1Q17 C o n f e re n c e C a l l

Transcription

1 1Q17 C o n f e re n c e C a l l

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 not to materialize or the current 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.

3 Consistency and Resilience of Results Financial Discipline Cost Discipline Capital Discipline Supply Discipline Product Portfolio

4 F inancial Discipline Robust Balance Sheet Gross Debt: R$ 13.8 billion Cash Position: R$ 4.1 billion Net Debt: R$ 9.7 billion Average Cost of Debt: 4.9% p.a. Average Debt Maturity: 62 months Foreign Exchange Exposure Policy: from 40% to 75% Indebtedness Policy Approved Debt (R$) / Adjusted EBITDA (x) 5.6x 4.1x 4.0x 3.6x 3.2x 2.7x 2.6x 2.8x Dec/14 Dec/15 Dec/16 Mar/17 Gross Debt Net Debt Net Financial Expenses LTM¹(R$ million) ¹ Last twelve months Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Amortization Schedule (R$ million) 4,069 3,529 1,041 2,502 2,758 2, ,055 1, ,491 1, Local Currency Foreign Currency 2,642 2, ,484 2,654 Cash 9M onward

5 Oct-16 F inancial Discipline Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 Fundraising compatible with Investment Grade companies Suzano 2026 vs. Peers Suzano 2047 vs. Peers Braskem 2024 Fibria 2027 Klabin 2024 Suzano 2026 Braskem 2041 Gerdau 2044 Suzano 2047 Votorantim % 5.5% 5.25% 5.75% Coupon 7.125% 7.25% 7.00% 7.25% 5.049% 5.482% 5.145% 5.505% Yield 03/31/ % 7.379% 7.142% 7.086%

6 Capital Discipline Capex Flexibility New Cut Size Line - Mucuri (Concluded) Crystallizer Mucuri (Concluded) CAPEX (R$ billion) Debottlenecking Imperatriz (3Q17) 1Q e Wastewater Treatment Station Mucuri (3Q17) Sustaining Tissue Mucuri (3Q17) Tissue Imperatriz (4Q17) Structural Competitiveness e Adjacent Businesses Projects on time and on budget! Total

7 Capital Discipline ROIC positively impacted by Sustaining Capex efficiency Sustaining Capex /Produced Volume LTM¹ (R$/ton) Q15 1Q16 1Q17-3.9% Inflation: +14.4% ¹ Last twelve months

8 Products Por tfolio Lower volatility and higher added value Cash Flow (R$/ton)¹ Tissue Final Product Start Up: 3Q17 (Mucuri) and 4Q17 (Imperatriz) Total Capacity: 120k tones/year Initial conversion capacity: 60k ton/year Pulp Jumbo Roll ¹Current market price and Suzano's cost expectations. Gradual ramp up Total Capex: R$ 540 million Production of jumbo rolls and final products, focuses on the Brazilian North and Northeast markets Tissue Equipment Imperatriz Unit

9 Cost Discipline Continuous focus on efficiency COGS / Sales Volume LTM¹ (R$/ton) SG&A / Sales Volume LTM¹ (R$/ton) 1,307 1,283 1,368 1,391 1, Dec/13 Dec/14 Dec/15 Dec/16 Mar/17 Dec/13 Dec/14 Dec/15 Dec/16 Mar/ % Inflation: +26.4% Costs and Expenses significantly below inflation - 8.7% Inflation: +26.4% ¹ Last twelve months

10 Cash Cost Downward trend continuous Consolidated Pulp Cash Cost Ex-Maintenance (R$/ton) Target Cash Cost LTM1Q17 1Q ¹ ¹ Debottleneck of Imperatriz Optimization of Average radius Crystallizer in Mucuri ¹ Nominal value in 2016.

11 Profitability and resilience of the paper business Paper Production ( 000 tons) Paper Sales ( 000 tons) 1,182 1,160 1,194 1, Q16 4Q16 1Q LTM¹ Paper Adjusted EBITDA (R$/ton) Paper ROIC (%) Q16² 4Q16 1Q LTM¹ Brazil Exports 1, Q16 4Q16 1Q LTM¹ LTM1Q16 LTM4Q16 LTM1Q17 ¹ Last twelve months end on 03/31/2017 ² Data excludes Embu Unit

12 Pulp EBITDA in progress and expectation of improvement in the next quarters Pulp Production ( 000 tons) Pulp Sales ( 000 tons) 3,473 3,435 3,530 3, Q16 4Q16 1Q LTM¹ 1Q16 4Q16 1Q LTM¹ Pulp Adjusted EBITDA (R$/ton) Pulp ROIC (%) 1, Q16 4Q16 1Q LTM¹ LTM1Q16 LTM4Q16 LTM1Q17 ¹ Last twelve months end on 03/31/2017

13 Operational performance improvement and product portfolio mitigate the impact of external factors Operating Cash Flow LTM¹ (R$ ton) Adjusted EBITDA LTM¹ (R$/ton) 1, Consolidated ROIC¹ (%) Dec/13 Dec/14 Dec/15 Dec/16 Mar/ ¹ Last twelve months

14 Thank you! Investor Relations