Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q2 2020 Earnings Presentation
14 slides from Suzano's earnings presentation, Aug 14, 2020
Slide 1: 2Q20 Earnings Conference Call
1 2Q20 Earnings Conference Call
Slide 2: Disclaimer
2 This presentation contains what are considered “forward - looking statements,” as defined in Section 27 A of the 1933 Securities Act and Section 21 E of the 1934 Securities Exchange Act, as amended . Some of these forward - looking statements are identified with words such as “believe,” “may,” “co
Slide 3: Strong operational performance with further inventory reduction, net debt evolution and progress in ESG
Strong operational performance with further inventory reduction, net debt evolution and progress in ESG HIGHLIGHTS Sales Volume Inventory reduction - pulp: Pulp: Paper 1 : 2.8 million tons 202 thousand tons Operating Performance Adjusted EBITDA: R$4.2 billion Operating Cash Generation 2 : R$3.4 bill
Slide 4: Paper Business: Results driven by exports although affected by challenging scenario
169 155 110 683 112 84 91 388 281 239 202 1,070 0 100 200 300 400 500 600 2Q19 1Q20 2Q20 LTM 2Q20 3,855 3,825 3,998 3,796 3,000 3,200 3,400 3,600 3,800 4,000 4,200 4,400 3000 3200 3400 3600 3800 4000 4200 4400 2Q19 1Q20 2Q20 LTM 2Q20 4 Paper Production ('000 tons) Paper Sales ('000 tons) Net Average
Slide 5: Pulp Business: EBITDA growth on weaker BRL and robust sales
2,214 2,856 2,778 11,103 0 1,000 2,000 3,000 4,000 5,000 6,000 2Q19 1Q20 2Q20 LTM 2Q20 5 Pulp Business EBITDA growth on weaker BRL and robust sales BRL USD 1 Excluding Klabin sales revenue. Sales Volume ('000 tons) Net Average Price – Foreign Market (per ton) Pulp Production ('000 tons) 2,221 2,337
Slide 6: Pulp Business: Structural competitiveness strengthened by cost management, including synergies
275 259 234 238 132 138 - 44 - 36 596 - 15 4 6 8 599 -200 0 200 400 600 800 1,000 Pulp Business Structural competitiveness strenghtened by cost management, including synergies - 14% Wood D D D Pulp Cash Cost 2Q20 vs. 2Q19 (ex - downtimes - R$/ton) Pulp Cash Cost 2Q20 vs. 1Q20 (ex - downtimes - R$/to
Slide 7: Financial Management: Net debt in decline and strong liquidity
7 Financial Management Net debt in decline and strong liquidity 2.3 0.2 0.9 0.1 0.8 2.2 2.3 1.9 6.4 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Liquidity 2020 2021 2022 2023 2024 2025 2026 onward 93% of total debt Stand - by facility Cash on hand 6 Average Cost (in US$): Amortization Schedule (US$ billion) 4.5%
Slide 8: Financial Management: Net debt in decline and strong liquidity
8 Financial Management Net debt in decline and strong liquidity 2.3 0.2 0.9 0.1 0.8 2.2 2.3 1.9 2.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Liquidity 2020 2021 2022 2023 2024 2025 2026 onward 93% of total debt Stand - by facility Cash on hand 6 Average Cost (in US$): Amortization Schedule (US$ billion) 4.5%
Slide 9: Financial Results impacted by weaker BRL – positive over time
Effects related to cash flow hedge Financial Result Financial Results impacted by weaker BRL – positive over time Financial Result - 2Q20 (R$ billion) - 0.8 Interest over debt - 3.2 D FX on debt in US$ +0.2 D MtM of debt dollarization hedges - 0.8 D MtM of cash flow hedges Effects related to debt ma
Slide 10: Financial Management: Effectiveness of hedging policy and portfolio roll-over
10 Financial Management Effectiveness of hedging policy show non results and portfolio roll - over 1 Calculated based on portfolio positions and market curves on June 30, 2020 . | 2 FX sensitiveness on Ebitda considers ~R$ 0.5 billion/year for each R$0.10/USD change. Cash Impact (2H20 - 2021) 1 - R$
Slide 11: Capex: Capital expenditures in line with 2020 guidance
11 Capex Capital expenditures in line with 2020 guidance Maintenance Port Terminals Total Expansion and Modernization Acquisitions of Land and Forests Capex (R$ billion) 2H20e 2.0 0.0 2.3 0.1 0.2 2020e 3.5 0.1 4.2 0.2 0.4 1H20 1.5 0.1 1.9 0.1 0.2
Slide 12: ESG: Generating value and lowering risks
ESG Generating value and lowering risks 12 Social Governanc e Total members: 10 7 independent members*, 2 of them women * Novo Mercado/B3 rules: minimum of 20% Board of Directors (May/2020) Environment al Covid - 19 R$75 million invested in protecting people and society and in mitigating operational
Slide 13: ESG: Carbon sequestration is intrinsic to the business model
13 ESG Carbon sequestration is intrinsic to the business model o Mitigating climate risks by growing forests ; o Board of Directors monitoring through Sustainability Committee ; o Planting eucalyptus in pasture areas captures 282 tCOe/ha of carbon during the first seven - year cycle . Even more posi
Slide 14: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br Q&A