Suzano S.a. · BMFBOVESPA:SUZB3

Suzano — Q1 2017 Earnings Presentation

14 slides from Suzano's earnings presentation, 2017

  1. Slide 1: 1Q17 Conference Call

    1Q17 Conference Call - ~ 3 = as 5 a > ; 3 y ae cS SUZANO PULP AND PAPER”

  2. Slide 2: Disclaimer

    Disclaimer The statements in this presentation constitute projections or forward-looking statements. Such statements are subject to known and unknown risks and uncertainties that could cause the expectations expressed not to materialize or the current results to differ materially from the expected r

  3. Slide 3: Consistency and Resilience of Results

    Consistency and Resilience of Results Financial Discipline Cost Capital Discipline Discipline Supply Product Discipline Portfolio

  4. Slide 4: Robust Balance Sheet

    Financial Discipline Robust Balance Sheet  Gross Debt: R$ 13.8 billion Debt (R$) / Adjusted EBITDA (x) 5.6x  Cash Position: R$ 4.1 billion 4.1x  Net Debt: R$ 9.7 billion 3.2x 3.6x 4.0x 2.7x 2.6x 2.8x  Average Cost of Debt: 4.9% p.a.  Average Debt Maturity: 62 months  Foreign Exchange Exposure

  5. Slide 5: Fundraising compatible with Investment Grade companies

    Financial Discipline Fundraising compatible with Investment Grade companies Suzano 2026 vs. Peers Suzano 2047 vs. Peers Dec-16 Jan-17 Dec-16 Jan-17 Oct-16 Mar-17 Apr-17 Oct-16 Mar-17 Apr-17 Nov-16 Feb-17 Nov-16 Feb-17 Braskem 2024 Fibria 2027 Klabin 2024 Suzano 2026 Braskem 2041 Gerdau 2044 Suzano 2

  6. Slide 6: Capex Flexibility

    Capital Discipline Capex Flexibility  New Cut Size Line - Mucuri (Concluded)  Crystallizer – Mucuri (Concluded) CAPEX (R$ billion)  Debottlenecking – Imperatriz (3Q17) 1Q17 2017e  Wastewater Treatment Station – Mucuri (3Q17) Sustaining 0.2 1.1  Tissue – Mucuri (3Q17) Structural Competitiveness

  7. Slide 7: ROIC positively impacted by Sustaining Capex efficiency

    Capital Discipline ROIC positively impacted by Sustaining Capex efficiency Sustaining Capex /Produced Volume LTM¹ (R$/ton) 267 230 221 1Q15 1Q16 1Q17 - 3.9% Inflation: +14.4% ¹ Last twelve months

  8. Slide 8: Lower volatility and higher added value

    P r o d u c t s Po r t f o l i o Lower volatility and higher added value Cash Flow (R$/ton)¹ Tissue Final Product Jumbo  Start Up: 3Q17 (Mucuri) and 4Q17 (Imperatriz) Pulp Roll  Total Capacity: 120k tones/year ¹Current market price and Suzano's cost expectations.  Initial conversion capacity: 60k

  9. Slide 9: Continuous focus on efficiency

    Cost Discipline Continuous focus on efficiency COGS / Sales Volume LTM¹ (R$/ton) SG&A / Sales Volume LTM¹ (R$/ton) 1,391 1,385 1,368 196 1,307 191 1,283 177 179 166 Dec/13 Dec/14 Dec/15 Dec/16 Mar/17 Dec/13 Dec/14 Dec/15 Dec/16 Mar/17 +6.0% Costs and Expenses - 8.7% Inflation: +26.4% Inflation: +26.

  10. Slide 10: Downward trend continuous

    Cash Cost Downward trend continuous Consolidated Pulp Cash Cost Ex-Maintenance (R$/ton) 642 Target Cash Cost 623 605 585 570 475 2015 2016 LTM1Q17 1Q17 2018¹ 2021 – 2022¹ Debottleneck of Imperatriz Optimization of Average radius Crystallizer in Mucuri ¹ Nominal value in 2016.

  11. Slide 11: Profitability and resilience of the paper business

    Profitability and resilience of the paper business Paper Production (‘000 tons) Paper Sales (‘000 tons) 1,182 1,160 1,194 1,186 362 358 297 295 274 272 317 264 832 828 88 91 84 184 226 180 1Q16 4Q16 1Q17 2016 LTM¹ 1Q16² 4Q16 1Q17 2016 LTM¹ Brazil Exports Paper Adjusted EBITDA (R$/ton) Paper ROIC (%)

  12. Slide 12: Pulp EBITDA in progress and expectation of improvement in the next quarters

    Pulp EBITDA in progress and expectation of improvement in the next quarters Pulp Production (‘000 tons) Pulp Sales (‘000 tons) 3,473 3,435 3,530 3,540 912 935 874 906 957 915 1Q16 4Q16 1Q17 2016 LTM¹ 1Q16 4Q16 1Q17 2016 LTM¹ Pulp Adjusted EBITDA (R$/ton) Pulp ROIC (%) 1,053 16.1 723 778 693 678 10.5

  13. Slide 13: Operational performance improvement and product portfolio mitigate the impact of external factors

    Operational performance improvement and product portfolio mitigate the impact of external factors Operating Cash Flow LTM¹ (R$ ton) Adjusted EBITDA LTM¹ (R$/ton) 1,016 827 771 737 588 581 555 522 348 348 Dec/13 Dec/14 Dec/15 Dec/16 Mar/17 Consolidated 5.1 6.4 14.7 11.9 10.6 ROIC¹ (%) ¹ Last twelve m

  14. Slide 14: Thank you!

    Thank you! Investor Relations www.suzano.com.br/ir [email protected]

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