Suzano S.a. · BMFBOVESPA:SUZB3
Suzano — Q2 2019 Earnings Presentation
11 slides from Suzano's earnings presentation, Aug 9, 2019
Slide 1: Forward-looking statements disclaimer
This presentation contains certain statements that are considered “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements are identified with words such as “b
Slide 2: Highlights
3 CAPEX 2019: reduction from R$ 6.4 billion to R$ 5.9 billion Synergies: evolving according to 2019 target Financial leverage : 3.5x in R$ (3.6x in US$) Sales volume – pulp: Sales volume – paper : 2.2 million tons 281 thousand tons Adjusted EBITDA/ton - pulp: R$ 1,305 Adjusted EBITDA/ton – paper: R$
Slide 3: Paper: commercial allocation flexibility favored EBITDA expansion
Paper Production (´000 tons) Paper Sales (´000 tons) 4 Paper Commercial allocation flexibility favored EBITDA expansion LTM 2Q19 LTM 2Q19 Net Average Price (R$/ton) LTM 2Q19 Adjusted EBITDA from Paper (R$/ton) LTM 2Q19¹ Excluding the consumer goods unit. ¹ Impact of Long Term Incentives of Managemen
Slide 4: Pulp sales acceleration throughout the quarter
Pulp Production (´000 tons) FX Average R$3.86 R$3.61 R$3.77 R$3.92 5 Net Average Price2 – External Market (US$/ton) Adjusted EBITDA (R$/ton) and EBITDA margin¹ (%) Pulp Sales (´000 tons)² FX Average R$3.61 R$3.77 R$3.92 R$3.86 Pulp Sales acceleration throughout the quarter ¹ Excluding revenue from K
Slide 5: Pulp cash cost: temporary pressure due to slower production rate
Cash Cost of Pulp - 2Q19 vs. 1Q19 (ex-downtimes – R$/ton) 6 Cash Cost of Pulp - 2Q19 vs. 2Q18 (ex-downtimes – R$/ton) Pulp Temporary pressure over costs due to slower production rate 1 1 1Pro forma data for 2Q18, considering the sum of the results of the companies, or weighted, when applicable. ( 40
Slide 6: Net debt reduction and liability management increase financial strength
7 ¹ Total average cost in US$ considering the debt in BRL adjusted by the market swap curve. ² Closing rate (BRL/USD): Mar/19: R$ 3.90; Jun/19: R$3.83 Average Cost (in US$)¹: Net debt² (million) and Leverage (in times) Amortization Schedule (R$ million) Average Term: 4.8% p.a. 87 months in R$ in US$
Slide 7: Investments: greater financial austerity
8 Investments Greater financial austerity Sustaining Port Terminals Total Modernization and Expansion Forest and Land Capex (R$ bilhões) 2T19 0.9 0.1 1.4 - 0.4 2019e (atual) 3.8 0.4 5.9 0.4 1.3 2019e (anterior) 4.0 0.4 6.4 0.6 1.4 -R$0.5 billion
Slide 8: Long term NPV maximization
9 Long term NPV maximization 1 Production capacity depending on conditions of global pulp market, according to Material Fact released on 05/09/2019. Estimated Market Pulp Production in 20191 million tons ~9.0 2019 production guidance unchanged Preservation of more productive forest base Wood supply
Slide 9: Synergies capture: implementation according to plan
10 Synergies capture Implementation according to plan1 Processes and Systems Feb-Jun/2019 Jul-Dec/2019 Jan/2020 1. According to Material fact released in 03/26/2019, estimating synergies of R$800-900 million/year to be captured 40% by 12/31/2019, 90% by 12/31/2020 and 100% by 12/31/2021. Integrated
Slide 10: Investor Relations
Investor Relations www.suzano.com.br/ri ri@suzano.com.br
Slide 11: Suzano Investor Relations
SUZaNO Investor Relations www.suzano.com.br/ri ri@suzano.com.br °——_