Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q4 2020 Earnings Presentation
14 slides from Suzano's earnings presentation, Feb 11, 2021
Slide 1: 4Q20 Earnings Conference Call
1 4Q20 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: 2020 presented Suzano's resilience, despite the adverse scenario: Highlights
2020 presented Suzano’s resilience, despite the adverse scenario HIGHLIGHTS Sales Volume Pulp: Paper 1 : Pulp Inventory : reduction of ~1 million tons Operating Performance Adjusted EBITDA: R$ 14.9 billion ( vs . R$ 10.7 billion ) Operating Cash Generation 2 : R$ 11.5 billion ( vs . R$ 7.1 billion )
Slide 4: ESG Sustainability Goals for 2030
4 ESG Sustainability Goals for 2030 Strategic Vision Sustainability Linked Bond issuance with lowest YTM ever Carbon : o TCFD Case Study o Advocacy o Climate Action 100+ adhesion Diversity & Inclusion o Goals attained: Women and LGBTI + Board of Directors o 70% independent members o 20% of women Env
Slide 5: Paper and Packaging Business
1,160 1,223 1,260 1,186 1,239 1,061 291 266 279 1,146 -150 50 250 450 650 850 1,050 1,250 4Q19 3Q20 4Q20 2019 2020 5 Paper Production ('000 tons) 231 193 231 764 689 111 98 93 401 366 341 290 324 1,165 -150 50 250 450 650 850 1,050 4Q19 3Q20 4Q20 2019 2020 Paper Sales ('000 tons) Net Average P rice
Slide 6: Pulp Business
2,042 3,384 3,530 38% 55% 54% -100% 400% 900% 1400% 1900% 2400% 2900% 3400% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 4Q19 3Q20 4Q20 6 Pulp Business Record sales in 2020 and inventories closed at the lowest level since January 2017 471 458 459 1,937 2,465 2,476 567 2,237 2,388 -
Slide 7: Pulp Business: Structural reduction in cash cost in 2020
Pulp Business Structural reduction in the cash cost in 2020 reflects the capturing of synergies, despite FX pressure 313 - 52 262 241 - 21 242 145 - 6 139 - 38 - 1 - 39 662 22 604 -200 0 200 400 600 800 1,000 Custo Caixa 2019 Madeira Insumos Custo Fixo Energia Efeito câmbio Custo Caixa 2020 - 9% Pul
Slide 8: Financial Management: Liability management and continuous leverage reduction
Financial Management Liability management and continuous leverage reduction demonstrate financial discipline 8 Stand - by facilities Cash on hand 6 Average Cost (in US$): Amortization Schedule (US$ billion) 4.5% p.y . 86 months Net Debt (billion) and Leverage (in times) Average Term : 1 CETIP calcul
Slide 9: Financial Management: Liability management and continuous leverage reduction
13.4 12.2 12.3 54.1 68.7 63.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Dez/19 Set/20 Dez/20 Coluna1 Dez/192 Set/202 Dez/204 9 Financial Management Liability management and continuous leverage reduction demonstrate financial discipline 6 1 Position of 12/31/2020 adjusted with Liability Manag
Slide 10: Financial Management: Deleveraging Plan beyond outlined
10 Financial Management Deleveraging Plan: beyond outlined Capex limited to sustaining and commitments already made Non - core assets sale of R$ 1.5 billion in 2019/2020 1 Non - core assets sale of R$ 1.0 billion in 5 years C oncluded and above planned Synergies capture: 90% in 2020 100% complete Mo
Slide 11: Financial Management: Hedging policy provides better protection
11 Financial Management Hedging policy provides better protection and cash conversion for 2021 Portfolio renewal - Cash Flow Hedge (ZCC) 736 840 617 568 401 50 4.27 4.27 4.75 5.21 5.37 5.09 4.76 4.75 5.54 6.15 6.11 6.06 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Notional (USD MM) Put ( average ) Call ( average )
Slide 12: Operational Synergies: Fibria merger delivered synergies faster and greater
2019a R$ 763 M 2020e 2021e R$ 1,000 – 1,000 M R$ 1,100 – 1,200 M R$ 1,317 M 2020a 2019a Operational Synergies Fibria merger has delivered synergies faster and greater than originally planned R$ 763 M Ebitda Non Ebitda ( Capex + Tax ) Cash Cost Others 57% 19% 24% 76% 1 Include implementation costs (R
Slide 13: Takeaways 2020
13 Takeaways 2020 COVID - 19 has strengthened Suzano's organizational culture drivers: Successful commercial strategy for the pulp, paper and packaging businesses Strong commitment to financial discipline Capturing of synergies from the merger with Fibria has exceeded expectations ESG: important to
Slide 14: Investor Relations
Investor Relations www.suzano.com.br/ir ir@suzano.com.br Q&A