3Q15 Results Presentation Disclaimer The statements in this - - PowerPoint PPT Presentation
PULP AND PAPER 3Q15 Results Presentation 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
PULP AND PAPER
2
3
4
Record-high Adjusted EBITDA of R$1.48 billion in 3Q15, margin of 49% Lowest level of SG&A expenses as a ratio of net revenue: 7.4% in 3Q15 New round of liability management Net debt/Adjusted EBITDA ratio of 3.0x Interim dividends of R$120 million OPERATING CASH GENERATION¹ LTM² (R$ billion)
1.1 1.2 1.2 1.3 1.5 1.9 2.2 3.0 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15
Note: (1) Operating cash generation in the last 12 months considers Adjusted EBITDA less sustain CAPEX
(2) Last 12 months
5
804 929 2,161 2,530 328 315 979 926
1,132 1,245 3,139 3,456 3Q14 3Q15 9M14 9M15 Pulp Paper
Low global BHKP inventories Growing pulp demand Production resumed at line 1 of Mucuri mill after downtime Sales (‘000 tons) Production (‘000 tons)
860 889 2,022 2,551
340 335 948 903
1,200 1,224 2,969 3,454 3Q14 3Q15 9M14 9M15 Pulp Paper
Increase in paper exports Brazil’s paper demand: -14% yoy Dumping taxes to be revised in January/16
6
37% 51% 504 560
460 480 500 520 540 560 580 0% 20% 40% 60%
Consolidated Cash Cost Ex-Maintenance Downtime (R$ / ton)
Average distance of market wood in Mucuri (Km) Market wood in Mucuri (%)
2Q15 3Q15 626 668 56 (14) 2Q15 Wood Other 3Q15
7
Note: (1) last twelve months
COGS LTM¹ (R$/ton) SG&A / Net Revenue LTM¹ (%) Adjusted EBITDA Margin LTM1 (%)
6,748 7,265 8,012 8,686 9,692 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 9.8% 9.5% 9.0% 8.8% 8.5% Sep/14 Dec/14 Mar/15 Jun/15 Sep/15
Net Revenue LTM¹ (R$ million)
1,293 1,284 1,265 1,285 1.316 Sep/14 Dec/14 Mar/15 Jun/15 Sep/15 32.1% 33.8% 36.1% 38.4% 43.3% Sep/14 Dec/14 Mar/15 Jun/15 Sep/15
+1.8% .8%
Inflation
: +9.1% .1%
8
1,260 1,349 1,459 1,631 1,781 1,944 2,057 2,169 2,452 2,895 3,333 4,194
DEC/12 MAR/13 JUN/13 SEP/13 DEC/13 MAR/14 JUN/14 SEP/14 DEC/14 MAR/15 JUN/15 SEP/15
641 670 715 772 820 863 899 950 1,036 1,154 1,233 1,378
DEC/12 MAR/13 JUN/13 SEP/13 DEC/13 MAR/14 JUN/14 SEP/14 DEC/14 MAR/15 JUN/15 SEP/15
Increase se of +115% Increase se of +233%
9
Suzano Digester: Completed in 2Q15 Limeira Digester: 4Q15 Energy Efficiency Programs: To be concluded in 4Q15 Retrofitting of Harvesting Equipment: Conclusion in 4Q15 Forest Logistics (light-duty trucks): 4Q15 Biomass Boiler in Limeira: 1Q16 Fluff: Start-up in December/15
0.8 1.1 0.5 0.7
1.3
9M15 2015e Retrofitting Sustain
1.8
10
Liability Management surpasses R$4 billion in 2015 and enables reduction in cost of debt
84.2% 91.2% 94.4% Sep/15 Dec/14 Dec/13 4.0% 4.7% 4.8% 5.2x 4.1x 3.0x 4.8x 3.7x 2.3x Dec/13 Dec/14 Sep/15
BRL USD
Note: Debt in BRL as a percentage of CDI
BRL USD
11
12
Maximizing returns on our assets and cash generation Benchmark in operating efficiency
Increase profitability through innovative, paradigm-shifting businesses
Decrease the industry’s return variability
13
14
Capacity of 5.1 million tons in 2018 Industrial investment in Imperatriz and Mucuri mills Forestry basis expansion and average distance reduction Lower cash cost: lower chemicals consumption and fixed cost dilution Total estimated capex: R$1.14 billion with estimated IRR of 47% 2016e: R$510 million 2017e: R$585 million 2018e: R$45 million Project conclusion scheduled for 4Q17 with gradual increase in capacity
15
16
Production of jumbo rolls for companies in the industry and/or finished product Priority in establishing industrial partnership with our clients Faster market growth in Brazil’s North/Northeast regions Structural and definitive solution to monetize ICMS tax credits Modern and integrated plants in Imperatriz and Mucuri Production capacity of 60k tons in each unit Total estimated capex: R$425 million with IRR of 81%
2016e: R$275 million 2017e: R$100 million 2018e: R$50 million
Start up: 3Q17 in Imperatriz and 4Q17 in Mucuri
17