1Q11 RESULTS May 12 th, 2011

Transcription

1 1Q11 RESULTS May 12 th,

2 General Notice Certain statements in this presentation may constitute forward-looking statements. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks include changes in customer demand for the Company s products, changes in factors that affect the domestic prices for products, changes in costs structure, seasonal fluctuations in customer orders, pricing actions by competitors, significant changes in the applicable rates of exchange of the Brazilian real against the US dollar, and general changes in the economic environment in Brazil, emerging markets or internationally.

3 Agenda Market Highlight 1Q11 Pulp Business Unit Paper Business Unit Consolidated Results

4 Market Highlights 1Q11 Pulp and Paper Pulp Global market pulp production of 11.0 MMt in 1Q11: +1.4% vs. 4Q10 and +9.1% vs. 1Q10 Global inventories at 32 days 1 (mar/11): below the historical average of 33 days Pulp price list stable in 1Q11: US$849/ton (march, CIF Europe) Global market pulp volume sold: Market pulp shipments to Europe in 1Q11: Market Pulp: 4,049 tsd ton (+4.5% vs. 4Q10 and +4.3% vs. 1Q10) Eucalyptus: 1,750 tsd ton (+11.6% vs. 4Q10 and +10.6% vs. 1Q10) Market pulp shipments to China in 1Q11: Market Pulp: 2,215 tsd ton (-4.5% vs. 4Q10 and +35.5% vs. 1Q10) Eucalyptus: 674 tsd ton (+2.7% vs. 4Q10 and +5.1% vs. 1Q10) Paper MMt 1Q11 1Q11 vs 4Q10 1Q11 vs 1Q10 Market Pulp % +6.1% Eucalyptus % +1.3% Brazilian Demand 2 : Thousand ton 1Q11 1Q11 vs 4Q10 1Q11 vs 1Q10 Printing and Writing % +8.0% Paperboard % -11.8% Increase of P&W paper imports (30.4% vs. 25.3% in 4Q10) Brazilian exports accounted for 39% of total sales in 1Q11 vs. 37% in 4Q10 Demand reduction at the main P&W markets in 1Q11 1 vs. 4Q10 Sources: 1 PPPC; 2 Bracelpa 4

5 Agenda Market Highlight 1Q11 Pulp Business Unit Paper Business Unit Consolidated Results

6 Pulp Business Unit Highlights Volume sold (tsd ton) Sales Destination 1Q % % 431 Brazil19% North Am. 10% South / Central Am. 1% 35% Europe Domestic Market Exports Asia 35% Average Net Price Net Revenue (R$ million) +14.3% R$ 1,164 R$ 1,218 R$ 1, % $647 $716 $ R$ US$ Domestic Market Exports 6

7 Agenda Market Highlight 1Q11 Pulp Business Unit Paper Business Unit Consolidated Results

8 Paper Business Unit Highlights Volume sold (tsd ton) Sales Destination 1Q % % 246 North Am. Europe 11% 9% 2% Asia South / Central Am. 20% 58% Brazil Domestic Market Exports Average Net Price Net Revenue (R$ million) +4.3% R$ 2,032 R$ 2,189 R$ 2, % 545 $1,129 $1,288 $1, R$ US$ Domestic Market Exports 8

9 Agenda Market Highlight 1Q11 Pulp Business Unit Paper Business Unit Consolidated Results 10

10 Consolidated Results Suzano Pulp and Paper Net Revenue (R$ million) and Volume (tsd ton) Cash Cost (R$/ton) R$/US$ avg Domestic Market Exports Volume With maintenance Without maintenance EBITDA (R$ million) and EBITDA Margin (%) Net Income (R$ million) and Net Margin (%) 51.9% 32.4% 31.7% 33.0% 12.7% 21.0% 13.6% Q10* 4Q10 1Q11 * 1Q10 EBITDA considers the non-recurring effect of the asset sale in Minas Gerais State. Excluding this, the EBITDA margin would have been 32.4% 10

11 Consolidated Results Debt Gross Debt (R$ million) Index Exposure 03/31/2011 6,618 5,450 7,156 6,990 5,775 5,690 Debt in Foreign Currency: R$ 3,179 million Libor 18% CDI 8% IGPM 7% Basket of Currencies 4% Fixed (R$) 2% TJLP 33% 1,168 1,381 1,300 03/31/ /31/ /31/2011 Short Term Long Term Amortization Schedule (R$ million) Fixed (US$)28% Net Debt / EBITDA (x) 3.3x 3.3x 2, x 2.3x 2.0x 5,160 1,193 1,290 1,018 1,002 4,220 3,883 3,850 3, onwards 1Q10 2Q10 3Q10 4Q10 1Q11* * The increase in net debt results from cash reduction due to Conpacel s acquisition payment. 11

12 Consolidated Results Investment Investments (R$ tsd) 1Q11 1Q10 Y-o-Y 4Q10 Q-o-Q Maintenance 105,987 75, % 118, % Industrial 16,307 13, % 38, % Forestry 89,680 62, % 80, % Expansion 1,668,954 35,077 4,658.0% 78,818 2,017.5% Other 4, ,060.4% 7, % TOTAL 1,779, ,187 1,500.4% 204, % 12

13 Investment Plan Funding is settled for construction of the Maranhão Unit Market pulp production capacity: 1.5 MM ton/year Funding: BNDES: R$ 2.7 billion, 12-year maturity and 3- year grace period Mandatory convertible debentures: R$ 1.2 billion Funding for the imported equipment supported by foreign credit agencies (ECA s among others) Cash flow generation Required planted area Maranhão Unit Forestry capex (total estimated) Industrial capex (total estimated) Start up (estimate) 2013 Wood supply 154 tsd ha US$575 million US$2.3 billion 68% own land 32% third parties Agreements for the acquisition of key equipment: Metso and Siemens Competitive Advantages 100 MW energy surplus for sale Logistics guaranteed by long term contracts Latest technology Draft of the Maranhão mill 13

14 Investor Relations Team Antonio Maciel (CEO and Investor Relations Director) Andrea Fernandes (Investor Relations Manager) Áurea Portugal (Assistant) Eduardo Oliveira (Intern) Fernanda Nardy (Analyst) Michelle Corda (Analyst) Rosely Onizuca (Analyst) Investor Relations 14