3 q09 earnings presentation

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3 q09 earnings presentation

  1. 1. 3Q09 Consolidated Results October 26th, 2009
  2. 2. Highlights 3Q09• Paper and market pulp production of 660 ktons, 2.1% and 4.9% lower than in 2Q09 and 3Q08• Sales volume of 661 ktons: 399 ktons of pulp and 262 ktons of paper• Net revenue of R$ 891 MM• Pulp production cash cost1 of R$ 373/ton• EBITDA of R$ 218 MM, with EBITDA margin of 24.4%• Net income of R$ 213 MM• Net Debt / EBITDA ratio of 3.5 in Sep/09• Cash and cash equivalents of R$ 2.4 billion in Sep/09 and net debt reduction of R$ 476 MM in the 3Q091 Does not include maintenance downtime and the incident at Line 2 in Mucuri. 2/10
  3. 3. Pulp Business Unit Growth in global demand: 3Q09 vs. 2Q09 3Q09 vs. 3Q08 9M09 vs. 9M08 Market pulp: +1.7% +9.2% -0.1% BEKP: -0.1% +28.3% +17.4% Global inventories: 26 days – below the historical average of 33 days Price 2 increases announced for Oct/09 (+US$ 50/t) and Nov/09 (+US$ 50/t) Suzano’s pulp sales: 399 ktons3Q09 • 27.1% lower than 2Q09 • 37.3% higher than 3Q08 Main sales destinations: Asia (37.9%), Europe (36.6%) and Brazil (17.3%) Average net prices: +16.6% in US$ (US$ 466/ton vs. US$ 400/ton in 2Q09). In R$: • 5.0% higher than 2Q09 • 25.1% lower than 3Q08 Net revenue of R$ 347.4 MM: -23.5% vs. 2Q09 and +2.8% vs. 3Q08 Cash cost3 of R$ 373/ton (+2.7% vs. 2Q09 and -17.8% vs. 3Q08)1PPPC 2List price for Europe 3Does not include maintenance downtime and the incident at Line 2 in Mucuri 3/10
  4. 4. Pulp Business Unit Pulp sales (ktons) Pulp sales destinations 3Q09 Brazil 1,367.6 17.3% South/Central 991.0 America Asia 1.4% 37.9% 1,180.4 North America 547.6 6.8% 810.9399.0 290.7 482.7330.1 229.7 187.2 180.1 Europe68.9 64.9 61.0 36.6%3Q09 2Q09 3Q08 YTD09 YTD08 Domestic market Exports Total 399 ktons Pulp sales (R$ million) Pulp sales destinations 2Q09 1,198.1 1,161.5 South/Central Brazil America 11.9% 1.0% North America 1,033.1 960.9 5.7% 454.0347.4 337.9 Asia 399.5 52.0%291.8 269.8 165.0 200.655.6 54.6 68.1 Europe3Q09 2Q09 3Q08 YTD09 YTD08 29.4% Domestic market Exports Total 548 ktons 4/10
  5. 5. Paper Business Unit Seasonal demand and government purchases for PNLD1 boost domestic paper market in 3Q092: 3Q09 vs. 2Q09 3Q09 vs. 3Q08 9M09 vs. 9M08 P&W3: +20.0% +1.5% -3.7% Paperboard: +19.5% +0.2% -9.2% Stronger Real contributes to higher P&W imports (22.6% vs. 16.5% in 2Q09) Lower Brazilian exports: 35.8% of total shipments vs. 40.2% in 2Q09 Higher paper imports - negative impact on Suzano’s sales volumes in the domestic market:3Q09 3Q09 vs. 2Q09 3Q09 vs. 3Q08 9M09 vs. 9M08 P&W: +4.4% -14.4% -11.4% Paperboard: +12.2% -16.0% -19.0% Average price (R$): -3.5% -1.0% +3.4% Domestic sales back to historical levels: 58.9% of total sales Exports average net prices: 3Q09 vs. 2Q09 3Q09 vs. 3Q08 9M09 vs. 9M08 US Dollars: +6.8% -15.9% -15.5% Brazilian Reais -3.8% -5.9% +4.4% 1 National program of textbooks 2 Bracelpa, includes printing & writing and paperboard segments 3 P&W – Printing and Writing 5/10
  6. 6. Paper Business Unit Paper sales (ktons) Paper sales destinations 3Q09 Other 859.5 8.9% 808.7 Europe 9.5% 372.3 386.6 North America 313.7 305.7 10.4% 262.0 107.7 168.4 124.5 422.1 487.1 Brazil South/Central 154.3 145.3 181.2 58.9% America 12.3% 3Q09 2Q09 3Q08 YTD09 YTD08 Domestic market Exports Total 262 ktons Paper sales (R$ million) Paper sales destinations 2Q09 1,801.7 1,734.7 Other 17.1% 642.5 696.6 Brazil Europe 645.2 651.8 12.3%543.3 46.3% 217.5 1,038.2 1,159.2177.1 287.9366.3 357.3 434.3 North America 11.9%3Q09 2Q09 3Q08 YTD09 YTD08 South/Central America Domestic market Exports 12.4% Total 314 ktons 6/10
  7. 7. 3Q09 Results % % Results 3Q09 2Q09 3Q08 3Q09/2Q09 3Q09/3Q08 Sales volume (000 tons) 661 861 596 -23.3% 10.8% Paper volume domestic market (000 tons) 154 145 181 6.2% -14.8% Pulp volume exports (000 tons) 330 483 230 -31.6% 43.7% Net revenue - R$ million 891 1,099 990 -19.0% -10.0% Net income - R$ million 213 439 (282) -51.6% n.a. EBITDA - R$ million 218 232 374 -6.3% -41.8% EBITDA - US$ million 117 112 224 4.0% -48.0% EBITDA margin 24.4% 21.1% 37.8% 3.3 p.p. -13.4 p.p. Exchange Rate (R$/US$) 1.87 2.07 1.67 -10.0% 11.9% Net debt 4,019 4,495 4,775 -10.6% -15.8% Net debt / EBITDA (LTM) 3.5 3.5 3.7 n.a. n.a.n.a. – non applicableLTM = last twelve months 7/10
  8. 8. 9M09 Results % Results 9M09 9M08 YTD09/YTD08 Sales volume (000 tons) 2,176 1,850 17.6% Paper volume domestic market (000 tons) 422 487 -13.4% Pulp volume exports (000 tons) 1,180 811 45.6% Net revenue - R$ million 2,933 2,963 -1.0% Net income - R$ million 742 43 1615.8% EBITDA - R$ million 766 1,087 -29.6% EBITDA - US$ million 367 644 -43.0% EBITDA margin 26.1% 36.7% -10.6 p.p. Exchange Rate (R$/US$) 2.09 1.69 23.6% Net debt 4,019 4,775 -15.8% Net debt / EBITDA (LTM) 3.5 3.7 n.a.n.a. – non applicableLTM = last twelve months 8/10
  9. 9. Key Messages Signs of demand recovery in pulp and paper markets: • Paper: higher demand in Brazilian P&W and paperboard markets • Pulp: reduction in global producers inventories and new price increases Focus on operational performance: • Average price increase (in Brazilian Reais) vs. 2Q09 • Paper (domestic + exports): +0.8% • Pulp: +5.0% • Costs and expenses control: pulp production cash cost of R$373/ton (3Q09) and 24% SG&A reduction (9M09 vs. 9M08) Solid financial position: • Adequate debt profile and competitive debt cost • Strong cash position of R$ 2.4 billion and net debt reduction of R$ 476 million Solid growth strategy: evolution in Maranhão and Piauí greenfield projects.PS: P&W – Printing and writing 09/10
  10. 10. Investor Relationswww.suzano.com.br/ri55 11 3503-9061ri@suzano.com.br

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