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Presentation
2
Disclaimer
Certain statements in this presentation may constitute forward-looking statements. Such statements are
subject to known and unknown risks and uncertainties that could cause the Company’s actual results to
differ materially from those set forth in the forward-looking statements. These risks include changes in
customer demand for the Company’s products, changes in raw material costs, 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
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
4
Corporate Overview
Suzano is a forestry-based company, publicly traded, controlled by Suzano Holding. Suzano operates in the pulp and paper businesses.
Capital Structure (August/12)
Free Float Controlling
Group
Treasury
56%
1%
43%
2nd largest eucalyptus pulp producer in the
world
8th largest market pulp producer in the world
Pulp production costs: one of the lowest in
the world
Leader in the regional paper market
Certified plantations and products
Organic Growth in pulp
New businesses: biotechnology and wood
pellets for energy
Market cap: R$3.0 billion on 6/30/12
Forests
Miils
Ports
Railroad
Portocel
Vitória
Pecém Port
Itaqui Port
Mucuri
Santos
Limeira
Suzano
Rio Verde
Embu
“Norte e Sul”
Railroad
“Carajás”
Railroad
Piauí Maranhão
Transnordestina
5
Organizational Structure
The Business Units model provides performance and return assessments in each business independently.
Audit
Paper BU
BU: Business Units
SP: Service Providers
BD Commitees
SP Corporate Dev.
Board of Directors (BD)
9 members (4 independent)
CEO and Strategy
SP Operations
SP Finance and IR
SP Human Resources
Pulp BU Forestry BU
Sustainability
and Strategy
Management
6
Products and Diversified Markets
Suzano’s products portfolio is made of market pulp, paperboard, uncoated paper and coated paper.
Net Revenue 52% Exports / 48% Domestic Market
R$4.9 billion
Market Pulp 2nd eucalyptus market pulp producer
40%
Paper
60%
Printing and Writing
44%
Uncoated 1st in Brazil with 35% market share
36%
Coated 1st in Brazil with 32% market share
8%
Paperboard 2nd in Brazil with 26% market share
13%
Note: Figures of last 12 months ending on 6/30/2012.
Other paper represented 3% of net revenue on the period.
The market share data includes paper imports.
7
Timeline
Suzano has over 80 years of operation.
1924 a 1940 1950 1960 until 1990 2000 2024
7
1939
1955
1956
1960
1975
1982 2005
2004
2010
1992
2007
2008
1924
Consolidation as one of the
largest Brazilian Groups
Growth and diversification in the
pulp and paper businesses
Beginning of
operations in the
paper industry
First investment in
the pulp sector
Suzano 2024
Acquisition of
Suzano mill Beginning of paper
exports to Europe
Acquisition of Ripasa (50%)
Start up of the first
paper mill
Start up of Bahia Sul
Pioneerism in
eucalyptus plantation
Leon Feffer starts
paper trading
activities
Acquisition of
Indústrias de Papel
Rio Verde’s control
Launch of Report
Adoption of Bovespa’s Level I
corporate governance
standards and Professional
Management
Start up of Line 2
at Mucuri
Merger with
Bahia Sul
New Growth Cycle
Suzano Renewable
Energy
Acquisition of
FuturaGene,
PLC.
Acquisition of 50%
of Conpacel and
KSR.
8
Strategy – Suzano 2024
Forestry competency provides the foundation for growth of the pulp business and enables
new business opportunities in Biotechnology and Renewable Energy.
Operational
excellence
in paper
Renewable
Energy
(Wood pellets)
Organic
growth
in pulp
Biotechnology
Forestry
Competency
9
Organic Growth in Pulp
Suzano’s production capacity has increased by 130% in the last 6 years. The Company is prepared for a new growth cycle that will increase its capacity to 6.2 MM ton/year of pulp and paper by 2016.
784 915 1,080 1,100 1,100 1,100 1,100 1,290 1,290 1,290 1,290 1,290 1,290 456 570
640 820 1,650 1,750 1,750
1,920 1,920
3,420 3,420 3,420
4,920
1,240 1,485
1,720 1,920
2,750 2,850 2,850 3,210 3,210
4,710 4,710 4,710
6,210
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e
Piauí
Unit
Maranhão
Unit
Paper Market Pulp
Note: Investment decision on Piauí Project expected for 1H14.
10
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
Agenda
Forestry Assets
Suzano’s forestry expertise, developed over years of consistent investments in R&D, allows the Company to expand its forestry assets to a new frontier: the northeast region of Brazil.
2012
Total area (k ha) 1 802
Total planted area (k ha) 2 436
Own planted area (k ha) 1 349
Forest Partnership Program (k ha) 87
Own Preserved Area (k ha) 1 310
Average Distance in Bahia (km) 73
Average Distance in São Paulo (km) 237
Base 06/3102012 1 Own and leased areas 2 Figures consider own, leased and third-parties areas
2011
Annual planting (k ha) 87
Planted seedlings / day (k) 356
Total: 188 k ha
Planted: 117 k ha
Total: 228 k ha
Planted:
131 k ha
Total: 385 k ha
Planted: 101 k ha
SP
BA, ES and MG
MA, PI and TO
SP
MG
BA
ES
TO
PI
MA
11 Note: Both own and leased land can suffer variation up to 5% quarter over quarter. The total amount
can differ due to rounding.
Forestry Competitiveness
Suzano’s innovation present in its DNA, responsible forest management and operational excellence enabled the leverage of competitiveness.
Investments in technology guarantee a highly
diversified genetic portfolio, which is suitable for
different regions
+ 14 thousand clones developed | 800 field trials | 4 thousand hectares
Genetic enhancement
Biotechnology
Forestry management
Sustainability
Operational excellence
Productivity + +
12
Evolution of Maranhão Forests
80’s 90’s 00’s 10’s
Forestry Technology
Nurseries with high technology standards guarantees production efficiency.
Suzano’a pioneering and innovation
enable the development of extensive
genetic base and improvement of
stewardship techniques
Highly qualified forestry technology team
(22 researchers: 2 PhDs and 6 Masters
Degrees)
Suzano/Futuragene technology center
Technology Center
Nurseries (85mm total seedling capacity)
Suzano
Seedling
capacity of
12mm
Limeira
Seedling
capacity of
8mm
Mucuri
Seedling
capacity of
20mm
Maranhão
Seedling
capacity of
15mm
Piauí
Seedling
capacity of
30mm
Brazil’s most
modern nursery
13
Forestry Competitiveness in Brazil
Brazil presents competitive advantages to support continuous increase of its global forestry standing.
14
40
22 20 18
15 12
6
Source: ABRAF, BRACELPA, Poyry, Adapted by STCP Consulting
Hardwood Productivity (m³/ha/year)
Brazil Australia South
Africa Portugal USA Finland Chile
Competitive Advantages
Availability of productive land
Excellent soil and climate conditions
Short harvesting cycle for planted forests
Opportunity to recovery degraded areas
Low establishments and maintenance costs
Pulp Productivity
5.5 admt1/ha/year
11 admt1/ha/year
Biotechnology
1980 2011
+100%
Source: Suzano
More wood / hectare
More pulp / m³
Superior quality
Smaller area
Decreasing costs / m³
1Admt: air dried metric ton
15
Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
591 643 803 850
524 513 532 536
1,115 1,156 1,335 1,386
2009 2010 2011 LTM
61%
4%
16%
8% 11%
Leadership in printing & writing and white paperboard in South America
More than 90% integrated production (pulp + paper)
Fx hedge: approximately 65% of paper revenue in local currency
Lower price volatility in the domestic market
Paper merchants: KSR e SPP NEMO: largest in Latin America Stenfar: top 5 in Argentina
16 1 Last twelve months ending on 06/30/2012
1
Paper Assets Operational excellence in paper: revenue and products portfolio management, asset
optimization, and strengthening of distribution channels.
Sales Volume (k ton) Sales Destination – LTM1
Domestic Market Exports
Others
Europe North Am.
South/Central Am. Brazil
Paperboard 2nd in Brazil
26%
Paper
Printing & Writing
Coated 1st in Brazil
Uncoated 1st in Brazil
35%
32%
Suzano Market Share in the Domestic Market – LTM1
17
Focus in the Domestic Market Lower price volatility, better margins and important cash flow generator.
Paperboard
Market dominance in high value added
segments
Low level presence of imports
Growth of the consumer industry
Printing & Writing
Imports: high concentration of coated
Exchange rate’s effects
Fiscal control of Immune paper
operations
Pap
erb
oard
P
rin
tin
g &
Wri
tin
g
Average Net Price (base 100 in Jan/2010)
Average Net Price (base 100 in Jan/2010)
Note: Prices of domestic market in R$.
50
70
90
110
130
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12
112
50
70
90
110
130
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12
125
Paper Market Growth
Economic growth in emerging markets favors paper consumption.
1 Woodfree Printing & Writing paper I 2 Latin America excluding Brazil I 3 Paperboard + liquid packaging board
Source: RISI and Poyry (nov/2011)
Global
2011e Paper Demand (k ton)
2,936
Uncoated
Paperboard3
Coated
993 1.837
2.366 54.180
1,943 { 587
1,356
Printing &
Writing1
Brazil
4,969
1,793
821
2,355
Latin America2
3,176 { 2.366
128,601
46,948
27,473
54,180
{ 81,653
CAGR 2011e – 2016e Brazil Latin America2 Global
Paperboard3 +3.9% +3.5% +3.0%
Printing & Writing1 +3.8% +3.1% +1.0%
Coated +4.2% +3.2% +1.0%
Uncoated +3.6% +3.0% +1.1%
18
Paper Demand Growth Drivers
Historically there is a high correlation between GDP and paper consumption.
1 Excluding China and Japan
Source: 2010 paper consumption data from Poyry (nov/2011) and 2010 GDP per capita information from World Bank (sep/2011)
China
68 kg/ha/year
GDP per capita:
US$4 k
USA
233 kg/ha/year
GDP per capita: US$47 k
Índia
9 kg/ha/year
GDP per capita: US$1 k
Brazil
47 kg/ha/year
GDP per capita: US$11 k
19
North America
226 kg/ha/year
Latin America
44 kg/ha/year
Ásia1
19 kg/ha/year
Europe
Western: 185 kg/ha/year
Eastern: 47 kg/ha/year
317 304 285 294 257
145
450 525
486
632 570
304
2007 2008 2009 2010 2011 6M12
40% 44% 47% 57%
70% 69% 72% 66%
56% 60% 55% 56% 53%
42% 43%
54% 58% 54% 60% 61%
50% 52%
2.00 1.95 1.84 1.76 1.68 1.69 1.66 1.59 1.61 1.59 1.56 1.60 1.74
RECOPI1
20
1.77 1.79 1.84 1.79 1.72 1.79
Coated Paper
The share of coated paper imports is high as Brazilian production does not completely meet demand.
Measures adopted by the
Brazilian authorities to
reduce deviation use for
tax exempt paper and BRL
depreciation helped
decreasing imports market
share
Coated Paper Production and Demand (k ton)
Imports share in the Brazilian Market (%)
Production Demand
Licenses Penalties
Average
R$/US$
1 Brazilian Government Program to control tax exempt paper imports
Source: Bracelpa
1.86 1.98 2.05
21
Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
Technical support in each international office:
China, Switzerland and USA
80% of total sales with long term contracts
More than 150 active clients
Strategic long-term partnerships with clients:
Logistics
Technology
Pre and post sale technical assistance
Strategic focus on high value added segments
22%
36%
30%
2%
10%
29%
38%
23%
7%
261 297 363 398
1,519 1,310 1,445 1,442
1,780 1,607
1,808 1,839
2009 2010 2011 LTM
22
3%
1
Pulp Assets
Sustainable and organic growth: presence in main international markets and strategic relationship with clients.
Sales Volume (k ton)
Printing &
Writing
Tissue
Special
Packaging
Sales per Segment – LTM1
Europe
Asia
North Am.
South/Central Am.
Brazil
Pulp Sales Destinations – LTM1
Domestic Market Exports
Others
1 Last twelve months ending on 06/30/2012
17
9
3
22
2012e
215
30
49
111
2012e
Pulp Organic Growth Fundamentals
Market pulp accounts for 14% of total fibers for paper production.
23 23
1 Bleached Eucalyptus Kraft Pulp | 2 Bleached Hardwood Kraft Pulp | 3 Bleached Softwood Kraft Pulp | 4 Chemical Market Pulp
Source: Poyry (nov/2011) and PPPC (may/12)
Mill
ion t
on
Printing &
Writing
Tissue
Paperboard
Corrugated
Newsprint
Others
405
Production (MM ton)
Minerals
51%
49%
72%
28%
8%
8%
131
52
Virgin fiber
Recycled
190
183
Global
production of
paper
Total fiber
consumption
373
405
BSKP3
52
Others
BHKP2
BEKP1
Pulp and Paper Production Chain – 2012e
Integrated
pulp
Market pulp4
Market Pulp Demand opportunities:
1% reduction in recycled paper =
+1.9 MM ton/year of market pulp
1% reduction in integrated capacity =
+1.3 MM ton/year of market pulp
2% growth in paper consumption =
+1.0 MM ton/year of market pulp
Pulp Organic Growth Fundamentals
Demand for paper and paperboard is forecasted to grow 42 million tons from 2010 to 2015
24 24 24
Paper and paperboard demand forecast until 2015
0
50
100
150
200
250
300
350
400
450
1995 2000 2005 2010 2015
Others1
Milh
ões d
e T
onela
das
Latin America1
Others Asia1
China1
Japan
Eastern Europe1
Western Europe
North America
CAGR: 2.1% p.a. Emerging economies: +4.3% p.a.
CAGR: 2.2% p.a. Emerging economies: +5.7% p.a.
1 Emerging economies includes Latin America, Asia (except for Japan), Middle East, Oceania, Africa and Eastern Europe
Source: Poyry (nov/2011)
Sack
20% 40% 100% 60% 80%
Pulp Organic Growth Fundamentals
Paper demand forecast is growing for grades that are Eucalyptus fiber users over the next years.
25 25 25
Main BEKP end-users
1.5
0.0
-1.5
3.0
4.5
-3.0
Uncoated
mechanical
News-
Coated
woodfree
Other
Grades1
Tissue Carton
board
Container board
CA
GR
20
11e –
20
16
e
(% a
.a.)
Uncoated
woodfree
Coated
mechanical
Paper demand forecast: CAGR (2011e – 2016e) 2.0% p.a.
1 Other grades includes special paper segment
Source: Poyry (nov/2011)
43 44 46 46 46 47 50 49 51 52 53
10 11 13
14 16 16
17 17
19 20
21
11 11
10 9 9
10 9 9 9 9
22 22 23
22 21
22 23
22 23 23
24
0
10
20
30
40
50
60
0
5
10
15
20
25
30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mercado BEKP Outros BHKP BSKP
Pulp Organic Growth Fundamentals
Eucalyptus pulp has replaced other short fibers and the actual price spread between hardwood and softwood should continue to favor this replacement.
26 26 26
Vo
lum
e b
y fib
er
typ
e
(mill
ion
to
ns)
CAGR BEKP: +9.5%a.a | Other BHKP: -2.5%a.a.
CAGR BEKP: +7.3% a.a. | Other BHKP: 0.0%a.a.
Bleached Market Pulp Demand Projections (2012e – 2015e)
To
tal M
ark
et V
olu
me
(millio
n to
ns)
1 Bleached Market Pulp | 2 Bleached Eucalyptus Kraft Pulp | 3 Bleached Hardwood Kraft Pulp | 4 Bleached Softwood Kraft Pulp
Source: PPPC (May/2012)
2 3 4 1
13
27
Brazilian Competitiviness Suzano is in the lowest cash cost region.
Cash Cost CIF / Europe (US$/ton)
Source: Hawkins Wright (Jul/2012)
652
E. Canada
641
Sweden
553
USA
546
France
516
Finland
491
Chile Japan
Russia
Japan
China
567
Canada
562
USA
519
Sweden
506
Finland
476
436
457
Iberia
398
Indonesia
390
Chile
375
Brazil
344
Int. West. Can
675
BC Coast
652
France
Low Cost High Cost High Cost
410
15.6 MM ton 9.5 MM ton 2.9 MM
ton 14.2 MM ton
Low Cost
Hardwood Softwood
652
28
Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
Maranhão Unit
State of the art facility technology and top tier suppliers contracted.
29 29 29
1. Wood yard
2. Cooking and Fiber lines
3. Dryer
4. Evaporation
5. Boiler
6. Lime kiln
9. Water treatment
10. Effluent treatment
7. Turbo generators
8. Energy distribution and substation
Conceptual engineering
Basic engineering
Detailed engineering:
BOP1 and infrastructure
Management of BOP1
implementation and
infrastructure
9
1 Balance of Plant
Fonte: Poyry and Suzano
8
3
2 4
5
1
6
10
7
2011 2012 2013
Infrastructure
Civil work
Erection
Commissioning
Start up
Phase II
PLANNING
Ongoing
Maranhão Unit Schedule
Track record of successfully executing projects on schedule, implementing business plans and meeting budgets.
30 30 30
Market study
Preliminary feasibility
study
Conceptual engineering
General planning
Purchases
Construction and
assembly
Commissioning
Phase IV
Start up
4Q13
Forestry
Purchase of land, licenses, permissions and
plantations
Industrial, port, railway
Environmental licenses
Conceptual and basic engineering
Phase I
BEGINNING
Concluded
Phase III
EXECUTION
Ongoing
4Q13
Maranhão Project
Plant Location Main Characteristics
In 4Q13, Suzano will start operating its Maranhão unit, one of the most modern in the world and with a
production capacity of 1.5 million tons/year of eucalyptus market pulp
Teresina
PARÁ
MARANHÃO
PIAUÍ
BAHIA
TOCANTINS
Imperatriz
Açailândia
Suzano Port
São Luis
Imperatriz
Ferro Carajás Railway- EFC
Norte Sul Railway
Site – Imperatriz Norte
EFC
Norte Sul
Porto Franco
Cidelândia
CEARÁ
MINAS GERAIS
GOIÁS
DF
ESPÍRITO
SANTO
RIO GRANDE
DO NORTE
PARAÍBA
PERNAMBUCO
ALAGOAS
SERGIPE
FORESTRY
25 years of research in the region
Average yield of approximately 42m3/ha/year
Annual capacity of 15 million nursery seedlings
Long term and sustainable wood supply
INDUSTRIAL
Initial production scheduled for 4Q13
Installed capacity of 1.5 million tons/year of eucalyptus market
pulp
100MW in excess energy supply available for sale
Industrial plant leader in technology equipments, as supplied by
the most recognizable contractors in the world
LOGISTICS
Inbound logistics based on existing highways
Outbound logistics through local railways
Exportation through the port located in the region of São Luís
(MA)
Strategically positioned for pulp distribution for the European and
North American markets
MANAGEMENT
Professional management with superior project execution
expertise
31
Operational Reliability
More operational flexibility: stability and smaller costs
Lower downtime:
Metso Service Center
Learning curve guaranteed in the contract
Supplier support: operational team for 18 months after the
start-up
Outbound Logistics: 100% railway without load transshipment
outbound and with proximity to the main markets (Europe and
USA)
Mill located in a large city
Easier labor force recruitment
Fiscal incentives: 75% reduction in income tax rate for 10 years
Business Differentials Status of the Project
57% of forests planted
97% of suppliers contracted
45% of overall physical
construction reached
76% of infrastructure
construction completed
65% of the equipment
manufacturing completed
Assembly of metallic
structure for boilers has
been ongoing since May/12
The Maranhão unit is in execution phase and a great part of its milestones has already been concluded
Infrastructure
32
Maranhão Project
Logistic Solution
Railway transportation from the plant to the port and strategic located to export to the main pulp markets.
33 33 33
Port in the São Luís1 region
500 Km through
Carajás railway
100 Km through
Norte-Sul railway
Capacity: 10 production
days
The train will go through
the warehouse, allowing
for loading from both
sides
Transit time: around 4 days shorter
to main destinations compared to
ports in the South East of Brazil
Maranhão Unit Model
Warehouse
1 Illustration
34
Funding:
BNDES: R$2.7 billion, 12 years to pay and 3-year grace period
Mandatory convertible debentures: R$1.2 billion
Funding for the imported equipment supported by foreign credit agencies (ECA’s among others)
Cash flow generation
Capex (R$ million) 2009 2010 2011 1H12 Total
Forest 193 159 177 44 573
Industrial 0 4 664 838 1,505
Total 193 162 841 882 2,078
Capex Long term financing, grace period and competitive cost.
Maranhão Unit
Estimated Forest Capex US$ 575 million
Estimated Industrial Capex1 US$ 2.3 billion
1 Figures consider exchange rate of R$1.80/US$
35
Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
36 36 36
FuturaGene Biotechnology is on the right side of Sustainability.
Base Case: Suzano Pulp and Paper
907
k ha
Less land utilization
Lower forest formation
cost
Innovating for sustainability
Less land utilization
Less chemical expenditure
Higher carbon sequestration
2015e Planted Area
Necessidade de terras (ha)
Pro
du
tiv
ida
de
Yield Increase
1% 5% 10% 15% 20% 30% 50%
-9 k ha -45 k ha -90 k ha -136 k ha -181 k ha -272 k ha -454 k ha
Lan
d
uti
liza
tio
n
37 37 37
FuturaGene is present in 60% of the eucalyptus market
Well positioned to be world leader in forest biotechnology
India
3.9 MM ha
Brazil
4.5 MM ha
China
3.0 MM ha
South Africa
0.6 MM ha
Thailand
0.5 MM ha
Global Eucalyptus Forest Map
Source: GIT Forestry Consulting, http://git-forestry-blog.blogspot.com
FuturaGene Biotechnology is on the right side of Sustainability.
Upside: new business
38
Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
Project update
Protocol signed with Maranhão government
Ongoing activities:
Forest: Specific clones selected, dedicated plantation (Energy Forests)
Engineering with Promon and Stolberg (Canadian)
Commercial: Advanced negotiation of final contracts with clients
Dedicated team
Suzano Renewable Energy
Forestry competency enables new business opportunities.
39 39 39
3 units: 1 MM ton/year each
Estimated start-up: 2014
Funding: definition of the capital structure
World leader
Initial focus on the European market
Wood pellets for energy, produced from renewable energy-oriented forests
40
Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
1,377 1,663 1,622 1,570
1,609 2,018 2,013 1,980
2009 2010 2011 UDM
1,426 1,560 1,858 1,933
918 936 978 1,014
2,344 2,496 2,836 2,947
2009 2010 2011 UDM
1,161
1,725 1,302 1,204
2009 2010 2011 UDM
1,657 1,915 2,248 2,343
2,295 2,599
2,600 2,584
3,952 4,514
4,848 4,927
2009 2010 2011 UDM
2,896 2,763 3,143 3,226
29.4%
38.2%
26.8% 24.4%
41 41 41
1,780 1,607 1,808 1,839
1,116 1,156 1,335 1,386
1.84 2.00 1.76 1.67 2.00 1.76 1.67 1.84
1 1
1 1
Results Net Revenue and EBITDA
EBITDA (R$ million) and EBITDA Margin (%) Net Revenue (R$ million) and Volume (k ton)
Paper: Revenue (R$ million) and Volume (k ton) Pulp: Revenue (R$ million) and Volume (k ton)
Average
R$/US$ Average
R$/US$
Domestic Market Exports Volume
Domestic Market Exports Volume Domestic Market Exports Volume
1 Last twelve months ending on 06/30/2012
Liquidity Horizon of 60 months1
Strong pro-forma¹ cash: R$ 4.2 billion
Pro-forma¹ Net Debt / EBITDA: 4.5x
Projects Financing: grace periods and gradual
amortizations aligned with the projects cash flow
The Company remains focused on initiatives
aimed at reducing its leverage and improving its
capital structure
42 42 42
Debt
Lengthening of debt profile with the carry out of R$ 1.2 billion and the structuring of financial shield package
42
Gross Debt (R$ million)
9,308 9,607
(158) (87)
544
Gross Debt(Mar/12)
Funding /Amortizations
Interest ForeignExchangeVariation
Gross Debt(Jun/12)
Amortization Schedule (R$ million)
1,017 929 1,145
741
1,762
958
3,055
6M12 2013 2014 2015 2016 2017 2018onward
Notes: 1 Pro-forma data includes the Primary Equity Offering funding.
Debt Profile Evolution
Short
Term
15%
Long
Term
85%
Short
Term
28%
Long
Term
72%
1Q12 2Q12
43 43
1.6x 1.6x
2.7x
3.8x 3.7x 3.7x 3.5x
2.0x
4.2x 4.5x
1,647 1,616
2,475
3,919 4,285
5,459
4,111
3,421
5,470 5,386
1,000 1,039 913 1,040 1,146 1,469
1,161 1,725
1,302 1,204
2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM1
Debt
Leverage can increase temporally due to the growth projects capex, but amortizations are in line with cash flows from these projects.
1 Last twelve months ending on 3/31/2012
Note: The amounts of 2009, 2010 and LTM include the adjustments introduced by the IFRS standards
Net Debt LTM pro-forma , includes the Primary Equity Offering funding (R$ 1.5 billion).
Net Debt (R$ million) EBITDA (R$ million) Net Debt/EBITDA (x)
Ripasa
Acquisition
Implementation
of
Mucuri Project
Start up of
line 2 at
Mucuri
World
economic
crisis
Conpacel
Acquisition
Primary
Offer
Bahia Sul
Incorporation
Primary
Equity
Offering
0.5 0.5
3.0
0.9
2012e 2013e
3.5
1.4
44
Investment Plan
Growth projects will be developed with discipline, respecting Company’s financial solidity.
Estimated Capex (R$ billion)
Sustain Growth
Note: 2012 figures do not include investments on Suzano Renewable Energy. The
investment is conditional on the capital structure definition.
Em
Es
tud
o
Growth Investment Plan:
No change in the Maranhão project investment
Piauí forest investment reduced to the minimum
amount necessary for sustain
As for the Suzano Renewable Energy investment
in 2012, Suzano Pulp and Paper will contribute
existing land and forest
45
Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
09 | Financial Shield
46
R$ 1.5 BILLION EQUITY OFFERING
Issuance of 119,605,766 ordinary shares, 246,221,728 class A
preferred shares and 14,720 class B preferred shares
R$ 1.2 BILLION DEBT RESTRUCTURING SIGNED
Debt with amortizations in 2012, 2013 e 2014 were renegotiated
reducing amortization volumes, and releasing cash flow for expansion
STAND-BY FACILITY
Availability of a stand-by facility of up to R$ 2.0 Billion
Credit line will be available until 1Q2014
FUNDING OF MARANHÃO PROJECT
R$ 2.7 bi credit line (R$ 2.3 bi still not in use) with BNDES
Negotiations in progress for up to R$750 million with the Export
Credit Agency (ECAs)
SALE OF NON-CORE ASSETS AND/OR PARTNERSHIPS
2
3
4
5
6
The start up of Maranhão Unit (capacity of 1.5 million tons/year of market pulp and energy surplus of 100 MW),
expected for 4Q13, will start the Company’s deleveraging process
Additionally, several operational initiatives are being implemented:
(i) General adjustments on the cost structure and (ii) Review of the logistics and industrial processes
Financial shield
R$ 2.8 BILLION CASH
Cash position of the company as of 30th June 2012 1
Financial Shield Package
The Offering is one of the components of a comprehensive package which brought the comfort needed in terms of cash flow until the end of 2016
2.8
0.6
(3.8)
(1.0)
1.0
2.5 2.5
4.5 4.5
(2.2)
(3.3)
(2.3)
2.1
1.5
2.0
Cash Jun 12 Debtamortization
andinterests
Capex BNDES EBITDA¹ EquityOffering
Cash Dec 13 Stand-by Cash Dec 13+ Stand-by
47
The EBITDA is the main variable component of the Company’s cash flow and, if it varies substantially,
the cash flow position will remain positive
Notes: 1 Based on the average of the EBITDA of the years of 2010 and 2011, excluding non-cash and non-recurring items of the EBITDA in 1H12
Cash Inflows & Outflows 2012/2013 (R$ billion)
Financial Shield Package
The Company has a comfortable cash position in order to afford Maranhão Project investments through 2012 and 2013
48
Capital Increase
Financial planning prioritizes liquidity and reduces refinancing needs
Amortization Schedule (R$ billion)
Not considering the Company’s operating and investing cash flows, as well as interest expenses, Suzano’s estimated
cash position as of December/2013 could cover most of the debt amortization
2014-2016: Total of R$ 4.6 billion
4.5
(1.1) (0.7)
(2.8)
(2.0)
(3.1)
Cash (dec/13)+Stand-by
2014 2015 2016 2017 2018+
Why to invest in Suzano?
49 49 49 49
High Level of Own
Energy Production
Low production
costs
Extensive
know-how and
high planted
forest
productivity
Balanced mix
of products
Experienced
Management
Team
Strong
operating
cash flow
Investor Relations
50 50 50 50
Investor Relations
www.suzano.com.br/ir
Board of Directors Experienced and active
51 51 51 51
Experience of 36 years in the pulp and paper industry. CEO of Suzano Holding S/A, Chairman of the Board of Directors of Suzano
Pulp and Paper S/A and Coordinator of the Management Committee. CEO of IPLF Holding and Nemopar Investimentos Ltda. CEO
and Vice President of the Board of Directors of Polpar S/A.
Experience of 35 years in the pulp and paper industry. Vice President of FIESP. Member of BRACELPA’s and IBEF’s Advisory
Board. Chairman of the Board of Directors for the Brazilian Committee of Britain Brazil Business Forum.
Executive Vice President of Suzano Holding S/A. Coordinator of Sustainability and Strategy Committee and member of Audit
Committee and member of the Compensation Commission of the Board of Directors; Former president of the board and CEO of
Hoechst of Brazil. Board of Directors member of Lojas Renner S/A, RBS Group, Cyrela Brazil Realty, OGX and Chemical Group
DSM/Holanda.
Experience of 31 years in the pulp and paper industry. Member of the Board and the Committee of Sustainability and Strategy;
Director of Premesa, Corporate VP of Suzano Holding and IPLF Holding, Executive Officer of Nemonorte and Vocal.
Senior partner of Machado, Meyer, and Sendacz Opice Lawyers and former member of the Board of Directors of OAB Brazil.
President of CESA. Former Legal Adviser and Chairman of the Legislative Committee of the American Chamber of Commerce and
Director of ABRASCA’s Legislative Committee. (Independent)
Member of Audit Committee. Senior partner of Integra Associates. Member of Gerdau S/A’s Board of Directors, Metalúrgica Gerdau,
Sao Paulo Alpargatas, Localiza, and Johnson Electric (Hong Kong); Board Member of Bunge Brazil and Alcoa Brazil. Oscar was
President of Bunge International and Managing Partner in Booz-Allen & Hamilton. (Independent)
Coordinator of Suzano Pulp and Paper’s Audit Committee. Member of the Board of Directors of TAM Airlines and TAM Aviação
Executiva. Former CEO of TAM Airlines and WTorre. (Independent)
Co-Chairman of the Board of Directors of BRF-Brasil Foods. Board member of WEG S/A, Ultrapar Participações S/A and Iochpe-
Maxion S/A. Former CEO of Perdigão Group. Former Director of the National Bank for Economic and Social Development - BNDES,
and General Director of Corporate Group Iochpe-Maxion Industrial Holding. (Independent)
DAVID FEFFER
President
DANIEL FEFFER
V. President
BORIS TABACOF
V. President
CLÁUDIO SONDER
ANTONIO MEYER
OSCAR BERNARDES
MARCO BOLOGNA
NILDEMAR SECCHES
JORGE FEFFER
Experience of 32 years in the pulp and paper industry. Member of Sustainability and Strategy Committee, Chairman of Polpar’s
Board of Directors, President of Premesa, Corporate VP of Suzano Holding, IPLF Holding and Nemopar, President of Nemonorte,
Chairman of Ecofuturo Institute’s Board of Directors.
Chief Executive Officer, also responsible for Strategy Department, 6 years at Suzano. Member of the Board of Director Member
of Archer Daniels Midland Company and Marfrig Frigoríficos. Vice President of BRACELPA. Former member of the Board of Director
of SEBRAE, Gradiente, Cecrisa and Amcham. Former Chaiman of Ford Brasil and Ford Latin America, Itamarati Group, Ferronorte
and Cecrisa and former Executive of Petrobras and the Federal Government. Mechanical Engineer graduated at UFRJ.
Chief Operation Officer, 5 years at Suzano. Has worked as Expansion Project Director of Mucuri Unit. Former executive of Dow
Chemical Company, in Brazil, USA and Europe. Post-Graduated in Business Administration at FIA/USP.
Pulp Business Unit Executive Officer, joined Suzano in 2009. Former CEO of European operations of RGM Group and
Commercial Director of Aracruz. Graduated in Business Administration at Fundação Getulio Vargas (FGV).
Paper Business Unit Executive Officer, 6 years at Suzano. Former Executive Manager of Suzano’s Pulp Business Unit and Sales
General Manager for Latin America at General Electric in the Industrial Systems Division. MBA degree from Ibmec-SP. Electrical
Engineer from UFMG.
Human Resources Executive Officer, 2 years at Suzano. Former Human Resources Manager for Aviation Operations in General
Electric in Brazil and abroad, Global HR Director for Information Technology in the United States and HR Director for Mexico and
Latin America. Former Executive of Carioca Engenharia, CR Almeida, Comlurb and Bureau Veritas. Post Graduated in Business
Administration at COPPEAD-UFRJ.
Executive Officer, responsible for the Forestry Business Unit. In 2005, he took the position of Executive Superintendent Officer of
Conpacel. During his career, he has served as Planning Manager at Indústrias de Papel Simão, Industrial Superintendent at
Votorantim Celulose e Papel S.A. (currently Fibria Celulose S.A.), and Executive Officer at Ripasa S.A. Celulose e Papel. Mr. Bassetti
wrote three books on the topic of People and Environment Management, and gives lectures on motivation, leadership and
entrepreneurship. He also occupies chair no. 39 at the Literature Academy of Piracicaba.
BERNARDO
SZPIGEL, 65
Executive Officers Broad experienced management team
ANTONIO MACIEL NETO
ALBERTO MONTEIRO
ALEXANDRE YAMBANIS
ERNESTO POUSADA
CARLOS ANIBAL
CARLOS GRINER
PAULO BASSETTI
52
Chief Financial Officer, also responsible for Investor Relations Department. Has worked as Chief Financial Officer at CSN and as
member of the Board of Director of Congonhas Minérios, NAMISA, Transnordestina S.A., among others. At Banco do Brasil, has
worked as Chief Financial Officer of Conglomerado BB S.A., CEO of BB DTVM and President of BESC DTVM. Graduated in Business
Administration from FCPE/RJ, MBA degree in Corporate Finance from FGV and Post graduated in Banking from FEA/USP.