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4 q10 earnings presentation
 

4 q10 earnings presentation

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    4 q10 earnings presentation 4 q10 earnings presentation Presentation Transcript

    • 4Q10 Consolidated Results March 2nd, 2011
    • 4Q10 Highlights – Pulp and Paper Markets • Global market pulp production of 10.8 MMt in 4Q10: -1.1% vs. 3Q10 and +3.8% vs. 4Q09 • Global pulp sales volume (million ton): 4Q10 4Q10 x 3Q10 4Q10 x 4Q09 Market Pulp: 10.8 +6.3% +4.2% Pulp Eucalyptus: 3.6 +6.3% -0.4% • Global inventories at 30 days1 (Dec/10): below the historical average of 33 days • Price decrease in 4Q10: US$ 849/ton (FOEX, December, CIF Europe) • Market pulp shipments to China in December/10: Market pulp: 984 thousand tons (+40.8% vs. Nov/10 and +59.0% vs. Oct/10) Eucalyptus: 311 thousand tons (+38.8% vs. Nov/10 and +148.8% vs. Oct/10) Domestic demand2(kton): 4Q10 4Q10 x 3Q10 4Q10 x 4Q09 Printing & Writing 547.3 +2.2% +7.0% Paperboard 150.0 -8.4% -1.8% • Brazilian exports accounted for 36.9% of total sales in 4Q10 compared to 34.2% in 3Q10 Paper • Increase of P&W paper imports (25.6% vs. 25.4% in 3Q10) • Demand at the main P&W markets in 4Q101: Western Europe: +0.4% vs. 3Q10 and -0.8% vs. 4Q09 North America: -4.3% vs. 3Q10 and -2.5% vs. 4Q09 Latin America: +0.8% vs. 3Q10 and +11.0% vs. 4Q091PPPC 2Bracepla 02/10
    • Pulp Business Unit• Sales: 411.7 thousand tons in 4Q10: 5.7% higher than 3Q10 0.2% lower than 4Q09• Average net price in 4Q10 (domestic and exports) of US$717.8/ton, -4.1% vs. 3Q10. In R$: 6.9% lower than 3Q10 22.4% higher than 4Q09• Net revenue of R$501.6 million: 1.6% lower than 3Q10 22.1% higher than 4Q09 Pulp Sales (ktons) Pulp Sales Destination 4Q10 3Q10 411.7 thousand tons 389.5 thousand tons 03/10
    • Paper Business Unit• Sales volume of 317.0 thousand tons in 4Q10: 4Q10 x 3Q10 4Q10 x 4Q09 Printing & Writing +15.1% +6.5% Paperboard -3.2% -8.4% Average paper price (domestic) +0.1% +8.6%• Domestic sales: 53.9% of total sales in 4Q10• Exports average net price: 4Q10 x 3Q10 4Q10 x 4Q09 In US$ -2.0% +17.3% In R$ -4.9% +14.5% Paper Sales (ktons) Paper Sales Destination 4Q10 3Q10 317.0 thousand tons 285.4 thousand tons 04/10
    • Operational Performance Highlights Net revenue breakdown Pulp cash cost¹ (R$/ton) • EBITDA margin of 31.7%: 3.5 p.p. lower than 3Q10 Non-recurring items of R$ 14.8 million • Net income of R$251 million • Pulp cash cost ¹ 5.9% lower than 3Q10: Lower wood costs Higher chemicals’ cost Lower fixed cost1 Mucuri Unit 05/10
    • Debt and leverage 1 Debt Breakdown - R$ Million December-10 September-10 December-09 Gross Debt 7,156 7,476 6,644 (-) Cash and Cash Equivalents -3,735 -3,625 -2,533 Net Debt 3,421 3,850 4,111 Net Debt / EBITDA 2.0x 2.2x 3.5x Amortization (R$ million) Net debt vs. Net debt/ EBITDA1All amounts in the table above include the adjustments introduced by the IFRS standards. 06/10
    • 2010 Highlights – Pulp and Paper Markets • Global market pulp production of 41.7 MMt1 in 2010 (+6.4% vs. 2009) • Global pulp sales volume (MMt): 2010 2010 x 2009 Market Pulp: 41.0 +4.8% Pulp Eucalyptus: 13.8 -2.5% • Global inventories at 30 days1 (Dec/10) vs. 27 days1 (Dec/09) • BHKP list price1: US$847/ton in 2010 vs. US$565/ton in 2009 (+49.9%) • Market pulp shipments to China in 2010: Market pulp: 7.1 MM tons (-17.9% vs. 2009) Eucalyptus: 2.3 MM tons (-36.6% vs. 2009) Domestic demand2(kton): 2010 2010 x 2009 Printing & Writing 1,978.9 +10.2% Paperboard 609.7 +13.4% • Brazilian exports accounted for 48.9% of total sales in 2010 compared to 52.1% in 2009 (P&W Paper + Paperboard) • Increase of P&W paper imports in 2010 (24.5% vs. 18.8% in 2009) • Demand at the main P&W markets in 20101: Western Europe: +3.5% vs. 2009 North America: +3.6% vs. 2009 Latin America: +12.4 vs. 20091PPPC 2Bracepla 3FOEX, CIF Europe 07/10
    • 2010 Highlights• Demand recovery in pulp and paper markets Pulp: prices 57.8% higher in 2010 Paper: average price increased by 2.7% compared to 2009 – highlight for paperboard (+8.1%) and higher domestic market participation (+2.6%) in the sales mix• Net revenues record of R$ 4.5 billion (+14.2%)• Operational margins recovery: EBITDA of R$ 1.7 billion, 46.7% higher than 2009 Net income of R$ 769 million vs. R$ 947 million in 2009 (exchange rate variation and IFRS)• Solid financial position Adequate debt profile and competitive debt cost: duration of 43 months Leverage reduction: from 3.5x in Dec/09 to 2.0x in Dec/10 US$ 650 million in Senior Notes rated Baa3 (Investment Grade, Moody’s) and BB+ (Standard & Poor’s)• Consistent growth strategy Suzano 2024 − FuturaGene and Suzano Renewable Energy − MA and PI projects’ update − Conpacel and KSR acquisitions Sale of non strategic forestry assets 08/10
    • 2010 HighlightsR$ million, exc ept w here otherw ise indic ated 2010 2009 2010 x 2009 Net Revenue 4,514 3,953 14.2% Exports 2,599 2,295 13.2% Domestic Market 1,915 1,657 15.5% EBI TDA 1,703 1,161 46.7% EBITDA Margin (%) 37.7% 29.4% 8.4 p.p. Net Financial Earnings (loss) (252) 696 -136.2% Net I ncome (loss) 769 947 -18.8% Earnings (loss) per Share (R$) 2.07 2.86 -55.0% Net Debt 3,421 4,111 -16.8% Net Debt / EBITDA 2.0 3.5 -1.5 p.p. End of Period Exchange Rate (R$/US$) 1.67 1.74 -4.3% Average Exchange Rate (R$/US$) 1.76 2.00 -11.9%Operational Data (tsd tons) Pulp Sales 1,607 1,780 -9.7% Paper Sales 1,156 1,116 3.6% Mkt. Pulp Production 1,617 1,590 1.7% Paper Production 1,128 1,088 3.6% 09/10
    • Update: Suzano 2024Operational Excellence in Paper Pulp Organic Growth: MA BNDES financing: R$ 2.7 billion Payment of Conpacel on 01/31/2011 Mandatory convertible Debentures: R$ 1.2 Synergies net present value: R$ 300 million billion Suzano’s 2010 EBITDA from Conpacel: ~R$ Board of Directors’ approval for: 250 million Conclusion of Limeira Unit’s - MA unit’s construction integration (previous - Agreements with Metso and Siemens Conpacel) Conclusion of KSR’s Start-up anticipation: 04/30/13 acquisition 41 thousand hectares plantedSuzano Renewable Energy FuturaGene Progress in the setup of a reasearch Definitive contracts: negotiation at final stage center (China), which will be dedicated to Land acquisition for the 1st mill: major part the development of eucalyptus, poplar already completed and other species’ GMOs Basic engineer in progress Foundation of FuturaGene Capital structure being Brazil, that will concentrate all defined of the group’s biotechnologies activities in Brazil 10/10
    • Investor Relationswww.suzano.com.br/ri+55 11 3503-9061ri@suzano.com.br