2Q13 Earnings Presentation
DisclaimerThis release may contain forward-looking statements. These statements are subject to known and unknown risks and uncertainties that can lead such expectations to not materialize or to differ materially from expectations. These risks include: changes in future demand for the Company's products, changes in factors affecting domestic and international product prices, changes in the cost structure, changes in the seasonal patterns of markets, changes in prices charged by competitors, foreign exchange variations,
changes in the political or economic situation of Brazil, and changes in emerging and international markets.
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2Q13 HighlightsAdjusted EBITDA of R$ 408 million, increasing 37% from 2Q12. EBITDA margin of 30.6%, expanding 8.1 p.p. from 2Q12
Increase in pulp prices in USD (+4% vs. 2Q12 and +2% vs. 1Q13) Increase in paper prices (+7% vs. 2Q12 and +3% vs. 1Q13)
Reduction of 2% in cash cost from 2Q12, due to the lower consumption of raw material and reduction in fixed costs, both reflecting the higher productivity and a quarter not impacted by scheduled downtimes
Reduction of 6% in general and administrative (G&A) expenses in 6M13 compared to 6M12
Maranhão Project advancing on schedule and CAPEX as announced
Solid financial liquidity: cash of R$ 4.5 billion
Leverage ratio of 5.1x Net debt/Adjusted EBITDA, increasing 0.1x from March 2013, despite FX
variations and investment in the Maranhão project in the quarter
Start of the second phase of debt management aimed at reducing costs and increasing terms
Conclusion of the divestment of Suzano's interest in the Capim Branco Energia Consortium
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Operational ResultsProductivity gains lead to a 5% increase in produced volume on 6M13 vs. 6M12
Pulp and Paper Production
('000 ton)
Sales Volume
('000 ton)
+9.2%
+4.7%
-5.7%
-3.9%
+8.6%
764 768 833
333 324 322
431 444 511
1,528 1,601
644 646
884 955
+6.2%
801 710 755
353 269 318
448 441 437
1,525 1,465
629 587
896 878
2Q12 1Q13 2Q13 6M12 6M13
Pulp Paper
2Q12 1Q13 2Q13 6M12 6M13
Pulp Paper
Pulp Sales Volume
2Q13
Paper Sales Volume
2Q13
Europe 32%
25% Brazil
14%
South/ Central America
North
12%
South/
1% Central
Brazil 68%
1% Others
12% North
America
America
30%
Asia
America
5% Europe
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Economic and Financial PerformanceNet Revenues
(R$ million)
Pulp Cash Cost ex-maintenance Downtime
(R$/ton)
+0.8%
+6.2%
-2.3%
+3.4%
+13.6%
1,324 1,174 1,334
707 622 679
2,361 2,508
1,252 1,301
-6.1%
582 606 568 566 585
Average
617 552 655 1,109 1,207
2Q12 1Q13 2Q13 6M12 6M13
Domestic Market Exports
2Q12 1Q13 2Q13 6M12 6M13
R$/US$
1.96 2.00
2.07
1.86 2.03
Pulp Cash Cost ex-maintenance Downtime Evolution
(R$/ton)
G&A
(R$ million)
43
582 568 (31)
(24)
-6.1%
+3.5%
189
-6.1%
178
-R$ 13/ton
2Q12 Wood Raw Material Fixed Cost 2Q13
2Q12 1Q13 2Q13 6M12 6M13
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Economic and Financial PerformanceIncrease of 37% on Adjusted EBITDA vs. 2Q12 impacted by higher paper and pulp prices, and
operational costs and expenses reduction
Adjusted EBITDA and Adjusted EBITDA Margin
(R$/ton) (%)
Evolution of Adjusted EBITDA (R$ million)
27.9%
30.6%
29.3%
69 8
+36.9% +37.1%
+24.7%
735
298 11
298 327
408
536
2Q12 1Q13 2Q13 6M12 6M13
Net income (loss)
2Q12
1
Net
Revenue
COGS SG&A Others1
2Q13
(R$ million)
Note:
includes other recurring operational revenues/expenses, depreciation,
amortization and depletion
2Q12
EBITDA
Depr. Amort.
& Depletion
(34)
Financial
Result
(16)
Exchange
Variation
Taxes and SC
2Q13
Exchange variation of 10% in the period, with negative impact on financial results due to the mark-to-market of the debt denominated in foreign
currency (non cash impact).
(264)
217
(113)
(37)
(248)
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DebtConservative financial policy with long term debt profile
Net Debt (R$ million) and Net Debt/ Adjusted EBITDA (x)
5.0 x 5.0 x 5.1 x
4.5 x
4.7 x
6,794 7,483
5,386 6,003 6,381
2Q12¹ 3Q12 4Q12 1Q13 2Q13²
Nota: (1) Includes the Equity Offering funding (R$ 1.5 billion)
(2) Does not include resources from divestment of the interest held by Suzano in the Capim Branco Energia consortium and other non recurring items.
Cash position in June 2013: R$ 4.5 billion
Reduction of average cost of debt:
In Brazilian Reais: from 8.7% p.a. in March 2013 to 7.9% p.a. in June 2013
In U.S. Dollar: from 5.6% p.a. in March 2013 to 4.7% p.a. in June 2013
Increased term debt profile: from 4.5 years in March 2013 to 4.7 years in June 2013
Liquidity horizon above 60 months
Maranhão Project Financing: around R$ 900 million from BNDES to be disbursed
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Maranhão UnitInvestments in the Maranhão Unit according to estimated budget
April 2011 April 2012 November 2012
January 2013
July 2013
Investments in the
Maranhão Unit
(R$ million)
2009 2010 2011 2012 1Q13 2Q13 Total
193 162 841 2,123 621 406 4,346
Maranhão Project Status (on 07/31/2013)
Overall physical progress 90% Construction 95% Electro-mechanical assembly 69%
Comissioning 16%
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Investment on projects for productivity gainsInvestments of R$ 148 million on projects for productivity gains were announced for 2013
ConcludedCut Size production in Mucuri:
concluded in Aug 2013
Cut size production
Mucuri biomass boiler
Digester at Suzano plant
Mucuri boiler
OngoingWood chipper in Limeira:
start up scheduled for Feb 2014
Standardization and upgrade of harvesters fleet
Wood chipper in Limeira
Harvester
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Investor Relations10
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