Disclaimer
The information contained in this presentation may include statements which constitute forward-looking statements, as defined by Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to business, financial, trend, strategy and other forecasts, and are based on assumptions, data or methods that, although considered reasonable by the company at the time, may be incorrect or imprecise, or may not be possible to realize. The company gives no assurance that expectations disclosed in this presentation will be confirmed. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements, due to a variety of factors, including, but not limited to, the risks of international business and other risks referred to in the companys filings with the CVM and SEC. The company does not undertake, and specifically disclaims any obligation to update any forward-looking statements, which are valid only for the date on which they are made.
Agenda
4 5 6 7 8
4Q12 Results
Debt
Hedging Strategy
Operating Result
Liability Management
Growth Opportunities
Record annual pulp production and sales. Sales exceeded production Cost control
Liquidity events and free cash flow generation: R$2.9 billion Gross debt reduction Cost of debt reduction Leverage down to 3.4x (Net Debt/EBITDA in R$)
Best portfolio of projects in the industry Ensyn: use of forestry expertise to operate in biobusiness as a driver for value generation
Capex discipline Working capital improvement Free cash flow generation of R$836 million.
4Q12 Results
Pulp Production and Sales (000 t)
5,299 5,184 5,054 4,909 5,141 5,357
Record production and sales.
2010 (1)
2011
Production Sales
2012
4Q11
3Q12
4Q12
2011
(1) Excludes production and sales of Conpacel and KSR.
2012
4Q11
3Q12
4Q12 5
Debt
Net Debt/EBITDA (x)
7.1 6.5 3.8 3.6 3.1 2.9 3.4 3.8 3.2 4.2 4.8 4.2 5.2 4.8 4.7 4.2 4.2 4.5 3.4 3.3
2009
2010
Mar/11
Jun/11
Sep/11
Dec/11
Mar/12
Jun/12
Sep/12
Dec/12
+9%
1.88 2.04
9,817 1,560 1,138 1,075 724 677 998 810 654 5,878
2013 2014 2015 2016 2017 2018 2019 2020 2021 Bond Pre-Payment BNDES ECN Export Credit/Other
2010
2011 US$ R$
2012 6
Hedging Strategy
1,084 162 923 151 791 141 580 433 112 321 410 170 Dec/12
Sep/11
Dec/11
Mar/12 NDF
Sep/12
56%
53%
54%
18%
29%
- The increase in Zero cost collar operations is linked to the reduced FX volatility. - This operation minimizes negative impacts in the event of a sudden depreciation of the Real.
(R$ billion)
0.5
2.9
2.3
1.4
0.2
(1.1) (0.5)
0.2 (0.1)
Working Capital Taxes(2)
0.8
EBITDA
CAPEX (1)
Interest
FCF FCF
Equity Offering
Forest Sale(3)
Total Total
R$2.9 billion in free cash flow generation and liquidity events in 2012
(1) Includes advance for wood purchase (partnership program). (2) IR/CS and other. (3) Forestry assets and land in the south of Bahia State. (4) Considers only the receipt of the first payment of R$470 million.