apresenta o de resultados 1q11) · 1q11 results may 12 th, 2011. general notice certain statements...
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1Q11 RESULTSMay 12th, 2011
General Notice
Certain statements in this presentation may constitute forward-looking statements. Such statements are
subject to known and unknown risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. These risks include changes in customer demand for the Company’s
products, changes in factors that affect the domestic prices for products, changes in costs’ structure,
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.
Agenda
Market Highlight – 1Q11
Pulp Business Unit
Paper Business Unit
Consolidated Results
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Market Highlights – 1Q11Pulp and Paper
� Global market pulp production of 11.0 MMt in 1Q11: +1.4% vs. 4Q10 and +9.1% vs. 1Q10
� Global inventories at 32 days1 (mar/11): below the historical average of 33 days
� Pulp price list stable in 1Q11: US$849/ton (march, CIF Europe)
� Global market pulp volume sold:
� Market pulp shipments to Europe in 1Q11:
― Market Pulp: 4,049 tsd ton (+4.5% vs. 4Q10 and +4.3% vs. 1Q10)
― Eucalyptus: 1,750 tsd ton (+11.6% vs. 4Q10 and +10.6% vs. 1Q10)
� Market pulp shipments to China in 1Q11:
― Market Pulp: 2,215 tsd ton (-4.5% vs. 4Q10 and +35.5% vs. 1Q10)
― Eucalyptus: 674 tsd ton (+2.7% vs. 4Q10 and +5.1% vs. 1Q10)
Pulp
Paper
� Brazilian Demand2:
� Increase of P&W paper imports (30.4% vs. 25.3% in 4Q10)
� Brazilian exports accounted for 39% of total sales in 1Q11 vs. 37% in 4Q10
� Demand reduction at the main P&W markets in 1Q111 vs. 4Q10
MMt 1Q11 1Q11 vs 4Q10 1Q11 vs 1Q10
Market Pulp 10.7 -1.0% +6.1%
Eucalyptus 3.6 -0.6% +1.3%
Thousand ton 1Q11 1Q11 vs 4Q10 1Q11 vs 1Q10
Printing and Writing 468.1 -14.4% +8.0%
Paperboard 128.2 -14.5% -11.8%
Sources: 1 PPPC; 2 Bracelpa4
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Agenda
Market Highlight – 1Q11
Pulp Business Unit
Paper Business Unit
Consolidated Results
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08
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71 92 95
377409 418
448502 512
1Q10 4Q10 1Q11
Pulp Business Unit Highlights
Volume sold (tsd ton)
Europe
Asia
North Am.
South / Central Am.
Brazil
Sales Destination – 1Q11
19%
35%
35%1%
10%
67 77 84
318 334 348
385412 431
1Q10 4Q10 1Q11
Domestic Market Exports
+4.8%
Average Net Price
R$ 1,164 R$ 1,218 R$ 1,188
$647 $716 $711
1Q10 4Q10 1Q11R$ US$
Net Revenue (R$ million)
Domestic Market Exports
+2.2%
+12.0%
+14.3%
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06
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Agenda
Market Highlight – 1Q11
Pulp Business Unit
Paper Business Unit
Consolidated Results
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10
320425
352
203
269
192
522
694
545
1Q10 4Q10 1Q11
Paper Business Unit Highlights
Brazil
AsiaEurope
South / Central Am.
2%
58%20%
11%
138171
143
119
146
103
257
317
246
1Q10 4Q10 1Q11
-22.3%
R$ 2,032R$ 2,189 R$ 2,212
$1,129$1,288 $1,325
1Q10 4Q10 1Q11R$ US$
-21.4%
-4.2%
+4.3%
8
9%
North Am.
Volume sold (tsd ton) Sales Destination – 1Q11
Average Net Price Net Revenue (R$ million)
Domestic Market Exports
Domestic Market Exports
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Agenda
Market Highlight – 1Q11
Pulp Business Unit
Paper Business Unit
Consolidated Results 10
504
378349
1Q10* 4Q10 1Q11
123
251
144
1Q10 4Q10 1Q11
51.9%
31.7% 33.0% 12.7%
21.0%
13.6%
391 517 447
580
679610
971
1.1951.057
1Q10 4Q10 1Q11
642729
678
Consolidated ResultsSuzano Pulp and Paper
1.80 1.70 1.67R$/US$ avg.
Domestic Market Exports Volume
Net Revenue (R$ million) and Volume (tsd ton) Cash Cost (R$/ton)
455 457 472425 431
469
1Q10 4Q10 1Q11
EBITDA (R$ million) and EBITDA Margin (%) Net Income (R$ million) and Net Margin (%)
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32.4%
* 1Q10 EBITDA considers the non-recurring effect of the asset sale in Minas Gerais State. Excluding this, the EBITDA margin would have been 32.4%
With maintenance Without maintenance
3.3x
2.7x2.3x
2.0x
3.3x
4,2203,883 3,850
3,421
5,160
1Q10 2Q10 3Q10 4Q10 1Q11*
Gross Debt (R$ million) Index Exposure – 03/31/2011
Libor 18%
TJLP 33%
Fixed (R$) 2%
1,168 1,381 1,300
5,4505,775 5,690
6,6187,156 6,990
03/31/2010 12/31/2010 03/31/2011
Short Term Long Term
Amortization Schedule (R$ million)
1,193 1,290
1,018 1,002
428
2,060
2011 2012 2013 2014 2015 2016onwards
Net Debt / EBITDA (x)
7%IGPM
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Consolidated ResultsDebt
Debt in Foreign Currency: R$ 3,179 million
CDI 8%
Fixed (US$)28%
Basket of Currencies 4%
* The increase in net debt results from cash reduction due to Conpacel’s acquisition payment.
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Consolidated ResultsInvestment
Investments (R$ tsd) 1Q11 1Q10 ∆ Y-o-Y 4Q10 ∆ Q-o-Q
Maintenance 105,987 75,723 40.0% 118,417 -10.5%
Industrial 16,307 13,202 23.5% 38,417 -57.6%
Forestry 89,680 62,521 43.4% 80,000 12.1%
Expansion 1,668,954 35,077 4,658.0% 78,818 2,017.5%
Other 4,493 387 1,060.4% 7,001 -35.8%
TOTAL 1,779,434 111,187 1,500.4% 204,236 771.3%
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Investment PlanFunding is settled for construction of the Maranhão Unit
• Market pulp production capacity: 1.5 MM ton/year
• Funding:
• BNDES: R$ 2.7 billion, 12-year maturity and 3-year grace period
• Mandatory convertible debentures: R$ 1.2billion
• Funding for the imported equipmentsupported by foreign credit agencies (ECA’samong others)
• Cash flow generation
• Agreements for the acquisition of key equipment:Metso and Siemens
Competitive Advantages
• 100 MW energy surplus for sale
• Logistics guaranteed by long term contracts
• Latest technology
Maranhão Unit
Required planted area 154 tsd ha
Forestry capex (total estimated) US$575 million
Industrial capex (total estimated) US$2.3 billion
Start up (estimate) 2013
Wood supply68% own land 32% third parties
Draft of the Maranhão mill
Investor Relations Team
Investor Relationswww.suzano.com.br/ir
Antonio Maciel (CEO and Investor Relations Director) +55 11 3503-9061 [email protected]
Andrea Fernandes (Investor Relations Manager) +55 11 3503-9062 [email protected]
Áurea Portugal (Assistant) +55 11 3503-9061 [email protected]
Eduardo Oliveira (Intern) +55 11 3503-9306 [email protected]
Fernanda Nardy (Analyst) +55 11 3503-9066 [email protected]
Michelle Corda (Analyst) +55 11 3503-9359 [email protected]
Rosely Onizuca (Analyst) +55 11 3503-9355 [email protected]
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