Apresentação do PowerPoint · Project 5.1 Capacity of 5.1 million tons in 2018 Industrial...
Transcript of Apresentação do PowerPoint · Project 5.1 Capacity of 5.1 million tons in 2018 Industrial...
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G R O U P M E E T I N G
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Paper Business
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Paper market performance in 2015
Brazilian demand for paperboard and P&W paper:
-14% vs 2014
Suzano’s sales in Brasil: -11% vs 2014
Market share increase in coated paper due to
import reduction
Paper sales in export market: +4% vs 2014
Price increase: +7% in Brasil vs 2014 and +30%
on exports
SALES (‘000 TONS)
389 403
934 827
2014 2015
Exports Domestic
1,322 1,230
-7.0%
PRODUCTION (‘000 TONS)
1,301 1,209
-7.0%
2014 2015
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2015 Improvements
Consolidation of Suzano+: paper direct sales program
Expressive growth on direct sales
Higher revenue mix: +30 thousand clients
Phone calls: 200 thousand per month
Closer relationship with clients
Improved variable compensation program
Development and capacitation programs for the sales team
Digital Platforms and higher mobility for the sales team
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2016 Outlook
No expectations on Brazilian demand growth
Opportunities: Olympics, elections and National Textbook
Program
Paper price increase in Brazil to international level
Coated paper market share increase in Brazil
Increase in exports
Continuity of Suzano+ Program
Improvement on service level: more value to clients
Suzano will seize the improvements implemented in 2015
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WHAT’S NEXTC A S H F L O W A L L O C A T I O N
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CAPEX PLAN EXECUTION
C A S H F L O W
A L L O C A T I O N
DEBT REDUCITION AND CONTINUITY
OF THE DELEVARAGING PROCESS
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Debt ProfileDeleveraging allows strategy execution
Gross Debt: R$14.7 billion
68% in foreign currency¹ and 32% in BRL
Net Debt: R$12.3 billion
75% in foreign currency¹ and 25% in BRL
Maturity: 88% in long term
Note: Debt in BRL as percentage of CDI
Average Cost of Debt (%)
4.2%
4.7%
4.8%
84.4%
91.2%
94.4%
Dec/15
Dec/14
Dec/13
BRL USD
8
4.8x3.7x 3.1x 2.9x 2.3x 2.3x
5.2x 4.1x 3.9x 3.3x 3.0x 2.7x
Net Debt (R$ and US$ billion) and Leverage (x)
9.2 10.1 11.4 11.0 12.7 12.3
3.9 3.8 3.6 3.5 3.2 3.1
Dec/13 Dec/14 Mar/15 Jun/15 Sep/15 Dec/15
Net Debt R$ Leverage R$ Net Debt US$ Leverage US$
¹Considers adjustment with derivatives
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CAPEX PLAN EXECUTION
C A S H F L O W
A L L O C A T I O N
DEBT REDUCITION AND CONTINUITY
OF THE DELEVARAGING PROCESS
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Project 5.1
Capacity of 5.1 million tons in 2018
Industrial investment in Imperatriz and Mucuri mills
Forest base increase and average distance reduction
Cash Cost Reduction: lower inputs consumption and
fixed cost dilution
Total Estimated Investment: R$ 1.14 billion; Estimated
IRR of 47%
Pulp and Paper Capacity (MILLION TONS)
Investments in retrofitting and debottlenecking to reach the
optimum structural cost
4.84.9
5.1
2016 2017e 2018e
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Project 5.1
Optimum structural cash cost will generate more shareholder value
US$186/ton
in 4Q15 US$150/ton
in 2018US$125/ton
in 2021 - 2022
Note: Exchange rate of R$3.80 used in the analysis
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ADJACENT BUSINESS
First genetically modified clone
approved by CTNBio for
commercial purposes
Potential to increase productivity
by nearly 20%
First company in the world to use
hardwood to produce fluff
Capacity to replace up to 70% of fluff
to produce sanitary pads and up to
30% for diapers
Replacement of petrochemicals with
renewable source
Can be used in several high value-
added applications
Jumbo rolls production for
companies in the tissue segment
and/or finished product
Operational and logistics
competitiveness
Monetization of ICMS credits
FuturaGene Fluff
TissueLignin
12
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CAPEX PLAN EXECUTION
C A S H F L O W
A L L O C A T I O N
DEBT REDUCITION AND CONTINUITY
OF THE DELEVARAGING PROCESS
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Improvement on the return to
shareholders
100122
270300*
2013 2014 2015 2016
Dividends (R$ Million)
*Proposed
Possibility to pay
additional dividends
according to cash
generation
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BETTER EVERYDAY
STRONG AND KIND