4 q09 earnings presentation
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Transcript of 4 q09 earnings presentation
4Q09 and 2009 Consolidated Results
March 4th, 2010
Highlights 4Q09
• Record paper and market pulp production of 696 thousand tons.
• Sales volume of 720 thousand tons (413 thousand tons of pulp and 307 thousand tons ofpaper).
• Net revenue of R$ 1.0 billion, 14.5% higher than in 3Q09 and 7.3% lower than in 4T08.
• Pulp production cash cost of R$ 398/ton, 6.8% higher than 3Q09 and 9.1% lower thanin 4Q08.
• EBITDA of R$ 255 million, with margin of 25.0%. EBITDA without non-recurring itemsof R$ 309 million with margin of 30.3%.
• Net income of R$ 136 million.
• Net debt/EBITDA ratio of 3.9 in Dec/2009.
2/13
Highlights 2009
• New annual production record: 2.7 million tons of paper and market pulp.
• New annual sales record: 2.9 million tons (1.8 million tons of pulp and 1.1 million tons ofpaper).
• Net revenue of R$ 4.0 billion, stable compared to 2008.
• Pulp price recovery since May/2009 and reduction in inventories.
• EBITDA of R$ 1.0 billion with margin of 25.8%.
• Record annual net income of R$ 878 million.
• Cash and cash equivalents of R$ 2.5 billion on 12/31/2009 and net debt reduction of R$ 1.5billion in 2009.
3/13
Pulp Business Unit
• Global demand recovery (volume)1:
4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
Market Pulp: -3.0% +8.3% +1.8%
BEKP: -0.3% +15.4% +16.8%
• Global inventories: 27 days (Dec/09) – still below the historical average of 33 days
• New price2 increases announced for January, February and March/10 (US$ 30/tons each)
4T09 and 2009
• Sales: 413 ktons (4Q09) / 1,780 ktons (2009):
� 4Q09: 3.4% higher than in 3Q09 and 25.3% higher than in 4Q08
� 2009: 34.8% higher than in 2008
• Main sales destinations in 4Q09: Asia (38.8%), Europe (35.8%) and Brazil (17.8%)
• Average net price in 4Q09 (domestic and exports): US$ 572/ton, +22.8% x 3Q09. In R$:
� 3Q09: +14.4%
� 4Q08: -13.1%
� 2008 x 2009: -22.5%
• Net revenue of R$ 410.8 million: +18.3% vs. 3Q09 and + 8.9% vs. 4Q08. In 2009: +4.6% vs. 2008
• Production cash cost: R$ 398/ton (+6.8% vs. 3Q09 and -9.1% vs. 4Q08)
4/131PPPC 2CIF Europe list price
Suzano
Market
73.6 68.9 51.5260.8 231.6
339.0 330.1 277.8
1,519.4
1,088.7
412.6 399.0 329.3
1,780.2
1,320.3
4Q09 3Q09 4Q08 2009 2008
Domestic market Exports
66.8 55.6 61.7231.8 262.3
344.0 291.8 315.6
1,377.1 1,276.5
410.8 347.4 377.3
1,608.91,538.8
4Q09 3Q09 4Q08 2009 2008
Domestic market Exports
Pulp Business Unit
Pulp Sales (ktons)
Pulp Sales (R$ million)
Pulp sales destinations 4Q09
Pulp sales destinations 2009
Total 413 ktons
Total 1.780 ktons5/13
Asia44.9%
Europe32.9%
North America6.7%
South/Central America
0.9% Brazil14.7%
Asia38.8%
Europe35.8%
North America6.9%
South/Central America
0.7%
Brazil17.8%
Paper Business Unit4T09 and2009
• Sales volume recovery in the domestic market in 4Q09:
4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
� Printing & Writing +10.4% -4.6% -9.5%
� Paperboard +7.5% +13.4% -11.9%
� Average price (domestic) -3.5% -8.7% -0.1%
• Domestic sales: 55.1% of total sales in 4Q09
• Exports average net prices recovery in US$ in 4Q09 vs. 3Q09:
4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
� US Dollars +5.1% -5.9% -13.6%
� Brazillian Reais -2.1% -28.3% -5.9%
• Sales volume recovery in Brazil in 4Q091:
4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
Printing & Writing +1.9% 0.0% -2.8%
Paperboard +1.8% +18.4% -2.8%
• Reduction of P&W paper imports in the domestic market (21.7% vs. 22.7% in 3Q09)
• Higher Brazilian exports: 39.3% of total shipments vs. 35.9% in 3Q09
6/131Bracelpa
Suzano
Market
387.5 366.3 428.1
1,425.7 1,587.3
221.6 177.1294.9
918.2937.4
609.2 543.3723.0
2,343.92,524.7
4Q09 3Q09 4Q08 2009 2008
Domestic market Exports
169.3 154.3 170.7
591.3 657.8137.8 107.7 131.5
524.4503.8
307.0 262.0 302.2
1,115.7 1,161.7
4Q09 3Q09 4Q08 2009 2008
Domestic market Exports
Paper Business Unit
7/13
Paper sales destinations 4Q09
Total 307 ktons
Paper sales destinations 2009
Total 1.116 ktons
Paper Sales (ktons)
Paper Sales (R$ million)
Other8.9%
Europe12.4%
North America10.9%
South/Central America12.6%
Brazil55.1%
Other11.0%
Europe11.8%
North America11.3%
South/Central America12.8%
Brazil53.0%
Results 4Q09 3Q09 4Q084Q09/3Q09
(%)
4Q09/4Q08
(%)
Sales volume (000 tons) 720 661 632 8.9% 14.0%
Paper volume domestic market (000 tons) 169 154 171 9.7% -0.8%
Pulp volume exports (000 tons) 339 330 278 2.7% 22.0%
Net revenue - R$ million 1,020 891 1,100 14.5% -7.3%
Net income - R$ million 136 213 (495) -35.8% n.a.
EBITDA - R$ million 255 218 382 17.2% -33.2%
EBITDA - US$ million 147 117 167 25.8% -12.5%
EBITDA margin 25.0% 24.4% 34.7% 0.6 p.p. -9.7 p.p.
Exchange Rate (R$/US$) 1.74 1.87 2.28 -6.9% -23.7%
Net debt 3,966 4,019 5,459 -1.3% -27.4%
Net debt / EBITDA 3.9 3.5 3.7 n.a. n.a.
4Q09 Results
n.a. – non aplicable
8/13
Results 2009 20082009/2008
(%)
Sales volume (000 tons) 2,896 2,482 16.7%
Paper volume domestic market (000 tons) 591 658 -10.1%
Pulp volume exports (000 tons) 1,519 1,089 39.6%
Net revenue - R$ million 3,953 4,064 -2.7%
Net income - R$ million 878 (451) n.a.
EBITDA - R$ million 1,021 1,469 -30.5%
EBITDA - US$ million 511 800 -36.2%
EBITDA margin 25.8% 36.2% -10.3 p.p.
Exchange Rate (R$/US$) 2.00 1.84 8.9%
Net debt 3,966 5,459 -27.4%
Net debt / EBITDA 3.9 3.7 n.a.
2009 Results
9/13
n.a. – non aplicable
Non scheduled downtimes in Mucuri
10/13
• Incident in the pulp dryerin line 2: machine´s component detachment
•Some rolls were damagedcausing a production downtime of 6 days for repairs and parts´ replacement
• We decided to anticipate our scheduled downtime for maintenance and technical problem solving
• Processes and equipments offset
• Joint work with equipments supplier
• Specific trainings and dedicated consulting
• Continuous improvement programs are in place to enhance equipment performance
• Partnership with INDG* for routine management
In 3Q09:
• Higher chemicals consumption
•Overload in chemicals recovery
•Non scheduled downtimes and restarts
In 1Q10:Consequences
Action plan
* National Management Development Institute
Main 2009 accomplishments:
• Suzano already owns 75% (Maranhão) and 100% (Piauí) of the total land needed
to assure operations start ups in 2013 and 2014.
• Forest operation infrastructure deployment in Maranhão and Piauí:
more than 1,700 employees already located in new sites
• Innovation: night planting
• Conceptual engineering completed and engagement of basic / detailed engineering
• Beginning of industrial licensing
• Final agreements with Vale (acquisition of forest assets and technological
cooperation)
• Final agreements with Vale and CFN: railroad transportation for the pulp
output from new units to the port
11/13
New Growth Cycle
Key Messages
• Demand recovery in pulp and paper markets
� Paper: P&W and paperboard demand growth in the Brazilian market (4Q09 x 3Q09) and annual demandrecovery similar to 2008 levels
� Pulp: inventories still at low levels and successive price increases
• Focus on operational performance
� Costs and expenses discipline:
� Average pulp production cash cost of R$ 389/ton in 2009 (-11.4% x 2008)
� Reduction of 14% in SG&A (2009 x 2008)
� Working capital reduction of R$ 437 million in 2009
• Solid financial position
� Adequate debt profile and competitive debt cost
� Strong cash position: R$ 2.5 billion
� Net debt reduction of R$ 1.5 billion
• Solid growth strategy
� Evolution on the projects of Maranhão and Piaui’s new units: investments of R$ 361 million in 2009
PS: P&W – Printing and writing 12/13
Investor Relationswww.suzano.com.br/ri+55 11 [email protected]