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4 q09 earnings presentation
 

4 q09 earnings presentation

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    4 q09 earnings presentation 4 q09 earnings presentation Presentation Transcript

    • 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 of paper).• 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 than in 4Q08.• EBITDA of R$ 255 million, with margin of 25.0%. EBITDA without non-recurring items of 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 of paper).• 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$ 1.5 billion in 2009. 3/13
    • Pulp Business Unit • Global demand recovery (volume)1: Market 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%) Suzano • 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)1PPPC 2CIF Europe list price 4/13
    • Pulp Business Unit Pulp Sales (ktons) Pulp sales destinations 4Q09 1,780.2 South/Central 1,320.3 America Brazil 0.7% 17.8% Asia 1,519.4 38.8% North America 1,088.7 6.9%412.6 399.0 329.3339.0 330.1 277.8 260.8 231.6 Europe 73.6 68.9 51.54Q09 3Q09 4Q08 2009 2008 35.8% Domestic market Exports Total 413 ktons Pulp Sales (R$ million) Pulp sales destinations 2009 1,608.9 1,538.8 South/Central America 0.9% Brazil 14.7% North America 1,377.1 1,276.5 6.7% Asia 44.9%410.8 347.4 377.3344.0 291.8 315.6 231.8 262.3 Europe66.8 55.6 61.7 32.9%4Q09 3Q09 4Q08 2009 2008 Domestic market Exports Total 1.780 ktons 5/13
    • Paper Business Unit • Sales volume recovery in Brazil in 4Q091: 4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008 Market 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) 4T09 and 2009 • Higher Brazilian exports: 39.3% of total shipments vs. 35.9% in 3Q09 • 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% Suzano 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%1Bracelpa 6/13
    • Paper Business Unit Paper Sales (ktons) Paper sales destinations 4Q09 1,115.7 1,161.7 Other Europe 8.9% 12.4% 503.8 524.4 Brazil North America 55.1%307.0 302.2 10.9% 262.0 657.8 591.3137.8 107.7 131.5169.3 154.3 170.7 South/Central4Q09 3Q09 4Q08 2009 2008 America 12.6% Domestic market Exports Total 307 ktons Paper Sales (R$ million) Paper sales destinations 2009 2,524.7 2,343.9 Other 937.4 11.0% 918.2 Europe Brazil 11.8% 53.0% 723.0609.2 543.3 1,425.7 1,587.3 North America221.6 294.9 11.3% 177.1387.5 366.3 428.1 South/Central4Q09 3Q09 4Q08 2009 2008 America Domestic market Exports 12.8% Total 1.116 ktons 7/13
    • 4Q09 Results 4Q09/3Q09 4Q09/4Q08Results 4Q09 3Q09 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.n.a. – non aplicable 8/13
    • 2009 Results 2009/2008Results 2009 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.n.a. – non aplicable 9/13
    • Non scheduled downtimes in MucuriIn 3Q09: Consequences In 1Q10:• Incident in the pulp dryer • We decided to anticipate our in line 2: machine´s • Higher chemicals consumption scheduled downtime for component detachment maintenance and technical •Overload in chemicals recovery problem solving•Some rolls were damaged causing a production downtime •Non scheduled downtimes • Processes and equipments of 6 days for repairs and and restarts offset parts´ replacementAction plan• 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* National Management Development Institute 10/13
    • New Growth CycleMain 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
    • 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 demand recovery 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 3503-9061ri@suzano.com.br