apresentação do powerpoint€¦ · suzano’s pulp cash cost downward trend continuous...
TRANSCRIPT
PresentationMay 2017
Why to invest in SUZANO ?
Strategy to Maximize the Return on Invested Capital
Competitive Advantages and Leading Position in the Industry
Strong Operating Cash Flow
Maximizing returns for shareholders
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 21% by 2022
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
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
Reshaping ofthe Industry
Structural Competitiveness
Adjacent Businesses
is our foundation
Strategy
Transformation
Why to invest in SUZANO ?
Strategy to Maximize the Return on Invested Capital
Competitive Advantages and Leading Position in the Industry
Strong Operating Cash Flow
Wood Competitiveness
Suzano Brazil Chile /
Uruguay
East
Europe
Canada Indonesia Finaland Sweden Bel /
France
Other
Asia
USA Iberia Japan China
BHKP Wood Cost by region(US$/tonne)
FX of R$3.12 US$
Source: Hawkins Wright (Mar/17)))
Suzano’s forest competitiveness with adequate yield allows lower wood cost
Suzano’s Pulp Cash CostDownward trend continuous
Consolidated Pulp Cash Cost Ex-Maintenance (R$/ton)
642
623
475
2015 1Q172016 LTM¹ 1Q17 2018¹ 2021 – 2022¹
585
570
Target Cash Cost
605
Wood cost reduction
Optimization of wood supply
Average distance reduction
Industrial cost reduction
Debottlenecking of Imperatriz
Crystallizer in Mucuri
¹LTM: Last Twelve Month ending in 03/31/2017
² Nominal value in 2016+R$ 500 million in EBITDA
Paper business to benefit from the
Brazilian Economy recovery
Brazilian Paper Demand
Printing & Writing Paperboard
2,048 2,035
327 327
2,375 2,362
2016 LTM¹ 1Q17
1,543 1,535
292 291
1,835 1,826
2016 LTM¹ 1Q17
(Thousand tons)
Paper market is less volatile
Resilient cash flow
Brazilian paper market is consolidated
Leadership position in the Brazilian
market with significant market share
Domestic Sales
Imports
¹LTM: Last Twelve Month ending in 03/31/2017
Source: Forestry Industry Association (IBA)
Suzano’s Paper CompetitivenessSuzano is an integrated paper producer, which leads to a higher
contribution margin per ton
2,418
2,614
2,792
3,140 3,178
Dec/13 Dec/14 Dec/15 Dec/16 Mar/17
Price adjustment above inflation
Strong distribution channel in Brazil
Suzano’s Go-To-Market Project in
Brazil improves paper profitabilityInflation: +26.4%
+ 31.4%
Suzano’s Domestic Paper Prices (R$/ton)
Domestic Sales68%
Integrated production and
control of more than 90% of cash cost
Operational
Production close to the North and
Northeast markets in Brazil
Logistic
Fastest growing
segment in Brazil,
5% p.a. in 2015
(RISI)
Market
Potential
Structural solution for monetization of ICMS credits
Tax Strategy
Production capacity: 120k tonnes
Start up: 3Q17 in Mucuri and 4Q17 in Imperatriz
Production of jumbo rolls and final products
Modern and integrated mills in Imperatriz (MA) and Mucuri (BA)
Final
product
Pulp
¹ Current market price and Suzano's cost expectations.
Tissue Equipment – Imperatriz Unit
There is more to come: TissueCompetitiveness on production and logistics adds value to pulp
Cash Flow (R$/ton¹)
Why to invest in SUZANO ?
Strategy to Maximize the Return on Invested Capital
Competitive Advantages and Leading Position in the Industry
Strong Operating Cash Flow
1.1 1.4
3.52.8 2.5
2013 2014 2015 2016 LTM
¹ Operating Cash Flow = Adjusted EBITDA – Sustaining Capex | LTM: Last Twelve Month ending in 03/31/2017
Adjusted EBITDA (R$ billion)
1.8
2.4
4.64.0
3.4
2013 2014 2015 2016 LTM
696784 675745
Avg R$/US$ 3.493.33 3.302,16
Avg Europe FOEX
517641 521609 Avg China FOEX
793
3.91
677
ROIC (%)
5.2%6.4%
15.1%
11.8%10.6%
2013 2014 2015 2016 LTM
ROIC is the indicator used to managed
SuzanoOperating Cash Flow¹ (R$ million)
12
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