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4 Q 1 6 R E S U LT S
The statements in this presentation constitute projections or forward-
looking statements. Such statements are subject to known and
unknown risks and uncertainties that could cause the expectations
expressed not to materialize or the current results to differ materially
from the expected results. These risks include changes in future
demand for the Company’s products, changes in factors that affect
domestic and international product prices, changes in cost structures,
changes in the seasonality of markets, pricing actions by competitors,
foreign currency fluctuations and changes in the political and
economic environments in Brazil, in emerging markets or
internationally.
Disclaimer
1.11.5
3.5
2.7
2013 2014 2015 2016
Improvements in operating
performance guarantee robust
operating cash flow
Adjusted
EBITDA 1.78 2.45 4.59 3.91
0.67 1.00 1.11 1.16Sustaining
Capex
Operating Cash Flow¹(R$ billion)
¹ Operating Cash Flow = Adjusted EBITDA – Sustaining Capex
843 809 935
3,373 3,473
4Q15 3Q16 4Q16 2015 2016
Pulp Production (‘000 tons)
740 756957
3,2913,530
4Q15 3Q16 4Q16 2015 2016
Pulp Sales (‘000 tons)
Pulp
Record high production and sales
volume in 2016
Launch of Eucafluff® exportsDebottlenecking of Imperatriz
Unit partially completed, to be
concluded in 2017
Production increase in all facilitiesIncrease of export volume in all
regions
Target Pulp Cash
Cost for 2018 reached in 4Q16
Normalized wood supply at
Mucuri mill
642
623
475
2015 4Q16 2016 2017 2018¹ 2021 – 2022¹
570 570
Consolidated Pulp Cash Cost (R$/ton)
¹Nominal value in 2016
Industrial retrofits allowed
record high production volume
and cost reduction
Target Cash CostEstimated
5.2%
15.7%
11.0%
2014 2015 2016
1,027
350 440
833
506
4T15 3T16 4T16 2015 2016
1,328
678
1,109
778
4Q15 4Q16 2015 2016
Pulp Adjusted EBITDA (R$/ton)
Pulp Operating Cash Flow¹ (R$/ton) Pulp ROIC (%)
5.2%
15.7%
10.5%
2014 2015 2016
1,027
440
834
506
4Q15 4Q16 2015 2016
External factors
impact pulp
profitability
784655 696802
Average R$/US$ 3.333.29 3.493.84
Average Europe FOEX
641506 517623 Average China FOEX
¹ Operating Cash Flow = Adjusted EBITDA – Sustaining Capex
7
273 292 295
1,164 1,182
4Q15 3Q16 4Q16 2015 2016
Paper Production¹ (‘000 tons) Paper Sales¹ (‘000 tons)
Paper
Improvements in tight market
¹Data excludes Embu Unit results
Positive results with the go-to-market
program “Suzano Mais”
Sales volume increase in Brazil,
even with a declining market
215 228 226
786 834 100 81 91
399 360
315 309 317
1,185 1,194
4Q15 3Q16 4Q16 2015 2016
Brazil Exports
8
743 796 768
970
4Q15 4Q16 2015 2016
Paper Adjusted EBITDA (R$/ton)
Paper Operating Cash Flow (R$/ton) Paper ROIC (%)
9.3%
11.8%
15.6%
2014 2015 2016
592 613 604
803
4Q15 4Q16 2015 2016
Relevant
developments in
cash generation and profitability
¹ Operating Cash Flow = Adjusted EBITDA – Sustaining Capex
9
348
771
581
2014 2015 2016
Operating Cash Flow¹ (R$/ton)
SG&A (RS/ton) COGS (R$/ton)
166 191
177
2014 2015 2016
7,265
10,224 9,882
2014 2015 2016
Revenue (R$ million)
1,2831,368 1,391
2014 2015 2016
Continuous focus on cost and
expense discipline
+6.6%
Inflation: +17.6%
+8.4%
Inflation: +17.6%
¹ Operating Cash Flow = Adjusted EBITDA – Sustaining Capex
10
Capital discipline
and flexibility in investments
2016 2017e
Sustaining
Structural Competitiveness
e Adjacent Businesses0.69
1.16
2.64
0.72
1.11
1.83
CAPEX (R$ billion)
Subtotal 1.85 1.83
Acquisition of
Land and Forests0.79 -
Total
Major Projects in 2017:
Debottlenecking of Imperatriz (to be completed)
Tissue production
Lignin production
11
Financial strength seeks Investment
Grade
5.6x
3.2x3.6x
4.1x
2.7x 2.6x
Dec/14 Dec/15 Dec/16
Debt / Adjusted EBITDA (x)
Gross Debt (R$) Net Debt (R$)Dividends based on operating cash
flow
Liability management actions for cost
reduction and/or lengthening of the
average term
Appropriate level of leverage
Financial Discipline:
Capital Discipline:
12
Significant results
in 2016...
Cash Cost: lower wood cost and benefits from industrial retrofitting
Capex discipline: investments lower than initial budget
Eucafluff®: production and export volume increase
Paper: profitability increase and significant progress with the go-to-market project
“Suzano Mais”
Pulp: record high production and sales
Strong operating cash flow and results
Acquisition of forest assets guarantees capacity expansion and cost reduction
in Imperatriz Unit
Financial Discipline: cost of the debt reduction and lengthening the term.
Pioneer in issuing GREEN BONDS in Brazil and the international market (USD)
Cost and expenses discipline: variation below inflation
...and there is more to come in 2017
Continuous focus on cost and expense reduction
Startup of Tissue and Lignin production
Forest: average distance reduction and yield increase
Balance sheet strengthening to pursue
Higher Eucafluff® volumes
Conclusion of Imperatriz Unit debottlenecking
New
digital platforms
www.suzano.com.br/[email protected]
Check out the new Investor
Relations website and the new
app "RI Suzano"