SUZANO S.A. This communication contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements are identified with words like "believe," "may," "could," "would," "might," "possible," "will," "should," "expect," "intend," "plan," "anticipate," "estimate", "potential", "outlook" or "continue," the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this communication include, without limitation, statements regarding the implementation of operating and financing strategies and initiatives, including with respect to the integration of Fibria's operations and expected potential synergies, plans with respect to capital expenditures, and factors or trends affecting financial condition, liquidity or results of operations. Such statements reflect the current views of management and are subject to a number of risks and uncertainties, including changes in prices and customer demand for our products, changes in raw material costs, pricing actions by competitors, changes in the rates of exchange of the Brazilian real against the US dollar, and general changes in the economic environment in Brazil, emerging markets or internationally. Such forward-looking statements are qualified by the inherent risks and uncertainties surrounding future expectations generally, and actual results could differ materially from those currently anticipated due to such risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur.
The statements information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation and should thus be considered in the context of the circumstances prevailing at the time. They are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors, and are subject to change without notice. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Suzano does not undertake any obligation to update any information, opinion or forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All information, opinions and forward-looking statements in this communication are qualified in their entirety by this cautionary statement.
Suzano | The future |
one year post-merger | of Suzano |
Suzano | The future |
one year post-merger | of Suzano |
Adjusted EBITDA | R$ |
(R$ Bn) | 10.7Bn |
Operating Cash | R$ |
Generation | 7.1Bn |
3.1
2.8
2.4 2.5
(R$ Bn)
1.8
2.2
1.5 1.5
1Q19 2Q19 3Q19 4Q19
1Q19 2Q19 3Q19 4Q19
Sales volume
Net average price
Adjusted EBITDA
(k ton)
328
31%
288
35%
69%
65%
(R$/ton)
1,180 | 1,165 |
341 | 3,773 |
32% | 34% |
32% | |
3,547 |
68% 68% 66%
3,070
(R$ millions)
1,285
922
Record
high
1,373
4Q18 | 3Q19 | 4Q19 | 2018 | 2019 | 2017 | 2018 | 2019 | ||
Local market | Foreign market | ||||||||
2017 2018 2019
Note: figures do not include Consumer Goods results
Net average price (US$/ton)
711 | 630 | Cash Cost Ex-downtimes1 |
R$/ton | ||
526 | 2019 average: | ||||||||||
471 | R$ 658/ton | ||||||||||
Sales volume (k ton) | Record | 740 | 720 | 697 | 649 | 649 | 697 | 654 | 631 | ||
high | |||||||||||
2,549 | 2,920 | ||||||||||
2,214 | |||||||||||
1,729 | |||||||||||
1Q19 | 2Q19 | 3Q19 | 4Q19 | 2015 | 2016 | 2017 | 2018 | 1Q19 | 2Q19 | 3Q19 | 4Q19 |
Destocking
~450kt ~650kt ~1,100kt
3Q | 4Q | 2H19 |
1 2015-2018 figures adjusted by inflation (IPCA)
2019
Covenants exclusion
Liquidity enhancement
Average term extension
Liquidity and Amortization schedule
US$ Billion | 6.6 | ||||
3.1 | |||||
Stand-by | |||||
0.7 | |||||
facilities | 2.4 | ||||
1.5 | 1.5 | 1.8 | |||
1.3 | |||||
Cash on | 2.4 | ||||
hand | 0.7 | ||||
Liquidity | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
onward
86%
Net debt | Leverage |
13.4 Bn (US$) | 4,9 x (Net debt/ EBITDA em US$) |
FX: R$4,0307/US$ (31/12/2019)
2019
Covenants exclusion
Liquidity enhancement
Average term extension
Liquidity and Amortization schedule (including Feb/2020 roll-over)
US$ Billion | 6.7 | |||
3.1 | ||||
Stand-by | ||||
0.7 | ||||
facilities | 2.3 | |||
1.9 | 2.1 | |||
1.5 | ||||
Cash on | 2.4 | 1.0 | ||
hand |
0.4
Liquidity | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
onward
86%
Net debt | Leverage |
13.4 Bn (US$) | 4,9 x (Net debt/ EBITDA em US$) |
FX: R$4,0307/US$ (31/12/2019)
PlannedExecuted
Capex limited to2019: R$ 5.78 Bn
sustaining and | (below original guidance) |
commitments | 2020: R$ 4.44 Bn |
already made |
Monetization of | 1.1 M tons inventory |
excesso inventories of | reduction in 2H19 |
~US$ 500 Millions |
Non-coreassets | Sale of R$ 0.4 Bi in |
sale | forests |
Sinergias capture: | Acelleration |
90% in 2020 | of capture |
R$ 720-810 M
R$ 320-360 M
R$ 800-900 M
2019 | 2020 | 2021 |
Steady state in full capacity
R$ 1,100-1,200 M
R$ 1,000-1,100 M
R$ 763 M
201920202021
Steady state in full capacity
Note: R$ 311 million including the negative impact of implementation costs and production reduction
january ONE
2019
New culture
UMA | ONE | ONE | january |
2020 |
People who inspire and
transform
Unified processes and systems
91%
adherence
Create and | It´s only good for |
us if it´s good for | |
share value | |
the world | |
Suzano | The future |
one year post-merger | of Suzano |
Megatrends
Urbanization
Growing and aging population
Climate change
Tecnology and
Digitalization
Emerging economies growth
Opportunities for Suzano
Reduce usage of plastics
Renewable materials and inputs
Carbon capture
Continue being a benchmark in the sector in efficiency, profitability and sustainability, from the forest to the client
vision
Be a transformational agent in the expansion into new markets for our biomass
Be a reference in sustainable and innovative
solutions for the bioeconomy and environmental services, based on planted trees
Be "Best-in-Class" | Maintain relevance | Advance in the links of |
in the total Pulp | in Pulp, through | the chain, always with |
cost vision | good projects | competitive advantage |
Expand boldly | Play a leading role |
into New | in sustainability |
Markets |
Be "Best-in-Class"
in the total Pulp
cost vision
Be "Best-in-Class" in the total Pulp cost vision
Total Operational Disbursement (R$/ton)(1)
Sustaining
Capex
SG&A + freight
Production Cash Cost (incl. downtime)
1,584
418 | ~1,300 | |
additional cash generation | ~340 | |
460 | ||
~400 |
706 | ~560 |
2019 | 20242 |
US$ 401/ton | US$ ~329/ton |
(1) Real figures. Average 2019 FX : R$ 3.95/US$. Does not include working capital variation | (2) Structural Total Operational Disbursement in full capacity
Be "Best-in-Class" in the total Pulp cost vision
Third-party37% wood
Average forest-mill
distance 228 (km)
23%
156
20192024
Be "Best-in-Class" in the total Pulp cost vision
MAICel
From clone... | ... to harvest and |
transportation | |
Clonal allocation | Wood quality | Pests and | Stresses tolerance |
diseases | |||
resistance |
Be "Best-in-Class" in the total Pulp cost vision
+ 4.0
M tons/year
Picture: January 2020
Maintain relevance
in Pulp, through
good projects
Maintain relevance in Pulp, through good projects
Global Pulp Demand1
Organic growth
1.1 - 1.5
million tons/year
Current Organic
Demand Growth
1. Illustrative graph
Source: Pöyry, Fisher, PPPC, and Suzano BI
Drivers
Mature Emerging
Markets Markets Global
Woodfree
Tissue
Paperboard
Specialties
Above | -0.5 a +0.5%/year |
2.0%/year | |
+0.5 a | Below -0.5%/year |
+2.0%/year |
Maintain relevance in Pulp, through good projects
Global Pulp Demand1
Substitution potential
At least 0.5
million tons/year
Current | Organic | Fiber to |
Demand | Growth | Fiber |
Fiber availability
RecycledIntegrated
PaperPulp
Current 5-10 years | Current 5-10 years |
1. Illustrative graph
Source: RISI, Suzano BI
Maintain relevance in Pulp, through good projects
MS
M tons/year
SP
Structural average | ||
radius: 50km | ||
Ribas | Vértere | 100k hectares of |
already acquired land | ||
do Rio Pardo |
Note: growth optionality
Advance in the links of the chain, always with competitive advantage
Advance in the links of the chain, always with competitive advantage
New brands | Market Share in Value | Dec 2019 |
launching
3.9% 6.5%
2.6%
Inorganic | Organic | Current | New plant in |
P | |||
Espírito with | |||
PowerPoint | |||
ICMS | |||
monetization |
2017 | 2018 | 2019 | Source: Nielsen | 2020 |
Advance in the links of the chain, always with competitive advantage
New brands
launching
P |
PowerPoint
Leadership in North and
Northeast markets
Market share in value | Dec 2019
57%
22%
11%9%
North | Northeast | |||
Suzano | 2nd player | |||
New plant in Espírito with
ICMS
monetization
2017 2018
2019
Source: Nielsen
2020
Expand boldly
into New Markets
Expand boldly into New Markets
State-of-the- | Highly productive |
art forests | mills |
Pirolysis
Marketpulp
Energy
Lignin
Dissolving
Pulp
MFC
Biocomposites
Bio-chemicals
Resins FF, dispersants, plastics, elastomers, etc.
Textiles, resins, etc.
Sugars | Sweeteners, furfural, etc. |
Paper, textiles, paints, wood panels, etc.
Fiber/ PE/ PP/ PLA
Bio-oils,
Bio-fules,
Bio-chemicals
Paper | P&W, paperboard, Tissue, cups | |
Fluff | Diapers, absorbents, etc. | |
Nonwovens | Filters, hospital material, etc. | |
Expand boldly into New Markets
Technology
Partners
Application
Partners
Potencial addressable markets (USD Bn/year)
Paper and Packaging | 3.3 |
Textile | 9.0 |
Plastics | 16.0 |
Fuels | 17.0 |
Chemicals | 10.0 |
Furniture | 1.8 |
Automotive | 1.0 |
Construction | 1.0 |
Animal Nutrition | 1.3 |
Agriculture | 3.0 |
Source: IHS, CCM Market Data, Rubber, Chamical Consultants, Unicamp, ABRAFATI, FGV, Mordor Intelligence, RISI, Hawkins Wright, Ibá, ABIMCI, BNDES, Maxiquim, Suzano
into New | Plastics |
Expand boldly | |
Markets |
20% to
60%
of fibers in the composite
One
solution...
Pulp
... multiple applications
Already tested
applications
Cost competitive pulp versus fossil resins
Reduced CO2 footprint
Expand boldly into New Markets
Relevant market growth | The interest in sustainable products | |||
Annual textile production per fiber (M tons) | reinforces our differential | |||
The textile industry today: | ||||
107 | 119 | 8%-10% of greenhouse | ||
92 | 9 | effect emissions | ||
7 | ||||
Wood | ||||
5 | ||||
Synthetic | 53 | 68 | 79 | 20% of water pollution due to |
industrial waste | ||||
Cotton | 27 | 26 | 26 | USD 500 Bn / year in lost value |
Others | 6 | 6 | 6 | |
due to underutilization of | ||||
2012 | 2018 | 2023e | ||
clothes and lack of recycling | ||||
Souce: United Nations Alliance for Sustainable Fashion, Hawkins Wright
Expand boldly into New Markets
Disruptive and highly
Certified | Pulp | Mechanical | Micro Fibrillated | Fiber |
wood | refining | Cellulose (MFC) | suspension |
Textile
Fibers
Staple | Extrusion |
Fiber/Filament | and drying |
Expand boldly into New Markets
Henna
Virkkunen
at Finnish
Independence
Day
Expand boldly into New Markets
countries
Source: Pöyry, Datamark, Suzano BI
tonnes of plastic packaging
500 billion
plastic bags/year
380 billion
plastic cups/year
Substitution into paper products
Equivalent to
Expand boldly into New Markets
Global Pulp Demand1
Current | Organic | Fiber | Fossil | Future |
Demand | Growth | to Fiber | to Fiber | Demand |
1. Illustrative graph
Play a leading role in sustainability
Play a leading role in
sustainability
Climate change
Reduce specific emissions in
15%
Water
- Forest: Increase water availability in 100% of critical watersheds
- Industry: Reduce 15% of collected water
Industrial waste to landfill
Reduce in 70%
Energy
Increase exports in
50%
Diversity and Inclusion
- 30% of women and 30% of black people in leadership positions
- 100% of accessibility
- 100% inclusive environment and zero prejudice: people with disabilities and LGBTI+
Education
Enhance IDEB in 40% of our priority municipalities
2030 goals, except for Diversity and Inclusion (2025)
Play a leading role in
sustainability
Even more climate positive
-40 million tonnes of carbon
Ambitious sustainability goals for
Replace plastics | Mitigate the |
and oil- | income |
derivatives | distribution |
problem | |
+10 million | Zero people |
tonnes | below the |
poverty line in | |
our influence | |
areas (~200 | |
thousand people) |
More efficiency
Bigger addressable market
Leading role in
sustainability
Strong financial discipline
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Disclaimer
Suzano SA published this content on 13 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2020 14:11:09 UTC
