Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document and Entity Information | |
Entity Registrant Name | Suzano S.A. |
Document Type | 6-K/A |
Document Period End Date | Jun. 30, 2020 |
Entity Central Index Key | 0000909327 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT | ||
Cash and cash equivalents | R$ 10473701 | R$ 3249127 |
Marketable securities | 2,030,560 | 6,150,631 |
Trade accounts receivable | 3,762,875 | 3,035,817 |
Inventories | 4,206,778 | 4,685,595 |
Recoverable taxes | 888,245 | 997,201 |
Derivative financial instruments | 152,978 | 260,273 |
Advances to suppliers | 106,636 | 170,481 |
Other assets | 281,471 | 335,112 |
Total current assets | 21,903,244 | 18,884,237 |
NON CURRENT | ||
Marketable securities | 182,936 | 179,703 |
Recoverable taxes | 712,279 | 708,914 |
Deferred taxes | 10,454,646 | 2,134,040 |
Derivative financial instruments | 925,459 | 838,699 |
Advances to suppliers | 1,149,832 | 1,087,149 |
Judicial deposits | 268,462 | 268,672 |
Other assets | 231,633 | 228,881 |
Biological assets | 10,672,724 | 10,571,499 |
Investments | 325,420 | 322,446 |
Property, plant and equipment | 40,242,196 | 41,120,945 |
Right of use | 4,199,804 | 3,850,237 |
Intangible | 17,225,097 | 17,712,803 |
Total non-current | 86,590,488 | 79,023,988 |
TOTAL ASSET | 108,493,732 | 97,908,225 |
CURRENT | ||
Trade accounts payable | 2,081,533 | 2,376,459 |
Loans, financing and debentures | 5,546,123 | 6,227,951 |
Lease liabilities | 704,174 | 656,844 |
Derivative financial instruments | 4,529,091 | 893,413 |
Taxes payable | 274,858 | 307,639 |
Payroll and charges | 380,762 | 400,435 |
Liabilities for assets acquisitions and subsidiaries | 127,721 | 94,414 |
Dividends payable | 4,891 | 5,720 |
Advance from customers | 31,856 | 59,982 |
Other liabilities | 252,972 | 456,338 |
Total current liabilities | 13,933,981 | 11,479,195 |
NON CURRENT | ||
Loans, financing and debentures | 75,082,454 | 57,456,375 |
Lease liabilities | 4,469,798 | 3,327,226 |
Derivative financial instruments | 7,369,241 | 2,024,500 |
Liabilities for assets acquisitions and subsidiaries | 530,414 | 447,201 |
Provision for judicial liabilities | 3,441,451 | 3,512,477 |
Employee benefit plans | 744,105 | 736,179 |
Deferred taxes | 75,354 | 578,875 |
Share-based compensation plans | 151,365 | 136,505 |
Other liabilities | 84,134 | 121,723 |
Total non-current liabilities | 91,948,316 | 68,341,061 |
TOTAL LIABILITIES | 105,882,297 | 79,820,256 |
EQUITY | ||
Share capital | 9,235,546 | 9,235,546 |
Capital reserves | 6,200,079 | 6,198,599 |
Retained earnings reserves | 317,144 | 317,144 |
Other reserves | 2,191,704 | 2,221,341 |
Retained loss | (15,453,035) | |
Controlling shareholders | 2,491,438 | 17,972,630 |
Non-controlling interest | 119,997 | 115,339 |
Total equity | 2,611,435 | 18,087,969 |
TOTAL LIABILITIES AND EQUITY | R$ 108493732 | R$ 97908225 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||
NET SALES | R$ 7995673 | R$ 6665082 | R$ 14976466 | R$ 12364081 |
Cost of sales | (4,788,694) | (5,222,119) | (9,608,693) | (9,947,012) |
GROSS PROFIT | 3,206,979 | 1,442,963 | 5,367,773 | 2,417,069 |
OPERATING INCOME (EXPENSES) | ||||
Selling | (547,098) | (456,981) | (1,062,034) | (898,284) |
General and administrative | (335,715) | (278,031) | (650,551) | (608,796) |
Income (loss) from associates and joint ventures | (3,663) | 3,911 | (2,952) | 5,569 |
Other, net | 195,671 | 171,199 | 212,402 | 152,315 |
OPERATING PROFIT BEFORE NET FINANCIAL INCOME (EXPENSES) | 2,516,174 | 883,061 | 3,864,638 | 1,067,873 |
NET FINANCIAL INCOME (EXPENSES) | ||||
Financial expenses | (1,033,126) | (1,086,192) | (2,119,550) | (2,078,996) |
Financial income | 82,419 | 149,607 | 203,173 | 298,929 |
Derivative financial instruments | (1,776,322) | 257,427 | (10,835,114) | (379,507) |
Monetary and exchange variations, net | (2,930,209) | 758,223 | (15,349,795) | 302,496 |
NET INCOME (LOSS) BEFORE TAXES | (3,141,064) | 962,126 | (24,236,648) | (789,205) |
Current income taxes | (3,469) | (62,329) | (57,829) | (191,578) |
Deferred income taxes | 1,092,015 | (199,949) | 8,822,898 | 451,499 |
NET INCOME (LOSS) FOR THE PERIOD | (2,052,518) | 699,848 | (15,471,579) | (529,284) |
Attributable to | ||||
Controlling shareholders' | (2,057,101) | 700,548 | (15,479,631) | (526,255) |
Non-controlling interest | R$ 4583 | R$ 700 | R$ 8052 | R$ 3029 |
Earnings (Loss) per share | ||||
Basic | R$ 1.52466 | R$ 0.51922 | R$ 11.47301 | R$ 0.39004 |
Diluted | R$ 1.52466 | R$ 0.51922 | R$ 11.47301 | R$ 0.39004 |
CONSOLIDATE STATEMENTS OF COMPR
CONSOLIDATE STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net Income (loss) for the period | R$ 2052518 | R$ 699848 | R$ 15471579 | R$ 529284 |
Items that will not be reclassified to profit or loss | ||||
Tax effect of the subsidiary effect | (495) | (617) | (869) | (1,117) |
Total other comprehensive income that will not be reclassified to profit or loss, net of tax | (2,051,557) | 701,047 | (15,469,892) | (527,115) |
Items that may be subsequently reclassified to profit or loss | ||||
Exchange variation on conversion of financial statements and on foreign investments | (1,451) | (20,158) | (4,811) | (8,413) |
Total comprehensive Income (loss) for the period | (2,053,008) | 680,889 | (15,474,703) | (535,528) |
Attributable to | ||||
Controlling shareholders' | (2,057,591) | 681,589 | (15,482,755) | (532,499) |
Non-controlling interest | 4,583 | (700) | 8,052 | (3,029) |
Ensyn Corporation | ||||
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 | 1,833 | 3,156 | ||
CelluForce Inc. | ||||
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 | R$ 1456 | 70 | R$ 2556 | 532 |
Spinnova Oy | ||||
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 | R$ 87 | R$ 402 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - BRL (R$) R$ in Thousands | Share Capital | Share issuance costs | Tax incentives | Stock options granted | Share issuance costs | Other | Treasury shares | Tax incentives | Legal Reserve | Reserve for capital increase | Special statutory reserve | Dividends proposed | Other reserves | Retained earnings | Total | Non-controlling interest | Total |
Balances, beginning of the period at Dec. 31, 2018 | R$ 6241753 | R$ 684563 | R$ 5100 | R$ 15442 | R$ 218265 | R$ 422814 | R$ 1730629 | R$ 242612 | R$ 596534 | R$ 2321708 | R$ 12012006 | R$ 13928 | R$ 12025934 | ||||
Total comprehensive income (loss) | |||||||||||||||||
Net Income (loss) for the period | R$ 526255 | (526,255) | (3,029) | (529,284) | |||||||||||||
Other comprehensive income (loss) for the period | (6,244) | (6,244) | (6,244) | ||||||||||||||
Transactions with shareholders: | |||||||||||||||||
Share capital increase | 3,027,528 | 3,027,528 | 3,027,528 | ||||||||||||||
Share issuance costs | R$ 33735 | R$ 15442 | (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 | R$ 596534 | (596,534) | (596,534) | ||||||||||||||
Internal changes in equity: | |||||||||||||||||
Transfers of tax incentives | R$ 684563 | R$ 684563 | |||||||||||||||
Partial realization of deemed cost, net of taxes | (26,576) | 26,576 | |||||||||||||||
Realization of asset revaluation reserve | 6,281 | 6,281 | 6,281 | ||||||||||||||
Issue of common shares related to business combination | R$ 6410885 | 6,410,885 | 6,410,885 | ||||||||||||||
Balances, end of the period at Jun. 30, 2019 | 9,269,281 | (33,735) | 7,738 | 6,410,885 | (218,265) | R$ 684563 | 422,814 | R$ 1730629 | R$ 242612 | 2,295,169 | (498,557) | 20,313,134 | 116,346 | 20,429,480 | |||
Balances, beginning of the period at Dec. 31, 2019 | 9,269,281 | (33,735) | 5,979 | 6,410,885 | (218,265) | 317,144 | 2,221,341 | 17,972,630 | 115,339 | 18,087,969 | |||||||
Total comprehensive income (loss) | |||||||||||||||||
Net Income (loss) for the period | (15,479,631) | (15,479,631) | 8,052 | (15,471,579) | |||||||||||||
Other comprehensive income (loss) for the period | (3,124) | (3,124) | (3,124) | ||||||||||||||
Transactions with shareholders: | |||||||||||||||||
Stock options granted | 1,480 | 1,480 | 1,480 | ||||||||||||||
Non-controlling interest arising from business combination | (3,394) | (3,394) | |||||||||||||||
Unclaimed dividends forfeited | 83 | 83 | 83 | ||||||||||||||
Internal changes in equity: | |||||||||||||||||
Partial realization of deemed cost, net of taxes | (26,513) | 26,513 | |||||||||||||||
Balances, end of the period at Jun. 30, 2020 | R$ 9269281 | R$ 33735 | R$ 7459 | R$ 6410885 | R$ 218265 | R$ 317144 | R$ 2191704 | R$ 15453035 | R$ 2491438 | R$ 119997 | R$ 2611435 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net Income (loss) for the period | R$ 15471579 | R$ 529284 |
Adjustment to | ||
Depreciation, depletion and amortization (Notes 26 and 29) | 3,238,678 | 4,631,559 |
Amortization of right of use (Note 19.1) | 93,309 | 63,889 |
Sublease of ships | (11,365) | |
Interest expense on lease liabilities | 203,488 | 96,993 |
Results from sale, disposals and provision for losses (impairment) of property, plant and equipment and biological assets, net (Note 29) | (9,343) | 3,504 |
Income (loss) from associates and joint ventures (Note 14.2) | 2,952 | (5,569) |
Exchange rate and monetary variations, net (Note 26) | 15,349,795 | (302,496) |
Interest expenses with financing, loans and debentures, net (Note 18.2) | 1,736,775 | 1,676,115 |
Capitalized interest | (7,940) | (1,417) |
Accrual of interest on marketable securities | (74,102) | (247,053) |
Amortization of fundraising costs (notes 18.2) | 41,268 | 159,856 |
Derivative (gains) losses, net (Note 26) | 10,835,114 | 379,507 |
Fair value adjustment of biological assets (Note 13) | (173,733) | (83,453) |
Deferred income tax and social contribution (Note 12.3) | (8,822,898) | (451,499) |
Interest on employee benefits (Note 21.2) | 26,527 | 26,842 |
Provision for (reversal of) judicial liabilities, net | (22,252) | 2,475 |
Allowance for doubtful accounts, net (Note 7.3) | 10,250 | (9,928) |
Provision for (reversal of) inventory losses, net (Note 8.1) | 32,620 | (12,028) |
Provision for loss of ICMS credits, net (Note 9.1) | 48,151 | 69,191 |
Other | 12,798 | 66,655 |
Decrease (increase) in assets | ||
Trade accounts receivables | 206,570 | 1,065,488 |
Inventories | 466,475 | (1,208,554) |
Recoverable taxes | 114,501 | (18,032) |
Other assets | 161,268 | 46,023 |
Increase (decrease) in liabilities | ||
Trade accounts payables | (352,975) | (817) |
Tax payable | 24,235 | 252,757 |
Payroll and charges | (19,679) | (262,909) |
Other liabilities | (343,868) | (350,419) |
Cash provided by operations, net | 7,295,040 | 5,057,396 |
Payment of interest with financing, loans and debentures | (1,682,413) | (1,462,681) |
Interest received from marketable securities | 126,579 | 285,922 |
Payment of income taxes | (62,694) | (405,257) |
Cash provided by operating activities | 5,676,512 | 3,475,380 |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment (note 15) | (559,126) | (1,147,071) |
Additions to intangible assets (note 16) | (513) | (718) |
Additions to biological assets (note 13) | (1,401,424) | (1,508,161) |
Proceeds from sale of property, plant and equipment | 61,887 | 83,695 |
Increase of capital in subsidiaries and associates (Note 14.3) | (11,216) | |
Marketable securities, net | 4,064,361 | 21,833,286 |
Advance for acquisition of wood from operations with development | 6,544 | (212,150) |
Acquisition of subsidiaries, net cash | (26,002,540) | |
Other investments | (269) | |
Cash provided (used) in investing activities, net | 2,171,729 | (6,965,144) |
Cash flow from financing activities | ||
Proceeds from loans, financing and debentures (note 18.2) | 6,700,529 | 16,225,071 |
Payment of derivative transactions (note 4.5.4) | (1,834,250) | (4,662) |
Payment of loans, financing and debentures (note 18.2) | (6,224,940) | (12,011,492) |
Payment of leases (note 19.2) | (354,289) | (270,586) |
Payment of dividends | (601,731) | |
Liabilities for assets acquisitions and subsidiaries | (5,670) | (3,425) |
Other financing | 2,379 | |
Cash provided (used) by financing activities | (1,718,620) | 3,335,554 |
Exchange variation on cash and cash equivalents | 1,094,953 | (128,602) |
Increase (reduction) in cash and cash equivalents, net | 7,224,574 | (282,812) |
Cash and cash equivalents at the beginning for the period | 3,249,127 | 4,387,453 |
Cash and cash equivalents at the end for the period | 10,473,701 | 4,104,641 |
Increase (reduction) in cash and cash equivalents, net | R$ 7224574 | R$ 282812 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) R$ in Thousands | 6 Months Ended |
Jun. 30, 2019BRL (R$) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Amortization of inventories setup | R$ 2178903 |
COMPANY'S OPERATIONS
COMPANY'S OPERATIONS | 6 Months Ended |
Jun. 30, 2020 | |
COMPANY'S OPERATIONS | |
COMPANY'S OPERATIONS | 1. Suzano S.A., together with its subsidiaries (“Suzano” or collectively “Company”), is a public company with its headquarters office in the city of Salvador, State of Bahia, Brazil. Suzano owns shares traded in B3 S.A. (“ Brasil, Bolsa, Balcão - “B3”), listed on the New Market under the ticker SUZB3. On December 10, 2018, Suzano began trading its American Depositary Receipts ("ADRs") in a ratio of 1 (one) common share, 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”). The Company holds 11 industrial units, located in Aracruz (Espírito Santo, State), Belém (Pará, State), Eunápolis (Bahia, State) and Mucuri (Bahia, State), Fortaleza (Ceará, State), Imperatriz (Maranhão, State), Jacareí, Limeira, Rio Verde and Suzano (São Paulo, State) and Três Lagoas (Mato Grosso do Sul, 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 wholly-owned subsidiaries in Argentina, the United States of America, Switzerland, Austria and 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 45.85% of the common shares of its share capital. These unaudited condensed consolidated interim financial information was approved by Executive Board on August 12, 2020. 1.1. The Company holds equity interest in the following entities: % equity interest Type of Accounting June 30, December 31, Entity Main activity Country investment method 2020 2019 AGFA – Com. Adm. e Participações Ltda. Holding Brazil Direct Consolidated 100.00 % 100.00 % Asapir Produção Florestal e Comércio Ltda. Eucalyptus cultivation Brazil Direct Consolidated 100.00 % 100.00 % CelluForce Inc. Nanocrystalline pulp research and development Canada Direct Fair value through other comprehensive income 8.30 % 8.30 % Comercial e Agrícola Paineiras Ltda. Lease of reforestation land Brazil Direct Consolidated 99.99 % 99.99 % Ensyn Corporation Bio fuel research and development United States of America Direct Equity 25.30 % 25.30 % Facepa - Fábrica de Papel da Amazônia S.A. Industrialization and commercialization of tissue paper Brazil Direct/Indirect Consolidated 92.80 % 92.80 % Fibria Celulose (USA) Inc. Business office United States of America Direct Consolidated 100.00 % 100.00 % Fibria Terminal de Celulose de Santos SPE S.A. Port operation Brazil Direct Consolidated 100.00 % 100.00 % Fibria Overseas Finance Ltd. Financial fundraising Cayman Island Direct Consolidated 100.00 % 100.00 % Fibria Terminais Portuários S.A. Port operation Brazil Direct Consolidated 100.00 % 100.00 % FuturaGene AgriDev Xinjiang Company Ltd. Biotechnology research and development China Indirect Consolidated 100.00 % 100.00 % FuturaGene Biotechnology Shangai Company Ltd. Biotechnology research and development China Indirect Consolidated 100.00 % 100.00 % FuturaGene Brasil Tecnologia Ltda. Biotechnology research and development Brazil Direct/Indirect Consolidated 100.00 % 100.00 % FuturaGene Delaware Inc. Biotechnology research and development United States of America Indirect Consolidated 100.00 % 100.00 % FuturaGene Hong Kong Ltd. Biotechnology research and development Hong Kong Indirect Consolidated 100.00 % 100.00 % FuturaGene Inc. Biotechnology research and development United States of America Indirect Consolidated 100.00 % 100.00 % FuturaGene Israel Ltd. Biotechnology research and development Israel Indirect Consolidated 100.00 % 100.00 % FuturaGene Ltd. Biotechnology research and development England Indirect Consolidated 100.00 % 100.00 % F&E Tecnologia do Brasil S.A. (1) Biofuel production, except alcohol Brazil Direct Consolidated 100.00 % 100.00 % F&E Technologies LLC Biofuel production, except alcohol United States of America Direct Equity 50.00 % 50.00 % Gansu FuturaGene Biotech Co. Ltd. (2) Biotechnology research and development China Indirect Consolidated 100.00 % Ibema Companhia Brasileira de Papel Industrialization and commercialization of paperboard Brazil Direct Equity 49.90 % 49.90 % Itacel - Terminal de Celulose de Itaqui S.A. Port operation Brazil Indirect Consolidated 100.00 % 100.00 % Maxcel Empreendimentos e Participações S.A. Holding Brazil Direct Consolidated 100.00 % 100.00 % Mucuri Energética S.A. Power generation and distribution Brazil Direct Consolidated 100.00 % 100.00 % Ondurman Empreendimentos Imobiliários Ltda. Lease of reforestation land Brazil Direct/Indirect Consolidated 100.00 % 100.00 % Paineiras Logística e Transportes Ltda. Road freight transport Brazil Direct /Indirect Consolidated 100.00 % 100.00 % Portocel - Terminal Espec. Barra do Riacho S.A. Port operation Brazil Direct Consolidated 51.00 % 51.00 % Projetos Especiais e Investimentos Ltda. Commercialization of equipment and parts Brazil Direct Consolidated 100.00 % 100.00 % Rio Verde Participações e Propriedades Rurais S.A. (3) Forest assets Brazil Direct Consolidated 100.00 % 100.00 % Spinnova OY Research and development of sustainable raw materials (wood) for the textile industry Finland Direct Equity 24.06 % 24.06 % Stenfar S.A. Indl. Coml. Imp. Y. Exp. Commercialization of computer paper and materials Argentine Direct /Indirect Consolidated 100.00 % 100.00 % Suzano Austria GmbH. Business office Austria Direct Consolidated 100.00 % 100.00 % Suzano Canada Inc. Lignin research and development Canada Direct Consolidated 100.00 % 100.00 % Suzano International Trade GmbH. Business office Austria Direct Consolidated 100.00 % 100.00 % Suzano Participações do Brasil Ltda. (4) Holding Brazil Direct Consolidated 100.00 % Suzano Pulp and Paper America Inc. Business office United States of America Direct Consolidated 100.00 % 100.00 % Suzano Pulp and Paper Europe S.A. Business office Switzerland Direct Consolidated 100.00 % 100.00 % Suzano Shanghai Ltd. (5) Customer relationship services China Direct Consolidated 100.00 % Suzano Trading Ltd. Business office Cayman Island Direct Consolidated 100.00 % 100.00 % Suzano Trading International KFT Business office Hungary Direct Consolidated 100.00 % 100.00 % Veracel Celulose S.A. (6) Industrialization, commercialization and exportation of pulp Brazil Direct Consolidated 50.00 % 50.00 % 1) On May 31, 2020, reorganization of equity interest as a result of the merger of Suzano Participações do Brasil Ltda. by Suzano S.A. Previously, the participation of this entity was directly held by Suzano Participações do Brasil Ltda. and indirectly by Suzano S.A. After the merger, it was held directly by Suzano S.A. 2) On April 8, 2020, disposal of equity interest. 3) On May 31, 2020, reorganization of equity interest as a result of the merger of Suzano Participações do Brasil Ltda. by Suzano S.A. Previously, the participation of this entity was directly held by Suzano Participações do Brasil Ltda. and indirectly by Suzano S.A. After the merger, it was held directly by Suzano S.A. 4) On May 31, 2020, merger of the entity by Suzano S.A. 5) On February 26, 2020, establishment of legal entity arising from corporate reorganization. 6) Joint operation with Stora Enso, a company located in Finland 1.2. 1.2.1. With the advent of the pandemic COVID-19, Suzano has adopted and has maintained preventive and mitigating measures, in compliance with the rules and policies established by national and international health authorities, in order to minimize as far as possible, the harmful effects of the pandemic of COVID-19, popularly known as the new coronavirus, referring to the safety of people , society and their businesses. Thus Company's initiatives are based on three pillars: (i) protection for people (ii) protection for society and (iii) protection for business. (i) (ii) • Donation of toilet paper, napkins and disposable diapers produced by the Company for needy regions. • Acquisition of 159 respirators and 1,000,000 hospital masks for donation to the Federal and State Governments. • Participation in joint action with Positivo Tecnologia, Klabin, Flextronics and Embraer, to support the Brazilian company Magnamed to deliver respirators to the Federal Government until August 2020. Suzano's disbursement in this action was R$ 9,584. • Construction of a field hospital in Teixeira de Freitas (BA) in conjunction with Veracel, which has already been handed over to the state government and opened in July 2020. • Establishement a partnership with Fatec of Capão Bonito for the production of gel alcohol. • Loan of forklifts to move donations received by the Red Cross. • Maintenance of all direct jobs at this time. • Maintenance, for 90 days (from March to June 2020) of payment of 100% of the cost of the payroll of service providers' workers who had their activities suspended due to the pandemic, aiming at the consequent preservation of jobs. • Creation of the a support program for small suppliers, a social support program for small farmers to sell their products through the home delivery system in 38 communities supported by Suzano's Rural and Territorial Development Program (“PDRT”) in 5 states and social program with the objective of provide 125,000 masks in communities for donation in 5 states. • Launch a program to support its portfolio of small and medium-sized paper customers entitled “Tamo Junto” with the objective of ensuring that these companies have the financial and management capacity to resume activities. The disbursements made for carrying out the social actions implemented by Suzano, totaled R$48,024 through June 30, 2020 (Note 29). (iii) The paper and pulp sector were recognized by the World Health Organization (“WHO”), as well as by several countries, as a producer of goods essential to society. Therefore, in order to fulfill the responsibility arising from the essentiality of the business, Suzano has taken measures to ensure, to the greatest extent possible, operational normality and full service to its customers, increasing the level of wood and raw material inventories in the factories and has been advancing its inventories of finished goods product bringing them closer to their customers to mitigate possible risks of disruption in the factories' supply chain and the sale of their products. The current situation resulting from the coronavirus also implies a higher credit risk, especially for its customers in the paper business. Thus, the Company has also been monitoring the evolution of this risk and implementing measures to mitigate it, and so far, there has been no significant financial impact. Due to the social isolation measures adopted in Brazil and in several countries around the world, causing schools and offices to close, for example, the demand for printing and writing papers was reduced. In light of this situation, as announced by paper producers in several countries around the world, Suzano decided to temporarily reduce its paper production volume. As previously disclosed in the quarterly information for the period ended March 31, 2020, the Company temporarily stopped production at the paper production lines of the Mucuri and Rio Verde units. However, the activities of the factories were resumed at the beginning of July 2020. Finally, it is also worth noting that, as a result of the current scenario, the Company has made and maintained a vast communication effort to further increase the interaction with its main stakeholders, with the objective of guaranteeing the adequate transparency and flow of information with the them in a timely manner to the dynamics of the social and economic conjuncture. All the main communications made by the Company to update its measures and activities in the context of Covid-19, are available on the Company's Investor Relations website. |
BASIS OF PREPARATION AND PRESEN
BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION | |
BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION | 2. BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION The Company’s unaudited condensed consolidated interim financial information, of the six-month period ended June 30, 2020, are prepared in accordance with and in compliance with the international standard IAS 34 Interim Financial Reporting issued by the International Accounting Standards Board (“IASB”) 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 Company’s unaudited condensed consolidated interim financial information are expressed in thousands of Brazilian Reais (“R$”), as well as the amounts of other currencies disclosed in the unaudited condensed consolidated interim financial information, when applicable, were also expressed in thousands, unless otherwise stated. The preparation of unaudited condensed consolidated interim financial information requires Management to make judgments, use estimates and adopt assumptions in the process of applying accounting practices, that affect the disclosed amounts of revenues, expenses, assets and liabilities, including contingent liabilities. However, the uncertainty inherent to these judgements, assumptions and estimates could result in material adjustments to the carrying amount of certain assets and liabilities in future periods. The Company reviews its judgments, estimates and assumptions continually as disclosed in the annual financial statements for the year ended December 31, 2019 (Note 3.2.32). In the six-month period ended June 30, 2020, the Company reviewed the judgments, estimates and assumptions related to the measurement of the fair value of biological assets and the impairment test of the intangible asset, which are disclosed in the respective Notes 13 and 16 of this interim financial statement. The unaudited condensed consolidated interim financial information were prepared on the historical cost basis, except for the following material items recognized: (i) derivative and non-derivative financial instruments measured at fair value; (ii) share-based payments and employee benefits measured at fair value; (iii) biological assets measured at fair value; and (iv) deemed cost of property, plant and equipment. The main accounting polices applied in the preparation of these unaudited condensed consolidated interim financial information are presented in Note 3. The unaudited condensed consolidated interim financial information were prepared under the going concern assumption. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The unaudited condensed consolidated interim financial information was prepared based on the information of Suzano and its wholly-owned subsidiaries on the six-month period ended June 30, 2020, as well as in accordance with consistent accounting practices and policies. The unaudited condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended December 31, 2019, considering that its purpose is to provide an update on the activities, events and significant circumstances in relation to those disclosed in the consolidated financial statements. Therefore, unaudited condensed consolidated interim financial information focus on new activities, events and circumstances and do not duplicate the information previously disclosed, except when Management judges that the maintenance of the information is relevant. The accounting policies have been consistently applied to all consolidated companies. There were no changes on such policies and estimates calculation methodologies, except for the application of the new accounting policies as of January 1, 2020 and whose estimated impact was disclosed in the annual financial statements of December 31, 2019, as described in the Note 3.1. 3.1. New accounting policies and changes in the accounting policies adopted 3.1.1. Due to the merger with Fibria, the Company had several changes in the structure, activities and operations during 2019 that led management to conclude that they needed to reassess the functional currency of its subsidiaries whose functional currency was different from Brazilian Reais. Those facts resulted in the corporate reorganization, as well as, it has impacted how management conducted the Company's business in order to achieve the alignment between the cultures of the two Companies, the unification of processes, operating, tax systems and strategies, through synergy gains arising from the business combination. In this process some of Company’s wholly-owned subsidiaries were considered an extension of the activities of the parent company. These circumstances collectively justify the change in the functional currency to Brazilian Real and they have occurred gradually during 2019, therefore it was not practicable to determine the date of the change at a precise point during the reporting period. Thus, the Company changed the functional currency of those wholly-owned subsidiaries as of January 1, 2020. The cumulative translation adjustment (“CTA”) arising from the translation of a foreign operation previously recognized in other comprehensive income will not be reclassified from equity to profit or loss until the disposal of the operations. The total or partial disposal of interest in wholly-owned subsidiaries occurs through sale or dissolution, of all or part of operation. Therefore, the financial statements of foreign subsidiaries, whose functional currency was different from Brazilian Reais in 2019, were translated using the criteria established below: (i) assets and liabilities are translated at the exchange rate in effect at period-end; (ii) revenues and expenses are translated based on the monthly average rate; (iii) the cumulative effects of gains or losses upon translation are recognized as accumulated foreign currency translation adjustments component of other comprehensive income. And as from January 1, 2020, the financial statements of foreign subsidiaries are translated using the following criteria: (i) monetary assets and liabilities are translated at the exchange rate in effect at period-end; (ii) non-monetary assets and liabilities are translated at the historical rate of the transaction; (iii) revenues and expenses are translated based on monthly average rate; (iv) the cumulative effects of gains or losses upon translation are recognized in the other comprehensive income period-end. 3.1.2. This pronouncement was amended and clarifies definition of a “business”. It is also permitted a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.1.3. This pronouncement was amended and clarifies definition of a “material” and how it should be applied by (i) including in the definition guidance that until now has featured elsewhere in IFRS Standards; (ii) improving the explanations accompanying the definition; and (iii) ensuring that the definition of material is consistent across all IFRS Standards. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.1.4. This pronouncement was amended and includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts, the main changes are set forth below: (i) (ii) (iii) (iv) Previous definition New definition Asset : A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Asset : A present economic resource controlled by the entity as a result of past events. An economic resource is a right that has the potential to produce economic benefits. The new definition clarifies that an asset is an economic resource, and that the potential economic benefits no longer need to be “expected” to flow to the entity. Thus, they do not need to be certain or even likely, but if this is the case, the recognition and measurement of the asset may be affected. Liability : A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Liability : A present obligation of the entity to transfer an economic resource as a result of past events. The main difference is that the new definition clarifies that a liability is the obligation to transfer an economic resource, and not the ultimate outflow of economic benefits. The outflow also no longer needs to be ‘expected’, similar to the change in the definition of an asset, above. It was also introduced the concept of ‘no practical ability to avoid’ to the definition of an obligation, and factors used to assess this will depend on the nature of an entity’s duty or responsibility, which requires the use of judgement. Income : increases in economic benefits during the accounting period in the form of inflows or enhancements of assets, or decreases of liabilities, that result in increases in equity, other than those relating to contributions from equity participants. Income : Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims. . Expense: Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets, or incurrences of liabilities, that result in decreases in equity, other than those relating to distributions to equity participants. Expense: Decreases in assets, or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims (v) (vi) • • (vii) (viii) The Company assessed the content of this pronouncement and did not identify any material impacts. 3.2. This pronouncement was changed as a result of benefits related to Covid-19 granted to lessee under lease agreements. The Company assessed the content of this pronouncement and did not identify any impacts, for the clauses of the current lease agreements remained unchanged. 3.3. 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 unaudited consolidated condensed interim financial information. |
FINANCIAL INSTRUMENTS AND RISKS
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | 6 Months Ended |
Jun. 30, 2020 | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | 4. FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT 4.1. 4.1.1. In the six-month period ended June 30, 2020, 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, 2019. The Company maintained its conservative approach and strong cash and marketable securities position, as well as its hedge policy, during the crisis caused by the pandemic of COVID-19 and even though there were impacts on the fair value of its financial instruments due to the effects on all global economies, the impacts were as expected, according to sensitivity analyses disclosed in previous reports, and measures were taken in relation to the risks associated to the financial instruments, in particular to the risks of liquidity, credit and exchange rate variation, as described following items set forth. 4.1.2. All transactions with financial instruments are recognized for accounting purposes and classified in the following categories: June 30, December 31, Note 2020 2019 Assets Amortized cost Cash and cash equivalents 5 10,473,701 3,249,127 Trade accounts receivable 7 3,762,875 3,035,817 Other assets 513,104 563,993 14,749,680 6,848,937 Fair value through other comprehensive income Other investments 14 25,976 20,048 25,976 20,048 Fair value through profit or loss Derivative financial instruments 4.5 1,078,437 1,098,972 Marketable securities 6 2,213,496 6,330,334 3,291,933 7,429,306 18,067,589 14,298,291 Liabilities Amortized cost Loans, financing and debentures 18.1 80,628,577 63,684,326 Lease liabilities 19.2 5,173,972 3,984,070 Liabilities for assets acquisitions and subsidiaries 23 658,135 541,615 Trade accounts payable 17 2,081,533 2,376,459 Other liabilities 337,106 578,061 88,879,323 71,164,531 Fair value through profit or loss Derivative financial instruments 4.5 11,898,332 2,917,913 11,898,332 2,917,913 100,777,655 74,082,444 82,710,066 59,784,153 4.1.3. The estimated fair values of loans and financing are set forth below: Approach used June 30, December 31, to discount 2020 2019 Quoted in the secondary market In foreign currency Bonds Secondary Market 38,795,348 30,066,087 Estimated to present value In foreign currency Export credits ("Pre-payment") LIBOR 26,123,478 17,213,963 Export credits ("ACC/ACE") DI 1 799,183 575,521 In local currency BNP – Forest Financing DI 1 177,376 193,646 BNDES – TJLP DI 1 1,759,652 1,895,959 BNDES - TLP DI 1 523,828 535,812 BNDES – Fixed DI 1 95,259 113,979 BNDES – Selic ("Special Settlement and Custody System") DI 1 938,208 693,969 BNDES - Currency basket DI 1 61,488 54,420 CRA ("Agribusiness Receivables Certificate") DI 1 4,583,620 6,039,983 Debentures DI 1 5,416,351 5,534,691 FINAME ("Special Agency of Industrial Financing") DI 1 11,816 14,168 FINEP ("Financier of Studies and Projects") DI 1 1,287 5,138 NCE ("Export Credit Notes") DI 1 1,354,814 1,445,383 NCR ("Rural Credit Notes") DI 1 280,876 288,122 Export credits ("Pre-payment") DI 1 1,435,407 1,464,798 FDCO ("West Center Development Fund") DI 1 541,291 571,904 82,899,282 66,707,543 The Management considers that for its other financial liabilities measured at amortized cost, its book values approximate to their fair values and therefore the information on their fair values is not being presented. 4.2. As disclosed in note 4 to the financial statements as of December 31, 2019, the Company’s purpose is maintaining a strong cash and marketable securities position to meet its financial and operating obligations. The amount held as cash is used for payments expected in the normal course of its operations, while the cash surplus amount is invested in highly liquid financial investments according Cash Management Policy. The cash position is monitored by the Company's senior management, by means of management reports and participation in performance meetings with determined frequency. In the six-month period ended June 30, 2020, the impacts in cash and marketable securities were as expected and the Company believes that, eventually, the crisis scenario caused by the COVID-19 pandemic would be extend and the Brazilian Reais keep devalued against the U.S. Dollar, adjustments of derivative instruments that will mature in the coming months will be offset by higher cash generation, exceeding the cost of any adjustments to the respective due date. As material fact disclosed to the market on February 14, 2020, the Company, voluntarily prepaid the principal amount of U.S.$750,000 (equivalent, on the transaction date, to R$3,240,229), related to an export prepayment, with quarterly interest payments of 1.15% p.a. plus quarterly LIBOR, which was scheduled to mature in February 14, 2023. At the same time, the Company entered into a new transaction related to an export prepayment in the amount of U.S.$850,000 (equivalent, on the transaction date, to R$3,672,259), of 1.15% p.a. plus quarterly LIBOR, which was scheduled to mature in February 13, 2026. Furthermore, as material fact disclosed to the market on February 28, 2020, the Company through its wholly-owned subsidiary Suzano Trading Ltd. ("Suzano Trading") exercised its right to redeem all of the outstanding aggregate principal amount of the 5.875% senior notes issued by it and guaranteed by Suzano due 2021 ("2021 Notes") currently outstanding, in the total aggregate principal amount of U.S.$189,630. Such transactions were performed under market conditions, considered attractive by the Company, and even though they were carried out before the crisis caused by the COVID-19 pandemic, they were in line with the debt management strategy based on cost reduction and extension of the term portfolio, thus reinforcing our liquidity position. In line with the material fact disclosed to the market on March 30, 2020, there was a disbursement of U.S.$500,000 (equivalent, on the transaction date, to R$2,638,221) of its revolving credit facility maintained with certain financial institutions, of 1.30% plus quarterly LIBOR and maturity in February 2024. The disbursement is in line with the preventive measures that the Company has been taking to mitigate eventual impacts resulting from the COVID-19 pandemic and aims to bring even more strength to the liquidity position of the Company. The funds were credited on April 1, 2020. The remaining contractual maturities of financial liabilities are disclosed at the date of this financial information reporting date. The amounts as set forth below, consist in the undiscounted cash flows and include interest payments and exchange rate variation, and therefore may not be reconciled with the amounts disclosed in the balance sheet. June 30, 2020 Total book Total future Up to 1 1 - 2 2 - 5 More than value value year years years 5 years Liabilities Trade accounts payables 2,081,533 2,081,533 2,081,533 — — — Loans, financing and debentures (1) 80,628,577 110,480,401 7,742,122 4,575,792 45,904,453 52,258,034 Lease liabilities 5,173,972 9,733,128 842,789 1,566,704 2,064,169 5,259,466 Liabilities for asset acquisitions and subsidiaries 658,135 744,790 134,005 129,699 365,836 115,250 Derivative financial instruments (1) 11,898,332 18,155,523 4,556,320 1,415,206 4,726,006 7,457,991 Other liabilities 337,106 337,106 252,972 84,134 100,777,655 141,532,481 15,609,741 7,771,535 53,060,464 65,090,741 1) December 31, 2019 Total book Total future Up to 1 1 - 2 2 - 5 More than value value year years years 5 years Liabilities Trade accounts payables 2,376,459 2,376,459 2,376,459 — — — Loans, financing and debentures 63,684,326 89,708,210 8,501,278 5,692,149 29,088,292 46,426,491 Lease liabilities 3,984,070 7,109,966 559,525 1,426,011 1,186,386 3,938,044 Liabilities for asset acquisitions and subsidiaries 541,615 618,910 103,132 101,149 315,989 98,640 Derivative financial instruments 2,917,913 8,299,319 1,488,906 415,791 1,258,200 5,136,422 Other liabilities 578,061 578,061 456,338 121,723 74,082,444 108,690,925 13,485,638 7,756,823 31,848,867 55,599,597 4.3. In the six-month period ended June 30, 2020, there were no significant changes in the credit risk management policies and procedures compared to those reported in note 4 to the financial statements of December 31, 2019, except for described set forth below. 4.3.1. As a result of the crisis caused by COVID-19, the Company started to accept requests for the extension of customer invoices, limiting these postponements to those invoices close to maturity, with due interest charges. Most of the customers who requested extension are related to the domestic market in the paper segment and do not represent a significant amount compared to the Company's total accounts receivable. In the six-month period ended June 30, 2019, the Company observed in the domestic customers of the paper segment, a more accentuated behavior of delays caused by the COVID-19 crisis. However, internal analyzes and credit metrics do not demonstrate that these delays may have a significant impact on the Company's liquidity position. There was also an increase in delays in Latin America, however, for this region, the Company has credit insurance policies that mitigate most of the possible risks arising from the default of its customers. All policies aimed at mitigating the possible risks arising from the default of its customers were maintained, as well as the collection policies and procedures. Moreover, the policy of expected credit losses normally follows, without any changes. 4.3.2. In the six-month period ended June 30, 2020, there were no significant changes in the credit risk management policies and procedures related to bank and financial institutions compared to those reported in note 4 to the financial statements of December 31, 2019. 4.4. In the six-month period ended June, 2020, there were no significant changes in the market risk management policies and procedures compared to those reported in note 4 to the financial statements of December 31, 2019. 4.4.1. The net exposure of assets and liabilities in foreign currency which is substantially in U.S. Dollars, is set forth below: June 30, December 31, 2020 2019 Assets Cash and cash equivalents 9,895,463 2,527,834 Trade accounts receivables 2,891,501 2,027,018 Derivative financial instruments 242,235 9,440,141 13,029,199 13,994,993 Liabilities Trade accounts payables (491,805) (1,085,207) Loans and financing (63,817,265) (45,460,138) Liabilities for asset acquisitions and subsidiaries (401,273) (288,172) Derivative financial instruments (10,485,935) (11,315,879) (75,196,278) (58,149,396) Net liability exposure (62,167,079) (44,154,403) 4.4.1.1. For market risk analysis, the Company uses scenarios to jointly evaluate assets and liabilities positions in foreign currency, and the possible effects on its results. The probable scenario represents the amounts recognized, as they reflect the translation into Brazilian Reais on the base date of the balance sheet (R$ to U.S.$ = R$5.4760). This analysis assumes that all other variables, particularly, the interest rates, remains constant. The other scenarios considered the appreciation/depreciation of the Brazilian real against the U.S.$. at the rates of 25% and 50%, before taxes. The following table set forth the potential impacts in absolute amounts: June 30, 2020 Effect on profit or loss and equity Possible Remote Probable (25%) (50%) Cash and cash equivalents 9,895,463 2,473,866 4,947,732 Trade accounts receivable 2,891,501 722,875 1,445,751 Trade accounts payable (491,805) (122,951) (245,903) Loans and financing (63,817,265) (15,954,316) (31,908,633) Liabilities for asset acquisitions and subsidiaries (401,273) (100,318) (200,637) 4.4.1.2. As disclosed in note 4 of the financial statements for the year ended December 31, 2019, the Company contracts sales operations of U.S. Dollar in the futures markets, including strategies with options, in order to ensure attractive levels of operating margins for a portion of revenue. These operations are limited to a percentage of the net foreign exchange surplus over the 18-month horizon and, therefore, are attached to the availability of ready-to-sell foreign exchange in the short term. Due to pandemic COVID-19 and the effects on all global economies during the first semester, financial markets have experienced volatility throughout the period with a strong sense of aversion to risk, with a consequent substantial devaluation of the Real against the U.S. Dollars. For the calculation of mark-to-market (“MtM”) the PTAX of the penultimate business day of the quarter was used, in December 2019 it was R$4.0307 and in June 2020 it was R$5.4416, with an increase of 35%. These market movements caused a negative impact on the mark-to-market hired hedge position. This analysis assumes that all other variables, particularly, the interest rates, remains constant. The other scenarios considered the appreciation/depreciation of the Brazilian real against the U.S.$. at the rates of 25% and 50%, before taxes, from the base scenario of June 30, 2020. It is important to mention that the impact caused by fluctuations in the exchange rate, whether positive or negative, will also affect the hedged asset. Therefore, even though there was a negative impact on the fair value of derivative transactions in the last quarters due to the COVID-19 pandemic, this impact was offset by the positive impact on the Company's cash flow. In addition, considering that hedge contracts are limited by the policy in a maximum of 75% of the total exposure in U.S. Dollars, the exchange rate devaluation will always benefit, in a net way, the Company's cash generation. The following table set forth the potential impacts assuming these scenarios: June 30, 2020 Effect on profit or loss and equity Possible Remote Possible Remote Probable (+25%) (+50%) (-25%) (-50%) 5.4416 6.802 8.1624 4.0812 2.7208 Financial instruments derivatives Derivative options (2,955,980) (4,195,471) (8,658,160) 3,740,215 7,973,398 Derivative Non-Deliverable Forward (‘NDF’) (29,511) (33,907) (67,814) 33,908 67,815 Derivative swaps (8,526,926) (5,279,964) (10,559,931) 5,279,972 10,559,940 4.4.2. Fluctuations in interest rates may imply effects of increased or reduced costs on new loans and operations already contracted. The Company is constantly looking for alternatives for the use of financial instruments in order to avoid negative impacts on its cash flow. Considering the extinction of LIBOR over the next few years, the Company is evaluating its contracts with clauses that envisage the discontinuation of the interest rate. Most debt contracts linked to LIBOR have some clause to replace this rate with a reference index or equivalent interest rate and, for contracts that do not have a specific clause, a renegotiation will be carried out between the parties. Derivative contracts linked to LIBOR provide for a negotiation between the parties for the definition of a new rate or an equivalent rate will be provided by the calculation agent. In the next few years, until the extinction of LIBOR, the Company will work to reflect an equivalent replacement fee in all its contracts. 4.4.2.1. For market risk analysis, the Company uses scenarios to evaluate the sensitivity that variations in operations impacted by the rates: Interbank Deposit Rate (“CDI”), Long Term Interest Rate (“TJLP”), Special System for Settlement and Custody ("SELIC") and the London Interbank Offered Rate (“LIBOR”) may have on its results. The probable scenario represents the amounts already booked, as they reflect the best estimate of the Management. This analysis assumes that all other variables, particularly exchange rates, remain constant. The other scenarios considered appreciation/depreciation of 25% and 50% in the market interest rates. The following table set forth the potential impacts in absolute amounts: June 30, 2020 Effect on profit or loss and equity Probable Possible (25%) Remote (50%) CDI Cash and cash equivalents 358,900 1,929 3,858 Marketable securities 2,213,496 11,898 23,795 Loans and financing 9,919,194 53,316 106,631 TJLP Loans and financing 1,700,469 21,001 42,002 LIBOR Loans and financing 25,131,914 18,975 37,949 4.4.2.2. This analysis assumes that all other variables, remain constant. The other scenarios considered appreciation/depreciation of 25% and 50% in the market interest rates. The following table set forth the potential impacts assuming these scenarios: June 30, 2020 Effect on profit or loss and equity Probable Remote Probable Remote Probable (+25%) (+50%) (-25%) (-50%) CDI Financial instruments derivatives Liabilities Derivative options (2,955,980) (46,186) (91,962) 46,622 93,698 Derivative Non-Deliverable Forward (‘NDF’) (29,511) (97) (195) 99 198 Derivative swaps (8,526,926) (27,243) (53,863) 27,830 56,172 LIBOR Financial instruments derivatives Liabilities Derivative swaps (8,526,926) 50,308 100,602 (50,308) (100,630) 4.4.2.3. For the measurement of the probable scenario, the United States Consumer Price Index (US-CPI) was considered on December 31, 2019. The probable scenario was extrapolated considering an appreciation/depreciation of 25% and 50% in the US-CPI to define the possible and remote scenarios, respectively, in absolute amounts. June 30, 2020 Impact of an increase/decrease of US-CPI on the fair value Probable Possible (25%) Remote (50%) Embedded derivative in forestry partnership and standing wood supply agreements 522,073 (117,134) (238,426) 4.4.3. The Company is exposed to commodity prices that reflect mainly on the pulp sale price in the foreign market. The dynamics of opening and closing production capacities in the global market and the macroeconomic conditions may have an impact on the Company´s operating results. Through a specialized team, the Company monitors the pulp price and analyses future trends, adjusting the forecast which that aims to assisting preventive measures to properly conduct the different scenarios. There is no liquid financial market to sufficiently mitigate the risk of a material portion of the Company's operations. Price protection operations cellulose available on the market have low liquidity and volume and large distortion in price formation. No relevant changes were observed in relation to pulp prices and future markets related to this index due to the crisis caused by the pandemic of COVID-19. The Company is also exposed to international oil prices, which is reflected on logistical costs for selling to the export market. In this case, the Company assess, when comprehend necessary, hiring derivative financial instruments to set oil price. The crisis caused by the COVID-19 pandemic significantly impacted the global demand for oil and its derivatives, which caused a substantial devaluation of the prices of these assets in the spot and future markets, during the first quarter of 2020. In this context, and considering attractive market conditions, the Company increased its oil hedge position in line with its hedge strategy and policies and set a good part of its exposure at levels below the estimated price levels for the 2020 budget. In the six-month period ended June 30, 2020, a contracted position to hedge its logistics costs was purchased in the amount of U.S.$87,486 (U.S.$0.364 as of December 31, 2019). 4.4.3.1. This analysis assumes that all other variables, except price risk, remain constant. The other scenarios considered appreciation/depreciation of 25% and 50% of oil price in the market. The following table set forth the potential impacts assuming these scenarios: June 30, 2020 Impact of an increase/decrease of price risk Probable Possible (25%) Remote (50%) Oil derivative (76,702) 168,646 260,591 4.5. The Company determines the fair value of derivative contracts, which differ from the amounts realized in the event of early settlement due to bank spreads and market factors at the time of quotation. The amounts presented by the Company are based on an estimate using market factors and use data provided by third parties, measured internally and compared to calculations performed by external consultants. Details of derivative financial instruments and their respective calculation methodologies are disclosed in note 4 to the financial statements for the year ended December 31, 2019. 4.5.1. The positions of outstanding derivatives are set forth below: Notional value in U.S.$ Fair value June 30, December 31, June 30, December 31, 2020 2019 2020 2019 Instruments contracted with protection strategy Operational Hedge Zero Cost Collar 3,365,500 3,425,000 (2,948,115) 67,078 NDF (R$ x US$) 25,000 (29,511) NDF (US$ x ARS) 5,500 (2,178) Debt hedge Interest rate hedge Swap LIBOR to Fixed (U.S.$) (1) 3,683,333 2,750,000 (1,273,250) (444,910) Swap IPCA to CDI (notional in Reais ) 843,845 843,845 251,599 233,255 Swap IPCA to Fixed (U.S.$) 121,003 121,003 (172,557) 30,544 Swap CDI x Fixed (U.S.$) (1) 2,676,617 3,115,614 (6,454,249) (1,940,352) Pre-fixed Swap to U.S.$ (U.S.$) 350,000 350,000 (637,090) (33,011) Hedge de Commodity Swap US-CPI standing wood (U.S.$) (2) 657,207 679,485 522,073 268,547 Swap Bunker (oil) 87,486 365 (76,617) (92) (10,819,895) (1,818,941) Current assets 152,978 260,273 Non-current assets 925,459 838,699 Current liabilities (4,529,091) (893,413) Non-current liabilities (7,369,241) (2,024,500) (10,819,895) (1,818,941) 1) 2) The current contracts and the respective protected risks are set forth below: I. Swap CDI x Fixed US$: positions in conventional swaps exchanging the variation in the Interbank Deposit rate (“DI”) for a fixed rate in United States Dollars (“US $”). The objective is to change the debt index in Reais to US$, in compliance with the Company's natural exposure of receivables in US$. II. Swap IPCA x CDI: positions in conventional swaps exchanging variation of the Nacional Index of Price to the Ample Comsumer (“IPCA”) for DI rate. The objective is to change the debt index in Reais, in compliance with the Company's cash position in Reais, which is also indexed to DI. III. IPCA swap x Fixed US$: positions in conventional swaps exchanging variation of the IPCA for a fixed rate in US$. The objective is to change the debt index in Reais to US$, in compliance with the Company's natural exposure of receivables in US$. IV. Swap LIBOR x Fixed US$: positions in conventional swaps exchanging post-fixed rate (LIBOR) for a fixed rate in US$. The objective is to protect the cash flow from changes in the US interest rate. V. Pre Fixed Swap R$ x Fixed US$: positions in conventional swaps a fixed rate in Reais for a fixed rate in US$. The objective is to change the exposure of debts in Reais to US$, in compliance with the Company's natural exposure of receivables in US$. VI. Zero-Cost Collar: positions in an instrument that consists of the simultaneous combination of purchase of put options and sale of call options of US$, with the same principal and maturity value, with the objective of protecting the cash flow of exports. In this strategy, an interval is established where there is no deposit or receipt of financial margin on position adjustments. The objective is to protect the cash flow of exports against decrease Real. VII. NDF - Non Deliverable Forward: positions sold in futures contracts of US$ with the objective of protecting the cash flow of exports against the decrease in the Real. VIII. Swap VLSFO/Brent(oil): oil purchase positions, with the objective of protecting logistical costs related to ocean freight contracts, against the increase in oil prices. IX. Swap US-CPI:The embedded derivative refers to sale swap contracts of variations of US-CPI within the terms of the forest partnership and standing wood supply contracts. The COVID-19 pandemic negatively impacted the financial markets and, consequently, caused increased volatility throughout the first semester, devaluing the Real against the US Dollar by 35%, as previously mentioned. The variation in the fair value of derivatives for the six-month period ended June 30, 2020 compared to the fair value measured on December 31, 2019 is explained substantially by this significant devaluation of the local currency. There were also less significant impacts caused by the variation in the Pre, Foreign Exchange Coupon and LIBOR curves in transactions. It is important to highlight that, the outstanding agreements in the six-month period ended June 30, 2020, are over-the-counter market, without any kind of guarantee margin or early settlement clause forced by changes from mark to market, including possible variations caused by the COVID-19 pandemic. 4.5.2. June 30, December 31, 2020 2019 2020 (2,715,171) (633,644) 2021 (2,184,320) 98,850 2022 (1,148,302) (154,734) 2023 (563,163) 185,209 2024 (801,662) (197,718) 2025 (1,845,634) (606,827) 2026 onwards (1,561,643) (510,077) (10,819,895) (1,818,941) 4.5.3. The outstanding derivatives positions are set forth below: Notional value Fair value June 30, December 31, June 30, December 31, Currency 2020 2019 2020 2019 Debt hedge Assets Swap CDI x Fixed (U.S.$) R$ 9,963,450 11,498,565 511 11,673,117 Swap Pre-Fixed to U.S.$ (U.S.$) R$ 1,317,226 1,317,226 122,341 1,478,336 Swap LIBOR x Fixed (U.S.$) US$ 3,683,333 2,750,000 62,489 11,063,970 Swap IPCA x CDI IPCA 943,055 933,842 251,599 1,093,067 Swap IPCA x U.S.$ IPCA 504,368 499,441 579,307 436,940 25,887,797 Liabilities Swap CDI x Fixed (U.S.$) US$ 2,676,617 3,115,614 (6,454,760) (13,613,469) Swap LIBOR x Fixed (U.S.$) US$ 350,000 350,000 (759,431) (1,511,347) Swap LIBOR x Fixed (U.S.$) US$ 3,683,333 2,750,000 (1,335,739) (11,508,880) Swap IPCA x CDI R$ 843,845 843,845 (859,812) Swap IPCA x U.S.$ US$ 121,003 121,003 (172,557) (548,763) (8,722,487) (28,042,271) (8,285,547) (2,154,474) Operational hedge Zero cost collar (U.S.$ x R$) US$ 3,365,500 3,425,000 (2,948,115) 67,078 NDF (R$ x U.S.$) US$ 25,000 (29,511) NDF (US$ x ARS) 5,500 (2,178) (2,979,804) 67,078 Commodity hedge Swap US-CPI (standing wood) US$ 657,207 679,485 522,073 268,547 Swap Bunker (oil) US$ 87,486 365 (76,617) (92) 445,456 268,455 (10,819,895) (1,818,941) 4.5.4. The settled derivatives positions are set forth below: June 30, December 31, 2020 2019 Operational hedge Zero cost collar (R$ x U.S.$) (962,595) (104,040) NDF (R$ x U.S.$) (30,700) 63,571 (993,295) (40,469) Commodity hedge Swap Bunker (oil) (36,805) 3,804 (36,805) 3,804 Debt hedge Swap CDI x Fixed (U.S.$) (369,601) (68,362) Swap IPCA x CDI (441,056) 23,024 Swap IPCA x USD 10,054 Swap Pre-Fixed to U.S.$ (U.S.$) 59,351 (26,358) Swap LIBOR x Fixed (U.S.$) (62,898) (27,088) (804,150) (98,784) (1,834,250) (135,449) 4.6. For the six-month period ended June 30, 2020, there were no changes between the 3 (three) levels of hierarchy and no transfers between levels 1, 2 and 3 during the periods disclosed. June 30, 2020 Level 1 Level 2 Level 3 Total Assets Fair value through profit or loss Derivative financial instruments 1,078,437 1,078,437 Marketable securities 825,972 1,387,524 2,213,496 825,972 2,465,961 3,291,933 Fair value through other comprehensive income Other investments - CelluForce 25,976 25,976 25,976 25,976 Biological assets 10,672,724 10,672,724 10,672,724 10,672,724 Total assets 825,972 2,465,961 10,698,700 13,990,633 Liabilities Fair value through profit or loss Derivative financial instruments 11,898,332 11,898,332 11,898,332 11,898,332 Total liabilities 11,898,332 11,898,332 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Fair value through profit or loss Derivative financial instruments 1,098,972 1,098,972 Marketable securities 1,631,319 4,699,015 6,330,334 1,631,319 5,797,987 7,429,306 Fair value through other comprehensive income Other investments - CelluForce 20,048 20,048 20,048 20,048 Biological assets 10,571,499 10,571,499 10,571,499 10,571,499 Total assets 1,631,319 5,797,987 10,591,547 18,020,853 Liabilities Fair value through profit or loss Derivative financial instruments 2,917,913 2,917,913 2,917,913 2,917,913 Total liabilities 2,917,913 2,917,913 4.7. The main objective is to strengthen its capital structure, aiming to maintain an adequate financial leverage, and to mitigate risks that may affect the availability of capital in business development. The Company monitors constantly significant indicator, such as, consolidated financial leverage, which is the ratio of total net debt to its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”). |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 6 Months Ended |
Jun. 30, 2020 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 5. CASH AND CASH EQUIVALENTS Average yield June 30, December 31, p.a. % 2020 2019 Cash and banks 0.40 6,070,196 2,464,097 Cash equivalents Local currency Fixed-term deposits (1) 75.34% of CDI 358,900 630,075 Foreign currency Fixed-term deposits (1) 4,044,605 154,955 10,473,701 3,249,127 1) Refers to Time Deposit and Sweep Account applications, maturing up to 90 days. Time Deposit is a remunerated bank deposit with a specific maturity period. Sweep Account: is a paid sweep account. At the end of the day, the balance remaining in the account is automatically applied and automatically made available the next business day in the morning. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
MARKETABLE SECURITIES | |
MARKETABLE SECURITIES | 6. MARKETABLE SECURITIES Average yield June 30, December 31, p.a. % 2020 2019 In local currency Investment funds 25.61% of CDI 6,587 6,683 Private funds 93.31% of CDI 12,668 1,431,303 Public titles measured at fair value through profit or loss 93.31% of CDI 825,972 1,631,319 Private Securities (Compromised) 100.00% of CDI 1,185,333 3,081,326 Private Securities (Compromised) - Escrow Account (1) 102.00% of CDI 182,936 179,703 2,213,496 6,330,334 Current 2,030,560 6,150,631 Non-Current 182,936 179,703 1) Refers to the guarantee account, which will be released only after obtaining the applicable governmental approvals and compliance by the Company with the precedent conditions to the conclusion of the Losango Project provided for in the agreement entered with CMPC Celulose Riograndense SA ("CMPC"). The Losango Project was a transaction to buy and sell lands and forests involving Fibria and CMPC, entered into in December 2012. |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2020 | |
TRADE ACCOUNTS RECEIVABLE | |
TRADE ACCOUNTS RECEIVABLE | 7. TRADE ACCOUNTS RECEIVABLE 7.1. June 30, December 31, 2020 2019 Domestic customers Third parties 888,372 1,027,034 Related parties (Note 11) (1) 35,394 23,761 Foreign customers Third parties 2,891,501 2,027,018 (-) Expected credit losses (52,392) (41,996) 3,762,875 3,035,817 1) The Company performs factoring transactions for certain customers’ receivables where, substantially all risks and rewards related to these receivables are transferred to the counterpart, so that these receivables are derecognized from accounts receivable in the balance sheet. This transaction refers to an additional cash generation opportunity and may be discontinued at any time without significant impact on the Company's operation and is therefore classified as a financial asset measured at amortized cost. The impact of these factoring transactions on the accounts receivable in the balance sheet for the six-month period ended June 30, 2020, is R$4,968,024 (R$3,544,625 as of December 31, 2019). 7.2. June 30, December 31, 2020 2019 Current 3,236,279 2,552,459 Overdue Up to 30 days 324,675 180,909 From 31 to 60 days 72,830 148,388 From 61 to 90 days 23,836 20,448 From 91 to 120 days 15,518 20,680 From 121 to 180 days 10,844 17,899 More than 180 days 78,893 95,034 3,035,817 7.3. June 30, December 31, 2020 2019 Beginning balance (41,996) (37,179) Business combination (5,947) Addition (10,250) (18,650) Reversal 187 6,364 Write-off 2,117 13,383 Exchange rate variation (2,450) 33 Ending balance (52,392) (41,996) The Company maintains guarantees for overdue securities in its commercial operations, through credit insurance policies, letters of credit and other guarantees. These guarantees avoid the need to recognize expected credit losses, in accordance with the Company's credit policy. 7.4. Main customers The Company has 1 (one) customer for 9.6% of net sales of pulp segment for the six-month period ended June 30, 2020 (1 (one) customer for 10% of net sales of pulp segment as of December 31, 2019). |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2020 | |
INVENTORIES | |
INVENTORIES | 8. INVENTORIES June 30, December 31, 2020 2019 Finished goods Pulp Domestic (Brazil) 430,958 575,335 Foreign 1,407,928 2,229,206 Paper Domestic (Brazil) 372,952 199,635 Foreign 118,701 70,199 Work in process 98,037 75,377 Raw material 1,300,430 1,047,433 Spare parts and other 477,772 488,410 4,206,778 4,685,595 Inventories are net of estimated losses as set forth below in note 8.1. 8.1. June 30, December 31, 2020 2019 Beginning balance (106,713) (33,195) Business combination (11,117) Addition (1) (33,653) (111,077) Reversal 1,033 9,734 Write-off (2) 71,351 38,942 Ending balance (67,982) (106,713) 1) 2) The write-off of inventory, in the six-month period ended June 30, 2020, refers mainly to the amounts of (i) finished pulp product of R$31,088 (R$666 as of December 31, 2019) and (ii) raw material of R$32,600 (R$26,083 as of December 31, 2019). For the six-month period ended June 30, 2020, there were no inventory items pledged as collateral (there were no inventory items pledged as collateral as of December 31, 2019). |
RECOVERABLE TAXES
RECOVERABLE TAXES | 6 Months Ended |
Jun. 30, 2020 | |
RECOVERABLE TAXES | |
RECOVERABLE TAXES | 9. RECOVERABLE TAXES June 30, December 31, 2020 2019 IRPJ/CSLL – prepayments and withheld taxes 562,835 575,351 PIS/COFINS – on acquisition of property, plant and equipment (1) 133,182 61,376 PIS/COFINS – operations 303,636 507,919 PIS/COFINS – exclusion ICMS (2) 128,115 128,115 ICMS – on acquisition of property, plant and equipment (3) 109,045 115,560 ICMS – operations (4) 1,500,659 1,515,840 Reintegra program (5) 119,580 108,657 Other taxes and contributions 22,680 18,758 Provision for loss of ICMS credits (6) (1,279,208) (1,304,329) Provision for loss of PIS/COFINS credits (21,132) 1,600,524 1,706,115 Current 888,245 997,201 Non-current 712,279 708,914 1) Social Integration Program (“PIS”) and Social Security Funding Contribution (“COFINS”): Credits whose realization is in connection with depreciation year of the corresponding asset. 2) The Company filed legal actions claiming the exclusion of ICMS from the PIS and COFINS contribution tax basis, in relation to certain operations for certain periods starting from March 1992. Regarding this subject, the Federal Supreme Court (“STF”) initially decided on March 15th, 2017, that ICMS is not included in the tax basis of the aforementioned contributions. The Federal Government made an appeal (“Embargos de Declaração ”) in October 2017, requesting the reversal of the Supreme Court’s initial decision among other items. The appeal has yet to be judged. Based on the Supreme Court’s initial decision and the legal opinion provided by external legal consultants, the Company believes that the probability of the Supreme Court altering its decision is remote. The Company thus started to exclude the ICMS from the tax basis of the referred contributions since August 2018, a practice also supported by court decisions. For certain PIS and COFINS credits to be recovered, the Company has received final favorable court decisions. The balance recognized in the statement of income (loss) in 2019 within other operational results, regarding certain claims for the calculation period from 2006 to July 2018. The Company has estimated the amount attributable to these claims based on the available relevant fiscal documents, and this amount is subject to adjustments to be recorded by management in the future periods. The Company has additional claims for which a final decision has not been received and for which no asset or gain have been recorded. 3) Tax on Sales and Services (“ICMS”): Credits from the acquisition of property, plant and equipment are recovered on a linear basis over a four period, from the acquisition date, in accordance with the relevant regulation, ICMS Control on Property, Plant and Equipment (“CIAP”). 4) ICMS credits accrued due to the volume of exports and credit generated in operations of entry of products: Credits are concentrated in the state of Maranhão, Espírito Santo, Bahia and Mato Grosso do Sul, where the Company realizes the credits through sale of credits to third parties, after approval from the State Ministry of Finance. Credits are also being realized through consumption in its consumer goods (tissue) operations in the domestic market that are already operational in Maranhão. 5) Special Regime of Tax Refunds for Export Companies ("Reintegra"): Reintegra is a program that aims to refund the residual costs of taxes paid throughout the exportation chain to taxpayers, to make them more competitive in foreign markets. 6) Includes the provision for discount on sale to third parties of the accumulated ICMS credit in Maranhão and the provision for full loss of the low probability of realization of the units of Espírito Santo, Bahia and Mato Grosso do Sul due to the difficulty of its realization. 9.1. Rollforward of provision for loss ICMS PIS/COFINS Total Balance as of December 31, 2018 (10,792) (10,792) Business combination (1,211,109) (1,211,109) Addition (82,428) (21,132) (103,560) Balance as of December 31, 2019 (1,304,329) (21,132) (1,325,461) Addition (48,151) (48,151) Write-off 73,272 21,132 94,404 Balance as of June 30, 2020 (1,279,208) (1,279,208) |
ADVANCE TO SUPPLIERS
ADVANCE TO SUPPLIERS | 6 Months Ended |
Jun. 30, 2020 | |
ADVANCE TO SUPPLIERS | |
ADVANCE TO SUPPLIERS | 10. ADVANCE TO SUPPLIERS June 30, December 31, 2020 2019 Forestry development program 1,149,832 1,087,149 Advance to suppliers 106,636 170,481 1,256,468 1,257,630 Current 106,636 170,481 Non-current 1,149,832 1,087,149 In the financial statements for the year ended December 31, 2019, additional information on advances was disclosed, which did not change during the period. |
RELATED PARTIES
RELATED PARTIES | 6 Months Ended |
Jun. 30, 2020 | |
RELATED PARTIES | |
RELATED PARTIES | 11. RELATED PARTIES The Company's commercial and financial operations with controlling shareholder and Companies owned by controlling shareholder Suzano Holding S.A. ("Suzano Group"). For transactions with related parties, it is determined that the usual market prices and conditions for these transactions are observed, as well as the corporate governance practices adopted by the Company and those recommended and/or required by the legislation. For the six-month period ended June 30, 2020, there were no material changes in the terms of the agreements, deal and transactions entered into, nor were there any new contracts, agreements or transactions of different natures entered into between the Company and its related parties in relation to those disclosed in the annual financial statements for the year ended December 31, 2019. 11.1. Balances receivable (payable) June 30, December 31, Nature 2020 2019 Transactions with controlling shareholders Suzano Holding S.A. Granting of guarantees and administrative expenses 5 3 5 3 Transactions with companies of the Suzano Group and other related parties Management Reimbursement for expenses — (1) Bexma Participações Ltda. Reimbursement for expenses 2 1 Bizma Investimentos Ltda. Reimbursement for expenses 1 1 Ensyn Technologies Reimbursement for expenses 2,004 — Ibema Companhia Brasileira de Papel Sale of pulp 33,382 23,755 Ibema Companhia Brasileira de Papel Purchase of products (1,448) (2,467) Instituto Ecofuturo - Futuro Para o Desenvolvimento Sustentável Social services — (9) 33,941 21,280 33,946 21,283 Assets Trade accounts receivable 35,394 23,761 Liabilities Trade accounts payable (1,448) (2,478) 33,946 21,283 11.2. Expenses (income) June 30, June 30, Nature 2020 2019 Transactions with controlling shareholders Suzano Holding S.A. Granting of guarantees and administrative expenses (2,459) (3,285) (2,459) (3,285) Transactions with companies of the Suzano Group and other related parties Management Reimbursement for expenses (831) (595) Bexma Participações Ltda. Reimbursement for expenses 7 3 Bizma Investimentos Ltda. Reimbursement for expenses 7 6 Fundação Arymax Reimbursement for expenses 1 — Ibema Companhia Brasileira de Papel Sale of paper 48,829 66,769 Ibema Companhia Brasileira de Papel Purchase of products (2,241) (3,415) Instituto Ecofuturo - Futuro para o Desenvolvimento Sustentável Social services (2,379) (2,538) IPFL Holding S.A Reimbursement for expenses 2 1 Lazam MDS Corretora e Adm. Seguros S.A. Sale of paper — 4 Mabex Representações e Participações Ltda. Aircraft services (50) (100) Nemonorte Imóveis e Participações Ltda. Real estate advisory (99) (225) 43,246 59,910 40,787 56,625 11.3 Expenses related to the compensation of key management personnel, which include the Board of Directors, Fiscal Council and Board of Statutory Executive Officers, recognized in the statement of income for the period, are set for the below: June 30, June 30, 2020 2019 Short-term benefits Salary or compensation 22,866 19,010 Direct and indirect benefits 450 787 Bonus 3,250 5,781 26,566 25,578 Long-term benefits Share-based compensation plan 45,529 45,051 45,529 45,051 72,095 70,629 Short-term benefits include fixed compensation (salaries and fees, vacation, mandatory bonus and “13 th salary” bonus), payroll charges (Company share of contributions to social security – INSS) and variable compensation such as profit sharing, bonus and benefits (company car, health plan, meal voucher, market voucher, life insurance and private pension plan). Long-term benefits include the stock option plan and phantom shares for executives and key members of the Management, in accordance with the specific regulations as disclosed in Note 22. |
INCOME AND SOCIAL CONTRIBUTION
INCOME AND SOCIAL CONTRIBUTION TAXES | 6 Months Ended |
Jun. 30, 2020 | |
INCOME AND SOCIAL CONTRIBUTION TAXES | |
INCOME AND SOCIAL CONTRIBUTION TAXES | 12. INCOME AND SOCIAL CONTRIBUTION TAXES The Company and its wholly-owned subsidiaries located in Brazil are subject to the tax regime based on taxable income. The wholly-owned subsidiaries located abroad are taxed in their respective jurisdictions, according to local regulations. In Brazil, the Law nº. 12,973/14 revoked article 74 of Provisional Measure nº.2,158/01 and determines that the parcel of the adjustment of the value of the investment in wholly-owned subsidiary, direct and indirect, located abroad, equivalent to the profit earned by it before income tax, except for exchange rate variation, must be added in the determination of taxable income and the social contribution calculation basis of the controlling entity located in Brazil, at the each period ended. Management’s Company believes on the validity of the provisions of international treaties entered into Brazil to avoid double taxation. In order to guarantee its right to non-double taxation, the Company filed a lawsuit in April 2019, which aims at a non-double taxation, in Brazil, of profit earned by its wholly-owned subsidiary located in Austria, according to Law n°. 12,973/14. Due to the preliminary injunction granted in favor of the Company in the records of the aforementioned lawsuit, the Company decided to not to add the profit from Suzano International Trading GmbH, located in Austria, in determining of taxable income and social contribution basis of the net profit of the Company for the six-month period ended June 30, 2020. There is no provision for tax related to the profit of such wholly-owned subsidiary in 2020. 12.1. June 30, December 31, 2020 2019 Tax loss carryforwards 772,460 600,249 Negative tax base 226,230 146,346 Provision for judicial liabilities 255,947 265,571 Operating provisions and other losses 908,399 914,696 Exchange rate variation (1) 7,418,386 2,001,942 Losses on derivatives (“MtM”) (1) 3,678,024 618,427 Fair value adjustment on business combination – Amortization 713,180 713,656 Unrealized profit on inventories 357,240 293,322 Lease 330,669 22,044 Assets temporary differences 14,660,535 5,576,253 Goodwill - Tax benefit on unamortized goodwill 351,107 216,857 Property, plant and equipment - deemed cost adjustment 1,487,102 1,506,220 Accelerated tax depreciation 1,068,735 1,113,200 Borrowing cost 118,071 104,549 Fair value of biological assets 123,668 53,502 Tax provision on results of subsidiaries abroad 585,516 463,850 Fair value adjustment on business combination – Deferred taxes, net 485,994 502,347 Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) 43,559 43,559 Other temporary differences 17,491 17,004 Liabilities temporary differences 4,281,243 4,021,088 Non-current assets 10,454,646 2,134,040 Non-current liabilities 75,354 578,875 1) Except for tax loss carryforwards, the negative basis of social contribution and accelerated depreciation are only achieved by the Income Tax (“IRPJ”), other tax bases were subject to both taxes. The breakdown of accumulated tax losses and social contribution tax loss carryforwards is set forth below: June 30, December 31, 2020 2019 Tax loss carry forward 3,089,840 2,400,998 Social contribution tax loss carryforward 2,513,672 1,626,064 The rollforward of net balance of deferred income tax is set for the below: June 30, December 31, 2020 2019 Beginning balance 1,555,165 (1,029,135) Business combination — 1,034,842 Tax loss 172,211 270,559 Tax loss carryforwards 79,884 139,719 (Reversal)/provision for judicial liabilities (9,624) 31,262 Operating provisions and other losses (6,297) (21,757) Exchange rate variation (1) 5,416,444 552,421 Derivative losses (“MtM”) (1) 3,059,597 319,860 Fair value adjustment on business combination – Amortization 15,879 699,527 Unrealized profit on inventories 63,918 65,492 Lease 308,625 (3,274) Tax benefit on unamortized goodwill (134,250) (203,696) Property, plant and equipment - Deemed cost 19,118 46,359 Accelerated depreciation 44,465 82,982 Borrowing cost (13,522) 44,727 Fair value of biological assets (70,166) (60,778) Tax provision on results of subsidiaries abroad (121,666) (351,485) Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) — (43,559) Other temporary differences (489) (18,901) Ending balance 10,379,292 1,555,165 1) 12.2. June 30, June 30, 2020 2019 Loss before taxes (24,236,648) (789,205) Income tax and social contribution benefit (expense) at statutory nominal rate of 34% 8,240,460 268,330 Tax effect on permanent differences Taxation (difference) on profit of wholly-owned subsidiaries abroad (1) 746,640 21,301 Tax incentive - Reduction SUDENE (2) — 23,216 Equity method (1,004) (1,893) Thin capitalization (3) (252,808) (50,437) Credit related to Reintegra Program 3,367 2,988 Tax incentives applicable to income tax (4) 3,925 3,247 Director bonus (5,508) (42,682) Donations / Fines - Other 29,997 35,851 8,765,069 259,921 Income tax Current (57,006) (113,570) Deferred 6,486,044 299,726 6,429,038 186,156 Social Contribution Current (823) (78,008) Deferred 2,336,854 151,773 2,336,031 73,765 Income and social contribution benefits (expenses) on the period 8,765,069 259,921 Effective rate of income and social contribution tax expenses 36.16 % 32.93 % 1) 2) 3) 4) 12.3. Company has a tax incentive for the partial reduction of the income tax obtained by the operations carried out in areas of the Northeast Development Superintendency (“SUDENE”) in the Mucuri (BA), Eunápolis – Veracel (BA) and Imperatriz (MA) regions. The IRPJ reduction incentive is calculated based on the activity profit (exploitation profit) and considers the allocation of the operating profit by the incentive production levels for each product. The incentive of lines 1 and 2 of Mucuri (BA) facility expire, respectively, in 2024 and 2027, Imperatriz facility expire in 2024 and Eunápolis – Veracel (BA) facility expire in 2025. |
BIOLOGICAL ASSETS
BIOLOGICAL ASSETS | 6 Months Ended |
Jun. 30, 2020 | |
BIOLOGICAL ASSETS | |
BIOLOGICAL ASSETS | 13. BIOLOGICAL ASSETS The rollforward of biological assets is set forth below: Balances on December 31, 2018 4,935,905 Business combination 4,579,526 Addition 2,849,039 Depletion (1,905,118) Gain on fair value adjustment 185,399 Disposal (23,764) Other write-offs (49,488) Balances on December 31, 2019 10,571,499 Addition 1,401,424 Depletion (1,433,410) Transfers 678 Gain on fair value adjustment 173,733 Disposal (39,910) Other write-offs (1,290) Balances on June 30, 2020 10,672,724 For the six-month period ended June 30, 2020, the Company reassessed the main assumptions used in measuring the fair value of biological assets. The fair value of forests is determined by the income method (“income approach”) using the discounted cash flow model. The calculation of fair value of the biological assets falls under Level 3 in the hierarchy set forth in IFRS 13 — Measurement of Fair Value, due to the complexity and structure of calculation. The main assumptions, IMA, discount rate, and selling price stand out as being the most sensitive where increases or reductions in these assumptions generate significant gains or losses in the measurement of fair value. The assumptions used in measurement of the fair value of biological assets were: i) ii) rd year of planting; iii) 3 per hectare, ascertained based on the genetic material used in each region, silvicultural practices and forest management, production potential, climate factors and ground conditions; iv) v) vi) The following table discloses the measurement of the premises adopted: June 30, 2020 Planted useful area (hectare) 960,109 Mature assets 107,861 Immature assets 852,248 Average annual growth (IMA) - m3 /hectare /year 36.16 Average gross sale price of eucalyptus - R$/m3 66.86 Discount rate - % The pricing model considers net cash flows, after deduction of taxes on profit at the applicable rates. The fair value adjustment recognized in year ended June 30, 2020 is justified by variation of indicators mentioned above, which combined resulted in a positive variation of R$173,733. The fair value adjustment was recognized under other operating income (expense), net. June 30, 2020 Physical changes 384,574 Price (210,841) 173,733 The Company manages the financial risks related to agricultural activities in a preventive manner. To reducing risks from edaphoclimatic factors, the weather is monitored through meteorological stations and, in the event of pests and diseases, our Department of Forestry Research and Development, an area specialized in physiological and phytosanitary aspects, has procedures to diagnose and act rapidly against any occurrences and losses. The Company has no biological assets pledged in the year ended June 30, 2020. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2020 | |
INVESTMENTS | |
INVESTMENTS | 14. INVESTMENTS 14.1. June 30, December 31, 2020 2019 Investments in associates and joint ventures 132,625 140,934 Goodwill 166,819 161,464 Other investments evaluated at fair value through other comprehensive income 25,976 20,048 325,420 322,446 14.2. Information of joint ventures as of Company participation June 30, 2020 In equity In the income of the period Participation equity June 30, December 31, June 30, June 30, (%) 2020 2019 2020 2019 Associate Ensyn Corporation 25.30 % 2,995 21,437 (13,086) Spinnova Oy 24.06 % 84,002 86,969 (2,966) (541) 86,997 108,406 (16,052) (541) Joint ventures Ibema Companhia Brasileira de Papel 40,139 28,487 11,651 6,175 F&E Technologies LLC 5,489 4,041 1,449 (65) 45,628 32,528 13,100 6,110 132,625 140,934 (2,952) 5,569 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 15. PROPERTY, PLANT AND EQUIPMENT Machinery, equipment Work in Lands Buildings and facilities progress Other (1) Total Average rate % 3 5 10 to 20 Cost Balance as of December 31, 2018 5,104,717 3,058,520 16,441,031 466,156 332,089 25,402,513 Additions 337,932 1,943 136,855 1,477,420 47,524 2,001,674 Write-offs (92,705) (36,276) (172,458) (1,462) (34,858) (337,759) Business combination 2,151,338 3,918,552 20,255,811 425,868 454,759 27,206,328 Fair value adjustment - Fibria 2,637,671 1,502,021 5,109,939 195,684 9,445,315 Fair value adjustment – Facepa 3,072 (883) (111) 2,078 Fair value adjustment – Ibema 5,448 5,448 Transfer and other (2) 182,621 323,029 740,879 (1,397,398) (61,761) (212,630) Balance as of December 31, 2019 10,321,574 8,767,789 42,520,577 969,701 933,326 63,512,967 Additions 1,660 100,769 452,661 4,036 559,126 Write-offs (20,032) (1,427) (14,685) (5) (5,162) (41,311) Transfer and other (2) 36,733 391,322 232,284 (760,831) 68,949 (31,543) Balance as of June 30, 2020 10,338,275 9,159,344 42,838,945 661,526 1,001,149 63,999,239 Depreciation Balance as of December 31, 2018 — (906,616) (7,248,143) — (227,495) (8,382,254) Additions — (255,888) (2,123,193) — (91,170) (2,470,251) Write-offs — 26,886 115,732 — 13,944 156,562 Business combination — (1,804,967) (9,552,825) — (249,087) (11,606,879) Additions - Fair value adjustment from business combination - Fibria — (63,495) (543,468) — (17,364) (624,327) Fair value adjustment from business combination - Facepa — (5,742) (6,481) — (95) (12,318) Fair value adjustment from business combination - Ibema — (593) — (593) Transfer and other (2) — 29,906 508,585 — 9,547 548,038 Balance as of December 31, 2019 — (2,979,916) (18,850,386) — (561,720) (22,392,022) Additions (138,227) (1,191,572) (50,612) (1,380,411) Write-offs 549 9,774 5,067 15,390 Balance as of June 30, 2020 (3,117,594) (20,032,184) (607,265) (23,757,043) Book value Balance as of December 31, 2019 10,321,574 5,787,873 23,670,191 969,701 371,606 41,120,945 Balance as of June 30, 2020 10,338,275 6,041,750 22,806,761 661,526 393,884 40,242,196 1) 2) For the six-month period ended June 30, 2020, the Company did not identify any impairment of property, plant and equipment. 15.1. For the six-month period ended June 30, 2020, property, plant and equipment items that are pledge as collateral for loans transactions and lawsuits, consisting substantially of the units of, [Imperatriz, Limeira, Mucuri, Suzano and Três Lagoas totaled R$21,419,039 (R$24,985,741 consisting substantially of the units of Imperatriz, Limeira, Mucuri and Suzano as of December 31, 2019). 15.2. For the six-month period ended June 30, 2020, the Company capitalized interest in the amount of R$7,940 (R$1,032 as of June 30, 2019). The weighted average interest rate utilized to determine the capitalized amount was 9.21% p.a. (9.08% p.a. as of June 30, 2019). |
INTANGIBLE
INTANGIBLE | 6 Months Ended |
Jun. 30, 2020 | |
INTANGIBLE | |
INTANGIBLE | 16. NTANGIBLE 16.1. June 30, December 31, 2020 2019 Vale Florestar 45,435 45,435 FACEPA 119,332 119,332 Fibria 7,897,051 7,897,051 Other (1) 1,196 1,196 8,063,014 8,063,014 1) Refer to other intangible assets with indefinite useful life such as servitude and electricity. The goodwill is based on expected future profitability supported by valuation reports, after purchase price allocation. Goodwill are allocated to cash-generating units as presented in Note 28.4. As a result of disclosed in note 1.2.1., which deals with the effects arising from COVID19, the Company reassessed the main assumptions used in the impairment test of the intangible disclosed in the financial statements of December 31, 2019 and concluded that there were no significant changes in the assumptions compared to the six-month period ended June 30, 2020. Therefore, Management understands that it is not necessary to carry out the impairment test of the intangible in this period. For the six-month period ended June 30, 2020, the Company did not identify any impairment of intangible. 16.2. June 30, December 31, 2020 2019 Beginning balance 9,649,789 180,311 Business combination 308,681 Additions 513 17,715 Fair value adjustment on business combination 702 Amortization (491,593) (74,332) Fair value adjustment on business combination 10,159,550 Port concession 54,470 Lease agreements 44,371 Supplier agreements 172,094 Port services agreements 694,590 Cultivars 142,744 Customer portfolio 9,030,779 Software 20,502 Fair value adjustment on business combination - Amortization (956,577) Port concession (2,147) Lease agreements (7,499) Supplier agreements (72,097) Port services agreements (29,362) Cultivars (20,392) Customer portfolio (820,980) Software (4,100) Fair value adjustment on business combination - Amortization (15,454) Exchange rate variation 2,930 Transfers and others 3,374 26,263 Ending balance 9,162,083 9,649,789 Average Represented by rate % Non-compete agreement 5 1,810 2,150 Research and development agreement 19 70,457 74,643 Ports concession 4 214,431 219,256 Lease agreements 17 33,122 36,871 Supplier agreements 13 to 100 92,590 99,997 Port service contracts 4 656,166 665,228 Cultivars 14 112,156 122,352 Development and implementation of systems 20 1,534 1,687 Trademarks and patents 5 to 10 17,368 20,649 Customer portfolio 2.5 to 9 7,801,989 8,217,192 Supplier agreements 5 46,406 51,562 Software 20 107,277 135,668 Others 6,777 2,534 9,162,083 9,649,789 |
TRADE ACCOUNTS PAYABLE
TRADE ACCOUNTS PAYABLE | 6 Months Ended |
Jun. 30, 2020 | |
TRADE ACCOUNTS PAYABLE | |
TRADE ACCOUNTS PAYABLE | 17. TRADE ACCOUNTS PAYABLE June 30, December 31, 2020 2019 In local currency Related party (note 11.1) (1) 1,448 2,478 Third party 1,588,280 1,288,774 In foreign currency Third party (2) 491,805 1,085,207 2,081,533 2,376,459 1) The consolidated balance refers to transactions with Ibema, in the domestic market, which are not eliminated in the consolidated as there is no control of the operations of these entities by the Company. 2) The Company had a take or pay agreement with Klabin S.A., under conditions differentiated in terms of volume, exclusivity, guarantees and payment terms in up to 360 days, and prices were practiced under conditions of contractually established. Following the requirements imposed by the European Union's competition authority, the contract with Klabin expired in July 2019. For the six-month period ended June 30, 2020, the amount of R$30,165 in the consolidated refers to purchases of Klabin's pulp. |
LOANS, FINANCING AND DEBENTURES
LOANS, FINANCING AND DEBENTURES | 6 Months Ended |
Jun. 30, 2020 | |
LOANS, FINANCING AND DEBENTURES | |
LOANS, FINANCING AND DEBENTURES | 18. LOANS, FINANCING AND DEBENTURES 18.1. Average annual Current Non-current Total interest rate - June 30, December 31, June 30, December 31, June 30, December 31, Type Interest rate % 2020 2019 2020 2019 2020 2019 In foreign currency BNDES UMBNDES 5.93 32,941 26,307 27,165 27,620 60,106 53,927 Bonds (1) Fixed 5.71 806,695 640,177 36,114,088 27,375,673 36,920,783 28,015,850 Export credits (ACC - pre-payment) (1) LIBOR/Fixed 1.52 2,735,141 1,994,868 24,141,791 15,431,478 26,876,932 17,426,346 Others 6,445 3,481 6,445 3,481 3,581,222 2,664,833 60,283,044 42,834,771 63,864,266 45,499,604 In local currency BNDES TJLP 7.18 285,382 283,658 1,389,771 1,517,649 1,675,153 1,801,307 BNDES TLP 9.72 19,036 18,404 431,800 441,233 450,836 459,637 BNDES Fixed 5.06 33,272 39,325 62,313 77,333 95,585 116,658 BNDES SELIC 5.50 85,538 78,458 1,076,966 718,017 1,162,504 796,475 FINAME Fixed 6.43 4,276 4,781 7,917 9,564 12,193 14,345 BNB Fixed 6.73 35,300 37,815 139,361 156,904 174,661 194,719 CRA (“Agribusiness Receivables Certificates”) CDI/IPCA 5.53 1,379,045 2,860,938 2,971,744 2,952,451 4,350,789 5,813,389 NCE (Export credit note) CDI 5.73 65,940 131,914 1,273,045 1,270,065 1,338,985 1,401,979 Rural producer Certificate CDI 8.62 3,955 5,840 273,440 273,303 277,395 279,143 Export credits (“Pre payment”) Fixed 8.07 23,276 77,694 1,313,123 1,312,586 1,336,399 1,390,280 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP Fixed 7.99 72,413 76,596 441,912 475,905 514,325 552,501 Others (Revolving Cost, Working capital and Industrial Development Fund (“FDI”) and fair value adjustment on business combination Fixed 0.40 (52,342) (62,302) 4,470 4,559 (47,872) (57,743) Debentures CDI 6.27 9,810 9,997 5,413,548 5,412,035 5,423,358 5,422,032 1,964,901 3,563,118 14,799,410 14,621,604 16,764,311 18,184,722 5,546,123 6,227,951 75,082,454 57,456,375 80,628,577 63,684,326 Interest on financing 1,019,483 886,886 136,799 1,019,483 1,023,685 Non-current funding 4,526,640 5,341,065 75,082,454 57,319,576 79,609,094 62,660,641 5,546,123 6,227,951 75,082,454 57,456,375 80,628,577 63,684,326 1) The variation is due to the increase in the exchange rate in the six-month period ended June 30, 2020. 18.2. June 30, December 31, 2020 2019 Beginning balance 63,684,326 35,737,509 Amounts from the business combination 20,667,096 Reclassification - accounts payable from lease operations (18,225) Fundraising 6,700,529 18,993,837 Interest accrued 1,736,775 3,362,250 Exchange rate variation, net 16,364,585 1,781,562 Settlement of principal (6,224,940) (13,994,708) Settlement of interest (1,682,413) (2,977,957) Amortization of fundraising costs 39,055 185,807 Other 10,660 (52,845) Ending balance 80,628,577 63,684,326 18.3. 2021 2022 2023 2024 2025 2026 2027 onwards Total In foreign currency BNDES - Currency basket 2,264 13,583 11,318 27,165 Bonds 3,266,344 3,238,123 3,822,186 25,787,435 36,114,088 Export credits (ACC pre-payment) 92,600 2,536,851 10,058,960 7,536,819 3,425,584 490,977 24,141,791 94,864 2,550,434 10,070,278 10,803,163 6,663,707 4,313,163 25,787,435 60,283,044 In local currency BNDES – TJLP 136,711 268,806 268,026 239,884 292,572 169,102 14,670 1,389,771 BNDES – TLP 9,433 18,866 18,866 18,866 17,618 20,120 328,031 431,800 BNDES – Fixed 14,475 24,560 18,599 4,679 62,313 BNDES – Selic 48,712 94,876 118,336 110,275 234,525 197,061 273,181 1,076,966 FINAME 1,908 2,786 1,656 1,198 369 7,917 BNB 17,569 33,081 35,199 33,085 10,258 10,169 139,361 CRA (“Agribusiness Receivables Certificates”) 1,512,680 1,459,064 2,971,744 Export credit note 640,800 632,245 1,273,045 Rural producer certificate 137,500 135,940 273,440 Export credits (“Pre payment”) 1,313,123 1,313,123 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP 33,993 67,986 67,986 67,986 67,986 67,986 67,989 441,912 Others (Revolving costs, working capital, FIDC and FDI) 4,470 4,470 Debentures 2,340,550 2,325,659 747,339 5,413,548 267,271 2,023,641 1,987,732 1,789,096 3,742,178 3,558,282 1,431,210 14,799,410 362,135 4,574,075 12,058,010 12,592,259 10,405,885 7,871,445 27,218,645 75,082,454 18.4. June 30, December 31, 2020 2019 Brazilian Reais 16,751,206 18,170,261 U.S. Dollar 63,817,265 45,460,138 Currency basket 60,106 53,927 80,628,577 63,684,326 18.5. The fundraising costs are amortized based on terms agreements and effective interest rate. Balance to be amortized June 30, December 31, Nature Cost Amortization 2020 2019 Bonds 343,642 95,226 248,416 201,467 CRA and NCE 125,222 85,955 39,267 47,443 Export credits (ACC pre-payment) 102,769 33,875 68,894 40,382 Debentures 24,467 6,915 17,552 19,065 BNDES (“IOF”) (1) 62,658 18,435 44,223 38,447 Others 18,147 13,934 4,213 4,590 676,905 254,340 422,565 351,394 1) Tax on Financial Operations 18.6. 18.6.1. On February 14, 2020, Suzano, through its wholly-owned subsidiaries Suzano Pulp and Paper Europe S.A., Suzano Austria GmbH and Fibria Overseas Finance Ltd., entered into a syndicated export prepayment agreement in the amount of US$850,000 (equivalent, on the transaction date, to R$3,672,259), with a term of six years and maturity in February 2026, grace period of 4 years, quarterly interest payments of 1.15% p.a. plus LIBOR 3M. This transaction is fully and unconditionally guaranteed by Suzano S.A. 18.6.2. On April 2, 2020, the Company through its wholly-owned subsidiary Suzano Pulp and Paper Europe S.A, disbursement of US$500,000 (equivalent, on the transaction date, to R$2,638,221) of its revolving credit facility maintained with certain financial institutions with quarterly payments of 1.30% plus quarterly LIBOR and maturity in February 2024. The disbursement is in line with the preventive measures that the Company has been taking to mitigate eventual impacts resulting from the COVID-19 pandemic and aims to bring even more strength to the liquidity position of the Company. 18.6.3. On June 29, 2020, the Company raised with BNDES the amount of R$400,000 indexed to the Selic interest rate, plus fixed interest of 1.96% p.a., with an average term of 124 months, maturing in February 2040. This funding is in line with the company's strategy of lengthening of the average of its obligations and efficiency in servicing its debt (cost of debt). 18.7. 18.7.1. On February 14, 2020, Suzano, through its wholly-owned subsidiary Suzano Pulp and Paper Europe S.A., voluntarily prepaid the export prepayment agreement in the amount of U.S.$755,864 (equivalent, on the transaction date, to R$3,240,229), with quarterly interest payments of 1.15% p.a. plus quarterly LIBOR, which was scheduled to mature in February 2023. 18.7.2. Make-whole Senior Notes (“ Notes 2021 ”) On March 31, 2020, the Company through its wholly-owned subsidiary Suzano Trading Ltd., redeem all of the outstanding of Senior Notes 2021 in the total amount of US$199,864 (equivalent, on the transaction date, to R$1,039,032) considering redemption price of 104.287% plus interest proportional to the period. 18.7.3. On April 13, 2020, the Company disbursed the total amount of R$612,779, from this amount R$600,000 was related to the payment of principal and R$12,779 of interest of the Agribusiness Receivables Certificate issued in April 2016, with interest of 98% of the CDI, this payment was made due to the normal maturity of the CRA. On June 22, 2020, the single installment of the CRA principal of R$880,155, issued in June 2016, with 97% interest on the CDI, matured. The company disbursed R$895,655 as principal (R$880,155) and interest (R$15,500). 18.8. Some loan and financing agreements have guarantees clauses, in which the financed equipment or other property, plant and equipment are offered by the Company, as disclosed in Note 15.1. The Company does not have contracts with restrictive financial clauses (financial covenants) to be complied with. |
LEASE
LEASE | 6 Months Ended |
Jun. 30, 2020 | |
LEASE | |
LEASE | 19. LEASE 19.1. The rollforward of six-month period ended June 30, 2020 is set forth below: Lands Machines Ships and and and Farms Equipment’s Buildings boats Vehicles Total Balance as of December 31, 2018 Initial adoption on January 1, 2019 1,762,943 143,685 41,570 1,408,640 1,012 3,357,850 Additions 260,982 1,529 39,794 612,022 914,327 Amortization (1) (254,280) (15,163) (35,365) (116,207) (925) (421,940) Balance as of December 31, 2019 1,769,645 130,051 45,999 1,904,455 87 3,850,237 Additions 337,323 2,153 26,716 194,907 63 561,162 Amortization (1) (119,220) (5,054) (10,521) (76,771) (29) (211,595) Balance as of June 30, 2020 1,987,748 127,150 62,194 2,022,591 121 4,199,804 1) The amount of R$118,286 (R$116,577 as of June 30, 2019) related to land is reclassified to biological assets to compose the formation cost. For the six-month period ended June 30, 2020, the Company is not committed to lease agreements not yet in force. 19.2. The balance of lease payables for the six-month period ended June 30, 2020, measured at present value and discounted by the respective discount rates are set forth below: Average rate - % Present value of Nature of agreement p.a. (1) Maturity (2) liabilities Lands and farms 11.45 January 2048 2,164,710 Machines and Equipment’s 10.62 July 2032 247,281 Buildings 9.80 November 2030 41,650 Ships and boats 11.39 February 2039 2,720,284 Vehicles 10.04 December 2021 47 5,173,972 1) To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements. 2) Refers to the original maturities of the agreements and, therefore, do not consider eventual renewal clause. On March 12 and April 12, 2020, for a period of 10 months, two of the ships leased by the Company were made available for chartering from third parties. In the amount of U.S.$7,500 (equivalent, on the transaction date, to R$38,990) The rollforward in the balances in the year ended December 31, 2019 and the six-month period ended June 30, 2020 are as follows: Balance as of December 31, 2018 Initial adoption on January 1, 2019 3,428,897 Additions 914,327 Payments (646,487) Accrual of financial charges (1) 275,404 Exchange rate variation 11,929 Balance as of December 31, 2019 3,984,070 Additions 561,162 Payments (354,289) Accrual of financial charges (1) 240,528 Exchange rate variation 742,501 Balance as of June 30, 2020 5,173,972 Current 704,174 Non-current 4,469,798 1) The amount of R$37,040 related to interest expenses on leased lands is capitalized to biological assets to compose the formation cost (R$30,440 as of June 30, 2019). The maturity schedule of future payment not discounted to present value related to lease liabilities is disclosed in Note 4.2. 19.2.1. In the six-month period ended June 30, 2020 and 2019, the amounts recognized in the unaudited condensed consolidated interim financial information, are set for the below: June 30, June 30, 2020 2019 Expenses relating to short-term assets 2,531 26,570 Expenses relating to low-value assets 6,428 4,581 8,959 31,151 |
PROVISION FOR JUDICIAL LIABILIT
PROVISION FOR JUDICIAL LIABILITIES | 6 Months Ended |
Jun. 30, 2020 | |
PROVISION FOR JUDICIAL LIABILITIES | |
PROVISION FOR JUDICIAL LIABILITIES | 20. PROVISION FOR JUDICIAL LIABILITIES The Company and its subsidiaries are involved in certain legal proceedings arising from the normal course of business, which include tax, labor and civil risks. The Company classifies the risk of unfavorable decisions in the legal proceedings as probable, possible or remote. The Company records provisions for losses classified as probable, as determined by the Company’s Management, based on legal advice, which reflect the estimated probable losses. Contingencies classified as possible loss are disclosed based on reasonably estimated amounts. The Company’s management believes that, based on the elements existing at the base date of these unaudited condensed consolidated interim financial information, its provision for tax, civil, commercial and other, as well for labor risks, accounted for according to IAS 37 is sufficient to cover estimated losses related to its legal proceedings, as set forth below: 20.1. June 30, 2020 Judicial deposits Provision Provision, net Taxes (130,502) 3,137,046 3,006,544 Labor (54,975) 234,300 179,325 Civil and environment (3,337) 258,919 255,582 (188,814) 3,630,265 3,441,451 December 31, 2019 Judicial deposits Provision Provision, net Taxes (124,133) 3,176,503 3,052,370 Labor (50,464) 227,139 176,675 Civil and environment 273 283,159 283,432 (174,324) 3,686,801 3,512,477 20.1.1. Changes in the provision according to the nature of the proceedings for probable losses June 30, 2020 Civil and Contingent Tax Labor environment liabilities (1) Total Beginning balance 492,413 227,139 64,897 2,902,352 3,686,801 Payments (22,706) (16,161) (13,826) (52,693) Write-off (25,331) (20,347) (18,807) (4,150) (68,635) Additions 5,362 30,920 5,951 42,233 Monetary adjustment 6,969 12,749 2,841 22,559 Ending balance 456,707 234,300 41,056 2,898,202 3,630,265 1) Amounts arising from lawsuits with probability of loss possible and remote, measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combination. December 31, 2019 Civil and Contingent Tax Labor environment liabilities (1) Total Beginning balance 296,869 50,869 3,532 351,270 Business combination 139,462 185,157 64,974 389,593 Payments (34) (34,794) (5,532) (40,360) Write-off (3,875) (55,730) (13,434) (73,039) Additions 46,603 50,521 10,100 2,902,352 3,009,576 Monetary adjustment 13,388 31,116 5,257 49,761 Ending balance 492,413 227,139 64,897 2,902,352 3,686,801 1) Amounts arising from lawsuits with probability of loss possible and remote, measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combination. 20.1.2. For the six-month period ended June 30, 2020, the Company was a defendant in 46 (forty-six) administrative proceedings as well as tax lawsuits in which the disputed matters related, CSLL, IRRF, PIS, COFINS, ICMS, , among others whose amounts are provisioned for when the likelihood of loss is deemed probable by the Company’s external legal counsel and the Management. 20.1.3. For the six-month period ended June 30, 2020, the Company was a defendant in 1,180 (one thousand, one hundred and eighty) labor lawsuits. In general, labor lawsuits are related primarily to matters frequently contested by employees in agribusiness companies, such as certain wages and/or severance payments, in addition to suits filed by outsourced employees of the Company. 20.1.4. For the six-month period ended June 30, 2020, the Company is a defendant in approximately 28 (twenty-eight) civil and environmental lawsuits. Civil proceedings are related primarily to payment of damages, such as those resulting from contractual obligations, traffic-related injuries, possessory actions, environmental restoration obligations, claims and others. 20.2. The Company is involved in tax, civil and labor lawsuits, for which losses have been assessed as possible by management with the support from legal counsel and therefore no provision was recorded: June 30, December 31, 2020 2019 Taxes (1) 6,379,823 7,504,398 Labor 293,904 279,934 Civil and environment (1) 3,395,437 2,995,576 10,069,164 10,779,908 1) The amounts above does not include the fair value adjustment allocated to probable contingencies of R$2,865,364, which were recorded at fair value resulting from business combinations with Fibria, in accordance with paragraph 23 of IFRS 3 - Business Combination, as presented in note 20.1.1. above. Main nature of these contingencies are disclosed in the annual financial statements for the year ended December 31, 2019 and have not been significantly changed during this period. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2020 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 21. The Company offers supplementary pension plan and defined benefit plan, such as medical assistance and life insurance. The characteristics of such benefits were disclosed in the annual financial statements for the year ended December 31, 2019 and have not been changed during this period. 21.1. Contributions made by the Company, for Suzano Prev pension plan managed by BrasilPrev, for the six-month period ended June 30, 2020 amounted R$3,505 (R$5,993 as of December 31, 2019) recognized in under cost of sales, selling and general and administrative expenses. Contributions made by the Company, for Senador José Ermírio de Moraes Foundation (FUNSEJEM) pension plan, for the six-month period ended June 30, 2020 amounted to R$4,363 (R$9,920 as of December 31, 2019), recognized under cost of sales, selling and general and administrative expenses. 21.2. The Company offers the following post-employment in addition to the pension plans, which are measured by actuarial calculation and recognized in the unaudited condensed consolidated interim financial information. The rollforward of actuarial liability prepared based on actuarial report, are set forth below: Balance at December 31, 2018 430,427 Business combination 147,877 Interest on employee benefits 44,496 Actuarial loss 147,640 Benefits paid in the year (34,261) Balance on December 31, 2019 736,179 Interest on employee benefits 26,527 Exchange rate variation 449 Benefits paid in the period (19,050) Balance on June 30, 2020 744,105 |
SHARE-BASED COMPENSATION PLAN
SHARE-BASED COMPENSATION PLAN | 6 Months Ended |
Jun. 30, 2020 | |
SHARE-BASED COMPENSATION PLAN | |
SHARE-BASED COMPENSATION PLAN | 22. SHARE-BASED COMPENSATION PLAN For the six-month period ended June 30, 2020, the Company had 3 (three) share-based, long-term compensation plans, (i) Phantom stock option plan (“PS”) and (ii) Share Appreciation Rights (“SAR”), both settled in local currency and (iii) common stock options, settled in shares. The characteristics and measurement method of such each plan were disclosed in the annual financial statements for the year ended December 31, 2019 and have not been changed during this period. As a result of disclosed in note 1.2.1., which deals with the effects arising from COVID19, the Company reassessed the main assumptions used in the measurement share-based compensation plans disclosed in the financial statements of December 31, 2019 and concluded that there were no significant changes in the assumptions compared to the six-month period ended June 30, 2020. 22.1 Long term compensation plans (“PS and SAR”) The rollforward is set forth below: June 30, December 31, 2020 2019 Number of shares in the beginning balance 5,996,437 5,045,357 Granted during of the period 869,251 2,413,038 Exercised (1) (755,707) (827,065) Exercised due to resignation (1) (13,211) (106,983) Abandoned / prescribed due to resignation (123,457) (527,910) Number of shares in the ending balance 5,973,313 5,996,437 1) The average price for share options exercised and exercised due to termination of employment, for the six-month period ended June 30, 2020 was R$38.48 (thirty-eight Brazilian Reais and forty-eight cents) (R$31.75 (thirty-one Brazilian Reais and seventy-five cents) as of December 31, 2019). 22.2 Common stock option plan The position is set forth below: Deadline for the options to become Price on Shares Restricted year for Program Date of grant exercisable grant date Granted transfer of shares Program 4 01/02/2018 01/02/2019 R$ 39.10 130,435 01/02/2022 22.3 Balances and result The amounts corresponding to the services received and recognized in the unaudited consolidated interim financial information are set forth below: Liabilities and equity Income Statement June 30, December 31, June 30, June 30, 2020 2019 2020 2019 Non-current liabilities Provision for phantom stock plan 151,365 136,505 (49,143) (27,529) Shareholders' equity Stock option granted 7,459 5,979 (1,480) (2,638) Total general and administrative expenses from share-based transactions (50,623) (30,167) |
LIABILITIES FOR ASSETS ACQUISIT
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | 6 Months Ended |
Jun. 30, 2020 | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | 23. LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES June 30, December 31, 2020 2019 Lands and forests acquisition Real estate receivables certificates (1) 76,286 78,345 76,286 78,345 Business combination Facepa (2) 42,952 42,533 Vale Florestar Fundo de Investimento em Participações ("VFFIP") (3) 538,897 420,737 581,849 463,270 658,135 541,615 Current liabilities 127,721 94,414 Non-current liabilities 530,414 447,201 1) Refers to obligations with the acquisition of land, farms, reforestation and houses built in Maranhão, restated by the IPCA. 2) Acquired in March 2018, for the amount of R$307,876, upon payment of R$267,876 and the remaining restated at the Amplified Consumer Price Index (“IPCA”), adjusted by any losses incurred through the payment date, with maturities in March 2023 and March 2028. 3) On August 2014, the Company acquired the Vale Florestar S.A. through VFFIP, for the total amount of R$528,941 with a upon payment of R$44,998 and remaining with maturity to August 2029. The monthly settlements are subject to interest and restated at the variation of the U.S. Dollar exchange rate and partially restated by variation of the IPCA. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2020 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 24. 24.1 Share capital On June 30, 2020, the Suzano's share capital is R$9,269,281 divided into 1,361,263,584 common shares, all nominative, book-entry shares without par value. The share capital is net of the public offering expenses of R$33,735. The breakdown of the share capital is set forth below: Ordinary Quantity (%) Shareholder Controlling Shareholders Suzano Holding S.A. 367,612,329 27.01 Controller 194,809,797 14.31 Managements 35,564,742 2.61 Alden Fundo de Investimento em Ações 26,154,741 1.92 624,141,609 45.85 Treasury 12,042,004 0.88 BNDESPAR 150,217,425 11.04 Votorantim S.A. 75,180,059 5.52 Other shareholders 499,682,487 36.71 1,361,263,584 100.00 By resolution of the Board of Directors, the share capital may be increased, irrespective of any amendment to the Bylaws, up to the limit of 780,119,712 common shares, all exclusively book-entry shares. For the six-month period ended June 30, 2020, SUZB3 common shares ended the period quoted at R$36.79 (R$39.68 on December 31, 2019). 24.2 Treasury shares The Company has 12,042,044 common shares of own issuance held in treasury, with an average cost of R$18.13 (eighteen Brazilian Reais and thirteen cents) per share, with historical value of R$218,265 and market value corresponding to R$443,025. For the six-month period ended June 30, 2019, there was no movement of purchase or sale. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 25. EARNINGS (LOSS) PER SHARE 25.1 Basic The basic (loss) earnings per share is measured by dividing the profit attributable to the Company’s shareholders by the weighted average common shares issued during the period, excluding the common shares acquired by the Company and held as treasury shares. June 30, June 30, 2020 2019 Resulted of the period attributable for controlling shareholders' (15,479,631) (526,255) Weighted average number of shares in the period 1,361,264 1,361,264 Weighted average treasury shares (12,042) (12,042) Weighted average number of outstanding shares 1,349,222 1,349,222 Basic loss per common share - R$ (11.47301) (0.39004) 25.2 Diluted The diluted earnings per share is measured by adjusting the weighted average of outstanding common shares, assuming the conversion of all common shares that would cause dilution. June 30, June 30, 2020 2019 Resulted of the period attributed to controlling shareholders' (15,479,631) (526,255) Weighted average number of shares in the period (except treasury shares) 1,349,222 1,349,222 Weighted average number of shares (diluted) 1,349,222 1,349,222 Diluted loss per common share - R$ (11.47301) (0.39004) Due to the loss in the periods, the Company does not consider the dilution effect in the measurement. |
NET FINANCIAL RESULT
NET FINANCIAL RESULT | 6 Months Ended |
Jun. 30, 2020 | |
NET FINANCIAL RESULT | |
NET FINANCIAL RESULT | 26. NET FINANCIAL RESULT June 30, June 30, 2020 2019 Financial expenses Interest on loans, financing and debentures (1) (1,728,835) (1,674,698) Amortization of fundraising costs (41,268) (159,856) Amortization of fair value adjustment on business combination (10,660) 63,128 Other financial expenses (338,787) (307,570) (2,119,550) (2,078,996) Financial income Cash and cash equivalents and marketable securities 108,427 214,116 Amortization of fair value adjustment on business combination 47,619 37,412 Other financial income 47,127 47,401 203,173 298,929 Income from derivative financial instruments Income 990,989 1,052,879 Expenses (11,826,103) (1,432,386) (10,835,114) (379,507) Monetary and exchange rate variation, net Exchange rate variation on loans, financing and debentures (16,364,585) 421,010 Lease (742,501) (11,684) Other assets and liabilities (2) 1,757,291 (106,830) (15,349,795) 302,496 (28,101,286) (1,857,078) 1) Does not include the amount of R$7,940 arising from capitalized interest for the six-month period ended June 30, 2020 (R$1,505 as of June 30, 2019). 2) Includes effects of exchange rate variations of customers, suppliers, cash and cash equivalents, marketable securities and others. |
NET SALES
NET SALES | 6 Months Ended |
Jun. 30, 2020 | |
NET SALES | |
NET SALES | 27. NET SALES June 30, June 30, 2020 2019 Gross sales 17,477,563 14,984,035 Sales deductions Adjustment to present value (8,564) Returns and cancelations (40,981) (47,704) Discounts and rebates (1,901,193) (1,863,366) 15,535,389 13,064,401 Taxes on sales (558,923) (700,320) Net sales 14,976,466 12,364,081 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 28. SEGMENT INFORMATION 28.1 Criteria for identifying operating segments In the financial statements for the year ended December 31, 2019, the information by segment used by the Company was disclosed, which did not change during the period. 28.2 Information of operating segments June 30, 2020 Not Pulp Paper segmented Total Net sales 12,862,936 2,113,530 14,976,466 Domestic market (Brazil) 741,568 1,372,423 2,113,991 Foreign market 12,121,368 741,107 12,862,475 Cost of sales (8,246,527) (1,362,166) (9,608,693) Gross profit 4,616,409 751,364 5,367,773 Gross margin (%) 35.89 % 35.55 % 35.84 % Operating income (expenses) (1,179,960) (323,175) (1,503,135) Selling (875,343) (186,691) (1,062,034) General and administrative (460,226) (190,325) (650,551) Other operating, net 170,212 42,190 212,402 Income (loss) from associates and joint ventures (14,603) 11,651 (2,952) Operating profit before net financial income ("EBIT") (1) 3,436,449 428,189 3,864,638 Operating margin (%) 26.72 % 20.26 % 25.80 % Financial result, net (28,101,286) (28,101,286) Net income (loss) before taxes 3,436,449 428,189 (28,101,286) (24,236,648) Income taxes 8,765,069 8,765,069 Net income (loss) for the period 3,436,449 428,189 (19,336,217) (15,471,579) Profit (loss) margin for the period (%) 26.72 % 20.26 % (103.31) % Result of the period attributable to controlling Shareholders (19,344,269) (15,479,631) Result of the period attributed to non-controlling shareholders 8,052 8,052 Depreciation, depletion and amortization 3,126,528 231,053 3,357,581 1) Earnings before interest and tax. June 30, 2019 Not Pulp Paper segmented Total Net sales 2,308,324 12,364,081 Domestic market (Brazil) 984,098 1,591,902 2,576,000 Foreign market 9,071,659 716,422 9,788,081 Cost of sales (8,414,712) (1,532,300) (9,947,012) Gross profit 776,024 2,417,069 Gross margin (%) 16.3 % 33.6 % 19.5 % Operating income (expenses) (971,698) (377,498) (1,349,196) Selling (712,005) (186,279) (898,284) General and administrative (418,980) (189,816) (608,796) Other operating, net 159,287 (6,972) 152,315 Income from associates and joint ventures 5,569 5,569 Operating profit before net financial income ("EBIT") (1) 669,347 398,526 1,067,873 Operating margin (%) 6.7 % 17.3 % 8.6 % Financial result, net (1,857,078) (1,857,078) Net income (loss) before taxes 669,347 398,526 (1,857,078) (789,205) Income taxes 259,921 259,921 Net income (loss) for the period 669,347 398,526 (1,597,157) (529,284) Profit (loss) margin for the period (%) 6.7 % 17.3 % (4.3) % Result of the period attributable to controlling shareholders (1,594,128) (526,255) Result of the period attributed to non-controlling shareholders (3,029) (3,029) Depreciation, depletion and amortization 4,455,493 239,955 4,695,448 1) Earnings before interest and tax. 28.3 Net sales by product The following table set forth the breakdown of consolidated net sales by product: June 30, June 30, Products 2020 2019 Market pulp (1) 12,862,936 10,055,757 Printing and writing paper (2) 1,661,611 1,902,733 Paperboard 430,292 382,440 Other 21,627 23,151 Net sales 14,976,466 12,364,081 1) Revenue from fluff pulp represents (around 0.6% of total net sales) and, therefore, was included in market pulp sales. 2) Tissue is a recently launched product and its revenues represent less than 2.6% of total net sales. Therefore, it was included in the sales of printing and writing paper. 28.4 Goodwill based on expected future profitability The goodwill based on expected future profitability arising from the business combination were allocated to the disclosable segments, which correspond to the Company's cash-generating units (“CGU”), considering the economic benefits generated by such intangible assets. The allocation of intangibles is set forth below: June 30, December 31, 2020 2019 Pulp 7,942,486 7,942,486 Consumer goods 119,332 119,332 8,061,818 8,061,818 |
RESULTS BY NATURE
RESULTS BY NATURE | 6 Months Ended |
Jun. 30, 2020 | |
RESULTS BY NATURE | |
RESULTS BY NATURE | 29. RESULTS BY NATURE June 30, June 30, 2020 2019 Cost of sales (1) Personnel expenses (505,895) (724,815) Costs with raw materials, materials and services (4,059,893) (3,328,416) Logistics cost (2,025,824) (1,278,385) Depreciation, depletion and amortization (2) (2,843,700) (4,321,013) Operating expenses Covid-19 (3) (15,500) Other (157,881) (294,383) (9,608,693) (9,947,012) Selling expenses Personnel expenses (93,913) (100,942) Services (53,938) (41,602) Logistics cost (410,230) (273,414) Depreciation, depletion and amortization (460,597) (441,995) Other (4) (43,356) (40,331) (1,062,034) (898,284) General and Administrative expenses Personnel expenses (351,108) (351,784) Services (134,501) (138,370) Depreciation, depletion and amortization (43,814) (20,468) Social actions Covid-19 (48,024) Operating expenses Covid-19 (2) (10,729) Other (5) (62,375) (98,174) (650,551) (608,796) Other operating income (expenses) net Rents and leases 2,365 668 Result from sale of other products, net 24,886 12,895 Result from sale and disposal of property, plant and equipment and biological assets, net 9,343 (27,568) Result on fair value adjustment of biological assets 173,733 83,453 Insurance reimbursement 4,129 6,587 Provision for loss of judicial deposits (3,284) Amortization and depletion (9,470) (9,192) Sale of legal credits (Eletrobrás) 87,000 Result on disposal of investments (9,404) Other operating income (expenses), net 16,820 1,756 212,402 152,315 1) Includes the amount of R$149,087, related to idle capacity and maintenance downtime (there were no expenses as of June 30, 2019). 2) In the period ended June 30, 2019 includes amortization of the inventories step up, resulting from the business combination with Fibria, in the amount of R$2,178,903. 3) Includes, mainly, expenses in the manufacturing units for the refurbishment of cafeterias and workplaces, expansion of the frequency of conservation, cleaning, hygiene and maintenance of common areas, public transport with greater space between passengers, distribution of masks and realization rapid tests on employees working in factories. 4) Includes expected credit losses, insurance, materials of use and consumption, expenses with travel, accommodation, participation in trade fairs and events. 5) Includes corporate expenses, insurance, materials of use and consumption social projects and donations, expenses with travel and accommodation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 30. In connection with the announcement to the market made on March 30, 2020, the Company announces that it carried out on August 13, 2020 the notice of its intention to pay the revolving credit facility in the amount of US$500,000 (equivalent, on the transaction date, to R$2,638,221) which was withdrawn on April 1, 2020, at the cost of LIBOR + 1.30% p.a., with an average term of 47 months and maturity in February 2024. The settlement is scheduled for August 20, 2020 and such resources are fully available as a source of additional liquidity for the Company, if necessary. Suzano considers that, due the greater visibility of possible impacts resulting from the COVID-19 pandemic in its business environment and its robust cash position, the withdrawal of its revolving credit facility line is no longer necessary. It is important mentioning that such settlement will allow greater efficiency in the Company's cash management. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Translation into currency presentation | 3.1.1. Due to the merger with Fibria, the Company had several changes in the structure, activities and operations during 2019 that led management to conclude that they needed to reassess the functional currency of its subsidiaries whose functional currency was different from Brazilian Reais. Those facts resulted in the corporate reorganization, as well as, it has impacted how management conducted the Company's business in order to achieve the alignment between the cultures of the two Companies, the unification of processes, operating, tax systems and strategies, through synergy gains arising from the business combination. In this process some of Company’s wholly-owned subsidiaries were considered an extension of the activities of the parent company. These circumstances collectively justify the change in the functional currency to Brazilian Real and they have occurred gradually during 2019, therefore it was not practicable to determine the date of the change at a precise point during the reporting period. Thus, the Company changed the functional currency of those wholly-owned subsidiaries as of January 1, 2020. The cumulative translation adjustment (“CTA”) arising from the translation of a foreign operation previously recognized in other comprehensive income will not be reclassified from equity to profit or loss until the disposal of the operations. The total or partial disposal of interest in wholly-owned subsidiaries occurs through sale or dissolution, of all or part of operation. Therefore, the financial statements of foreign subsidiaries, whose functional currency was different from Brazilian Reais in 2019, were translated using the criteria established below: (i) assets and liabilities are translated at the exchange rate in effect at period-end; (ii) revenues and expenses are translated based on the monthly average rate; (iii) the cumulative effects of gains or losses upon translation are recognized as accumulated foreign currency translation adjustments component of other comprehensive income. And as from January 1, 2020, the financial statements of foreign subsidiaries are translated using the following criteria: (i) monetary assets and liabilities are translated at the exchange rate in effect at period-end; (ii) non-monetary assets and liabilities are translated at the historical rate of the transaction; (iii) revenues and expenses are translated based on monthly average rate; (iv) the cumulative effects of gains or losses upon translation are recognized in the other comprehensive income period-end. |
Business combination - IFRS 3 | 3.1.2. This pronouncement was amended and clarifies definition of a “business”. It is also permitted a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Presentation of financial statements - IAS 1 and Accounting policies, changes in accounting estimates and errors - IAS 8 | 3.1.3. This pronouncement was amended and clarifies definition of a “material” and how it should be applied by (i) including in the definition guidance that until now has featured elsewhere in IFRS Standards; (ii) improving the explanations accompanying the definition; and (iii) ensuring that the definition of material is consistent across all IFRS Standards. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Conceptual framework for financial reporting | 3.1.4. This pronouncement was amended and includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts, the main changes are set forth below: (i) (ii) (iii) (iv) Previous definition New definition Asset : A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Asset : A present economic resource controlled by the entity as a result of past events. An economic resource is a right that has the potential to produce economic benefits. The new definition clarifies that an asset is an economic resource, and that the potential economic benefits no longer need to be “expected” to flow to the entity. Thus, they do not need to be certain or even likely, but if this is the case, the recognition and measurement of the asset may be affected. Liability : A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Liability : A present obligation of the entity to transfer an economic resource as a result of past events. The main difference is that the new definition clarifies that a liability is the obligation to transfer an economic resource, and not the ultimate outflow of economic benefits. The outflow also no longer needs to be ‘expected’, similar to the change in the definition of an asset, above. It was also introduced the concept of ‘no practical ability to avoid’ to the definition of an obligation, and factors used to assess this will depend on the nature of an entity’s duty or responsibility, which requires the use of judgement. Income : increases in economic benefits during the accounting period in the form of inflows or enhancements of assets, or decreases of liabilities, that result in increases in equity, other than those relating to contributions from equity participants. Income : Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims. . Expense: Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets, or incurrences of liabilities, that result in decreases in equity, other than those relating to distributions to equity participants. Expense: Decreases in assets, or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims (v) (vi) • • (vii) (viii) The Company assessed the content of this pronouncement and did not identify any material impacts. |
Lease - CPC 06 (R2) / IFRS 16 | 3.2. This pronouncement was changed as a result of benefits related to Covid-19 granted to lessee under lease agreements. The Company assessed the content of this pronouncement and did not identify any impacts, for the clauses of the current lease agreements remained unchanged. |
New standards, revisions and interpretation not yet in force | 3.3. 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 unaudited consolidated condensed interim financial information. |
COMPANY'S OPERATIONS (Tables)
COMPANY'S OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
COMPANY'S OPERATIONS | |
Summary of equity interest in the entities | % equity interest Type of Accounting June 30, December 31, Entity Main activity Country investment method 2020 2019 AGFA – Com. Adm. e Participações Ltda. Holding Brazil Direct Consolidated 100.00 % 100.00 % Asapir Produção Florestal e Comércio Ltda. Eucalyptus cultivation Brazil Direct Consolidated 100.00 % 100.00 % CelluForce Inc. Nanocrystalline pulp research and development Canada Direct Fair value through other comprehensive income 8.30 % 8.30 % Comercial e Agrícola Paineiras Ltda. Lease of reforestation land Brazil Direct Consolidated 99.99 % 99.99 % Ensyn Corporation Bio fuel research and development United States of America Direct Equity 25.30 % 25.30 % Facepa - Fábrica de Papel da Amazônia S.A. Industrialization and commercialization of tissue paper Brazil Direct/Indirect Consolidated 92.80 % 92.80 % Fibria Celulose (USA) Inc. Business office United States of America Direct Consolidated 100.00 % 100.00 % Fibria Terminal de Celulose de Santos SPE S.A. Port operation Brazil Direct Consolidated 100.00 % 100.00 % Fibria Overseas Finance Ltd. Financial fundraising Cayman Island Direct Consolidated 100.00 % 100.00 % Fibria Terminais Portuários S.A. Port operation Brazil Direct Consolidated 100.00 % 100.00 % FuturaGene AgriDev Xinjiang Company Ltd. Biotechnology research and development China Indirect Consolidated 100.00 % 100.00 % FuturaGene Biotechnology Shangai Company Ltd. Biotechnology research and development China Indirect Consolidated 100.00 % 100.00 % FuturaGene Brasil Tecnologia Ltda. Biotechnology research and development Brazil Direct/Indirect Consolidated 100.00 % 100.00 % FuturaGene Delaware Inc. Biotechnology research and development United States of America Indirect Consolidated 100.00 % 100.00 % FuturaGene Hong Kong Ltd. Biotechnology research and development Hong Kong Indirect Consolidated 100.00 % 100.00 % FuturaGene Inc. Biotechnology research and development United States of America Indirect Consolidated 100.00 % 100.00 % FuturaGene Israel Ltd. Biotechnology research and development Israel Indirect Consolidated 100.00 % 100.00 % FuturaGene Ltd. Biotechnology research and development England Indirect Consolidated 100.00 % 100.00 % F&E Tecnologia do Brasil S.A. (1) Biofuel production, except alcohol Brazil Direct Consolidated 100.00 % 100.00 % F&E Technologies LLC Biofuel production, except alcohol United States of America Direct Equity 50.00 % 50.00 % Gansu FuturaGene Biotech Co. Ltd. (2) Biotechnology research and development China Indirect Consolidated 100.00 % Ibema Companhia Brasileira de Papel Industrialization and commercialization of paperboard Brazil Direct Equity 49.90 % 49.90 % Itacel - Terminal de Celulose de Itaqui S.A. Port operation Brazil Indirect Consolidated 100.00 % 100.00 % Maxcel Empreendimentos e Participações S.A. Holding Brazil Direct Consolidated 100.00 % 100.00 % Mucuri Energética S.A. Power generation and distribution Brazil Direct Consolidated 100.00 % 100.00 % Ondurman Empreendimentos Imobiliários Ltda. Lease of reforestation land Brazil Direct/Indirect Consolidated 100.00 % 100.00 % Paineiras Logística e Transportes Ltda. Road freight transport Brazil Direct /Indirect Consolidated 100.00 % 100.00 % Portocel - Terminal Espec. Barra do Riacho S.A. Port operation Brazil Direct Consolidated 51.00 % 51.00 % Projetos Especiais e Investimentos Ltda. Commercialization of equipment and parts Brazil Direct Consolidated 100.00 % 100.00 % Rio Verde Participações e Propriedades Rurais S.A. (3) Forest assets Brazil Direct Consolidated 100.00 % 100.00 % Spinnova OY Research and development of sustainable raw materials (wood) for the textile industry Finland Direct Equity 24.06 % 24.06 % Stenfar S.A. Indl. Coml. Imp. Y. Exp. Commercialization of computer paper and materials Argentine Direct /Indirect Consolidated 100.00 % 100.00 % Suzano Austria GmbH. Business office Austria Direct Consolidated 100.00 % 100.00 % Suzano Canada Inc. Lignin research and development Canada Direct Consolidated 100.00 % 100.00 % Suzano International Trade GmbH. Business office Austria Direct Consolidated 100.00 % 100.00 % Suzano Participações do Brasil Ltda. (4) Holding Brazil Direct Consolidated 100.00 % Suzano Pulp and Paper America Inc. Business office United States of America Direct Consolidated 100.00 % 100.00 % Suzano Pulp and Paper Europe S.A. Business office Switzerland Direct Consolidated 100.00 % 100.00 % Suzano Shanghai Ltd. (5) Customer relationship services China Direct Consolidated 100.00 % Suzano Trading Ltd. Business office Cayman Island Direct Consolidated 100.00 % 100.00 % Suzano Trading International KFT Business office Hungary Direct Consolidated 100.00 % 100.00 % Veracel Celulose S.A. (6) Industrialization, commercialization and exportation of pulp Brazil Direct Consolidated 50.00 % 50.00 % 1) On May 31, 2020, reorganization of equity interest as a result of the merger of Suzano Participações do Brasil Ltda. by Suzano S.A. Previously, the participation of this entity was directly held by Suzano Participações do Brasil Ltda. and indirectly by Suzano S.A. After the merger, it was held directly by Suzano S.A. 2) On April 8, 2020, disposal of equity interest. 3) On May 31, 2020, reorganization of equity interest as a result of the merger of Suzano Participações do Brasil Ltda. by Suzano S.A. Previously, the participation of this entity was directly held by Suzano Participações do Brasil Ltda. and indirectly by Suzano S.A. After the merger, it was held directly by Suzano S.A. 4) On May 31, 2020, merger of the entity by Suzano S.A. 5) On February 26, 2020, establishment of legal entity arising from corporate reorganization. 6) Joint operation with Stora Enso, a company located in Finland |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments and Risks Management | |
Schedule of financial instruments by category | June 30, December 31, Note 2020 2019 Assets Amortized cost Cash and cash equivalents 5 10,473,701 3,249,127 Trade accounts receivable 7 3,762,875 3,035,817 Other assets 513,104 563,993 14,749,680 6,848,937 Fair value through other comprehensive income Other investments 14 25,976 20,048 25,976 20,048 Fair value through profit or loss Derivative financial instruments 4.5 1,078,437 1,098,972 Marketable securities 6 2,213,496 6,330,334 3,291,933 7,429,306 18,067,589 14,298,291 Liabilities Amortized cost Loans, financing and debentures 18.1 80,628,577 63,684,326 Lease liabilities 19.2 5,173,972 3,984,070 Liabilities for assets acquisitions and subsidiaries 23 658,135 541,615 Trade accounts payable 17 2,081,533 2,376,459 Other liabilities 337,106 578,061 88,879,323 71,164,531 Fair value through profit or loss Derivative financial instruments 4.5 11,898,332 2,917,913 11,898,332 2,917,913 100,777,655 74,082,444 82,710,066 59,784,153 |
Summary of estimated fair value of loans and financing | Approach used June 30, December 31, to discount 2020 2019 Quoted in the secondary market In foreign currency Bonds Secondary Market 38,795,348 30,066,087 Estimated to present value In foreign currency Export credits ("Pre-payment") LIBOR 26,123,478 17,213,963 Export credits ("ACC/ACE") DI 1 799,183 575,521 In local currency BNP – Forest Financing DI 1 177,376 193,646 BNDES – TJLP DI 1 1,759,652 1,895,959 BNDES - TLP DI 1 523,828 535,812 BNDES – Fixed DI 1 95,259 113,979 BNDES – Selic ("Special Settlement and Custody System") DI 1 938,208 693,969 BNDES - Currency basket DI 1 61,488 54,420 CRA ("Agribusiness Receivables Certificate") DI 1 4,583,620 6,039,983 Debentures DI 1 5,416,351 5,534,691 FINAME ("Special Agency of Industrial Financing") DI 1 11,816 14,168 FINEP ("Financier of Studies and Projects") DI 1 1,287 5,138 NCE ("Export Credit Notes") DI 1 1,354,814 1,445,383 NCR ("Rural Credit Notes") DI 1 280,876 288,122 Export credits ("Pre-payment") DI 1 1,435,407 1,464,798 FDCO ("West Center Development Fund") DI 1 541,291 571,904 82,899,282 66,707,543 |
Schedule of contractual maturities of financial liabilities | June 30, 2020 Total book Total future Up to 1 1 - 2 2 - 5 More than value value year years years 5 years Liabilities Trade accounts payables 2,081,533 2,081,533 2,081,533 — — — Loans, financing and debentures (1) 80,628,577 110,480,401 7,742,122 4,575,792 45,904,453 52,258,034 Lease liabilities 5,173,972 9,733,128 842,789 1,566,704 2,064,169 5,259,466 Liabilities for asset acquisitions and subsidiaries 658,135 744,790 134,005 129,699 365,836 115,250 Derivative financial instruments (1) 11,898,332 18,155,523 4,556,320 1,415,206 4,726,006 7,457,991 Other liabilities 337,106 337,106 252,972 84,134 100,777,655 141,532,481 15,609,741 7,771,535 53,060,464 65,090,741 1) December 31, 2019 Total book Total future Up to 1 1 - 2 2 - 5 More than value value year years years 5 years Liabilities Trade accounts payables 2,376,459 2,376,459 2,376,459 — — — Loans, financing and debentures 63,684,326 89,708,210 8,501,278 5,692,149 29,088,292 46,426,491 Lease liabilities 3,984,070 7,109,966 559,525 1,426,011 1,186,386 3,938,044 Liabilities for asset acquisitions and subsidiaries 541,615 618,910 103,132 101,149 315,989 98,640 Derivative financial instruments 2,917,913 8,299,319 1,488,906 415,791 1,258,200 5,136,422 Other liabilities 578,061 578,061 456,338 121,723 74,082,444 108,690,925 13,485,638 7,756,823 31,848,867 55,599,597 |
Schedule of net exposure of assets and liabilities in foreign currency | June 30, December 31, 2020 2019 Assets Cash and cash equivalents 9,895,463 2,527,834 Trade accounts receivables 2,891,501 2,027,018 Derivative financial instruments 242,235 9,440,141 13,029,199 13,994,993 Liabilities Trade accounts payables (491,805) (1,085,207) Loans and financing (63,817,265) (45,460,138) Liabilities for asset acquisitions and subsidiaries (401,273) (288,172) Derivative financial instruments (10,485,935) (11,315,879) (75,196,278) (58,149,396) Net liability exposure (62,167,079) (44,154,403) |
Schedule of derivatives by type of contract | Notional value in U.S.$ Fair value June 30, December 31, June 30, December 31, 2020 2019 2020 2019 Instruments contracted with protection strategy Operational Hedge Zero Cost Collar 3,365,500 3,425,000 (2,948,115) 67,078 NDF (R$ x US$) 25,000 (29,511) NDF (US$ x ARS) 5,500 (2,178) Debt hedge Interest rate hedge Swap LIBOR to Fixed (U.S.$) (1) 3,683,333 2,750,000 (1,273,250) (444,910) Swap IPCA to CDI (notional in Reais ) 843,845 843,845 251,599 233,255 Swap IPCA to Fixed (U.S.$) 121,003 121,003 (172,557) 30,544 Swap CDI x Fixed (U.S.$) (1) 2,676,617 3,115,614 (6,454,249) (1,940,352) Pre-fixed Swap to U.S.$ (U.S.$) 350,000 350,000 (637,090) (33,011) Hedge de Commodity Swap US-CPI standing wood (U.S.$) (2) 657,207 679,485 522,073 268,547 Swap Bunker (oil) 87,486 365 (76,617) (92) (10,819,895) (1,818,941) Current assets 152,978 260,273 Non-current assets 925,459 838,699 Current liabilities (4,529,091) (893,413) Non-current liabilities (7,369,241) (2,024,500) (10,819,895) (1,818,941) |
Schedule of maturity analysis for derivatives | June 30, December 31, 2020 2019 2020 (2,715,171) (633,644) 2021 (2,184,320) 98,850 2022 (1,148,302) (154,734) 2023 (563,163) 185,209 2024 (801,662) (197,718) 2025 (1,845,634) (606,827) 2026 onwards (1,561,643) (510,077) (10,819,895) (1,818,941) |
Schedule of long and short positions of outstanding derivatives | Notional value Fair value June 30, December 31, June 30, December 31, Currency 2020 2019 2020 2019 Debt hedge Assets Swap CDI x Fixed (U.S.$) R$ 9,963,450 11,498,565 511 11,673,117 Swap Pre-Fixed to U.S.$ (U.S.$) R$ 1,317,226 1,317,226 122,341 1,478,336 Swap LIBOR x Fixed (U.S.$) US$ 3,683,333 2,750,000 62,489 11,063,970 Swap IPCA x CDI IPCA 943,055 933,842 251,599 1,093,067 Swap IPCA x U.S.$ IPCA 504,368 499,441 579,307 436,940 25,887,797 Liabilities Swap CDI x Fixed (U.S.$) US$ 2,676,617 3,115,614 (6,454,760) (13,613,469) Swap LIBOR x Fixed (U.S.$) US$ 350,000 350,000 (759,431) (1,511,347) Swap LIBOR x Fixed (U.S.$) US$ 3,683,333 2,750,000 (1,335,739) (11,508,880) Swap IPCA x CDI R$ 843,845 843,845 (859,812) Swap IPCA x U.S.$ US$ 121,003 121,003 (172,557) (548,763) (8,722,487) (28,042,271) (8,285,547) (2,154,474) Operational hedge Zero cost collar (U.S.$ x R$) US$ 3,365,500 3,425,000 (2,948,115) 67,078 NDF (R$ x U.S.$) US$ 25,000 (29,511) NDF (US$ x ARS) 5,500 (2,178) (2,979,804) 67,078 Commodity hedge Swap US-CPI (standing wood) US$ 657,207 679,485 522,073 268,547 Swap Bunker (oil) US$ 87,486 365 (76,617) (92) 445,456 268,455 (10,819,895) (1,818,941) |
Schedule of settled derivatives | June 30, December 31, 2020 2019 Operational hedge Zero cost collar (R$ x U.S.$) (962,595) (104,040) NDF (R$ x U.S.$) (30,700) 63,571 (993,295) (40,469) Commodity hedge Swap Bunker (oil) (36,805) 3,804 (36,805) 3,804 Debt hedge Swap CDI x Fixed (U.S.$) (369,601) (68,362) Swap IPCA x CDI (441,056) 23,024 Swap IPCA x USD 10,054 Swap Pre-Fixed to U.S.$ (U.S.$) 59,351 (26,358) Swap LIBOR x Fixed (U.S.$) (62,898) (27,088) (804,150) (98,784) (1,834,250) (135,449) |
Schedule of fair value hierarchy | June 30, 2020 Level 1 Level 2 Level 3 Total Assets Fair value through profit or loss Derivative financial instruments 1,078,437 1,078,437 Marketable securities 825,972 1,387,524 2,213,496 825,972 2,465,961 3,291,933 Fair value through other comprehensive income Other investments - CelluForce 25,976 25,976 25,976 25,976 Biological assets 10,672,724 10,672,724 10,672,724 10,672,724 Total assets 825,972 2,465,961 10,698,700 13,990,633 Liabilities Fair value through profit or loss Derivative financial instruments 11,898,332 11,898,332 11,898,332 11,898,332 Total liabilities 11,898,332 11,898,332 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Fair value through profit or loss Derivative financial instruments 1,098,972 1,098,972 Marketable securities 1,631,319 4,699,015 6,330,334 1,631,319 5,797,987 7,429,306 Fair value through other comprehensive income Other investments - CelluForce 20,048 20,048 20,048 20,048 Biological assets 10,571,499 10,571,499 10,571,499 10,571,499 Total assets 1,631,319 5,797,987 10,591,547 18,020,853 Liabilities Fair value through profit or loss Derivative financial instruments 2,917,913 2,917,913 2,917,913 2,917,913 Total liabilities 2,917,913 2,917,913 |
Currency Risk | Financial instruments, excluding derivatives | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | June 30, 2020 Effect on profit or loss and equity Possible Remote Probable (25%) (50%) Cash and cash equivalents 9,895,463 2,473,866 4,947,732 Trade accounts receivable 2,891,501 722,875 1,445,751 Trade accounts payable (491,805) (122,951) (245,903) Loans and financing (63,817,265) (15,954,316) (31,908,633) Liabilities for asset acquisitions and subsidiaries (401,273) (100,318) (200,637) |
Currency Risk | Derivative financial instruments | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | June 30, 2020 Effect on profit or loss and equity Possible Remote Possible Remote Probable (+25%) (+50%) (-25%) (-50%) 5.4416 6.802 8.1624 4.0812 2.7208 Financial instruments derivatives Derivative options (2,955,980) (4,195,471) (8,658,160) 3,740,215 7,973,398 Derivative Non-Deliverable Forward (‘NDF’) (29,511) (33,907) (67,814) 33,908 67,815 Derivative swaps (8,526,926) (5,279,964) (10,559,931) 5,279,972 10,559,940 |
Interest rate risk | Financial instruments, excluding derivatives | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | June 30, 2020 Effect on profit or loss and equity Probable Possible (25%) Remote (50%) CDI Cash and cash equivalents 358,900 1,929 3,858 Marketable securities 2,213,496 11,898 23,795 Loans and financing 9,919,194 53,316 106,631 TJLP Loans and financing 1,700,469 21,001 42,002 LIBOR Loans and financing 25,131,914 18,975 37,949 |
Interest rate risk | Derivative financial instruments | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | June 30, 2020 Effect on profit or loss and equity Probable Remote Probable Remote Probable (+25%) (+50%) (-25%) (-50%) CDI Financial instruments derivatives Liabilities Derivative options (2,955,980) (46,186) (91,962) 46,622 93,698 Derivative Non-Deliverable Forward (‘NDF’) (29,511) (97) (195) 99 198 Derivative swaps (8,526,926) (27,243) (53,863) 27,830 56,172 LIBOR Financial instruments derivatives Liabilities Derivative swaps (8,526,926) 50,308 100,602 (50,308) (100,630) |
U.S. Consumer Price Index | Derivative financial instruments | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | June 30, 2020 Impact of an increase/decrease of US-CPI on the fair value Probable Possible (25%) Remote (50%) Embedded derivative in forestry partnership and standing wood supply agreements 522,073 (117,134) (238,426) |
Commodity price risk | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | June 30, 2020 Impact of an increase/decrease of price risk Probable Possible (25%) Remote (50%) Oil derivative (76,702) 168,646 260,591 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash and cash equivalents | Average yield June 30, December 31, p.a. % 2020 2019 Cash and banks 0.40 6,070,196 2,464,097 Cash equivalents Local currency Fixed-term deposits (1) 75.34% of CDI 358,900 630,075 Foreign currency Fixed-term deposits (1) 4,044,605 154,955 10,473,701 3,249,127 1) Refers to Time Deposit and Sweep Account applications, maturing up to 90 days. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
MARKETABLE SECURITIES | |
Schedule of marketable securities | Average yield June 30, December 31, p.a. % 2020 2019 In local currency Investment funds 25.61% of CDI 6,587 6,683 Private funds 93.31% of CDI 12,668 1,431,303 Public titles measured at fair value through profit or loss 93.31% of CDI 825,972 1,631,319 Private Securities (Compromised) 100.00% of CDI 1,185,333 3,081,326 Private Securities (Compromised) - Escrow Account (1) 102.00% of CDI 182,936 179,703 2,213,496 6,330,334 Current 2,030,560 6,150,631 Non-Current 182,936 179,703 |
TRADE ACCOUNTS RECEIVABLE (Tabl
TRADE ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
TRADE ACCOUNTS RECEIVABLE | |
Schedule of trade accounts receivable by type of customer | June 30, December 31, 2020 2019 Domestic customers Third parties 888,372 1,027,034 Related parties (Note 11) (1) 35,394 23,761 Foreign customers Third parties 2,891,501 2,027,018 (-) Expected credit losses (52,392) (41,996) 3,762,875 3,035,817 |
Schedule of trade accounts receivable by maturity | June 30, December 31, 2020 2019 Current 3,236,279 2,552,459 Overdue Up to 30 days 324,675 180,909 From 31 to 60 days 72,830 148,388 From 61 to 90 days 23,836 20,448 From 91 to 120 days 15,518 20,680 From 121 to 180 days 10,844 17,899 More than 180 days 78,893 95,034 3,035,817 |
Schedule of rollforward of expected credit losses, trade accounts receivable | June 30, December 31, 2020 2019 Beginning balance (41,996) (37,179) Business combination (5,947) Addition (10,250) (18,650) Reversal 187 6,364 Write-off 2,117 13,383 Exchange rate variation (2,450) 33 Ending balance (52,392) (41,996) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INVENTORIES | |
Schedule of inventories | June 30, December 31, 2020 2019 Finished goods Pulp Domestic (Brazil) 430,958 575,335 Foreign 1,407,928 2,229,206 Paper Domestic (Brazil) 372,952 199,635 Foreign 118,701 70,199 Work in process 98,037 75,377 Raw material 1,300,430 1,047,433 Spare parts and other 477,772 488,410 4,206,778 4,685,595 |
Schedule of rollforward of expected credit losses, inventories | June 30, December 31, 2020 2019 Beginning balance (106,713) (33,195) Business combination (11,117) Addition (1) (33,653) (111,077) Reversal 1,033 9,734 Write-off (2) 71,351 38,942 Ending balance (67,982) (106,713) 1) 2) The write-off of inventory, in the six-month period ended June 30, 2020, refers mainly to the amounts of (i) finished pulp product of R$31,088 (R$666 as of December 31, 2019) and (ii) raw material of R$32,600 (R$26,083 as of December 31, 2019). |
RECOVERABLE TAXES (Tables)
RECOVERABLE TAXES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
RECOVERABLE TAXES | |
Schedule of recoverable taxes | June 30, December 31, 2020 2019 IRPJ/CSLL – prepayments and withheld taxes 562,835 575,351 PIS/COFINS – on acquisition of property, plant and equipment (1) 133,182 61,376 PIS/COFINS – operations 303,636 507,919 PIS/COFINS – exclusion ICMS (2) 128,115 128,115 ICMS – on acquisition of property, plant and equipment (3) 109,045 115,560 ICMS – operations (4) 1,500,659 1,515,840 Reintegra program (5) 119,580 108,657 Other taxes and contributions 22,680 18,758 Provision for loss of ICMS credits (6) (1,279,208) (1,304,329) Provision for loss of PIS/COFINS credits (21,132) 1,600,524 1,706,115 Current 888,245 997,201 Non-current 712,279 708,914 1) Social Integration Program (“PIS”) and Social Security Funding Contribution (“COFINS”): Credits whose realization is in connection with depreciation year of the corresponding asset. 2) The Company filed legal actions claiming the exclusion of ICMS from the PIS and COFINS contribution tax basis, in relation to certain operations for certain periods starting from March 1992. Regarding this subject, the Federal Supreme Court (“STF”) initially decided on March 15th, 2017, that ICMS is not included in the tax basis of the aforementioned contributions. The Federal Government made an appeal (“Embargos de Declaração ”) in October 2017, requesting the reversal of the Supreme Court’s initial decision among other items. The appeal has yet to be judged. Based on the Supreme Court’s initial decision and the legal opinion provided by external legal consultants, the Company believes that the probability of the Supreme Court altering its decision is remote. The Company thus started to exclude the ICMS from the tax basis of the referred contributions since August 2018, a practice also supported by court decisions. For certain PIS and COFINS credits to be recovered, the Company has received final favorable court decisions. The balance recognized in the statement of income (loss) in 2019 within other operational results, regarding certain claims for the calculation period from 2006 to July 2018. The Company has estimated the amount attributable to these claims based on the available relevant fiscal documents, and this amount is subject to adjustments to be recorded by management in the future periods. The Company has additional claims for which a final decision has not been received and for which no asset or gain have been recorded. 3) Tax on Sales and Services (“ICMS”): Credits from the acquisition of property, plant and equipment are recovered on a linear basis over a four period, from the acquisition date, in accordance with the relevant regulation, ICMS Control on Property, Plant and Equipment (“CIAP”). 4) ICMS credits accrued due to the volume of exports and credit generated in operations of entry of products: Credits are concentrated in the state of Maranhão, Espírito Santo, Bahia and Mato Grosso do Sul, where the Company realizes the credits through sale of credits to third parties, after approval from the State Ministry of Finance. Credits are also being realized through consumption in its consumer goods (tissue) operations in the domestic market that are already operational in Maranhão. 5) Special Regime of Tax Refunds for Export Companies ("Reintegra"): Reintegra is a program that aims to refund the residual costs of taxes paid throughout the exportation chain to taxpayers, to make them more competitive in foreign markets. 6) Includes the provision for discount on sale to third parties of the accumulated ICMS credit in Maranhão and the provision for full loss of the low probability of realization of the units of Espírito Santo, Bahia and Mato Grosso do Sul due to the difficulty of its realization. |
Schedule of rollforward of provision for loss | ICMS PIS/COFINS Total Balance as of December 31, 2018 (10,792) (10,792) Business combination (1,211,109) (1,211,109) Addition (82,428) (21,132) (103,560) Balance as of December 31, 2019 (1,304,329) (21,132) (1,325,461) Addition (48,151) (48,151) Write-off 73,272 21,132 94,404 Balance as of June 30, 2020 (1,279,208) (1,279,208) |
ADVANCE TO SUPPLIERS (Tables)
ADVANCE TO SUPPLIERS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
ADVANCE TO SUPPLIERS | |
Schedule of advances to suppliers | June 30, December 31, 2020 2019 Forestry development program 1,149,832 1,087,149 Advance to suppliers 106,636 170,481 1,256,468 1,257,630 Current 106,636 170,481 Non-current 1,149,832 1,087,149 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
RELATED PARTIES | |
Schedule of related party transactions | Balances receivable (payable) June 30, December 31, Nature 2020 2019 Transactions with controlling shareholders Suzano Holding S.A. Granting of guarantees and administrative expenses 5 3 5 3 Transactions with companies of the Suzano Group and other related parties Management Reimbursement for expenses — (1) Bexma Participações Ltda. Reimbursement for expenses 2 1 Bizma Investimentos Ltda. Reimbursement for expenses 1 1 Ensyn Technologies Reimbursement for expenses 2,004 — Ibema Companhia Brasileira de Papel Sale of pulp 33,382 23,755 Ibema Companhia Brasileira de Papel Purchase of products (1,448) (2,467) Instituto Ecofuturo - Futuro Para o Desenvolvimento Sustentável Social services — (9) 33,941 21,280 33,946 21,283 Assets Trade accounts receivable 35,394 23,761 Liabilities Trade accounts payable (1,448) (2,478) 33,946 21,283 Expenses (income) June 30, June 30, Nature 2020 2019 Transactions with controlling shareholders Suzano Holding S.A. Granting of guarantees and administrative expenses (2,459) (3,285) (2,459) (3,285) Transactions with companies of the Suzano Group and other related parties Management Reimbursement for expenses (831) (595) Bexma Participações Ltda. Reimbursement for expenses 7 3 Bizma Investimentos Ltda. Reimbursement for expenses 7 6 Fundação Arymax Reimbursement for expenses 1 — Ibema Companhia Brasileira de Papel Sale of paper 48,829 66,769 Ibema Companhia Brasileira de Papel Purchase of products (2,241) (3,415) Instituto Ecofuturo - Futuro para o Desenvolvimento Sustentável Social services (2,379) (2,538) IPFL Holding S.A Reimbursement for expenses 2 1 Lazam MDS Corretora e Adm. Seguros S.A. Sale of paper — 4 Mabex Representações e Participações Ltda. Aircraft services (50) (100) Nemonorte Imóveis e Participações Ltda. Real estate advisory (99) (225) 43,246 59,910 40,787 56,625 |
Schedule of management compensation | June 30, June 30, 2020 2019 Short-term benefits Salary or compensation 22,866 19,010 Direct and indirect benefits 450 787 Bonus 3,250 5,781 26,566 25,578 Long-term benefits Share-based compensation plan 45,529 45,051 45,529 45,051 72,095 70,629 |
INCOME AND SOCIAL CONTRIBUTIO_2
INCOME AND SOCIAL CONTRIBUTION TAXES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INCOME AND SOCIAL CONTRIBUTION TAXES | |
Schedule of deferred income and social contribution taxes | June 30, December 31, 2020 2019 Tax loss carryforwards 772,460 600,249 Negative tax base 226,230 146,346 Provision for judicial liabilities 255,947 265,571 Operating provisions and other losses 908,399 914,696 Exchange rate variation (1) 7,418,386 2,001,942 Losses on derivatives (“MtM”) (1) 3,678,024 618,427 Fair value adjustment on business combination – Amortization 713,180 713,656 Unrealized profit on inventories 357,240 293,322 Lease 330,669 22,044 Assets temporary differences 14,660,535 5,576,253 Goodwill - Tax benefit on unamortized goodwill 351,107 216,857 Property, plant and equipment - deemed cost adjustment 1,487,102 1,506,220 Accelerated tax depreciation 1,068,735 1,113,200 Borrowing cost 118,071 104,549 Fair value of biological assets 123,668 53,502 Tax provision on results of subsidiaries abroad 585,516 463,850 Fair value adjustment on business combination – Deferred taxes, net 485,994 502,347 Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) 43,559 43,559 Other temporary differences 17,491 17,004 Liabilities temporary differences 4,281,243 4,021,088 Non-current assets 10,454,646 2,134,040 Non-current liabilities 75,354 578,875 |
Schedule of accumulated tax losses and social contribution tax loss carryforwards | June 30, December 31, 2020 2019 Tax loss carry forward 3,089,840 2,400,998 Social contribution tax loss carryforward 2,513,672 1,626,064 |
Schedule of rollforward of net balance of deferred income tax | June 30, December 31, 2020 2019 Beginning balance 1,555,165 (1,029,135) Business combination — 1,034,842 Tax loss 172,211 270,559 Tax loss carryforwards 79,884 139,719 (Reversal)/provision for judicial liabilities (9,624) 31,262 Operating provisions and other losses (6,297) (21,757) Exchange rate variation (1) 5,416,444 552,421 Derivative losses (“MtM”) (1) 3,059,597 319,860 Fair value adjustment on business combination – Amortization 15,879 699,527 Unrealized profit on inventories 63,918 65,492 Lease 308,625 (3,274) Tax benefit on unamortized goodwill (134,250) (203,696) Property, plant and equipment - Deemed cost 19,118 46,359 Accelerated depreciation 44,465 82,982 Borrowing cost (13,522) 44,727 Fair value of biological assets (70,166) (60,778) Tax provision on results of subsidiaries abroad (121,666) (351,485) Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) — (43,559) Other temporary differences (489) (18,901) Ending balance 10,379,292 1,555,165 1) |
Schedule of reconciliation of the effects of income tax and social contribution on profit or loss | June 30, June 30, 2020 2019 Loss before taxes (24,236,648) (789,205) Income tax and social contribution benefit (expense) at statutory nominal rate of 34% 8,240,460 268,330 Tax effect on permanent differences Taxation (difference) on profit of wholly-owned subsidiaries abroad (1) 746,640 21,301 Tax incentive - Reduction SUDENE (2) — 23,216 Equity method (1,004) (1,893) Thin capitalization (3) (252,808) (50,437) Credit related to Reintegra Program 3,367 2,988 Tax incentives applicable to income tax (4) 3,925 3,247 Director bonus (5,508) (42,682) Donations / Fines - Other 29,997 35,851 8,765,069 259,921 Income tax Current (57,006) (113,570) Deferred 6,486,044 299,726 6,429,038 186,156 Social Contribution Current (823) (78,008) Deferred 2,336,854 151,773 2,336,031 73,765 Income and social contribution benefits (expenses) on the period 8,765,069 259,921 Effective rate of income and social contribution tax expenses 36.16 % 32.93 % 1) 2) 3) 4) |
BIOLOGICAL ASSETS (Tables)
BIOLOGICAL ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
BIOLOGICAL ASSETS | |
Schedule of changes in balances of biological assets | Balances on December 31, 2018 4,935,905 Business combination 4,579,526 Addition 2,849,039 Depletion (1,905,118) Gain on fair value adjustment 185,399 Disposal (23,764) Other write-offs (49,488) Balances on December 31, 2019 10,571,499 Addition 1,401,424 Depletion (1,433,410) Transfers 678 Gain on fair value adjustment 173,733 Disposal (39,910) Other write-offs (1,290) Balances on June 30, 2020 10,672,724 For the six-month period ended June 30, 2020, the Company reassessed the main assumptions used in measuring the fair value of biological assets. The fair value of forests is determined by the income method (“income approach”) using the discounted cash flow model. The calculation of fair value of the biological assets falls under Level 3 in the hierarchy set forth in IFRS 13 — Measurement of Fair Value, due to the complexity and structure of calculation. The main assumptions, IMA, discount rate, and selling price stand out as being the most sensitive where increases or reductions in these assumptions generate significant gains or losses in the measurement of fair value. |
Schedule of main assumptions for calculation of fair value of biological assets | June 30, 2020 Planted useful area (hectare) 960,109 Mature assets 107,861 Immature assets 852,248 Average annual growth (IMA) - m3 /hectare /year 36.16 Average gross sale price of eucalyptus - R$/m3 66.86 Discount rate - % |
Summary of fair value adjustment of biological assets recognized under other operating income (expense), net | June 30, 2020 Physical changes 384,574 Price (210,841) 173,733 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INVESTMENTS | |
Schedule of investments by type | June 30, December 31, 2020 2019 Investments in associates and joint ventures 132,625 140,934 Goodwill 166,819 161,464 Other investments evaluated at fair value through other comprehensive income 25,976 20,048 325,420 322,446 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Machinery, equipment Work in Lands Buildings and facilities progress Other (1) Total Average rate % 3 5 10 to 20 Cost Balance as of December 31, 2018 5,104,717 3,058,520 16,441,031 466,156 332,089 25,402,513 Additions 337,932 1,943 136,855 1,477,420 47,524 2,001,674 Write-offs (92,705) (36,276) (172,458) (1,462) (34,858) (337,759) Business combination 2,151,338 3,918,552 20,255,811 425,868 454,759 27,206,328 Fair value adjustment - Fibria 2,637,671 1,502,021 5,109,939 195,684 9,445,315 Fair value adjustment – Facepa 3,072 (883) (111) 2,078 Fair value adjustment – Ibema 5,448 5,448 Transfer and other (2) 182,621 323,029 740,879 (1,397,398) (61,761) (212,630) Balance as of December 31, 2019 10,321,574 8,767,789 42,520,577 969,701 933,326 63,512,967 Additions 1,660 100,769 452,661 4,036 559,126 Write-offs (20,032) (1,427) (14,685) (5) (5,162) (41,311) Transfer and other (2) 36,733 391,322 232,284 (760,831) 68,949 (31,543) Balance as of June 30, 2020 10,338,275 9,159,344 42,838,945 661,526 1,001,149 63,999,239 Depreciation Balance as of December 31, 2018 — (906,616) (7,248,143) — (227,495) (8,382,254) Additions — (255,888) (2,123,193) — (91,170) (2,470,251) Write-offs — 26,886 115,732 — 13,944 156,562 Business combination — (1,804,967) (9,552,825) — (249,087) (11,606,879) Additions - Fair value adjustment from business combination - Fibria — (63,495) (543,468) — (17,364) (624,327) Fair value adjustment from business combination - Facepa — (5,742) (6,481) — (95) (12,318) Fair value adjustment from business combination - Ibema — (593) — (593) Transfer and other (2) — 29,906 508,585 — 9,547 548,038 Balance as of December 31, 2019 — (2,979,916) (18,850,386) — (561,720) (22,392,022) Additions (138,227) (1,191,572) (50,612) (1,380,411) Write-offs 549 9,774 5,067 15,390 Balance as of June 30, 2020 (3,117,594) (20,032,184) (607,265) (23,757,043) Book value Balance as of December 31, 2019 10,321,574 5,787,873 23,670,191 969,701 371,606 41,120,945 Balance as of June 30, 2020 10,338,275 6,041,750 22,806,761 661,526 393,884 40,242,196 |
INTANGIBLE (Tables)
INTANGIBLE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
INTANGIBLE | |
Schedule of goodwill and intangible assets with indefinite useful life | June 30, December 31, 2020 2019 Vale Florestar 45,435 45,435 FACEPA 119,332 119,332 Fibria 7,897,051 7,897,051 Other (1) 1,196 1,196 8,063,014 8,063,014 1) Refer to other intangible assets with indefinite useful life such as servitude and electricity. |
Schedule of intangible assets with determined useful life | June 30, December 31, 2020 2019 Beginning balance 9,649,789 180,311 Business combination 308,681 Additions 513 17,715 Fair value adjustment on business combination 702 Amortization (491,593) (74,332) Fair value adjustment on business combination 10,159,550 Port concession 54,470 Lease agreements 44,371 Supplier agreements 172,094 Port services agreements 694,590 Cultivars 142,744 Customer portfolio 9,030,779 Software 20,502 Fair value adjustment on business combination - Amortization (956,577) Port concession (2,147) Lease agreements (7,499) Supplier agreements (72,097) Port services agreements (29,362) Cultivars (20,392) Customer portfolio (820,980) Software (4,100) Fair value adjustment on business combination - Amortization (15,454) Exchange rate variation 2,930 Transfers and others 3,374 26,263 Ending balance 9,162,083 9,649,789 Average Represented by rate % Non-compete agreement 5 1,810 2,150 Research and development agreement 19 70,457 74,643 Ports concession 4 214,431 219,256 Lease agreements 17 33,122 36,871 Supplier agreements 13 to 100 92,590 99,997 Port service contracts 4 656,166 665,228 Cultivars 14 112,156 122,352 Development and implementation of systems 20 1,534 1,687 Trademarks and patents 5 to 10 17,368 20,649 Customer portfolio 2.5 to 9 7,801,989 8,217,192 Supplier agreements 5 46,406 51,562 Software 20 107,277 135,668 Others 6,777 2,534 9,162,083 9,649,789 |
TRADE ACCOUNTS PAYABLE (Tables)
TRADE ACCOUNTS PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
TRADE ACCOUNTS PAYABLE | |
Schedule of trade accounts payable | June 30, December 31, 2020 2019 In local currency Related party (note 11.1) (1) 1,448 2,478 Third party 1,588,280 1,288,774 In foreign currency Third party (2) 491,805 1,085,207 2,081,533 2,376,459 1) The consolidated balance refers to transactions with Ibema, in the domestic market, which are not eliminated in the consolidated as there is no control of the operations of these entities by the Company. 2) The Company had a take or pay agreement with Klabin S.A., under conditions differentiated in terms of volume, exclusivity, guarantees and payment terms in up to 360 days, and prices were practiced under conditions of contractually established. Following the requirements imposed by the European Union's competition authority, the contract with Klabin expired in July 2019. For the six-month period ended June 30, 2020, the amount of R$30,165 in the consolidated refers to purchases of Klabin's pulp. |
LOANS, FINANCING AND DEBENTUR_2
LOANS, FINANCING AND DEBENTURES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
LOANS, FINANCING AND DEBENTURES | |
Schedule of loans, financing and debentures by type | Average annual Current Non-current Total interest rate - June 30, December 31, June 30, December 31, June 30, December 31, Type Interest rate % 2020 2019 2020 2019 2020 2019 In foreign currency BNDES UMBNDES 5.93 32,941 26,307 27,165 27,620 60,106 53,927 Bonds (1) Fixed 5.71 806,695 640,177 36,114,088 27,375,673 36,920,783 28,015,850 Export credits (ACC - pre-payment) (1) LIBOR/Fixed 1.52 2,735,141 1,994,868 24,141,791 15,431,478 26,876,932 17,426,346 Others 6,445 3,481 6,445 3,481 3,581,222 2,664,833 60,283,044 42,834,771 63,864,266 45,499,604 In local currency BNDES TJLP 7.18 285,382 283,658 1,389,771 1,517,649 1,675,153 1,801,307 BNDES TLP 9.72 19,036 18,404 431,800 441,233 450,836 459,637 BNDES Fixed 5.06 33,272 39,325 62,313 77,333 95,585 116,658 BNDES SELIC 5.50 85,538 78,458 1,076,966 718,017 1,162,504 796,475 FINAME Fixed 6.43 4,276 4,781 7,917 9,564 12,193 14,345 BNB Fixed 6.73 35,300 37,815 139,361 156,904 174,661 194,719 CRA (“Agribusiness Receivables Certificates”) CDI/IPCA 5.53 1,379,045 2,860,938 2,971,744 2,952,451 4,350,789 5,813,389 NCE (Export credit note) CDI 5.73 65,940 131,914 1,273,045 1,270,065 1,338,985 1,401,979 Rural producer Certificate CDI 8.62 3,955 5,840 273,440 273,303 277,395 279,143 Export credits (“Pre payment”) Fixed 8.07 23,276 77,694 1,313,123 1,312,586 1,336,399 1,390,280 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP Fixed 7.99 72,413 76,596 441,912 475,905 514,325 552,501 Others (Revolving Cost, Working capital and Industrial Development Fund (“FDI”) and fair value adjustment on business combination Fixed 0.40 (52,342) (62,302) 4,470 4,559 (47,872) (57,743) Debentures CDI 6.27 9,810 9,997 5,413,548 5,412,035 5,423,358 5,422,032 1,964,901 3,563,118 14,799,410 14,621,604 16,764,311 18,184,722 5,546,123 6,227,951 75,082,454 57,456,375 80,628,577 63,684,326 Interest on financing 1,019,483 886,886 136,799 1,019,483 1,023,685 Non-current funding 4,526,640 5,341,065 75,082,454 57,319,576 79,609,094 62,660,641 5,546,123 6,227,951 75,082,454 57,456,375 80,628,577 63,684,326 1) The variation is due to the increase in the exchange rate in the six-month period ended June 30, 2020. |
Schedule of changes in loans, financing and debentures | June 30, December 31, 2020 2019 Beginning balance 63,684,326 35,737,509 Amounts from the business combination 20,667,096 Reclassification - accounts payable from lease operations (18,225) Fundraising 6,700,529 18,993,837 Interest accrued 1,736,775 3,362,250 Exchange rate variation, net 16,364,585 1,781,562 Settlement of principal (6,224,940) (13,994,708) Settlement of interest (1,682,413) (2,977,957) Amortization of fundraising costs 39,055 185,807 Other 10,660 (52,845) Ending balance 80,628,577 63,684,326 |
Schedule of non-current portion of loans, financing and debentures by maturity | 2021 2022 2023 2024 2025 2026 2027 onwards Total In foreign currency BNDES - Currency basket 2,264 13,583 11,318 27,165 Bonds 3,266,344 3,238,123 3,822,186 25,787,435 36,114,088 Export credits (ACC pre-payment) 92,600 2,536,851 10,058,960 7,536,819 3,425,584 490,977 24,141,791 94,864 2,550,434 10,070,278 10,803,163 6,663,707 4,313,163 25,787,435 60,283,044 In local currency BNDES – TJLP 136,711 268,806 268,026 239,884 292,572 169,102 14,670 1,389,771 BNDES – TLP 9,433 18,866 18,866 18,866 17,618 20,120 328,031 431,800 BNDES – Fixed 14,475 24,560 18,599 4,679 62,313 BNDES – Selic 48,712 94,876 118,336 110,275 234,525 197,061 273,181 1,076,966 FINAME 1,908 2,786 1,656 1,198 369 7,917 BNB 17,569 33,081 35,199 33,085 10,258 10,169 139,361 CRA (“Agribusiness Receivables Certificates”) 1,512,680 1,459,064 2,971,744 Export credit note 640,800 632,245 1,273,045 Rural producer certificate 137,500 135,940 273,440 Export credits (“Pre payment”) 1,313,123 1,313,123 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP 33,993 67,986 67,986 67,986 67,986 67,986 67,989 441,912 Others (Revolving costs, working capital, FIDC and FDI) 4,470 4,470 Debentures 2,340,550 2,325,659 747,339 5,413,548 267,271 2,023,641 1,987,732 1,789,096 3,742,178 3,558,282 1,431,210 14,799,410 362,135 4,574,075 12,058,010 12,592,259 10,405,885 7,871,445 27,218,645 75,082,454 |
Schedule of loans and financing by currency | June 30, December 31, 2020 2019 Brazilian Reais 16,751,206 18,170,261 U.S. Dollar 63,817,265 45,460,138 Currency basket 60,106 53,927 80,628,577 63,684,326 |
Schedule of fundraising costs and premiums of securities | The fundraising costs are amortized based on terms agreements and effective interest rate. Balance to be amortized June 30, December 31, Nature Cost Amortization 2020 2019 Bonds 343,642 95,226 248,416 201,467 CRA and NCE 125,222 85,955 39,267 47,443 Export credits (ACC pre-payment) 102,769 33,875 68,894 40,382 Debentures 24,467 6,915 17,552 19,065 BNDES (“IOF”) (1) 62,658 18,435 44,223 38,447 Others 18,147 13,934 4,213 4,590 676,905 254,340 422,565 351,394 1) Tax on Financial Operations |
LEASE (Tables)
LEASE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
LEASE | |
Schedule of right of use assets | Lands Machines Ships and and and Farms Equipment’s Buildings boats Vehicles Total Balance as of December 31, 2018 Initial adoption on January 1, 2019 1,762,943 143,685 41,570 1,408,640 1,012 3,357,850 Additions 260,982 1,529 39,794 612,022 914,327 Amortization (1) (254,280) (15,163) (35,365) (116,207) (925) (421,940) Balance as of December 31, 2019 1,769,645 130,051 45,999 1,904,455 87 3,850,237 Additions 337,323 2,153 26,716 194,907 63 561,162 Amortization (1) (119,220) (5,054) (10,521) (76,771) (29) (211,595) Balance as of June 30, 2020 1,987,748 127,150 62,194 2,022,591 121 4,199,804 1) The amount of R$118,286 (R$116,577 as of June 30, 2019) related to land is reclassified to biological assets to compose the formation cost. |
Schedule of present value of lease liabilities | Average rate - % Present value of Nature of agreement p.a. (1) Maturity (2) liabilities Lands and farms 11.45 January 2048 2,164,710 Machines and Equipment’s 10.62 July 2032 247,281 Buildings 9.80 November 2030 41,650 Ships and boats 11.39 February 2039 2,720,284 Vehicles 10.04 December 2021 47 5,173,972 1) To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements. 2) Refers to the original maturities of the agreements and, therefore, do not consider eventual renewal clause. |
Summary of changes in lease liabilities | Balance as of December 31, 2018 Initial adoption on January 1, 2019 3,428,897 Additions 914,327 Payments (646,487) Accrual of financial charges (1) 275,404 Exchange rate variation 11,929 Balance as of December 31, 2019 3,984,070 Additions 561,162 Payments (354,289) Accrual of financial charges (1) 240,528 Exchange rate variation 742,501 Balance as of June 30, 2020 5,173,972 Current 704,174 Non-current 4,469,798 1) The amount of R$37,040 related to interest expenses on leased lands is capitalized to biological assets to compose the formation cost (R$30,440 as of June 30, 2019). |
Schedule of expenses recognised in profit or loss | In the six-month period ended June 30, 2020 and 2019, the amounts recognized in the unaudited condensed consolidated interim financial information, are set for the below: June 30, June 30, 2020 2019 Expenses relating to short-term assets 2,531 26,570 Expenses relating to low-value assets 6,428 4,581 8,959 31,151 |
PROVISION FOR JUDICIAL LIABIL_2
PROVISION FOR JUDICIAL LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
PROVISION FOR JUDICIAL LIABILITIES | |
Schedule of provisions for probable losses according to lawsuit natures | June 30, 2020 Judicial deposits Provision Provision, net Taxes (130,502) 3,137,046 3,006,544 Labor (54,975) 234,300 179,325 Civil and environment (3,337) 258,919 255,582 (188,814) 3,630,265 3,441,451 December 31, 2019 Judicial deposits Provision Provision, net Taxes (124,133) 3,176,503 3,052,370 Labor (50,464) 227,139 176,675 Civil and environment 273 283,159 283,432 (174,324) 3,686,801 3,512,477 |
Schedule of changes in provisions for probable losses | June 30, 2020 Civil and Contingent Tax Labor environment liabilities (1) Total Beginning balance 492,413 227,139 64,897 2,902,352 3,686,801 Payments (22,706) (16,161) (13,826) (52,693) Write-off (25,331) (20,347) (18,807) (4,150) (68,635) Additions 5,362 30,920 5,951 42,233 Monetary adjustment 6,969 12,749 2,841 22,559 Ending balance 456,707 234,300 41,056 2,898,202 3,630,265 1) Amounts arising from lawsuits with probability of loss possible and remote, measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combination. December 31, 2019 Civil and Contingent Tax Labor environment liabilities (1) Total Beginning balance 296,869 50,869 3,532 351,270 Business combination 139,462 185,157 64,974 389,593 Payments (34) (34,794) (5,532) (40,360) Write-off (3,875) (55,730) (13,434) (73,039) Additions 46,603 50,521 10,100 2,902,352 3,009,576 Monetary adjustment 13,388 31,116 5,257 49,761 Ending balance 492,413 227,139 64,897 2,902,352 3,686,801 1) Amounts arising from lawsuits with probability of loss possible and remote, measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combination. |
Schedule of possible losses for which no provision has been recorded | June 30, December 31, 2020 2019 Taxes (1) 6,379,823 7,504,398 Labor 293,904 279,934 Civil and environment (1) 3,395,437 2,995,576 10,069,164 10,779,908 1) The amounts above does not include the fair value adjustment allocated to probable contingencies of R$2,865,364, which were recorded at fair value resulting from business combinations with Fibria, in accordance with paragraph 23 of IFRS 3 - Business Combination, as presented in note 20.1.1. above. |
SHARE-BASED COMPENSATION PLAN (
SHARE-BASED COMPENSATION PLAN (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SHARE-BASED COMPENSATION PLAN | |
Schedule of changes in phantom shares options | June 30, December 31, 2020 2019 Number of shares in the beginning balance 5,996,437 5,045,357 Granted during of the period 869,251 2,413,038 Exercised (1) (755,707) (827,065) Exercised due to resignation (1) (13,211) (106,983) Abandoned / prescribed due to resignation (123,457) (527,910) Number of shares in the ending balance 5,973,313 5,996,437 1) The average price for share options exercised and exercised due to termination of employment, for the six-month period ended June 30, 2020 was R$38.48 (thirty-eight Brazilian Reais and forty-eight cents) (R$31.75 (thirty-one Brazilian Reais and seventy-five cents) as of December 31, 2019). |
Summary of activity for common stock options | Deadline for the options to become Price on Shares Restricted year for Program Date of grant exercisable grant date Granted transfer of shares Program 4 01/02/2018 01/02/2019 R$ 39.10 130,435 01/02/2022 |
Schedule of amounts corresponding to services received and recognized | Liabilities and equity Income Statement June 30, December 31, June 30, June 30, 2020 2019 2020 2019 Non-current liabilities Provision for phantom stock plan 151,365 136,505 (49,143) (27,529) Shareholders' equity Stock option granted 7,459 5,979 (1,480) (2,638) Total general and administrative expenses from share-based transactions (50,623) (30,167) |
LIABILITIES FOR ASSETS ACQUIS_2
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | |
Schedule of liabilities for assets acquisitions | June 30, December 31, 2020 2019 Lands and forests acquisition Real estate receivables certificates (1) 76,286 78,345 76,286 78,345 Business combination Facepa (2) 42,952 42,533 Vale Florestar Fundo de Investimento em Participações ("VFFIP") (3) 538,897 420,737 581,849 463,270 658,135 541,615 Current liabilities 127,721 94,414 Non-current liabilities 530,414 447,201 1) Refers to obligations with the acquisition of land, farms, reforestation and houses built in Maranhão, restated by the IPCA. 2) Acquired in March 2018, for the amount of R$307,876, upon payment of R$267,876 and the remaining restated at the Amplified Consumer Price Index (“IPCA”), adjusted by any losses incurred through the payment date, with maturities in March 2023 and March 2028. 3) On August 2014, the Company acquired the Vale Florestar S.A. through VFFIP, for the total amount of R$528,941 with a upon payment of R$44,998 and remaining with maturity to August 2029. The monthly settlements are subject to interest and restated at the variation of the U.S. Dollar exchange rate and partially restated by variation of the IPCA. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SHAREHOLDERS' EQUITY | |
Schedule of share capital | Ordinary Quantity (%) Shareholder Controlling Shareholders Suzano Holding S.A. 367,612,329 27.01 Controller 194,809,797 14.31 Managements 35,564,742 2.61 Alden Fundo de Investimento em Ações 26,154,741 1.92 624,141,609 45.85 Treasury 12,042,004 0.88 BNDESPAR 150,217,425 11.04 Votorantim S.A. 75,180,059 5.52 Other shareholders 499,682,487 36.71 1,361,263,584 100.00 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of basic earnings (losses) per share | June 30, June 30, 2020 2019 Resulted of the period attributable for controlling shareholders' (15,479,631) (526,255) Weighted average number of shares in the period 1,361,264 1,361,264 Weighted average treasury shares (12,042) (12,042) Weighted average number of outstanding shares 1,349,222 1,349,222 Basic loss per common share - R$ (11.47301) (0.39004) |
Schedule of diluted earnings (losses) per share | June 30, June 30, 2020 2019 Resulted of the period attributed to controlling shareholders' (15,479,631) (526,255) Weighted average number of shares in the period (except treasury shares) 1,349,222 1,349,222 Weighted average number of shares (diluted) 1,349,222 1,349,222 Diluted loss per common share - R$ (11.47301) (0.39004) |
NET FINANCIAL RESULT (Tables)
NET FINANCIAL RESULT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
NET FINANCIAL RESULT | |
Schedule of net financial result | June 30, June 30, 2020 2019 Financial expenses Interest on loans, financing and debentures (1) (1,728,835) (1,674,698) Amortization of fundraising costs (41,268) (159,856) Amortization of fair value adjustment on business combination (10,660) 63,128 Other financial expenses (338,787) (307,570) (2,119,550) (2,078,996) Financial income Cash and cash equivalents and marketable securities 108,427 214,116 Amortization of fair value adjustment on business combination 47,619 37,412 Other financial income 47,127 47,401 203,173 298,929 Income from derivative financial instruments Income 990,989 1,052,879 Expenses (11,826,103) (1,432,386) (10,835,114) (379,507) Monetary and exchange rate variation, net Exchange rate variation on loans, financing and debentures (16,364,585) 421,010 Lease (742,501) (11,684) Other assets and liabilities (2) 1,757,291 (106,830) (15,349,795) 302,496 (28,101,286) (1,857,078) 1) Does not include the amount of R$7,940 arising from capitalized interest for the six-month period ended June 30, 2020 (R$1,505 as of June 30, 2019). 2) Includes effects of exchange rate variations of customers, suppliers, cash and cash equivalents, marketable securities and others. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
SEGMENT INFORMATION | |
Schedule of operating segments | June 30, 2020 Not Pulp Paper segmented Total Net sales 12,862,936 2,113,530 14,976,466 Domestic market (Brazil) 741,568 1,372,423 2,113,991 Foreign market 12,121,368 741,107 12,862,475 Cost of sales (8,246,527) (1,362,166) (9,608,693) Gross profit 4,616,409 751,364 5,367,773 Gross margin (%) 35.89 % 35.55 % 35.84 % Operating income (expenses) (1,179,960) (323,175) (1,503,135) Selling (875,343) (186,691) (1,062,034) General and administrative (460,226) (190,325) (650,551) Other operating, net 170,212 42,190 212,402 Income (loss) from associates and joint ventures (14,603) 11,651 (2,952) Operating profit before net financial income ("EBIT") (1) 3,436,449 428,189 3,864,638 Operating margin (%) 26.72 % 20.26 % 25.80 % Financial result, net (28,101,286) (28,101,286) Net income (loss) before taxes 3,436,449 428,189 (28,101,286) (24,236,648) Income taxes 8,765,069 8,765,069 Net income (loss) for the period 3,436,449 428,189 (19,336,217) (15,471,579) Profit (loss) margin for the period (%) 26.72 % 20.26 % (103.31) % Result of the period attributable to controlling Shareholders (19,344,269) (15,479,631) Result of the period attributed to non-controlling shareholders 8,052 8,052 Depreciation, depletion and amortization 3,126,528 231,053 3,357,581 1) Earnings before interest and tax. June 30, 2019 Not Pulp Paper segmented Total Net sales 2,308,324 12,364,081 Domestic market (Brazil) 984,098 1,591,902 2,576,000 Foreign market 9,071,659 716,422 9,788,081 Cost of sales (8,414,712) (1,532,300) (9,947,012) Gross profit 776,024 2,417,069 Gross margin (%) 16.3 % 33.6 % 19.5 % Operating income (expenses) (971,698) (377,498) (1,349,196) Selling (712,005) (186,279) (898,284) General and administrative (418,980) (189,816) (608,796) Other operating, net 159,287 (6,972) 152,315 Income from associates and joint ventures 5,569 5,569 Operating profit before net financial income ("EBIT") (1) 669,347 398,526 1,067,873 Operating margin (%) 6.7 % 17.3 % 8.6 % Financial result, net (1,857,078) (1,857,078) Net income (loss) before taxes 669,347 398,526 (1,857,078) (789,205) Income taxes 259,921 259,921 Net income (loss) for the period 669,347 398,526 (1,597,157) (529,284) Profit (loss) margin for the period (%) 6.7 % 17.3 % (4.3) % Result of the period attributable to controlling shareholders (1,594,128) (526,255) Result of the period attributed to non-controlling shareholders (3,029) (3,029) Depreciation, depletion and amortization 4,455,493 239,955 4,695,448 1) Earnings before interest and tax. |
Schedule of paper net sales by product | June 30, June 30, Products 2020 2019 Market pulp (1) 12,862,936 10,055,757 Printing and writing paper (2) 1,661,611 1,902,733 Paperboard 430,292 382,440 Other 21,627 23,151 Net sales 14,976,466 12,364,081 1) Revenue from fluff pulp represents (around 0.6% of total net sales) and, therefore, was included in market pulp sales. 2) Tissue is a recently launched product and its revenues represent less than 2.6% of total net sales. Therefore, it was included in the sales of printing and writing paper. |
Goodwill based on expected future profitability | June 30, December 31, 2020 2019 Pulp 7,942,486 7,942,486 Consumer goods 119,332 119,332 8,061,818 8,061,818 |
RESULTS BY NATURE (Tables)
RESULTS BY NATURE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
RESULTS BY NATURE | |
Schedule of results by nature | June 30, June 30, 2020 2019 Cost of sales (1) Personnel expenses (505,895) (724,815) Costs with raw materials, materials and services (4,059,893) (3,328,416) Logistics cost (2,025,824) (1,278,385) Depreciation, depletion and amortization (2) (2,843,700) (4,321,013) Operating expenses Covid-19 (3) (15,500) Other (157,881) (294,383) (9,608,693) (9,947,012) Selling expenses Personnel expenses (93,913) (100,942) Services (53,938) (41,602) Logistics cost (410,230) (273,414) Depreciation, depletion and amortization (460,597) (441,995) Other (4) (43,356) (40,331) (1,062,034) (898,284) General and Administrative expenses Personnel expenses (351,108) (351,784) Services (134,501) (138,370) Depreciation, depletion and amortization (43,814) (20,468) Social actions Covid-19 (48,024) Operating expenses Covid-19 (2) (10,729) Other (5) (62,375) (98,174) (650,551) (608,796) Other operating income (expenses) net Rents and leases 2,365 668 Result from sale of other products, net 24,886 12,895 Result from sale and disposal of property, plant and equipment and biological assets, net 9,343 (27,568) Result on fair value adjustment of biological assets 173,733 83,453 Insurance reimbursement 4,129 6,587 Provision for loss of judicial deposits (3,284) Amortization and depletion (9,470) (9,192) Sale of legal credits (Eletrobrás) 87,000 Result on disposal of investments (9,404) Other operating income (expenses), net 16,820 1,756 212,402 152,315 1) Includes the amount of R$149,087, related to idle capacity and maintenance downtime (there were no expenses as of June 30, 2019). 2) In the period ended June 30, 2019 includes amortization of the inventories step up, resulting from the business combination with Fibria, in the amount of R$2,178,903. 3) Includes, mainly, expenses in the manufacturing units for the refurbishment of cafeterias and workplaces, expansion of the frequency of conservation, cleaning, hygiene and maintenance of common areas, public transport with greater space between passengers, distribution of masks and realization rapid tests on employees working in factories. 4) Includes expected credit losses, insurance, materials of use and consumption, expenses with travel, accommodation, participation in trade fairs and events. 5) Includes corporate expenses, insurance, materials of use and consumption social projects and donations, expenses with travel and accommodation. |
COMPANY'S OPERATIONS - Equity i
COMPANY'S OPERATIONS - Equity interest (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Veracel Celulose S.A. | ||
Company Operations | ||
Proportion of ownership interest in joint venture | 50.00% | 50.00% |
Ibema Companhia Brasileira de Papel. | ||
Company Operations | ||
Proportion of ownership interest in joint venture | 49.90% | 49.90% |
Ensyn Corporation | ||
Company Operations | ||
Participation equity in associate (as a percent) | 25.30% | 25.30% |
F&E Tecnologies LLC | ||
Company Operations | ||
Participation equity in associate (as a percent) | 50.00% | 50.00% |
Spinnova Oy | ||
Company Operations | ||
Participation equity in associate (as a percent) | 24.06% | 24.06% |
CelluForce Inc. | ||
Company Operations | ||
Percentage of ownership in equity securities measured at FVOCI | 8.30% | 8.30% |
AGFA - Com. Adm. e Participacoes Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Asapir Producao Florestal e Comrcio Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Comercial e Agrcola Paineiras Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 99.99% | 99.99% |
Facepa - Fbrica de Papel da Amaznia S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 92.80% | 92.80% |
Fibria Celulose (USA) Inc. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Fibria Terminal de Celulose de Santos SPE S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Fibria Overseas Finance Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Fibria Terminais Portuarios S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene AgriDev Xinjiang Company Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene Biotechnology Shangai Company Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene Brasil Tecnologia Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene Delaware Inc. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene Hong Kong Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene Inc. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene Israel Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
FuturaGene Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
F&E Tecnologia do Brasil S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Gansu FuturaGene Biotech Co. Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Itacel - Terminal de Celulose de Itaqui S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Maxcel | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Mucuri Energetica S.A | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Ondurman Empreendimentos Imobiliarios Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Paineiras Logstica e Transporte Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Portocel - Terminal Espec. Barra do Riacho S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 51.00% | 51.00% |
Projetos Especiais e Investimentos Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Rio Verde Participacoes e Propriedades Rurais S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Stenfar S.A. Indl. Coml. Imp. Y. Exp. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano Austria GmbH | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano Canada Inc. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano International Trade GmbH | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano Participacoes do Brasil Ltda | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Suzano Pulp and Paper America Inc. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano Pulp and Paper Europe S.A | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano Shanghai Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Suzano Trading Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano Trading International KFT | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano Holding S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 45.85% |
COMPANY'S OPERATIONS - Effects
COMPANY'S OPERATIONS - Effects arising from COVID 19 (Details) - Covid 19 R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$)stateitem | |
Company Operations | |
Number of respirators acquired for donation | 159 |
Number of masks acquired for donation | 1,000,000 |
Disbursement for delivery of respirator | R$ | R$ 9584 |
Days for maintenance of 100% payroll | 90 days |
Number of communities supported | 38 |
Rural and Territorial Development Program | |
Company Operations | |
Number of States Covered | state | 5 |
Social Program | |
Company Operations | |
Number of masks acquired for donation | 125,000 |
Number of States Covered | state | 5 |
Disbursement for social actions | R$ | R$ 48024 |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Rating (Details) - Financial risks management - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Instruments and Risks Management | ||
Financial Assets | R$ 18067589 | R$ 14298291 |
Financial Liabilities | 100,777,655 | 74,082,444 |
Financial liabilities, net of financial assets | 82,710,066 | 59,784,153 |
Amortized cost | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 88,879,323 | 71,164,531 |
Amortized cost | Loans, financing and debentures | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 80,628,577 | 63,684,326 |
Amortized cost | Lease liabilities | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 5,173,972 | 3,984,070 |
Amortized cost | Liabilities for asset acquisition and subsidiaries | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 658,135 | 541,615 |
Amortized cost | Trade accounts payable | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 2,081,533 | 2,376,459 |
Amortized cost | Other liabilities | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 337,106 | 578,061 |
Fair value through profit or loss | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 11,898,332 | 2,917,913 |
Fair value through profit or loss | Derivative financial instruments | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 11,898,332 | 2,917,913 |
Amortized cost | ||
Financial Instruments and Risks Management | ||
Financial Assets | 14,749,680 | 6,848,937 |
Amortized cost | Cash and cash equivalents | ||
Financial Instruments and Risks Management | ||
Financial Assets | 10,473,701 | 3,249,127 |
Amortized cost | Trade accounts receivable | ||
Financial Instruments and Risks Management | ||
Financial Assets | 3,762,875 | 3,035,817 |
Amortized cost | Other assets | ||
Financial Instruments and Risks Management | ||
Financial Assets | 513,104 | 563,993 |
Fair value through other comprehensive income | ||
Financial Instruments and Risks Management | ||
Financial Assets | 25,976 | 20,048 |
Fair value through other comprehensive income | Other investments | ||
Financial Instruments and Risks Management | ||
Financial Assets | 25,976 | 20,048 |
Fair value through profit or loss | ||
Financial Instruments and Risks Management | ||
Financial Assets | 3,291,933 | 7,429,306 |
Fair value through profit or loss | Derivative financial instruments | ||
Financial Instruments and Risks Management | ||
Financial Assets | 1,078,437 | 1,098,972 |
Fair value through profit or loss | Marketable securities | ||
Financial Instruments and Risks Management | ||
Financial Assets | R$ 2213496 | R$ 6330334 |
FINANCIAL INSTRUMENTS AND RIS_4
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Fair Value of Loans and Financing (Details) - Discount rate - Loans, financing and debentures - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Financial Instruments and Risks Management | ||
Financial Liabilities, Fair Value | R$ 82899282 | R$ 66707543 |
Foreign | Bonds | Fixed | ||
Financial Instruments and Risks Management | ||
Yield used to discount | Secondary Market | Secondary Market |
Financial Liabilities, Fair Value | R$ 38795348 | R$ 30066087 |
Foreign | Export credits ("Pre payment") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | LIBOR | LIBOR |
Financial Liabilities, Fair Value | R$ 26123478 | R$ 17213963 |
Foreign | Export credits (ACC/ACE) | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 799183 | R$ 575521 |
Domestic | BNP - Forest Financing | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 177376 | R$ 193646 |
Domestic | BNDES | TJLP | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 1759652 | R$ 1895959 |
Domestic | BNDES | TLP | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 523828 | R$ 535812 |
Domestic | BNDES | Fixed | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 95259 | R$ 113979 |
Domestic | BNDES | Selic | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 938208 | R$ 693969 |
Domestic | BNDES | Currency basket | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 61488 | R$ 54420 |
Domestic | CRA ("Agribusiness Receivables Certificates") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 4583620 | R$ 6039983 |
Domestic | Debentures | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 5416351 | R$ 5534691 |
Domestic | FINAME ("Special Agency of Industrial Financing") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 11816 | R$ 14168 |
Domestic | FINEP ("Financier of Studies and Projects") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 1287 | R$ 5138 |
Domestic | NCE ("Export Credit Notes") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 1354814 | R$ 1445383 |
Domestic | NCR ("Rural Credit Notes") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 280876 | R$ 288122 |
Domestic | Export credits ("Pre payment") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 1435407 | R$ 1464798 |
Domestic | FDCO ("West Center Development Fund") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 541291 | R$ 571904 |
FINANCIAL INSTRUMENTS AND RIS_5
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Liquidity Risk (Details) R$ in Thousands | Mar. 30, 2020USD ($) | Mar. 30, 2020BRL (R$) | Jun. 30, 2020BRL (R$) | Feb. 28, 2020USD ($) | Feb. 14, 2020USD ($) | Feb. 14, 2020BRL (R$) | Dec. 31, 2019BRL (R$) |
Revolving credit facility | LIBOR | |||||||
Financial Instruments and Risks Management | |||||||
Repayments of borrowings/ Settlement amount | $ 500,000 | R$ 2638221 | |||||
Interest rate adjustment | 1.30% | 1.30% | |||||
Suzano Pulp and Paper Europe S.A | Export prepayment ("PPE") | LIBOR | |||||||
Financial Instruments and Risks Management | |||||||
Principle amount | $ 750,000 | R$ 3240229 | |||||
Interest rate adjustment | 1.15% | 1.15% | |||||
Suzano Pulp and Paper Europe S.A., Suzano Austria GmbH and Fibria Overseas Finance Ltd | Export prepayment ("PPE") | LIBOR | |||||||
Financial Instruments and Risks Management | |||||||
Principle amount | $ 850,000 | R$ 3672259 | |||||
Interest rate adjustment | 1.15% | 1.15% | |||||
Suzano Trading Ltd. | Make-whole Senior Notes | LIBOR | |||||||
Financial Instruments and Risks Management | |||||||
Principle amount | $ | $ 189,630 | ||||||
Interest rate | 5.875% | ||||||
Liquidity risk | |||||||
Financial Instruments and Risks Management | |||||||
Financial Liabilities, Book Value | R$ 100777655 | R$ 74082444 | |||||
Financial liabilities, Future Value | 141,532,481 | 108,690,925 | |||||
Liquidity risk | Not later than one year | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 15,609,741 | 13,485,638 | |||||
Liquidity risk | Later than one year and not later than two years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 7,771,535 | 7,756,823 | |||||
Liquidity risk | Later than two years and not later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 53,060,464 | 31,848,867 | |||||
Liquidity risk | Later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 65,090,741 | 55,599,597 | |||||
Liquidity risk | Trade accounts payable | |||||||
Financial Instruments and Risks Management | |||||||
Financial Liabilities, Book Value | 2,081,533 | 2,376,459 | |||||
Financial liabilities, Future Value | 2,081,533 | 2,376,459 | |||||
Liquidity risk | Trade accounts payable | Not later than one year | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 2,081,533 | 2,376,459 | |||||
Liquidity risk | Loans, financing and debentures | |||||||
Financial Instruments and Risks Management | |||||||
Financial Liabilities, Book Value | 80,628,577 | 63,684,326 | |||||
Financial liabilities, Future Value | 110,480,401 | 89,708,210 | |||||
Liquidity risk | Loans, financing and debentures | Not later than one year | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 7,742,122 | 8,501,278 | |||||
Liquidity risk | Loans, financing and debentures | Later than one year and not later than two years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 4,575,792 | 5,692,149 | |||||
Liquidity risk | Loans, financing and debentures | Later than two years and not later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 45,904,453 | 29,088,292 | |||||
Liquidity risk | Loans, financing and debentures | Later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 52,258,034 | 46,426,491 | |||||
Liquidity risk | Lease liabilities | |||||||
Financial Instruments and Risks Management | |||||||
Financial Liabilities, Book Value | 5,173,972 | 3,984,070 | |||||
Financial liabilities, Future Value | 9,733,128 | 7,109,966 | |||||
Liquidity risk | Lease liabilities | Not later than one year | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 842,789 | 559,525 | |||||
Liquidity risk | Lease liabilities | Later than one year and not later than two years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 1,566,704 | 1,426,011 | |||||
Liquidity risk | Lease liabilities | Later than two years and not later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 2,064,169 | 1,186,386 | |||||
Liquidity risk | Lease liabilities | Later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 5,259,466 | 3,938,044 | |||||
Liquidity risk | Liabilities for asset acquisition and subsidiaries | |||||||
Financial Instruments and Risks Management | |||||||
Financial Liabilities, Book Value | 658,135 | 541,615 | |||||
Financial liabilities, Future Value | 744,790 | 618,910 | |||||
Liquidity risk | Liabilities for asset acquisition and subsidiaries | Not later than one year | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 134,005 | 103,132 | |||||
Liquidity risk | Liabilities for asset acquisition and subsidiaries | Later than one year and not later than two years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 129,699 | 101,149 | |||||
Liquidity risk | Liabilities for asset acquisition and subsidiaries | Later than two years and not later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 365,836 | 315,989 | |||||
Liquidity risk | Liabilities for asset acquisition and subsidiaries | Later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 115,250 | 98,640 | |||||
Liquidity risk | Derivative financial instruments | |||||||
Financial Instruments and Risks Management | |||||||
Financial Liabilities, Book Value | 11,898,332 | 2,917,913 | |||||
Financial liabilities, Future Value | 18,155,523 | 8,299,319 | |||||
Liquidity risk | Derivative financial instruments | Not later than one year | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 4,556,320 | 1,488,906 | |||||
Liquidity risk | Derivative financial instruments | Later than one year and not later than two years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 1,415,206 | 415,791 | |||||
Liquidity risk | Derivative financial instruments | Later than two years and not later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 4,726,006 | 1,258,200 | |||||
Liquidity risk | Derivative financial instruments | Later than five years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 7,457,991 | 5,136,422 | |||||
Liquidity risk | Other liabilities | |||||||
Financial Instruments and Risks Management | |||||||
Financial Liabilities, Book Value | 337,106 | 578,061 | |||||
Financial liabilities, Future Value | 337,106 | 578,061 | |||||
Liquidity risk | Other liabilities | Not later than one year | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | 252,972 | 456,338 | |||||
Liquidity risk | Other liabilities | Later than one year and not later than two years | |||||||
Financial Instruments and Risks Management | |||||||
Financial liabilities, Future Value | R$ 84134 | R$ 121723 |
FINANCIAL INSTRUMENTS AND RIS_6
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Exchange Rate Risk Management (Details) - Currency Risk - USD - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | R$ 13029199 | R$ 13994993 |
Financial liabilities | (75,196,278) | (58,149,396) |
Net liability exposure | (62,167,079) | (44,154,403) |
Trade accounts payable | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (491,805) | (1,085,207) |
Loans and financing | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (63,817,265) | (45,460,138) |
Liabilities for asset acquisition and subsidiaries | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (401,273) | (288,172) |
Derivative financial instruments | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (10,485,935) | (11,315,879) |
Cash and cash equivalents | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | 9,895,463 | 2,527,834 |
Trade accounts receivable | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | 2,891,501 | 2,027,018 |
Derivative financial instruments | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | R$ 242235 | R$ 9440141 |
FINANCIAL INSTRUMENTS AND RIS_7
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Exchange Risk Sensitivity Analysis (Details) | 6 Months Ended | |
Jun. 30, 2020BRL (R$) | Dec. 31, 2019 | |
Probable | ||
Financial Instruments and Risks Management | ||
Closing foreign exchange rate | 5.4416 | |
Possible (25%) | ||
Financial Instruments and Risks Management | ||
Closing foreign exchange rate | 6.802 | |
Remote (50%) | ||
Financial Instruments and Risks Management | ||
Closing foreign exchange rate | 8.1624 | |
Possible (-25%) | ||
Financial Instruments and Risks Management | ||
Closing foreign exchange rate | 4.0812 | |
Remote (-50%) | ||
Financial Instruments and Risks Management | ||
Closing foreign exchange rate | 2.7208 | |
Currency Risk | ||
Financial Instruments and Risks Management | ||
Closing foreign exchange rate | 5.4760 | |
Currency Risk | Cash and cash equivalents | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | R$ 9895463000 | |
Currency Risk | Cash and cash equivalents | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 2,473,866,000 | |
Currency Risk | Cash and cash equivalents | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 4,947,732,000 | |
Currency Risk | Trade accounts receivable | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 2,891,501,000 | |
Currency Risk | Trade accounts receivable | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 722,875,000 | |
Currency Risk | Trade accounts receivable | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 1,445,751,000 | |
Currency Risk | Trade accounts payable | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (491,805,000) | |
Currency Risk | Trade accounts payable | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (122,951,000) | |
Currency Risk | Trade accounts payable | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (245,903,000) | |
Currency Risk | Loans and financing | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (63,817,265,000) | |
Currency Risk | Loans and financing | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (15,954,316,000) | |
Currency Risk | Loans and financing | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (31,908,633,000) | |
Currency Risk | Liabilities for asset acquisition and subsidiaries | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (401,273,000) | |
Currency Risk | Liabilities for asset acquisition and subsidiaries | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (100,318,000) | |
Currency Risk | Liabilities for asset acquisition and subsidiaries | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (200,637,000) | |
Currency Risk | Derivative Options | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (2,955,980,000) | |
Currency Risk | Derivative Options | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (4,195,471,000) | |
Currency Risk | Derivative Options | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (8,658,160,000) | |
Currency Risk | Derivative Options | Possible (-25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to a decrease in measurement input | 3,740,215,000 | |
Currency Risk | Derivative Options | Remote (-50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to a decrease in measurement input | 7,973,398,000 | |
Currency Risk | Derivatives Non Deliverable Forward ("NDF") | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (29,511,000) | |
Currency Risk | Derivatives Non Deliverable Forward ("NDF") | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (33,907,000) | |
Currency Risk | Derivatives Non Deliverable Forward ("NDF") | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (67,814,000) | |
Currency Risk | Derivatives Non Deliverable Forward ("NDF") | Possible (-25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to a decrease in measurement input | 33,908,000 | |
Currency Risk | Derivatives Non Deliverable Forward ("NDF") | Remote (-50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to a decrease in measurement input | R$ 67815000 | |
Currency Risk | Mark to Market Derivatives | ||
Financial Instruments and Risks Management | ||
Closing foreign exchange rate | 5.4416 | 4.0307 |
Percentage increase in foreign exchange rate | 35.00% | |
Maximum percentage exposure in U.S. Dollars | 75.00% | |
Currency Risk | Derivative Swap | Probable | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | R$ 8526926000 | |
Currency Risk | Derivative Swap | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (5,279,964,000) | |
Currency Risk | Derivative Swap | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (10,559,931,000) | |
Currency Risk | Derivative Swap | Possible (-25%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to a decrease in measurement input | 5,279,972,000 | |
Currency Risk | Derivative Swap | Remote (-50%) | ||
Financial Instruments and Risks Management | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to a decrease in measurement input | R$ 10559940000 |
FINANCIAL INSTRUMENTS AND RIS_8
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Interest Rate Risk Sensitivity Analysis (Details) R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$) | |
Derivative Options | CDI | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | R$ 2955980 |
Derivative Options | CDI | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (46,186) |
Derivative Options | CDI | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (91,962) |
Derivative Options | CDI | Possible (-25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | 46,622 |
Derivative Options | CDI | Remote (-50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | 93,698 |
Derivatives Non Deliverable Forward ("NDF") | CDI | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (29,511) |
Derivatives Non Deliverable Forward ("NDF") | CDI | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (97) |
Derivatives Non Deliverable Forward ("NDF") | CDI | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (195) |
Derivatives Non Deliverable Forward ("NDF") | CDI | Possible (-25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | 99 |
Derivatives Non Deliverable Forward ("NDF") | CDI | Remote (-50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | 198 |
Derivative Swap | CDI | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (8,526,926) |
Derivative Swap | CDI | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (27,243) |
Derivative Swap | CDI | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (53,863) |
Derivative Swap | CDI | Possible (-25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | 27,830 |
Derivative Swap | CDI | Remote (-50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | 56,172 |
Derivative Swap | LIBOR | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (8,526,926) |
Derivative Swap | LIBOR | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 50,308 |
Derivative Swap | LIBOR | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 100,602 |
Derivative Swap | LIBOR | Possible (-25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | (50,308) |
Derivative Swap | LIBOR | Remote (-50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an decrease in measurement input | (100,630) |
Interest rate risk | Cash and cash equivalents | CDI | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 358,900 |
Interest rate risk | Cash and cash equivalents | CDI | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 1,929 |
Interest rate risk | Cash and cash equivalents | CDI | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 3,858 |
Interest rate risk | Marketable securities | CDI | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 2,213,496 |
Interest rate risk | Marketable securities | CDI | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 11,898 |
Interest rate risk | Marketable securities | CDI | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 23,795 |
Interest rate risk | Loans and financing | CDI | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 9,919,194 |
Interest rate risk | Loans and financing | CDI | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 53,316 |
Interest rate risk | Loans and financing | CDI | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 106,631 |
Interest rate risk | Loans and financing | TJLP | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 1,700,469 |
Interest rate risk | Loans and financing | TJLP | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 21,001 |
Interest rate risk | Loans and financing | TJLP | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 42,002 |
Interest rate risk | Loans and financing | LIBOR | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 25,131,914 |
Interest rate risk | Loans and financing | LIBOR | Possible (25%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 18,975 |
Interest rate risk | Loans and financing | LIBOR | Remote (50%) | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | R$ 37949 |
FINANCIAL INSTRUMENTS AND RIS_9
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Price Risk Sensitivity Analysis (Details) - Commodity price risk - BRL (R$) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Embedded Derivative | Probable | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | R$ 522073000 | |
Embedded Derivative | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | (117,134,000) | |
Embedded Derivative | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | (238,426,000) | |
Oil derivative | Probable | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | (76,702,000) | |
Oil derivative | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | 168,646,000 | |
Oil derivative | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | 260,591,000 | |
Oil derivative | Bunker oil | ||
Financial Instruments and Risks Management | ||
Risk exposure | R$ 87486000 | R$ 364 |
FINANCIAL INSTRUMENTS AND RI_10
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Derivatives outstanding by type of contract (Details) R$ in Thousands, $ in Thousands | Jun. 30, 2020USD ($) | Jun. 30, 2020BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) |
Financial Instruments and Risks | ||||
Fair value | R$ 10819895 | R$ 1818941 | ||
Operational Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (2,979,804) | 67,078 | ||
Operational Hedge | Zero cost collar (U.S.$ x R$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | $ 3,365,500 | $ 3,425,000 | ||
Fair value | (2,948,115) | 67,078 | ||
Operational Hedge | NDF (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 25,000 | |||
Fair value | (29,511) | |||
Operational Hedge | NDF (US$ x ARS) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 5,500 | |||
Fair value | (2,178) | |||
Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (8,285,547) | (2,154,474) | ||
Debt hedge | Interest hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 3,683,333 | 2,750,000 | ||
Fair value | (1,273,250) | (444,910) | ||
Debt hedge | Interest hedge | Swap IPCA x CDI | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 843,845 | 843,845 | ||
Fair value | 251,599 | 233,255 | ||
Debt hedge | Interest hedge | Swap IPCA x U.S.$ | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 121,003 | 121,003 | ||
Fair value | (172,557) | 30,544 | ||
Debt hedge | Interest hedge | Swap CDI x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 2,676,617 | 3,115,614 | ||
Fair value | (6,454,249) | (1,940,352) | ||
Debt hedge | Interest hedge | Pre-fixed Swap to U.S.$ (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 350,000 | 350,000 | ||
Fair value | (637,090) | (33,011) | ||
Commodity hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 445,456 | 268,455 | ||
Commodity hedge | Swap US-CPI (standing wood) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 657,207 | 679,485 | ||
Fair value | 522,073 | 268,547 | ||
Commodity hedge | Swap Bunker (oil) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | $ 87,486 | $ 365 | ||
Fair value | R$ 76617 | R$ 92 |
FINANCIAL INSTRUMENTS AND RI_11
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Derivatives outstanding by type of contract, classified (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Current assets | R$ 152978 | R$ 260273 |
Non-current assets | 925,459 | 838,699 |
Current liabilities | (4,529,091) | (893,413) |
Non-current liabilities | (7,369,241) | (2,024,500) |
Total, net | R$ 10819895 | R$ 1818941 |
FINANCIAL INSTRUMENTS AND RI_12
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Derivative Fair value by maturity schedule (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 10819895 | R$ 1818941 |
Not later than one year | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (2,715,171) | |
Later than one year and not later than two years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (2,184,320) | (633,644) |
Later than two years and not later than three years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (1,148,302) | 98,850 |
Later than three years and not later than four years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (563,163) | (154,734) |
Later than four years and not later than five years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (801,662) | 185,209 |
Later than five years and not later than six years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (1,845,634) | (197,718) |
Later than six years and not later than seven years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (606,827) | |
later than six years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 1561643 | |
Later than seven years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 510077 |
FINANCIAL INSTRUMENTS AND RI_13
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Outstanding of assets and liabilities derivatives positions (Details) R$ in Thousands, $ in Thousands | Jun. 30, 2020USD ($) | Jun. 30, 2020BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) |
Financial Instruments and Risks | ||||
Fair value | R$ 10819895 | R$ 1818941 | ||
Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (8,285,547) | (2,154,474) | ||
Operational Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (2,979,804) | 67,078 | ||
Operational Hedge | Zero cost collar (U.S.$ x R$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | $ 3,365,500 | $ 3,425,000 | ||
Fair value | (2,948,115) | 67,078 | ||
Operational Hedge | NDF (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 25,000 | |||
Fair value | (29,511) | |||
Operational Hedge | NDF (US$ x ARS) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 5,500 | |||
Fair value | (2,178) | |||
Commodity hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 445,456 | 268,455 | ||
Commodity hedge | Swap US-CPI (standing wood) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 657,207 | 679,485 | ||
Fair value | 522,073 | 268,547 | ||
Commodity hedge | Swap Bunker (oil) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 87,486 | 365 | ||
Fair value | (76,617) | (92) | ||
Assets | Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 436,940 | 25,887,797 | ||
Assets | Debt hedge | Swap CDI x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | 9,963,450 | 11,498,565 | ||
Fair value | 511 | 11,673,117 | ||
Assets | Debt hedge | Swap Pre-Fixed to U.S.$ (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 1,317,226 | 1,317,226 | ||
Fair value | 122,341 | 1,478,336 | ||
Assets | Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 3,683,333 | 2,750,000 | ||
Fair value | 62,489 | 11,063,970 | ||
Assets | Debt hedge | Swap IPCA x CDI | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 943,055 | 933,842 | ||
Fair value | 251,599 | 1,093,067 | ||
Assets | Debt hedge | Swap IPCA x U.S.$ | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 504,368 | 499,441 | ||
Fair value | 579,307 | |||
Liabilities | Swap IPCA x CDI | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 843,845 | 843,845 | ||
Fair value | (859,812) | |||
Liabilities | Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (8,722,487) | (28,042,271) | ||
Liabilities | Debt hedge | Swap CDI x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 2,676,617 | 3,115,614 | ||
Fair value | (6,454,760) | (13,613,469) | ||
Liabilities | Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 350,000 | 350,000 | ||
Fair value | (759,431) | (1,511,347) | ||
Liabilities | Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 3,683,333 | 2,750,000 | ||
Fair value | (1,335,739) | (11,508,880) | ||
Liabilities | Debt hedge | Swap IPCA x U.S.$ | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | $ 121,003 | $ 121,003 | ||
Fair value | R$ 172557 | R$ 548763 |
FINANCIAL INSTRUMENTS AND RI_14
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Fair value settled amounts (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Financial Instruments and Risks | ||
Cash (paid) received | R$ 1834250 | R$ 135449 |
Operational Hedge | ||
Financial Instruments and Risks | ||
Cash (paid) received | (993,295) | (40,469) |
Operational Hedge | Zero cost collar (U.S.$ x R$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | (962,595) | (104,040) |
Operational Hedge | NDF (R$ x US$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | (30,700) | 63,571 |
Commodity hedge | ||
Financial Instruments and Risks | ||
Cash (paid) received | (36,805) | 3,804 |
Commodity hedge | Swap Bunker (oil) | ||
Financial Instruments and Risks | ||
Cash (paid) received | (36,805) | 3,804 |
Debt hedge | ||
Financial Instruments and Risks | ||
Cash (paid) received | (804,150) | (98,784) |
Debt hedge | Swap CDI x Fixed (U.S.$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | (369,601) | (68,362) |
Debt hedge | Swap IPCA x CDI | ||
Financial Instruments and Risks | ||
Cash (paid) received | (441,056) | 23,024 |
Debt hedge | Swap IPCA x U.S.$ | ||
Financial Instruments and Risks | ||
Cash (paid) received | 10,054 | |
Debt hedge | Swap Pre-Fixed to U.S.$ (U.S.$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | 59,351 | (26,358) |
Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | R$ 62898 | R$ 27088 |
FINANCIAL INSTRUMENTS AND RI_15
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Fair value hierarchy (Details) - Fair value - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Instruments and Risks | ||
Financial assets | R$ 13990633 | R$ 18020853 |
Financial liabilities | 11,898,332 | 2,917,913 |
Level 1 | ||
Financial Instruments and Risks | ||
Financial assets | 825,972 | 1,631,319 |
Level 2 | ||
Financial Instruments and Risks | ||
Financial assets | 2,465,961 | 5,797,987 |
Financial liabilities | 11,898,332 | 2,917,913 |
Level 3 | ||
Financial Instruments and Risks | ||
Financial assets | 10,698,700 | 10,591,547 |
Fair value through profit or loss | ||
Financial Instruments and Risks | ||
Financial liabilities | 11,898,332 | 2,917,913 |
Fair value through profit or loss | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial liabilities | 11,898,332 | 2,917,913 |
Fair value through profit or loss | Level 2 | ||
Financial Instruments and Risks | ||
Financial liabilities | 11,898,332 | 2,917,913 |
Fair value through profit or loss | Level 2 | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial liabilities | 11,898,332 | 2,917,913 |
Fair value through profit or loss | ||
Financial Instruments and Risks | ||
Financial assets | 3,291,933 | 7,429,306 |
Fair value through profit or loss | Marketable securities | ||
Financial Instruments and Risks | ||
Financial assets | 2,213,496 | 6,330,334 |
Fair value through profit or loss | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial assets | 1,078,437 | 1,098,972 |
Fair value through profit or loss | Level 1 | ||
Financial Instruments and Risks | ||
Financial assets | 825,972 | 1,631,319 |
Fair value through profit or loss | Level 1 | Marketable securities | ||
Financial Instruments and Risks | ||
Financial assets | 825,972 | 1,631,319 |
Fair value through profit or loss | Level 2 | ||
Financial Instruments and Risks | ||
Financial assets | 2,465,961 | 5,797,987 |
Fair value through profit or loss | Level 2 | Marketable securities | ||
Financial Instruments and Risks | ||
Financial assets | 1,387,524 | 4,699,015 |
Fair value through profit or loss | Level 2 | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial assets | 1,078,437 | 1,098,972 |
Fair value through other comprehensive income | ||
Financial Instruments and Risks | ||
Financial assets | 25,976 | 20,048 |
Fair value through other comprehensive income | Other investments | ||
Financial Instruments and Risks | ||
Financial assets | 25,976 | 20,048 |
Fair value through other comprehensive income | Level 3 | ||
Financial Instruments and Risks | ||
Financial assets | 25,976 | 20,048 |
Fair value through other comprehensive income | Level 3 | Other investments | ||
Financial Instruments and Risks | ||
Financial assets | 25,976 | 20,048 |
Amortized cost | ||
Financial Instruments and Risks | ||
Financial assets | 10,672,724 | 10,571,499 |
Amortized cost | Fair value of biological assets | ||
Financial Instruments and Risks | ||
Financial assets | 10,672,724 | 10,571,499 |
Amortized cost | Level 3 | ||
Financial Instruments and Risks | ||
Financial assets | 10,672,724 | 10,571,499 |
Amortized cost | Level 3 | Fair value of biological assets | ||
Financial Instruments and Risks | ||
Financial assets | R$ 10672724 | R$ 10571499 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents | ||||
Cash and banks | R$ 6070196 | R$ 2464097 | ||
Cash equivalents | ||||
Total cash and cash equivalents | R$ 10473701 | 3,249,127 | R$ 4104641 | R$ 4387453 |
Fixed | Cash and banks | ||||
Cash equivalents | ||||
Average yield | 0.40% | |||
Domestic | ||||
Cash equivalents | ||||
Fixed-term deposits | R$ 358900 | 630,075 | ||
Domestic | CDI | Fixed-term deposits | ||||
Cash equivalents | ||||
Percentage of basis used to calculate interest rate | 75.34% | |||
Foreign | ||||
Cash equivalents | ||||
Fixed-term deposits | R$ 4044605 | R$ 154955 | ||
Foreign | Fixed | Fixed-term deposits | ||||
Cash equivalents | ||||
Average yield | 0.76% |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Financial Investments | ||
Marketable securities | R$ 2213496 | R$ 6330334 |
Current | 2,030,560 | 6,150,631 |
Non Current | 182,936 | 179,703 |
Investment funds | ||
Financial Investments | ||
Marketable securities | R$ 6587 | 6,683 |
Investment funds | CDI | ||
Financial Investments | ||
Percentage of basis used to calculate interest rate | 25.61% | |
Private Funds | ||
Financial Investments | ||
Marketable securities | R$ 12668 | 1,431,303 |
Private Funds | CDI | ||
Financial Investments | ||
Percentage of basis used to calculate interest rate | 93.31% | |
Public Titles Measured At Fair Value Through Profit or Loss | ||
Financial Investments | ||
Marketable securities | R$ 825972 | 1,631,319 |
Public Titles Measured At Fair Value Through Profit or Loss | CDI | ||
Financial Investments | ||
Percentage of basis used to calculate interest rate | 93.31% | |
Private Securities (Compromised) | ||
Financial Investments | ||
Marketable securities | R$ 1185333 | 3,081,326 |
Private Securities (Compromised) | CDI | ||
Financial Investments | ||
Percentage of basis used to calculate interest rate | 100.00% | |
Private Securities (Compromised) - Escrow Account | ||
Financial Investments | ||
Marketable securities | R$ 182936 | R$ 179703 |
Private Securities (Compromised) - Escrow Account | CDI | ||
Financial Investments | ||
Percentage of basis used to calculate interest rate | 102.00% |
TRADE ACCOUNTS RECEIVABLE - Sum
TRADE ACCOUNTS RECEIVABLE - Summary of balances (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 3762875 | R$ 3035817 |
Factoring of receivables | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 4,968,024 | 3,544,625 |
Gross | Domestic | Third parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 888,372 | 1,027,034 |
Gross | Domestic | Related parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 35,394 | 23,761 |
Gross | Foreign | Third parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 2,891,501 | 2,027,018 |
Expected credit losses | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 52392 | R$ 41996 |
TRADE ACCOUNTS RECEIVABLE - Tra
TRADE ACCOUNTS RECEIVABLE - Trade accounts receivable by maturity (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 3762875 | R$ 3035817 |
Neither past due nor impaired | Current | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 3,236,279 | 2,552,459 |
Past due but not impaired | Up to 30 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 324,675 | 180,909 |
Past due but not impaired | From 31 to 60 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 72,830 | 148,388 |
Past due but not impaired | From 61 to 90 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 23,836 | 20,448 |
Past due but not impaired | From 91 to 120 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 15,518 | 20,680 |
Past due but not impaired | From 121 to 180 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 10,844 | 17,899 |
Past due but not impaired | More than 180 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 78893 | R$ 95034 |
TRADE ACCOUNTS RECEIVABLE - Cha
TRADE ACCOUNTS RECEIVABLE - Changes in expected credit losses (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Changes in allowance for doubtful accounts | ||
Beginning balance | R$ 41996 | R$ 37179 |
Business combination | (5,947) | |
Addition | (10,250) | (18,650) |
Reversal | 187 | 6,364 |
Write-off | 2,117 | 13,383 |
Exchange rate variation | (2,450) | 33 |
Ending balance | R$ 52392 | R$ 41996 |
TRADE ACCOUNTS RECEIVABLE - Mai
TRADE ACCOUNTS RECEIVABLE - Main customers (Details) - Net Sales - Pulp - customer | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
TRADE ACCOUNTS RECEIVABLE | ||
Number of customers | 1 | 1 |
Concentration risk percentage | 9.60% | 10.00% |
INVENTORIES - Summary of balanc
INVENTORIES - Summary of balances (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Work in process | R$ 98037 | R$ 75377 |
Raw materials | 1,300,430 | 1,047,433 |
Spare Parts and other | 477,772 | 488,410 |
Inventories | 4,206,778 | 4,685,595 |
Pulp | Domestic | ||
Inventories | ||
Finished goods | 430,958 | 575,335 |
Pulp | Foreign | ||
Inventories | ||
Finished goods | 1,407,928 | 2,229,206 |
Paper | Domestic | ||
Inventories | ||
Finished goods | 372,952 | 199,635 |
Paper | Foreign | ||
Inventories | ||
Finished goods | R$ 118701 | R$ 70199 |
INVENTORIES - Changes in provis
INVENTORIES - Changes in provision for losses (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Changes in provision for losses | ||
Balance at the beginning of the period | R$ 106713 | R$ 33195 |
Business combination | (11,117) | |
Addition | (33,653) | (111,077) |
Reversal | 1,033 | 9,734 |
Write-off | 71,351 | 38,942 |
Balance at the end of the period | (67,982) | (106,713) |
Raw materials, estimated losses | 27,326 | 57,384 |
Finished product, write-off of inventory | 31,088 | 666 |
Raw materials, write-off of inventory | 32,600 | 26,083 |
Inventories pledged as security for liabilities | R$ 0 | R$ 0 |
RECOVERABLE TAXES (Details)
RECOVERABLE TAXES (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
RECOVERABLE TAXES | |||
IRPJ/CSLL - prepayments and withheld taxes | R$ 562835 | R$ 575351 | |
PIS and COFINS - on acquisition of property, plant and equipment | 133,182 | 61,376 | |
PIS and COFINS - operations | 303,636 | 507,919 | |
PIS/COFINS - exclusion ICMS | 128,115 | 128,115 | |
ICMS - on acquisition of property, plant and equipment | 109,045 | 115,560 | |
ICMS - operations | 1,500,659 | 1,515,840 | |
Reintegra Program | 119,580 | 108,657 | |
Other taxes and contributions | 22,680 | 18,758 | |
Provision for loss of ICMS credits | (1,279,208) | (1,304,329) | R$ 10792 |
Provision for loss of PIS/COFINS credits | 0 | (21,132) | R$ 0 |
Recoverable taxes | 1,600,524 | 1,706,115 | |
Current assets | 888,245 | 997,201 | |
Non-current assets | R$ 712279 | R$ 708914 |
RECOVERABLE TAXES - Rollforward
RECOVERABLE TAXES - Rollforward of provision for loss (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
ICMS | ||
Beginning balance | R$ 1304329 | R$ 10792 |
Business combination with Fibria | (1,211,109) | |
Addition | (48,151) | (82,428) |
Write-off | (73,272) | |
Ending balance | (1,279,208) | (1,304,329) |
PIS and COFINS | ||
Beginning balance | (21,132) | 0 |
Addition | (21,132) | |
Write-off | 21,132 | |
Ending balance | 0 | (21,132) |
Total | ||
Beginning balance | (1,325,461) | (10,792) |
Business combination with Fibria | (1,211,109) | |
Addition | (48,151) | (103,560) |
Write-off | 94,404 | |
Ending balance | R$ 1279208 | R$ 1325461 |
ADVANCE TO SUPPLIERS (Details)
ADVANCE TO SUPPLIERS (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Advances to suppliers | ||
Advances to suppliers | R$ 1256468 | R$ 1257630 |
Current | 106,636 | 170,481 |
Non current | 1,149,832 | 1,087,149 |
Forestry Development Program | ||
Advances to suppliers | ||
Advances to suppliers | 1,149,832 | 1,087,149 |
Advance to suppliers | ||
Advances to suppliers | ||
Advances to suppliers | R$ 106636 | R$ 170481 |
RELATED PARTIES - Balances reco
RELATED PARTIES - Balances recognized in assets and liabilities (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
RELATED PARTIES | ||
Balances receivable (payable) | R$ 33946 | R$ 21283 |
Trade accounts receivable | ||
RELATED PARTIES | ||
Balances receivable (payable) | 35,394 | 23,761 |
Trade accounts payable | ||
RELATED PARTIES | ||
Balances receivable (payable) | (1,448) | (2,478) |
Controlling Shareholders | ||
RELATED PARTIES | ||
Balances receivable (payable) | 5 | 3 |
Suzano Holding S.A. | ||
RELATED PARTIES | ||
Balances receivable (payable) | 5 | 3 |
Transactions with companies of the Suzano Group and other related parties | ||
RELATED PARTIES | ||
Balances receivable (payable) | 33,941 | 21,280 |
Bexma Participacoes Ltda. | Reimbursement for expenses | ||
RELATED PARTIES | ||
Balances receivable (payable) | 2 | 1 |
Bizma Investimentos Ltda. | Social services | ||
RELATED PARTIES | ||
Balances receivable (payable) | 1 | 1 |
Ensyn Technologies | Reimbursement for expenses | ||
RELATED PARTIES | ||
Balances receivable (payable) | 2,004 | |
Instituto Ecofuturo - Futuro Para o Desenvolvimento Sustentavel | Social services | ||
RELATED PARTIES | ||
Balances receivable (payable) | (9) | |
Ibema Companhia Brasileira de Papel | Sale of pulp | ||
RELATED PARTIES | ||
Balances receivable (payable) | 33,382 | 23,755 |
Ibema Companhia Brasileira de Papel | Purchase of products | ||
RELATED PARTIES | ||
Balances receivable (payable) | R$ 1448 | (2,467) |
Management | Reimbursement for expenses | ||
RELATED PARTIES | ||
Balances receivable (payable) | R$ 1 |
RELATED PARTIES - Amounts trans
RELATED PARTIES - Amounts transacted in the period (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
RELATED PARTIES | ||
Expenses (income) | R$ 40787 | R$ 56625 |
Controlling Shareholders | ||
RELATED PARTIES | ||
Expenses (income) | (2,459) | (3,285) |
Suzano Holding S.A. | ||
RELATED PARTIES | ||
Expenses (income) | (2,459) | (3,285) |
Transactions with companies of the Suzano Group and other related parties | ||
RELATED PARTIES | ||
Expenses (income) | 43,246 | 59,910 |
Management | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | (831) | (595) |
Bexma Participacoes Ltda. | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | 7 | 3 |
Bizma Investimentos Ltda. | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | 7 | 6 |
Fundacao Arymax | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | 1 | |
Ibema Companhia Brasileira de Papel | Purchase of products | ||
RELATED PARTIES | ||
Expenses (income) | (2,241) | (3,415) |
Ibema Companhia Brasileira de Papel | Sale of paper | ||
RELATED PARTIES | ||
Expenses (income) | 48,829 | 66,769 |
Instituto Ecofuturo - Futuro Para o Desenvolvimento Sustentavel | Social services | ||
RELATED PARTIES | ||
Expenses (income) | (2,379) | (2,538) |
IPFL Holding S.A | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | 2 | 1 |
Lazam MDS Corretora e Adm. Seguros S.A. | Sale of paper | ||
RELATED PARTIES | ||
Expenses (income) | 4 | |
Mabex Representacoes e Participacoes Ltda. | Aircraft services (freight) | ||
RELATED PARTIES | ||
Expenses (income) | (50) | (100) |
Nemonorte Imoveis e Participacoes Ltda. | Real estate advisory | ||
RELATED PARTIES | ||
Expenses (income) | R$ 99 | R$ 225 |
RELATED PARTIES - Management co
RELATED PARTIES - Management compensation (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Short-term benefits | ||
Salary or compensation | R$ 22866 | R$ 19010 |
Direct and indirect benefits | 450 | 787 |
Bonus | 3,250 | 5,781 |
Total short term benefits | 26,566 | 25,578 |
Long-term benefits | ||
Share-based compensation plan | 45,529 | 45,051 |
Total long term benefits | 45,529 | 45,051 |
Total management compensation | R$ 72095 | R$ 70629 |
INCOME AND SOCIAL CONTRIBUTIO_3
INCOME AND SOCIAL CONTRIBUTION TAXES - Deferred income and social contribution taxes (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred income and social contribution taxes | ||
Non-current assets | R$ 14660535 | R$ 5576253 |
Non-current liabilities | 4,281,243 | 4,021,088 |
Total non-current assets, net | 10,454,646 | 2,134,040 |
Total non-current liabilities, net | 75,354 | 578,875 |
Tax loss carryforwards | ||
Deferred income and social contribution taxes | ||
Non-current assets | 772,460 | 600,249 |
Negative tax base | ||
Deferred income and social contribution taxes | ||
Non-current assets | 226,230 | 146,346 |
Provision for judicial liabilities | ||
Deferred income and social contribution taxes | ||
Non-current assets | 255,947 | 265,571 |
Operating provisions and other losses | ||
Deferred income and social contribution taxes | ||
Non-current assets | 908,399 | 914,696 |
Exchange rate variation | ||
Deferred income and social contribution taxes | ||
Non-current assets | 7,418,386 | 2,001,942 |
Losses on derivatives | ||
Deferred income and social contribution taxes | ||
Non-current assets | 3,678,024 | 618,427 |
Fair value adjustment on business combination - Amortization | ||
Deferred income and social contribution taxes | ||
Non-current assets | 713,180 | 713,656 |
Unrealized profit on inventories | ||
Deferred income and social contribution taxes | ||
Non-current assets | 357,240 | 293,322 |
Lease liabilities | ||
Deferred income and social contribution taxes | ||
Non-current assets | 330,669 | 22,044 |
Goodwill - Tax benefit on unamortized goodwill | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 351,107 | 216,857 |
Property, plant and equipment - deemed cost adjustment | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 1,487,102 | 1,506,220 |
Accelerated tax depreciation | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 1,068,735 | 1,113,200 |
Borrowing cost | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 118,071 | 104,549 |
Fair value of biological assets | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 123,668 | 53,502 |
Tax provision on results of subsidiaries abroad | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 585,516 | 463,850 |
Fair value adjustment on business combination with Fibria - Deferred taxes, net | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 485,994 | 502,347 |
Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 43,559 | 43,559 |
Other temporary differences | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | R$ 17491 | R$ 17004 |
INCOME AND SOCIAL CONTRIBUTIO_4
INCOME AND SOCIAL CONTRIBUTION TAXES - Carryforwards (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
INCOME AND SOCIAL CONTRIBUTION TAXES | ||
Tax loss carryforward | R$ 3089840 | R$ 2400998 |
Social contribution tax loss carryforward | R$ 2513672 | R$ 1626064 |
INCOME AND SOCIAL CONTRIBUTIO_5
INCOME AND SOCIAL CONTRIBUTION TAXES - Rollforward (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Rollforward of net balance of deferred income tax | ||
Beginning balance | R$ 1555165 | R$ 1029135 |
Business combination with Fibria | 1,034,842 | |
Tax loss | 172,211 | 270,559 |
Tax loss carryforwards | 79,884 | 139,719 |
(Reversal)/provision for judicial liabilities | (9,624) | 31,262 |
Operating provisions and other losses | (6,297) | (21,757) |
Exchange rate variation | 5,416,444 | 552,421 |
Derivative losses | 3,059,597 | 319,860 |
Fair value adjustment on business combination - Amortization | 15,879 | 699,527 |
Unrealized profit on inventories | 63,918 | 65,492 |
Lease | 308,625 | (3,274) |
Tax benefit on unamortized goodwill | (134,250) | (203,696) |
Property, plant and equipment - Deemed cost | 19,118 | 46,359 |
Accelerated depreciation | 44,465 | 82,982 |
Borrowing cost | (13,522) | 44,727 |
Fair value of biological assets | (70,166) | (60,778) |
Tax provision on results of subsidiaries abroad | (121,666) | (351,485) |
Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) | (43,559) | |
Other temporary differences | (489) | (18,901) |
Ending balance | R$ 10379292 | R$ 1555165 |
INCOME AND SOCIAL CONTRIBUTIO_6
INCOME AND SOCIAL CONTRIBUTION TAXES - Reconciliation of effects of income tax and social contribution on profit or loss (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of the effects of income tax and social contribution on profit or loss | ||
Loss before taxes | R$ 24236648 | R$ 789205 |
Income tax and social contribution benefit (expense) at statutory nominal rate of 34% | R$ 8240460 | R$ 268330 |
Tax rate | 34.00% | 34.00% |
Tax effect on permanent differences | ||
Taxation (difference) on profit of wholly-owned subsidiaries abroad | R$ 746640 | R$ 21301 |
Tax incentive - Reduction SUDENE | 23,216 | |
Equity method | (1,004) | (1,893) |
Thin capitalisation | (252,808) | (50,437) |
Credit related to Reintegrate Program | 3,367 | 2,988 |
Tax incentives applicable to income tax | 3,925 | 3,247 |
Director bonus | (5,508) | (42,682) |
Donations / Fines - Other | 29,997 | 35,851 |
Income and social contribution benefits (expenses) on the period | 8,765,069 | 259,921 |
Income tax | ||
Current | (57,006) | (113,570) |
Deferred | 6,486,044 | 299,726 |
Total income Tax | 6,429,038 | 186,156 |
Social Contribution | ||
Current | (823) | (78,008) |
Deferred | 2,336,854 | 151,773 |
Total Social Contribution | 2,336,031 | 73,765 |
Income and social contribution benefits (expenses) on the period | R$ 8765069 | R$ 259921 |
Effective rate of income and social contribution tax expenses | 36.16% | 32.93% |
BIOLOGICAL ASSETS - Changes (De
BIOLOGICAL ASSETS - Changes (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Changes in balances of biological assets | |||
Balance, beginning of the year | R$ 10571499 | R$ 4935905 | R$ 4935905 |
Business combination | 4,579,526 | ||
Additions | 1,401,424 | 2,849,039 | |
Depletion | (1,433,410) | (1,905,118) | |
Transfers | 678 | ||
Gain on fair value adjustment | 173,733 | R$ 83453 | 185,399 |
Disposal | (39,910) | (23,764) | |
Other write-offs | (1,290) | (49,488) | |
Balance, end of the year | R$ 10672724 | R$ 10571499 | |
Effective area of forest from the year of planting | 3 years | ||
Minimum | |||
Changes in balances of biological assets | |||
Average cycle of forest formation | 6 years | ||
Maximum | |||
Changes in balances of biological assets | |||
Average cycle of forest formation | 7 years |
BIOLOGICAL ASSETS - Assumptions
BIOLOGICAL ASSETS - Assumptions (Details) | 6 Months Ended |
Jun. 30, 2020haR$ / m³m / ha | |
Assumptions used | |
Planted useful area (hectare) | 960,109 |
Average annual growth (IMA) - m3 /hectare /year | m / ha | 36.16 |
Average gross sale price of eucalyptus - R$/m3 | R$ / m³ | 66.86 |
Discount rate - % | 8.60% |
Mature assets | |
Assumptions used | |
Planted useful area (hectare) | 107,861 |
Immature assets | |
Assumptions used | |
Planted useful area (hectare) | 852,248 |
BIOLOGICAL ASSETS - Fair value
BIOLOGICAL ASSETS - Fair value adjustment (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair value adjustment of biological assets recognized under other operating income (expense), net | |||
Physical changes | R$ 384574 | ||
Price | (210,841) | ||
Fair value adjustment of biological assets recognized under other operating income (expense), net | 173,733 | R$ 83453 | R$ 185399 |
Biological assets pledged | R$ 0 |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investments (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
INVESTMENTS | ||
Investments in associates and joint ventures | R$ 132625 | R$ 140934 |
Goodwill | 166,819 | 161,464 |
Other investments evaluated at fair value through other comprehensive income | 25,976 | 20,048 |
Total investments accounted for using equity method | R$ 325420 | R$ 322446 |
INVESTMENTS - Investments in as
INVESTMENTS - Investments in associates and joint ventures (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Investments | ||
Company Participation in equity | R$ 132625 | R$ 140934 |
Company Participation in the income of the period | (2,952) | 5,569 |
Associates | ||
Investments | ||
Company Participation in equity | 86,997 | 108,406 |
Company Participation in the income of the period | R$ 16052 | (541) |
Ensyn Corporation | ||
Investments | ||
Participation equity in associate (as a percent) | 25.30% | |
Company Participation in equity | R$ 2995 | 21,437 |
Company Participation in the income of the period | R$ 13086 | |
Spinnova Oy | ||
Investments | ||
Participation equity in associate (as a percent) | 24.06% | |
Company Participation in equity | R$ 84002 | 86,969 |
Company Participation in the income of the period | (2,966) | (541) |
Joint ventures | ||
Investments | ||
Company Participation in equity | 45,628 | 32,528 |
Company Participation in the income of the period | 13,100 | 6,110 |
Ibema Companhia Brasileira de Papel | ||
Investments | ||
Company Participation in equity | 40,139 | 28,487 |
Company Participation in the income of the period | 11,651 | 6,175 |
F&E Technologies LLC | ||
Investments | ||
Company Participation in equity | 5,489 | 4,041 |
Company Participation in the income of the period | R$ 1449 | R$ 65 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment | |||
Balance, beginning of year | R$ 41120945 | ||
Balance, end of year | 40,242,196 | R$ 41120945 | |
Property, plant and equipment pledged as collateral | 21,419,039 | 24,985,741 | |
Capitalized interest amount | R$ 7940 | R$ 1032 | |
Average monthly rate of interest capitalization | 9.21% | 9.08% | |
Gross | |||
Property, Plant and Equipment | |||
Balance, beginning of year | R$ 63512967 | R$ 25402513 | 25,402,513 |
Additions | 559,126 | 2,001,674 | |
Write-offs | (41,311) | (337,759) | |
Business combination | 27,206,328 | ||
Transfer and other | (31,543) | (212,630) | |
Balance, end of year | 63,999,239 | 63,512,967 | |
Gross | Fibria | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 9,445,315 | ||
Gross | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 2,078 | ||
Gross | Ibema Companhia Brasileira de Papel | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 5,448 | ||
Accumulated Depreciation and Amortization | |||
Property, Plant and Equipment | |||
Balance, beginning of year | (22,392,022) | (8,382,254) | (8,382,254) |
Additions | (1,380,411) | (2,470,251) | |
Write-offs | 15,390 | 156,562 | |
Transfer and other | 548,038 | ||
Balance, end of year | (23,757,043) | (22,392,022) | |
Accumulated Depreciation and Amortization | Fibria | |||
Property, Plant and Equipment | |||
Business combination | (11,606,879) | ||
Fair value adjustment from business combination | (624,327) | ||
Accumulated Depreciation and Amortization | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | (12,318) | ||
Accumulated Depreciation and Amortization | Ibema Companhia Brasileira de Papel | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | (593) | ||
Lands | |||
Property, Plant and Equipment | |||
Balance, beginning of year | 10,321,574 | ||
Balance, end of year | 10,338,275 | 10,321,574 | |
Lands | Gross | |||
Property, Plant and Equipment | |||
Balance, beginning of year | 10,321,574 | 5,104,717 | 5,104,717 |
Additions | 337,932 | ||
Write-offs | (20,032) | (92,705) | |
Business combination | 2,151,338 | ||
Transfer and other | 36,733 | 182,621 | |
Balance, end of year | R$ 10338275 | 10,321,574 | |
Lands | Gross | Fibria | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 2,637,671 | ||
Buildings | |||
Property, Plant and Equipment | |||
Average rate % | 3.00% | ||
Property, Plant and Equipment | |||
Balance, beginning of year | R$ 5787873 | ||
Balance, end of year | 6,041,750 | 5,787,873 | |
Buildings | Gross | |||
Property, Plant and Equipment | |||
Balance, beginning of year | 8,767,789 | 3,058,520 | 3,058,520 |
Additions | 1,660 | 1,943 | |
Write-offs | (1,427) | (36,276) | |
Business combination | 3,918,552 | ||
Transfer and other | 391,322 | 323,029 | |
Balance, end of year | 9,159,344 | 8,767,789 | |
Buildings | Gross | Fibria | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 1,502,021 | ||
Buildings | Accumulated Depreciation and Amortization | |||
Property, Plant and Equipment | |||
Balance, beginning of year | (2,979,916) | (906,616) | (906,616) |
Additions | (138,227) | (255,888) | |
Write-offs | 549 | 26,886 | |
Transfer and other | 29,906 | ||
Balance, end of year | R$ 3117594 | (2,979,916) | |
Buildings | Accumulated Depreciation and Amortization | Fibria | |||
Property, Plant and Equipment | |||
Business combination | (1,804,967) | ||
Fair value adjustment from business combination | (63,495) | ||
Buildings | Accumulated Depreciation and Amortization | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | (5,742) | ||
Machinery and equipment and facilities | |||
Property, Plant and Equipment | |||
Average rate % | 5.00% | ||
Property, Plant and Equipment | |||
Balance, beginning of year | R$ 23670191 | ||
Balance, end of year | 22,806,761 | 23,670,191 | |
Machinery and equipment and facilities | Gross | |||
Property, Plant and Equipment | |||
Balance, beginning of year | 42,520,577 | 16,441,031 | 16,441,031 |
Additions | 100,769 | 136,855 | |
Write-offs | (14,685) | (172,458) | |
Business combination | 20,255,811 | ||
Transfer and other | 232,284 | 740,879 | |
Balance, end of year | 42,838,945 | 42,520,577 | |
Machinery and equipment and facilities | Gross | Fibria | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 5,109,939 | ||
Machinery and equipment and facilities | Gross | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 3,072 | ||
Machinery and equipment and facilities | Gross | Ibema Companhia Brasileira de Papel | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 5,448 | ||
Machinery and equipment and facilities | Accumulated Depreciation and Amortization | |||
Property, Plant and Equipment | |||
Balance, beginning of year | (18,850,386) | (7,248,143) | (7,248,143) |
Additions | (1,191,572) | (2,123,193) | |
Write-offs | 9,774 | 115,732 | |
Transfer and other | 508,585 | ||
Balance, end of year | (20,032,184) | (18,850,386) | |
Machinery and equipment and facilities | Accumulated Depreciation and Amortization | Fibria | |||
Property, Plant and Equipment | |||
Business combination | (9,552,825) | ||
Fair value adjustment from business combination | (543,468) | ||
Machinery and equipment and facilities | Accumulated Depreciation and Amortization | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | (6,481) | ||
Machinery and equipment and facilities | Accumulated Depreciation and Amortization | Ibema Companhia Brasileira de Papel | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | (593) | ||
Work in progress | |||
Property, Plant and Equipment | |||
Balance, beginning of year | 969,701 | ||
Balance, end of year | 661,526 | 969,701 | |
Work in progress | Gross | |||
Property, Plant and Equipment | |||
Balance, beginning of year | 969,701 | 466,156 | 466,156 |
Additions | 452,661 | 1,477,420 | |
Write-offs | (5) | (1,462) | |
Business combination | 425,868 | ||
Transfer and other | (760,831) | (1,397,398) | |
Balance, end of year | 661,526 | 969,701 | |
Work in progress | Gross | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | (883) | ||
Other | |||
Property, Plant and Equipment | |||
Balance, beginning of year | 371,606 | ||
Balance, end of year | R$ 393884 | 371,606 | |
Other | Minimum | |||
Property, Plant and Equipment | |||
Average rate % | 10.00% | ||
Other | Maximum | |||
Property, Plant and Equipment | |||
Average rate % | 20.00% | ||
Other | Gross | |||
Property, Plant and Equipment | |||
Balance, beginning of year | R$ 933326 | 332,089 | 332,089 |
Additions | 4,036 | 47,524 | |
Write-offs | (5,162) | (34,858) | |
Business combination | 454,759 | ||
Transfer and other | 68,949 | (61,761) | |
Balance, end of year | 1,001,149 | 933,326 | |
Other | Gross | Fibria | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | 195,684 | ||
Other | Gross | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | (111) | ||
Other | Accumulated Depreciation and Amortization | |||
Property, Plant and Equipment | |||
Balance, beginning of year | (561,720) | R$ 227495 | (227,495) |
Additions | (50,612) | (91,170) | |
Write-offs | 5,067 | 13,944 | |
Transfer and other | 9,547 | ||
Balance, end of year | R$ 607265 | (561,720) | |
Other | Accumulated Depreciation and Amortization | Fibria | |||
Property, Plant and Equipment | |||
Business combination | (249,087) | ||
Fair value adjustment from business combination | (17,364) | ||
Other | Accumulated Depreciation and Amortization | Facepa | |||
Property, Plant and Equipment | |||
Fair value adjustment from business combination | R$ 95 |
INTANGIBLE - Goodwill and intan
INTANGIBLE - Goodwill and intangible assets with indefinite useful life (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | R$ 8063014 | R$ 8063014 |
Vale Florestar S.A. | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 45,435 | 45,435 |
Facepa | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 119,332 | 119,332 |
Fibria | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 7,897,051 | 7,897,051 |
Other | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | R$ 1196 | R$ 1196 |
INTANGIBLE - Changes in intangi
INTANGIBLE - Changes in intangible assets with determined useful life (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Intangible assets with determined useful life | ||
Balance at the beginning of the year | R$ 9649789 | R$ 180311 |
Business combination | 308,681 | |
Additions | 513 | 17,715 |
Fair value adjustment on business combination | 702 | |
Amortization | (491,593) | (74,332) |
Exchange rate variation | 2,930 | |
Transfers and others | 3,374 | 26,263 |
Balance at the end of the year | R$ 9162083 | 9,649,789 |
Non-compete agreement | ||
Intangible assets with determined useful life | ||
Averate rate % | 5.00% | |
Balance at the beginning of the year | R$ 2150 | |
Balance at the end of the year | R$ 1810 | 2,150 |
Research and development agreement | ||
Intangible assets with determined useful life | ||
Averate rate % | 19.00% | |
Balance at the beginning of the year | R$ 74643 | |
Balance at the end of the year | R$ 70457 | 74,643 |
Port concession | ||
Intangible assets with determined useful life | ||
Averate rate % | 4.00% | |
Balance at the beginning of the year | R$ 219256 | |
Balance at the end of the year | R$ 214431 | 219,256 |
Lease agreements | ||
Intangible assets with determined useful life | ||
Averate rate % | 17.00% | |
Balance at the beginning of the year | R$ 36871 | |
Balance at the end of the year | 33,122 | 36,871 |
Supplier agreements, 13% to 100% | ||
Intangible assets with determined useful life | ||
Balance at the beginning of the year | 99,997 | |
Balance at the end of the year | R$ 92590 | 99,997 |
Supplier agreements, 13% to 100% | Minimum | ||
Intangible assets with determined useful life | ||
Averate rate % | 13.00% | |
Supplier agreements, 13% to 100% | Maximum | ||
Intangible assets with determined useful life | ||
Averate rate % | 100.00% | |
Port services agreements | ||
Intangible assets with determined useful life | ||
Averate rate % | 4.00% | |
Balance at the beginning of the year | R$ 665228 | |
Balance at the end of the year | R$ 656166 | 665,228 |
Cultivars | ||
Intangible assets with determined useful life | ||
Averate rate % | 14.00% | |
Balance at the beginning of the year | R$ 122352 | |
Balance at the end of the year | R$ 112156 | 122,352 |
Development and implementation of systems | ||
Intangible assets with determined useful life | ||
Averate rate % | 20.00% | |
Balance at the beginning of the year | R$ 1687 | |
Balance at the end of the year | 1,534 | 1,687 |
Trademarks and patents | ||
Intangible assets with determined useful life | ||
Balance at the beginning of the year | 20,649 | |
Balance at the end of the year | R$ 17368 | 20,649 |
Trademarks and patents | Minimum | ||
Intangible assets with determined useful life | ||
Averate rate % | 5.00% | |
Trademarks and patents | Maximum | ||
Intangible assets with determined useful life | ||
Averate rate % | 10.00% | |
Supplier agreements, 5% | ||
Intangible assets with determined useful life | ||
Averate rate % | 5.00% | |
Balance at the beginning of the year | R$ 51562 | |
Balance at the end of the year | 46,406 | 51,562 |
Customer portfolio | ||
Intangible assets with determined useful life | ||
Balance at the beginning of the year | 8,217,192 | |
Balance at the end of the year | R$ 7801989 | 8,217,192 |
Customer portfolio | Minimum | ||
Intangible assets with determined useful life | ||
Averate rate % | 2.50% | |
Customer portfolio | Maximum | ||
Intangible assets with determined useful life | ||
Averate rate % | 9.00% | |
Software | ||
Intangible assets with determined useful life | ||
Averate rate % | 20.00% | |
Balance at the beginning of the year | R$ 135668 | |
Balance at the end of the year | 107,277 | 135,668 |
Others | ||
Intangible assets with determined useful life | ||
Balance at the beginning of the year | 2,534 | |
Balance at the end of the year | R$ 6777 | 2,534 |
Gross | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | (10,159,550) | |
Gross | Port concession | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 54,470 | |
Gross | Lease agreements | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 44,371 | |
Gross | Supplier agreements | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 172,094 | |
Gross | Port services agreements | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 694,590 | |
Gross | Cultivars | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 142,744 | |
Gross | Customer portfolio | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 9,030,779 | |
Gross | Software | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 20,502 | |
Accumulated Depreciation and Amortization | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | (15,454) | |
Accumulated Depreciation and Amortization | Port concession | ||
Intangible assets with determined useful life | ||
Business combination | (2,147) | |
Accumulated Depreciation and Amortization | Lease agreements | ||
Intangible assets with determined useful life | ||
Business combination | (7,499) | |
Accumulated Depreciation and Amortization | Supplier agreements | ||
Intangible assets with determined useful life | ||
Business combination | (72,097) | |
Accumulated Depreciation and Amortization | Port services agreements | ||
Intangible assets with determined useful life | ||
Business combination | (29,362) | |
Accumulated Depreciation and Amortization | Cultivars | ||
Intangible assets with determined useful life | ||
Business combination | (20,392) | |
Accumulated Depreciation and Amortization | Customer portfolio | ||
Intangible assets with determined useful life | ||
Business combination | (820,980) | |
Accumulated Depreciation and Amortization | Software | ||
Intangible assets with determined useful life | ||
Business combination | (4,100) | |
Accumulated Depreciation and Amortization | Fibria | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | R$ 956577 |
TRADE ACCOUNTS PAYABLE (Details
TRADE ACCOUNTS PAYABLE (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Trade accounts payable | ||
Trade accounts payable | R$ 2081533 | R$ 2376459 |
Klabin S.A. | ||
Trade accounts payable | ||
Payment Period | 360 days | |
Pulp | Klabin S.A. | ||
Trade accounts payable | ||
Trade accounts payable | R$ 30165 | |
Domestic | ||
Trade accounts payable | ||
Related party (Companies of the Suzano group) | 1,448 | 2,478 |
Trade accounts payable | 1,588,280 | 1,288,774 |
Foreign | ||
Trade accounts payable | ||
Trade accounts payable | R$ 491805 | R$ 1085207 |
LOANS, FINANCING AND DEBENTUR_3
LOANS, FINANCING AND DEBENTURES - Breakdown by type (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | R$ 5546123 | R$ 6227951 | |
Non-current | 75,082,454 | 57,456,375 | |
Total borrowings | 80,628,577 | 63,684,326 | R$ 35737509 |
Interest on financing, current | 1,019,483 | 886,886 | |
Interest on financing, non-current | 136,799 | ||
Interest on financing | 1,019,483 | 1,023,685 | |
Non-current funding, current | 4,526,640 | 5,341,065 | |
Non-current funding, non-current | 75,082,454 | 57,319,576 | |
Non-current funding | 79,609,094 | 62,660,641 | |
Foreign | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 3,581,222 | 2,664,833 | |
Non-current | 60,283,044 | 42,834,771 | |
Total borrowings | R$ 63864266 | 45,499,604 | |
Foreign | BNDES | UMBNDES | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.93% | ||
Current borrowings | R$ 32941 | 26,307 | |
Non-current | 27,165 | 27,620 | |
Total borrowings | R$ 60106 | 53,927 | |
Foreign | Bonds | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.71% | ||
Current borrowings | R$ 806695 | 640,177 | |
Non-current | 36,114,088 | 27,375,673 | |
Total borrowings | R$ 36920783 | 28,015,850 | |
Foreign | Export credits (ACC/ACE) | LIBOR/Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 1.52% | ||
Current borrowings | R$ 2735141 | 1,994,868 | |
Non-current | 24,141,791 | 15,431,478 | |
Total borrowings | 26,876,932 | 17,426,346 | |
Foreign | Others | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 6,445 | 3,481 | |
Total borrowings | 6,445 | 3,481 | |
Domestic | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 1,964,901 | 3,563,118 | |
Non-current | 14,799,410 | 14,621,604 | |
Total borrowings | R$ 16764311 | 18,184,722 | |
Domestic | BNDES | TJLP | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 7.18% | ||
Current borrowings | R$ 285382 | 283,658 | |
Non-current | 1,389,771 | 1,517,649 | |
Total borrowings | R$ 1675153 | 1,801,307 | |
Domestic | BNDES | TLP | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 9.72% | ||
Current borrowings | R$ 19036 | 18,404 | |
Non-current | 431,800 | 441,233 | |
Total borrowings | R$ 450836 | 459,637 | |
Domestic | BNDES | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.06% | ||
Current borrowings | R$ 33272 | 39,325 | |
Non-current | 62,313 | 77,333 | |
Total borrowings | R$ 95585 | 116,658 | |
Domestic | BNDES | Selic | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.50% | ||
Current borrowings | R$ 85538 | 78,458 | |
Non-current | 1,076,966 | 718,017 | |
Total borrowings | 1,162,504 | 796,475 | |
Domestic | FINAME ("Special Agency of Industrial Financing") | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 7917 | ||
Domestic | FINAME ("Special Agency of Industrial Financing") | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.43% | ||
Current borrowings | R$ 4276 | 4,781 | |
Non-current | 7,917 | 9,564 | |
Total borrowings | 12,193 | 14,345 | |
Domestic | BNB | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 139361 | ||
Domestic | BNB | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.73% | ||
Current borrowings | R$ 35300 | 37,815 | |
Non-current | 139,361 | 156,904 | |
Total borrowings | 174,661 | 194,719 | |
Domestic | CRA ("Agribusiness Receivables Certificates") | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 2971744 | ||
Domestic | CRA ("Agribusiness Receivables Certificates") | CDI/IPCA | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.53% | ||
Current borrowings | R$ 1379045 | 2,860,938 | |
Non-current | 2,971,744 | 2,952,451 | |
Total borrowings | 4,350,789 | 5,813,389 | |
Domestic | NCE ("Export Credit Notes") | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 1273045 | ||
Domestic | NCE ("Export Credit Notes") | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.73% | ||
Current borrowings | R$ 65940 | 131,914 | |
Non-current | 1,273,045 | 1,270,065 | |
Total borrowings | 1,338,985 | 1,401,979 | |
Domestic | Rural Producer Certificate | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 273440 | ||
Domestic | Rural Producer Certificate | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 8.62% | ||
Current borrowings | R$ 3955 | 5,840 | |
Non-current | 273,440 | 273,303 | |
Total borrowings | 277,395 | 279,143 | |
Domestic | Export credits ("Pre payment") | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 1313123 | ||
Domestic | Export credits ("Pre payment") | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 8.07% | ||
Current borrowings | R$ 23276 | 77,694 | |
Non-current | 1,313,123 | 1,312,586 | |
Total borrowings | 1,336,399 | 1,390,280 | |
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 441912 | ||
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 7.99% | ||
Current borrowings | R$ 72413 | 76,596 | |
Non-current | 441,912 | 475,905 | |
Total borrowings | 514,325 | 552,501 | |
Domestic | Others (Revolving costs, working capital, FIDC and FDI) | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 4470 | ||
Domestic | Others (Revolving costs, working capital, FIDC and FDI) | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 0.40% | ||
Other adjustments to current borrowings | R$ 52342 | (62,302) | |
Non-current | 4,470 | 4,559 | |
Other adjustments to borrowings | (47,872) | (57,743) | |
Domestic | Debentures | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current | R$ 5413548 | ||
Domestic | Debentures | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.27% | ||
Current borrowings | R$ 9810 | 9,997 | |
Non-current | 5,413,548 | 5,412,035 | |
Total borrowings | R$ 5423358 | R$ 5422032 |
LOANS, FINANCING AND DEBENTUR_4
LOANS, FINANCING AND DEBENTURES - Rollforward in loans, financing and debentures (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
LOANS, FINANCING AND DEBENTURES | ||
Beginning balance | R$ 63684326 | R$ 35737509 |
Reclassification - accounts payable from lease operations | (18,225) | |
Fundraising | 6,700,529 | 18,993,837 |
Interest accrued | 1,736,775 | 3,362,250 |
Exchange rate variation, net | 16,364,585 | 1,781,562 |
Settlement of principal | (6,224,940) | (13,994,708) |
Settlement of interest | (1,682,413) | (2,977,957) |
Amortization of fundraising costs | 39,055 | 185,807 |
Other | 10,660 | (52,845) |
Ending balance | R$ 80628577 | 63,684,326 |
Fibria | ||
LOANS, FINANCING AND DEBENTURES | ||
Addition from acquisition of subsidiaries | R$ 20667096 |
LOANS, FINANCING AND DEBENTUR_5
LOANS, FINANCING AND DEBENTURES - Breakdown by maturity - non current (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
LOANS, FINANCING AND DEBENTURES | ||
Non-current | R$ 75082454 | R$ 57456375 |
Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 60,283,044 | 42,834,771 |
Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 27,165 | |
Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 36,114,088 | 27,375,673 |
Foreign | Export credits (ACC pre-payment) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 24,141,791 | |
Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 14,799,410 | 14,621,604 |
Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,389,771 | 1,517,649 |
Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 431,800 | 441,233 |
Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 62,313 | 77,333 |
Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,076,966 | 718,017 |
Domestic | FINAME ("Special Agency of Industrial Financing") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 7,917 | |
Domestic | FINAME ("Special Agency of Industrial Financing") | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 7,917 | 9,564 |
Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 139,361 | |
Domestic | BNB | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 139,361 | 156,904 |
Domestic | CRA ("Agribusiness Receivables Certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,971,744 | |
Domestic | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,273,045 | |
Domestic | Rural Producer Certificate | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 273,440 | |
Domestic | Export credits ("Pre payment") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,313,123 | |
Domestic | Export credits ("Pre payment") | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,313,123 | 1,312,586 |
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 441,912 | |
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 441,912 | 475,905 |
Domestic | Others (Revolving costs, working capital, FIDC and FDI) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 4,470 | |
Domestic | Others (Revolving costs, working capital, FIDC and FDI) | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 4,470 | R$ 4559 |
Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 5,413,548 | |
Later than one year and not later than two years | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 362,135 | |
Later than one year and not later than two years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 94,864 | |
Later than one year and not later than two years | Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,264 | |
Later than one year and not later than two years | Foreign | Export credits (ACC pre-payment) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 92,600 | |
Later than one year and not later than two years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 267,271 | |
Later than one year and not later than two years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 136,711 | |
Later than one year and not later than two years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 9,433 | |
Later than one year and not later than two years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 14,475 | |
Later than one year and not later than two years | Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 48,712 | |
Later than one year and not later than two years | Domestic | FINAME ("Special Agency of Industrial Financing") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,908 | |
Later than one year and not later than two years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 17,569 | |
Later than one year and not later than two years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 33,993 | |
Later than one year and not later than two years | Domestic | Others (Revolving costs, working capital, FIDC and FDI) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 4,470 | |
Later than two years and not later than three years | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 4,574,075 | |
Later than two years and not later than three years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,550,434 | |
Later than two years and not later than three years | Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 13,583 | |
Later than two years and not later than three years | Foreign | Export credits (ACC pre-payment) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,536,851 | |
Later than two years and not later than three years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,023,641 | |
Later than two years and not later than three years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 268,806 | |
Later than two years and not later than three years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 18,866 | |
Later than two years and not later than three years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 24,560 | |
Later than two years and not later than three years | Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 94,876 | |
Later than two years and not later than three years | Domestic | FINAME ("Special Agency of Industrial Financing") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,786 | |
Later than two years and not later than three years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 33,081 | |
Later than two years and not later than three years | Domestic | CRA ("Agribusiness Receivables Certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,512,680 | |
Later than two years and not later than three years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 67,986 | |
Later than three years and not later than four years | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 12,058,010 | |
Later than three years and not later than four years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 10,070,278 | |
Later than three years and not later than four years | Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 11,318 | |
Later than three years and not later than four years | Foreign | Export credits (ACC pre-payment) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 10,058,960 | |
Later than three years and not later than four years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,987,732 | |
Later than three years and not later than four years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 268,026 | |
Later than three years and not later than four years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 18,866 | |
Later than three years and not later than four years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 18,599 | |
Later than three years and not later than four years | Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 118,336 | |
Later than three years and not later than four years | Domestic | FINAME ("Special Agency of Industrial Financing") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,656 | |
Later than three years and not later than four years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 35,199 | |
Later than three years and not later than four years | Domestic | CRA ("Agribusiness Receivables Certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,459,064 | |
Later than three years and not later than four years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 67,986 | |
Later than four years and not later than five years | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 12,592,259 | |
Later than four years and not later than five years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 10,803,163 | |
Later than four years and not later than five years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 3,266,344 | |
Later than four years and not later than five years | Foreign | Export credits (ACC pre-payment) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 7,536,819 | |
Later than four years and not later than five years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,789,096 | |
Later than four years and not later than five years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 239,884 | |
Later than four years and not later than five years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 18,866 | |
Later than four years and not later than five years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 4,679 | |
Later than four years and not later than five years | Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 110,275 | |
Later than four years and not later than five years | Domestic | FINAME ("Special Agency of Industrial Financing") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,198 | |
Later than four years and not later than five years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 33,085 | |
Later than four years and not later than five years | Domestic | Export credits ("Pre payment") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,313,123 | |
Later than four years and not later than five years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 67,986 | |
Later than five years and not later than six years | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 10,405,885 | |
Later than five years and not later than six years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 6,663,707 | |
Later than five years and not later than six years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 3,238,123 | |
Later than five years and not later than six years | Foreign | Export credits (ACC pre-payment) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 3,425,584 | |
Later than five years and not later than six years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 3,742,178 | |
Later than five years and not later than six years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 292,572 | |
Later than five years and not later than six years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 17,618 | |
Later than five years and not later than six years | Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 234,525 | |
Later than five years and not later than six years | Domestic | FINAME ("Special Agency of Industrial Financing") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 369 | |
Later than five years and not later than six years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 10,258 | |
Later than five years and not later than six years | Domestic | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 640,800 | |
Later than five years and not later than six years | Domestic | Rural Producer Certificate | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 137,500 | |
Later than five years and not later than six years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 67,986 | |
Later than five years and not later than six years | Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,340,550 | |
Later than six years and not later than seven years | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 7,871,445 | |
Later than six years and not later than seven years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 4,313,163 | |
Later than six years and not later than seven years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 3,822,186 | |
Later than six years and not later than seven years | Foreign | Export credits (ACC pre-payment) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 490,977 | |
Later than six years and not later than seven years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 3,558,282 | |
Later than six years and not later than seven years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 169,102 | |
Later than six years and not later than seven years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 20,120 | |
Later than six years and not later than seven years | Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 197,061 | |
Later than six years and not later than seven years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 10,169 | |
Later than six years and not later than seven years | Domestic | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 632,245 | |
Later than six years and not later than seven years | Domestic | Rural Producer Certificate | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 135,940 | |
Later than six years and not later than seven years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 67,986 | |
Later than six years and not later than seven years | Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 2,325,659 | |
Later than seven years | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 27,218,645 | |
Later than seven years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 25,787,435 | |
Later than seven years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 25,787,435 | |
Later than seven years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 1,431,210 | |
Later than seven years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 14,670 | |
Later than seven years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 328,031 | |
Later than seven years | Domestic | BNDES | Selic | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 273,181 | |
Later than seven years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | 67,989 | |
Later than seven years | Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current | R$ 747339 |
LOANS, FINANCING AND DEBENTUR_6
LOANS, FINANCING AND DEBENTURES - Breakdown by currency (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
LOANS, FINANCING AND DEBENTURES | |||
Amount of borrowings outstanding intended to pay | R$ 80628577 | R$ 63684326 | R$ 35737509 |
Brazilian Reais | |||
LOANS, FINANCING AND DEBENTURES | |||
Amount of borrowings outstanding intended to pay | 16,751,206 | 18,170,261 | |
USD | |||
LOANS, FINANCING AND DEBENTURES | |||
Amount of borrowings outstanding intended to pay | 63,817,265 | 45,460,138 | |
Currency basket | |||
LOANS, FINANCING AND DEBENTURES | |||
Amount of borrowings outstanding intended to pay | R$ 60106 | R$ 53927 |
LOANS, FINANCING AND DEBENTUR_7
LOANS, FINANCING AND DEBENTURES - Fundraising costs (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Cost | R$ 676905 | |
Amortization | 254,340 | |
Balance to be amortized | 422,565 | R$ 351394 |
Bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 343,642 | |
Amortization | 95,226 | |
Balance to be amortized | 248,416 | 201,467 |
CRA and NCE | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 125,222 | |
Amortization | 85,955 | |
Balance to be amortized | 39,267 | 47,443 |
Export credits (ACC/ACE) | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 102,769 | |
Amortization | 33,875 | |
Balance to be amortized | 68,894 | 40,382 |
Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 24,467 | |
Amortization | 6,915 | |
Balance to be amortized | 17,552 | 19,065 |
BNDES ("IOF") | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 62,658 | |
Amortization | 18,435 | |
Balance to be amortized | 44,223 | 38,447 |
Others | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 18,147 | |
Amortization | 13,934 | |
Balance to be amortized | R$ 4213 | R$ 4590 |
LOANS, FINANCING AND DEBENTUR_8
LOANS, FINANCING AND DEBENTURES - Relevant transactions entered into during the period (Details) R$ in Thousands, $ in Thousands | Jun. 29, 2020BRL (R$) | Apr. 02, 2020USD ($) | Feb. 14, 2020USD ($) | Apr. 02, 2020BRL (R$) | Feb. 14, 2020BRL (R$) |
Export Prepayment Agreements ("EPP") | Suzano Pulp and Paper Europe S.A., Suzano Austria GmbH and Fibria Overseas Finance Ltd | Transactions entered into during the period | |||||
LOANS, FINANCING AND DEBENTURES | |||||
Notional amount | $ 850,000 | R$ 3672259 | |||
Debt instrument term | 6 years | ||||
Debt instrument grace period | 4 years | ||||
Interest rate | 1.15% | 1.15% | |||
Interest rate basis | LIBOR 3M | ||||
Revolving credit facility | Suzano Pulp and Paper Europe S.A | |||||
LOANS, FINANCING AND DEBENTURES | |||||
Notional amount | $ 500,000 | R$ 2638221 | |||
Interest rate | 1.30% | 1.30% | |||
Interest rate basis | quarterly LIBOR | ||||
BNDES | |||||
LOANS, FINANCING AND DEBENTURES | |||||
Notional amount | R$ 400000 | ||||
Debt instrument term | 124 months | ||||
Interest rate basis | Selic interest rate | ||||
BNDES | Transactions entered into during the period | |||||
LOANS, FINANCING AND DEBENTURES | |||||
Interest rate | 1.96% |
LOANS, FINANCING AND DEBENTUR_9
LOANS, FINANCING AND DEBENTURES - Relevant transactions settled in the period (Details) R$ in Thousands, $ in Thousands | Jun. 22, 2020BRL (R$) | Apr. 13, 2020BRL (R$) | Mar. 31, 2020USD ($) | Mar. 31, 2020BRL (R$) | Feb. 14, 2020USD ($) | Feb. 14, 2020BRL (R$) |
Export Prepayment Agreements ("EPP") | Suzano Pulp and Paper Europe S.A | Transactions settled during the period | ||||||
LOANS, FINANCING AND DEBENTURES | ||||||
Transaction amount settled | $ 755,864 | R$ 3240229 | ||||
Interest rate | 1.15% | 1.15% | ||||
Interest rate basis | quarterly LIBOR | quarterly LIBOR | ||||
Make-whole Senior Notes | Suzano Trading Ltd | ||||||
LOANS, FINANCING AND DEBENTURES | ||||||
Transaction amount settled | $ 199,864 | R$ 1039032 | ||||
Redemption price | 104.287% | 104.287% | ||||
Agribusiness Receivables Certificates (CRA) issued in April 2016 | ||||||
LOANS, FINANCING AND DEBENTURES | ||||||
Transaction amount settled | R$ 612779 | |||||
Principle amount | 600,000 | |||||
Accrued interest | R$ 12779 | |||||
Agribusiness Receivables Certificates (CRA) issued in April 2016 | CDI | ||||||
LOANS, FINANCING AND DEBENTURES | ||||||
Percentage of basis used to calculate interest rate | 98.00% | |||||
Agribusiness Receivables Certificates (CRA) issued in June 2016 | ||||||
LOANS, FINANCING AND DEBENTURES | ||||||
Transaction amount settled | R$ 895655 | |||||
Principle amount | 880,155 | |||||
Accrued interest | R$ 15500 | |||||
Agribusiness Receivables Certificates (CRA) issued in June 2016 | CDI | ||||||
LOANS, FINANCING AND DEBENTURES | ||||||
Percentage of basis used to calculate interest rate | 97.00% |
LEASE - Right of use assets (De
LEASE - Right of use assets (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | |
Right of use assets, effect of adoption | ||||
Beginning balance | R$ 3850237 | R$ 0 | ||
Initial adoption on January 1, 2019 | R$ 3357850 | |||
Additions | 561,162 | 914,327 | ||
Amortization | (211,595) | (421,940) | ||
Ending balance | 4,199,804 | 3,850,237 | ||
Reclassified to biological assets | 118,286 | R$ 116577 | ||
Lands and Farms | ||||
Right of use assets, effect of adoption | ||||
Beginning balance | 1,769,645 | 0 | ||
Initial adoption on January 1, 2019 | 1,762,943 | |||
Additions | 337,323 | 260,982 | ||
Amortization | (119,220) | (254,280) | ||
Ending balance | 1,987,748 | 1,769,645 | ||
Machinery and equipment | ||||
Right of use assets, effect of adoption | ||||
Beginning balance | 130,051 | 0 | ||
Initial adoption on January 1, 2019 | 143,685 | |||
Additions | 2,153 | 1,529 | ||
Amortization | (5,054) | (15,163) | ||
Ending balance | 127,150 | 130,051 | ||
Buildings | ||||
Right of use assets, effect of adoption | ||||
Beginning balance | 45,999 | 0 | ||
Initial adoption on January 1, 2019 | 41,570 | |||
Additions | 26,716 | 39,794 | ||
Amortization | (10,521) | (35,365) | ||
Ending balance | 62,194 | 45,999 | ||
Ships and boats | ||||
Right of use assets, effect of adoption | ||||
Beginning balance | 1,904,455 | 0 | ||
Initial adoption on January 1, 2019 | 1,408,640 | |||
Additions | 194,907 | 612,022 | ||
Amortization | (76,771) | (116,207) | ||
Ending balance | 2,022,591 | 1,904,455 | ||
Vehicles | ||||
Right of use assets, effect of adoption | ||||
Beginning balance | 87 | 0 | ||
Initial adoption on January 1, 2019 | R$ 1012 | |||
Additions | 63 | |||
Amortization | (29) | (925) | ||
Ending balance | R$ 121 | R$ 87 |
LEASE - Lease liabilities (Deta
LEASE - Lease liabilities (Details) R$ in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Apr. 12, 2020 | Jun. 30, 2020USD ($) | Jun. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Jan. 01, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | |
Lease Liabilities | ||||||
Present value of liabilities | R$ 5173972 | R$ 3984070 | R$ 0 | |||
IFRS 16, Leases | ||||||
Lease Liabilities | ||||||
Present value of liabilities | R$ 5173972 | |||||
Lands and Farms | IFRS 16, Leases | ||||||
Lease Liabilities | ||||||
Average rate - % per annual | 11.45% | |||||
Present value of liabilities | R$ 2164710 | |||||
Machinery and equipment | IFRS 16, Leases | ||||||
Lease Liabilities | ||||||
Average rate - % per annual | 10.62% | |||||
Present value of liabilities | R$ 247281 | |||||
Buildings | IFRS 16, Leases | ||||||
Lease Liabilities | ||||||
Average rate - % per annual | 9.80% | |||||
Present value of liabilities | R$ 41650 | |||||
Ships and boats | IFRS 16, Leases | ||||||
Lease Liabilities | ||||||
Average rate - % per annual | 11.39% | |||||
Present value of liabilities | R$ 2720284 | |||||
Vehicles | IFRS 16, Leases | ||||||
Lease Liabilities | ||||||
Average rate - % per annual | 10.04% | |||||
Present value of liabilities | R$ 47 | |||||
Leased ships | ||||||
Lease Liabilities | ||||||
Lease term | 10 months | |||||
Number of ships leased | 2 | |||||
Chartering available from third party | $ 7,500 | R$ 38990 |
LEASE - Lease liabilities Rollf
LEASE - Lease liabilities Rollforward (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Lease Liabilities | ||||
Beginning balance | R$ 3984070 | R$ 0 | R$ 0 | |
Additions | 561,162 | 914,327 | ||
Payments | (354,289) | (646,487) | ||
Accrual of financial charges | 240,528 | 275,404 | ||
Exchange rate variation | 742,501 | 11,929 | ||
Ending balance | 5,173,972 | 3,984,070 | ||
Current | 704,174 | 656,844 | ||
Non-current | 4,469,798 | R$ 3327226 | ||
IFRS 16, Leases | ||||
Lease Liabilities | ||||
Initial adoption on January 1, 2019 | R$ 3428897 | |||
Leased Land | ||||
Lease Liabilities | ||||
Accrual of financial charges | R$ 37040 | R$ 30440 |
LEASE - Amounts recognized in t
LEASE - Amounts recognized in the statement of income for the year (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
LEASE | ||
Expenses relating to short-term assets | R$ 2531 | R$ 26570 |
Expenses relating to low-value assets | 6,428 | 4,581 |
Total amount recognized | R$ 8959 | R$ 31151 |
PROVISION FOR JUDICIAL LIABIL_3
PROVISION FOR JUDICIAL LIABILITIES - Provisions for probable losses by lawsuit natures (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of other provisions [line items] | |||
Judicial deposits | R$ 188814 | R$ 174324 | |
Provision | 3,630,265 | 3,686,801 | |
Provisions, net | 3,441,451 | 3,512,477 | R$ 351270 |
Tax | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | (130,502) | (124,133) | |
Provision | 3,137,046 | 3,176,503 | |
Provisions, net | 3,006,544 | 3,052,370 | |
Labor | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | (54,975) | (50,464) | |
Provision | 234,300 | 227,139 | R$ 50869 |
Provisions, net | 179,325 | 176,675 | |
Civil | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | (3,337) | 273 | |
Provision | 258,919 | 283,159 | |
Provisions, net | R$ 255582 | R$ 283432 |
PROVISION FOR JUDICIAL LIABIL_4
PROVISION FOR JUDICIAL LIABILITIES - Provisions for probable losses by nature of proceedings (Details) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020BRL (R$)lawsuit | Dec. 31, 2019BRL (R$) | |
PROVISION FOR JUDICIAL LIABILITIES | ||
Balance at the beginning of the year | R$ 3686801 | |
Business combination with Fibria | R$ 389593 | |
Payments | (52,693) | (40,360) |
Write-off | (68,635) | (73,039) |
Additions | 42,233 | 3,009,576 |
Monetary adjustment | 22,559 | 49,761 |
Balance at the end of the year | 3,630,265 | 3,686,801 |
Tax | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Balance at the beginning of the year | 492,413 | 296,869 |
Business combination with Fibria | 139,462 | |
Payments | (22,706) | (34) |
Write-off | (25,331) | (3,875) |
Additions | 5,362 | 46,603 |
Monetary adjustment | 6,969 | 13,388 |
Balance at the end of the year | R$ 456707 | 492,413 |
Tax | Probable loss | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Number of administrative proceedings and lawsuits | lawsuit | 46 | |
Labor | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Balance at the beginning of the year | R$ 227139 | 50,869 |
Business combination with Fibria | 185,157 | |
Payments | (16,161) | (34,794) |
Write-off | (20,347) | (55,730) |
Additions | 30,920 | 50,521 |
Monetary adjustment | 12,749 | 31,116 |
Balance at the end of the year | R$ 234300 | 227,139 |
Labor | Probable loss | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Number of lawsuits | lawsuit | 1,180 | |
Civil and environment | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Balance at the beginning of the year | R$ 64897 | 3,532 |
Business combination with Fibria | 64,974 | |
Payments | (13,826) | (5,532) |
Write-off | (18,807) | (13,434) |
Additions | 5,951 | 10,100 |
Monetary adjustment | 2,841 | 5,257 |
Balance at the end of the year | R$ 41056 | 64,897 |
Civil and environment | Probable loss | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Number of lawsuits | lawsuit | 28 | |
Contingent liabilities | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Balance at the beginning of the year | R$ 2902352 | |
Write-off | (4,150) | |
Additions | 2,902,352 | |
Balance at the end of the year | R$ 2898202 | R$ 2902352 |
PROVISION FOR JUDICIAL LIABIL_5
PROVISION FOR JUDICIAL LIABILITIES - Provision for possible losses (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | R$ 10069164 | R$ 10779908 |
Fibria | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Fair Value Adjustment Of Probable Contingencies | 2,865,364 | |
Tax | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | 6,379,823 | 7,504,398 |
Labor | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | 293,904 | 279,934 |
Civil | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | R$ 3395437 | R$ 2995576 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Suzano Prev pension plan | ||
Defined contribution plans | ||
Employer contributions | R$ 3505 | R$ 5993 |
FUNSEJEM | ||
Defined contribution plans | ||
Employer contributions | R$ 4363 | R$ 9920 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in actuarial liability (Details) - Defined benefit plan - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Changes in actuarial liability | ||
Actuarial liabilities balance, beginning of the year | R$ 736179 | R$ 430427 |
Business combination with Fibria | 147,877 | |
Interest on employee benefits | 26,527 | 44,496 |
Actuarial loss | 147,640 | |
Exchange rate variation | 449 | |
Benefits paid in the year | (19,050) | (34,261) |
Actuarial liabilities balance, end of the year | R$ 744105 | R$ 736179 |
SHARE-BASED COMPENSATION PLAN -
SHARE-BASED COMPENSATION PLAN - Long term compensation plans ("PS and SAR") (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020EquityInstrumentsitemR$ / shares | Dec. 31, 2019EquityInstrumentsR$ / shares | |
SHARE-BASED COMPENSATION PLAN | ||
Number of share-based compensation plans | item | 3 | |
PSO | ||
Number of shares | ||
Beginning balance | 5,996,437 | 5,045,357 |
Granted during of the period | 869,251 | 2,413,038 |
Exercised | (755,707) | (827,065) |
Exercised due to resignation | (13,211) | (106,983) |
Abandoned / prescribed due to resignation | (123,457) | (527,910) |
Ending balance | 5,973,313 | 5,996,437 |
Weighted average exercise price for share options exercised | R$ / shares | R$ 38.48 | R$ 31.75 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLAN - Common stock option plan (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2020EquityInstrumentsR$ / shares | |
SHARE-BASED COMPENSATION PLAN | |
Price on grant date | R$ / shares | R$ 39.10 |
Shares Granted | EquityInstruments | 130,435 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLAN - Amounts recognized in the financial Statements (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Liabilities and equity | |||
Provision for phantom stock plan | R$ 151365 | R$ 136505 | |
Capital reserves | 6,200,079 | 6,198,599 | |
Income Statement | |||
Total general and administrative expenses from share-based transactions | (50,623) | R$ 30167 | |
PSO | |||
Liabilities and equity | |||
Provision for phantom stock plan | 151,365 | 136,505 | |
Income Statement | |||
Total general and administrative expenses from share-based transactions | (49,143) | (27,529) | |
Common stock option plan | |||
Income Statement | |||
Total general and administrative expenses from share-based transactions | (1,480) | R$ 2638 | |
Common stock option plan | Stock options granted | |||
Liabilities and equity | |||
Capital reserves | R$ 7459 | R$ 5979 |
LIABILITIES FOR ASSETS ACQUIS_3
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2018 | Aug. 31, 2014 |
Liabilities for assets acquisitions | ||||
Assets acquisition | R$ 76286 | R$ 78345 | ||
Business combination transaction | 581,849 | 463,270 | ||
Liabilities for assets acquisitions and Business combination transaction | 658,135 | 541,615 | ||
Total current liabilities | 127,721 | 94,414 | ||
Total non-current liabilities | 530,414 | 447,201 | ||
VFFIP | ||||
Liabilities for assets acquisitions | ||||
Business combination transaction | 538,897 | 420,737 | ||
Consideration paid | R$ 528941 | |||
Cash transferred | R$ 44998 | |||
Facepa | ||||
Liabilities for assets acquisitions | ||||
Business combination transaction | 42,952 | 42,533 | ||
Consideration paid | R$ 307876 | |||
Cash transferred | R$ 267876 | |||
Lands and forests | Real Estate Receivables Certificates | ||||
Liabilities for assets acquisitions | ||||
Assets acquisition | R$ 76286 | R$ 78345 |
SHAREHOLDERS' EQUITY - Share ca
SHAREHOLDERS' EQUITY - Share capital (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Share Capital | ||
Share capital | R$ 9235546 | R$ 9235546 |
Number of shares outstanding | 1,361,263,584 | |
Percentage of common shares | 100.00% | |
Maximum authorized increase in number of common shares | 780,119,712 | |
Share Capital | ||
Share Capital | ||
Share capital | R$ 9269281 | |
Treasury shares | ||
Share Capital | ||
Number of shares outstanding | 12,042,004 | |
Percentage of common shares | 0.88% | |
Share issuance costs | ||
Share Capital | ||
Share issue related cost | R$ 33735 | |
BRAZIL | ||
Share Capital | ||
SUZB3 common shares quoted (per share) | R$ 36.79 | R$ 39.68 |
Controlling Shareholders | ||
Share Capital | ||
Number of shares outstanding | 624,141,609 | |
Percentage of common shares | 45.85% | |
Suzano Holding S.A. | ||
Share Capital | ||
Number of shares outstanding | 367,612,329 | |
Percentage of common shares | 27.01% | |
Controller | ||
Share Capital | ||
Number of shares outstanding | 194,809,797 | |
Percentage of common shares | 14.31% | |
Management | ||
Share Capital | ||
Number of shares outstanding | 35,564,742 | |
Percentage of common shares | 2.61% | |
Alden Fundo de Investimento em Aes | ||
Share Capital | ||
Number of shares outstanding | 26,154,741 | |
Percentage of common shares | 1.92% | |
BNDESPAR | ||
Share Capital | ||
Number of shares outstanding | 150,217,425 | |
Percentage of common shares | 11.04% | |
Votorantim S.A. | ||
Share Capital | ||
Number of shares outstanding | 75,180,059 | |
Percentage of common shares | 5.52% | |
Other shareholders | ||
Share Capital | ||
Number of shares outstanding | 499,682,487 | |
Percentage of common shares | 36.71% |
SHAREHOLDERS' EQUITY - Treasury
SHAREHOLDERS' EQUITY - Treasury shares (Details) R$ / shares in Units, R$ in Thousands | 6 Months Ended |
Jun. 30, 2020BRL (R$)R$ / sharesshares | |
SHAREHOLDERS' EQUITY | |
Quantity | shares | 12,042,044 |
Average cost per share | R$ / shares | R$ 18.13 |
Historical value | R$ 218265 |
Market value | 443,025 |
Purchase of treasury shares | 0 |
Sale of treasury shares | R$ 0 |
EARNINGS (LOSS) PER SHARE - Bas
EARNINGS (LOSS) PER SHARE - Basic earnings (losses) per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic earnings per share | ||||
Resulted of the period attributable for controlling shareholders' | R$ 2057101 | R$ 700548 | R$ 15479631 | R$ 526255 |
Weighted average number of shares in the period | 1,361,264 | 1,361,264 | ||
Weighted average treasury shares | (12,042) | (12,042) | ||
Weighted average number of outstanding shares | 1,349,222 | 1,349,222 | ||
Basic loss per common share - RS | R$ 1.52466 | R$ 0.51922 | R$ 11.47301 | R$ 0.39004 |
EARNINGS (LOSS) PER SHARE - Dil
EARNINGS (LOSS) PER SHARE - Diluted earnings (losses) per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Diluted earnings per share | ||||
Resulted of the period attributable for controlling shareholders' | R$ 2057101 | R$ 700548 | R$ 15479631 | R$ 526255 |
Weighted average number of shares in the period (except treasury shares) | 1,349,222 | 1,349,222 | ||
Weighted average number of shares (diluted) | 1,349,222 | 1,349,222 | ||
Diluted loss per common share - R$ | R$ 1.52466 | R$ 0.51922 | R$ 11.47301 | R$ 0.39004 |
NET FINANCIAL RESULT (Details)
NET FINANCIAL RESULT (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
NET FINANCIAL RESULT | |||||
Interest on loans, financing and debentures | R$ 1728835 | R$ 1674698 | |||
Amortization of fundraising costs | (41,268) | (159,856) | |||
Amortization of fair value adjustment on business combination | (10,660) | 63,128 | |||
Other financial expenses | (338,787) | (307,570) | |||
Financial expenses | (2,119,550) | (2,078,996) | |||
Cash and cash equivalents and marketable securities | 108,427 | 214,116 | |||
Amortization of fair value adjustment on business combination | 47,619 | 37,412 | |||
Other financial income | 47,127 | 47,401 | |||
Financial income | 203,173 | 298,929 | |||
Income | 990,989 | 1,052,879 | |||
Expenses | (11,826,103) | (1,432,386) | |||
Income from derivative financial instruments | (10,835,114) | (379,507) | |||
Exchange rate variation on loans, financing and debentures | (16,364,585) | 421,010 | |||
Leases | (742,501) | (11,684) | |||
Other assets and liabilities | 1,757,291 | (106,830) | |||
Monetary and exchange rate variation, net | R$ 2930209 | R$ 758223 | (15,349,795) | R$ 302496 | 302,496 |
Financial result, net | (28,101,286) | (1,857,078) | R$ 1857078 | ||
Capitalized interest costs on loans, financing and debentures | R$ 7940 | R$ 1505 |
NET SALES - Reconciliation (Det
NET SALES - Reconciliation (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
NET SALES | |||||
Gross sales | R$ 17477563 | R$ 14984035 | |||
Adjustment to present value | (8,564) | ||||
Returns and cancelations | (40,981) | (47,704) | |||
Discounts and rebates | (1,901,193) | (1,863,366) | |||
Deductions | 15,535,389 | 13,064,401 | |||
Taxes on sales | (558,923) | (700,320) | |||
Net sales | R$ 7995673 | R$ 6665082 | R$ 14976466 | R$ 12364081 | R$ 12364081 |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating segment results (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating segments | |||||
Net sales | R$ 7995673 | R$ 6665082 | R$ 14976466 | R$ 12364081 | R$ 12364081 |
Cost of sales | (4,788,694) | (5,222,119) | (9,608,693) | (9,947,012) | |
Gross profit | 3,206,979 | 1,442,963 | R$ 5367773 | R$ 2417069 | |
Gross margin (%) | 35.84% | 19.50% | |||
Operating income (expenses) | R$ 1503135 | R$ 1349196 | |||
Selling | (547,098) | (456,981) | (1,062,034) | (898,284) | |
General and administrative | (335,715) | (278,031) | (650,551) | (608,796) | |
Other operating, net | 195,671 | 171,199 | 212,402 | 152,315 | |
Income (loss) from associates and joint ventures | (3,663) | 3,911 | (2,952) | 5,569 | |
Operating profit before net financial income ("EBIT") | 2,516,174 | 883,061 | R$ 3864638 | R$ 1067873 | |
Operating margin (%) | 25.80% | 8.60% | |||
Financial result, net | R$ 28101286 | R$ 1857078 | R$ 1857078 | ||
Net Income (loss) before income taxes | (3,141,064) | 962,126 | (24,236,648) | (789,205) | |
Income taxes | 8,765,069 | 259,921 | |||
Net Income (loss) for the period | (2,052,518) | 699,848 | R$ 15471579 | R$ 529284 | |
Profit (loss) margin for the year (%) | (103.31%) | (4.30%) | |||
Resulted of the period attributable for controlling shareholders' | (2,057,101) | 700,548 | R$ 15479631 | R$ 526255 | |
Result of the period attributed to non-controlling shareholders | R$ 4583 | R$ 700 | 8,052 | (3,029) | |
Depreciation, depletion and amortization | 3,357,581 | 4,695,448 | |||
Domestic | |||||
Operating segments | |||||
Net sales | 2,113,991 | 2,576,000 | |||
Foreign | |||||
Operating segments | |||||
Net sales | 12,862,475 | 9,788,081 | |||
Pulp | |||||
Operating segments | |||||
Net sales | 12,862,936 | 10,055,757 | |||
Cost of sales | (8,246,527) | (8,414,712) | |||
Gross profit | R$ 4616409 | R$ 1641045 | |||
Gross margin (%) | 35.89% | 16.30% | |||
Operating income (expenses) | R$ 1179960 | R$ 971698 | |||
Selling | (875,343) | (712,005) | |||
General and administrative | (460,226) | (418,980) | |||
Other operating, net | 170,212 | 159,287 | |||
Income (loss) from associates and joint ventures | (14,603) | ||||
Operating profit before net financial income ("EBIT") | R$ 3436449 | R$ 669347 | |||
Operating margin (%) | 26.72% | 6.70% | |||
Net Income (loss) before income taxes | R$ 3436449 | R$ 669347 | |||
Net Income (loss) for the period | R$ 3436449 | R$ 669347 | |||
Profit (loss) margin for the year (%) | 26.72% | 6.70% | |||
Resulted of the period attributable for controlling shareholders' | R$ 3436449 | R$ 669347 | |||
Depreciation, depletion and amortization | 3,126,528 | 4,455,493 | |||
Pulp | Domestic | |||||
Operating segments | |||||
Net sales | 741,568 | 984,098 | |||
Pulp | Foreign | |||||
Operating segments | |||||
Net sales | 12,121,368 | 9,071,659 | |||
Paper | |||||
Operating segments | |||||
Net sales | 2,113,530 | 2,308,324 | |||
Cost of sales | (1,362,166) | (1,532,300) | |||
Gross profit | R$ 751364 | R$ 776024 | |||
Gross margin (%) | 35.55% | 33.60% | |||
Operating income (expenses) | R$ 323175 | R$ 377498 | |||
Selling | (186,691) | (186,279) | |||
General and administrative | (190,325) | (189,816) | |||
Other operating, net | 42,190 | (6,972) | |||
Income (loss) from associates and joint ventures | 11,651 | 5,569 | |||
Operating profit before net financial income ("EBIT") | R$ 428189 | R$ 398526 | |||
Operating margin (%) | 20.26% | 17.30% | |||
Net Income (loss) before income taxes | R$ 428189 | R$ 398526 | |||
Net Income (loss) for the period | R$ 428189 | R$ 398526 | |||
Profit (loss) margin for the year (%) | 20.26% | 17.30% | |||
Resulted of the period attributable for controlling shareholders' | R$ 428189 | R$ 398526 | |||
Depreciation, depletion and amortization | 231,053 | 239,955 | |||
Paper | Domestic | |||||
Operating segments | |||||
Net sales | 1,372,423 | 1,591,902 | |||
Paper | Foreign | |||||
Operating segments | |||||
Net sales | 741,107 | 716,422 | |||
Not segmented | |||||
Operating segments | |||||
Financial result, net | (28,101,286) | (1,857,078) | |||
Net Income (loss) before income taxes | (28,101,286) | (1,857,078) | |||
Income taxes | 8,765,069 | 259,921 | |||
Net Income (loss) for the period | (19,336,217) | (1,597,157) | |||
Resulted of the period attributable for controlling shareholders' | (19,344,269) | (1,594,128) | |||
Result of the period attributed to non-controlling shareholders | R$ 8052 | R$ 3029 |
SEGMENT INFORMATION - Net sales
SEGMENT INFORMATION - Net sales by product (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Net sales by products | |||||
Net sales | R$ 7995673 | R$ 6665082 | R$ 14976466 | R$ 12364081 | R$ 12364081 |
Market pulp | |||||
Net sales by products | |||||
Net sales | R$ 12862936 | R$ 10055757 | |||
Fluff pulp | |||||
Net sales by products | |||||
Percentage of total net sales | 0.60% | 0.60% | |||
Printing and writing paper | |||||
Net sales by products | |||||
Net sales | R$ 1661611 | R$ 1902733 | |||
Tissue | |||||
Net sales by products | |||||
Percentage of total net sales | 2.60% | 2.60% | |||
Paperboard | |||||
Net sales by products | |||||
Net sales | R$ 430292 | R$ 382440 | |||
Others | |||||
Net sales by products | |||||
Net sales | R$ 21627 | R$ 23151 |
SEGMENT INFORMATION - Goodwill
SEGMENT INFORMATION - Goodwill based on expected future profitability (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of products and services [line items] | ||
Goodwill Based On Expected Future Profitability | R$ 8061818 | R$ 8061818 |
Pulp | ||
Disclosure of products and services [line items] | ||
Goodwill Based On Expected Future Profitability | 7,942,486 | 7,942,486 |
Consumer Goods | ||
Disclosure of products and services [line items] | ||
Goodwill Based On Expected Future Profitability | R$ 119332 | R$ 119332 |
RESULTS BY NATURE (Details)
RESULTS BY NATURE (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cost of sales | |||||
Personnel expenses | R$ 505895 | R$ 724815 | |||
Costs with raw materials, materials and services | (4,059,893) | (3,328,416) | |||
Logistics cost | (2,025,824) | (1,278,385) | |||
Depreciation, depletion and amortization | (2,843,700) | (4,321,013) | |||
Operating expenses Covid-19 | (15,500) | ||||
Other | (157,881) | (294,383) | |||
Cost of sales | R$ 4788694 | R$ 5222119 | (9,608,693) | (9,947,012) | |
Selling expenses | |||||
Personnel expenses | (93,913) | (100,942) | |||
Services | (53,938) | (41,602) | |||
Logistics cost | (410,230) | (273,414) | |||
Depreciation, depletion and amortization | (460,597) | (441,995) | |||
Other | (43,356) | (40,331) | |||
Selling expenses | (547,098) | (456,981) | (1,062,034) | (898,284) | |
General and Administrative expenses | |||||
Personnel expenses | (351,108) | (351,784) | |||
Services | (134,501) | (138,370) | |||
Depreciation and amortization | (43,814) | (20,468) | |||
Social actions Covid-19 | (48,024) | ||||
Operating expenses Covid-19 | (10,729) | ||||
Other | (62,375) | (98,174) | |||
Administrative expenses | (335,715) | (278,031) | (650,551) | (608,796) | |
Other operating income (expenses) net | |||||
Rents and leases | 2,365 | 668 | |||
Result from sale of other products, net | 24,886 | 12,895 | |||
Result from sale and disposal of property, plant and equipment and biological assets, net | 9,343 | (27,568) | |||
Result on fair value adjustment of biological assets | 173,733 | 83,453 | R$ 185399 | ||
Insurance reimbursement | 4,129 | 6,587 | |||
Provision for loss of judicial deposits | (3,284) | ||||
Amortization and depletion | (9,470) | (9,192) | |||
Sale of legal credits (Eletrobras) | 87,000 | ||||
Result on disposal of investments | (9,404) | ||||
Other operating income (expenses), net | 16,820 | 1,756 | |||
Other operating (expenses) income net | R$ 195671 | R$ 171199 | 212,402 | 152,315 | |
Cost of idle capacity and maintenance downtime | R$ 149087 | 0 | |||
Amortization of inventories setup | R$ 2178903 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Apr. 01, 2020 | Aug. 13, 2020USD ($) | Aug. 13, 2020BRL (R$) | Jun. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
Events subsequent to the reporting date | ||||||
Amount of borrowings outstanding intended to pay | R$ 80628577000 | R$ 63684326000 | R$ 35737509000 | |||
Intention to pay revolving credit facility | Revolving credit facility | ||||||
Events subsequent to the reporting date | ||||||
Amount of borrowings outstanding intended to pay | $ 500,000 | R$ 2638221 | ||||
Debt instrument term | 47 months | |||||
Intention to pay revolving credit facility | Revolving credit facility | LIBOR | ||||||
Events subsequent to the reporting date | ||||||
Interest rate adjustment | 1.30% |