Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Suzano Papel e Celulose — Q3 2018 Earnings Presentation
13 slides from Suzano's earnings presentation, Oct 25, 2018
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: Highlights
¹ Operating Cash Generation = Adjusted EBITDA less Sustaining CAPEX. ² Adjusted for non-recurring factors. 3 HIGHLIGHTS Adjusted EBITDA²: R$ 2,118 MM +79% vs. 3Q17 +35% vs. 2Q18 Operational Cash Generation¹: R$ 1,795 MM +98% vs. 3Q17 +40% vs. 2Q18 Production: 1,291 k ton +12% vs. 3Q17 +14% vs. 2Q18
Slide 3: Paper: Operational stability leads to consistent results
Paper Production (‘000 ton) Paper Sales (‘000 ton) Paper Adjusted EBITDA (R$/ton) Paper ROIC (%) 4 ¹ Excludes other businesses from 1Q18 onward, i.e. consumer goods. ² LTM: last twelve months ending on 09/30/2018. ³ Impact due to the Management’s Long-Term Incentive: (i) 2Q18: -R$ 120/ton in EBITDA
Slide 4: Pulp: Expressive volumes due to a highly demanded market
Pulp Production (‘000 ton) Pulp Sales (‘000 ton) Pulp Adjusted EBITDA (R$/ton) Pulp ROIC (%) 5 ¹ LTM: last twelve months ending on 09/30/2018. Pulp Expressive volumes due to a highly demanded market R$3.51 R$3.16 R$3.61 R$3.96 R$3.19 Average FX (BRL/USD) 1,088 1,646 1,895 1,017 1,551 3Q17 2Q18 3Q18
Slide 5: Pulp: Competitive cash cost even with high exchange rates and inflation
Pulp Competitive cash cost even with high exchange rates and inflation Note: In line with market practice and for comparison purposes, the methodology for calculating the cash cost has been changed from 1Q18 onward and currently does not consider the depletion of wood from third-party suppliers. 6 Q
Slide 6: Investments
7 Investments ¹ The 2nd tranche of the acquisition price will be paid in 2018 (50%) and 2019 (50%). 9M18 Maintenance 0.9 0.3 Acquisition of Facepa 2.1 Total Structural Competitiveness & Adjacent Business 0.5 0.5 Acquisition of land and forests¹ Capex (R$ billion) 2017 1.1 - 1.8 0.7 - 2018e 1.2 0.3 2
Slide 7: Leverage and Amortization Schedule
Leverage¹ (in times) Amortization Schedule (R$ million) Gross Debt: R$ 23.8 billion (US$ 5.9 billion) Net Debt: R$ 10.8 billion (US$ 2.7 billion) 8 ¹ Leverage: net debt over Adjusted EBITDA of the last twelve months. Average Cost of Debt (in US$): 5.2% p.a. based on market swap curve Average Debt Ma
Slide 8: Fibria Business Combination evolving on expected schedule
9 Regulatory Approval SEC filings Shareholder meetings Closing Fibria Business Combination Business combination with Fibria evolving on expected schedule Agreement between Suzano and Fibria Antitrust Unrestricted authorization issued by the Federal Trade Commission (US antitrust), SAMR (China), Turk
Slide 9: Hedge Operations: Instruments of protection reduce exchange exposure
Cash Payment (R$) Hedged Amount (R$) Funds Raised (R$)¹ Derivatives Operations (US$) Hedge Exchange (R$/US$) Derivatives Operations (R$) % Hedged Exchange rate (R$/US$) 03/15/2018 29,027 - - - - - - 3.29 Hedge Operations Instruments of protection reduce exchange exposure 06/30/2018 29,571 21,818 4,6
Slide 10: Derivatives Results
11 (on 09/30/2018) US$ 11,730 (average FX R$ 3.7374) Derivatives Results Result of the period impacted by the closing exchange rate ¹ In the 3Q18 the result of derivatives totaled -R$ 1,367 million, of which -R$ 1,001 million was the cash effect of the Fibria Transaction. (R$ 1,367)¹ Fibria Transact
Slide 11: Fibria Business Combination Transaction Financing structurally concluded
(R$ million) Cash Installment ¹ on 03/15/2018 CDI adjustment until 09/30/2018 Cash Installment on 09/30/2018 Mark to Market of hedge on 09/30/2018 1st Tranche² (6-year term loan) Cash position on 09/30/2018 Subtotal Additional financing Fibria Business Combination Transaction Financing structurally
Slide 12: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br
Slide 13: Investor Relations
J ; Investor Relations www.suzano.com.br/ir ri@suzano.com.br S) RUZANQ
Suzano Papel e Celulose — Q3 2018 Earnings Presentation on 6ix