FIBRIA CELULOSE 1Q16 Results
LTM free cash flow (6)of more than R$3 billionPulp Sales | 000 t | 1,136 | 1,308 | 1,229 | -13% | -8% | 5,024 |
Net Revenues | R$ million | 2,395 | 2,985 | 1,997 | -20% | 20% | 10,478 |
Net Income (Loss) | R$ million | 978 | 910 | (566) | - | - | 1,901 |
Free Cash Flow(6) | R$ million | 615 | 866 | 385 | -29% | 60% | 3,096 |
4Q15 | 1Q15 | (LTM) | |||||
Pulp Production | 000 t | 1,203 | 1,297 | 1,291 | -7% | -7% | 5,097 |
Key Figures Unit 1Q16 4Q15 1Q15 1Q16 vs
1Q16 vs
Last 12 months
Adjusted EBITDA(1) | R$ million | 1,254 | 1,623 | 1,007 | -23% | 25% | 5,584 |
EBITDA margin | % | 52% | 54% | 50% | -2 p.p. | 2 p.p. | 53% |
Net Financial Result(2) | R$ million | 922 | 97 | (1,746) | - | - | (1,018) |
Dividends paid | R$ million | (0) | (1,998) | - | - | - | (2,148) |
ROE(5) | % | 25.3% | 25.1% | 9.9% | 0 p.p. | 15 p.p. | 25.3% |
ROIC(5) | % | 23.4% | 22.8% | 10.2% | 0 p.p. | 13 p.p. | 23.4% |
Gross Debt (R$) | R$ million | 11,498 | 12,744 | 9,352 | -10% | 23% | 11,498 |
Cash(3) | R$ million | 1,189 | 1,730 | 361 | -31% | 229% | 1,189 |
Net Debt (R$) | R$ million | 10,309 | 11,015 | 8,991 | -6% | 15% | 10,309 |
Net Debt (US$) | US$ million | 2,897 | 2,821 | 2,803 | 3% | 3% | 2,897 |
Net Debt/EBITDA LTM | x | 1.85 | 2.06 | 2.88 | -0.1 x | -0.4 x | 1.85 |
Net Debt/EBITDA LTM (US$)(4) | x | 1.86 | 1.78 | 2.30 | 0.0 x | -0.2 x | 1.86 |
Gross Debt (US$) | US$ million | 3,231 | 3,264 | 2,915 | -1% | 11% | 3,231 |
(1) Adjusted by non-recurring and non-cash items | (2) Includes results from f inancial investments, monetary and exchange variation, mark-to-market of hedging and interest
Includes the hedge fair value | (4) For covenants purposes | (5) For more details p. 16 | (6) Before dividend payment, expansion capex and purchase and sale of land
1Q16 HighlightsPulp production of 1,203 thousand tons (t), 7% less than in 4Q15 and 1Q15. LTM production stood at 5,097 thousand t. Pulp sales of 1,136 thousand t, 13% and 8% down on 4Q15 and 1Q15, respectively. LTM sales totaled 5,024 thousand t.
Net revenue of R$2,395 million (4Q15: R$2,985 million | 1Q15: R$1,997 million). LTM net revenue came to R$10,478 million, a new 12-
month record.
Cash cost of R$699/t, 6% more than in 4Q15 and 22% up on 1Q15 (for more details, see page 7). Excluding the impact of the scheduled downtimes, the cash cost would have come to R$668/t.
First-quarter Adjusted EBITDA totaled R$1,254 million, 23% down on 4Q15 and 25% up on 1Q15. LTM EBITDA amounted to R$5,584 million, also a period record. The EBITDA Margin for the quarter stood at 52%.
EBITDA/ton of R$1,104/t (US$283/t) in the quarter, 11% less than in 4Q15 and 35% more than in 1Q15.
Free cash flow in the quarter before expansion capex totaled R$615 million, 29% down on 4Q15 and 60% up on 1Q15. LTM free cash flow came to R$3,096 million, with free cash flow yield of 18.4% in R$ and 18.2% in US$.
Cash ROE and ROIC of 22.0% and 20.6%, respectively. For more details, see page 16.
Net income of R$978 million (4Q15: R$910 million | 1Q15: R$(566) million). LTM net income stood at R$1,901 million.
Gross debt in dollars of US$3,231 million, 1% less than in 4Q15 and 11% more than in 1Q15. Gross debt/EBITDA ratio in dollars of 2.07x. Net Debt/EBITDA ratio of 1.86x in dollars (Dec/15: 1.78x | Mar/15: 2.30x) and 1.85x in reais (Dec/15: 2.06x | Mar/15: 2.88x).
Total cost of debt, including the full swap of real-denominated debt, of 3.4% (4Q15: 3.3% p.a. | 1Q15: 3.5% p.a.).
Approval of the issue of export credit notes through the public distribution of agribusiness receivables certificates (CRAs) totaling up to R$1.35 billion.
Subsequent EventsReinteration of investment grade by S&P (BBB-/Stable).
Market cap - March 31, 2016:
R$16.8 billion | US$4.7 billion(1)FIBR3: R$30.34 FBR: US$8.48 Free float (common shares)(2): 553,590,604 sharesMarket cap in R$ converted by the Ptax
Excluding treasury shares
Conference Call: April 27, 2016
English (simultaneous translation into Portuguese): 12:00 p.m. (Brasília) Participants in Brazil: +55 11 3193-1001 | Otherparticipants: +1-786-924-6977 Webcast: www.fibria.com.br/ir
Investor Relations
Guilherme Cavalcanti André Gonçalves Camila Nogueira Roberto Costa Raimundo Guimarães ir@fibria.com.br | +55 (11) 2138-4565The operating and financial information of Fibria Celulose S.A. for the first quarter of 2016 (1Q16) presented in this document is based on consolidated figures and expressed in reais, is unaudited and was prepared in 2
accordance with Corporate Law. The results of Veracel Celulose S.A. were included in this document based on 50% proportional consolidation, with the elimination of all intercompany transactions.
Índice
Pulp Market 5
Production and Sales 5
Results Analysis 6
Financial Result 9
Net Result 11
Indebtedness 12
Capital Expenditure 14
Free Cash Flow 14
ROE and ROIC 15
Capital Market 16
Appendix I - Revenue x Volume x Price * 17
Appendix II - Income Statement 18
Appendix III - Balance Sheet 19
Appendix IV - Cash Flow 20
Appendix V - Breakdown of EBITDA and Adjusted EBITDA (CVM Instruction 527/2012) 21
Appendix VI - Economic and Operational Data 22
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Executive Summary
Seasonality and the more challenging scenario throughout 1Q16 continued to pressure pulp prices in dollars, especially in Asia. However, according to the PPPC, global eucalyptus pulp sales moved up by 7% in the first two months of the year over the same period in 2015. Fibria's sales to Asia moved up at the end of the quarter, exceeding the volume routed to the region in the previous three months. In addition, reflecting the increased complexity of the sector and overall economic scenarios, hardwood pulp producers anticipated their maintenance downtimes, mitigating the factors that had been fueling the recent price slide. Finally, the average dollar appreciated by 1% against the real, helping maintain the EBITDA margin at 52% and ensure record LTM net revenue, EBITDA and free cash flow.
On March 14, Fibria informed its shareholders and the market in general that its Board of Directors had approved the issue, by the Company, of export credit notes (NCEs), which will serve as a capital market funding guarantee, through a public distribution of agribusiness receivables certificates (CRAs), to be issued by Eco Securitizadora de Direitos Creditórios do Agronegócio S.A., totaling up to R$1.35 billion. The documents related to the transaction were filed for preliminary analysis with the Brazilian Securities and Exchange Commission (CVM) on March 11, 2016.
Pulp production totaled 1,203 thousand tons in 1Q16, 7% less than in 4Q15, largely due to the scheduled maintenance downtime at plant C, the boiler retrofit in plant C at the Aracruz Mill, and the lower number of production days, partially offset by the lack of a scheduled maintenance downtime at the Jacareí Mill. In the year-on-year comparison, the 7% decline was mainly due to the retrofit effects described above, partially offset by one more production day in the period. The boiler stoppage was part of the Company's maintenance plan and was designed to improve the plant's stability and operating performance. Sales volume came to 1,136 thousand tons, 13% and 8% down on 4Q15 and 1Q15, respectively, due to period seasonality and the more challenging pulp market scenario. Pulp inventories closed the quarter at 57 days.
The production cash cost was R$699/t, 6% up on 4Q15, primarily due to higher chemical and energy consumption, the reduced utilities result and higher wood expenses. The year-on-year upturn was due to higher logistics costs with wood (wider average transportation radius and more wood acquired from third parties), the appreciation of the dollar against the real, higher chemical and energy consumption and the reduced utilities result, among other less important factors (see page 7 for more details). The cash cost excluding the downtime effect stood at R$668/t, 22% up on 1Q15. In dollars, however, the annual cash cost fell by 10%.
Adjusted 1Q16 EBITDA totaled R$1,254 million, 23% down on 4Q15, due to the reduction in sales volume and the lower average net price in reais, partially offset by lower cash COGS, while the EBITDA margin stood at 52%. In relation to 1Q15, the 25% upturn was due to the higher average net price in reais, in turn explained by the 36% appreciation of the average dollar against the real, partially offset by the upturn in cash COGS and the reduction in sales volume. Free cash flow for the quarter before expansion capex amounted to R$615 million, 29% less than in 4Q15 due to the EBITDA reduction and the increase in maintenance capex, partially offset by the positive variation in working capital and lower disbursements with interest payments. In relation to 1Q15, the 60% increase was due to the upturn in EBITDA and the positive variation in working capital, partially offset by higher maintenance capex.
The 1Q16 financial result was positive by R$922 million, versus a negative R$97 million in 4Q15 and a negative R$1,746 million in 1Q15. The positive result was chiefly due to the 9% depreciation of the end-of-period dollar against the real, resulting in income from the impact of the exchange variation on debt and hedge instruments. Gross debt in dollars totaled US$3,231 million, 1% less than in 4Q15 and 11% more than in 1Q15. Fibria closed the quarter with a cash position of R$1,189 million, including the mark-to-market of derivatives.
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Fibria Celulose SA issued this content on 27 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 27 April 2016 12:23:16 UTC
Original Document: http://fibria.infoinvest.com.br/enu/6366/Release%201T16_eng_vFinal.pdf
