Post on 12-Jan-2015
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4Q10 Consolidated ResultsMarch 2nd, 2011
02/10
Pulp
Paper
• Global market pulp production of 10.8 MMt in 4Q10: -1.1% vs. 3Q10 and +3.8% vs. 4Q09
• Global pulp sales volume (million ton):
4Q10 4Q10 x 3Q10 4Q10 x 4Q09
Market Pulp: 10.8 +6.3% +4.2%
Eucalyptus: 3.6 +6.3% -0.4%
• Global inventories at 30 days1 (Dec/10): below the historical average of 33 days
• Price decrease in 4Q10: US$ 849/ton (FOEX, December, CIF Europe)
• Market pulp shipments to China in December/10:
Market pulp: 984 thousand tons (+40.8% vs. Nov/10 and +59.0% vs. Oct/10)
Eucalyptus: 311 thousand tons (+38.8% vs. Nov/10 and +148.8% vs. Oct/10)
1PPPC
Domestic demand2(kton): 4Q10 4Q10 x 3Q10 4Q10 x 4Q09 Printing & Writing 547.3 +2.2% +7.0%Paperboard 150.0 -8.4% -1.8%
• Brazilian exports accounted for 36.9% of total sales in 4Q10 compared to 34.2% in 3Q10
• Increase of P&W paper imports (25.6% vs. 25.4% in 3Q10)
• Demand at the main P&W markets in 4Q101:
Western Europe: +0.4% vs. 3Q10 and -0.8% vs. 4Q09
North America: -4.3% vs. 3Q10 and -2.5% vs. 4Q09
Latin America: +0.8% vs. 3Q10 and +11.0% vs. 4Q09
4Q10 Highlights – Pulp and Paper Markets
2Bracepla
03/10
Pulp Business Unit
• Sales: 411.7 thousand tons in 4Q10:� 5.7% higher than 3Q10� 0.2% lower than 4Q09
• Average net price in 4Q10 (domestic and exports) of US$717.8/ton, -4.1% vs. 3Q10. In R$:
� 6.9% lower than 3Q10� 22.4% higher than 4Q09
• Net revenue of R$501.6 million:� 1.6% lower than 3Q10� 22.1% higher than 4Q09
Pulp Sales (ktons) Pulp Sales Destination
411.7 thousand tons 389.5 thousand tons
4Q10 3Q10
04/10
Paper Business Unit
Paper Sales (ktons) Paper Sales Destination
• Sales volume of 317.0 thousand tons in 4Q10:
4Q10 x 3Q10 4Q10 x 4Q09
� Printing & Writing +15.1% +6.5% � Paperboard -3.2% -8.4% � Average paper price (domestic) +0.1% +8.6%
• Domestic sales: 53.9% of total sales in 4Q10
• Exports average net price:
4Q10 x 3Q10 4Q10 x 4Q09
� In US$ -2.0% +17.3%� In R$ -4.9% +14.5%
317.0 thousand tons 285.4 thousand tons
4Q10 3Q10
05/10
Operational Performance
• EBITDA margin of 31.7%:� 3.5 p.p. lower than 3Q10� Non-recurring items of R$ 14.8 million
• Net income of R$251 million
• Pulp cash cost ¹ 5.9% lower than 3Q10:� Lower wood costs� Higher chemicals’ cost� Lower fixed cost
Pulp cash cost¹ (R$/ton)
Highlights
1 Mucuri Unit
Net revenue breakdown
06/10
Debt and leverage
1All amounts in the table above include the adjustments introduced by the IFRS standards.
Debt Breakdown1 - R$ Million December-10 September-10 December-09
Gross Debt 7,156 7,476 6,644
(-) Cash and Cash Equivalents -3,735 -3,625 -2,533
Net Debt 3,421 3,850 4,111
Net Debt / EBITDA 2.0x 2.2x 3.5x
Amortization (R$ million) Net debt vs. Net debt/ EBITDA
07/10
Pulp
Paper
• Global market pulp production of 41.7 MMt1 in 2010 (+6.4% vs. 2009)
• Global pulp sales volume (MMt):
2010 2010 x 2009
Market Pulp: 41.0 +4.8%
Eucalyptus: 13.8 -2.5%
• Global inventories at 30 days1 (Dec/10) vs. 27 days1 (Dec/09)
• BHKP list price1: US$847/ton in 2010 vs. US$565/ton in 2009 (+49.9%)
• Market pulp shipments to China in 2010:
Market pulp: 7.1 MM tons (-17.9% vs. 2009)
Eucalyptus: 2.3 MM tons (-36.6% vs. 2009)
1PPPC
Domestic demand2(kton): 2010 2010 x 2009Printing & Writing 1,978.9 +10.2% Paperboard 609.7 +13.4%
• Brazilian exports accounted for 48.9% of total sales in 2010 compared to 52.1% in 2009 (P&W
+ Paperboard)
• Increase of P&W paper imports in 2010 (24.5% vs. 18.8% in 2009)
• Demand at the main P&W markets in 20101:
Western Europe: +3.5% vs. 2009
North America: +3.6% vs. 2009
Latin America: +12.4 vs. 20092Bracepla 3FOEX, CIF Europe
2010 Highlights – Pulp and Paper Markets
08/10
• Demand recovery in pulp and paper markets
� Pulp: prices 57.8% higher in 2010
� Paper: average price increased by 2.7% compared to 2009 – highlight for paperboard (+8.1%) andhigher domestic market participation (+2.6%) in the sales mix
• Net revenues record of R$ 4.5 billion (+14.2%)
• Operational margins recovery:
� EBITDA of R$ 1.7 billion, 46.7% higher than 2009
� Net income of R$ 769 million vs. R$ 947 million in 2009 (exchange rate variation and IFRS)
• Solid financial position
� Adequate debt profile and competitive debt cost: duration of 43 months
� Leverage reduction: from 3.5x in Dec/09 to 2.0x in Dec/10
� US$ 650 million in Senior Notes rated Baa3 (Investment Grade, Moody’s) and BB+ (Standard & Poor’s)
• Consistent growth strategy
� Suzano 2024
− FuturaGene and Suzano Renewable Energy
− MA and PI projects’ update
− Conpacel and KSR acquisitions
� Sale of non strategic forestry assets
2010 Highlights
09/10
2010 Highlights
R$ million, except where otherw ise indicated 2010 2009 2010 x 2009
Net Revenue 4,514 3,953 14.2%
Exports 2,599 2,295 13.2%
Domestic Market 1,915 1,657 15.5%
EBITDA 1,703 1,161 46.7%
EBITDA Margin (%) 37.7% 29.4% 8.4 p.p.
Net Financial Earnings (loss) (252) 696 -136.2%
Net Income (loss) 769 947 -18.8%
Earnings (loss) per Share (R$) 2.07 2.86 -55.0%
Net Debt 3,421 4,111 -16.8%
Net Debt / EBITDA 2.0 3.5 -1.5 p.p.
End of Period Exchange Rate (R$/US$) 1.67 1.74 -4.3%
Average Exchange Rate (R$/US$) 1.76 2.00 -11.9%
Operational Data (tsd tons)
Pulp Sales 1,607 1,780 -9.7%
Paper Sales 1,156 1,116 3.6%
Mkt. Pulp Production 1,617 1,590 1.7%
Paper Production 1,128 1,088 3.6%
Update: Suzano 2024
Operational Excellence in Paper Pulp Organic Growth: MA
Suzano Renewable Energy FuturaGene
� Payment of Conpacel on 01/31/2011
� Synergies net present value: R$ 300 million
� Suzano’s 2010 EBITDA from Conpacel: ~R$
250 million
� BNDES financing: R$ 2.7 billion
� Mandatory convertible Debentures: R$ 1.2
billion
� Board of Directors’ approval for:
- MA unit’s construction
- Agreements with Metso
and Siemens
� Definitive contracts: negotiation at final stage
� Land acquisition for the 1st mill: major part
already completed
� Basic engineer in progress
� Capital structure being
defined
� Progress in the setup of a reasearch
center (China), which will be dedicated to
the development of eucalyptus, poplar
and other species’ GMOs
� Foundation of FuturaGene
Brazil, that will concentrate all
of the group’s biotechnologies
activities in Brazil
� Start-up anticipation: 04/30/13
� 41 thousand hectares planted
10/10
� Conclusion of Limeira Unit’s
integration (previous
Conpacel)
� Conclusion of KSR’s
acquisition
Investor Relationswww.suzano.com.br/ri+55 11 3503-9061ri@suzano.com.br