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1
Inst i tut ional
Presentation3Q17
Disclaimer
The statements in this presentation constitute forward-looking statements. Such
statements are subject to known and unknown risks and uncertainties that could cause
the Company’s actual results to differ materially from those set forth in the forward-
looking statements. These risks include changes in customer demand for the Company’s
products, changes in raw material costs, seasonal fluctuations in customer orders, pricing
actions by competitors, significant changes in the applicable rates of exchange of the
Brazilian real against the US dollar, and general changes in the economic environment in
Brazil, emerging markets or internationally.
1. Overview
2. Industry
3. Competitiveness
4. Strategy
5. Operating and Financial Highlights
Agenda
3
1. Overview
4
Suzano
Data from 09/30/2017
¹ SUZB5: R$18.31 | 2 Excluding Fluff | 3 Last twelve months ended on 09/30/2017
With over 90 years of operations, the Company produces pulp, paper and tissue
Pulp
Market Pulp
Eucafluff
Market Cap¹ R$ 20.2 billion
Total Forest Base 1.2 million ha
Market Pulp Capacity² 3.6 million tonnes
Paper Capacity 1.3 million tonnes
Adjusted EBITDA³ R$ 4,091 million
Net Debt R$ 9,283 million
Net Debt/EBITDA 2.3x
68%32%
64%36%
Exports
Domestic
Pulp
Paper
Net
Revenues
R$ 9.9bn³
Consumer Goods
Tissue
Paper
Printing & Writing(Coated and Uncoated)
Paperboard
¹ Flexibility to produce either Fluff or Printing and Writing paper | ² Tissue start up: Imperatriz in 4Q17 | ³Lignin start up in 2018
Production CapacitySuzano is the second largest eucalyptus pulp producer and the fourth largest
market pulp producer in the world.
Suzano has also a leading position in the Paperboard and Printing & Writing
segments in Brazil.
Pulp Paper
IntegratedMarket
PulpFluff
Printing &
WritingPaperboard Tissue
Imperatriz
Mucuri
Limeira
Suzano
Rio Verde
-
200
300
460
-
1,650
1,540
350
70
-
-
-
-
100
-
-
250
390
360
50
-
-
-
200
-
60²
60
-
-
-
Unit Capacity
(‘000 ton)
Lignin
Adjacent
Business
-
-
20³
-
-
Total 960 3,610 100¹ 1,050¹ 200 120 20
Consumer
Goods
Robust Asset Base Competitiveness
Commercial Presence
Suzano’s forestry competitiveness allows its operation in different regions with adequate yields
Total Area1: 734k ha
Planted Area2: 256k ha
Average Structural Distance: 184 km
States of Maranhão, Pará, Tocantins and Piauí
Forest Assets
Port
Distribution Center
Commercial Office
Total Area1: 270k ha
Planted Area2: 190k ha
Average Structural Distance: 74 km
States of Bahia, Espírito Santo and Minas Gerais
Total Area1: 193k ha
Planted Area2: 132k ha
Average Structural Distance: 190 km
State of São Paulo
Forest Areas
¹ Consider own and leased area
² Consider own, leased and third-parties areas
15 states in Brazil:• 8 Regional Commercial Offices• 4 Regional Distribution Centers• 16 Local Distribution CentersPlus commercial offices in USA, China, UK, Switzerland and Argentina.
Cerflor
Imperatriz (State of Maranhão)
Mucuri (State of Bahia)
Rio Verde (State of São Paulo)
Suzano (State of São Paulo)
Limeira (State of São Paulo)
1
2
3
4
5
1,197 k ha
of total area
579 k ha
of planted area
Production Plants
1
2
3
54
Corporate GovernanceMembers of the Board are well-known in the Brazilian Corporate landscape and are
supported by the committees on the decision making
Board of Directors
Sustainability
and Strategy
Committee
Audit CommitteeManagement
Committee
Nine members,
five
independent
David Feffer President Dependent
Claudio Thomaz Lobo Sonder Vice President Dependent
Daniel Feffer Vice President Dependent
Jorge Feffer Board Member Dependent
Antonio de Souza Corrêa Meyer Board Member Independent
Marco Antonio Bologna Board Member Independent
Maria Priscilla Rodini Vanzetti Machado Board Member Independent
Nildemar Secches Board Member Independent
Rodrigo Kede de Freitas Lima Board Member Independent
Novo MercadoLiquidity gains contribute even more to position Suzano as protagonist in the reshaping of
the industry in the long term
Materialization of
the commitment to
cultivate the highest
governance
standards Note: Novo Mercado is the highest corporate governance
segment of the Brazilian Stock Exchange (B3).
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
Liquidity gains
contribute even more to
position Suzano as
protagonist in the
reshaping of the
industry in the long
term
Creates conditions to
continue improving and
innovating
Shareholder Structure and
Stock PerformanceBNDES
7%
Treasury
1%
Controlling
Shareholders
57%
Free Float
42%Daily Financial Volume
SUZB5 (R$ million)
Daily Trade Numbers
SUZB5
Source: Bloomberg
As of November, the Company's shares became part of the
Novo Mercado, the highest level of corporate governance
of Brazilian Stock Exchange (B3)
65% Foreign / 35% National
Other
28%
Mondrian
7%
Stock Performance- SUZB5
Base 100: (Sep/16 – Sep/17)
Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17
Ibovespa
+ 27%
IBrX-50
+27%
SUZB5
+75%
11,812 12,296 9,840
3Q16 2Q17 3Q17
52 59 62
3Q16 2Q17 3Q17
2. Industry
11
12
Pulp IndustryPulp Market is driven by paper consumption
Total Fiber
Consumption1
RecycledVirgin Fiber
Non-wood,
Mechanical Pulp
and Integrated
Pulp
Market Pulp
421
241181
119 62
Fiber Consumption(million tonnes)
Paper Consumption by Region(%)
North
America
19%
Europe
23%
Asia
45%
Latin
America
7%Other
6%
1 Excludes Dissolving Pulp and Fluff
Source: Poyry (2015), Hawkins Wright (Apr/2017) and internal analysis
Paper Demand
4
0
2
1
3
-3
-1
-2
20 40 60 80 100
Share on total fiber consumption in 2014 (%)
Newsprint
Uncoated
Mechanical
Coated
Mechanical
Uncoated
Woodfree
Coated
Woodfree
Tissue
Containerboard
Paperboard
Packaging
Other
Est
imate
d d
em
an
d g
row
th u
nti
l 2
03
0
(%p
.a.)
Average
growth of
1.0% p.a.
Estimated
paper demand:
490MM/ton in
2030
Demand for pulp driven by tissue and
paperboard consumption
Source: Poyry (2015)
3. Competitiveness
14
Cash Cost CIF / Europe(US$/tonne)
FX of R$3.12/US$
Source: Hawkins Wright (Aug/17)
Pulp CompetitivenessSeven year cycle of the eucalyptus forest in Brazil and higher productivity ensures
lower costs
Hardwood Softwood
0
800
400
East
Can
ada
East
Eu
rop
e
Oth
er W
orl
d
Co
asta
l BC
East
Eu
rop
e
Ch
ile
Swed
en
Jap
an
Fin
lan
d
Oth
er E
uro
pe
Jap
anUS
Int.
Wes
t C
anad
a
US
Can
ada
Bra
zil
Ind
on
esia
Swed
enFi
nla
nd
Oth
er A
sia
Iber
ia
Bel
/Fra
nce
Ch
ile/U
rugu
ay
Ch
ina
Pulp Competitiveness
Fiber volume(million tonnes)
Source: Hawkins Wright (Aug/17)
1 Bleached Eucalyptus Kraft Pulp | 2 Bleached Hardwood Kraft Pulp | 3 Bleached Softwood Kraft Pulp
The competitiveness of the eucalyptus fiber leads to the growth
compared to other fibers
1213
16 15 16 1617
19 2021 22 22 23 24
24
11 119 10
11 11 11 10 10 10 10 10 11 11 11
22 21 21 22 23 23 24 24 24 25 26 26 26 26 27
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e
BEKP¹ Other BHKP² BSKP³
CAGRBEKP: +6.5% p.a. | Other BHKP: -1.6% p.a.
CAGRBEKP: +2.6% p.a. | Other BHKP: +2.0% p.a.
Paper Competitiveness
Suzano is an integrated paper
producer, which leads to a higher
contribution margin per ton
Leadership
position in
Printing &
Writing Segment
in Brazil
Leadership
position in
Paperboard
Segment
Paper Margin
Inputs and
Variable Costs
Integrated Pulp
Margin
Pulp Cost
Paper Market is less volatile
Federal Taxes CompetitivenessSuzano's assets leads to a fiscal situation which allows low cash disbursement for income and social contribution taxes
Tax Benefits
75% of income tax reduction:
• Maranhão unit until 2024
• Bahia unit: Line 1 until 2024 | Line 2 until 2018
Tax Credits
Tax loss carry forward: R$2.4 billion
Total of federal tax credits to be used: R$212 million
Data accumulated up to 09/30/2017.
4. Strategy
19
Strategy to maximize the return on invested capital
Structural Competitiveness
Adjacent Business
Reshaping of the Industry
o Anticipated return
improvement as result of
cost reduction initiatives
coupled with disciplined
investments to achieve
optimal cost
o Investment in retrofitting
and debottlenecking should
reduce cash costs per ton by
19% by 2022
o Investments in adjacent
businesses such as
FuturaGene (biotech), Fluff,
Lignin and Tissue, leveraging
on Company’s current
capabilities, to improve
margins by offering high-
value added products
o Transformational changes in
the industry should lead to
higher returns
o Suzano uniquely positioned
to have an active role with
its vertically integrated
operation, stablished
commercial relationships
and consolidation capacity,
among other opportunities
ForestryAverage distance
reduction and
standardization
and insourcing
harvesting
Industry
Structural efficiency
through retrofitting
and
debottlenecking
Logistics
Integrated
logistics with
synergy gains
Structural Competitiveness
Structural Competitiveness
Maximize the
return on
assets and cash
generation
Commercial
Price discipline
and expansion of
client base
(Suzano Mais)
Debottlenecking and Average Forest Distance Reduction
Cash Cost (R$/ton)
Target
¹ LTM: Last Twelve Months ending on 09/30/2017 | ² 2016 nominal value
588570
475
LTM¹ 2018² 2021-2022²
o Integrated production
o Production of jumbo
rolls and final products
o First genetically
modified clone
approved by CTNBio
for commercial
purposes
o Potential to increase
productivity by nearly
20%
o Replacement of
petroleum-based
chemicals
Tissue
Adjacent
Businesses
Fluff FuturaGene
o First company in the
world to produce fluff
from hardwood
o Flexibility to produce
either fluff or printing
and writing paper
AdjacentBusiness
Lignin
Tissue
Modern and integrated mills in Imperatriz and Mucuri
Production capacity of 60k tonnes in each unit
Start up: Sep/17 in Mucuri and 4Q17 in Imperatriz
Production of jumbo rolls (2017) and final products (from 2018)
34.9 36.1 49.2
2015 2016e 2025e
Global Demand(million tonnes)
1.2 1.2
1.9
2015 2016e 2025e
Brazilian Demand(million tonnes)
Competitiveness on production and logistics adds value to pulp
Integrated production and
control of more than 90% of cash cost
Operational
Production close to the North and
Northeast markets in Brazil
Logistic
Fastest growing
segment in Brazil,
5% p.a. in 2015
(RISI)
Market
Potential
Structural solution for monetization of ICMS credits
Tax Strategy
AdjacentBusiness
Source: RISI
Demand(million tonnes)
5.8 6.0
6.9
2015 2016e 2020e
Diapers
38%Incontinence
Products
26%
Femine Hygiene
Products
24%
Other
12%
Products Breakdown (%)
Suzano is the first Company in the world to produce fluff from hardwood
AdjacentBusiness
Eucafluff
Source: RISI
o Up to 70% softwood substitution for feminine
hygiene products and up to 30% for diapers
o Rewet quality and reduction of energy costs
o Capacity: up to 100 k tonnes/year
Replacement of petroleum-based chemicals from
renewable source
Main applications:
• Cement Additives
• Phenolic Resins
• Rubber Components
Lignin
AdjacentBusiness
Capacity: 20k tonnes per year
Capex: R$100 million
Start Up: 2018
Mill: Limeira
Lignin Production Process
Fiber
Lignin
Wood Wood
ChipsBleaching
Pulp/
Paper
Digester
Evaporation
Recovery
BoilerLime Kiln
Lignin
Chemicals
Energy
Black Liquor
AdjacentBusiness
FuturaGeneFirst genetically modified clone approved by CTNBio for commercial
purposes
Less Land
Utilization
Lower Forest
Formation Cost
Biotechnology is on the right side
of Sustainability
• Less chemical expenditure
• Higher carbon sequestration
Reshaping of theIndustry
Transformation changes in the industry should lead to higher returns
Suzano is
strengthening its
balance sheet to be
an active player in
the reshaping of the
industry
Consolidation
Verticalization
Internationalization
5. Operational and Financial Highlights
28
Pulp Production (‘000 tonnes) Pulp Sales (‘000 tonnes)
Pulp Revenue Breakdown3Q17
Pulp Sales Volume per Segment3Q17
Pulp Segment
LTM: Last Twelve Months ending on 09/30/2017.
809 931 851
3,473 3,592
3Q16 2Q17 3Q17 2016 LTM
756 917 830
3,530 3,619
3Q16 2Q17 3Q17 2016 LTM
Other
2%
Printing & Writing
13%Packaging
7%
Specialty
15%
Tissue
63%
Brazil
10%
Asia
42%
Europe
32%
North America
16%
Central/South
America
1%
Cash Cost (R$/ton)
Pulp Segment
¹ 2016’ nominal value. | ²LTM: Last Twelve Months ending on 09/30/2017.
Pulp EBITDA (R$/ton) Operational Cash Flow (R$/ton)
642623
588570
475
2015 2016 LTM 3Q17 2018¹ 2021-2022¹
627
1,033 1,088
778873
3Q16 2Q17 3Q17 2016 LTM²
350
806 809
506638
3Q16 2Q17 3Q17 2016 LTM²
Cash Cost Target
Paper Sales (‘000 tonnes)
Paper Segment
Paper Production (‘000 tonnes)
LTM: Last Twelve Months ending on 09/30/2017.
Brazil
70%
North America
8%
Central/South
America
15%
Other
5%
292 283 301
1,182 1,154
3Q16 2Q17 3Q17 2016 LTM
228 180 208
831 795 81 92 102
362 368
310 272 310
1,193 1,163
3Q16 2Q17 3Q17 2016 LTM
Brazil Export
Paper Revenue Breakdown3Q17
32
Paper Segment
Paper EBITDA (R$/ton)
Operational Cash Flow (R$/ton)
LTM: Last Twelve Months ending on 09/30/2017.
949
709
915970
786
3Q16 2Q17 3Q17 2016 LTM
782
568
756803
625
3Q16 2Q17 3Q17 2016 LTM
Operating Cash Flow¹ (R$ million)
ROIC (%)
¹ Operating Cash Flow = Adjusted EBITDA – Sustaining Capex | LTM: Last Twelve Months
Adjusted EBITDA (R$ million)
Avg R$/US$
Avg Europe FOEX
Avg China FOEX
Consolidated Results
768
1,157 1,186
3,906 4,091
3Q16 2Q17 3Q17 2016 LTM
35.3%45.7% 45.7%
39.5% 41.4%
3.493.16 3.203.21
517655 590629
3.25
498
696873 748783671
507910 906
2,7483,053
3Q16 2Q17 3Q17 2016 LTM
13.1%11.3%
13.0%
LTM 3Q16 LTM 2Q17 LTM 3Q17
Net Debt (R$ and US$ billion) and Leverage (x)
Net Debt (R$) Net Debt (US$)
Net Debt/Adjusted EBITDA (R$) Net Debt/Adjusted EBITDA (US$)
DebtLeverage at an
adequate level
3.7x3.1x 2.9x
2.3x 2.3x 2.3x
2.4x 2.7x 2.9x 2.9x 2.7x2.3x
4.1x 3.9x3.3x 3.0x 2.7x
2.3x
2.1x 2.4x 2.6x 2.8x 2.7x2.3x
10.1 11.4 11.0
12.7 12.5 11.2
10.2 10.0 10.3 9.7 10.0 9.3
3.8 3.6 3.5 3.2 3.2 3.2 3.2 3.1 3.2 3.1 3.0 2.9
Dec/14 Mar/15 Jun/15 Sep/15 Dec/15 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 Sep/17
Debt ProfileCompetitive debt profile and
cost of debt
Amortization (R$ million)
Gross Debt: R$13.1 billion
Net Debt / Adjusted EBITDA: 2.3x
Average debt maturity of 80 months
Average Cost of Debt: 4.4% p.a. (in USD)(considering market swap curve)
Data from 09/30/2017.
Bond
41%
Certificates of
Agribusiness
Receivables
20%
BNDES
5% Import Financing
7%
Other
2%
Export
Financing
24%
Type Exposure
994 1,421 1,146 748 2,078 3,882
2,856
545 910 1,749149
189
3,850
316
1,966 2,0552,497
2,227
4,071
Caixa 4Q17 2018 2019 2020 2021 2022
em
diante
Foreign Currency Local Currency
Klabin Arauco Fibria CMPC Suzano
Standard & Poors BB+ BBB- BBB- BBB- BB+
Moody's - Baa3 Ba1 Baa3 Ba1
Fitch Ratings BB+ BBB BBB- BBB BB+
Net Debt /
Adjusted
EBITDA LTM
1 Last twelve months ending on 09/30/2017 in R$.
² Last twelve months ending on 09/30/2017 in US$.
³ Last twelve months ending on 06/30/2017 in US$.
BB+BB/ BB-
BB+/BB
BB+/BB+BBB-/BBB-BBB/BBB
BB+/BB+
BB /BB
2010 2012 2015 2017
Sovereign
S&P / Fitch
Suzano´s Ratings Evolution
Suzano is on track to achieve Investment Grade
Rating
4.4x3.3x 3.2x 3.1x
2.3x
Klabin¹ Arauco³ Fibria¹ CMPC² Suzano¹
1. Capex 2017/2018
Capital discipline
and capex
flexibility
Capex (R$ billion)
Major Projects in 2017:
Debottlenecking of Imperatriz
Tissue production
9M17 2017e
Sustain
Structural Competitiveness
e Adjacent Businesses0.5
0,.8
1.3
0.7
1.1
1.8Total
2018e
0.6
1.2
1.8
1. Perspectivas 2017
Suzano in a better shapeCost Discipline
38
Financial Discipline
Products Portfolio
Industrial Cost Reduction: Retrofitting and
Debottlenecking
Wood Cost Reduction: Optimization of
forest base and average distance reduction
Robust Balance Sheet
Competitive cost of debt
Healthy level of leverage
Tax Incentive
Portfolio of products allows less
volatility
High value added products
Suzano Mais
Capital Discipline
Capex Flexibility
Projects on time on budget