0001104659-19-044949.txt : 20190808 0001104659-19-044949.hdr.sgml : 20190808 20190808171550 ACCESSION NUMBER: 0001104659-19-044949 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190808 FILED AS OF DATE: 20190808 DATE AS OF CHANGE: 20190808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Suzano S.A. CENTRAL INDEX KEY: 0000909327 STANDARD INDUSTRIAL CLASSIFICATION: PAPER MILLS [2621] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38755 FILM NUMBER: 191010590 BUSINESS ADDRESS: STREET 1: AV. PROFESSOR MAGALHAES NETO, 1,752 STREET 2: 10TH FLOOR, ROOMS 1010 AND 1011 CITY: SALVADOR - BA STATE: D5 ZIP: 41 810-012 BUSINESS PHONE: 551121384588 MAIL ADDRESS: STREET 1: AV. BRIGADEIRO FARIA LIMA, 1,355 STREET 2: 7TH FLOOR CITY: PINHEIROS, SAO PAULO - SP STATE: D5 ZIP: 01 452-919 FORMER COMPANY: FORMER CONFORMED NAME: Suzano Papel e Celulose S.A. DATE OF NAME CHANGE: 20180322 FORMER COMPANY: FORMER CONFORMED NAME: COMPANHIA SUZANO DE PAPEL E CELULOSE /FI DATE OF NAME CHANGE: 19930719 6-K 1 a19-16767_16k.htm 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 6-K

 


 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August, 2019.

 

Commission File Number 001-38755

 


 

Suzano S.A.

(Exact name of registrant as specified in its charter)

 


 

SUZANO INC.

(Translation of Registrant’s Name into English)

 

Av. Professor Magalhaes Neto, 1,752

10th Floor, Rooms 1010 and 1011

Salvador, Brazil 41 810-012

(Address of principal executive office)

 


 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x     Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 


 

Enclosures:

 

This report on Form 6-K [and the below exhibit(s)] are hereby incorporated by reference into Registration Statement No. 333-232311 on Form F-4 of Suzano Papel e Celulose S.A. (“Suzano”).

 

Exhibit 99.1 — Unaudited condensed consolidated interim financial information as of June 30, 2019.

 

2


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: August 8, 2019

 

 

 

 

 

 

 

SUZANO S.A.

 

 

 

 

By:

/s/ Marcelo Feriozzi Bacci

 

Name:

Marcelo Feriozzi Bacci

 

Title:

Chief Financial Officer and Investor Relations Director

 

3


EX-99.1 2 a19-16767_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Suzano S.A.

Unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

Condensed Consolidated Interim Balance Sheet

 

 

 

Note

 

June 30,
2019

 

December 31,
2018

 

Assets

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Cash and cash equivalents

 

5

 

4,104,641

 

4,387,453

 

Financial investments

 

6

 

3,692,806

 

21,098,565

 

Trade accounts receivable

 

7

 

2,895,714

 

2,537,058

 

Inventories

 

8

 

7,365,938

 

1,853,104

 

Recoverable taxes

 

9

 

1,303,898

 

296,832

 

Derivative financial instruments

 

4

 

569,297

 

352,454

 

Advances to suppliers

 

 

 

127,136

 

98,533

 

Assets held for sale

 

 

 

 

 

5,718

 

Other assets

 

 

 

345,516

 

169,175

 

Total current assets

 

 

 

20,404,946

 

30,798,892

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Recoverable taxes

 

9

 

478,232

 

231,498

 

Financial investments

 

6

 

174,699

 

 

 

Deferred taxes

 

11

 

1,026,457

 

8,998

 

Derivative financial instruments

 

4

 

823,476

 

141,480

 

Advances to suppliers

 

 

 

1,024,625

 

218,493

 

Judicial deposits

 

 

 

352,187

 

129,005

 

Other assets

 

 

 

201,616

 

93,935

 

 

 

 

 

 

 

 

 

Biological assets

 

12

 

10,094,235

 

4,935,905

 

Investments

 

13

 

228,381

 

14,338

 

Property, plant and equipment

 

14

 

41,744,825

 

17,020,259

 

Right of use on lease agreements

 

18.1

 

4,245,797

 

 

 

Intangible assets

 

15

 

18,212,469

 

339,841

 

Total non-current assets

 

 

 

78,606,999

 

23,133,752

 

Total assets

 

 

 

99,011,945

 

53,932,644

 

 

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

 

1


 

Suzano S.A.

Unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

Condensed Consolidated Interim Balance Sheet

 

 

 

Note

 

June 30,
2019

 

December 31,
2018

 

Liabilities

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

Trade accounts payable

 

16

 

3,986,488

 

632,565

 

Loans and financing

 

17.1

 

4,693,057

 

3,425,399

 

Debentures

 

17.8

 

 

 

1,297

 

Lease liabilities

 

18.2

 

536,891

 

 

 

Derivative financial instruments

 

4

 

615,183

 

596,530

 

Taxes payable

 

 

 

245,000

 

243,835

 

Payroll and charges

 

 

 

370,853

 

234,192

 

Liabilities for assets acquisitions and subsidiaries

 

 

 

499,984

 

476,954

 

Dividends payable

 

 

 

9,907

 

5,434

 

Advance from customers

 

 

 

87,665

 

75,159

 

Other liabilities

 

 

 

375,704

 

367,313

 

Total current liabilities

 

 

 

11,420,732

 

6,058,678

 

 

 

 

 

 

 

 

 

Non-current

 

 

 

 

 

 

 

Loans and financing 

 

17.1

 

51,123,171

 

27,648,657

 

Debentures

 

17.8

 

4,663,506

 

4,662,156

 

Lease liabilities

 

18.2

 

3,822,300

 

 

 

Derivative financial instruments

 

4

 

2,031,612

 

1,040,170

 

Liabilities for assets acquisitions and subsidiaries

 

 

 

513,792

 

515,558

 

Provision for judicial liabilities

 

19

 

3,541,857

 

351,270

 

Employee benefits

 

20

 

590,016

 

430,427

 

Deferred taxes

 

11

 

599,184

 

1,038,133

 

Share-based compensation plans

 

21

 

144,230

 

124,318

 

Other liabilities

 

 

 

132,065

 

37,342

 

Total non-current liabilities

 

 

 

67,161,733

 

35,848,031

 

Total liabilities

 

 

 

78,582,465

 

41,906,709

 

 

 

 

 

 

 

 

 

Equity

 

22

 

 

 

 

 

Share capital

 

 

 

9,235,546

 

6,241,753

 

Capital reserves

 

 

 

6,418,623

 

674,221

 

Treasury shares

 

 

 

(218,265

)

(218,265

)

Retained earnings

 

 

 

3,080,618

 

2,992,590

 

Other reserves

 

 

 

2,295,169

 

2,321,708

 

Retained loss

 

 

 

(498,557

)

 

 

Controlling interest in subsidiaries’ equity

 

 

 

20,313,134

 

12,012,007

 

Non-controlling interest in subsidiaries’ equity

 

 

 

116,346

 

13,928

 

Total equity

 

 

 

20,429,480

 

12,025,935

 

Total equity and liabilities

 

 

 

99,011,945

 

53,932,644

 

 

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

 

2


 

Suzano S.A.

Unaudited condensed consolidated interim financial information

(In thousands of R$, unless otherwise stated)

 

Condensed Consolidated Interim Statements of Income (Loss)

 

 

 

 

 

Second quarter

 

Semester ended

 

 

 

Note

 

April 1 to
June 30,
2019

 

April 1 to
June 30,
2018

 

June 30,
2019

 

June 30,
2018

 

Net sales revenue

 

25

 

6,665,082

 

3,214,122

 

12,364,081

 

6,208,701

 

Cost of sales

 

27

 

(5,222,119

)

(1,685,081

)

(9,947,012

)

(3,268,495

)

Gross profit

 

 

 

1,442,963

 

1,529,041

 

2,417,069

 

2,940,206

 

Operating income (expenses)

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

27

 

(456,981

)

(150,305

)

(898,284

)

(272,262

)

General and administrative expenses

 

27

 

(278,031

)

(203,667

)

(608,796

)

(351,020

)

Equity in earnings (loss) joint venture and associates

 

13

 

3,911

 

(68

)

5,569

 

(121

)

Other operating income (expenses), net

 

27

 

171,199

 

(673

)

152,315

 

(10,540

)

Operating profit before net financial income (expenses)

 

 

 

883,061

 

1,174,328

 

1,067,873

 

2,306,263

 

Net financial income (expenses)

 

24

 

 

 

 

 

 

 

 

 

Financial expenses

 

 

 

(1,086,192

)

(325,521

)

(2,078,996

)

(559,794

)

Financial income

 

 

 

149,607

 

45,007

 

298,929

 

81,733

 

Derivative financial instruments

 

 

 

257,427

 

(2,550,067

)

(379,507

)

(2,481,464

)

Monetary and exchange variations, net

 

 

 

758,223

 

(1,139,051

)

302,496

 

(1,167,457

)

Net income (loss) before taxes

 

 

 

962,126

 

(2,795,304

)

(789,205

)

(1,820,719

)

Income taxes

 

11

 

 

 

 

 

 

 

 

 

Current

 

 

 

(62,329

)

(218,656

)

(191,578

)

(322,872

)

Deferred

 

 

 

(199,949

)

1,173,950

 

451,499

 

1,109,101

 

Net income (loss) for the period

 

 

 

699,848

 

(1,840,010

)

(529,284

)

(1,034,490

)

Result of the period attributed to the controlling shareholders

 

 

 

700,548

 

(1,840,596

)

(526,255

)

(1,035,076

)

Result of the period attributed to non-controlling shareholders

 

 

 

(700

)

586

 

(3,029

)

586

 

Earnings (Loss) per share

 

23

 

 

 

 

 

 

 

 

 

Basic

 

 

 

0.51922

 

(1.68278

)

(0.39004

)

(0.94683

)

Diluted

 

 

 

0.51922

 

(1.68278

)

(0.39004

)

(0.94683

)

 

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

 

3


 

Suzano S.A.

Unaudited condensed consolidated interim financial information

(In thousands of R$, unless otherwise stated)

 

Condensed Consolidated Interim Statements of Comprehensive Income (Loss)

 

 

 

Second quarter

 

Semester ended

 

 

 

April 1 to
June 30,
2019

 

April 1 to
June 30,
2018

 

June 30,
2019

 

June 30,
2018

 

Net income (loss) for the period

 

699,848

 

(1,840,010

)

(529,284

)

(1,034,490

)

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange rate variation and fair value on financial assets measured at fair value through of comprehensive income

 

 

 

 

 

 

 

 

 

Ensyn Corporation (“Ensyn”) (1)

 

1,833

 

 

 

3,156

 

 

 

CelluForce Inc. (“CelluForce”)

 

70

 

 

 

532

 

 

 

Spinnova Oy (“Spinnova”)

 

(87

)

 

 

(402

)

 

 

 

 

1,816

 

 

 

3,286

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of the above items

 

(617

)

 

 

(1,117

)

 

 

 

 

1,199

 

 

 

2,169

 

 

 

 

 

 

 

 

 

 

 

 

 

Item that may be subsequently reclassified to profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange variation on conversion of financial statements and on foreign investments

 

(20,158

)

124,912

 

(8,413

)

139,186

 

Total comprehensive income (loss)

 

680,889

 

(1,715,098

)

(535,528

)

(895,304

)

 

 

 

 

 

 

 

 

 

 

Result for the period attributed to the controlling shareholders

 

681,589

 

(1,715,684

)

(532,499

)

(895,890

)

Result for the period attributed to non-controlling shareholders

 

(700

)

586

 

(3,029

)

586

 

 


(1)             In 2019 the Company revaluated the investment in Ensyn Corporation (“Ensyn”), previously classified as financial investment measured through other comprehensive income, note 3.4.

 

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

 

4


 

Suzano S.A.

Unaudited condensed consolidated interim financial information

Six-month period ended June 30, 2019

(In thousands of R$, unless otherwise stated)

 

Condensed Consolidated Interim Statements of Changes in Equity

 

 

 

Share capital

 

Capital reserves

 

Retained reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

Share
capital

 

Share
issuance
costs

 

Stock options
granted

 

Share
issuance
costs

 

Tax
incentives

 

Other

 

Treasury
shares

 

Tax
incentives

 

Legal
Reserve

 

Reserve for
capital
increase

 

Special
statutory
reserve

 

Dividends
proposed

 

Other
reserves

 

Retained
earnings
(loss)

 

Total

 

Non-
controlling
interest

 

Total equity

 

Balances at December 31, 2017

 

6,241,753

 

 

 

14,237

 

(15,442

)

396,006

 

 

 

(241,088

)

 

 

406,898

 

2,281,328

 

234,591

 

 

 

2,298,328

 

 

 

11,616,611

 

 

 

11,616,611

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,035,076

)

(1,035,076

)

586

 

(1,034,490

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139,186

 

 

 

139,186

 

 

 

139,186

 

Transactions with shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options granted

 

 

 

 

 

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72

 

 

 

72

 

Sale of treasury shares to meet stock-based compensation plan

 

 

 

 

 

 

 

 

 

 

 

 

 

8,514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,514

 

 

 

8,514

 

Non-controlling interest arising on business combination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,948

 

7,948

 

Internal changes in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partial realization of assets’ deemed cost adjustment, net of deferred taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41,868

)

41,868

 

 

 

 

 

 

 

Issue of treasury shares to employees

 

 

 

 

 

(14,309

)

 

 

 

 

 

 

14,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(29,977

)

 

 

 

 

 

 

 

 

(29,977

)

 

 

(29,977

)

Balances at June 30, 2018

 

6,241,753

 

 

 

 

 

(15,442

)

396,006

 

 

 

(218,265

)

 

 

406,898

 

2,251,351

 

234,591

 

 

 

2,395,646

 

(993,208

)

10,699,330

 

8,534

 

10,707,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2018

 

6,241,753

 

 

 

5,100

 

(15,442

)

684,563

 

 

 

(218,265

)

 

 

422,815

 

1,730,629

 

242,612

 

596,534

 

2,321,708

 

 

 

12,012,007

 

13,928

 

12,025,935

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(526,255

)

(526,255

)

(3,029

)

(529,284

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,244

)

 

 

(6,244

)

 

 

(6,244

)

Transactions with shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital increase (note 1.1.1.1 and 22.1)

 

3,027,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,027,528

 

 

 

3,027,528

 

Share issuance costs (1)

 

 

 

(33,735

)

 

 

15,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,293

)

 

 

(18,293

)

Stock options granted

 

 

 

 

 

2,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,638

 

 

 

2,638

 

Non-controlling interest arising from business combination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105,447

 

105,447

 

Unclaimed dividends forfeited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,122

 

1,122

 

 

 

1,122

 

Dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(596,534

)

 

 

 

 

(596,534

)

 

 

(596,534

)

Internal changes in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfer of tax incentives

 

 

 

 

 

 

 

 

 

(684,563

)

 

 

 

 

684,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partial realization of assets’ deemed cost adjustment, net of deferred taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,576

)

26,576

 

 

 

 

 

 

 

Realization of asset revaluation reserve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,281

 

 

 

6,281

 

 

 

6,281

 

Issue of common shares related to business combination (note 1.1.1.1)

 

 

 

 

 

 

 

 

 

 

 

6,410,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,410,885

 

 

 

6,410,885

 

Balances at June 30, 2019

 

9,269,281

 

(33,735

)

7,738

 

 

 

 

 

6,410,885

 

(218,265

)

684,563

 

422,815

 

1,730,629

 

242,612

 

 

 

2,295,169

 

(498,557

)

20,313,134

 

116,346

 

20,429,480

 

 


(1)       In 2019, the Company reclassified the share issuance costs from capital reserve to share capital.

 

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

 

5


 

Suzano S.A.

Unaudited condensed consolidated interim financial information

Six-month period ended June 30, 2019

(In thousands of R$, unless otherwise stated)

 

Condensed Consolidated Interim Statements of Cash Flows

 

 

 

June 30,
2019

 

June 30,
2018

 

Operating activities

 

 

 

 

 

Net income (loss) for the period

 

(529,284

)

(1,034,490

)

Adjustment to:

 

 

 

 

 

Depreciation, depletion and amortization (note 26)

 

1,779,304

 

741,047

 

Depletion of wood resources from forestry partnership programs

 

18,905

 

18,823

 

Fair value adjustment on business combination with Fibria - Amortization (note 26)

 

2,824,553

 

 

 

Fair value adjustment on business combination with Facepa - Amortization (note 26)

 

8,797

 

 

 

Amortization of lease-use right

 

63,889

 

 

 

Interest expense on lease liabilities

 

96,993

 

 

 

Results from sale and disposals of property, plant and equipment and biological assets, net

 

3,504

 

17,378

 

Equity in earnings of subsidiaries (note 13 (a) and (c))

 

(5,569

)

121

 

Exchange rate and monetary variations, net

 

(302,496

)

1,319,020

 

Interest expenses with financing and loans and debentures, net (notes 17.2, 17.9 and 24)

 

1,674,610

 

274,711

 

Accrual of interest on financial investments

 

(247,053

)

54,346

 

Amortization of fundraising costs (notes 17.2 and 17.9)

 

159,856

 

 

 

Derivative (gains) losses, net (note 23)

 

379,507

 

2,481,464

 

Fair value adjustment of biological assets

 

(83,453

)

(5,954

)

Deferred income tax and social contribution expenses (note 11.1)

 

(451,499

)

(1,109,101

)

Interest on employee benefits (note 20.2)

 

26,842

 

17,234

 

Provision/ (Reversal) for judicial liabilities

 

2,475

 

27,960

 

Allowance for doubtful accounts, net

 

(9,928

)

5,105

 

Estimated loss (reversal) in inventories and write-offs

 

(12,028

)

 

 

Provision for loss of ICMS credits, net

 

69,191

 

 

 

Other provisions

 

66,743

 

3,742

 

Decrease (increase) in assets

 

 

 

 

 

Related parties

 

(2,178

)

 

 

Trade accounts receivable

 

1,067,666

 

50,479

 

Inventories

 

(1,208,554

)

(262,249

)

Recoverable taxes

 

(18,032

)

(5,758

)

Other assets

 

46,023

 

(182,971

)

Increase (decrease) in liabilities

 

 

 

 

 

Related parties

 

57,322

 

 

 

Trade accounts payables

 

(366,119

)

(8,327

)

Taxes payable

 

252,757

 

163,709

 

Payroll and charges

 

(262,909

)

76,657

 

Other liabilities

 

(350,419

)

350,890

 

Cash provided by operations

 

4,749,416

 

2,993,836

 

Payment of interest with financing and loans and debentures

 

(1,462,681

)

(370,122

)

Interest received from financial investments

 

285,922

 

 

 

Payment of income taxes

 

(405,257

)

(64,080

)

Cash provided by operating activities

 

3,167,400

 

2,559,634

 

Investing activities

 

 

 

 

 

Cash provided by the merger of subsidiary

 

 

 

21,436

 

Additions to property, plant and equipment (note 14)

 

(1,147,071

)

(607,366

)

Additions to intangible assets (note 15.3)

 

(718

)

(57

)

Additions to biological assets (note 12)

 

(1,508,161

)

(491,201

)

Proceeds from sale of assets

 

83,695

 

31,865

 

Increase of capital in subsidiaries and associates (note 13 c))

 

(11,216

)

 

 

Financial investments

 

21,833,286

 

(2,716,934

)

Advance for acquisition of wood from operations with development (non-current)

 

(212,150

)

(8,732

)

Acquisition of subsidiaries, net cash (note 1.1.1.2)

 

(26,002,540

)

(315,904

)

Other investments

 

(269

)

 

 

Cash used in investing activities

 

(6,965,144

)

(4,086,893

)

Financing activities

 

 

 

 

 

Proceeds from loans (note 17.2)

 

12,226,291

 

7,491,201

 

Issue of Debentures (note 17.9)

 

3,998,780

 

 

 

Payment of derivative transactions

 

(4,662

)

(169,362

)

Payment of loans and financing (note 17.2)

 

(7,703,512

)

(3,214,568

)

Payment of leases

 

(270,586

)

 

 

Payment of dividends

 

(601,731

)

(210,205

)

Payment of debentures (note 17.9)

 

(4,000,000

)

 

 

Proceeds from own shares

 

 

 

8,514

 

Liabilities for assets acquisitions and subsidiaries

 

(3,425

)

(3,071

)

Others financing

 

2,379

 

 

 

Cash provided by financing activities

 

3,643,534

 

3,902,509

 

Exchange variation on cash and cash equivalents

 

(128,602

)

172,654

 

Increase (reduction) in cash and cash equivalents

 

(282,812

)

2,547,904

 

Cash and cash equivalents at the beginning for the period

 

4,387,453

 

1,076,833

 

Cash and cash equivalents at the end for the period

 

4,104,641

 

3,624,737

 

Statement of increase (reduction) in cash and cash equivalents

 

(282,812

)

2,547,904

 

 

The accompanying notes are an integral part of this unaudited condensed consolidated interim financial information.

 

6


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

1                                                  Company Information

 

Suzano S.A., (current social denomination of Suzano Papel e Celulose S.A., as Extraordinary General Meeting hold on April 1st, 2019), hereinafter referred to as the “Suzano” and together with its subsidiaries hereinafter referred to as (the “Company”), is a publicly-held corporation with registered office in the city of Salvador, State of Bahia, Brazil.

 

Suzano owns shares traded in B3 S.A. (“Brasil, Bolsa, Balcão - “B3”), New Market Listing Regulation under the ticker SUZB3. On December 10, 2018, Suzano began trading its American Depositary Receipts (“ADRs”), Level II, traded in the New York Stock Exchange under the ticker SUZ, pursuant to a program approved by the Brazilian Securities and Exchange Commission (“CVM”).

 

After the conclusion of the transaction involving Fibria Celulose S.A. (“Fibria”), on January 14, 2019, the Company now owns 11 industrial units, located in Aracruz (Espírito Santo, State), Belém (Pará, State), Eunápolis — Veracel Celulose S.A. (“Veracel”), a jointly-controlled entity — and Mucuri (Bahia, State), Fortaleza (Ceará, State), Imperatriz (Maranhão, State), Jacareí, Limeira, Rio Verde and Suzano (São Paulo, State) and Três Lagoas (Mato Grosso, State).

 

These units produce hardwood pulp from eucalyptus, paper (coated paper, paperboard, uncoated paper and cut size paper) and packages of sanitary paper (consumer goods - tissue) to serve the domestic and foreign markets.

 

Pulp and paper are sold in the foreign market directly by Suzano, as well as through its subsidiaries in Argentina, the United States of America, Switzerland and Austria and its sales offices in China.

 

The Company’s corporate purpose also includes the commercial operation of eucalyptus forest for its own use, the operation of port terminals, and the holding of interest, as partner or shareholder, in any other company or project, and the generation and sale of electricity.

 

The Company is controlled by Suzano Holding S.A., through a Voting Agreement whereby it holds 45.80% of the common shares of its share capital.

 

This unaudited condensed consolidated interim financial information was approved by the Management Company’s on August 07, 2019.

 

7


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

1.1                                        Major events in the period

 

1.1.1                              Business Combination with Fibria

 

On January 3, 2019 (acquisition date of control by Suzano), after the fulfillment of all conditions for the conclusion of the transaction to combine the operations and shareholding base of Suzano and Fibria, was performed the exchange of Fibria’s shares by Suzano’s shares and, on January 14, 2019, Suzano completed the corporate reorganization process, following the terms of the Agreement signed by both entities on March 15, 2018.

 

The consideration by Fibria, defined in terms of the Agreement, was as follows:

 

1.1.1.1                    Share exchange ratio

 

On January 2, 2019, pursuant to Notice to Shareholders, the exchange ratio of the common shares issued by the Eucalipto Holding S.A. (“Holding”) held by Fibria’s shareholders for shares issued by Suzano was adjusted from 0.4611 to 0.4613, being the exchange ratio of 0.4613 considered as final. The adjustment in the exchange ratio, compared to the originally announced, was due to (i) a change in the total number of shares issued by Fibria ex-treasury and disregarding the shares resulting from the vesting of option plans between those in the Protocol and Justification and that date of 553,080,611 shares for 553,733,881 shares and (ii) alteration of the number of shares issued by Suzano ex-treasury and disregarding the shares resulting from the vesting of option plans between that contained in the Protocol and Justification and that present date of 1,091,984,141 shares to 1,093,784,141 shares.

 

As a result of this adjustment, (i) Suzano issued, as a result of the merger of the Holding, 255,437,439 new common shares in the market value of R$ 36.95, totaling amount of R$ 9,438,413, of which R$ 3,027,528 was recognized as capital increase and R$ 6,410,885, as capital reserve; and (ii) the amount attributed to Suzano’s common share to calculate the capital gain, as disclosed in the Notice of Shareholders on November 29, 2018, increased from R$ 15.38 attributed to 0.4611 common share for R$ 15.39 attributed to 0.4613 common share of Suzano.

 

1.1.1.2                    Cash installment

 

On January 10, 2019, by means of the Notice to Shareholders, the Company communicated the final value of the Adjusted Cash installment, corresponding to the redemption value of each Holding’s redeemable preferred share, originally equivalent to R$ 52.50, (i) reduced by the amount of dividends declared by Fibria on December 3, 2018 and paid in Brazil on December 12, 2018 in the amount of R$ 5.03 per share issued by Fibria (ii) plus R$ 2.73, corresponding to the variation of the average daily rate of Brazilian interbank deposits expressed as an annual percentage, based on 252 business days, measured and disclosed daily by B3 (“DI Rate”), between March 15, 2018 and the Expiration Date of the Transaction including January 10, 2019 (including) and January 14, 2019 (including), the DI Rate was estimated at 6.40% per annum, with a total and

 

8


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

final amount of R$ 50.20 per share, making up the final amount of the Adjusted Cash Amount of R$ 27,797,441.

 

The amounts mentioned above are gross, not considering any tax impacts on the payment to Fibria Resident or Non-Resident Shareholders, which are detailed in the Notice to Shareholders disclosed on November 29, 2018.

 

Suzano performed a valuation analysis of the fair market value of the assets of Fibria acquired and liabilities assumed and using the full consideration for the Merger, performed the allocations for such assets and liabilities.

 

The following table summarizes the preliminary purchase price allocation based on the appraisal report prepared by an independent and specialized entity:

 

Cash consideration

 

27,797,441

 

Issuance of shares by Suzano

 

9,438,413

 

Total consideration

 

37,235,854

 

 

 

 

 

Book value of Fibria’s shareholders’ equity

 

14,149,004

 

Write-off of the book value of existing goodwill, net of the deferred income taxes

 

(3,495,077

)

Mandatory minimum dividends (eliminated from the balance sheet at the date of acquisition)

 

724,829

 

Book value of Fibria’s shareholders’ equity, net of goodwill

 

11,378,756

 

 

 

 

 

Fair value adjustment on business combination with Fibria (assets and liabilities):

 

 

 

Inventories

 

2,178,903

(1)

Property, plant and equipment

 

9,445,315

(2)

Customer relationship

 

9,030,779

(3)

Port assets

 

749,060

(4)

Possible contingent losses

 

(2,970,546

)(5)

Loans and financing

 

(59,921

)(6)

Taxes recoverable

 

(235,843

)(7)

Other assets and liabilities, net

 

368,624

(8)

Deferred taxes, net

 

(546,324

)(9)

Total impact of fair value

 

17,960,047

 

Preliminary goodwill on the expectation of future profitability

 

7,897,051

(10)

 

The Company has not yet finalized the valuation off all identifiable assets and assumed liabilities in the business combination with Fibria and therefore some of these amounts are provisional. These amounts may be adjusted as valuations are finalized.

 


(1)         Measured considering the balance of finished products based on selling price, net of selling expenses and an accepted margin based on the results achieved in 2018.

 

(2)         Determined based on the analysis of market data on comparable transactions and cost quantification, based on the estimate of replacement or replacement value of the assets.

 

(3)         In order to determine the fair value adjustment in the customer portfolio, the income approach and the method were used to measure the present value of the income that will be generated during the remaining useful life of the asset. Considering the 5-year history of Fibria’s sales data and the churn rate that measures customer satisfaction and customer permanence in the portfolio, the adjustment was measured using estimated discounted cash flows.

 

(4)         Fibria has concession contracts and port assets to assist in port operations in Brazil. For fair value measurement of these assets was considered the income approach, the Multi Period Excess Earnings Method (“MPEEM”) method that measures the present value of the income that will be generated during the remaining useful life of the asset and method of direct cost differential.

 

(5)         In the business combination, for the contingencies fair value measurement, whose chances of loss were classified as possible and remote, Fibria’s Management and its external and independent advisors were considered for their fair values, whose amounts were measured based on the analyzes of Fibria’s external lawyers.

 

(6)         The adjustment to fair value of loans and financing was measured based on the fair value of the Bonds, based on the quotation of the security in the secondary market, and the adjustment to present value considering the market rate at the base date on December 31, 2018.

 

9


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

(7)         For the measurement of the fair value of the taxes to be recovered, the amount to be recovered, discounted to the present value considering the expected Selic rate for the tax period, was considered.

 

(8)         In other net assets and liabilities, including supply contracts, accounts receivable and advances to suppliers, the income evaluation methodology, the present value and the direct cost differential were used.

 

(9)         Deferred income tax on fair value adjustments of assets of Veracel and Portocel. For the remaining fair value, we did not recognize deferred income taxes liabilities due to Fibria’s Legal Merger in April 2019.

 

(10)  Goodwill is attributable to the strong market position and expected future profitability of Fibria in negotiations in the eucalyptus pulp market.

 

For more information on the business combination refer note 13.4.

 

1.1.2                              Approval of the legal merger of Fibria

 

On April 1, 2019, the Company approved in the Extraordinary Shareholders Meeting of Suzano the legal merger of Fibria, wholly-owned subsidiary of Suzano, with the transfer of all its equity to Suzano and its consequent winding up (“Legal Merger”), provided that the share capital of the Company not changed due to the Legal Merger. Because of the Legal Merger, the Suzano succeeded Fibria in all its rights and obligations.

 

2                                                  Presentation of the unaudited condensed consolidated interim financial information

 

2.1                                        Preparation basis and presentation

 

The unaudited consolidated condensed interim financial information was prepared and is presented in accordance with the international standard IAS 34 Interim Financial Reporting and disclose all the applicable significant information related to the financial information, which is consistent with the information utilized by management in the performance of its duties.

 

The unaudited consolidated condensed interim financial information was prepared using the historical cost as the basis of value, except for certain financial assets and liabilities and biological assets that are measured at fair value.

 

2.2                                        Unaudited Condensed Consolidated Interim Financial Information

 

The unaudited condensed consolidated interim financial information was prepared based on the information of Suzano and its subsidiaries on the reference date, as well as in accordance with consistent accounting practices and policies.

 

The subsidiaries are consolidated from the date control is obtained until the date that control ceases to exist. For jointly controlled operations, the balances of assets, liabilities, revenues and expenses are proportionally recognized in relation to the participation in the joint operation. In the case of joint control with other companies, these investments are accounted for using the equity method.

 

10


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

In the consolidation process, the balances in the balance sheet and income statement accounts corresponding to the transactions carried out with subsidiaries are eliminated, as well as the unrealized gains and losses and the investments in these subsidiaries and their respective equity accounting results.

 

The unaudited condensed consolidated interim financial information of the Balance Sheet, Statements of Income (loss), Statements of Comprehensive Income (loss), Statements of Changes in Equity and Statements of Cash Flows,  as well the corresponding notes to the financial information regarding to the six-month period ended June 30, 2019, existing on this unaudited condensed consolidated interim financial information are not comparable with the last annual financial statements as at December 31, 2018 and the unaudited condensed consolidated interim financial information for the six-month period ended June 30, 2018 due to the conclusion of the business combination of Fibria in January 2019, as disclosed in note 1.1 above. During the period from January 1, 2019 to March 31, 2019 Suzano consolidated Fibria’s interim accounting information. However, as from April 1, 2019, Fibria was merged into Suzano, as note 1.1.2.

 

Companies included in the Company’s unaudited condensed consolidated interim financial information:

 

11


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

 

 

 

 

Interest in capital (%)

 

Investee

 

Type of
interest

 

June 30,
2019

 

December 31,
2018

 

AGFA — Com. Adm. e Participações Ltda.

 

Direct

 

100

%

100

%

Asapir Produção Florestal e Comércio Ltda. (1)

 

Direct

 

100

%

50

%

Comercial e Agrícola Paineiras Ltda.

 

Direct/Indirect

 

100

%

100

%

Eucalipto Holding S.A. (2)

 

Direct

 

 

 

100

%

Facepa - Fábrica de papel da Amazônia S.A.

 

Direct/Indirect

 

92.8

%

92.8

%

Fibria Celulose (USA) Inc.

 

Direct

 

100

%

 

 

Fibria Terminal de Celulose de Santos SPE S.A.

 

Direct

 

100

%

 

 

Fibria Innovations Inc.

 

Direct

 

100

%

 

 

Fibria International Trade GmbH

 

Direct

 

100

%

 

 

Fibria Overseas Finance Ltd.

 

Direct

 

100

%

 

 

Fibria Overseas Holding KFT.

 

Direct

 

100

%

 

 

Fibria Terminais Portuários S.A.

 

Direct

 

100

%

 

 

Fibria Trading International

 

Direct

 

100

%

 

 

FuturaGene AgriDev Xinjiang Company Ltd

 

Indirect

 

100

%

100

%

FuturaGene Biotechnology Shangai Company Ltd.

 

Indirect

 

100

%

100

%

FuturaGene Brasil Tecnologia Ltda.

 

Indirect

 

100

%

100

%

FuturaGene Delaware Inc.

 

Indirect

 

100

%

100

%

FuturaGene Hong Kong Ltd.

 

Indirect

 

100

%

100

%

FuturaGene Inc.

 

Indirect

 

100

%

100

%

FuturaGene Israel Ltd.

 

Indirect

 

100

%

100

%

FuturaGene Ltd.

 

Indirect

 

100

%

100

%

F&E Participações do Brasil Ltda.

 

Direct

 

100

%

 

 

F&E Tecnologia do Brasil S.A.

 

Direct

 

100

%

 

 

Gansu FuturaGene Biotech Co. Ltd.

 

Indirect

 

100

%

100

%

Itacel - Terminal de Celulose de Itaqui S.A.

 

Direct

 

100

%

 

 

Maxcel Empreendimentos e Participações S.A.

 

Direct

 

100

%

100

%

Mucuri Energética S.A.

 

Direct

 

100

%

100

%

Ondurman Empreendimentos Imobiliários Ltda.

 

Direct/Indirect

 

100

%

100

%

Paineiras Logística e Transporte Ltda.

 

Direct/Indirect

 

100

%

100

%

Portocel - Terminal Espec. Barra do Riacho S.A.

 

Direct

 

51

%

 

 

Projetos Especiais e Investimentos Ltda.

 

Direct

 

100

%

 

 

Stenfar S.A. Indl. Coml. Imp. Y. Exp.

 

Direct/ Indirect

 

100

%

100

%

Sun Paper and Board Limited (3)

 

Direct

 

 

 

100

%

Suzano Áustria GmbH

 

Direct

 

100

%

100

%

Suzano Luxembourg

 

Direct

 

100

%

100

%

Suzano Pulp and Paper America Inc.

 

Direct

 

100

%

100

%

Suzano Pulp and Paper Europe S.A.

 

Direct

 

100

%

100

%

Suzano Trading Ltd.

 

Direct

 

100

%

100

%

Veracel Celulose S.A.

 

Joint operation

 

50

%

 

 

 


(1)     The full control was acquired arising from the business combination with Fibria.

 

(2)     Company merged on January 2, 2019, as mentioned in note 1.1.1.1.

 

(3)     Company dissolution on June 2, 2019.

 

On January 21, 2019, Voto — Votorantim Overseas Trading Operations IV Limited (former Fibria’s joint operation) repurchased its shares owned by Fibria.

 

12


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

3                                                  Accounting Policies

 

The unaudited condensed consolidated interim financial information was prepared using accounting practices consistent with those used in the preparation of the annual financial statements at December 31, 2018, except for the application of the new accounting standards as of January 1, 2019, described below and which the estimated impacts were previously disclosed in the annual financial statements as of December 31, 2018.

 

The unaudited condensed consolidated interim financial information should be read in conjunction with the annual financial statements of the Company and Fibria for the year ended December 31, 2018, considering that its purpose is to provide an update on the activities, events and significant circumstances in relation to those presented in the annual financial statements.

 

The following accounting practices were not described in the notes to the financial statements of Suzano as of December 31, 2018, but are relevant for this quarter, especially considering the business combination with Fibria, as described in note 1.1.1.

 

3.1                                        New Accounting Policies Adopted

 

3.1.1                              Leases — IFRS 16

 

The Company adopted IFRS 16 as of January 1, 2019.

 

This standard determines that lessees must recognize future liabilities in their liabilities and their right to use the leased asset for all lease agreements, with exemption allowed to short-term or low-value contracts. Short-term or low-value contracts for the exemption of the standard refers to contracts where the individual value of the assets is lower than US$ 5,000 and maturity date is before 12 months, represented, mainly, by equipment of technology and vehicles. The Company adopted the standard using a modified retrospective approach that does not require the restatement of the comparative balances.

 

In adopting IFRS 16, the Company recognized the lease liabilities in relation to the agreements that meet the definition of lease, whose liabilities were measured at the present value of the remaining lease payments, discounted based on the incremental loan rate. Assets associated with the right of use were measured at the amount equal to the lease liability on January 1st, 2019, with no impact on retained earnings.

 

The Company used the following practical expedients allowed by the standard:

 

a) The use of a single discount rate for a portfolio of leases with similar characteristics;

 

b) Leases whose maturity will occur within 12 months of the date of initial adoption of the standard, accounting was as short-term leases directly in the income statement;

 

13


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

c) The accounting of lease payments as expenses in the case of leases for which the underlying asset is of low value;

 

d) The use of hindsight in determining the lease term, when the agreement contains options to extend or terminate the lease; and

 

e) The Company excluded initial direct costs of measuring the right to use asset at the date of initial adoption.

 

The effects of adopting this new standard are presented in note 18.

 

3.1.2                              Uncertainty over Income Tax Treatments — IFRIC 23

 

The interpretation is applicable when there are uncertainties as to the acceptance of the treatment by the Fiscal Authority. If acceptance is not likely, the values of tax assets and liabilities should be adjusted to reflect the best resolution of the uncertainty.

 

The Company has evaluated the changes introduced by this new standard and based on the analysis carried out, did not identify material changes that have an impact on its unaudited condensed consolidated interim financial information, or alter the recognition and measurement of uncertainties about tax treatment of income.

 

3.1.3                              Fair value amortization of subsidiaries

 

Fair value amortization of assets and liabilities are classified in cost of goods sold, selling, general and administrative expenses, other operating income (expenses) net and financial result, according to the realization of the items that originated them.

 

3.1.4                              Reclassification — Statements of cash flows

 

The Company made certain reclassifications on its Statements of cash flows regarding the six-month period ended June 30, 2018, substantially in operating activities, for a better comparison with the Statements of cash flows for the six-month period ended June 30, 2019.

 

3.1.5                              Revaluation of investment — Ensyn

 

The Ensyn investment was previously classified as financial investment measured through other comprehensive income, however in the second quarter of 2019, based on the shareholders’ agreement and recent capital contribution to Ensyn, the Company increased its stake in this investment and obtained significant influence. Therefore,  as from the second quarter of 2019, the Company has recorded its investment prospectively under the equity method using the fair value as deemed cost’ method, with the consequent presentation of the investment under “Investments in subsidiaries, affiliates, joint operations and joint ventures” and  no longer under “Other investments”, as disclosed in note 13.2.

 

14


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

3.1.6                              Biological assets

 

Considering that Suzano used different assumptions to the biological assets fair value measurements that Fibria prior to the acquisition, in the first measurement after business combination, the Company reviewed its assumption for “effective planting area”, keeping the immature forest (up to 2 years from the date of planting) at historical cost.  As a result of the Management’s considers that during this period, the historical cost of biological assets approximates to its fair value. Additionally, the purpose of this change is to reflect the experience acquired in the biological assets measurements process and the alignment of calculation approach with the Company’s forest management, which perform continuous forest inventories for the purpose of estimating the wood stock or future production forecast, represented by the average annual increment (“IMA”), from the 3rd year of planting.

 

Considering the fact that in the first two years of forest formation, the historical cost approximates to its fair value, as described above, this assumption alignment did not generate significant impacts on the Company’s fininancial statements.

 

3.2                                        New standards, revisions and interpretations not yet in force

 

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company’s condensed consolidated interim financial information.

 

15


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

4                                                  Financial Instruments and Risks Management

 

4.1                                        Financial risks management

 

4.1.1                              Overview

 

In the six-month period ended June 30, 2019, there were no significant changes in the financial risk management policies and procedures compared to those reported in note 4 to the financial statements of December 31, 2018.

 

4.1.2                              Rating

 

All operations with financial instruments are recognized in the Company’s interim financial information, as shown below in the following categories:

 

 

 

June 30,
2019

 

December 31,
2018

 

Assets

 

 

 

 

 

At amortized cost

 

 

 

 

 

Cash and cash equivalents (note 5)

 

4,104,641

 

4,387,453

 

Trade accounts receivable (note 7)

 

2,895,714

 

2,537,058

 

Other assets

 

547,132

 

263,110

 

 

 

7,547,487

 

7,187,621

 

 

 

 

 

 

 

At fair value through comprehensive income

 

 

 

 

 

Other investments (note 13)

 

40,705

 

 

 

 

 

40,705

 

 

 

 

 

 

 

 

 

At fair value through profit and loss

 

 

 

 

 

Derivative financial instruments (note 4)

 

1,392,773

 

493,934

 

Financial Investments (note 6)

 

3,867,505

 

21,098,565

 

 

 

5,260,278

 

21,592,499

 

 

 

12,848,470

 

28,780,120

 

Liabilities

 

 

 

 

 

At amortized cost

 

 

 

 

 

Loans and financing (note 17.1)

 

55,816,228

 

31,074,056

 

Debentures (note 17.8)

 

4,663,506

 

4,663,453

 

Accounts payable for lease operations (note 18.2)

 

4,359,191

 

 

 

Accounts payable with acquisition of assets and subsidiaries

 

1,013,776

 

992,512

 

Suppliers and other liabilities

 

4,494,257

 

1,037,220

 

 

 

70,346,958

 

37,767,241

 

At fair value through profit and loss

 

 

 

 

 

Derivative financial instruments (note 4)

 

2,646,795

 

1,636,700

 

 

 

2,646,795

 

1,636,700

 

 

 

72,993,753

 

39,403,941

 

 

16


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

4.1.3                              Fair value of loans and financing

 

The following is a breakdown of the estimated fair values of loans and financing:

 

 

 

Yield used to
discount (*)

 

June 30,
2019

 

December 31,
2018

 

Quoted in the secondary market

 

 

 

 

 

 

 

In foreign currency

 

 

 

 

 

 

 

Bonds

 

US$

 

27,966,554

 

15,035,165

 

Estimated to present value

 

 

 

 

 

 

 

In foreign currency

 

 

 

 

 

 

 

Export credits (pre-payment)

 

LIBOR US$

 

17,037,205

 

12,819,072

 

Export credits (Finnvera)

 

LIBOR US$

 

 

 

832,907

 

Export credits (ACC/ACE)

 

DI 1

 

1,770,523

 

1,732,088

 

In local currency

 

 

 

 

 

 

 

BNDES — TJLP

 

DI 1

 

2,110,429

 

206,601

 

BNDES — Fixed

 

DI 1

 

139,955

 

348,827

 

BNDES — Selic (“Special Settlement and Custody System”)

 

DI 1

 

665,314

 

 

 

BNDES - Currency basket

 

DI 1

 

64,270

 

169,243

 

CRA (“Agribusiness Receivables Certificate”)

 

DI 1

 

5,895,713

 

2,383,775

 

FINAME (“Special Agency of Industrial Financing”)

 

 

 

24,059

 

 

 

FINEP (“Financier of Studies and Projects”)

 

DI 1

 

9,032

 

 

 

NCE (“Export Credit Notes”)

 

DI 1

 

1,678,883

 

1,501,623

 

NCR (“Rural Credit Notes”)

 

DI 1

 

284,381

 

297,375

 

FDCO (“West Center Development Fund”)

 

DI 1

 

585,013

 

 

 

 

 

 

 

58,231,331

 

35,326,676

 

 

The Company’s Management considers that for its other financial assets and liabilities measured at amortized cost, its book values approximate their fair values and therefore the information on their fair values is not being presented.

 

4.2                                        Liquidity risk

 

The following are the remaining contractual maturities of consolidated financial liabilities at the reporting date. The following amounts are cash flows, are undiscounted and include contractual interest payments and exchange variation, and therefore may not be reconciled with the amounts disclosed in the balance sheet.

 

 

 

June 30,
2019

 

 

 

Total Book
Value

 

Total Future
Value

 

Up to 1
year

 

1 - 2
years

 

2 - 5
years

 

More than 5
years

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade accounts payables

 

3,986,488

 

3,986,488

 

3,986,488

 

 

 

 

 

 

 

Loans and financing

 

55,816,228

 

82,480,590

 

6,762,404

 

6,888,603

 

28,551,038

 

40,278,545

 

Debentures

 

4,663,506

 

7,129,003

 

301,727

 

323,739

 

1,189,807

 

5,313,730

 

Lease liabilities

 

4,359,191

 

6,847,630

 

613,876

 

679,254

 

1,509,954

 

4,044,546

 

Liabilities for asset acquisitions and subsidiaries

 

1,013,776

 

1,093,318

 

497,119

 

100,001

 

313,248

 

182,950

 

Derivative financial instruments

 

2,646,795

 

3,991,708

 

641,638

 

568,350

 

742,435

 

2,039,285

 

Other liabilities

 

507,769

 

507,769

 

375,704

 

132,065

 

 

 

 

 

 

 

72,993,753

 

106,036,506

 

13,178,956

 

8,692,012

 

32,306,482

 

51,859,056

 

 

17


 

Suzano S.A.

Notes to the unaudited condensed consolidated interim financial information as of June 30, 2019

(In thousands of R$, unless otherwise stated)

 

 

 

December 31,
2018

 

 

 

Total Book
Value

 

Total Future
Value

 

Up to 1
year

 

1 - 2
years

 

2 - 5
years

 

More than
5 years

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade accounts payables

 

632,565

 

632,565

 

632,565

 

 

 

 

 

 

 

Loans and financing

 

31,074,056

 

45,997,323

 

4,818,397

 

3,672,268

 

16,850,840

 

20,655,818

 

Debentures

 

4,663,453

 

8,022,759

 

340,044

 

419,401

 

1,521,757

 

5,741,556

 

Liabilities for asset acquisitions and subsidiaries

 

992,512

 

1,099,331

 

495,862

 

100,715

 

316,730

 

186,023

 

Derivative financial instruments

 

1,636,700

 

2,149,710

 

790,679

 

736,715

 

465,853

 

156,462

 

Other liabilities

 

404,655

 

404,655

 

367,314

 

37,341

 

 

 

 

 

 

 

39,403,941

 

58,306,342

 

7,444,861

 

4,966,440

 

19,155,180

 

26,739,859

 

 

4.3                                        Market risk

 

4.3.1                              Exchange rate risk

 

The following table shows the net exposure of assets and liabilities in foreign currency, primarily the U.S. dollar:

 

 

 

June 30,
2019

 

December 31,
2018

 

Assets

 

 

 

 

 

Cash and cash equivalents