Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q1 2021 Earnings Presentation
14 slides from Suzano's earnings presentation, May 14, 2021
Slide 1: 1Q21 Earnings Conference Call
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Slide 2: Disclaimer
Disclaimer This presentation contains what are considered “forward-looking statements,” as defined in Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act, as amended. Some of these forward-looking statements are identified with words such as “believe,” “may,” “
Slide 3: Strong performance in 1Q21 accelerates new growth cycle
HIGHLIGHTS Strong performance in 1Q21 accelerates new growth cycle Pulp: 2.7 million tons (vs. 2.8 million tons 1Q20) Sales Paper1: 264 thousand tons (vs. 239 thousand tons 1Q20) Volume Pulp Inventory: stable vs. 4Q20 Project Announcement Adjusted EBITDA: R$4.9 billion (vs. R$3.0 billion 1Q20) Opera
Slide 4: Sales performance reaches pre-pandemic level and EBITDA per ton all-time high
PAPER AND PACKAGING BUSINESS Sales performance reaches pre-pandemic level and EBITDA per ton all-time high Paper Sales (´000 ton) Local Export 700 1,080 600 950 500 750 400 324 370 254 239 264 550 93 300 77 84 88 350 710 200 100 178 155 231 176 150 0 -50 1Q19 1Q20 4Q20 1Q21 LTM 1Q21 Net Average Pric
Slide 5: Price recovery and low inventories indicate supportive market fundamentals
PULP BUSINESS Price recovery and low inventories indicate supportive market fundamentals Sales Volume (´000 ton) 7000 11000 10,620 6000 10000 9000 5000 8000 2,856 2,663 2,653 4000 7000 3000 6000 5000 2000 4000 1000 3000 2000 0 1000 1Q20 1Q20 4Q20 4Q20 1Q211Q21 LTM 1Q21 UDM 1T21 Net Average Price – E
Slide 6: Project Announcement
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Slide 7: Board of Directors approval subject to certain requirements
CERRADO PROJECT Board of Directors approval subject to certain requirements ⚫ Greenlight for significant capex disbursement in 2021: net debt/EBITDA at ~3.0x ⚫ Any time during investment cycle: net debt/EBITDA up to 3.5x 7
Slide 8: Moving ahead with our long-term strategy
CERRADO PROJECT Moving ahead with our long-term strategy ⚫ Improve competitiveness with the lowest cash production cost ⚫ Attractive returns even in more adverse scenarios ⚫ Economies of scale ⚫ Increase leadership position in the pulp market Maintain relevance in Pulp, ⚫ Long-term demand for market
Slide 9: R$ 14.7 billion
CERRADO PROJECT Highlights Structural average radius: 60 km Around 85% of wood requirement already Mato Grosso do Sul state under contract Sao Paulo M tons/year state Ribas do Efficient Rio Pardo municipality Santos Port logistics High Eco-efficiency The lowest cash production cost of Capex1 our ass
Slide 10: Attractive returns, even in challenging commodity price and exchange rate scenarios
CERRADO PROJECT Attractive returns, even in challenging commodity price and exchange rate scenarios IRR in real terms in BRL (% p.a.) Net Pulp Price (US$/ton) 450 500 550 600 650 700 750 4.00 FX 4.50 (US$/R$) 5.00 5.50 IRR > WACC 6.00 10
Slide 11: No major debt maturities in the coming years and no need to raise new debt
CERRADO PROJECT No major debt maturities in the coming years and no need to raise new debt Inside the fence capex timeline1 Debt Amortization and Expansion Capex Schedule (US$ billion) Local 8.7 5.0 31% MTM currency 4.5 0.4 Foreign Hedge2 69% currency Debt 4.0 Average Term Expansion Capex (FX @ 5.25
Slide 12: Capex Guidance 2021 Update
CAPEX GUIDANCE 2021 Update Capex (R$ billion) 1Q21 2021e 2021e (previous) (current) Sustaining 1.0 4.0 4.0 Modernization and Expansion 0.0 0.2 0.2 Port Terminals 0.1 0.2 0.2 Forest and Land 0.2 0.4 0.7 Others 0.0 0.1 0.1 CERRADO PROJECT 0.0 - 1.0 TOTAL 1.3 4.9 + R$ 1.3 Bn 6.2 12
Slide 13: Takeaways
CERRADO PROJECT Takeaways Suzano will become even Dedicated team with Funding for the project more competitive and proven experience in mostly based on cash relevant on the pulp successful pulp projects generation market to serve robust management demand growth Significant contribution to Financial
Slide 14: Investor Relations
Investor Relations www.suzano.com.br/ir ir@suzano.com.br 14