Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Suzano Papel e Celulose — Debt Investor Presentation (2017)
22 slides from Suzano's debt investor presentation, 2017
Slide 1: Fixed Income Presentation 2Q17
Fixed Income Presentation 2Q17 1
Slide 2: Agenda
Agenda 1. Company Overview 2. Investment Highlights 3. Operating and Financial Highlights 2
Slide 3: Company Overview
Section 1 Company Overview 3
Slide 4: Company Overview
Company Overview Company Overview Competitive Advantages Suzano Papel e Celulose is a forestry based publicly held Forestry Pulp Paper company, controlled by Suzano Holding. Shorter Eucalyptus Low production Regional leader With over 90 years of operations, the Company produces cycle: 7 ye
Slide 5: Commitment to cultivate the highest governance standards
Materialization of the commitment to cultivate the highest governance standards • Equal political and economic rights: 1 share 1 vote and 100% tag along • Non-premium migration reinforces the commitment of controlling shareholders to the capital market and other stakeholders • Creates conditions to
Slide 6: Strategy to maximize the return on invested capital
Strategy to maximize the return on invested capital • Transformational changes in • Anticipated return improvement the industry should lead to as result of cost reduction • Investments in adjacent higher returns initiatives coupled with businesses such as FuturaGene disciplined investments to (biote
Slide 7: Investment Highlights
Section 2 Investment Highlights 7
Slide 8: Investment Highlights
Investment Highlights • Conservative Capital Structure and Strong Cash Generation • Cost Efficient Operations and Disciplined Investments to Improve Cash Generation • Robust Asset Base with Unmatched Long Term Competitive Advantages • Best-Practices Governance • Leading Position in the Industry 8
Slide 9: Conservative Capital Structure and Strong Cash Generation
Conservative Capital Structure and Strong Cash Generation Net Debt and Leverage (R$ and US$ billion) 5,2x 30,0 4,2x 5 2,7x 2,3x 2,4x 2,6x 2,7x Continuous 2,1x leverage 20,0 reduction allows 0 Suzano to be 10,0 3,9 3,9 3,2 3,2 3,2 3,1 3,2 3,0 prepared for the future 0,0 -5 2013 2014 2015 Mar-16 Jun-1
Slide 10: Long Term Commitment to Operational Improvements
Long Term Commitment to Operational Improvements Cost Saving Initiatives Higher production and sales volume COGS (R$/ton) ∆: +5.5% Higher production and sales volume increased the 1.283 1.368 1.391 1.354 dilution of fixed costs Increasing utilization of own forest portfolio 2014 2015 2016 LTM 2Q17 D
Slide 11: Robust Asset Base with Unmatched Long Term Competitive Advantages
Robust Asset Base with Unmatched Long Term Competitive Advantages Suzano’s forestry competitiveness allows its operation in different regions with adequate yields Forest Areas Production Plants Itaqui 1 States of Maranhão, Pará, Tocantins and Piauí 4 Imperatriz (State of Maranhão) Total Area1: 726k
Slide 12: Solid Leading Position in the Industry
Solid Leading Position in the Industry Suzano has a leading position in all segments in which it operates Suzano’s Positioning in the Industry Pulp Production Capacity – Top 20 (1) With an installed capacity of 4.8 MM tons per (million ton) year(1), and sales volume of 4.7 MM tons of pulp & 5,3 Braz
Slide 13: Operating and Financial Highlights
Section 3 Operating and Financial Highlights 13
Slide 14: Operating Results
Operating Results Pulp Business: Presence in the main international markets and strategic relationships with clients Paper Business: Operational excellence in paper: product portfolio and revenue management, optimization of assets, and strengthening of distribution channels Pulp Business Paper Busin
Slide 15: Financial Results
Financial Results Suzano has posted strong operational cash generation Net Revenue Adjusted EBITDA (R$ million) 7.00 0 1.016 10.224 9.882 827 780 9.454 1.000 588 6.00 0 7.264 3.621 3.324 4.595 3.572 3.673 5.00 0 3.906 50 0 3.413 4.0 00 2.452 0 3.00 0 6.603 6.558 5.882 3.851 2.00 0 -5 00 1.000 2014 2
Slide 16: Financial Results by Business
Financial Results by Business Revenue diversification translated into lower volatility of results Pulp Business Adjusted EBITDA (R$/ton) Operational Cash Flow (R$/ton) 1.109 833 778 770 506 536 2015 2016 LTM 2Q17 2015 2016 LTM 2Q17 Paper Business Adjusted EBITDA (R$/ton) Operational Cash Flow (R$/to
Slide 17: Suzano's Debt Profile
Suzano’s Debt Profile Solid Debt Position and Focus on Deleverage Debt Breakdown Debt Maturity Profile (% of Gross Debt) (By currency in R$ billion)1 30% By Type Secured vs. Unsecured 70% Import Financing USD BRL BNDES 7% 7% Other 3.630 Certificates of 15% Secured; 16% 2.801 2.753 2.806 Agribusiness
Slide 18: Ratings Overview
Ratings Overview Klabin Arauco CMPC Fibria Suzano Standard & Poors BB+ BBB- BBB- BBB- BB+ (Positive) Fitch Ratings BB+ BBB BBB+ BBB- BB+ (Positive) 4,9x 3,6x 3,4x 3,9x Net Debt / 2,7x Adjusted EBITDA LTM Klabin¹ Arauco² CMPC² Fibria¹ Suzano¹ Suzano´s Ratings Evolution 2010 2012 2015 2017 BBB/BBB BB+
Slide 19: CAPEX
CAPEX R$ billion 6M17 2017¹ Sustain 0.5 1.1 Structural Competitiveness 0.2 0.7 and Adjacent Business Subtotal 0.8 1.8 Note: ¹ Estimated CAPEX 1919
Slide 20: ROIC
ROIC It is the most appropriate metric to measure the industry returns, which is capital intensive 15,7% 14,7% 15,6% 13,0% 11,8% 11,9% 10,5% 10,7%11,3% 9,3% 6,4% 5,2% 2014 2015 2016 LTM 2Q17 Paper Pulp Total ROIC = (Adjusted EBITDA – Sustaining CAPEX – Tax cash account) /Capital Employed Note: * Las
Slide 21: Suzano's Bonds
Suzano’s Bonds 30-years Bond, coupon of 7% p.a. and yield of 7.375% p.a. Indebtedness 06/30/2017 • Extension of Suzano’s debt maturity profile Indebtedness Cash (R$ billion) 3.6 • More efficient and flexible cash management Gross Debt (R$ billion) 13.6 Net Debt (R$ billion) 10.0 Ratios • Alignment o
Slide 22: Investor Relations
Investor Relations www.suzano.com.br/ir ri@suzano.com.br 22
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