0 4Q13 Results Presentation
0 4Q13 Results Presentation
1
Disclaimer
Certain statements in this presentation may constitute
projections or forward-looking statements. Such statements are
subject to known and unknown risks and uncertainties that could
cause the expectations expressed to not materialize or the
actual results to differ materially from the expected results.
These risks include changes in future demand for the
Company’s products, changes in factors that affect domestic
and international product prices, changes in cost structures,
changes in the seasonality of markets, pricing actions by
competitors, foreign currency fluctuations and changes in the
political and economic environments in Brazil, in emerging
markets or internationally.
2
24.3% 25.3% 27.3% 29.7% 31.3%
2013 Highlights
Adjusted EBITDA LTM (R$ million) and Adjusted EBITDA Margin (%)
1,260 1,349 1,459 1,631 1,781
Record-high Adjusted EBITDA of R$543 million in 4Q13
Maranhão Unit start up on-schedule
Reduction of 3.6% in SG&A expenses compared to 2012
Increase in cash cost below inflation in the period
Dec/12 Mar/13 Jun/13 Sep/13 Dec/13
Significant improvement in profitability
3
Pulp
Production (‘000 tons) Sales (‘000 tons)
1,876
1,932
2012 2013
1,847 1,895
2012 2013
Operational efficiency gains supported pulp production growth of 3%
4
Paper
Production (‘000 tons) Sales (‘000 tons)
1,311 1,293
2012 2013
Administrative downtimes – lower production volume in 2013
Better paper sales mix – 69% of sales directed to the domestic
market in 2013
Price increases implemented over the year
1,347 1,312
2012 2013
Sales focus in the domestic market, with geographic concentration in Americas
5
Results
Net Revenue (R$ million) Cash Cost * (R$/ton)
5,192
5,689
2012 2013
Net revenue growth of 10% compared to 2012
Increased wood costs due to the supply mix and the higher average
supply radius
2014 – higher wood costs at the Mucuri Unit
563 580
2012 2013
Cost increases below inflation in the period, despite the higher wood costs at Mucuri
Wood Chemicals FC
39
(17) (5)
* Ex-maintenance downtime
6
Results
Higher margin per ton due to the operational efficiency gains and adoption of matrix
budgeting
COGS LTM (R$/ton) Sales Expenses / Net Revenue LTM (%)
Adm. Expenses / Net Revenue LTM (%) Adjusted EBITDA (R$/ton)
1,261
Dec/12 Dec/13
1,279
Mar/13
1,276
Jun/13
1,278
Sep/13
4.8%
4.4%
Dec/12 Dec/13
4.6%
Mar/13
4.6%
Jun/13
4.6%
Sep/13
1,307
7.8%
6.6%
Dec/12 Dec/13
7.5%
Mar/13
7.3%
Jun/13
7.0%
Sep/13
395
555
Dec/12 Dec/13
424
Mar/13
466
Jun/13
516
Sep/13
7
Debt
Net Debt (R$ million) and Net Debt / Adjusted EBITDA (x)
Robust cash position: R$3.7 billion
Liquidity horizon: +60 months
Strong focus on deleveraging – higher EBITDA (additional production from
Maranhão) and cash flow
5.1x 5.0x 5.1x 5.1x 5.2x
6,381 6,794 7,483 8,344
9,187
Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Note: Excludes nonrecurring items
8
Biomass boiler at Mucuri Unit
Wood chipper at Limeira Unit
Harvesting fleet (2Q14)
Connecting Mucuri to the power grid
(2Q14)
Digester at Suzano Unit (2Q15)
Retrofitting Investments
In progress
Concluded
Investments in operational improvements to capture structural gains and cut costs
9
2014 Capex
Total estimated: R$1.75 billion
Higher capex in 2014 due to carryover of the investments in Maranhão
Sustain Maranhão Capex 2014e
R$1.00B
R$0.59B R$1.75B R$0.16B
Retrofitting
10
Maranhão Unit
Allocation of capacity will prioritize price discipline and profitability
Startup on schedule
Total investment 4.4% above budget
First export shipment made on February 26th
70% of sales already contracted
Estimated production:
2014: ~1.1 million tons
1Q14: 150,000 – 160,000 tons
11
Maranhão Unit
12 12