Cost 1Q20 vs. 4Q19 (ex-downtimes – R$/ton) Pulp Cash Cost 1Q20 vs. 1Q19 (ex-downt
Slide 8: FX depreciation benefits cash generation
Business Resilience FX depreciation benefits cash generation Revenues 88% USD Pulp: Adjusted EBITDA1 (R$/ton) and EBITDA margin (%) Margin (%) COGS 20% USD SG&A 27% USD Sustaining Capex 11% USD R$/ton FX sensitivity Average FX ~ R$ 0.5 billion in EBITDA Sensitivity for each R$0.10/US$ variation 8 1
Slide 9: Robust Balance Sheet: Strong cash position and long-term debt profile
Robust Balance Sheet Strong cash position and long-term debt profile Net Debt² (billion) and Leverage (in times) Amortization Schedule (US$ billion) 6.0x Average Cost (in US$)¹: 4.5% p.a. Average Term1: 82 months In R$ 5.0x In US$ 6.4 4.9x 4.8x 2.3 RCF 2.2 66.0 13.4 12.7 1.2 Cash On Hand3 0.8 55% in
Slide 10: Robust Balance Sheet: Accounting financial result impacted by FX depreciation
Robust Balance Sheet Accounting financial result impacted by FX depreciation, with no cash effect until maturities Hedging Policy Accounting Financial Result 1Q20 (R$ billion) Dollarization of between 95% and 105% of net debt (Debt in US$ or in R$ swapped to US$) Cash flow hedge with 18-month horizo
Slide 11: Robust Balance Sheet: Hedging policy protects cash generation
obust Balance Sheet Hedging policy protects cash generation Cash Impact 2020 (2Q-4Q)1 - R$ billion Cash Impact 20211 - R$ billion 4.00 3.00 FX (vs. 4.00) 5.00 (vs. 4.00) 6.00 (vs. 4.00) 4.00 FX 3.00 (vs. 4.00) 5.00 (vs. 4.00) 6.00 (vs. 4.00) D EBITDA 0.0 -3.8 3.8 7.5 D EBITDA 0.0 -5.0 5.0 10.0 (-) D
Slide 12: Robust Balance Sheet: Greater financial discipline given uncertain conjuncture
Robust Balance Sheet Greater financial discipline given uncertain conjuncture 1T20 2020e (previous) 2020e (current) Capex (R$ billion) Sustaining 07 3.6 3.5 Modernization and Expansion 0.0 0.3 0.2 Port Terminals 0.1 0.1 0.1 Forest and Land 0.1 0.4 0.4 Total 0.9 4.4 4.2 - R$0.2 B 12
Slide 13: 1Q20 Takeaways
1Q20 Takeaways Culture Focus on People, Society and Business + Competitiveness Global presence: record sales volume and inventory normalization Increasingly competitive assets and dilluted operational risk + Financial robustness FX depreciation benefits cash generation Increased cash position in the
Slide 14: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br