1 q10 earnings presentation


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

1 q10 earnings presentation

  1. 1. 1Q10 Consolidated Results May 14th, 2010
  2. 2. Highlights 1Q10 - Market • Restrictions in global pulp supply in 1Q10: climate problems in US, port strikes in Finland and earthquake in Chile • Global market pulp production reached 10 million tons: -3.5% vs. 4Q09 and +9.5% vs. 1Q09 • Lower shipments vs. 4Q09: Pulp 1Q10 x 4Q09 1Q10 x 1Q09 Market pulp: -2.7% +6.7% Eucalyptus: -2.4% +4.4% • Global inventories at 26 days (Mar/10)1: still below the historical average of 33 days • Price increases announced for April and May in all regions : U$890/ton (May, CIF Europe) • Stronger domestic demand vs.1Q092: post-crisis recovery. Lower volumes vs. 4Q09 due to seasonality 1Q10 x 4Q09 1Q10 x 1Q09 Printing and Writing -15.5% +17.2% Paperboard -3.1% +36.3% Paper • Increase of P&W paper imports in the domestic market (24.6% vs. 21.7% in 4Q09) • Higher Brazilian exports (41.1% of total shipments vs. 39.3% in 4Q09) • P&W demand recovery in the US and Europe vs.1Q09: US: +7.1% W. Europe: +2.4%1PPPC 2Bracelpa 02/09
  3. 3. Highlights1Q10 - Suzano• Total market pulp and paper production of 653 thousand tons• Total sales volume of 642 thousand tons: 385 ktons of pulp and 257 ktons of paper• Net revenue of R$ 971 million• Pulp production cash cost of R$ 425/ton¹• Record EBITDA of R$ 504 million (margin of 51.9%). EBITDA excluding non-recurring items of R$ 315 million (margin of 32.4%)• Sale of forestry assets in Minas Gerais state for R$ 334 million• Net income of R$ 130 million• Net debt/EBITDA ratio of 3.4 in March 2010 and cash and cash equivalents of R$ 2.4 billion on March 31st, 2010.1 Excluding unscheduled maintenance downtimes 03/09
  4. 4. Pulp Business Unit• Sales: 385 thousand tons in 1T10 6.6% lower than in 4Q09 8.5% lower than in 1Q09• Average net price in 1Q10 (domestic and exports) of US$ 645/ton, +12.7% vs. 4T09. In R$: 16.9% higher than 4Q09 23.5% higher than 1Q09• Net revenue of R$ 448.4 million 9.2% higher than 4Q09 13.0% higher than 1Q09 Pulp Sales (ktons) Pulp sales destination 1Q10 4Q09 385 Ktons 413 Ktons 04/09
  5. 5. Paper Business Unit• Sales volume recovery in Brazil vs.1Q09: 1Q10 x 4Q09 1Q10 x 1Q09 Printing and Writing -20.1% +11.9% Paperboard -12.9% +15.5% Average price (domestic) +1.1% -9.9%• Domestic sales: 53.7% of total sales in1Q10• Exports average net prices recovery in US$: 1Q10 x 4Q09 1Q10 x 1Q09 In US$ +2.2% +4.4% In R$ +6.0% -18.6% Paper sales (ktons) Paper sales destination 1Q10 4Q09 257 Ktons 307 Ktons 05/09
  6. 6. Operational Performance Net Revenue Breakdown • Higher share of pulp in Suzano’s revenue: 46% in 1Q10 vs. 40% in 4Q09 • Pulp cash cost¹ 6.8% higher than 4Q09: Higher costs related to wood from third parties and caustic soda Lower dilution of fixed costs • EBITDA margin of 51.9%: Non-recurring items : +R$190 million EBITDA excluding non-recurring items : R$315 million, margin of 32.4% Pulp cash cost¹ (R$/ton) EBITDA (R$ MM) / Margin (%)1Mucuri Unit 06/09
  7. 7. Debt and leverageDebt Breakdown - R$ Million 3/31/2010 12/31/2009 3/31/2009Total Debt 6,487 6,499 7,478 (-) Cash and Cash Equivalents -2,399 -2,533 -2,139Net Debt 4,088 3,966 5,338 Net Debt / EBITDA 3.4 3.9 3.7 07/09
  8. 8. Key Messages• Demand recovery in pulp and paper markets: Paper: higher demand in Brazilian P&W and paperboard markets (1Q10 x 1Q09) Pulp: inventories below the historical level and succesive price increases• Operational margins recovery• Solid financial position Adequate debt profile and competitive debt cost Leverage reduction: from 3.9x in Dec/09 to 3.4x in Mar/10• Solid growth strategy Evolution in Maranhão and Piauí greenfield projects: − Basic engineering in progress − Beginning of industrial licensing process in Maranhão − Forestry partnership program launched in Piauí Sale of non strategic forestry assets finished in 1Q10 Offer to acquire Futuragene in the UK 08/09
  9. 9. Investor Relationswww.suzano.com.br/ri+55 11 3503-9061ri@suzano.com.br 09/09
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.