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APIMEC 2014
PULP AND PAPER
How can we serve our
By doing more, better and
STAKEHOLDERS?
differently 2
with all stakeholders DIALOGUE
Shareholders Creditors Society Employees
3
with Shareholders
RELATIONSHIP
4
Structural Competitiveness
RETURNS ABOVE THE
Cost of Capital
Actions
Forestry
Industrial
Measurement
EBITDA FCF ROIC
Logistics
Commercial
5
Short Term Timber swap agreements
Standardization and insourcing of harvest activities
Actions Gains
Structural reduction of wood costs
Optimization of asset base
FORESTRY
Medium term Reduction in average supply radius
Precision silviculture
Long term Biotechnology
6
status FuturaGene
Regulatory process
Certification and implementation
7
INDUSTRIAL
Modernization
Actions Gains
Operating efficiency and cost reductions
Energy efficiency
Optimization of asset base
8
COMMERCIAL
Actions
Revenue Management
Gains
Profitability
Revenue Mix
Depalletizing
Loyalty
9
TAX INCENTIVES
Reduction in Payroll Taxes
Reduction of 75% in corporate income tax in certain regions
Accelerated Depreciation Incentive (DAI)
Preponderantly Exporter
RECAP
Drawback Exemption (PIS / COFINS)
Reintegra
10
with Creditors RELATIONSHIP
11
Debt profile on 9/30/14
Long Term
11%
Net Debt / Adjusted EBITDA (x)
89%
Short Term
On the right path
Ratings
5.2x
4.8x
4.5x 4.5x
4Q13 1Q14 2Q14 3Q14
4Q13 1Q14 2Q14 3Q14
BRL % of CDI
94.4% 92.2% 91.8% 92.4%
USD 4.8% 4.8% 4.7% 4.7%
12
Moody’s Ba2 Stable
S&P BB Stable
Fitch BB Stable
Debt Cost (% p.a.)
Positive arbitrage
LIABILITY Management
Total:
Extension of export prepayment
facilities (EPFs)
Bond prepayments
R$1.3 billion
13
with
RELATIONSHIP Society
14
Society
Annual Investment :
Community Council Fostering of economic development Biodiversity conservation
R$14 million
160k people benefitted
130 municipalities/cities
Relationship
15
with Employees RELATIONSHIP
16
People Variable compensation
Recruiting
Development
Retention
17
Transformation
Proud to belong
Meritocracy
Boldness
Be better every day
Cultural
18
Suzano: trust in the right path
19
The results of these
Improvement in return on assets
already visible measures and innovations are
Efficiency gains
Higher cash generation
20
25.3%
27.3%
29.7% 31.3% 32.9% 32.7% 32.1%
606 568 581 569 629 565
502
BETTER EVERY DAY: Continuous focus on increasing
Adjusted EBITDA Margin
1,349 1,459
1,631 1,781
1,944 2,057 2,161
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Adjusted EBITDA
operating income
12.1% 11.9%
11.5%
11.0% 10.8%
10.4%
9.8%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Cash cost
SG&A/Net Revenue
Cash cost* and SG&A/Net Revenue TTM**
(R$ million) (%) Adjusted EBITDA and Margin TTM**
(R$/ton) (%)
*Cash cost ex-maintenance downtime **Last twelve months 21
CAPEX 2015
Maintenance R$ 1,050 million
Vale Florestar R$ 50 million
Competitiveness R$ 390 million
Competitiveness Projects Digester at Suzano Unit Insourcing and equipment modernization Reduction in average supply radius in São Paulo Energy efficiency program Small projects, big returns
EBITDA Gain: ~R$ 95 million/year as of 2015 Total
R$ 1.5 billion 22
moment
Better every day! A unique
Discipline and innovation
Structural changes
Higher profitability
Cultural transformation
23
