Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q4 2020 Earnings Presentation
28 slides from Suzano's earnings presentation, Feb 10, 2021
Slide 1: Pulp net price in the quarter
In the quarter, pulp was sold by Suzano at the average net price of US$456/ton, stable in relation to 3Q20 and down US$13/ton (-3%) from 4Q19, reflecting the drop in global pulp prices. Average net pulp price in the export market in 4Q20 was US$459/ton (compared to US$458/ton in 3Q20 and US$471/ton
Slide 2: Average net price in BRL and pulp net revenue
Average net price in BRL was R$2,459/ton in 4Q20, up 1% and 27% when compared to 3Q20 and 4Q19, respectively, due to the depreciation of the Brazilian real against the U.S. dollar in the period and the price variations in the export market since the end of 2019. Net revenue from pulp was 16% higher
Slide 3: Pulp cash cost
PULP CASH COST Cash cost excluding downtime in 4Q20 stood at R$622/t, decreasing R$9/ton from 4Q19 (-1%), due to: i) the lower wood cost on account of lower harvest costs, thanks to better operating performance, higher operating productivity and lower cost of diesel. Moreover, there was a decline in
Slide 4: Consolidated pulp cash cost and ex-maintenance downtime
‘Consolidated Pulp Cash Cost ex-maintenance Pulp Cash Cost (RSiton) downtime (R$iton) reese i = 4a13 4020 20192020 4a1s 30204020» 20192020 Cash cost ex-downtimes lDowntimes effect
Slide 5: Cash cost excluding downtime vs 3Q20
¹Excludes the impact of maintenance and administrative downtimes. Cash cost excluding downtime in 4Q20 was 4% higher than in 3Q20, due to: i) greater spending on energy due to increased consumption and higher prices, especially of natural gas; ii) higher fixed costs due to the increase in maintenanc
Slide 6: Cash cost excluding downtime 2020 vs 2019
¹Excludes the impact of maintenance and administrative downtimes. Cash cost excluding downtime in 2020 decreased 9% from 2019, due to lower wood and input costs (which were offset by the 31% increase in average USD vs. BRL) as well as fixed costs.
Slide 7: Consolidated pulp cash cost ex-maintenance drivers
(2) AWood Consolidated Pulp Cash Cost ex-maintenance (RS/ton)' en © o Alnput Fixed Cost. © -AEnergy Energy mWood minput mFixed Cost = FX a Fx
Slide 8: Pulp segment EBITDA
Pulp segment 4Q20 4Q19 ΔY-o-Y 3Q20 ΔQ-o-Q 2020 2019 ΔY-o-Y Sales volume (k ton) 2,663 2,757 -3 % 2,527 5 % 10,785 8,873 22 % ¹Based on cash cost excluding downtimes. Excludes energy sales. PULP SEGMENT EBITDA Adjusted EBITDA (R$ million) 3,530 2,041 73 % 3,384 4 % 13,485 9,259 46 % Pulp adjusted¹ EB
Slide 9: Adjusted EBITDA and margin of pulp
Adjusted EBITDA’ (RS million) and Adjusted EBITDA Margin (6) of Pulp Adjusted EBITDA Margin eee Adjusted EBITDA Margin ex-Klabin
Slide 10: Operating cash flow from the pulp segment
Maintenance Capex 2 (894 ) (842 ) 6 % (854 ) 5 % (3,124 ) (3,343 ) -7 % ¹ Excludes non-recurring items and PPA effects. OPERATING CASH FLOW FROM THE PULP SEGMENT Segmento de Celulose (R$ milhões) 4Q20 4Q19 ΔY-o-Y 3Q20 ΔQ-o-Q 2020 2019 ΔY-o-Y Adjusted EBITDA 1 3,530 2,041 73 % 3,384 4 % 13,485 9,259
Slide 11: Pulp operating cash generation per ton
¹ Excludes sales volume related to the agreement with Klabin. Operating cash generation per ton in the pulp segment increased 127% from 4Q19, reflecting the increase in Adjusted EBITDA per ton. Compared to 3Q20, the 1% reduction was due to the increase in sustaining capex per ton and the decrease in
Slide 12: Paper sales volume
Paper Sales Volume ('000 ton) * 3020 4a20 2019 Brazilian Market Foreign Market 902 2020
Slide 13: Paper average net price and revenue
¹Includes the Consumer Goods unit. The average net price was R$4,136/ton in 4Q20, showing an increase of R$292/ton (+8%) compared to 4Q19, due to price gains in the domestic market (+4%), and in exchange rate effect on export prices. In comparison to 3Q20, the increase of R$55/ton (+1%) was due to t
Slide 14: Paper segment EBITDA
Adjusted EBITDA (R$ million)¹ 435 424 3 % 394 10 % 1,465 1,465 0 % Paper adjusted¹ EBITDA (R$/ton) 1,227 1,150 7 % 1,236 -1 % 1,244 1,166 7 % PAPER SEGMENT EBITDA Paper segment 4Q20 4Q19 ΔY-o-Y 3Q20 ΔQ-o-Q 2020 2019 ΔY-o-Y Sales volume (k ton) -4 % 11 % 1,177 1,256 -6 % ¹ Excludes non-recurring item
Slide 15: Adjusted EBITDA and margin of paper
Adjusted EBITDA (RS million) and Adjusted EBITDA Margin (°%) of Paper 30% 30% 30% | 29% 30% 4019 3020 4020 2019 2020
Slide 16: Operating cash flow from the paper segment
Maintenance Capex 2 (90 ) (83 ) 9 % (70 ) 29 % (282 ) (318 ) -11 % OPERATING CASH FLOW FROM THE PAPER SEGMENT Operating cash flow - Paper (R$ million) 4Q20 4Q19 ΔY-o-Y 3Q20 ΔQ-o-Q 2020 2019 ΔY-o-Y Adjusted EBITDA 1 3 % 10 % 1,465 1,465 0 % Operating Cash Flow 1 % 6 % 1,183 1,147 3 % ¹ Excluding non-
Slide 17: Economic and financial performance: net revenue
Operating cash generation per ton of paper in 4Q20 was R$974/t, up 5% from the previous year, due to the increase in adjusted EBITDA per ton. Compared to 3Q20, operating cash generation per ton decreased 4% mainly due to the increase in sustaining capex, which in turn was due to the higher concentra
Slide 18: Net revenue notes
¹ Excludes service revenue from Portocel.
Slide 19: Net income and debt
Short Term 541 3,563 -85 % 1,651 -67 % Foreign Currency 58,160 45,500 28 % 62,131 -6 % Long Term 56,657 42,835 32 % 59,458 -5 % (-) Cash 9,232 9,579 -4 % 9,758 -5 % Net debt/Adjusted EBITDA 1 (x) - R$ 4.3 x 5.0 x -0.7 x 5.1 x -0.8 x * Debt in BRL translated into USD at the closing exchange rate of t
Slide 20: Average cost and term of debt
*Corresponding mainly to transaction costs (issue, funding etc.) and impacts from surplus value resulting from the operation with Fibria. On December 31, 2020, the average cost of debt in U.S. dollar was 4.5% p.a. (considering debt in BRL adjusted by the market swap curve) as against 4.5% p.a. on Se
Slide 21: Cash and credit facilities
¹ Considers the portion of debt with currency swaps. The original debt was 80% denominated in USD and 20% in BRL. Cash and cash equivalents on December 31, 2020 were R$9,232 million, 70% of which were invested in foreign currency in fixed-income and short-term investments, and the portion in local c
Slide 22: Net debt and leverage
On December 31, 2020, net debt stood at R$63.7 billion (US$12.3 billion), compared to R$68.7 billion (US$12.2 billion) on September 30, 2020. The biggest impact on net debt in local currency came from the exchange variation during the period. The ratio of net debt to Adjusted EBITDA in BRL stood at
Slide 23: Gross debt breakdown and capital expenditure
Non-Trade Finance² 60 % 55 % 17 % 27 % 55 % 97 % 69 % The breakdown of gross debt between trade and non-trade finance on December 31, 2020 is shown below: 2021 2022 2023 2024 2025 2026 onwards Total Trade Finance¹ 40 % 45 % 83 % 73 % 45 % 3 % 31 % ¹ ACC, ACE, NCE, PPE ² Bonds, BNDES, CRA, Debentures
Slide 24: Operating cash flow per ton
Operating Cash Flow per ton (RS/ton) or I aie: pany aaiae
Slide 25: Does not include tax synergies. Supply Chain includes
1 Does not include tax synergies. Supply Chain includes logistical / commercial synergies.
Slide 26: Stock Performance
‘Stock Performance ae suze 48% 10 suzus 14% 18 nou 1% 10 Toovespa es 6 0 Deot® Jan20 Feb20 Mar20 Apr20 May-20 Jun-20 20 Aug-20 Sep20 Oct20 Nov20 Deo20
Slide 27: Share capital and market capitalization
Source: Bloomberg. On December 31, 2020, the Company's share capital was represented by 1,361,263,584 common shares, of which 12,042,004 were held in Treasury. Suzano’s market capitalization stood at R$79.0 billion on December 31, 2020. In 4Q20, free float corresponded to 53% of the total capital.
Slide 28: Free float and ownership structure
Free Float on 12/31/2020 ‘Ownership structure on 12/31/2010 (63+ NYSE) ter Shares un Iv Tess s Loca rr easy = o Inston Corcing = shares