Increasing operational performance with capital discipline OPERATING CASH GENERATION¹ LTM² (R$ billion)

Transcription

1 2Q16 Results

2 Disclaimer 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 to not materialize or the actual 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. 2

3 Increasing operational performance with capital discipline OPERATING CASH GENERATION¹ LTM² (R$ billion) NET DEBT/ADJUSTED EBITDA LTM² (x) x 4.1x 3.3x 2.7x 2.3x 2.1x dec/13 dec/14 jun/15 dec/15 mar/16 jun/16 dec/13 dec/14 jun/15 dec/15 mar/16 jun/16 Record-high Revenue, Adjusted EBITDA and Operating Cash Generation in the LTM of R$10.9 billion, R$4.94 billion and R$3.8 billion, respectively Strong Operating Cash Generation in 2Q16: R$ 723 million 2Q16 Adjusted EBITDA of R$803/ton shows the resilience of the paper industry Lower cash cost in 2Q16 (ex-maintenance downtime): R$636/ton (-R$18/ton vs. 1Q16) COGS +0,5% and SG&A -9% vs Inflation of +8,8% (2Q16 vs. 2Q15) Liability Management: Debt Dollarization, implemented in July/2016, reinforces management and financial strength Note: (1) Operating cash generation considers Adjusted EBITDA less Sustaining CAPEX (2) Last twelve months 3

4 Paper Price increase implemented in the Brazilian market Paper Production¹ ( 000 tons) Q15 1Q16 2Q16 6M15 6M16 Paper Sales¹ ( 000 tons) Q15 1Q16 2Q16 6M15 6M16 Exports Domestic Market Brazilian demand impacted by the macroeconomic scenario (-5.7% in 2Q16 vs 2Q15) Paper price increase implemented in the Brazilian market, as announced, in the uncoated printing & writing and paperboard segments Improvements in Suzano s Go-To-Market Project in Brazil (Suzano+ Program) Market share gain in coated P&W paper segment Fire at Suzano Mill: impact on EBITDA from the insurance deductible (non-recurring) and inventory and production losses of 15,000 tons (3Q16 volume) Note¹: Data excludes Embu Unit results 4

5 Pulp Margin impacted by list price reduction and FX Pulp Production ( 000 tons) Pulp Sales ( 000 tons) ,600 1, , , ,421 1,604 2Q15 1Q16 2Q16 6M15 6M16 2Q15 1Q16 2Q16 6M15 6M16 Exports Domestic Market Global demand improving: pulp shipments +4.2% and eucalyptus pulp + 8.7% ( 2Q16 vs 2Q15) Production impacted by longer maintenance downtime in Imperatriz Mill, due to the first investments for the implementation of Project 5.1 and planned ramp up Inventory reduction in 2Q16: 94,000 tons 5

6 Cash cost decrease reflects focus on strategic pillar of Structural Competitiveness Consolidated Pulp Cash Cost Ex-Maintenance Downtime (R$/ton) (19) 25 4 (22) (11) 16 Inflation: +8.8% % Inflation: +1.7% - 2.7% + R$ 10/ton - R$ 18/ton 2Q15 Wood Chemicals Fixed Cost 2Q16 Wood Chemicals Fixed Cost 1Q16 Trend of cash cost reduction:: - Continuous third-party wood and average distance reduction in the supply mix at Mucuri Mill - Better chemical consumption 6

7 Consistency on costs and expenses below inflation Revenue and Adjusted EBITDA (R$ million) 2,382 2,708 2, , Revenue Adjusted EBITDA 2Q15 1Q16 2Q16 Average FX (R$/US$) Average PIX Europe (US$/ton) SG&A. / Sales Volume (R$/ton) COGS (R$/ton) Inflation: +8.8% -9.0% Inflation: +8.8% +0.5% 188 1,388 1,350 1, Q15 1Q16 2Q16 2Q15 1Q16 2Q16 7

8 Paper business resiliency in moments of pulp market turbulence Adjusted EBITDA (R$ / ton) 1, (257) (44) (1) (10) 803 1Q16 Paper Pulp COGS SG&A Others¹ 2Q16 Investments in adjacent businesses seek to reduce results volatility Note: ¹Others includes depreciation, amortization and depletion; other operating income/expenses; and non-recurring adjustments. 8

9 Dollarization and debt maturity profile reinforce financial strength Jun/14 Jun/15 Jun/16 Post Bond¹ Average Cost of Debt (%) 4.7% 4.0% 84.2% 4.3% 4.4% BRL USD 91.8% of CDI 89.9% of CDI of CDI Debt / Adjusted EBITDA (x) 6.1x 4.5x 4.2x 3.3x 2.6x 2.1x Jun/14 Jun/15 Jun/16 Gross Debt Net Debt Debt Profile Post Bond Green Bonds: US$ % coupon Gross Debt: R$14.4 billion Cash Position of R$ 4.2 billion Note: ¹Post Bond includes derivatives for debt swap Gross Debt / Adjusted EBTIDA: 2.9x Average debt maturity of 3.6 years (vs 3.0 years in 2Q16) 9

10 CAPEX reduction, with projects on time and unchanged scope, reinforces financial discipline CAPEX (R$ billion) 6M e 2016Revised SUSTAINING MODERNIZATION AND EXPANSION TOTAL Savings from negotiation and fx, and also from payments postponements 10

11 Flexibility in capital allocation: priority on the deleveraging and on value creation to shareholders 11

12 BETTER EVERYDAY STRONG AND KIND