Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | Suzano S.A. |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Common Stock, Shares Outstanding | 1,361,263,584 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000909327 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT | ||
Cash and cash equivalents | R$ 3249127 | R$ 4387453 |
Marketable securities | 6,150,631 | 21,098,565 |
Trade accounts receivable | 3,035,817 | 2,537,058 |
Inventories | 4,685,595 | 1,853,104 |
Recoverable taxes | 997,201 | 296,832 |
Derivative financial instruments | 260,273 | 352,454 |
Advances to suppliers | 170,481 | 98,533 |
Assets held for sale | 5,718 | |
Other assets | 335,112 | 169,175 |
Total current assets | 18,884,237 | 30,798,892 |
NON-CURRENT | ||
Marketable securities | 179,703 | |
Recoverable taxes | 708,914 | 231,498 |
Deferred taxes | 2,134,040 | 8,998 |
Derivative financial instruments | 838,699 | 141,480 |
Advances to suppliers | 1,087,149 | 218,493 |
Judicial deposits | 268,672 | 129,005 |
Other assets | 228,881 | 93,935 |
Biological assets | 10,571,499 | 4,935,905 |
Investments | 322,446 | 14,338 |
Property, plant and equipment | 41,120,945 | 17,020,259 |
Right of use | 3,850,237 | |
Intangible | 17,712,803 | 339,841 |
Total non-current | 79,023,988 | 23,133,752 |
TOTAL ASSET | 97,908,225 | 53,932,644 |
CURRENT | ||
Trade accounts payable | 2,376,459 | 632,565 |
Loans, financing and debentures | 6,227,951 | 3,426,696 |
Current lease liabilities | 656,844 | |
Derivative financial instruments | 893,413 | 596,530 |
Taxes payable | 307,639 | 243,835 |
Payroll and charges | 400,435 | 234,192 |
Liabilities for assets acquisitions and subsidiaries | 94,414 | 476,954 |
Dividends payable | 5,720 | 5,434 |
Advances from suppliers | 59,982 | 75,159 |
Other liabilities | 456,338 | 367,313 |
Total current liabilities | 11,479,195 | 6,058,678 |
NON-CURRENT | ||
Loans, financing and debentures | 57,456,375 | 32,310,813 |
Lease Liabilities | 3,327,226 | |
Derivative financial instruments | 2,024,500 | 1,040,170 |
Liabilities for assets acquisitions and subsidiaries | 447,201 | 515,558 |
Provision for judicial liabilities | 3,512,477 | 351,270 |
Employee benefit plans | 736,179 | 430,427 |
Deferred taxes | 578,875 | 1,038,133 |
Share-based compensation plans | 136,505 | 124,318 |
Other liabilities | 121,723 | 37,342 |
Total non-current liabilities | 68,341,061 | 35,848,031 |
TOTAL LIABILITIES | 79,820,256 | 41,906,709 |
Equity | ||
Share Capital | 9,235,546 | 6,241,753 |
Capital reserves | 6,416,864 | 674,221 |
Treasury shares | (218,265) | (218,265) |
Retained earnings reserves | 317,144 | 2,992,590 |
Other reserves | 2,221,341 | 2,321,708 |
Controlling shareholders | 17,972,630 | 12,012,007 |
Non-controlling interest | 115,339 | 13,928 |
Total equity | 18,087,969 | 12,025,935 |
TOTAL LIABILITIES AND EQUITY | R$ 97908225 | R$ 53932644 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||
NET SALES | R$ 26012950 | R$ 13443376 | R$ 10580673 |
Cost of sales | (20,743,482) | (6,922,331) | (6,496,304) |
GROSS PROFIT | 5,269,468 | 6,521,045 | 4,084,369 |
OPERATING INCOME (EXPENSES) | |||
Selling | (1,905,279) | (598,726) | (423,325) |
General and administrative | (1,173,358) | (825,209) | (528,974) |
Income from associates and joint ventures | 31,993 | 7,576 | 5,872 |
Other, net | 405,754 | (96,875) | 140,510 |
OPERATING PROFIT BEFORE NET FINANCIAL INCOME (EXPENSES) | 2,628,578 | 5,007,811 | 3,278,452 |
NET FINANCIAL INCOME (EXPENSES) | |||
Financial expenses | (4,178,848) | (1,500,374) | (1,218,476) |
Financial income | 493,246 | 459,707 | 305,778 |
Derivative financial instruments | (1,075,252) | (2,735,196) | 73,271 |
Monetary and exchange variation, net | (1,964,927) | (1,066,650) | (179,413) |
NET INCOME (LOSS) BEFORE TAXES | (4,097,203) | 165,298 | 2,259,612 |
Current income taxes | (246,110) | (586,568) | (202,187) |
Deferred income taxes | 1,528,571 | 741,084 | (236,431) |
NET INCOME (LOSS) FOR THE YEAR | (2,814,742) | 319,814 | 1,820,994 |
Attributable to | |||
Controlling shareholders' | (2,817,518) | 319,693 | R$ 1820994 |
Non-controlling interest | R$ 2776 | R$ 121 | |
Earnings (loss) per share | |||
Basic | R$ 2.08825 | R$ 0.29236 | R$ 1.66804 |
Diluted | R$ 2.08825 | R$ 0.29199 | R$ 1.66433 |
CONSOLIDATE STATEMENTS OF COMPR
CONSOLIDATE STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Line Items] | |||
Net income (loss) for the year | R$ 2814742 | R$ 319814 | R$ 1820994 |
Items that will not be reclassified to profit or loss | |||
Tax effect of the above items | (1,216) | ||
Subsidiary effect | 2,749 | ||
Tax effect of the subsidiary effect | (935) | ||
Actuarial gain (loss) | (147,640) | (69,305) | 4,173 |
Tax effect on actuarial liabilities | 50,198 | 23,564 | (1,419) |
Total other comprehensive income that will not be reclassified to profit or loss, net of tax | (2,908,010) | 274,073 | 1,823,748 |
Items that may be subsequently reclassified to profit or loss | |||
Exchange variation on conversion of financial statements and on foreign investments | 45,819 | 137,546 | 38,006 |
Total comprehensive income (loss) | (2,862,191) | 411,619 | 1,861,754 |
Attributable to | |||
Controlling shareholders' | (2,864,967) | 411,498 | R$ 1861754 |
Non-controlling interest | 2,776 | R$ 121 | |
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 | 1,667 | ||
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 | 3,153 | ||
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$ 1244 |
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 year at Dec. 31, 2016 | R$ 6241753 | R$ 199402 | R$ 19754 | R$ 15442 | R$ 273665 | R$ 316526 | R$ 1206874 | R$ 115220 | R$ 2314567 | R$ 10124989 | R$ 10124989 | ||||||
Total comprehensive income (loss) | |||||||||||||||||
Net income (loss) for the year | R$ 1820994 | 1,820,994 | 1,820,994 | ||||||||||||||
Actuarial gain (loss) net of deferred taxes | 2,754 | 2,754 | 2,754 | ||||||||||||||
Exchange variation on conversion of financial statements and on foreign investments | 38,006 | 38,006 | 38,006 | ||||||||||||||
Transactions with shareholders: | |||||||||||||||||
Stock options granted | 1,521 | 1,521 | 1,521 | ||||||||||||||
Sale of treasury shares to meet stock-based compensation plan | 8,514 | 8,514 | 8,514 | ||||||||||||||
Treasury shares acquired | (82) | (82) | (82) | ||||||||||||||
Interest on own capital | (199,835) | (199,835) | (199,835) | ||||||||||||||
Reversal of time-barred dividends | 29 | 29 | 29 | ||||||||||||||
Internal changes in equity: | |||||||||||||||||
Realization of deemed cost, net of taxes | (56,999) | 56,999 | |||||||||||||||
Cancelation of treasury | 17,107 | (17,107) | |||||||||||||||
Reserve for tax incentives Sudene-reduction of 75% | 196,604 | (196,604) | |||||||||||||||
Transfer between reserves | 90,372 | 1,074,444 | 119,380 | (1,284,196) | |||||||||||||
Issue of treasury shares to employees | (7,038) | 7,038 | |||||||||||||||
Minimum mandatory dividends | (180,280) | (180,280) | (180,280) | ||||||||||||||
Balances, end of year at Dec. 31, 2017 | 6,241,753 | 396,006 | 14,237 | (15,442) | (241,088) | 406,898 | 2,281,318 | 234,600 | 2,298,328 | 11,616,611 | 11,616,611 | ||||||
Total comprehensive income (loss) | |||||||||||||||||
Net income (loss) for the year | 319,693 | 319,693 | R$ 121 | 319,814 | |||||||||||||
Actuarial gain (loss) net of deferred taxes | (45,741) | (45,741) | (45,741) | ||||||||||||||
Exchange variation on conversion of financial statements and on foreign investments | 137,546 | 137,546 | 137,546 | ||||||||||||||
Transactions with shareholders: | |||||||||||||||||
Stock options granted | 5,170 | 5,170 | 5,170 | ||||||||||||||
Sale of treasury shares to meet stock-based compensation plan | 8,516 | 8,516 | 8,516 | ||||||||||||||
Non-controlling interest arising on business combination | 13,807 | 13,807 | |||||||||||||||
Reversal of time-barred dividends | 66 | 66 | 66 | ||||||||||||||
Unclaimed dividends forfeited | (596,534) | R$ 596534 | |||||||||||||||
Internal changes in equity: | |||||||||||||||||
Realization of deemed cost, net of taxes | (68,424) | 68,424 | |||||||||||||||
Stock options granted | (14,307) | 14,307 | |||||||||||||||
Reserve for tax incentives Sudene-reduction of 75% | 288,557 | (288,557) | |||||||||||||||
Constitution of special statutory reserve | 7,882 | (7,882) | |||||||||||||||
Constitution of the legal reserve | 15,917 | (15,917) | |||||||||||||||
Constitution of a reserve for capital increase | 70,940 | (70,940) | |||||||||||||||
Dividends distributed | (29,976) | (29,976) | (29,976) | ||||||||||||||
Minimum mandatory dividends | (3,466) | (3,466) | (3,466) | ||||||||||||||
Unrealized net revenue of 2017 | 4,880 | 62 | (1,355) | 3,588 | 3,588 | ||||||||||||
Balances, end of year at Dec. 31, 2018 | 6,241,753 | 684,563 | 5,100 | (15,442) | (218,265) | 422,815 | 1,730,629 | 242,612 | 596,534 | 2,321,708 | 12,012,007 | 13,928 | 12,025,935 | ||||
Total comprehensive income (loss) | |||||||||||||||||
Net income (loss) for the year | (2,817,518) | (2,817,518) | 2,776 | (2,814,742) | |||||||||||||
Other comprehensive income for the year | (47,449) | (47,449) | (47,449) | ||||||||||||||
Exchange variation on conversion of financial statements and on foreign investments | 45,819 | ||||||||||||||||
Transactions with shareholders: | |||||||||||||||||
Loss absorption | R$ 684563 | (105,671) | R$ 1730629 | R$ 242612 | 2,763,475 | ||||||||||||
Share capital increase (note 1.1.1.1 and 22.1) | 3,027,528 | 3,027,528 | 3,027,528 | ||||||||||||||
Share issuance costs | R$ 33735 | R$ 15442 | (18,293) | (18,293) | |||||||||||||
Stock options granted | 879 | 879 | 879 | ||||||||||||||
Non-controlling interest arising on business combination | 98,635 | 98,635 | |||||||||||||||
Unclaimed dividends forfeited | 1,125 | 1,125 | 1,125 | ||||||||||||||
Dividends paid (note 22.2) | R$ 596534 | (596,534) | (596,534) | ||||||||||||||
Internal changes in equity: | |||||||||||||||||
Realization of deemed cost, net of taxes | (52,918) | R$ 52918 | |||||||||||||||
Issue of common shares related to business combination (note 1.1.1.1) | R$ 6410885 | 6,410,885 | 6,410,885 | ||||||||||||||
Proposed dividends from management | R$ 684563 | R$ 684563 | |||||||||||||||
Balances, end of year at Dec. 31, 2019 | R$ 9269281 | R$ 33735 | R$ 5979 | R$ 6410885 | R$ 218265 | R$ 317144 | R$ 2221341 | R$ 17972630 | R$ 115339 | R$ 18087969 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||
Tax incentive, reduction of calculated income tax (as a percent) | 75.00% | 75.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flow from operating activities | |||
Net income (loss) for the year | R$ 2814742 | R$ 319814 | R$ 1820994 |
Adjustment to | |||
Depreciation, depletion and amortization (note 30) | 4,286,730 | 1,563,223 | 1,402,778 |
Amortization of fair value adjustment on business combination with Fibria/Facepa/Ibema (note 30) | 3,651,005 | ||
Amortization of right of use (note 30) | 154,217 | ||
Amortization of fair value adjustment on business combination with Fibria classified at financial results (note 27) | (38,960) | ||
Interest expense on lease liabilities | 226,103 | ||
Results from sale, disposals and provision for losses (impairment) of property, plant and equipment and biological assets, net (note 30) | 77,930 | 13,580 | 37,702 |
Income from associates and joint ventures (note 14.2) | (31,993) | (7,576) | (5,872) |
Exchange rate and monetary variations, net (note 27) | 1,964,927 | 1,446,207 | 2,273 |
Interest expenses with financing and loans, debentures and debentures, net (note 27) | 3,358,806 | 872,208 | 852,030 |
Accrual of interest on marketable securities | (392,018) | (127,037) | (24,234) |
Amortization of fundraising costs (notes 18.2) | 185,807 | 44,499 | 49,517 |
Derivative (gains) losses, net (note 27) | 1,075,252 | 2,735,196 | (73,271) |
Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) (note 9 and 20.3) | (128,115) | ||
Fair value adjustment of biological assets (note 12 and 30) | (185,399) | 129,187 | (192,504) |
Deferred income tax and social contribution expenses (note 12.1) | (1,528,571) | (741,084) | 241,869 |
Interest on employee benefits (note 20.2) | 44,496 | 35,920 | 38,022 |
Provision/(reversal) for judicial liabilities | 26,807 | 13,285 | 35,645 |
Allowance for doubtful accounts, net (note 7.3) | (12,286) | 6,450 | 32,397 |
Provision for (reversal of) inventory losses and write-offs | (25,096) | 26,653 | |
Partial write-off of intangible assets (8.1) | 107,269 | 18,845 | |
Provision for loss of ICMS credits, net | 129,283 | ||
Other | (56,517) | 235,081 | 60,267 |
Decrease (increase) in assets | |||
Trade accounts receivables | 991,476 | (186,026) | (726,808) |
Inventories | 873,420 | (622,151) | 115,493 |
Recoverable taxes | 241,934 | 50,960 | 8,702 |
Other assets | (26,478) | (12,720) | 414,818 |
Increase (decrease) in liabilities | |||
Trade accounts payable | (1,555,697) | 1,473 | 63,236 |
Tax payable | 240,871 | 432,603 | 265,698 |
Payroll and charges | (234,948) | (100,124) | (135,053) |
Other liabilities | (62,294) | 225,616 | (133,819) |
Cash provided by operations, net | 10,568,315 | 6,303,488 | 4,195,378 |
Payment of interest with financing, loans and debentures | (2,977,957) | (806,758) | (1,006,869) |
Interest received from marketable securities | 377,804 | ||
Payment of income taxes | (391,725) | (327,282) | (121,177) |
Net cash provided by operating activities | 7,576,437 | 5,169,448 | 3,067,332 |
Cash flows from investing activities | |||
Additions to property, plant and equipment (note 15) | (2,001,674) | (1,251,486) | (859,880) |
Additions to intangible assets (note 16) | (17,715) | (7,217) | (8,054) |
Additions to biological assets (note 13) | (2,849,038) | (1,164,995) | (912,368) |
Proceeds from sales of assets | 198,644 | 95,481 | 84,694 |
Increase of capital in subsidiaries and associates | (45,856) | ||
Marketable securities, net | 19,378,893 | (19,340,022) | 687,274 |
Advance for acquisition of wood from operations with development | (355,447) | 1,402 | 527 |
Acquisition of subsidiaries, net cash (note 1.2.1.2) | (26,002,540) | (294,473) | |
Other investments | (286) | ||
Net cash used in investing activities | (11,695,019) | (21,961,310) | (1,007,807) |
Cash flow from financing activities | |||
Proceeds from loans, financing and debentures (note 18.2) | 18,993,837 | 25,645,822 | 2,561,954 |
Payment of derivative transactions (note 4.5.4) | (135,449) | (1,586,415) | 39,695 |
Payment of loans, financing and debentures (note 18.2) | (13,994,708) | (3,738,577) | (4,533,736) |
Payment of dividends | (606,632) | (210,205) | (570,568) |
Payment of leases (note 19.2) | (645,071) | ||
Sale of treasury shares to meet share-based compensation plan | (879) | 8,514 | 8,514 |
Liabilities for assets acquisitions and subsidiaries | (479,480) | (84,090) | (117,865) |
Repurchase of treasury shares | (83) | ||
Other financing | 10,191 | ||
Cash provided (used) by financing activities, net | 3,141,809 | 20,035,049 | (2,612,089) |
Exchange variation on cash and cash equivalents | (161,553) | 67,433 | 14,700 |
Increase (reduction) in cash and cash equivalents | (1,138,326) | 3,310,620 | (537,864) |
Cash and cash equivalents at the beginning for the year | 4,387,453 | 1,076,833 | 1,614,697 |
Cash and cash equivalents at the end for the year | 3,249,127 | 4,387,453 | 1,076,833 |
Statement of the increase (reduction) in cash and cash equivalents | R$ 1138326 | R$ 3310620 | R$ 537864 |
COMPANYS OPERATIONS
COMPANYS OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
COMPANYS OPERATIONS | |
COMPANYS OPERATIONS | 1. Suzano S.A., (current corporate name of Suzano Papel e Celulose S.A., as approved by Extraordinary General Meeting hold on April 1 st , 2019), 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”). After conclusion of business combination with Fibria Celulose S.A. (“Fibria”), on January 14, 2019, the Company now 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, State). These units produce hardwood pulp from eucalyptus, paper (coated paper, paperboard, uncoated paper and cut size paper) and packages of sanitary paper (consumer goods - tissue) to serve the domestic and foreign markets. Pulp and paper are sold in the foreign market directly by Suzano, as well as through its subsidiaries in Argentina, the United States of America, Switzerland and Austria and its sales offices in China. The Company's corporate purpose also includes the commercial operation of eucalyptus forest for its own use, the operation of port terminals, and the holding of interest, as partner or shareholder, in any other company or project, and the generation and sale of electricity. The Company is controlled by Suzano Holding S.A., through a Voting Agreement whereby it holds 45.85% of the common shares of its share capital. These consolidated financial statements was approved by the Board of Directors on March 4, 2020. 1.1. The Company holds equity interest in the following entities: % equity interest Type of Accounting December 31, December 31, Entity Main activity Country investment method 2019 2018 AGFA – Com. Adm. e Participações Ltda. Holding Brazil Direct Consolidated 100 % 100 % Asapir Produção Florestal e Comércio Ltda. (1) Eucalyptus cultivation Brazil Direct Consolidated 100 % 50 % CelluForce Inc. Nanocrystalline pulp research and development Canada Direct Fair value through other comprehensive income 8.3 % Comercial e Agrícola Paineiras Ltda. Lease of reforestation land Brazil Direct Consolidated 100 % 100 % Ensyn Corporation Bio fuel research and development United States of America Direct Equity 25.3 % Eucalipto Holding S.A. (2) Holding Brazil Direct Consolidated 100 % Facepa - Fábrica de Papel da Amazônia S.A. Industrialization and commercialization of tissue paper Brazil Direct/Indirect Consolidated 92.8 % 92.8 % Fibria Celulose (USA) Inc. Business office United States of America Direct Consolidated 100 % Fibria Terminal de Celulose de Santos SPE S.A. Port operation Brazil Direct Consolidated 100 % Fibria Overseas Finance Ltd. Financial fundraising Cayman Island Direct Consolidated 100 % Fibria Overseas Holding KFT. (3) Consolidated % Fibria Terminais Portuários S.A. Port operation Brazil Direct Consolidated 100 % FuturaGene AgriDev Xinjiang Company Ltd. Biotechnology research and development China Indirect Consolidated 100 % 100 % FuturaGene Biotechnology Shangai Company Ltd. Biotechnology research and development China Indirect Consolidated 100 % 100 % FuturaGene Brasil Tecnologia Ltda. Biotechnology research and development Brazil Direct/Indirect Consolidated 100 % 100 % FuturaGene Delaware Inc. Biotechnology research and development United States of America Indirect Consolidated 100 % 100 % FuturaGene Hong Kong Ltd. Biotechnology research and development Hong Kong Indirect Consolidated 100 % 100 % FuturaGene Inc. Biotechnology research and development United States of America Indirect Consolidated 100 % 100 % FuturaGene Israel Ltd. Biotechnology research and development Israel Indirect Consolidated 100 % 100 % FuturaGene Ltd. Biotechnology research and development England Indirect Consolidated 100 % 100 % F&E Tecnologia do Brasil S.A. Biofuel production, except alcohol Brazil Indirect Consolidated F&E Tecnologies LLC Biofuel production, except alcohol United States of America Direct Equity 50 % Gansu FuturaGene Biotech Co. Ltd. Biotechnology research and development China Indirect Consolidated 100 % 100 % Ibema Companhia Brasileira de Papel Industrialization and commercialization of paperboard Brazil Direct Joint venture 49.9 % 49.9 % Itacel - Terminal de Celulose de Itaqui S.A. Port operation Brazil Indirect Consolidated 100 % 100 % Maxcel Empreendimentos e Participações S.A. Holding Brazil Direct Consolidated 100 % 100 % Mucuri Energética S.A. Power generation and distribution Brazil Direct Consolidated 100 % 100 % Ondurman Empreendimentos Imobiliários Ltda. Lease of reforestation land Brazil Direct/Indirect Consolidated 100 % 100 % Paineiras Logística e Transporte Ltda. Road freight transport Brazil Direct /Indirect Consolidated 100 % 100 % Portocel - Terminal Espec. Barra do Riacho S.A. Port operation Brazil Direct Consolidated 51 % Projetos Especiais e Investimentos Ltda. Commercialization of equipment and parts Brazil Direct Consolidated 100 % Rio Verde Participações e Propriedades Rurais S.A. (3) Forest assets Brazil Indirect Consolidated 100 % Spinnova Oy Research and development of sustainable raw materials (wood) for the textile industry Finland Direct Equity 24.06 % Stenfar S.A. Indl. Coml. Imp. Y. Exp. Commercialization of computer paper and materials Argentine Direct /Indirect Consolidated 100 % 100 % Sun Paper and Board Limited (4) Shared expenses Consolidated 100 % 100 % Suzano Áustria GmbH Business office Austria Direct Consolidated 100 % 100 % Suzano Canada Inc. (5) Lignin research and development Canada Direct Consolidated 100 % Suzano International Trade GmbH (6) Business office Austria Direct Consolidated 100 % Suzano Luxembourg (7) Financial fundraising Luxembourg Direct Consolidated 100 % 100 % Suzano Participações do Brasil Ltda (8) Holding Brazil Direct Consolidated 100 % Suzano Pulp and Paper America Inc. Business office United States of America Direct Consolidated 100 % 100 % Suzano Pulp and Paper Europe S.A. Business office Switzerland Direct Consolidated 100 % 100 % Suzano Trading Ltd. Business office Cayman Island Direct Consolidated 100 % 100 % Suzano Trading International KFT (9) Business office Hungary Direct Consolidated 100 % Veracel Celulose S.A. (10) Industrialization, commercialization and exportation of pulp Brazil Joint operation Consolidated 50 % 1) The full control was acquired arising from the business combination with Fibria. 2) Company merged on January 2, 2019, as mentioned in note 1.2.1.1. 3) Company established as a result of corporate restructuring on December 12, 2019. 4) Company dissolution on June 2, 2019. 5) Corporate name changed on September 30, 2019, former Fibria Innovations Inc. 6) Corporate name changed on August 28, 2019, former Fibria International Trade GmbH. 7) Company dissolution on September 17, 2019. 8) Corporate name changed on December 06, 2019, former F&E Participações do Brasil Ltda. 9) Corporate name changed on August 9, 2019, former Fibria Trading International. 10) Joint operation with Stora Enso, a company located in Amsterdan. 1.2. 1.2.1. On January 3, 2019, acquisition date of control by Suzano, after all fulfilled conditions for the conclusion of business combination and shareholding base, Fibria’s shares were exchanged for Suzano’s shares and on January 14, 2019, Suzano concluded the corporate reorganization process, following the terms of the Agreement signed by both entities on March 15, 2018. The transferred consideration by Suzano for acquisition of control of Fibria, defined in terms of the Agreement, was as follows: 1.2.1.1. On January 2, 2019, according to Notice to Shareholders, the exchange ratio of the common shares issued by Eucalipto Holding S.A. (“Holding”) held by Fibria’s shareholders for shares issued by Suzano was adjusted from 0.4611 to 0.4613, being the exchange ratio of 0.4613 considered as final. The adjustment in the exchange ratio, compared to the originally announced, was due to (i) a change in the total number of shares issued by Fibria ex-treasury and disregarding the shares resulting from the vesting of option plans between those in the Protocol and Justification and that date of 553,080,611 shares for 553,733,881 shares and (ii) alteration of the number of shares issued by Suzano ex-treasury and disregarding the shares resulting from the vesting of option plans between that contained in the Protocol and Justification and that present date of 1,091,984,141 shares to 1,093,784,141 shares. As consequence of this adjustment, (i) Suzano issued, as a result of the merger of the Holding, 255,437,439 new common shares in the market value of R$36.95, totaling amount of R$9,438,413, of which R$3,027,528 was recognized as capital increase and R$6,410,885, as capital reserve and (ii) the amount attributed to Suzano's common share to calculate the capital gain, as disclosed in the Notice of Shareholders on November 29, 2018, increased from R$15.38 attributed to 0.4611 common share for R$15.39 attributed to 0.4613 common share of Suzano. 1.2.1.2. On January 10, 2019, by means of the Notice to Shareholders, the Company communicated the final value of the Adjusted Cash Installment, corresponding to the redemption value of each Holding's redeemable preferred share, originally equivalent to R$52.50, (i) reduced by the amount of dividends declared by Fibria on December 3, 2018 and paid in Brazil on December 12, 2018 in the amount of R$5.03 per share issued by Fibria (ii) plus R$2.73, corresponding to the variation of the average daily rate of Brazilian interbank deposits expressed as an annual percentage, based on 252 business days, measured and disclosed daily by B3 ("DI Rate"), between March 15, 2018 and the Expiration Date of the Transaction including January 10, 2019 (including) and January 14, 2019 (including), the DI Rate was estimated at 6.40% per annual, with a total and final amount of R$50.20 per share, making up the final amount of the Adjusted Cash Amount of R$27,797,441. The amounts mentioned above are gross, not considering any tax impacts on the payment to Fibria Resident or Non-Resident Shareholders, which are detailed in the Notice to Shareholders disclosed on November 29, 2018. Suzano performed a valuation analysis of the fair value of the assets acquired and liabilities assumed of Fibria and, using the total transferred consideration for the Merger, and allocated for such assets and liabilities. The following table summarizes the final purchase price allocation based on the appraisal report prepared by an independent and specialized entity: Cash consideration 27,797,441 Issuance of shares by Suzano 9,438,413 Total consideration 37,235,854 Book value of Fibria's shareholders' equity 14,149,004 Write-off of the book value of existing goodwill, net of the deferred income taxes (3,495,077) Mandatory minimum dividends (eliminated from the balance sheet at the date of acquisition) 724,829 Book value of Fibria's shareholders' equity, net of goodwill 11,378,756 Fair value adjustment on business combination with Fibria (assets and liabilities): Inventories 2,178,903 (1) Property, plant and equipment 9,362,315 (2) Customer relationship 9,030,779 (3) Port assets 749,060 (4) Contingent liabilities (2,970,546) (5) Loans and financing (59,921) (6) Taxes recoverable (235,843) (7) Other assets and liabilities, net 451,624 (8) Deferred taxes, net (546,324) (9) Total impact of fair value 17,960,047 Goodwill on the expectation of future profitability 7,897,051 (10) 1) Measured considering the balance of finished products based on selling price, net of selling expenses and an accepted margin based on the results achieved in 2018. 2) Determined based on the analysis of market data on comparable transactions and cost quantification, based on the estimate of replacement or replacement value of the assets. 3) In order to determine the fair value adjustment in the customer portfolio, the income approach and the method were used to measure the present value of the income that will be generated during the remaining useful life of the asset. Considering the 5-year history of Fibria's sales data and the churn rate that measures customer satisfaction and customer permanence in the portfolio, the adjustment was measured using estimated discounted cash flows. The churn rate and the discounted cash flows were considered as significant assumptions to determine the fair value of the customer portfolio. 4) Fibria has concession contracts and port assets to assist in port operations in Brazil. For fair value measurement of these assets was considered the income approach, the Multi Period Excess Earnings Method (“MPEEM”) that measures the present value of the income that will be generated during the remaining useful life of the asset and method of direct cost differential. 5) In the business combination, for the contingencies fair value measurement, whose chances of loss were classified as possible and remote, Fibria's Management and its external and independent advisors were considered for their fair values, whose amounts were measured based on the analyzes of Company’s external lawyers. Thus, the estimated and assumptions with respect to the probability of loss of the possible and remote lawsuit, for the fair value calculation of contingent liabilities assumed were considered as significant assumptions to determine the fair value of the contingent liabilities. 6) The adjustment to fair value of loans and financing was measured based on the fair value of the Bonds, based on the quotation of the security in the secondary market, and the adjustment to present value considering the market rate at the base date on December 31, 2018. 7) For the measurement of the fair value of the taxes to be recovered, the amount to be recovered, discounted to the present value considering the expected Selic rate for the tax period, was considered. 8) In other net assets and liabilities, including supply contracts, accounts receivable and advances to suppliers, the income evaluation methodology, the present value and the direct cost differential were used. 9) Deferred asset on income tax on fair value adjustments of assets of Veracel and Portocel. For the remaining fair value, we did not recognize deferred liability on income taxes liabilities due to Fibria’s Legal Merger in April 2019. 10) Goodwill is attributable to the strong market position and expected future profitability of Fibria in negotiations in the eucalyptus pulp market. For more information on the business combination refer note 14.4. 1.2.2. On April 1st, 2019, the Company approved in the Extraordinary Shareholders Meeting of Suzano the legal merger of Fibria, a wholly-owned subsidiary of Suzano, with the transfer of all its equity to Suzano and its consequent winding up ("Legal Merger"), provided that the share capital of the Company not changed due to the Legal Merger. Because of the Legal Merger, the Suzano succeeded Fibria in all its rights and obligations. The following table summarizes, the main items balance sheet of Fibria as of March 31, 2019. ASSETS LIABILITIES CURRENT CURRENT Cash and cash equivalents 29,086 Loans and financing 816,180 Marketable securities 2,734,027 Lease liabilities 420,241 Derivative financial instruments 256,675 Trade accounts payable 955,210 Trade accounts receivable 3,572,059 Derivative financial instruments 254,444 Inventories 1,714,560 Payroll and charges 104,246 Recoverable taxes 768,439 Taxes payable 36,057 Other assets 161,238 Related parties 1,179,254 9,236,084 Dividends payable 4,015 Other liabilities 946,099 4,715,746 NON CURRENT NON CURRENT Marketable securities 175,559 Loans and financing 8,139,390 Derivative financial instruments 723,084 Derivative financial instruments 678,833 Recoverable taxes 546,234 Lease liabilities 1,972,531 Deferred taxes 1,364,363 Related parties 16,305,560 Advances to suppliers 696,767 Employee benefits 144,557 Judicial deposits 190,533 Provision for judicial liabilities 190,698 Other assets 100,877 Other liabilities 175,934 Biological assets 4,355,102 27,607,503 Investments 9,481,900 Property, plant and equipment 14,633,114 TOTAL LIABILITIES 32,323,249 Right of use 2,301,427 Intangible assets 118,920 Equity 11,600,715 34,687,880 TOTAL EQUITY AND LIABILITIES 43,923,964 TOTAL ASSETS 43,923,964 |
BASIS OF PREPARATION AND PRESEN
BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS | |
BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS | 2. BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS The Company’s consolidated financial statements are prepared in accordance with and in compliance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and disclose all the applicable significant information related to the financial statements, which is consistent with the information utilized by Management in the performance of its duties. The Company’s consolidated financial statements are expressed in thousands of Brazilian Reais (“R$”), as well as the amounts of other currencies disclosed in the financial statements, when applicable, were also expressed in thousands, unless otherwise stated. The preparation of consolidated financial statements 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. The accounting practices requiring a higher level of judgment and which are more complex, as well as areas in which assumptions and estimates are significant, are disclosed in note 3.2.34. The consolidated financial statements were prepared on the historical cost basis, except for the following material items recognized: (i) (ii) (iii) The main accounting polices applied in the preparation of these consolidated financial statements are presented in note 3. The consolidated financial statements were prepared under the going concern assumption. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements were prepared in accordance with the accounting polices consistent with those used in the preparation of the consolidated financial statements for the year ended December 31, 2018, except for the application of the new accounting pronouncements and new accounting policies as of January 1, 2019, as described in the Note 3.1. The consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company and Fibria for the year ended December 31, 2018, considering that its purpose is to provide an update on the activities, events and significant circumstances in relation to those disclosed in the consolidated financial statements. The accounting policies have been consistently applied to all consolidated companies. 3.1. 3.1.1. The Company adopted IFRS 16 as of January 1, 2019. This standard determines that lessees must recognize future liabilities in their liabilities and their right to use the leased asset for all lease agreements, with exemption allowed to short-term or low-value contracts. Short-term or low-value contracts for the exemption of the standard refers to contracts where the individual value of the assets is lower than U.S.$5 and maturity date is before 12 months, represented, mainly, by equipment of technology and vehicles. The Company adopted the standard using a modified retrospective approach that does not require the restatement of the comparative balances. In adopting IFRS 16, the Company recognized the gross PIS/COFINS lease liabilities in relation to the agreements that meet the definition of lease, whose liabilities were measured at the present value of the remaining lease payments, discounted based on the incremental loan nominal rate. Assets associated with the right of use were measured at the amount equal to the lease liability on January 1st, 2019, with no impact on retained earnings. The Company used the following practical expedients allowed by the standard: (i) (ii) (iii) (iv) (v) The effects of adopting this new standard are set forth in note 19. 3.1.2. The interpretation is applicable when there are uncertainties as to the acceptance of the treatment by the Fiscal Authority. If acceptance is not likely, the values of tax assets and liabilities should be adjusted to reflect the best resolution of the uncertainty. The Company has evaluated the changes introduced by this new standard and based on the analysis carried out, did not identify material impacts on its consolidated financial statements, or modify the recognition and measurement of uncertainties about tax treatment of income. 3.1.3. Fair value amortization of assets and liabilities are classified in cost of goods sold, selling, general and administrative expenses, other operating income (expenses) net and financial result, according to the realization of the items that originated them. 3.1.4. The Company made certain reclassifications on its statements of cash flows regarding the year ended December 31, 2018 and 2017, substantially in operating activities, for a better comparison with the Statements of cash flows for the year ended December 31, 2019. 3.1.5. Ensyn and Spinnova investments were previously classified as financial investment measured through other comprehensive income. However, respectively in the second and third quarter of 2019, based on the shareholders’ agreement and recent capital contribution to Ensyn and Spinnova, the Company increased their stake in these investments and obtained significant influence. Therefore, respectively, as from the second and third quarter of 2019, the Company has recorded their investments prospectively under the equity method using the fair value as deemed cost’ method, with the consequent presentation of the investment under “Investments in subsidiaries, affiliates, joint operations and joint ventures” and no longer under “Other investments”, as disclosed in note 14.2. In relation to Ensyn, the Company identified and recorded a goodwill based on expected future profitability in the amount of U.S.$40,049 (equivalent to R$154,578), arising from the difference of the consideration paid of U.S.$43,000 (equivalent to R$165,928) and the carrying amount of the net assets of the investee of U.S.$2,941 (equivalent to R$11,350). In relation to Spinnova, the Company identified a bargain purchase in this transaction in the amount of EUR6,748 (equivalent to R$32,705), arising from the difference of the consideration paid of EUR12,500 (equivalent to R$55,928) and the carrying amount of the net assets of the investee of EUR19,248 (equivalent to R$87,915). 3.1.6. The Company's biological assets are eucalyptus forests exclusively from renewable plantations and intended for the production process of pulp and paper, measured at fair value less estimated cost to sell at the time of harvest. Fair value measurement is performed on a semiannually basis, since Management understand that its interval is enough, so that, there is no significant gap in the fair value of biological assets recorded in the consolidated financial statements and uses the discounted cash flow method according to the projected productivity cycle of such assets. Considering that Suzano and Fibria used different assumptions to the biological assets fair value, in the first measurement after business combination, the Company reviewed the assumption for “effective planting area”, keeping the immature forest (up to 2 years from the date of planting) at historical cost. As a result of the Management’s considers that during this period, the historical cost of biological assets approximates to its fair value. Additionally, the purpose of this change is to reflect the experience acquired in the biological assets measurements process and the alignment of calculation approach with the Company’s forest management, which perform continuous forest inventories for the purpose of estimating the wood stock or future production forecast, represented by the average annual increment (“IMA”), from the 3rd year of planting. Considering the fact that in the first two years of forest formation, the historical cost approximates to its fair value, as described above, this assumption alignment did not generate significant impacts on the Company's financial statements. There are no changes in the remaining assumptions. The gain or loss on the variation of the fair value of the biological assets is recognized under other operating income (expenses), net. The value of the depletion is measured based on the amount of the biological asset depleted (harvested). Significant assumptions applied in determining on the biological assets of fair value measurements are disclosed in Note 13. 3.1.7. This pronouncement was amended and clarifies that the income tax consequences of dividends on financial instruments classified as equity should be recognized according to where the past transactions or events that generated distributable profits were recognized. These requirements apply to all income tax consequences of dividends. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.1.8. This pronouncement was amended and clarifies that if a specific borrowing remains outstanding after the related qualifying asset is ready for its intended use or sale, it becomes part of general borrowings. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.1.9. This pronouncement was amended and clarifies that obtaining control of a business that is a joint operation, is a business combination achieved in stages. The acquirer should re-measure its previously held interest the joint operation at fair value at the acquisition date. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.1.10. This pronouncement was amended and clarifies that the party obtaining joint control of a business that is a joint operation should not re-measure its previously held interest in the joint operation. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.1.11. This pronouncement was amended and clarifies that, when occur an event of amendment, curtailment or settlement related to a defined benefit, the entity must update the previously used and remeasured the current service cost and the net interest for the remaining period, after amendments. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.1.12. IFRS 9 - Financial Instruments excluded from its scope equity interests in associates and joint ventures, which are accounted for using the equity method in accordance with IAS 28. The amendment to IAS 28 clarified that the aforementioned scope exclusion in IFRS 9 applies only to investment elements that are accounted for using the equity method. Accordingly, the accounting of long-term financial instruments with an associate or joint venture which, in substance, is part of the net investment in these investees, but for which the equity method does not apply, must follow the requirements of the IFRS 9. The Company assessed the content of this pronouncement and did not identify any material impacts. 3.2. 3.2.1. The consolidated financial statements were prepared based on the information of Suzano and its subsidiaries in the year ended December 31, 2019, as well as in accordance with consistent accounting practices and policies, except to Futuragene PLC, which period end is November 31, 2019, however, has no material impact in the consolidated financial statements, and if there is any significant event up to December 31, 2019, it is adjusted in the consolidated financial statement. The Company consolidates all subsidiaries over which it has direct or indirect control, that is, when it is exposed or has rights to variable returns on its investment with the investee and has the capacity and ability to direct the relevant activities of the investee and has the ability to direct the investee's relevant activities. Additionally, all transactions and balances between Suzano and its subsidiaries, associates and joint ventures are eliminated in the consolidated financial statements, as well as unrealized gains or losses arising from these transactions, net of tax effects. Non-controlling interest is highlighted. The consolidated financial statement of the balance sheet, statements of income (loss), statements of comprehensive income (loss), statements of changes in equity and statements of cash flows, as well the corresponding notes to the financial information regarding to the year ended December 31, 2019, included on this consolidated financial statements are not comparable with the consolidated financial statement as at December 31, 2018 due to the conclusion of the business combination of Fibria in January 2019, as disclosed in note 1.2.1 above. During the period from January 1, 2019 to March 31, 2019 Suzano consolidated Fibria's interim accounting information. However, as from April 1, 2019, Fibria was merged into Suzano, as Note 1.2.2. 3.2.2. These all entities over which the Company has the power to govern the financial and operating policies of the entity, generally through a majority voting rights. The Company controls an entity when the Company is exposed to, or has rights to, variable returns on its investment with the investee and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to Fibria and de-consolidated from the date that control ceases 3.2.3. These are all entities in which the Company maintains the contractually established control over its economic activity and exists only when the strategic, financial and operational decisions regarding the activity require the unanimous consent of the parties sharing the control. In the consolidated financial statements, the balance of assets, liabilities, revenues and expenses are recognized proportionally to the interest in joint operation. 3.2.4. These are all entities are initially recognized at cost and adjusted thereafter for the equity method, being increased or reduced from its interest in the investee's income after the acquisition date. In the investments in associates, the Company must have significant influence, which is the power to participate in the financial and operating policy decisions of the investee, without having its control or joint control of those policies. In investments in joint ventures there is a contractually agreed sharing of control through an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. In the consolidated financial statements, the balance of assets, liabilities, revenues and expenses are eliminated, as well as unrealized gains and losses and investments in these entities and their respective equity accounting results. In relation to associates Ensyn and Spinnova, which period end is November 30, 2019 for their financial information, they have no material impact in the consolidated financial statement, and if there is any significant event up to December 31, 2019, it is adjusted in the consolidated financial statement. 3.2.5. The Company defined as functional and presentation currencies, Brazilian Real (“Real”, “Reais” or “R$”). The individual financial statements of each foreign subsidiaries included in the consolidated financial statement, are prepared in accordance with local currency of the subsidiary operates and translated into Company’s functional and presentation currency. 3.2.5.1. 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 have lost autonomy and become 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, which will only be changed as from January 1, 2020, following the same criteria described in note 3.2.5.2: (i) (ii) (iii) 3.2.5.2. These are translated using the following criteria: (i) (ii) (iii) (iv) 3.2.6. The wholly-owned Stenfar, based in Argentine, is subject to the requirements of IAS 29- Financial Reporting in Hyperinflationary Economies, considering that the main country of this entity has been classified as hyperinflationary economy since 2018. Non-monetary items and income statement balances were restated to reflect the terms of the measuring unit current at the end of the reporting exercise. The balances were calculated by applying the changes on the index from the initial recognition date to the reporting date. The translation of the balance sheet and income statement balances into the reporting currency Brazilian Reais were based on the closing rate of the reporting period. 3.2.7. These are accounted for using the acquisition method when control is transferred to acquirer. The cost of an acquisition is the sum of the consideration paid, evaluated based on the fair value at acquisition date, and the amount of any non-controlling interests in the acquire. For each business combination, the Company recognizes any non-controlling interest in the acquire either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The costs directly attributable to the acquisition are recorded as expense when incurred, except for costs related to the issuance of debt instruments or equity instruments, which are presented as debt reduction or equity, respectively. In a business combination, assets acquired and liabilities assumed are evaluate in order to classify and allocate them assessing the terms of the agreement, economic circumstances and other conditions at the acquisition date. Goodwill is initially measured as the excess of the consideration paid over the fair value of the net assets acquired. After initial recognition, goodwill is measured at cost, net of any accumulated impairment losses. For purposes of impairment testing, the goodwill recognized in a business combination, as from the acquisition date, is allocated to each of the Company’s cash generating units. Gains on an advantageous purchase are recognized immediately in the result. The borrowing costs are recorded in the income statement as incurred. Contingent liabilities related to tax, civil and labor classified in the acquired company as possible and remote risk is recognized by the acquirer. Transactions in the acquisition of shares with shared control over the net assets traded apply complementary guidance to IFRS 3 - Business Combination, IFRS 11 - and IAS 28 – Investments in Associates and Joint Ventures. Based on the equity method, investment is initially recognized at cost. The carrying amount of the investment is adjusted for recognition of changes in the Company's share in the acquirer's Shareholders' equity as of the acquisition date. Goodwill is segregated from carrying amount of the investment. Other intangible assets identified in the transaction shall be allocated in proportion to the interest acquired by the Company, by the difference between the carrying amounts recorded in the acquired entity and its fair value assets, which may be amortized. 3.2.8. An operating segment is a component of the Company that carries out business activities from which it can obtain revenues and incur expenses. The operating segments reflect how the Company’s management reviews financial information to make decisions. The Company’s management has identified reportable segments, which meet the quantitative and qualitative disclosure requirements. The segments identified for disclosure represent mainly sales channels. 3.2.9. Include cash on hand, bank deposits and highly liquid short-term investments with maturities, upon acquisition, of 90 days or less, which are readily convertible into known amounts of cash and subject to insignificant risk of change in value. The investments classified in this group, due to their nature, are measured at fair value through the profit or loss. 3.2.10. 3.2.10.1. Financial assets are classification based on the purpose for which the financial assets were acquired, as set forth below: (i) (ii) (iii) Regular purchases and sales of financial assets are recognized on the trade date, it means, the date on which the Company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred but only if Fibria has transferred substantially all risks and rewards of ownership. 3.2.10.1.1. Financial instruments measured at amortized cost Financial assets at amortized cost are financial assets held by the Company (i) in order to receive their contractual cash flow and not to sell to realization a profit or loss and (ii) whose contractual terms give rise, on specified dates, to cash flows that exclusively, payments of principal and interest on the principal amount outstanding. Any changes are recognized under financial income (expense) in income statement. It includes the balance of cash and cash equivalents, trade accounts receivable and other assets. 3.2.10.1.2. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income are financial assets held by the Company (i) either to receive their contractual cash flow as the for sale with realization of profit or loss and (ii) whose contractual terms give rise on specified dates, to cash flows constituting, exclusively, payments of principal and interest on the principal amount outstanding. In addition, investments in equity instruments where, on initial recognition, the Company elected to present subsequent changes in its fair value to other comprehensive income, are classified in this category. Any changes are recognized under net financial income (expense) in income statement, except for the fair value of investment in equity instruments, which are recognized in other comprehensive income. This category includes the balance of other investments (Note 14). 3.2.10.1.3. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are either designated in this category or not classified in any of the other categories. . Any changes are recognized under financial income (expense) in income statement for non-derivative financial instruments and for financial derivative instruments under income from derivative financial instruments. This category includes the balance of marketable securities, financial assets at fair value through profit or loss are the balance of derivative financial instruments, including embedded derivatives, stock options and other securities. 3.2.10.2. Settlement of financial instruments Financial assets and liabilities are settled and the net amount is recorded in the balance sheet when there is a (i) legally enforceable right to settle the recognized amounts and (ii) there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. 3.2.10.3. Impairment of financial assets 3.2.10.3.1. Financial instruments measured at amortized cost Annually, the Company assesses if there is evidence that a financial asset is impaired. A financial is impaired only if there is evidence of an impairment as a result of one or more events that occurred after the initial recognition of the asset and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated. The criteria that the Company uses to determine if there is evidence of an impairment loss include: (i) (ii) (iii) (iv) (v) (vi) The amount of an impairment loss is measured as the difference between the carrying amount of the asset and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate. If the financial asset is impaired the carrying amount of the asset is reduced and a loss is recognized in the income statement. In a subsequent measurement, if there is an improvement in the asset rating, such as an improvement in the debtor's credit rating, the reversal of the previously recognized impairment loss is recognized in the income statement. 3.2.10.3.2. Financial assets at fair value through other comprehensive income Annually, the Company evaluate if there is evidence that a financial asset is impaired. For such financial assets, a significant or prolonged decrease in the fair value of the security below its cost is an evidence that the assets are impaired. If any such evidence exists, impairment loss is measured by the difference between the acquisition cost and the current fair value, less any loss previously recognized in other comprehensive income, shall be recognized in the income statement. 3.2.11. Derivatives financial instruments are recognized at fair value on the date the derivative agreement is entered into and are subsequently remeasured at fair value. Changes in fair value are recorded in under result of derivative financial instruments in the income statement. Embedded derivatives in non-derivative main contracts are required to be separated when their risks and characteristics are not-closely related to those of main contracts and these are not measured at fair value through profit or loss. Non-option embedded derivatives are separated from the main contracts in accordance with its stated or implied substantive terms, so that they have zero fair value on initial recognition. 3.2.12. These are recorded at the invoiced amount, in the normal course of the Company´s business, adjusted to exchange rate variation when denominated in foreign currency and, if applicable, net of expected credit losses. The Company applies the aging-based provision matrix with the appropriate grouping of your portfolio. The Company adopts procedures and analysis to establish credit limits. The Company examines on a monthly basis the maturity of receivables and identifies those customers with overdue balances assessing the specific situation of each client including the risk of loss, the existence of contracted insurance, letters of credit, collateral and the customer’s financial situation. In the event of default, collection attempts are made, which include direct contact with customers and collection through third parties. Should these efforts prove unsuccessful, court measures are considered and credit expected loss is recognized. The notes are written-off from the credit expected loss when Management considers that they are not recoverable after taking all appropriate measures to collect them. 3.2.13. These are evaluated at average acquisition or formation cost of finished products, net of recoverable taxes, not exceeding their net realizable value. Finished products and work-in-process consist of raw materials, direct labor, production costs, freight, storage and general production expenses, which are related to the processes required to make the products available for sale. Imports in transit are presented at the cost incurred until the balance sheet date. The raw materials derived from biological assets are measured based on their fair value less cost to sell at the point of harvest and freight costs. Provisions for obsolescence, adjustments to net realizable value, impaired items and slow-moving inventories are recorded when necessary. Usual production losses are recorded and are an integral part of the production cost of the respective month, whereas abnormal losses, if any, are recorded directly as cost of sales. 3.2.14. These are measured at carrying amount or fair value less costs to sell, whichever is lower, and are not depreciated or amortized. Such items are only classified under this account when the sale is highly probable and they are available for immediate sale under their current conditions. 3.2.15. Stated at the cost of acquisition, formation, construction or dismantling, net of recoverable taxes. Such cost is deducted of accumulated depreciation and accumulated impairment losses, when incurred, at the highest of the value of use and sale, less cost to sell. The borrowing costs are capitalized as a component of construction in progress, pursuant to with IAS 23, considering the weighted average interest rate of the Company’s debt at the capitalization date. Depreciation is recognized based on the estimated economic useful life of each asset on a straight-line basis. The estimated useful life, residual values and depreciation methods are annually reviewed and the effects of any changes in estimates are accounted for prospectively. Land is not depreciated. The Company annually performs an analysis of impairment indicators of property, plant and equipment. An impairment for loss for property, plant and equipment, is only recognized if the related cash-generating unit is devalued. Such condition is also applied if the asset’s recoverable amount is less than it is carrying amount. The recoverable amount of asset or cash-generating unit is the highest of its value in use and its fair value less cost to sell. The cost of major renovations is capitalized if the future economic benefits exceed the performance standard initially estimated for the asset and are depreciated over the remaining useful life of the related asset. Repairs and maintenance are expensed when incurred. Gains and losses on disposals of property, plant and equipment are measured by comparing the proceeds with the book value and are recognized as other operating income a (expense), net at the disposal date. 3.2.16. These are measured at cost at the time they are initially recognized. The cost of intangible assets acquired in a business combination corresponds to the fair value at the acquisition date. After initial recognition, intangible assets are presented at cost less accumulated amortization and impairment losses, when applicable. The useful life of intangible assets is assessed as finite or indefinite. Intangible assets with a finite life are amortized over the economic useful life and reviewed for impairment whenever there is an indication that their carrying values may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at least at the end of each fiscal year. The amortization of intangible assets with a finite useful life is recognized in the statement of income as an expense related to its use and consistently with the economic useful life of the intangible asset. Intangible assets with indefinite useful lives are not amortized, but are tested annually for impairment losses, individually or at the level of the CGU. The allocation is made to the CGU or group of CGUs that represents the lowest level within the entity, in which the goodwill is monitored for management's internal purposes, and that has benefited from the business combination. The Company records in this subgroup mainly goodwill for expected future profitability (goodwill) and easement of passage. Such test involved the adoption of assumptions and judgments, disclosed in Note 16. 3.2.17. Income taxes comprise income tax and social contribution on net income, current and deferred. These taxes are recognized in the income statement, except to the extent that they are related to items recognized directly in equity. In this case, they are recognized in equity under the equity adjustment. The current charge is calculated based on the tax laws enacted in the countries in which the Company and its subsidiaries and affiliates operate and generate taxable income. Management periodically evaluates the positions assumed in the income tax returns with respect to situations in which the applicable tax regulations give rise to interpretations and establishes provisions, when appropriate, based on the amounts that must be paid to the tax authorities. Deferred tax and contribution liabilities are recognized on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred taxes and contributions are determined based on the rates in force on the balance sheet date and, which must be applied when they are realized or when they are settled. Deferred tax assets and contributions are recognized to the extent that it is probable that future taxable profit will be available to be used to offset temporary differences, based on projections of future results prepared and based on internal assumptions and future economic scenarios that may, therefore, undergo changes. Deferred income tax and social contribution are recognized on temporary differences arising from investments in subsidiaries and associates, except when the timing of the reversal of temporary differences is controlled by the Company, and if it is probable that the temporary difference will not be reversed in a foreseeable future. Deferred taxes and contributions, assets and liabilities, are presented at the net amount in the balance sheet when there is a legal right and the intention to offset them when calculating current taxes, generally related |
Financial Instruments and Risks
Financial Instruments and Risks Management | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Risks Management | |
Financial Instruments and Risks Management | 4. Financial Instruments and Risks Management 4.1. 4.1.1. As a result of its activities, the Company is exposed to several financial risks, the main factors considered by management are set forth below: (i) liquidity; (ii) credit; (iii) exchange rate; (iv) interest rate; (v) fluctuations of commodity prices; and (vi) capital. The Management is focused on generating consistent and sustainable results over time, however, arising from external risk factors, unintended level of volatility can influence the Company’s cash flows and income statement. The Company has policies and procedures for managing market risk which aims: (i) reduce, mitigate or transfer exposure aiming to protect the Company’s cash flows and assets against fluctuations of market prices of raw material and products, exchange rates and interest rates, price and adjustment index ("market risk") or other assets or instruments traded in liquid markets or not to which the value of the assets, liabilities and cash flows are exposed; (ii) establish limits and instruments with the purpose of allocating the Company's cash within acceptable credit risk exposure parameters of financial institutions; and (iii) optimize the process of hiring financial instruments for protection against exposure to risk, drawing on natural hedges and correlations between the prices of different assets and markets, avoiding any waste of funds used to hiring inefficient transactions. All financial transactions entered into by the Company aim to protect existing exposures, with the assumption of new risks prohibited, except those arising from its operating activities. Hedging instruments are hired exclusively for hedging purposes and are based on the following terms: (i) cash flow protection against currency mismatch; (ii) revenue flow protection for debt settlement and interest to fluctuation of interest rate and currencies; and (iii) fluctuation in pulp price and other risk factors. Treasury team is responsible for identification, evaluating and seeking protection against possible financial risk. Board of Directors approves the financial policies that establish the principles and guidance for global risk management, the areas involved in these activities, the use of derivative and non-derivative financial instruments and the allocation of cash surplus. The Company uses the most liquid financial instruments, and: (i) does not hired leveraged transactions or with other forms of embedded options that change its purpose of protection (hedge); (ii) does not have double indexed debt or other forms of implied options; and (iii) does not have any transaction that require margin deposits or other forms of collateral for counterparty credit risk. The Company does not adopt hedge accounting. Therefore, gains and losses from derivative operations are fully recognized in the statements of income, as disclosed in Note 27. 4.1.2. All transactions with financial instruments are recognized for accounting purposes and classified in the following categories: December 31, December 31, 2019 2018 Assets Amortized cost Cash and cash equivalents (Note 5) 3,249,127 4,387,453 Trade accounts receivable (Note 7) 3,035,817 2,537,058 Other assets 563,993 263,110 6,848,937 7,187,621 Fair value through other comprehensive income Other investments (Note 14) 20,048 — 20,048 — Fair value through profit or loss Derivative financial instruments (Note 4.6) 1,098,972 493,934 Marketable securities (Note 6) 6,330,334 21,098,565 7,429,306 21,592,499 14,298,290 28,780,120 Liabilities Amortized cost Loans, financing and debentures (Note 18.1) 63,684,326 35,737,509 Lease liabilities (Note 19.2) 3,984,070 — Liabilities for assets acquisitions and subsidiaries (Note 23) 541,615 992,512 Trade accounts payable (Note 17) 2,376,459 632,565 Other liabilities 578,061 404,655 71,164,531 37,767,241 Fair value through profit or loss Derivative financial instruments (Note 4.6) 2,917,913 1,636,700 2,917,913 1,636,700 74,082,444 39,403,941 4.1.3. The financial instruments are recognized at their contractual amounts. Derivative financial instrument agreements, used exclusively for hedging purposes, are measured at fair value. In order to determine the market values of financial instruments traded in public and liquid markets, the market closing prices were used at the balance sheet dates. The fair value of interest rate and indexes swaps is calculated as the present value of their future cash flows discounted at the current interest rates available for operations with similar remaining terms and maturities. This calculation is based on the quotations of B3 and ANBIMA for interest rate transactions in Brazilian Reais and the British Bankers Association and Bloomberg for London Interbank Offered Rate (“LIBOR”) rate transactions. The fair value of forward or forward exchange agreements is determined using the forward exchange rates prevailing at the balance sheet dates, in accordance with B3 prices. In order to determine the fair value of financial instruments traded in over-the-counter or unliquidated markets, a number of assumptions and methods based on normal market conditions and not for liquidation or forced sale, are used at each balance sheet date, including the use of option pricing models such as Garman-Kohlhagen, and estimates of discounted future cash flows. The fair value of agreements for the fixing of oil bunker prices is obtained based on the Platts index. The result of the trading of financial instruments is recognized at the closing or hiring dates, where the Company undertakes to buy or sell these instruments. The obligations arising from the hiring of financial instruments are eliminated from our financial statements only when these instruments expire or when the risks, obligations and rights arising there from are transferred. The estimated fair values of loans and financing are set forth below: Yield used December 31, December 31, to discount 2019 2018 Quoted in the secondary market In foreign currency Bonds U.S.$ 30,066,087 15,035,165 Estimated to present value In foreign currency Export credits ("Pre-payment") LIBOR U.S.$ 17,213,963 12,819,072 Export credits ("Finnvera") LIBOR U.S.$ 832,907 Export credits ("ACC/ACE") DI 1 575,521 1,732,088 In local currency BNP – Forest Financing DI 1 193,646 BNDES – TJLP DI 1 1,895,959 206,601 BNDES - TLP DI 1 535,812 BNDES – Fixed DI 1 113,979 348,827 BNDES – Selic ("Special Settlement and Custody System") DI 1 693,969 BNDES - Currency basket DI 1 54,420 169,243 CRA ("Agribusiness Receivables Certificate") DI 1 6,039,983 2,383,775 Debentures DI 1 5,534,691 4,721,603 FINAME ("Special Agency of Industrial Financing") DI 1 14,168 FINEP ("Financier of Studies and Projects") DI 1 5,138 NCE ("Export Credit Notes") DI 1 1,445,383 1,501,623 NCR ("Rural Credit Notes") DI 1 288,122 297,375 Export credits ("Pre-payment") DI 1 1,464,798 FDCO ("West Center Development Fund") DI 1 571,904 66,707,543 40,048,279 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. The Company’s guidance is to maintain a strong cash and marketable securities position to meet its financial and operating obligations. The amount kept 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. All derivatives financial instruments were in the over-the-counter derivatives and do not require deposit of guarantee margins. The remaining contractual maturities of financial liabilities are disclosed at the 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. 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 December 31, 2018 Total book Total future Up to 1 1 - 2 2 - 5 More than value value year years years 5 years Liabilities Trade accounts payables 632,565 632,565 632,565 — — — Loans, financing and debentures 35,737,509 54,020,082 5,158,441 4,091,669 18,372,597 26,397,375 Liabilities for asset acquisitions and subsidiaries 992,512 1,099,331 495,862 100,715 316,730 186,024 Derivative financial instruments 1,636,700 2,149,710 790,679 736,715 465,853 156,462 Other liabilities 404,655 404,655 367,314 37,341 — — 39,403,941 58,306,342 7,444,861 4,966,440 19,155,180 26,739,859 4.3. It is related to the possibility of non-compliance with the counterparty commitment in an operation. Credit risk is managed on a group and arises from cash equivalents, marketable securities, derivative financial instruments, bank deposits, Bank Deposit Certificates ("CDB"), fixed income box, repurchase agreements, letters of credit, insurance, receivable terms of customers, advances to suppliers for new projects, among others. 4.3.1. The Company has commercial and credit policies aimed at mitigating any risks arising from its customers' default, mainly through hiring of credit insurance policies, bank guarantees provided by first-tier banks and collaterals according to liquidity. Moreover, portfolio customers are subject to internal credit analysis aimed at assessing the risk regarding payment performance, both for exports and for domestic sales. For customer credit assessment, the Company applies a matrix based on the analysis of qualitative and quantitative aspects to determine individual credit limits to each customer according to the identified risk. Each analyze is submitted for approval according to established hierarchy and, if applicable, to approval from the Management’s meeting and the Credit Committee. The risk classification of trade accounts receivable is set forth below: December 31, December 31, 2019 2018 Low (1) 2,775,364 2,447,184 Average (2) 168,836 66,587 High (3) 133,613 60,466 3,077,813 2,574,237 1) Current and overdue to 30 days. 2) Overdue between 30 and 90 days. 3) Overdue more than 90 days and renegotiated with the customer or with guarantees. Part of the amounts above does not consider the expected credit losses calculated based on the provision matrix of R$41,996 and R$37,179 as of December 31, 2019 and 2018, respectively. 4.3.2. The Company, in order to mitigate credit risk, maintains its financial operations diversified among banks, with a main focus on first-tier financial institutions classified as high-grade by the main risk rating agencies. The book value of financial assets representing the exposure to credit risk is set forth below: December 31, December 31, 2019 2018 Cash and cash equivalents 3,249,127 4,387,453 Marketable securities 6,330,334 21,098,565 Derivative financial instruments 830,426 493,934 10,409,887 25,979,952 The counterparties, substantially financial institutions, in which transactions are performed classified under cash and cash equivalents, marketable securities and derivatives financial instruments, are rated by the rating agencies. The risk rating is set forth below: Cash and cash equivalents and marketable securities Derivative financial instruments December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Risk rating (1) AAA 190,360 19,736,151 — 141,296 AA+ — 5,257,518 — — AA — 68,207 — 259,711 AA- 56,388 422,899 — — A+ 606,757 — 27,363 — A 188,458 80 165,851 51,281 A- 211,238 1,160 222,761 — brAAA 7,153,079 — 404,693 — brAA+ 745,177 — 9,758 — brAA 372,188 — — — brAA- 23,050 — — — brA 17,847 — — — Others 14,919 1 — 41,646 9,579,461 25,486,016 830,426 493,934 1) We use the Brazilian Risk Rating and the rating is given by agencies Fitch Ratings, Standard & Poor’s and Moody’s. 4.4. The Company is exposed to several market risks, mainly, related to fluctuations in exchange rate variation, interest rates, inflation rates and commodity prices that may affect its results and financial situation. To mitigate the impacts, the Company has processes to monitor exposures and policies that support the implementation of risk management. The policies establish the limits and the instruments to be implemented for the purpose of: (i) protecting cash flow due to currency mismatch, (ii) mitigating exposure to interest rates, (iii) reducing the impacts of fluctuation in commodity’s prices, and (iv) change of debt indexes. The market risk management comprises the identification, the assessment and the implementation of the strategy, with the effective hiring of adequate financial instruments. 4.4.1. The fundraising financing and the currency hedge policy of the Company are guided considering substantial part of net revenue arises from exports with prices negotiated in U.S.Dollar, while substantial part of the production costs is attached to the Brazilian Real. This structure allows the Company to hired export financing in U.S.Dollar and to reconcile financing payments with the cash flows of receivables from sales in foreign market, using the international bond market as an important portion of its capital structure, and providing a natural cash hedge for these commitments. Moreover, the Company hires U.S.Dollar selling transactions in the futures markets, including strategies involving options, to ensure attractive levels of operating margins for a portion of revenue. Such transactions are limited to a percentage of the net surplus foreign currency over an 18‑months' time horizon and therefore, are matched to the availability of currency for sale in the short term. The net exposure of assets and liabilities in foreign currency which is substantially in U.S. dollars, is set forth below: December 31, December 31, 2019 2018 Assets Cash and cash equivalents 2,527,834 1,143,968 Trade accounts receivables 2,027,018 1,661,108 Derivative financial instruments 9,440,141 493,685 13,994,993 3,298,761 Liabilities Trade accounts payables (1,085,207) (72,680) Loans and financing (45,460,138) (26,384,721) Liabilities for asset acquisitions and subsidiaries (288,172) (333,049) Derivative financial instruments (11,315,879) (1,464,569) (58,149,396) (28,255,019) Net liability exposure (44,154,403) (24,956,258) 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$/U.S.$ = R$4.0307). This analysis assumes that all other variables, particularly, the interest rates, remains constant. The other scenarios considered the appreciation/depreciation of the Brazilian real against the U.S.$. at the rates of 25% and 50%, before taxes. The following table set forth the potential impacts in absolute amounts: December 31, 2019 Effect on profit or loss and equity Possible Remote Probable (25%) (50%) Cash and cash equivalents 2,527,834 631,959 1,263,917 Trade accounts receivable 2,027,018 506,755 1,013,509 Trade accounts payable 1,085,207 271,302 542,604 Loans and financing 45,460,138 11,365,035 22,730,069 Liabilities for asset acquisitions and subsidiaries 288,172 72,043 144,086 4.4.1.2. 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 assuming these scenarios: December 31, 2019 Effect on profit or loss and equity Possible Remote Possible Remote Probable (+25%) (+50%) (-25%) (-50%) Financial instruments derivatives Derivative options (2,198,750) (4,087,518) (8,175,033) (4,087,510) (8,175,024) Derivative swaps 66,981 (2,710,465) (6,048,324) (3,011,787) (6,383,188) 4.4.2. Fluctuations in interest rates could result in increase or decrease in costs of new financing and transactions already hired. The Company constantly pursuit of alternatives to use financial instruments in order to avoid negative impacts on its cash flows. Considering LIBOR's risk of extinction over the next few years the Company has negotiating its contracts with clauses that envisage the discontinuation of the interest rate. Most debt agreements attached to LIBOR has some clause of substitution of the rate by a reference index or interest rate equivalent. For agreements that do not have a specific clause, the parties will renegotiate. The derivative agreements attached to LIBOR, provide for negotiations between the parties to define a new rate or an equivalent rate will be provided by the calculation agent. Over the next few years, until LIBOR expires, the Company will actively work to reflect an equivalent replacement rate in all of its agreements. 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: December 31, 2019 Effect on profit or loss and equity Probable Possible (25%) Remote (50%) CDI Cash and cash equivalents 630,075 6,931 13,862 Marketable securities 6,330,334 69,634 139,267 Loans and financing 11,482,992 581,039 252,626 TJLP Loans and financing 9,720,880 622,671 270,727 LIBOR Loans and financing 16,229,715 356,183 154,862 4.4.2.2. 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 assuming these scenarios: December 31, 2019 Effect on profit or loss and equity Probable Remote Probable Remote Probable (+25%) (+50%) (-25%) (-50%) CDI Financial instruments derivatives Liabilities Derivative options 66,981 (72,473) (142,327) 75,530 154,446 Derivative swaps (2,198,750) (42,752) (83,345) 44,995 92,339 Libor Financial instruments derivatives Liabilities Derivative swaps (2,198,750) 163,314 326,151 (163,811) (328,121) 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. December 31, 2019 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 268,547 107,815 220,514 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. 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. On December 31, 2019, there is long position in bunker oil U.S.$0.364 to hedge its logistics costs. (U.S.$5,344 as of December 31, 2018). 4.4.3.1. This analysis assumes that all other variables, particularly price risk, remain constant. The other scenarios considered appreciation/depreciation of 25% and 50% in the market interest rates. The following table set forth the potential impacts assuming these scenarios: December 31, 2019 Impact of an increase/decrease of price risk Probable Possible (25%) Remote (50%) Oil derivative (92) 478 864 4.5. The Company determines the fair value of derivative contracts, which differ from the amounts realized in the event of early settlement due to bank spreads and market factors at the time of quotation. The amounts presented by the Company are based on an estimate using market factors and use data provided by third parties, measured internally and compared to calculations performed by external consultants. Fair value does not represent an obligation for immediate disbursement or cash receipt, given that such effect will only occur on the dates of contractual fulfillment or on the maturity of each transaction, when the result will be determined, depending on the case and market conditions on the agreed dates. A summary of the methodologies used for purposes of determining fair value by type of instrument is presented below: (i) Swap: the future value of the asset and liability are estimated by the cash flows projected by the market interest rate of the currency in which the tip of the swap is denominated. The present value of the US dollar-denominated tip is measured using the discount using the exchange coupon curve (the remuneration, in US dollars, of the Reais invested in Brazil) and in the case of the BRL-denominated tip, the discount is made using Brazil's interest curve, being the future curve of the DI, considering both the credit risk of the Company and the counterparty. The exception is pre-fixed contracts x US$ where the present value at the tip denominated in US$ is measured through the discount using the LIBOR curve, disclosed by Bloomberg. The fair value of the contract is the difference between these two points. Interest rate curves were obtained from B3. (ii) Options (Zero Cost Collar): the fair value was calculated based on the Garman-Kohlhagen model, considering both Company’s and the counterparty credit risk. Volatility information and interest rates are observable and obtained from B3 exchange information to calculate the fair values. (iii) Non-deliverable forward (NDF): a projection of the future currency quote is made, using the exchange coupon curves and the future DI curve for each maturity. Next, it is verified the difference between this quotation obtained and the rate that was contracted for the operation, considering the credit risk of the Company and the counterparty. This difference is multiplied by the notional value of each contract and brought to present value by the future DI curve. Interest rate curves were obtained from B3. (iv) Swap US-CPI: liability cash flows are projected by the US inflation curve US-CPI, obtained by the implicit rates for inflation-linked US securities (“Treasury Protected against Inflation - TIPS”), disclosed by Bloomberg. Cash flows from the asset components are projected at the fixed rate implicit in the embedded derivative. The fair value of the embedded derivative is the difference between the two components, adjusted to present value by the curve of the exchange coupon obtained from B3. (v) Swap Bunker (oil): a future projection of the asset price is made, using the future price curve disclosed by Bloomberg. Next, it is verified the difference between this projection obtained and the rate that the operation was contracted, considering both of Company’s and counterpart’s credit risk. This difference is multiplied by the notional value of each contract and adjusted to present value by the LIBOR curve disclosed by Bloomberg. The yield curves used to calculate the fair value in December 31, 2019, are as set forth below: Interest rate curves Term Brazil United States of America Dollar coupon 1M 4.41% p.a. 1.91% p.a. 13.33% p.a. 6M 4.33% p.a. 1.84% p.a. 4.37% p.a. 1A 4.56% p.a. 1.77% p.a. 3.40% p.a. 2A 5.28% p.a. 1.68% p.a. 2.93% p.a. 3A 5.79% p.a. 1.66% p.a. 2.81% p.a. 5A 6.43% p.a. 1.70% p.a. 2.87% p.a. 10A 7.01% p.a. 1.86% p.a. 3.31% p.a. 4.5.1. The positions of outstanding derivatives are set forth below: Notional value in U.S.$ Fair value December 31, December 31, December 31, December 31, Instruments contracted with protection strategy Operational Hedge NDF (R$ x U.S.$) — 150,000 — 17,036 Zero Cost Collar (R$ x U.S.$) 3,425,000 3,040,000 67,078 (134,814) Debt hedge Interest rate hedge Swap LIBOR to Fixed (U.S.$) 2,750,000 2,757,143 (444,910) (170,707) Swap IPCA to CDI (notional in Reais ) 843,845 — 233,255 — Swap IPCA to Fixed (U.S.$) 121,003 — 30,544 — Swap CDI x Fixed (U.S.$) 3,115,614 2,402,110 (1,940,352) (853,141) Pre-fixed Swap to U.S.$ (U.S.$) 350,000 (33,011) Hedge de Commodity Swap US-CPI standing wood (U.S.$) 679,485 268,547 Swap Bunker (oil) 365 5,344 (92) (1,140) (1,818,941) (1,142,766) Current assets 260,273 352,454 Non-current assets 838,699 141,480 Current liabilities (893,413) (596,530) Non-current liabilities (2,024,500) (1,040,170) (1,818,941) (1,142,766) Outstanding agreements on December 31, 2019, are over-the-counter operations without any margin or early settlement clause imposed due to mark-to-market variations. Each existing agreement and respective protected risks are set forth below: i) CDI Swap x Fixed U.S.$.: positions in conventional swaps by changing the rate of Interbank Deposits (“DI”) by pre-fixed U.S.$ rate. The purpose is to change the debt index from Brazilian Reais to U.S.$. ii) IPCA Swap x CDI: positions in conventional swaps by changing from Amplified Consumer Price Index (“IPCA”) to rate of DI. The purpose is to change the debt index to Brazilian Reais. iii) IPCA Swap x Fixed U.S.$.: positions in conventional swaps by changing from Amplified Consumer Price Index (“IPCA”) to pre-fixed U.S.$ rate. The purpose is to change the debt index from Brazilian Reais to U.S.$. iv) Swap LIBOR x Fixed U.S.$.: positions in conventional swaps exchanging floating rates from pre-fixed rate (LIBOR) to U.S.$. The purpose is to protect the cash flow of variations in the U.S.$ interest rate. v) Swap pre-Fixed x Fixed U.S.$: positions in conventional swaps exchanging from pre-fixed rate in Brazilian Reais to pre-fixed rate in U.S.$. The purpose is to change the exposure of debt from Brazilian Reais to U.S.$. vi) Zero-Cost Collar: positions in an instrument consisting of the simultaneous combination of the purchase of put options and the sale of U.S.$ call options, with the same principal and maturity, in order to protect the cash flow of exports. This strategy establishes an interval where there is no deposit or receipt of financial margin on the position adjustments. vii) NDF - Non-Deliverable Forward : NDF U.S.$.: Positions sold in futures contracts of U.S.$, with the purpose of protecting the cash flow of exports. viii) Swap Bunker (oil): positions purchased in oil bunker, with the purpose of protecting logistics costs related to the see freight agreements. ix) Swap US-CPI: The embedded derivative refers to the swap for the sale of US-CPI variations within the term of the forest partnership and the provision of standing wood agreements. 4.5.2. December 31, December 31, 2019 2018 2019 — (244,069) 2020 (633,644) (180,333) 2021 98,850 87,851 2022 (154,734) 83,692 2023 185,209 80,052 2024 (197,718) 82,963 2025 (606,827) (486,958) 2026 onwards (510,077) (565,964) (1,818,941) (1,142,766) 4.5.3. The outstanding derivatives positions are set forth below: Notional value Fair value December 31, December 31, December 31, December 31, Currency 2019 2018 2019 2018 Debt hedge Assets Swap CDI x Fixed (U.S.$) R$ 11,498,565 8,722,620 11,673,117 119,178 Swap Pre-Fixed to U.S.$ (U.S.$) R$ 1,317,226 1,478,336 — Swap LIBOR x Fixed (U.S.$) U.S.$ 2,750,000 2,757,143 11,063,970 — Swap IPCA x CDI IPCA 933,842 1,093,067 — Swap IPCA x U.S.$ IPCA 499,441 579,307 — 25,887,797 119,178 Liabilities Swap CDI x Fixed (U.S.$) U.S.$ 3,115,614 2,402,110 (13,613,469) (972,319) Swap LIBOR x Fixed (U.S.$) U.S.$ 350,000 2,757,143 (1,511,347) (170,707) Swap LIBOR x Fixed (U.S.$) U.S.$ 2,750,000 (11,508,880) — Swap IPCA x CDI R$ 843,845 (859,812) — Swap IPCA x U.S.$ U.S.$ 121,003 (548,763) — (28,042,271) (1,143,026) (2,154,474) (1,023,848) Operational hedge Zero cost collar (U.S.$ x R$) U.S.$ 3,425,000 3,040,000 67,078 (134,814) NDF (R$ x U.S.$) U.S.$ — 150,000 17,036 67,078 (117,778) Commodity hedge Swap US-CPI (standing wood) U.S.$ 679,485 — 268,547 — Swap Bunker (oil) U.S.$ 365 5,344 (92) (1,140) 268,455 (1,140) (1,818,941) (1,142,766) 4.5.4. The settled derivatives positions are set forth below: December 31, December 31, 2019 2018 Operational hedge Zero cost collar (R$ x U.S.$) (104,040) (110,271) NDF (R$ x U.S.$) 63,571 (1,235,448) (40,469) (1,345,719) Commodity hedge Swap Bunker (oil) 3,804 — 3,804 — Debt hedge Swap CDI x Fixed (U.S.$) (68,362) 19,145 Swap IPCA x CDI 23,024 — Swap Pre-Fixed to U.S.$ (U.S.$) (26,358) — Swap LIBOR x Fixed (U.S.$) (27,088) (4,939) (98,784) 14,206 (135,449) (1,331,513) 4.6. For the year ended on December 31, 2019, there were no changes between the 3 (three) levels of hierarchy, except for Ensyn’s and Spinnova’s investments as disclosed in Note 3.1.5, which became to be recognized trough by equity method. There were no transfers between levels 1, 2 and 3 during the periods disclosed. 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 December 31, 2018 Level 1 Level 2 Level 3 Total Assets Fair value through profit or loss Derivative financial instruments — 493,934 — 493,934 Marketable securities 14,933,513 6,165,052 — 21,098,565 14,933,513 6,658,986 — 21,592,499 Biological assets — — 4,935,905 4,935,905 — — 4,935,905 4,935,905 Total Assets 14,933,513 6,658,986 4,935,905 26,528,404 Liabilities Fair value through profit or loss Derivative financial instruments — 1,636,700 — 1,636,700 — 1,636,700 — 1,636,700 Total Liabilities — 1,636,700 — 1,636,700 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 | 12 Months Ended |
Dec. 31, 2019 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 5. CASH AND CASH EQUIVALENTS Average yield December 31, December 31, p.a. % 2019 2018 Cash and banks 2,464,097 1,151,766 Cash equivalents Local currency Fixed-term deposits (1) 99.52% of CDI 630,075 3,215,252 Foreign currency Fixed-term deposits (1) 154,955 20,435 3,249,127 4,387,453 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 | 12 Months Ended |
Dec. 31, 2019 | |
MARKETABLE SECURITIES | |
MARKETABLE SECURITIES | 6. MARKETABLE SECURITIES Average yield December 31, December 31, p.a. % 2019 2018 In local currency Investment funds 61.51% of CDI 6,683 — Private funds 98.73% of CDI 1,431,303 14,933,513 Public titles measured at fair value through profit or loss 1,631,319 2,049,281 Private Securities (Compromised) 98.73% of CDI 3,081,326 4,115,771 Private Securities (Compromised) - Escrow Account (1) 101.02% of CDI 179,703 — 6,330,334 21,098,565 Current 6,150,631 21,098,565 Non-Current 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 | 12 Months Ended |
Dec. 31, 2019 | |
TRADE ACCOUNTS RECEIVABLE | |
TRADE ACCOUNTS RECEIVABLE | 7. TRADE ACCOUNTS RECEIVABLE 7.1 December 31, December 31, 2019 2018 Domestic customers Third parties 1,027,034 853,684 Receivables Investment Fund ("FIDC") — 22,299 Related parties (note 11) 23,761 36,727 Foreign customers Third parties 2,027,018 1,661,527 (-) Expected credit losses (41,996) (37,179) 3,035,817 2,537,058 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 as at December 31, 2019, is R$3,544,625 (R$396,563 as at December 31, 2018). 7.2 Breakdown of trade accounts receivable by maturity December 31, December 31, 2019 2018 Current 2,552,459 2,119,188 Overdue Up to 30 days 180,909 291,050 From 31 to 60 days 148,388 54,845 From 61 to 90 days 20,448 10,982 From 91 to 120 days 20,680 7,446 From 121 to 180 days 17,899 6,285 More than 180 days 95,034 47,262 2,537,058 7.3 December 31, December 31, 2019 2018 Beginning balance (37,179) (38,740) Business combination with Fibria (1) (5,947) — Addition (18,650) (11,578) Reversal 6,364 5,128 Write-off 13,383 8,993 Exchange rate variation 33 (982) Ending balance (41,996) (37,179) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. 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 one customer for 10% of net sales of pulp segment for the year ended on December 31, 2019 and 2018. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
INVENTORIES | 8. INVENTORIES December 31, December 31, 2019 2018 Finished goods Pulp Domestic (Brazil) 575,335 167,317 Foreign 2,229,206 485,226 Paper Domestic (Brazil) 199,635 227,303 Foreign 70,199 67,872 Work in process 75,377 52,882 Raw material 1,047,433 626,150 Spare parts and other 488,410 226,354 4,685,595 1,853,104 On December 31, 2019, inventories are net of estimated losses in the amounts of R$106,713 (R$33,195 as of December 31, 2018). 8.1 losses December 31, December 31, 2019 2018 Beginning balance (33,195) (51,911) Business combination with Fibria (1) (11,117) — Addition (2) (111,077) (10,605) Reversal 9,734 5,873 Write-off (3) 38,942 23,448 Ending balance (106,713) (33,195) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. 2) On December 31, 2019, refers, substantially, to estimated losses of inventories of finished goods and raw material, in the amounts of R$42,470 and R$39,382, respectively. 3) On December 31, 2019, refers, substantially, to write-off of spare parts and raw material, in the amounts of R$5,786 and R$26,083, respectively. On December 31, 2019, additional write-offs were booked in the income statement in the amount of R$5,190 (R$29,828 as of December 31, 2018). On December 31, 2019 and December 31, 2018, there were no inventory items pledged as collateral. |
RECOVERABLE TAXES
RECOVERABLE TAXES | 12 Months Ended |
Dec. 31, 2019 | |
RECOVERABLE TAXES | |
RECOVERABLE TAXES | 9. RECOVERABLE TAXES December 31, December 31, 2019 2018 IRPJ/CSLL – prepayments and withheld taxes 679,699 103,939 PIS/COFINS – on acquisition of property, plant and equipment (1) 61,376 55,518 PIS/COFINS – operations 589,142 12,426 PIS/COFINS – exclusion ICMS (2) 128,115 — ICMS – on acquisition of property, plant and equipment (3) 115,560 78,154 ICMS – operations (4) 1,519,017 215,361 Reintegra program (5) 118,944 48,879 Other taxes and contributions 18,799 24,845 Provision for loss of ICMS credits (6) (1,304,329) (10,792) Provision for loss of PIS/COFINS credits (21,132) — Fair value adjustment on business combination with Fibria (199,076) — 1,706,115 528,330 Current 997,201 296,832 Non-current 708,914 231,498 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. In the quarter ended September 30th, 2019, the Company recorded an asset of R$128,115 relating to PIS and COFINS tax credits within recoverable taxes and a gain in the statement of income (loss) within other operational results (note 30), 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 December 31, 2019 ICMS PIS e COFINS Total Beginning balance (10,792) — (10,792) Business combination with Fibria (1) (1,211,109) — (1,211,109) Addition (82,428) (21,132) (103,560) Ending balance (1,304,329) (21,132) (1,325,461) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. |
ADVANCE TO SUPPLIERS
ADVANCE TO SUPPLIERS | 12 Months Ended |
Dec. 31, 2019 | |
ADVANCE TO SUPPLIERS | |
ADVANCE TO SUPPLIERS | 10. ADVANCE TO SUPPLIERS December 31, December 31, 2019 2018 Forestry development program 1,087,149 231,063 Advance to suppliers 170,481 85,963 1,257,630 317,026 Current 170,481 98,533 Non-current 1,087,149 218,493 The forestry development program consists of an incentive partnership for regional forest production, where independent producers plant eucalyptus in their own land to supply the agricultural product wood to Company. Suzano provides eucalyptus seedlings, input subsidies and cash advances, and the latter are not subject to valuation at present value since they will be settled, preferably, in forests. In addition, the Company supports producers through technical advice on forest management but does not have joint control over decisions effectively implemented. At the end of the production cycles, the Company has contractually guaranteed the right to make an offer to purchase the forest and/or wood for market value, however, this right does not prevent producers from negotiating the forest and / or wood with other market participants, provided that the incentive amounts are fully paid. |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2019 | |
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. On December 31, 2019, 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 of December 31, 2018, except for the transactions involving the Company’s that belonged to the Fibria, which became related parties of the Company due to the conclusion of the business combination in January 2019. 11.1 Balances receivable (payable) December 31, December 31, Nature 2019 2018 Transactions with controlling shareholders Suzano Holding Granting of guarantees and administrative expenses 3 (125) 3 (125) Transactions with companies of the Suzano Group and other related parties Bexma Reimbursement for expenses 1 1 Bizma Reimbursement for expenses 1 2 Ecofuturo Social services (9) (33) Ibema Sale of pulp 23,755 36,721 Ibema Purchase of products (2,467) (1,643) Management Reimbursement for expenses (1) 21,280 35,048 21,283 34,923 Assets Trade accounts receivable 23,761 36,727 Liabilities Trade accounts payable (2,478) (1,804) 21,283 34,923 11.2 Expenses (income) December 31, December 31, Nature 2019 2018 Transactions with controlling shareholders Suzano Holding Granting of guarantees and administrative expenses (5,945) (12,723) (5,945) (12,723) Transactions with companies of the Suzano Group and other related parties: Bexma Reimbursement for expenses 11 10 Bizma Reimbursement for expenses 10 Ecofuturo Social services (5,272) (4,184) Ibema Sale of pulp 111,325 107,252 Ibema Purchase of products (7,744) 16 IPFL Reimbursement for expenses 4 4 Lazam - MDS Sale of paper 7 (31) Mabex Aircraft services (freight) (100) (390) Management Reimbursement for expenses (9,178) 541 Nemonorte Real estate advisory (330) (491) 88,733 102,727 82,788 90,004 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 year, are set for the below: December 31, December 31, December 31, 2019 2018 2017 Short-term benefits Salary or compensation 39,459 48,663 24,774 Direct and indirect benefits 1,747 2,828 2,959 Bonus 8,007 16,752 26,819 49,213 68,243 54,552 Long-term benefits Share-based compensation plan 45,739 62,150 33,554 45,739 62,150 33,554 94,952 130,393 88,106 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 | 12 Months Ended |
Dec. 31, 2019 | |
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 year 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 Abril 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 year 2019. There is no provision for tax related to the profit of such wholly-owned subsidiary in 2019. 12.1. December 31, December 31, 2019 2018 Tax loss carryforwards 600,249 310,293 Negative tax base 146,346 6,627 Provision for judicial liabilities 265,571 101,667 Operating provisions and other losses 933,818 286,616 Exchange rate variation - Taxation on a cash basis 2,001,942 534,093 Losses on derivatives 618,427 291,254 Fair value adjustment on business combination – Amortization 713,656 5,327 Unrealized profit on inventories 293,322 227,830 Lease 2,922 6,196 Other temporary differences — 4,056 Assets temporary differences 5,576,253 1,773,959 Goodwill - Tax benefit on unamortized goodwill 216,857 13,161 Property, plant and equipment - deemed cost adjustment 1,506,220 1,552,579 Accelerated tax depreciation 1,113,200 1,196,182 Borrowing cost 104,549 — Fair value of biologic assets 53,502 — Tax provision on results of subsidiaries abroad 463,850 — Fair value adjustment on business combination with Fibria – Deferred taxes, net 502,347 — Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) 43,559 — Other temporary differences 17,004 41,172 Liabilities temporary differences 4,021,088 2,803,094 Non-current assets 2,134,040 8,998 Non-current liabilities 578,875 1,038,133 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: December 31, December 31, 2019 2018 Tax loss carry forward 2,400,998 1,241,172 Social contribution tax loss carryforward 1,626,064 73,633 The rollforward of net balance of deferred income tax is set for the below: December 31, December 31, 2019 2018 Beginning balance (1,029,135) (1,787,354) Business combination with Fibria (1) 1,034,842 — Tax loss 270,559 (264,955) Tax loss carryforwards 139,719 (23,203) (Reversal)/provision for judicial liabilities 31,262 (1,964) Operating provisions and other losses (21,757) 82,785 Exchange rate variation - Taxation on a cash basis 552,421 451,300 Derivative losses 319,860 390,198 Fair value adjustment on business combination – Amortization 699,527 5,327 Unrealized profit on inventories 65,492 124,454 Lease (3,274) 69 Adjustment to present value 174 Tax benefit on unamortized goodwill (203,696) (3,098) Property, plant and equipment - Deemed cost 46,359 51,408 Accelerated depreciation 82,982 (13,067) Borrowing cost 44,727 (23,145) Fair value of biological assets (60,778) (22,307) Tax provision on results of subsidiaries abroad (351,485) — Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) (43,559) — Other temporary differences (18,901) 4,243 Ending balance 1,555,165 (1,029,135) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. 12.2. December 31, December 31, 2019 2018 Net income (loss) before taxes (4,097,203) 165,298 Income tax and social contribution benefit (expense) at statutory nominal rate of 34% 1,393,049 (56,201) Tax effect on permanent differences: Taxation (difference) on profit of subsidiaries abroad (1) (24,933) (97,439) Tax incentive - Reduction SUDENE — 261,910 Equity method 10,878 2,576 Thin capitalisation (95,003) (2,553) Credit related to Reintegra Program 4,515 37,627 Tax incentives applied to income tax (2) 18,919 20,505 Unrealized profit on operations with subsidiaries — 16,786 Director bonus (43,913) — Other 18,949 (28,695) 1,282,461 154,516 Income tax Current (220,311) (300,438) Deferred 1,093,200 604,190 872,889 303,752 Social Contribution Current (25,799) (286,130) Deferred 435,371 136,894 409,572 (149,236) Income and social contribution benefits (expenses) on the year 1,282,461 154,516 Effective rate of income and social contribution tax expenses 31 % (93.5) % 1) The effect of the difference in taxation of subsidiaries is substantially due to the difference between the nominal rates of Brazil and subsidiaries abroad. 2) Income tax deduction amount referring to the use of the PAT (“Worker Feeding Program”) benefit and donations made in cultural and sports projects. 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) 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 and Imperatriz facility expire in 2024. |
BIOLOGICAL ASSETS
BIOLOGICAL ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
BIOLOGICAL ASSETS | |
BIOLOGICAL ASSETS | 13. BIOLOGICAL ASSETS The rollforward of biological assets is set forth below: Balances on December 31, 2017 4,548,897 Addition 1,285,490 Depletion (709,547) Loss on fair value adjustment (129,187) Disposal (47,124) Other write-offs (12,624) Balances on December 31, 2018 4,935,905 Business combination with Fibria (1) 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 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. 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 Company’s biological assets are mainly of eucalyptus forest for reforestation used to supply wood to pulp and paper manufactory facility and are located in the states of São Paulo, Bahia, Espírito Santo, Maranhão, Minas Gerais, Pará, Piauí and Tocantins. Permanent preservation and legal reserve areas were not included in the biological assets fair value measurements due to its nature. The fair value of eucalyptus forests is determined semiannually through the income approach method by using the discounted cash flow method. 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: December 31, 2019 Planted useful area (hectare) 988,720 Mature assets 86,352 Immature assets 902,368 Average annual growth (IMA) - m3 /hectare /year 38.34 Average gross sale price of eucalyptus - R$/m3 66.81 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 December 31, 2019 is justified by variation of indicators mentioned above, which combined resulted in a positive variation of R$185,399. The fair value adjustment was recognized under other operating income (expense), net. December 31, 2019 Physical changes (347,409) Price 532,808 185,399 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 December 31, 2019. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENTS | |
INVESTMENTS | 14. INVESTMENTS 14.1. December 31, December 31, 2019 2018 Investments in associates and joint ventures 140,934 14,338 Goodwill 161,464 — Other investments evaluated at fair value through other comprehensive income 20,048 — 322,446 14,338 14.2. Information of joint ventures as of Company Participation December 31, 2019 In equity In the income of the year Income Participation of the equity December 31, December 31, December 31, December 31, Equity year (%) 2019 2018 2019 2018 Associate Ensyn Corporation (1) 252 (268) 25.30 % 21,437 — 12,860 — Spinnova (1) 24.06 % 86,969 — (1,332) — 108,406 — 11,528 — Joint ventures Ibema 49.90 % 28,487 14,338 20,307 8,676 F&E Technologies LLC 50.00 % 4,041 134 32,528 14,338 20,441 8,676 140,934 14,338 31,969 8,676 1) Investment by which the Company has had significant influence and, therefore, value by the equity method, Note 3.1.5. 14.3. To determine the accounting criteria for recording this transaction with Fibria, we observed the provisions of IFRS 3 – Business Combination. The direct costs related to the operation, recorded directly in general and administrative expenses for the year when incurred, totaled approximately R$100,387, substantially consisting of expenses with legal fees, auditing and other consulting services. The net assets were evaluated by Management and an independent appraiser was hired to assist in determining their fair values. The methodology adopted for the determination of fair value adjustments on business combination with Fibria is described in Note 1.2.1. The assets and liabilities were evaluated by Management and an independent appraiser was hired to assist in determining the fair values, and some qualified for booking in accordance with IAS 38 – Intangible Assets. As disclosed in note 1.1, on January 3, 2019, Suzano has acquired the control of Fibria. The assets acquired and liabilities assumed at the fair value are set forth below in millions of Brazilian Reais : Fair value Fair value Assets Liabilities Current Current Cash and cash equivalents 1,795 Loans and financing 3,136 Marketable securities 4,316 Derivative financial instruments 276 Derivative financial instruments 211 Lease liabilities 376 Trade accounts receivable 1,302 Trade accounts payable 3,427 Inventories 6,187 Payroll and charges 402 Recoverable taxes 261 Taxes payable 129 Other assets 213 Dividends payable 6 Other liabilities 126 Total current assets 14,285 Total current liabilities 7,878 Non-current Non-current Marketable securities 173 Loans and financing 17,591 Derivative financial instruments 455 Lease liabilities 2,599 Recoverable taxes 988 Derivative financial instruments 126 Advances to suppliers 604 Provision for contingencies, net 3,182 Judicial deposits 210 Deferred taxes 558 Deferred taxes 1,567 Other liabilities 251 Other assets 227 4,224 Total non-current liabilities 24,307 Investments 200 Total liabilities 32,185 Biological assets 4,580 Property, plant and equipment 24,961 Right of use 2,916 Intangible assets Other intangible assets 309 Customer portfolio 9,031 Software 21 Cultivars 143 Supplier agreements 172 Equity Port concession 749 Fair value adjustment of lease agreements 44 Shareholders' equity 37,236 Goodwill 7,897 51,023 Non-controlling interest 111 Total non-current assets 55,247 Total equity 37,347 Total asset 69,532 Total liabilities and shareholders' equity 69,532 During the measurement process of the assets acquired and liabilities assumed at the fair value, the Company has identified adjustments to the fair value of some assets and liabilities, as described below, however there were no changes in the goodwill amount. (i) (ii) (iii) |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
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 Annual average depreciation rate % 3 5 10 to 20 Cost Balance as of December 31, 2017 4,348,593 2,815,673 15,846,331 483,735 288,395 23,782,727 Additions 705 2,319 143,058 1,321,350 25,913 1,493,345 Fair value adjustment from business combination – Facepa 27,381 (3,014) 27,506 (4,880) 2,821 49,814 Business combination – Facepa 7,446 18,505 46,165 3,395 1,920 77,431 Business combination - PCH 4,291 102,176 3,831 2 26 110,326 Write-offs (34,523) (8,654) (67,280) (1,183) (111,640) Interest capitalization 1,772 1,772 Transfer and other (2) 750,824 131,515 441,420 (1,339,218) 14,197 (1,262) 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 with Fibria 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 Depreciation Balance as of December 31, 2017 — (829,821) (6,545,959) — (195,718) (7,571,498) Write-offs — 1,462 60,506 — 196 62,164 Depreciation — (78,264) (760,634) — (29,844) (868,742) Fair value adjustment from business combination - Facepa — (3,447) — (731) (4,178) Transfer and other (2) — 7 1,391 — (1,398) 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 with Fibria (3) — (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) Net Balance as of December 31, 2018 5,104,717 2,151,904 9,192,888 466,156 104,594 17,020,259 Balance as of December 31, 2019 10,321,574 5,787,873 23,670,191 969,701 371,606 41,120,945 1) Includes vehicles, furniture and utensils and computer equipment. 2) Includes transfers carried out between the items of property, plant and equipment, intangible assets, right of use arising from lease agreements and inventories. 3) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. On December 31, 2019, the Company analyses the event and did not identified tan impairment of property, plant and equipment. 15.1. On December 31, 2019, property, plant and equipment items that are pledge as collateral for loans transactions and lawsuits, consisting substantially of the units of Aracruz, Imperatriz, Limeira, Mucuri, Suzano and Três Lagoas totaled R$ 24,985,741 (R$ 11,505,386 consisting substantially of the units of Imperatriz, Limeira, Mucuri and Suzano as of December 31, 2018). 15.2. During the year ended December 31, 2019, the Company capitalized interest in the amount of R$4,213 (R$1,772 as of December 31, 2018). The weighted average interest rate utilized to determine the capitalized amount was 9.50 % p.a. (6.55% p.a. as of December 31, 2018). |
INTANGIBLE
INTANGIBLE | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE | |
INTANGIBLE | 16. NTANGIBLE 16.1. December 31, December 31, 2019 2018 Vale Florestar 45,435 45,435 Paineiras Logística (1) — 10 PCHM (1) — 307 FACEPA 119,332 112,582 Fibria (2) 7,897,051 — Other (3) 1,196 1,196 8,063,014 159,530 1) On December 31, 2019, the Company tested goodwill on expected future profitability (goodwill) arising from business combinations with PCH Mucuri and Paineiras Logística and identified an impairment of R$317 recognized in other operating results. 2) Purchase price allocation in Note 1.2.2. 3) The amount of R$1,196 related to other intangible assets with indefinite useful life such as servitude and electricity in the year ended December 31, 2019 and 2018. The goodwill is based on expected future profitability supported by valuation reports, after purchase price allocation. Goodwill are allocated to cash-generating units as presented in Note 29.4. The calculation of the value in use of non-financial assets is done annually using the discounted cash flow method. In 2019, the Company used the strategic plan and annual budget with growing projections until 2024 and the average perpetuity of the cash generating units considering a nominal tax of 3.6% p.a. from this date, based on historical information of previous years, economic and financial projections from each specific market that the Company has operations and additionally include official information disclosed by independent institutions and government agencies. The discount rate adopted by the Management was 9.1% p.a, calculated based on weighted average cost of capital (“WACC”). The assumptions in the table set forth below were considered as significant assumptions: 2020 2021 2022 2023 2024 Net average pulp price – Foreign market (USD/t) Asia 502.30 670.00 767.00 577.00 588.60 Europa 506.70 603.00 691.80 553.90 565.00 North America 559.40 638.90 733.00 586.80 598.60 Latin America 545.50 660.40 757.60 606.60 618.70 Net average pulp price – Internal market (USD/t) 439.50 631.00 723.90 579.60 600.10 Average exchange rate (R$/U.S.$) 3.94 3.92 3.96 4.02 4.08 Discount rate (pos-tax) 9.1% p.a. 9.1% p.a. 9.1% p.a. 9.1% p.a. 9.1% p.a. Discount rate (pre-tax) 12.5% p.a. 12.5% p.a. 12.5% p.a. 12.5% p.a. 12.5% p.a. The recoverability of property, plant and equipment was tested in 2019 and no impairment loss was identified. 16.2. December 31, December 31, 2019 2018 Beginning balance 180,311 141,785 Business combination with Fibria (1) 308,681 Additions 17,715 7,983 Fair value adjustment on business combination with Facepa 53,477 Fair value adjustment on business combination with Ibema 702 Amortization (74,332) (44,340) Fair value adjustment on business combination with Fibria 10,159,550 Customer portfolio 9,030,779 Supplier agreements 172,094 Port services agreements 694,590 Port concession 54,470 Lease agreements 44,371 Cultivars 142,744 Software 20,502 Fair value adjustment on business combination with Fibria - Amortization: (956,577) Customer portfolio (820,980) Supplier agreements (72,097) Port services agreements (29,362) Port concession (2,147) Lease agreements (7,499) Cultivars (20,392) Software (4,100) Fair value adjustment on business combination with Facepa - Amortization (15,430) Fair value adjustment on business combination with Ibema - Amortization (24) Exchange rate variation 2,930 12,461 Transfers and others 26,263 8,945 Ending balance 9,649,789 180,311 Average Annual Amortization Represented by Rate % Trademarks and patents 5 to 10 20,649 19,477 Software 20 119,265 59,112 Customer portfolio 2.5 to 5 7,393 19,004 Non-compete agreement 5 2,150 2,812 Research and development agreement 19 74,643 79,906 Development and implementation of systems 20 1,687 Right of exploitation - Terminal concession of Macuco 4 166,932 Supplier Relationship - Chemicals 5 51,562 Others 1,857 Intangible assets (fair value adjustments) acquired in the business combination, net – Ibema 678 Intangible assets (fair value adjustments) acquired in the business combination, net – Fibria 9,202,973 Customer portfolio 9 8,209,799 Supplier agreements 13 to 100 99,997 Port services agreements 4 665,228 Ports concession 4 52,324 Lease agreements 17 36,871 Cultivars 14 122,352 Software 20 16,402 9,649,789 180,311 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. Amortization of supplier and port services agreements, ports concession, lease agreements and cultivars are recognized as a cost of sales, amortization of customer portfolio is recognized in selling expenses, amortization of trademarks and patents, non-compete agreement, research and development agreement, development and implementation of systems are recognized administrative expenses, while software is recorded according to its use as cost of sales, administrative or sales expenses. |
TRADE ACCOUNTS PAYABLE
TRADE ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
TRADE ACCOUNTS PAYABLE | |
TRADE ACCOUNTS PAYABLE | 17. TRADE ACCOUNTS PAYABLE December 31, December 31, 2019 2018 In local currency Related party (Companies of the Suzano group) 2,478 1,804 Third party 1,288,774 558,041 In foreign currency Third party (1) 1,085,207 72,720 2,376,459 632,565 1) 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. On December 31, 2019, the amount of R$936,887 in the consolidated refers to purchases of Klabin's pulp. |
LOANS, FINANCING AND DEBENTURES
LOANS, FINANCING AND DEBENTURES | 12 Months Ended |
Dec. 31, 2019 | |
LOANS, FINANCING AND DEBENTURES | |
LOANS, FINANCING AND DEBENTURES | 18. LOANS, FINANCING AND DEBENTURES 18.1. Average annual Current Non-current Total interest rate - December 31, December 31, December 31, December 31, December 31, December 31, Type Interest rate % 2019 2018 2019 2018 2019 2018 In foreign currency BNDES UMBNDES 6.6 26,307 21,577 27,620 139,940 53,927 161,517 Bonds Fixed 5.7 640,177 216,624 27,375,673 11,189,403 28,015,850 11,406,027 Syndicated loan LIBOR 2.7 29,268 37,546 12,269,251 11,787,588 12,298,519 11,825,134 Finnvera/EKN (“Export Credit Agencies”) LIBOR 236,385 560,689 797,074 Financial lease U.S.$ 5,608 12,617 18,225 Export credits (ACC - pre-payment) LIBOR/Fixed 4.1 1,965,600 1,896,717 3,162,228 274,673 5,127,827 2,171,390 Others 3,481 3,481 2,664,833 2,414,457 42,834,772 23,964,910 45,499,604 26,379,367 In local currency BNDES TJLP 7.8 283,658 28,867 1,517,649 183,269 1,801,307 212,136 BNDES TLP 9.2 18,404 — 441,233 459,637 BNDES Fixed 5.2 39,325 26,119 77,333 95,034 116,658 121,153 BNDES SELIC 5.9 78,458 — 718,017 796,475 FINAME Fixed 6.6 4,781 970 9,564 2,010 14,345 2,980 BNB Fixed 6.7 37,815 25,038 156,904 191,976 194,719 217,014 CRA (“Agribusiness Receivables Certificates”) CDI/IPCA 5.9 2,860,938 789,892 2,952,451 1,588,986 5,813,389 2,378,878 Export credit note CDI 6.2 131,914 93,001 1,270,065 1,327,378 1,401,979 1,420,379 Rural producer Certificate CDI 7.6 5,840 6,809 273,303 273,029 279,143 279,838 Export credits (“Pre payment”) Fixed 6.2 77,694 — 1,312,586 1,390,280 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP Fixed 8.0 76,596 7,725 475,905 5,135 552,501 12,860 Others (Revolving Cost, Working capital and Industrial Development Fund (“FDI”)) Fixed 0.4 954 10,467 4,558 16,930 5,513 27,397 FDIC Funds of credit rights Fixed — 22,054 22,054 Fair value adjustment on business combination with Fibria (63,256) — (63,256) Debentures CDI 6.7 9,997 1,297 5,412,035 4,662,156 5,422,032 4,663,453 3,563,118 1,012,239 14,621,603 8,345,903 18,184,722 9,358,142 6,227,951 3,426,696 57,456,375 32,310,813 63,684,326 35,737,509 Interest on financing 886,886 345,988 136,799 1,023,685 345,988 Non-current funding 5,341,065 3,080,708 57,319,576 32,310,813 62,660,641 35,391,521 6,227,951 3,426,696 57,456,375 32,310,813 63,684,326 35,737,509 18.2. December 31, December 31, 2019 2018 Beginning balance 35,737,509 12,191,856 Amounts from the business combination with Fibria (1) 20,667,096 — Reclassification - accounts payable from lease operations (2) (18,225) — Fundraising 18,993,837 25,539,994 Business combination with PCH / FACEPA — 79,923 Interest accrued 3,362,250 839,278 Exchange rate variation, net 1,781,562 1,457,989 Settlement of principal (13,994,708) (3,738,577) Settlement of interest (2,977,957) (669,088) Fair value adjustment on business combination with Fibria (63,256) — Amortization of fundraising costs 185,807 36,134 Other 10,411 — Ending balance 63,684,326 35,737,509 1) Business combination with Fibria its subsidiaries held on January 3, 2019, Note 1.2.1. 2) As of January 1, 2019, the lease balance was reclassified to “Accounts payable from lease operations”, due to adoption of IFRS 16 by the Company. 18.3. 2021 2022 2023 2024 2025 2026 2027 onwards Total In foreign currency BNDES - Currency basket 9,175 10,061 8,384 — — — — 27,620 Bonds 762,320 — — 2,402,437 2,379,661 2,812,354 19,018,901 27,375,673 Syndicated Loan 1,343,567 3,197,689 7,727,996 — — — — 12,269,252 Export credits (ACC pre-payment) 136,320 13,143 — 2,015,350 997,414 — — 3,162,227 2,251,382 3,220,893 7,736,380 4,417,787 3,377,075 2,812,354 19,018,901 42,834,772 In local currency BNDES – TJLP 269,593 265,467 266,362 239,883 292,573 169,102 14,668 1,517,649 BNDES – TLP 18,866 18,866 18,866 18,866 17,617 20,120 328,032 441,233 BNDES – Fixed 28,959 24,567 18,601 5,206 — — — 77,333 BNDES – Selic 76,117 73,304 96,312 88,347 210,392 173,545 — 718,017 FINAME 3,829 2,786 1,656 1,197 96 — — 9,564 BNB 35,285 33,201 35,285 33,001 10,285 9,847 — 156,904 CRA (“Agribusiness Receivables Certificates”) — 1,512,680 1,439,771 — — — — 2,952,451 Export credit note — — — — 640,800 629,265 — 1,270,065 Rural producer certificate — — — — 137,500 135,803 — 273,303 Export credits (“Pre payment”) — — — 1,312,586 — — — 1,312,586 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP 67,986 67,986 67,986 67,989 67,986 67,986 67,986 475,905 Others (Revolving costs, working capital, FIDC and FDI) 4,559 — — — — — — 4,559 Debentures — — — — 2,340,550 2,324,307 747,178 5,412,035 505,194 1,998,857 1,944,839 1,767,075 3,717,799 3,529,975 1,157,864 14,621,603 2,756,576 5,219,750 9,681,219 6,184,862 7,094,874 6,342,329 20,176,765 57,456,375 18.4. December 31, December 31, 2019 2018 Brazilian Reais 17,362,903 9,358,142 U.S. Dollar 45,460,138 26,217,850 Selic (1) 807,358 — Currency basket 53,927 161,517 63,684,326 35,737,509 1) Contractual definition of currency in contracts with Brazilian National Bank for Economic and Social Development (“Banco Nacional de Desenvolvimento Econômico e Social or “BNDES”) that are in Brazilian Reais plus SELIC interest. 18.5. The fundraising costs are amortized based on terms agreements and effective interest rate. Balance to be amortized December 31, December 31, Nature Cost Amortization 2019 2018 Bonds 343,642 129,297 201,467 67,189 CRA and NCE 125,222 73,508 47,443 20,195 Import (“ECA”) 101,811 101,811 — 16,235 Syndicated Loan 72,774 33,209 40,382 30,552 Debentures 21,592 4,674 19,065 18,944 BNDES (“IOF”) (1) 53,730 13,702 38,447 — Others 18,147 8,381 4,590 3,188 736,918 364,582 351,394 156,303 1) Tax on Financial Operations 18.6. 18.6.1. On January 3, 2019, the Company settled the amount of R$878,573 of two series of CRA’s, with original maturities in 2021 and 2023 and a cost of 99% of CDI and IPCA + 4.5055% p.a. This settlement refers to the two of the nine series that were not obtained prior approval of the holders of the Certificates for the business combination between the Companies. 18.6.2. On March 15, 2019, the Company carried out the early settled of R$299,682 with the BNDES, comprising an installment to be amortized from the balance of the outstanding debt plus the corresponding remuneration up to the payment date. 18.6.3. On June 17, 2019, the Company, through its subsidiary Suzano International Trade GmbH (former Fibria International Trade GmbH), voluntarily prepaid the amount of U.S.$631,138 (equivalent to R$2,454,443), related to an export prepayment agreement, with quarterly interest payments of 1.15% p.a. plus quarterly LIBOR, which was scheduled to mature in 2022. On June 18, 2019, the Company, through its subsidiary Suzano International Trade GmbH (former Fibria International Trade GmbH, voluntarily prepaid the amount of U.S.$156,032 (equivalent to R$ 602,410), related to an export prepayment agreement, with quarterly interest payments of 1.15% p.a. plus quarterly LIBOR, which was scheduled to mature in October 2022. 18.6.4. On April 29 and April 30, 2019, the Company voluntarily prepaid U.S.$208,400 (equivalent to R$822,200) related to certain financing agreements that were guaranteed by the export credit agencies Finnvera and EKN. On June 17, 2019, the Company voluntarily prepaid the outstanding amount of U.S.$378,471 (equivalent to R$1,473,114) related to certain financing agreements that were guaranteed by the export credit agency Finnvera initially contracted in May 2016, which maturity date was 2025. 18.6.5. On March 27, 2019, the Company made the partial optional extraordinary amortization on the balance of the nominal unit value of all the debentures of this 7th issue, upon payment of the total amount of R$2,056,173, comprising an installment to be amortized balance of the nominal unit value of all debentures plus the corresponding remuneration. On May 31, 2019, the Company redeemed in full its unsecured debentures of its 7th issuance, non-convertible into shares, with maturity on January 7, 2020, by paying the total outstanding amount of R$2,019,587, comprising the total balance of the face value per unit of the totality of the debentures of such issuance plus the corresponding remuneration. 18.7. 18.7.1. On January 29, 2019, the Company, through its subsidiary Suzano Austria GmbH, reopened the Senior Notes 2029 with the additional issue of debt securities in the amount of U.S.$750,000 (equivalent to R$2,874,150). The notes mature in January 2029 and were issued with interest of 5.465% p.a., which will be paid semiannually. This transaction is fully and unconditionally guaranteed by Suzano S.A. 18.7.2. On February 25, 2019, the Company entered into an export prepayment agreement in the amount of R$738,800, with annual interest payment of 8.35% p.a. and maturing in 2024. On June 14, 2019, the Company, through its wholly-owned subsidiary Fibria International Trade GmbH, entered into a syndicated export prepayment transaction in the amount of U.S.$ 750,000 (equivalent to R$2,910,975), with a term of six years and grace period of five years. This transaction is fully and unconditionally guaranteed by Suzano S.A. On June 14, 2019, the Company entered into an export prepayment agreement in the amount of R$578,400, with annual interest payment of 7.70% p.a. and maturing in 2024. 18.7.3. On May 21, 2019, the Company, through its subsidiary Suzano Austria GmbH, issued an additional amount of U.S.$250,000 (equivalent to R$1,020,250) of its 7.00% Senior Notes due 2047, with yield at the rate of 6.245% p.a. and spread at the rate of 7.0% p.a., to be paid semiannually, in March and September, with maturity on March 16, 2047. This transaction is fully and unconditionally guaranteed by Suzano S.A. 18.7.4. On May 21, 2019, the Company, through its subsidiary Suzano Austria GmbH, issued an aggregate amount of U.S.$1,000,000 (equivalent to R $4,081,000) of 5.00% Senior Notes due 2030, with yield at the rate of 5.18% p.a. and spread at the rate of 5.0% p.a., to be paid semiannually, in January and July, with maturity on January 15, 2030. This transaction is fully and unconditionally guaranteed by Suzano S.A. 18.7.5. On May 17, 2019, BNDES released funds to the Company in the amount of R$108,050, with interest rates varying from Long Term Rate (“TLP”) plus interest rate of 0.96% p.a. to 1.44% p.a. to be paid from 2020 to 2028. The resources were applied to projects in the industrial, social and technological innovation areas. On December 17, 2019, BNDES released funds to the Company in the amount of R$300,000, with interest rates of Long-Term Rate (“TLP”) plus interest rate 1.77% p.a. with maturity date on 2034. The resources were applied to projects in the forestry areas. 18.7.6. On January 7, 2019, the Company issued R$4,000,000 in 7th issue, single series, non-convertible shares, due in January 2020 and with interest rates of 103% up to 112% of the CDI rate. On October 17, 2019, the Company issued 750,000, not-convertible into shares, unsecured, single series in the amount of R$750,000, with maturity date on September 15, 2028 and interest rate of 100% of CDI plus spread of 1.20% p.a. 18.7.7. Between October 21 and December 3, 2019, the Company entered into 10 ACCs, ACEs and PPEs agreements for a total of U.S.$450,000 (equivalent to R$1,868,743), with a maturity of up to 1 year. These transactions is fully and unconditionally guaranteed by Suzano S.A. 18.7.8. On February 20, 2019, the Company, through its wholly-owned subsidiaries Suzano Austria GmbH and Suzano Pulp and Paper Europe SA, entered into a syndicated Revolving Credit Facility agreement in the amount of US$500,000 (equivalent to R$1,855,000), with a term of 5 years. This transaction is fully and unconditionally guaranteed by Suzano S.A. 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 | 12 Months Ended |
Dec. 31, 2019 | |
LEASE | |
LEASE | 19. LEASE 19.1. As described in Note 3.1.1, the Company adopted IFRS 16 and applied the IFRS retrospectively with the cumulative effect of adoption recorded at the date of initial application. Accordingly, comparative periods were not restated. On January 1, 2019, the amounts corresponding to the right to use the current agreements were recognized, in amounts equivalent to the present value of the obligations assumed with the counterparties. The amortization of these balances will occur according to the terms defined for the leases. Except for land agreements that are automatically extended for the same period by means of notification to the lessor, for the other agreements are not allowed automatic renewals and for an indefinite period, as well as the exercise of termination is a right of both parties. The Company does not have lease agreements with clauses of (i) variable payments that are based on the performance of the leased assets (ii) guarantee of residual value (iii) restrictions, such as, for example, obligation to maintain financial ratios. In addition, the Company recognized under right of use the residual value of the right to use the agreements previously classified as financial leases under IAS 17 and which were recognized in the Property, plant and equipment group until December 31, 2018, being reclassified the amount of R$89,338 in the initial adoption. The effect of its adoption of the balances for the year ended December 31, 2019 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 30, 2019 1,769,645 130,051 45,999 1,904,455 87 3,850,237 1) The amount of R$268,081 is reclassified to biological assets to compose the formation cost. In the year ended December 31, 2019, the Company is committed to lease agreements not yet in force for ships expected to be delivered one unit in first quarter 2019 and one unit in first quarter 2020. 19.2. At the adoption of IFRS 16, the Company recognized lease liabilities for the current agreements, and which were previously classified as operating leases in accordance with IAS 17 - Leasing Operations, except for agreements included in the practical expedient permitted by the standard and adopted by the Company, as described in Note 3.1.1. The liabilities recognized as of January 1, 2019 correspond to the remaining balances payable of the lease contracts, measured to present value by the discount rates on the date of their adoption. In addition, the Company recognized under lease liabilities the remaining balances of agreements previously classified as financial leases under IAS 17 and which were recognized in the group of loans and financing until December 31, 2018, being reclassified the amount of R$18,225 in the initial adoption, as set forth below: Average rate - % Present value of Nature of agreement per annual (1) Maturity (2) liabilities Lands and farms 10.89 November 2046 1,761,273 Machines and Equipment’s 10.15 July 2032 214,569 Buildings 10.92 April 2027 41,391 Ships and boats 10.76 February 2039 1,410,474 Vehicles 8.99 April 2020 1,190 3,428,897 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. The rollforward in the balances in the year ended December 31, 2019 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 Current 656,844 Non-current 3,327,226 1) The amount of R$50,795 related to interest expenses on leased lands is capitalized to biological assets to compose the formation cost. The maturity schedule of future payment not discounted to present value related to lease liabilities is disclosed in Note 4.2. 19.2.1. The discount rates applied on new lease agreements for year ended December 31, 2019 are similar to those applied on adoption of IFRS 16. 19.2.2. In the year ended December 31, 2019, were recognized the amounts: Expenses relating to short-term assets 37,007 Expenses relating to low-value assets 14,349 51,356 19.2.3. Operating lease commitments disclosed as of December 31, 2018 1,448,241 Business combination with Fibria 2,974,729 Discounted through a lessee’s incremental loan rate at initial adoption (1,011,726) Reclassification from loans and financing (1) 18,225 Agreements revalued as service agreements (572) 3,428,897 2) As of January 1, 2019, the lease balance was reclassified from "Loans and financing", due to adoption of IFRS 16 by the Company, as disclosed in note 19.2. 19.2.4. On December 18, 2019, the CVM issued a circular memorandum (“Ofício/Circular/CVM/SNC/SEP/nº 02/2019”) containing a guidance on relevant aspects of IFRS 16 to be observed in the preparation of the consolidated financial statements of the lessee companies for the year ended December 31, 2019. As result of the implementation of this guidance, the Company has changed incremental loan rate from the real rate to the nominal rate and has included the sales taxes (PIS and COFINS) in the calculation of lease liabilities. The application of this new accounting guidance represents a new accounting policy. |
PROVISION FOR JUDICIAL LIABILIT
PROVISION FOR JUDICIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
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 financial statements, 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. The rollforward of provisions according to lawsuit natures is set forth below: December 31, December 31, 2019 2018 Judicial deposits Provision Provision, net Provision, net Taxes (124,133) 3,176,503 3,052,370 296,869 Labor (50,464) 227,139 176,675 50,869 Civil 273 283,159 283,432 3,532 (174,324) 3,686,801 3,512,477 351,270 The change in the provision according to the nature of the proceedings is set forth below: December 31, 2019 Civil and Tax Labor environment Total Beginning balance 296,869 50,869 3,532 351,270 Business combination with Fibria (1) 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 10,100 107,224 Monetary adjustment 13,388 31,116 5,257 49,761 Fair value adjustment on business combination with Fibria 2,684,090 — 218,262 2,902,352 Ending balance 3,176,503 227,139 283,159 3,686,801 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. December 31, 2018 Civil and Tax Labor environment Total Beginning balance 273,324 40,363 3,382 317,069 Business combination with Facepa — 1,900 — 1,900 Payments (18,351) (22,580) (81) (41,012) Write-off (13,605) (5,011) (394) (19,010) Additions 49,754 28,716 150 78,620 Monetary adjustment 5,747 7,481 475 13,703 Ending balance 296,869 50,869 3,532 351,270 20.1.1. On December 31, 2019, the Company was a defendant in 43 administrative proceedings as well as tax lawsuits in which the disputed matters related, CSLL, IRRF, PIS, COFINS, ICMS, Tax on Services (“ISS”), 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. 20.1.2. On December 31, 2019, the Company was a defendant in 1,236 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. 20.1.3. On December 31, 2019, the Company is a defendant in approximately 24 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: December 31, December 31, 2019 2018 Taxes (1) 7,504,398 1,077,761 Labor 279,934 85,309 Civil (1) 2,995,576 43,271 10,779,908 1,206,341 1) Amounts net of the fair value adjustment on business combination with Fibria related to possible contingencies, as mentioned above. 20.2.1. The Company is a defendant in 831 tax proceedings whose likelihood of loss is considered possible, in the total amount of R$7,511,435, for which there is no provision was recorded. The other tax lawsuits refer to various taxes, such as IRPJ, CSLL, PIS, COFINS, ICMS, ISS, Withholding Income Tax ("IRRF"), PIS and COFINS, mainly due to differences in interpretation of applicable tax rules and information provided in accessory obligations. The most relevant tax cases are set forth below: (i) Income tax assessment - IRPJ/CSLL - Swap of industrial and forestry assets: In December 2012, the Company received a tax assessment for the collection of income tax and social contribution, alleging unpaid tax on a capital gain in February 2007, closing of the transaction, when the Company executed an agreement with International Paper for the swap of industrial and forestry assets. On January 19, 2016, the Tax Federal Administrative Court (“CARF - Conselho Administrativo de Recursos Fiscais”) rejected as per the casting vote of CARF’s President, the appeal filed by the Company in the administrative process. The Company was notified of the decision on May 25, 2016 and due to the impossibility of new appeal and the consequent closure of the case at the administrative level, decided to continue the discussion with the Judiciary. The Company presented judicial guarantee, which was accepted, and is now awaiting the judgement of the case. We maintain our position to not constitute provisions for contingencies, based on the Company’s and its external legal advisors’ opinion that the probability of loss on this case is possible. The documents have been concluded for judgment since November 25, 2017. The updated amount involved up to December 31, 2019 is R$2,251,462. (ii) Income tax assessment - IRPJ/CSLL - disallowance of depreciation, amortization and depletion expenses – 2010: In December 2015, we received a tax assessment requiring the payment of IRPJ and CSLL, questioning the deductibility of depreciation, amortization and depletion expenses of 2010 included by us in the calculation of income tax expense. We present administrative appeal on the legal period, judged partially valid. The decision was object of voluntary recourse, presented by us in November 2017. On October 16, 2018, the judgement was converted into a diligence, through resolution n. 1402-000723. Currently, the resolution is expected to be formalized. The updated amount involved up to December 31, 2019 is R$695,679. (iii) IRPJ/CSLL - partial approval: The Company requested approval to offset 1997 tax losses with amounts owed to the tax authorities. The authorities approved in March 2009, only R$83,000, which generated a difference of R$51,000. The Company is still awaiting the conclusion of the analysis of the credits discussed at the administrative level following a favorable decision of CARF in August 2019, which granted the Voluntary Appeal filed by the Company. For the remaining credit, the Company has appealed the rejection of the tax credits and obtained a partially favorable decision and the final decision is under discussion in the judicial level. Shortly after, an appeal was filed, which was judged in session, it was determined the conversion of the done in diligence. On November 6, 2018, a decision was filed reinforcing the tax authorities’ conclusion at the first approval and our arguments. The updated amount involved up to December 31, 2019 is R$254,081. (iv) Tax incentive - Agency for the Development of Northeastern Brazil (“ADENE”): In 2002 the Company was granted its request by the Brazilian Federal Revenue Service (“Receita Federal do Brasil”) to benefit from reductions in corporate income tax and non-refundable surcharges calculated on operating profits (as defined) for Aracruz facilities A and B (period from 2003 to 2013) and plant C (period from 2003 to 2012), when the qualification reports for the tax reductions are approved by ADENE. In 2004, the Company was served an Official Notice by the liquidator of the former Superintendence for the Development of the Northeast (“SUDENE”), who reported that, the right to use the benefit previously granted is unfounded and would be cancelled. In 2005, the Brazilian Federal Revenue Service served the Company an assessment notice requiring the payment of the amounts of the tax incentive used, plus interest. After administrative discussion, the assessment notice was partially upheld and recognized the Company’s right to the tax incentive through 2003. The Company's Management, supported by its legal counsel, believes that the decision to cancel the tax benefits is erroneous and should not prevail, either with respect to benefits already used, or with respect to benefits not used until the corresponding final periods. The updated amount involved up to December 31, 2019 is R$125,191. (v) PIS/COFINS – Goods and services – 2009 to 2011: In December 2013, the Company was assessed by the Brazilian Federal Revenue Service demanding the collection of PIS and COFINS credits disallowed because they are not allegedly linked to its operating activities. In the first instance, the objection filed by the Company was dismissed. After the Voluntary Appeal was filed, it was partially provided in April 2016. From this decision, the National Treasury filed a Special Appeal to the Superior Chamber and the Company filed a Statement of Appeal, which are still pending judgment. The updated amount involved up to December 31, 2019 is R$162,750. (vi) Offsetting - IRRF - period 2000: The Company filed a lawsuit for offsetting IRRF credits measured in the year ended December 31, 2000 with debts owed to the Brazilian Federal Revenue Service. In April 2008, the Brazilian Federal Revenue Service partially recognized the credit in favor of the Company. From this decision, the Company filed a Voluntary Appeal with CARF, which is pending judgment. The updated amount involved up to December 31, 2019 is R$108,320. 20.2.2. On December 31, 2019, the Company was a defendant in 1,797 labor lawsuits, totaling R$279,934. The Company also has several lawsuits in which employees’ unions in the states of Bahia, Espírito Santo, Maranhão, São Paulo and Mato Grosso do Sul are included. 20.2.3. On December 31, 2019, the Company is a defendant in approximately 1.059 civil and environmental lawsuits, totaled the amount of R$2,995,576. Most of these civil lawsuits refers to claims for compensation by former employees or third parties for alleged occupational illnesses and workers' compensation, collection lawsuits and bankruptcy situations, reimbursement of funds claimed from delinquent landowners and possessory actions filed in order to protect the Company's equity. The Company has insurance for public liability that covers, within the limits set in the policy, unfavorable sentences in the civil courts for claims for compensation of losses. Regarding civil matters, we are involved in 2 (“two”) Public Civil Claims (“ Ação Civil Pública ”) filed by the Federal Public Prosecution Office requesting (i) a preliminary injunction to prohibit Company’s trucks from transporting wood in federal highways above legal weight restrictions (ii) an increase in the fine for cases of overweight and (iii) compensation for damages to property allegedly caused to federal highways, the environment and the economic order, and compensation for moral damages. One of the Claims was ruled against the Company. Suzano presented an appeal to the Court of Appeals, requesting an interim relief to stay the effects of such ruling until a final decision is reached. We are currently waiting for the ruling on the interim relief by the 1st Regional Federal Court Appeals. The Company is still defendant in a 2 (“two”) Public Civil Claim filed by the Federal Prosecutor’s Office regarding real properties acquired by Company in the northern region of the state of Espírito Santo. In the 1st. the Federal Prosecutor requested (i) the nullity of the deeds (ii) compensation for moral damages and (iii) suspension of financing for Company’s operations in the municipalities of São Mateus and Conceição da Barra, both located in the state of Espírito Santo. A preliminary injunction was granted, which blocked around 6,000 hectares of Company’s land in such municipalities and suspended any financing for Suzano by BNDES for either production or planting of eucalyptus pulp on the properties relating to the Public Civil Claim. In the 2nd, the Federal Prosecutor’s Office, requesting the nullity of the deeds of some other proprieties acquired in the northern of the state of Espírito Santo. A preliminary injunction was granted blocking around 5,601 hectares of Company’s lands in the same municipalities of São Mateus and Conceição da Barra. Suzano presented its judicial defense and an appeal against such injunction, which is still pending decision. Both cases are pending ruling by the Federal District Court of São Mateus and remain in pre-trial phase. The Company believes that are good grounds for our defense since the acquisition of the lands discussed in both Public Civil Claims was made in accordance with applicable laws and practices applicable at the time of purchase. Regarding environmental matters, we are involved in 3 (“three”) relevant Public Civil Claims filed by the Federal Public Prosecution Office in the northeast region of Brazil challenging the State’s environmental agency’s jurisdiction to grant environmental licenses. The Federal Public Prosecution Office alleges that the environmental licensing proceedings related to the forest formation and installation of our industrial plant in the state of Maranhão should be carried out by the Brazilian Federal Environmental Agency (“Agência Federal do Meio Ambiente - IBAMA”). The risks involved in such cases are delays in our plantation schedule and the suspension of the Maranhão unit activities until new permit is issued. Although an injunction was granted on one of this claims suspending the forest formation in a certain region of the State of Maranhão, we believe there are good grounds for our defense, since IBAMA does not acknowledge having jurisdiction to perform the licensing proceedings and there is no clear legal ground to sustain such jurisdiction. Superior court’s is still to rule on an appeal against the injunction granted against Suzano and the other claims are still pending a decision by the trial judge. In addition, we are involved in a dispute related to possible environmental damage in Cubatão city located in the State of São Paulo), allegedly caused by Companhia Santista, a company that was acquired by Ripasa, which in turn was acquired by Suzano in 2008. This lawsuit is ongoing for over 30 (“thirty”) years and involves more than 20 (“twenty”) other companies. The lawsuit seeks reparation for the environmental damage allegedly caused in area under environmental protection of Serra do Mar’s State Park by several companies that maintained activities in the industrial district of Cubatão until the 1990s. On September 2017, the lawsuit was ruled in favor of the plaintiff, sentencing the defendant companies to recover the damages allegedly caused or, should the environment be already recovered, to pay a compensation of equal value of the cost of the recovery. This compensation is to be allocated to expand Serra do Mar’s State Park. The ruling, however, did not determined the amount that should be paid as compensation, leaving the definition of this value to a latter procedural stage. This ruling was contested by the companies on an appeal and a decision by the State Supreme Court is still pending. 20.3. 20.3.1. The Company and its wholly-owned subsidiaries have filed lawsuits to discuss their rights to exclude ICMS from the PIS and COFINS tax basis, comprising periods since March 1992 and comprising, eventual amendments in the regulation after the issuance of Law nº 12,973/2014. Regarding this matter, the Federal Supreme Court (“STF”) ruled on March 15, 2017, at first without the possibility of reversing the understanding on the merits, that the ICMS does not part of the calculation basis of relating contributions. The Federal Government filed an amendment of judgment in October 2017 aiming, among other requests, to modulate the effects of related decision based on the judgment of said amendment of judgment, which are still pending judgment. Based on the decision of the Supreme Court and the legal opinions of its legal advisors, the Company understands that a change in the outcome of the Supreme Court judgment is unlikely. Accordingly, the ICMS was excluded from the calculation basis of such contributions as from August 2018, based on a favorable decision rendered by the Company, still pending final judgment. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 21. EMPLOYEE BENEFIT PLANS 21.1. In 2005, the Company established the Suzano Prev pension plan managed by BrasilPrev, an open private pension entity, which serves employees of Suzano Group Companies, in the defined contribution plan. Under the terms of the benefit plan agreement, the Company’s contributions to the employee are 0.5% of the nominal salary that does not exceed 10 Suzano reference units (“URS”), with no contribution from the employee. For employees whose salary exceeds 10 URS’s, in addition to the contribution of 0.5%, the contributions of the company follow the contributions of employees and apply to the portion of the salary that exceeds 10 URS’s, which may vary from 1% to 6% of the nominal salary. Contributions made by the Company for the period ended December 31, 2019 totaled R$5,993 (R$6,560 as of December 31, 2018) recognized in under employee benefits. Entities from the business combination with Fibria, managed by a private pension entity, which provide post-employment benefits to employees, under defined contribution plans. In this type of plan participants and sponsor contribute to the formation of an individual savings. In 2000, the Company became a sponsor of the Senador José Ermírio de Moraes Foundation (FUNSEJEM), a not-for-profit pension fund for the employees of the Votorantim Group. Under the fund’s regulations, employees’ contributions to FUNSEJEM, which may range from 0.5% to 6% of nominal salary. The contributions for the year ended December 31, 2019 amounted to R$9,920 (R$12,840 as of December 31, 2018), recognized under labor 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 financial statement. 21.2.1. The Company guarantees health care program cost coverage for a group of former employees who retired until 1998 and until 2003 at the Suzano, São Paulo administrative office and Limeira and until 2007 at the Jacareí unit, as well as their spouses for life and dependents while they are underage. For other group of former employees, who exceptionally, according to the Company’s criteria and resolution or according with rights related to the compliance with pertinent legislation, the Company ensures the healthcare program. Main actuarial risks related are (i) lower interest rates (ii) longer than expected mortality tables, (iii) higher than expected turnover and (iv) higher than expected medical costs growth. 21.2.2. The Company offers the life insurance benefit to the group of former employees who retired until 2005 at Suzano and São Paulo administrative office and did not choose for the supplementary retirement plan. Main actuarial risks related are (i) lower interest rates and (ii) higher than expected mortality. 21.2.3. The rollforward of actuarial liability prepared based on actuarial report, are set forth below: Balance at December 31, 2017 351,263 Interest on employee benefits 35,920 Actuarial loss 69,305 Benefits paid in the year (26,061) Balance at December 31, 2018 430,427 Business combination with Fibria (1) 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 1) Business combination with Fibria its subsidiaries held on January 3, 2019, Note 1.2.1. 21.2.4. The main economic actuarial assumptions and biometric data used in the actuarial calculations are set forth below: December 31, December 31, 2019 2018 Discount rate – medical assistance and life insurance 3.56% p.a. 4.91% p.a. Medical cost growth rate above basic inflation 3.25% p.a. 3.25% p.a. Economic inflation 3.50% p.a. 4.00% p.a. Biometric table of general mortality AT-2000 AT-2000 Biometric table of mortality of disable persons IAPB 57 IAPB 57 Retirement age 65 years 65 years Family composition 90% married 90% married Turnover 1.00% p.a. 1.00% p.a. Permanency in the plan Aging factor 0 to 24 years: 1.50% p.a 0 to 24 years: 1.50% p.a 21.2.5. The Company made the sensitivity analysis regarding the relevant assumptions of the plans on December 31, 2019, as set forth below: Relevant assumptions Changes in premise Increase in premisse Decrease in premisse Discount rate Decrease of 4.88% Increase of 8.56% Medical costs growth rate Increase of 8.27% Decrease of 5.60% Mortality Increase of 7.23% Decrease of 4.40% Estimated inflation rate No change No change 21.2.6. The following amounts represent the expected benefit payments for future years (10 years), from the obligation of benefits granted and the average duration of the plan obligations: Medical assistance and Payments life insurance 2020 31,458 2021 32,701 2022 33,864 2023 35,014 2024 36,122 2025 on onwards 194,145 |
SHARE-BASED COMPENSATION PLAN
SHARE-BASED COMPENSATION PLAN | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION PLAN | |
SHARE-BASED COMPENSATION PLAN | 22. SHARE-BASED COMPENSATION PLAN On December 31, 2019, 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. 22.1 Long term compensation plans (“PS and SAR”) Certain executives and key members of the Management have a long-term compensation plan linked to the share price with payment in cash. Throughout 2019, the Company granted the SAR and PLUS (Share Appreciation Rights) (“SAR”) plans of phantom stock options. In this plan, the beneficiaries should invest 5% of the total amount corresponding to the number of options of phantom shares at the grant date and 20% after 3 (three) years to acquire the option. The Company also granted long-term incentive plans to its key members as part of its retention policy. In this program, the beneficiary does not make any investment. The vesting period of options may vary from 3 (three) to 5 (five) years, as of the grant date, in accordance with the characteristics of each plan. The price of the share is calculated based on the average share quote of the 90 previous trading sessions starting from the closing quote on the last business day of the month prior to the month of the grant. The installments of these programs will be adjusted by the variation in the price of the SUZB3 at B3, between the granting and the payment period. On dates when the SUZB3 shares is not traded, the quote of the previous trading session will be considered. The phantom share options will only be due if the beneficiary is an employee of the Company on the payment date. In case of termination of the employment by initiative of the Company or by initiative of the beneficiary, before the vesting period is completed, the executive will not be entitled to receive all benefits, unless otherwise established in the agreements. December 31, December 31, December 31, 2019 2018 2017 Number of shares Beginning balance 5,045,357 5,055,519 3,048,991 Granted during of the year 2,413,038 1,415,476 3,035,488 Exercised (1) (827,065) (751,859) (695,532) Exercised due to resignation (1) (106,983) (153,601) (161,270) Abandoned / prescribed due to resignation (527,910) (520,178) (172,158) Ending balance 5,996,437 5,045,357 5,055,519 1) For share options exercised and those exercised due to termination of employment, the average price on December 31, 2019 and December 31, 2018 was R$31.75 and R$47.77, respectively. On December 31, 2019, the consolidated outstanding phantom shares option plans are as set forth below: December 31, 2019 Quantity of Fair value on outstanding Plan Grant date Exercise date grant date (1) options granted SAR 2015 01/04/2015 01/04/2020 11.69 3,635 Deferral 2015 01/03/2016 01/03/2019 16.93 — Deferral 2015 01/03/2016 01/03/2020 16.93 61,851 SAR 2016 01/04/2016 01/04/2021 15.96 64,075 PLUS 2016 01/04/2016 01/04/2021 15.96 16,708 SAR 2016 - Oct 03/10/2016 03/10/2021 11.03 8,934 SAR 2017 03/04/2017 03/04/2022 13.30 831,546 PLUS 2017 03/04/2017 03/04/2022 13.30 225,553 ILP 2017 - 36 03/04/2017 03/04/2020 13.30 304,512 ILP 2017 - 48 03/04/2017 03/04/2021 13.30 304,512 ILP 2017 - 60 03/04/2017 03/04/2022 13.30 304,512 ILP 2017 - CAB 01/05/2017 01/05/2020 13.30 307,141 ILP 2017 - 36 Oct 02/10/2017 02/10/2020 15.87 84,436 Deferral 2017 01/03/2018 01/03/2021 19.88 169,575 Deferral 2017 01/03/2018 01/03/2022 19.88 169,575 SAR 2018 02/04/2018 02/04/2023 21.45 726,537 PLUS 2018 02/04/2018 02/04/2023 21.45 74,592 ILP 2019 - 24 01/03/2019 01/03/2024 41.10 520,000 ILP 2019 - 36 01/03/2019 01/03/2024 41.10 520,000 Deferral 2018 01/03/2019 01/03/2022 41.10 92,356 Deferral 2018 01/03/2019 01/03/2023 41.10 92,356 ILP 2019 - 36 H 25/03/2019 25/03/2024 42.19 7,500 ILP 2019 - 48 H 25/03/2019 25/03/2024 42.19 7,500 ILP 2019 - 24 Apr 01/04/2019 01/04/2024 42.81 20,000 ILP 2019 - 36 Ar 01/04/2019 01/04/2024 42.81 20,000 SAR 2019 01/04/2019 01/04/2024 42.81 792,565 PLUS 2019 01/04/2019 01/04/2024 42.81 15,572 ILP - Retention 2019 - 12 01/10/2019 01/10/2020 31.86 105,964 ILP - Retention 2019 - 24 01/10/2019 01/10/2021 31.86 105,930 ILP 2019 - 24 Oct 01/10/2019 01/10/2021 31.75 7,800 ILP 2019 - 36 Oct 01/10/2019 01/10/2022 31.75 19,500 ILP 2019 - 48 Oct 01/10/2019 01/10/2023 31.75 11,700 5,996,437 (1) Amounts expressed in Reais. 22.2 Common stock option plan Additionally, in 2019 the Company established a Restricted Shares plan based on the Company's performance (Program 5). The Plan associates the quantity of Restricted Shares granted to the Company's performance in relation to the EBITDA mark. The quantity of the restricted stock granted is defined in financial terms and is subsequently converted into shares based on the last 60 (sixty) stock exchange trading days on December 31, 2019 of SUZB3 at B3. After measurement of 2019 EBITDA, the Restricted Shares will be granted immediately, as they not have to comply to the vesting period. However, the beneficiaries of the grant must comply to the lockup period of thirty-six (36) months during which they will not be able to market the shares. In the event that the beneficiaries leave the Company before the end of the fiscal year for the measurement of EBITDA, they will lose the right to the grant of Restricted Share. 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 Measurement assumptions In the case of the phantom shares plan, since the settlement is in cash, the fair value of options is remeasured at the end of each period based on the Monte Carlo Method (“MMC”), which is multiplied by the Total Shareholder Return (“TSR”) in the period (which varies between 75% and 125%, depending on the performance of SUZB3 in relation to its peers in Brazil). The fair value of the plan of common shares of Program V, was estimated based on the binomial probability model, which considers the dividends distribution rate and the following assumptions: (i) the expectation of volatility was calculated for each exercise date, considering the remaining time to complete the vesting year, as well as the historical volatility of returns, considering a standard deviation of 745 observations of returns; (ii) the expectation of average life of phantom stocks and stock options was defined by the remaining term until the limit exercise date; (iii) the expectation of dividends was defined based on historical earnings per share of the Suzano; (iv) risk-free weighted average interest rate used was the Brazilian Reais yield curve (DI expectation) observed on the open market, which is the best comparison basis with the Brazilian market risk-free interest rates. The rate used for each exercise date changes according to the vesting year. The amounts corresponding to the services received and recognized in the consolidated financial statements are set forth below: Liabilities and equity Income Statement December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2017 Non-current liabilities Provision for phantom stock plan 136,505 124,318 (46,389) (126,439) (32,192) Shareholders' equity Stock option granted 5,979 5,100 (879) (5,170) (1,521) Total general and administrative expenses from share-based transactions (47,268) (131,609) (33,713) |
LIABILITIES FOR ASSETS ACQUISIT
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2019 | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | 23 LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES December 31, December 31, 2019 2018 Lands and forests acquisition Real estate receivables certificates (1) 78,345 91,085 Duratex (2) — 385,397 78,345 476,482 Business combination Facepa (3) 42,533 41,185 Vale Florestar Fundo de Investimento em Participações ("VFFIP") (4) 420,737 474,845 463,270 516,030 541,615 992,512 Current liabilities 94,414 476,954 Non-current liabilities 447,201 515,558 1) Refers to obligations with the acquisition of land, farms, reforestation and houses built in Maranhão, restated by the IPCA. 2) Refers to the commitments related to the acquisition of rural properties and forests (biological assets), restated by the IPCA settled in August 2019. 3) 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. 4) 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. |
LONG-TERM COMMITMENTS
LONG-TERM COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM COMMITMENTS | |
LONG-TERM COMMITMENTS | 24 The Company entered into long-term take-or-pay agreements with pulp, transportation, diesel, and chemical and natural gas suppliers. These agreements contain termination and supply interruption clauses in the event of default of certain essential obligations. Generally, the Company purchases the minimum agreed under the agreements, hence there is no liability recorded at December 31, 2019. The total contractual obligations assumed at December 31, 2019 equivalent to R$7,335,609 per year (R$11,258,885 at December 31, 2018). |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 25 25.1 Share capital In January 2019, the Company's share capital was increased in the amount of R$3,027,528, with the issuance of 255,437,439 registered common shares, with no par value, in accordance with resolutions adopted at the Extraordinary Shareholders’ Meeting, which the incorporation by the Company its subsidiary Eucalipto Holding S.A. was approved in connection with the business combination with Fibria, as described in Note 1.2.1. On December 31, 2019, the share capital of Suzano is R$9,269,281 divided into 1,361,263,584 common shares, all nominative, book-entry shares without par value. The value of 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 194,800,797 14.31 Managements 35,532,742 2.61 Alden Fundo de Investimento em Ações 26,154,741 1.92 624,100,609 45.85 Treasury 12,042,004 0.88 BNDESPAR 150,217,425 11.04 Votorantim S.A. 75,180,059 5.52 Other shareholders 499,723,487 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. On December 31, 2019, SUZB3 common shares ended the year quoted at R$39.68 (R$38.08 on December 31, 2018). 25.2 Dividends The Company´s bylaws establishes that the minimum annual dividend is the lowest value between: (i) 25% of adjusted net income for the year pursuant to Article 202 of Brazilian Law nº.6,404/76, or (ii) 10% of the Company's consolidated operating cash generation for the year. On April 18, 2019, on Ordinary Shareholders’ Meeting was approved a payment of dividends in the amount of R$600,000, being complementary in the amount of R$596,534 paid through the reserve of profits and minimum mandatory dividends in the amount of R$3,466, the disbursement occurred on April 30, 2019. On December 31, 2019, no dividends were distributed as the Company presented a loss in the year (R$3,466 on December 31, 2018 as the Company presented a profit). 25.3 Reserves 25.3.1 They are constituted by the allocation of the Company's profits, after the allocation for the payment of the minimum mandatory dividends and after the allocation to the various profit reserves, as set forth below: (i) legal: it is measured based on 5% (five percent) of net profit of each fiscal year as specified in article 193 of Brazilian Law nº.6,404/76, which shall not exceed 20% (twenty percent) of the share capital, whereas in the year in which the balance of the legal reserve plus the capital reserve amounts exceeds 30% (thirty percent) of the share capital, the allocation of part of the profit will not be mandatory. The use of this reserve is restricted to loss compensation and capital increase and aims to ensure the integrity of the share capital. On December 31, 2019, this reserve absorbed R$105,671 related of loss and corresponds to 5% of share capital. (ii) capital increase: it is measured basis of up to 90% (ninety percent) of the remaining balance of net income for the year and limited to 80% (eighty percent) of the share capital, pursuant to the Company's Bylaws, after the allocation to the legal reserve and minimum mandatory dividends. The constitution of this reserve aims to ensure to the Company adequate operating conditions. On December 31, 2019, this reserve absorbed R$1,730,629 related of loss and was used in full. (iii) special statutory: it is measured basis of up to 10% (ten percent) of the remaining balance of net income for the year and aims to ensure the continuity of the semiannual distribution of dividends, up to the limit of 20% (twenty percent) of the share capital. On December 31, 2019, this reserve absorbed R$242,612 related of loss and was used in full. (iv) tax incentives: it is measured as specified in article 195-A of the Brazilian Law No. 6,404/76, modified by Brazilian Law nº.11,638/07, based on donation or the amounts of government grants for investment. On December 31, 2019 this reserve absorbed R$684,563 and was used in full. 25.3.2 They consist of amounts received by the Company arising from transactions with shareholders that do not pass through the income statement and may be used to absorb losses when they exceed profit reserves and redemption, reimbursement and purchase of shares. The breakdown of capital reserves is arising from stock options in the amount of R$5,979 and the issuance of shares related to the business combination with Fibria in the amount of R$6,410,885, as disclosed in note 1.2.1.1. As of December 31, 2019, this reserve was not used to absorb losses and the balance corresponded to 69% of the share capital. 25.4 These are changes that occur in shareholders' equity arising from transactions and other events that do not originate with shareholders and are disclosed net of tax effects, as set forth below: Exchange variation on conversion of financial Debenture statements of conversion Actuarial gain foreign Deemed 5th issue (loss) subsidiaries cost Total Balances at December 31, 2017 (45,745) (52,749) 26,622 2,370,200 2,298,328 Actuarial gain (loss) — (45,741) — — (45,741) Gain (loss) on conversion of financial statements and on foreign investments — — 137,546 — 137,546 Realization of deemed cost, net of taxes — — — (68,424) (68,424) Balances at December 31, 2018 (45,745) (98,490) 164,168 2,301,776 2,321,708 Actuarial gain (loss) — (95,283) — — (95,283) Gain (loss) on conversion of financial statements and on foreign investments — — 47,834 — 47,834 Realization of deemed cost, net of taxes — — — (52,918) (52,918) Balances at December 31, 2019 (45,745) (193,773) 212,002 2,248,858 2,221,342 25.5 Average cost Historical Market Quantity per share value value Balances at December 31, 2017 13,842,004 17.42 241,088 258,797 Sale (1,800,000) 12.68 (22,823) (66,636) Balances at December 31, 2018 12,042,044 18.13 218,265 458,560 Balances at December 31, 2019 12,042,044 18.13 218,265 477,827 25.6 Result Reserve Limit on absorption balances share December 31, December 31, December 31, December 31, capital% 2019 2018 2019 2018 Realization of deemed cost, net of taxes (52,918) (68,424) — — Tax incentive reserve (684,563) 288,557 — 684,563 Special statutory reserve (242,612) 7,882 — 242,612 Legal reserve (105,671) 15,917 317,144 422,815 Capital increase reserve (1,730,629) 70,940 — 1,730,629 Minimum mandatory dividends — 3,466 — — (2,816,393) 318,339 317,144 3,080,619 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 26 EARNINGS (LOSS) PER SHARE 26.1 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 year, excluding the common shares acquired by the Company and held as treasury shares. December 31, December 31, December 31, 2019 2018 2017 Resulted of the year attributable for controlling shareholders' (2,817,518) 319,693 1,820,994 Weighted average number of shares in the year 1,361,264 1,105,826 1,106,297 Weighted average treasury shares (12,042) (12,333) (14,597) Weighted average number of outstanding shares 1,349,222 1,093,493 1,091,700 Basic loss per common share - R$ (2.08825) 0.29236 1.66804 26.2 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. December 31, December 31, December 31, 2019 2018 2017 Resulted of the year attributed to controlling shareholders' (2,817,518) 319,693 1,820,994 Weighted average number of shares in the year (except treasury shares) 1,349,222 1,093,493 1,091,700 Adjustment by stock options — 1,386 2,428 Weighted average number of shares (diluted) 1,349,222 1,094,879 1,094,128 Diluted loss per common share - R$ (2.08825) 0.29199 1.66433 Due to the loss in the year, the Company does not consider the dilution effect in the measurement. |
NET FINANCIAL RESULT
NET FINANCIAL RESULT | 12 Months Ended |
Dec. 31, 2019 | |
NET FINANCIAL RESULT | |
NET FINANCIAL RESULT | 27 NET FINANCIAL RESULT December 31, December 31, December 31, 2019 2018 2017 Financial expenses Interest on loans, financing and debentures (1) (3,358,806) (1,033,485) (988,382) Amortization of fundraising costs (220,642) (44,499) (49,517) Other financial expenses (600,948) (422,390) (180,577) Amortization of fair value adjustment on business combination with Fibria 1,548 (4,178,848) (1,500,374) (1,218,476) Financial income Marketable securities 392,018 442,378 285,888 Other financial income 63,816 17,329 19,890 Amortization of fair value adjustment on business combination with Fibria 37,412 493,246 459,707 305,778 Income from derivative financial instruments Income 2,711,394 588,049 332,961 Expenses (3,786,646) (3,323,245) (259,690) (1,075,252) (2,735,196) 73,271 Monetary and exchange rate variation, net Exchange rate variation on loans, financing and debentures (1,764,035) (1,311,061) (163,418) Monetary and exchange rate variations - other assets and liabilities (2) (200,892) 244,411 (15,995) (1,964,927) (1,066,650) (179,413) (6,725,781) (4,842,513) (1,018,840) 1) Not include the amount of R$4,213 arising from capitalized interest in the year ended on December 31, 2019 (R$1,772 in the year ended on December 31, 2018). Additionally, included the amount of R$770 related to interest of FIDC (R$2,268 in the year ended on December 31, 2018). 2) Includes effects of exchange rate variations of customers, suppliers, cash and cash equivalents, marketable securities and others. |
NET SALES
NET SALES | 12 Months Ended |
Dec. 31, 2019 | |
NET SALES | |
NET SALES | 28 NET SALES December 31, December 31, December 31, 2019 2018 2017 Gross sales 31,395,955 14,802,821 11,752,459 Sales deductions Adjustment to present value (5,316) (4,984) — Returns and cancelations (109,641) (75,477) (50,199) Discounts and rebates (1) (3,835,140) (15,695) (6,589) 27,445,858 14,706,665 11,695,671 Taxes on sales (2) (1,432,908) (1,263,289) (1,114,998) Net sales 26,012,950 13,443,376 10,580,673 1) The customer contracts of Fibria, a wholly-owned subsidiary incorporated on April 1, 2019, provide for contractual discounts that were maintained and that, therefore, impacted the Company's income in 2019. 2) In 2018, included the social contribution to the National Institute of Social Security (“INSS”), which represents 2.5% of the gross sales revenue in the domestic market. This is a tax obligation pursuant to Law nº. 12.546/11, article 8, Appendix I and their respective amendments. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 29 SEGMENT INFORMATION 29.1 Criteria for identifying operating segments The Company evaluates the performance of its business segments through the operating result. The information disclosed under “Not Segmented” is related to income statement and balance sheet items not directly attributed to the pulp and paper segments, such as, net financial result and income and social contribution taxes expenses, in addition to the balance sheet classification items of assets and liabilities. The operating segments defined by Management are set forth below: i) Pulp: comprises production and sale of hardwood eucalyptus pulp and fluff pulp mainly to supply the foreign market, with any surplus sold in the domestic market. ii) Paper: comprises production and sale of paper to meet the demands of both domestic and foreign markets. Consumer goods (tissue) sales are classified under this segment due to its immateriality. 29.2 Information of operating segments December 31, 2019 Not Pulp Paper segmented Total Net sales 21,027,686 4,985,264 — 26,012,950 Domestic market (Brazil) 1,833,936 3,480,279 — 5,314,215 Foreign market 19,193,750 1,504,985 — 20,698,735 Asia 9,605,799 136,882 — 9,742,681 Europe 5,950,832 221,697 — 6,172,529 North America 3,592,563 382,628 — 3,975,191 South and Central America 44,556 710,086 — 754,642 Africa — 53,692 — 53,692 Cost of sales (17,440,018) (3,303,464) — (20,743,482) Gross profit 3,587,668 1,681,800 — 5,269,468 Gross margin (%) 17.1 % 33.7 % — 20.3 % Operating income (expenses) (2,089,286) (679,719) 128,115 (2,640,890) Selling (1,503,775) (401,504) — (1,905,279) General and administrative (806,774) (366,584) — (1,173,358) Other operating, net 209,577 68,062 128,115 405,754 Income from associates and joint ventures 11,686 20,307 — 31,993 Operating profit before net financial income ("EBIT") (1) 1,498,382 1,002,081 128,115 2,628,578 Operating margin (%) 7.1 % 20.1 % 10.1 % Financial result, net — — (6,725,781) (6,725,781) Net income (loss) before taxes 1,498,382 1,002,081 (6,597,666) (4,097,203) Income taxes — — 1,282,461 1,282,461 Net income (loss) for the year 1,498,382 1,002,081 (5,315,205) (2,814,742) Profit (loss) margin for the year (%) 7.1 % 20.1 % — (10.8) % Result of the year attributable to controlling Shareholders (5,317,981) (2,817,518) Result of the year attributed to non-controlling shareholders — — 2,776 2,776 Depreciation, depletion and amortization 7,575,630 516,301 — 8,091,931 1) Earnings before interest and tax. December 31, 2018 Not Pulp Paper segmented Total Net sales 4,660,102 — 13,443,376 Domestic market (Brazil) 744,566 3,307,074 — 4,051,640 Foreign market 8,038,708 1,353,028 — 9,391,736 Asia 3,837,998 101,695 — 3,939,693 Europe 2,810,899 225,111 — 3,036,010 North America 1,340,907 210,831 — 1,551,738 South and Central America 48,904 774,730 — 823,634 Africa 40,661 — 40,661 Cost of sales (3,965,912) (2,956,419) — (6,922,331) Gross profit 1,703,683 — 6,521,045 Gross margin (%) 54.8 % 36.6 % — 48.5 % Operating income (expenses) (626,887) (886,347) — (1,513,234) Selling expenses (212,869) (385,857) — (598,726) General and administrative expenses (275,859) (549,350) — (825,209) Other operating income (expenses), net (138,159) 41,284 — (96,875) Income from associates and joint ventures — 7,576 — 7,576 Operating profit before net financial income (1) 4,190,475 817,336 — 5,007,811 Operating margin (%) 47.7 % 17.5 % — 37.3 % Financial result, net — — (4,842,513) (4,842,513) Net income (loss) before taxes 4,190,475 817,336 (4,842,513) 165,298 Income taxes — — 154,516 154,516 Net income (loss) for the year 4,190,475 817,336 (4,687,997) 319,814 Profit margin for the year (%) 47.7 % 17.5 % — 2.5 % Result of the year attributable to controlling shareholders (4,688,118) Result of the year attributed to non-controlling shareholders — — Depreciation, depletion and amortization 1,105,381 457,842 — 1,563,223 1) Earnings before interest and tax. December 31,2017 Not Pulp Paper segmented Total Net sales revenue 6,920,494 3,660,179 — 10,580,673 Domestic market (Brazil) 624,320 2,597,838 — 3,222,158 Foreign market 6,296,174 1,062,341 — 7,358,515 Asia 2,976,504 32,950 — 3,009,454 Europe 2,262,162 139,572 — 2,401,734 North America 966,789 254,971 — 1,221,760 South and Central America 90,719 608,445 — 699,164 Africa — 26,403 — 26,403 Cost of sales (3,937,036) (2,559,268) — (6,496,304) Gross profit 2,983,458 1,100,911 — 4,084,369 Gross margin (%) 43.1 % 30.1 % — 38.6 % Operating income (expenses) (104,985) (749,449) 48,517 (805,917) Selling (163,879) (259,446) — (423,325) General and administrative (185,141) (343,833) — (528,974) Other operating, net 244,035 (152,042) 48,517 140,510 Income from associates and joint ventures — 5,872 — 5,872 Operating profit before net financial income ("EBIT") (1) 2,878,473 351,462 48,517 3,278,452 Operating margin (%) 41.6 % 9.6 % — 31.0 % Financial result, net — — (1,018,840) (1,018,840) Net income (loss) before taxes 2,878,473 351,462 (970,323) 2,259,612 Income taxes — — (438,618) (438,618) Net income (loss) for the year 2,878,473 351,462 (1,408,941) 1,820,994 Profit (loss) margin for the year (%) 41.6 % 9.6 % — 17.2 % Result of the year attributable to controlling shareholders 2,878,473 351,462 (1,408,941) 1,820,994 Depreciation, depletion and amortization 1,007,280 395,498 — 1,402,778 1) Earnings before interest and tax. 29.3 Net sales by product The following table set forth the breakdown of consolidated net sales by product: December 31, December 31, December 31, Products 2019 2018 2017 Market pulp (1) 21,027,686 8,783,274 6,920,494 Printing and writing paper (2) 4,100,502 3,834,380 2,265,093 Paperboard 823,360 764,701 1,273,540 Other 61,402 61,021 121,546 Net sales 26,012,950 13,443,376 10,580,673 1) Revenue from fluff pulp represents (around 1% 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% of total net sales. Therefore, it was included in the sales of printing and writing paper. 29.4 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: December 31, December 31, 2019 2018 Pulp 7,942,486 45,752 Consumer goods 119,332 112,582 8,061,818 158,334 |
EXPENSES BY NATURE
EXPENSES BY NATURE | 12 Months Ended |
Dec. 31, 2019 | |
EXPENSES BY NATURE | |
EXPENSES BY NATURE | 30 EXPENSES BY NATURE December 31, December 31, December 31, 2019 2018 2017 Cost of sales (1) Personnel expenses (1,374,331) (649,741) (546,090) Variable cost (10,067,716) (3,197,895) (2,994,349) Logistics cost (2,776,021) (1,044,899) (963,379) Depreciation, depletion and amortization (4,290,308) (1,523,935) (1,367,856) Amortization of fair value adjustment on business combination with Fibria and Facepa (2,844,741) — — Other 609,635 (505,861) (624,630) (20,743,482) (6,922,331) (6,496,304) Selling expenses Personnel expenses (215,640) (145,844) (106,083) Services (85,161) (78,227) (45,593) Logistics cost (618,089) (297,129) (220,944) Depreciation and amortization (84,018) (4,471) (3,547) Amortization of fair value adjustment on business combination with Fibria (820,730) — — Other (2) (81,641) (73,055) (47,158) (1,905,279) (598,726) (423,325) General and Administrative expenses Personnel expenses (642,543) (469,661) (309,019) Services (323,841) (235,544) (105,522) Depreciation and amortization (52,830) (34,817) (31,375) Amortization of fair value adjustment on business combination with Fibria 26,609 — — Other (3) (180,753) (85,187) (83,058) (1,173,358) (825,209) (528,974) Other operating (expenses) income net Rents and leases 5,805 — — Result from sale of other products, net (4) 15,229 8,785 4,765 Result from sale and disposal of property, plant and equipment and biological assets, net (63,454) 4,523 4,700 Result on fair value adjustment of biological assets 185,399 (129,187) 192,504 Partial write-off of intangible assets — — (18,845) Provision for loss and write-off of property, plant and equipment and biological assets — (18,103) (66,707) Amortization of intangible assets (8,193) (9,947) (8,303) Receipt of royalties — — 2,603 Judicial agreements — — 20,231 Land conflict agreement — — (11,779) Insurance reimbursement 7,917 — — Trade agreement credits (5) 87,000 51,846 10,671 Provision for loss of judicial deposits (3,284) — — Amortization of fair value adjustment on business combination with Fibria, Facepa and Ibema (12,143) — — Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) (6) 128,115 335 5,613 Other operating income (expenses), net 63,363 (5,127) 5,057 405,754 (96,875) 140,510 1) Includes the amount of R$615,394, related to idle capacity and maintenance downtime. 2) Includes expected credit losses, insurance, materials of use and consumption, expenses with travel, accommodation, participation in trade fairs and events. 3) Includes corporate expenses, insurance, materials of use and consumption social projects and donations, expenses with travel and accommodation. 4) Includes depletion from wood sold in the amount of R$5,598 (On December 31, 2018 R$9,869). 5) The amount refers to the receipt of credits from compulsory loans discussed in lawsuits against Centrais Elétricas Brasileiras S.A. (Eletrobrás). 6) For further information see Note 9. |
INSURANCE COVERAGE
INSURANCE COVERAGE | 12 Months Ended |
Dec. 31, 2019 | |
INSURANCE COVERAGE | |
INSURANCE COVERAGE | 31 INSURANCE COVERAGE The Company has insurance coverage for operational risks, with a maximum coverage of R$8,822,000. Additionally, the Company has insurance coverage for civil general liabilities in the amount of U.S.$20,000,000 corresponding to R$80,614,000 on December 31, 2019. Company's Management considers these amounts adequate to cover any potential liability, risks and damages to its assets and loss of profits. The Company does not have insurance coverage for its forests. To mitigate the risk of fire, the Company maintains internal fire brigades, a watchtower network, and a fleet of fire trucks. There is no history of material losses from forest fires. The Company has a domestic and international transportation insurance policy effective through May 2020, renewable for additional 12 months. In addition, it has insurance coverage for civil responsibility for Directors and Executives for amounts considered adequate by Management. The assessment of the sufficiency of insurance coverage is not part of the scope of the examination of the financial statements by our independent auditors. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 32 32.1 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 to R$3,426,095), with a term of six years. This transaction is fully and unconditionally guaranteed by Suzano S.A. On February 14, 2020, Suzano, through its wholly-owned subsidiary Suzano Pulp and Paper Europe S.A., voluntarily prepaid the principal amount of U.S.$750,000 (equivalent to R$3,023,025), related to a syndicated export prepayment agreement entered into on February 7, 2018, with quarterly interest payments of 1.15% p.a. plus quarterly LIBOR, which was scheduled to mature in February 2023. 32.2 On February 28, 2020 the Company informed its shareholders and the market that on that date, 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 US$189,630. Suzano Trading notified the holders of the 2021 Notes of its intention to redeem all the outstanding 2021 Notes and pay the related make-whole premium calculated in accordance with the terms. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Lease - IFRS 16 | 3.1.1. The Company adopted IFRS 16 as of January 1, 2019. This standard determines that lessees must recognize future liabilities in their liabilities and their right to use the leased asset for all lease agreements, with exemption allowed to short-term or low-value contracts. Short-term or low-value contracts for the exemption of the standard refers to contracts where the individual value of the assets is lower than U.S.$5 and maturity date is before 12 months, represented, mainly, by equipment of technology and vehicles. The Company adopted the standard using a modified retrospective approach that does not require the restatement of the comparative balances. In adopting IFRS 16, the Company recognized the gross PIS/COFINS lease liabilities in relation to the agreements that meet the definition of lease, whose liabilities were measured at the present value of the remaining lease payments, discounted based on the incremental loan nominal rate. Assets associated with the right of use were measured at the amount equal to the lease liability on January 1st, 2019, with no impact on retained earnings. The Company used the following practical expedients allowed by the standard: (i) (ii) (iii) (iv) (v) The effects of adopting this new standard are set forth in note 19. |
Uncertainty over Income Tax Treatments - IFRIC 23 | 3.1.2. The interpretation is applicable when there are uncertainties as to the acceptance of the treatment by the Fiscal Authority. If acceptance is not likely, the values of tax assets and liabilities should be adjusted to reflect the best resolution of the uncertainty. The Company has evaluated the changes introduced by this new standard and based on the analysis carried out, did not identify material impacts on its consolidated financial statements, or modify the recognition and measurement of uncertainties about tax treatment of income. |
Fair value amortization of subsidiaries | 3.1.3. Fair value amortization of assets and liabilities are classified in cost of goods sold, selling, general and administrative expenses, other operating income (expenses) net and financial result, according to the realization of the items that originated them. |
Comparability of the statement of cash flows | 3.1.4. The Company made certain reclassifications on its statements of cash flows regarding the year ended December 31, 2018 and 2017, substantially in operating activities, for a better comparison with the Statements of cash flows for the year ended December 31, 2019. |
Revaluation of investment - Ensyn and Spinnova Oy | 3.1.5. Ensyn and Spinnova investments were previously classified as financial investment measured through other comprehensive income. However, respectively in the second and third quarter of 2019, based on the shareholders’ agreement and recent capital contribution to Ensyn and Spinnova, the Company increased their stake in these investments and obtained significant influence. Therefore, respectively, as from the second and third quarter of 2019, the Company has recorded their investments prospectively under the equity method using the fair value as deemed cost’ method, with the consequent presentation of the investment under “Investments in subsidiaries, affiliates, joint operations and joint ventures” and no longer under “Other investments”, as disclosed in note 14.2. In relation to Ensyn, the Company identified and recorded a goodwill based on expected future profitability in the amount of U.S.$40,049 (equivalent to R$154,578), arising from the difference of the consideration paid of U.S.$43,000 (equivalent to R$165,928) and the carrying amount of the net assets of the investee of U.S.$2,941 (equivalent to R$11,350). In relation to Spinnova, the Company identified a bargain purchase in this transaction in the amount of EUR6,748 (equivalent to R$32,705), arising from the difference of the consideration paid of EUR12,500 (equivalent to R$55,928) and the carrying amount of the net assets of the investee of EUR19,248 (equivalent to R$87,915). |
Biological assets | 3.1.6. The Company's biological assets are eucalyptus forests exclusively from renewable plantations and intended for the production process of pulp and paper, measured at fair value less estimated cost to sell at the time of harvest. Fair value measurement is performed on a semiannually basis, since Management understand that its interval is enough, so that, there is no significant gap in the fair value of biological assets recorded in the consolidated financial statements and uses the discounted cash flow method according to the projected productivity cycle of such assets. Considering that Suzano and Fibria used different assumptions to the biological assets fair value, in the first measurement after business combination, the Company reviewed the assumption for “effective planting area”, keeping the immature forest (up to 2 years from the date of planting) at historical cost. As a result of the Management’s considers that during this period, the historical cost of biological assets approximates to its fair value. Additionally, the purpose of this change is to reflect the experience acquired in the biological assets measurements process and the alignment of calculation approach with the Company’s forest management, which perform continuous forest inventories for the purpose of estimating the wood stock or future production forecast, represented by the average annual increment (“IMA”), from the 3rd year of planting. Considering the fact that in the first two years of forest formation, the historical cost approximates to its fair value, as described above, this assumption alignment did not generate significant impacts on the Company's financial statements. There are no changes in the remaining assumptions. The gain or loss on the variation of the fair value of the biological assets is recognized under other operating income (expenses), net. The value of the depletion is measured based on the amount of the biological asset depleted (harvested). Significant assumptions applied in determining on the biological assets of fair value measurements are disclosed in Note 13. |
Income tax - IAS 12 | 3.1.7. This pronouncement was amended and clarifies that the income tax consequences of dividends on financial instruments classified as equity should be recognized according to where the past transactions or events that generated distributable profits were recognized. These requirements apply to all income tax consequences of dividends. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Borrowing costs -IAS 23 | 3.1.8. This pronouncement was amended and clarifies that if a specific borrowing remains outstanding after the related qualifying asset is ready for its intended use or sale, it becomes part of general borrowings. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Business combinations -IFRS 3 | 3.1.9. This pronouncement was amended and clarifies that obtaining control of a business that is a joint operation, is a business combination achieved in stages. The acquirer should re-measure its previously held interest the joint operation at fair value at the acquisition date. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Joint arrangements -IFRS 11 | 3.1.10. This pronouncement was amended and clarifies that the party obtaining joint control of a business that is a joint operation should not re-measure its previously held interest in the joint operation. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Employee benefits - IAS 19 | 3.1.11. This pronouncement was amended and clarifies that, when occur an event of amendment, curtailment or settlement related to a defined benefit, the entity must update the previously used and remeasured the current service cost and the net interest for the remaining period, after amendments. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Investment in associates - IAS 28 | 3.1.12. IFRS 9 - Financial Instruments excluded from its scope equity interests in associates and joint ventures, which are accounted for using the equity method in accordance with IAS 28. The amendment to IAS 28 clarified that the aforementioned scope exclusion in IFRS 9 applies only to investment elements that are accounted for using the equity method. Accordingly, the accounting of long-term financial instruments with an associate or joint venture which, in substance, is part of the net investment in these investees, but for which the equity method does not apply, must follow the requirements of the IFRS 9. The Company assessed the content of this pronouncement and did not identify any material impacts. |
Consolidated financial statements | 3.2.1. The consolidated financial statements were prepared based on the information of Suzano and its subsidiaries in the year ended December 31, 2019, as well as in accordance with consistent accounting practices and policies, except to Futuragene PLC, which period end is November 31, 2019, however, has no material impact in the consolidated financial statements, and if there is any significant event up to December 31, 2019, it is adjusted in the consolidated financial statement. The Company consolidates all subsidiaries over which it has direct or indirect control, that is, when it is exposed or has rights to variable returns on its investment with the investee and has the capacity and ability to direct the relevant activities of the investee and has the ability to direct the investee's relevant activities. Additionally, all transactions and balances between Suzano and its subsidiaries, associates and joint ventures are eliminated in the consolidated financial statements, as well as unrealized gains or losses arising from these transactions, net of tax effects. Non-controlling interest is highlighted. The consolidated financial statement of the balance sheet, statements of income (loss), statements of comprehensive income (loss), statements of changes in equity and statements of cash flows, as well the corresponding notes to the financial information regarding to the year ended December 31, 2019, included on this consolidated financial statements are not comparable with the consolidated financial statement as at December 31, 2018 due to the conclusion of the business combination of Fibria in January 2019, as disclosed in note 1.2.1 above. During the period from January 1, 2019 to March 31, 2019 Suzano consolidated Fibria's interim accounting information. However, as from April 1, 2019, Fibria was merged into Suzano, as Note 1.2.2. |
Subsidiaries | 3.2.2. These all entities over which the Company has the power to govern the financial and operating policies of the entity, generally through a majority voting rights. The Company controls an entity when the Company is exposed to, or has rights to, variable returns on its investment with the investee and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to Fibria and de-consolidated from the date that control ceases |
Joint operations | 3.2.3. These are all entities in which the Company maintains the contractually established control over its economic activity and exists only when the strategic, financial and operational decisions regarding the activity require the unanimous consent of the parties sharing the control. In the consolidated financial statements, the balance of assets, liabilities, revenues and expenses are recognized proportionally to the interest in joint operation. |
Associated and joint ventures | 3.2.4. These are all entities are initially recognized at cost and adjusted thereafter for the equity method, being increased or reduced from its interest in the investee's income after the acquisition date. In the investments in associates, the Company must have significant influence, which is the power to participate in the financial and operating policy decisions of the investee, without having its control or joint control of those policies. In investments in joint ventures there is a contractually agreed sharing of control through an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. In the consolidated financial statements, the balance of assets, liabilities, revenues and expenses are eliminated, as well as unrealized gains and losses and investments in these entities and their respective equity accounting results. In relation to associates Ensyn and Spinnova, which period end is November 30, 2019 for their financial information, they have no material impact in the consolidated financial statement, and if there is any significant event up to December 31, 2019, it is adjusted in the consolidated financial statement. |
Translation of financial statements into functional, presentation and foreign currency | 3.2.5. The Company defined as functional and presentation currencies, Brazilian Real (“Real”, “Reais” or “R$”). The individual financial statements of each foreign subsidiaries included in the consolidated financial statement, are prepared in accordance with local currency of the subsidiary operates and translated into Company’s functional and presentation currency. 3.2.5.1. 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 have lost autonomy and become 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, which will only be changed as from January 1, 2020, following the same criteria described in note 3.2.5.2: (i) (ii) (iii) |
Transactions and balances in foreign currency | 3.2.5.2. These are translated using the following criteria: (i) (ii) (iii) (iv) |
Hyperinflationary economies | 3.2.6. The wholly-owned Stenfar, based in Argentine, is subject to the requirements of IAS 29- Financial Reporting in Hyperinflationary Economies, considering that the main country of this entity has been classified as hyperinflationary economy since 2018. Non-monetary items and income statement balances were restated to reflect the terms of the measuring unit current at the end of the reporting exercise. The balances were calculated by applying the changes on the index from the initial recognition date to the reporting date. The translation of the balance sheet and income statement balances into the reporting currency Brazilian Reais were based on the closing rate of the reporting period. |
Business combinations | 3.2.7. These are accounted for using the acquisition method when control is transferred to acquirer. The cost of an acquisition is the sum of the consideration paid, evaluated based on the fair value at acquisition date, and the amount of any non-controlling interests in the acquire. For each business combination, the Company recognizes any non-controlling interest in the acquire either at fair value or at the non-controlling interest’s proportionate share of the acquirer’s net assets. The costs directly attributable to the acquisition are recorded as expense when incurred, except for costs related to the issuance of debt instruments or equity instruments, which are presented as debt reduction or equity, respectively. In a business combination, assets acquired and liabilities assumed are evaluate in order to classify and allocate them assessing the terms of the agreement, economic circumstances and other conditions at the acquisition date. Goodwill is initially measured as the excess of the consideration paid over the fair value of the net assets acquired. After initial recognition, goodwill is measured at cost, net of any accumulated impairment losses. For purposes of impairment testing, the goodwill recognized in a business combination, as from the acquisition date, is allocated to each of the Company’s cash generating units. Gains on an advantageous purchase are recognized immediately in the result. The borrowing costs are recorded in the income statement as incurred. Contingent liabilities related to tax, civil and labor classified in the acquired company as possible and remote risk is recognized by the acquirer. Transactions in the acquisition of shares with shared control over the net assets traded apply complementary guidance to IFRS 3 - Business Combination, IFRS 11 - and IAS 28 – Investments in Associates and Joint Ventures. Based on the equity method, investment is initially recognized at cost. The carrying amount of the investment is adjusted for recognition of changes in the Company's share in the acquirer's Shareholders' equity as of the acquisition date. Goodwill is segregated from carrying amount of the investment. Other intangible assets identified in the transaction shall be allocated in proportion to the interest acquired by the Company, by the difference between the carrying amounts recorded in the acquired entity and its fair value assets, which may be amortized. |
Segment information | 3.2.8. An operating segment is a component of the Company that carries out business activities from which it can obtain revenues and incur expenses. The operating segments reflect how the Company’s management reviews financial information to make decisions. The Company’s management has identified reportable segments, which meet the quantitative and qualitative disclosure requirements. The segments identified for disclosure represent mainly sales channels. |
Cash and cash equivalents | 3.2.9. Include cash on hand, bank deposits and highly liquid short-term investments with maturities, upon acquisition, of 90 days or less, which are readily convertible into known amounts of cash and subject to insignificant risk of change in value. The investments classified in this group, due to their nature, are measured at fair value through the profit or loss. |
Financial assets classification | 3.2.10.1. Financial assets are classification based on the purpose for which the financial assets were acquired, as set forth below: (i) (ii) (iii) Regular purchases and sales of financial assets are recognized on the trade date, it means, the date on which the Company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred but only if Fibria has transferred substantially all risks and rewards of ownership. |
Financial instruments measured at amortized cost | 3.2.10.1.1. Financial instruments measured at amortized cost Financial assets at amortized cost are financial assets held by the Company (i) in order to receive their contractual cash flow and not to sell to realization a profit or loss and (ii) whose contractual terms give rise, on specified dates, to cash flows that exclusively, payments of principal and interest on the principal amount outstanding. Any changes are recognized under financial income (expense) in income statement. It includes the balance of cash and cash equivalents, trade accounts receivable and other assets. |
Financial assets at fair value through other comprehensive income | 3.2.10.1.2. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income are financial assets held by the Company (i) either to receive their contractual cash flow as the for sale with realization of profit or loss and (ii) whose contractual terms give rise on specified dates, to cash flows constituting, exclusively, payments of principal and interest on the principal amount outstanding. In addition, investments in equity instruments where, on initial recognition, the Company elected to present subsequent changes in its fair value to other comprehensive income, are classified in this category. Any changes are recognized under net financial income (expense) in income statement, except for the fair value of investment in equity instruments, which are recognized in other comprehensive income. This category includes the balance of other investments (Note 14). |
Financial assets at fair value through profit or loss | 3.2.10.1.3. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are either designated in this category or not classified in any of the other categories. . Any changes are recognized under financial income (expense) in income statement for non-derivative financial instruments and for financial derivative instruments under income from derivative financial instruments. This category includes the balance of marketable securities, financial assets at fair value through profit or loss are the balance of derivative financial instruments, including embedded derivatives, stock options and other securities. |
Settlement of financial instruments | 3.2.10.2. Settlement of financial instruments Financial assets and liabilities are settled and the net amount is recorded in the balance sheet when there is a (i) legally enforceable right to settle the recognized amounts and (ii) there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. |
Financial instruments measured at amortized cost | 3.2.10.3.1. Financial instruments measured at amortized cost Annually, the Company assesses if there is evidence that a financial asset is impaired. A financial is impaired only if there is evidence of an impairment as a result of one or more events that occurred after the initial recognition of the asset and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated. The criteria that the Company uses to determine if there is evidence of an impairment loss include: (i) (ii) (iii) (iv) (v) (vi) The amount of an impairment loss is measured as the difference between the carrying amount of the asset and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate. If the financial asset is impaired the carrying amount of the asset is reduced and a loss is recognized in the income statement. In a subsequent measurement, if there is an improvement in the asset rating, such as an improvement in the debtor's credit rating, the reversal of the previously recognized impairment loss is recognized in the income statement. |
Financial assets at fair value through other comprehensive income | 3.2.10.3.2. Financial assets at fair value through other comprehensive income Annually, the Company evaluate if there is evidence that a financial asset is impaired. For such financial assets, a significant or prolonged decrease in the fair value of the security below its cost is an evidence that the assets are impaired. If any such evidence exists, impairment loss is measured by the difference between the acquisition cost and the current fair value, less any loss previously recognized in other comprehensive income, shall be recognized in the income statement. |
Derivative financial instruments and hedging activities | 3.2.11. Derivatives financial instruments are recognized at fair value on the date the derivative agreement is entered into and are subsequently remeasured at fair value. Changes in fair value are recorded in under result of derivative financial instruments in the income statement. Embedded derivatives in non-derivative main contracts are required to be separated when their risks and characteristics are not-closely related to those of main contracts and these are not measured at fair value through profit or loss. Non-option embedded derivatives are separated from the main contracts in accordance with its stated or implied substantive terms, so that they have zero fair value on initial recognition. |
Trade accounts receivable | 3.2.12. These are recorded at the invoiced amount, in the normal course of the Company´s business, adjusted to exchange rate variation when denominated in foreign currency and, if applicable, net of expected credit losses. The Company applies the aging-based provision matrix with the appropriate grouping of your portfolio. The Company adopts procedures and analysis to establish credit limits. The Company examines on a monthly basis the maturity of receivables and identifies those customers with overdue balances assessing the specific situation of each client including the risk of loss, the existence of contracted insurance, letters of credit, collateral and the customer’s financial situation. In the event of default, collection attempts are made, which include direct contact with customers and collection through third parties. Should these efforts prove unsuccessful, court measures are considered and credit expected loss is recognized. The notes are written-off from the credit expected loss when Management considers that they are not recoverable after taking all appropriate measures to collect them. |
Inventories | 3.2.13. These are evaluated at average acquisition or formation cost of finished products, net of recoverable taxes, not exceeding their net realizable value. Finished products and work-in-process consist of raw materials, direct labor, production costs, freight, storage and general production expenses, which are related to the processes required to make the products available for sale. Imports in transit are presented at the cost incurred until the balance sheet date. The raw materials derived from biological assets are measured based on their fair value less cost to sell at the point of harvest and freight costs. Provisions for obsolescence, adjustments to net realizable value, impaired items and slow-moving inventories are recorded when necessary. Usual production losses are recorded and are an integral part of the production cost of the respective month, whereas abnormal losses, if any, are recorded directly as cost of sales. |
Non-current assets held for sale | 3.2.14. These are measured at carrying amount or fair value less costs to sell, whichever is lower, and are not depreciated or amortized. Such items are only classified under this account when the sale is highly probable and they are available for immediate sale under their current conditions. |
Property, plant and equipment | 3.2.15. Stated at the cost of acquisition, formation, construction or dismantling, net of recoverable taxes. Such cost is deducted of accumulated depreciation and accumulated impairment losses, when incurred, at the highest of the value of use and sale, less cost to sell. The borrowing costs are capitalized as a component of construction in progress, pursuant to with IAS 23, considering the weighted average interest rate of the Company’s debt at the capitalization date. Depreciation is recognized based on the estimated economic useful life of each asset on a straight-line basis. The estimated useful life, residual values and depreciation methods are annually reviewed and the effects of any changes in estimates are accounted for prospectively. Land is not depreciated. The Company annually performs an analysis of impairment indicators of property, plant and equipment. An impairment for loss for property, plant and equipment, is only recognized if the related cash-generating unit is devalued. Such condition is also applied if the asset’s recoverable amount is less than it is carrying amount. The recoverable amount of asset or cash-generating unit is the highest of its value in use and its fair value less cost to sell. The cost of major renovations is capitalized if the future economic benefits exceed the performance standard initially estimated for the asset and are depreciated over the remaining useful life of the related asset. Repairs and maintenance are expensed when incurred. Gains and losses on disposals of property, plant and equipment are measured by comparing the proceeds with the book value and are recognized as other operating income a (expense), net at the disposal date. |
Intangible assets | 3.2.16. These are measured at cost at the time they are initially recognized. The cost of intangible assets acquired in a business combination corresponds to the fair value at the acquisition date. After initial recognition, intangible assets are presented at cost less accumulated amortization and impairment losses, when applicable. The useful life of intangible assets is assessed as finite or indefinite. Intangible assets with a finite life are amortized over the economic useful life and reviewed for impairment whenever there is an indication that their carrying values may be impaired. The amortization period and method for an intangible asset with a finite useful life are reviewed at least at the end of each fiscal year. The amortization of intangible assets with a finite useful life is recognized in the statement of income as an expense related to its use and consistently with the economic useful life of the intangible asset. Intangible assets with indefinite useful lives are not amortized, but are tested annually for impairment losses, individually or at the level of the CGU. The allocation is made to the CGU or group of CGUs that represents the lowest level within the entity, in which the goodwill is monitored for management's internal purposes, and that has benefited from the business combination. The Company records in this subgroup mainly goodwill for expected future profitability (goodwill) and easement of passage. Such test involved the adoption of assumptions and judgments, disclosed in Note 16. |
Current and deferred income tax and social contribution | 3.2.17. Income taxes comprise income tax and social contribution on net income, current and deferred. These taxes are recognized in the income statement, except to the extent that they are related to items recognized directly in equity. In this case, they are recognized in equity under the equity adjustment. The current charge is calculated based on the tax laws enacted in the countries in which the Company and its subsidiaries and affiliates operate and generate taxable income. Management periodically evaluates the positions assumed in the income tax returns with respect to situations in which the applicable tax regulations give rise to interpretations and establishes provisions, when appropriate, based on the amounts that must be paid to the tax authorities. Deferred tax and contribution liabilities are recognized on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred taxes and contributions are determined based on the rates in force on the balance sheet date and, which must be applied when they are realized or when they are settled. Deferred tax assets and contributions are recognized to the extent that it is probable that future taxable profit will be available to be used to offset temporary differences, based on projections of future results prepared and based on internal assumptions and future economic scenarios that may, therefore, undergo changes. Deferred income tax and social contribution are recognized on temporary differences arising from investments in subsidiaries and associates, except when the timing of the reversal of temporary differences is controlled by the Company, and if it is probable that the temporary difference will not be reversed in a foreseeable future. Deferred taxes and contributions, assets and liabilities, are presented at the net amount in the balance sheet when there is a legal right and the intention to offset them when calculating current taxes, generally related to the same legal entity and the same tax authority. |
Trade accounts payable | 3.2.18. Corresponds to the obligations payable for goods or services acquired in the normal course of the Company´s business, recognized at fair value and, subsequently, measured at amortized cost using the effective interest rate method, adjusted to present value and exchange rate variation when denominated in foreign currency, when applicable. |
Loans and financing | 3.2.19. Loans and financing are initially recognized at their fair value, net of costs incurred in the transaction and are subsequently stated at amortized cost. Any difference between the amounts raised and settled is recognized in the statement of income during the period in which the loans and financing are outstanding, using the effective tax rate method. General or specific borrowing costs, directly attributed to the acquisition, construction or production of a qualified asset, are capitalized as a part of the cost of asset when it is probable that they will result in future economic benefits for the entity and that these costs may be measured with reliability. Other loan costs are recognized as expense in the period they are incurred. |
Provision, contingent assets and liabilities | 3.2.20. Contingent assets are not recorded. The recognition is only performed when are guarantees or judicial decisions favorable and the amount can be measured with safety. Contingent assets, for which such conditions are not met, are only disclosed in the notes to the financial statements when material. The provisions are provided to the extent that the Company expects that is probable that it will disburse cash and the amount can be reliably estimated. Tax, civil and labor proceedings are accrued when losses are assessed as probable and the amounts involved can be reliably measured. When the expectation of loss is possible, a description of the processes and amounts involved is disclosed in the notes to the financial statements. Tax and civil contingent liabilities assessed as remote losses are neither accrued nor disclosed. A contingent liabilities of business combinations are recognized if they arise from a present obligation that arose from past events and if their fair value can be measured reliably and subsequently are measured at the higher of: (i) (ii) |
Asset retirement obligations | 3.2.21. These primarily relate to future costs for the decommissioning of industrial landfill and related assets. A provision is recorded as a long-term obligation against property, plant and equipment. The provision and the corresponding property, plant and equipment are initially recorded at fair value, based on the present value of estimated cash flows for future cash payments discounted by an adjusted risk-free rate. The long-term obligation accrues interest using a long-term discount rate. The property, plant and equipment are depreciated on a straight-line basis over the useful life of the principal against to cost of sales of the income statement. |
Share based payments | 3.2.22. The Company’s executives and managers receive their compensation partially as share-based payment plans to be settled in cash and shares, and alternatively in cash. Plan-related expenses are recognized in the income statement as a corresponding entry to financial liabilities during the vesting period when services will be rendered. The financial liability is measured by its fair value every balance sheet date and its variation is recorded in the income statement as administrative expenses. At the option exercise date, if such options are exercised by executive in order to receive Company’s shares, financial liabilities are reclassified under stock options granted in shareholders’ equity. In case of option exercise paid in cash, the Company settles the financial liability in favor to the Company’s executives. |
Employee benefits | 3.2.23. The Company offers benefits related to supplementary contribution plan to all employees and medical assistance and insurance life for a determined group of former employees, and for the last two benefits an actuarial appraisal is annually prepared by an independent actuary and are reviewed by Management. Actuarial gains and losses are recognized in other reserves when incurred. The interest incurred, resulting from changes in the present value of the actuarial liability, is recorded in income statement under the financial expenses. |
Other assets and liabilities current and non-current | 3.2.24. Assets are recognized only when it is probable that the economic benefit associated with the transaction will flow to the entity and its cost or value can be measured reliably. A liability is recognized when the Company has a legal or constructive obligation arising from a past event, and it is probable that an economic resource will be required to settle this liability. |
Government grants and assistance | 3.2.25. Government grants and assistance are recognized at fair value when it is reasonably certain that the conditions established by the granting Governmental Authority were observed and that these subsidies will be obtained. These are recorded as revenue or expense deduction in the income statement for the period of enjoyment of benefit and subsequently are allocated to the tax incentives reserve under shareholders’ equity. |
Dividends and interest on own capital | 3.2.26. The distribution of dividends or interest on shareholders' equity is recognized as a liability, calculated based on Corporate Law, the bylaws and the Company's Dividend Policy, which establishes that the minimum annual dividend is the lowest amount between (i) 25% of adjusted net income or (ii) the consolidated operating cash flow for the year and, provided they are declared before the end of the year. Any portion in excess of the minimum mandatory dividends, if declared after the balance sheet date, must be recorded under the additional dividends proposed in shareholders' equity, until approved by the shareholders at the General Assembly. After approval, reclassification to current liabilities is made. The tax benefit of interest on equity is recognized in the income statement. |
Share Capital | 3.2.27. Common shares are classified under shareholders’ equity. Incremental costs directly attributable to a public offer are stated under shareholders’ equity as a deduction from the amount raised, net of taxes. In 2019, the Company reclassified the share issuance costs from capital reserve to share capital. |
Revenue recognition | 3.2.28. Revenue from contracts with customers are recognized as at which the products to customers transfer of control, represented by the ability to determine the use of products and obtain substantially all the remaining benefits from the products. The Company follows the five-step model: (i) identification of contracts with customers; (ii) identification of performance obligations under contracts; (iii) determining the transaction price; (iv) allocation of the transaction price to the performance obligation provided for in the contracts and (v) recognition of revenue when the performance obligation is met. For operating segment Pulp, revenue recognition is based on the parameters provided by (i) International Commercial Terms (“Incoterms”), when destined for the foreign market and (ii) lead time, when destined for the internal market. For operating segment Paper and Consumer Goods, revenue recognition is based on the parameters provided by lead time and are products destined for internal market. Are measured at the fair value of the consideration received or receivable, net of taxes, returns, rebates and discounts and recognized in accordance with the accrual basis of accounting, when the amount is reliably measured. Accumulated experience is used to estimate and provide for the rebates and discounts, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability (included in trade accounts receivable) is recognized for expected rebates and discounts payable to customers in relation to sales made until the end of the reporting period. No significant element of financing is deemed present as the sales are made with a short credit term. |
Financial income and expenses | 3.2.29. Include interest income on financial assets, at the effective interest rate that includes the amortization of funding raising costs, gains and losses on derivative financial instruments, interest on loans and financing, exchange variations on loans and financing and other assets and financial liabilities and monetary variations on other assets and liabilities. Interest income and expenses are recognized in the income statement using the effective interest method. |
Earnings (losses) per share | 3.2.30. Basic earnings (losses) per share are calculated by dividing the net profit (loss) attributable to the holders of ordinary shares of the Company by (losses) the weighted average number of ordinary shares during the year. Diluted earnings per share are calculated by dividing the net profit (loss) attributable to the holders of ordinary shares of the Company by the weighted average number of ordinary shares during the year, plus the weighted average number of ordinary shares that would be issued when converting all dilutive potential ordinary shares into ordinary shares. |
Employee and management profit sharing | 3.2.31. Employees are entitled to profit sharing based on certain goals agreed annually. For the Administrators, the statutory provisions proposed by the Board of Directors and approved by the shareholders are used as a basis. Provisions for participation are recognized in the administrative expense, during the period in which the targets are attained. |
Accounting judgments, estimates and assumptions | 3.2.32. As disclosed in note 2, Management used judgments, estimates and accounting assumptions regarding the future, whose uncertainty may lead to results that require a significant adjustment to the book value of certain assets, liabilities, income and expenses in future years, are presented below: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) The Company reviews the estimates and underlying assumptions used in its accounting estimates on annual basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised. |
New standards, revisions and interpretation not yet in force | 3.2.33. 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 consolidated financial statements. |
COMPANY'S OPERATIONS (Tables)
COMPANY'S OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMPANYS OPERATIONS | |
Summary of equity interest in the entities | % equity interest Type of Accounting December 31, December 31, Entity Main activity Country investment method 2019 2018 AGFA – Com. Adm. e Participações Ltda. Holding Brazil Direct Consolidated 100 % 100 % Asapir Produção Florestal e Comércio Ltda. (1) Eucalyptus cultivation Brazil Direct Consolidated 100 % 50 % CelluForce Inc. Nanocrystalline pulp research and development Canada Direct Fair value through other comprehensive income 8.3 % Comercial e Agrícola Paineiras Ltda. Lease of reforestation land Brazil Direct Consolidated 100 % 100 % Ensyn Corporation Bio fuel research and development United States of America Direct Equity 25.3 % Eucalipto Holding S.A. (2) Holding Brazil Direct Consolidated 100 % Facepa - Fábrica de Papel da Amazônia S.A. Industrialization and commercialization of tissue paper Brazil Direct/Indirect Consolidated 92.8 % 92.8 % Fibria Celulose (USA) Inc. Business office United States of America Direct Consolidated 100 % Fibria Terminal de Celulose de Santos SPE S.A. Port operation Brazil Direct Consolidated 100 % Fibria Overseas Finance Ltd. Financial fundraising Cayman Island Direct Consolidated 100 % Fibria Overseas Holding KFT. (3) Consolidated % Fibria Terminais Portuários S.A. Port operation Brazil Direct Consolidated 100 % FuturaGene AgriDev Xinjiang Company Ltd. Biotechnology research and development China Indirect Consolidated 100 % 100 % FuturaGene Biotechnology Shangai Company Ltd. Biotechnology research and development China Indirect Consolidated 100 % 100 % FuturaGene Brasil Tecnologia Ltda. Biotechnology research and development Brazil Direct/Indirect Consolidated 100 % 100 % FuturaGene Delaware Inc. Biotechnology research and development United States of America Indirect Consolidated 100 % 100 % FuturaGene Hong Kong Ltd. Biotechnology research and development Hong Kong Indirect Consolidated 100 % 100 % FuturaGene Inc. Biotechnology research and development United States of America Indirect Consolidated 100 % 100 % FuturaGene Israel Ltd. Biotechnology research and development Israel Indirect Consolidated 100 % 100 % FuturaGene Ltd. Biotechnology research and development England Indirect Consolidated 100 % 100 % F&E Tecnologia do Brasil S.A. Biofuel production, except alcohol Brazil Indirect Consolidated F&E Tecnologies LLC Biofuel production, except alcohol United States of America Direct Equity 50 % Gansu FuturaGene Biotech Co. Ltd. Biotechnology research and development China Indirect Consolidated 100 % 100 % Ibema Companhia Brasileira de Papel Industrialization and commercialization of paperboard Brazil Direct Joint venture 49.9 % 49.9 % Itacel - Terminal de Celulose de Itaqui S.A. Port operation Brazil Indirect Consolidated 100 % 100 % Maxcel Empreendimentos e Participações S.A. Holding Brazil Direct Consolidated 100 % 100 % Mucuri Energética S.A. Power generation and distribution Brazil Direct Consolidated 100 % 100 % Ondurman Empreendimentos Imobiliários Ltda. Lease of reforestation land Brazil Direct/Indirect Consolidated 100 % 100 % Paineiras Logística e Transporte Ltda. Road freight transport Brazil Direct /Indirect Consolidated 100 % 100 % Portocel - Terminal Espec. Barra do Riacho S.A. Port operation Brazil Direct Consolidated 51 % Projetos Especiais e Investimentos Ltda. Commercialization of equipment and parts Brazil Direct Consolidated 100 % Rio Verde Participações e Propriedades Rurais S.A. (3) Forest assets Brazil Indirect Consolidated 100 % Spinnova Oy Research and development of sustainable raw materials (wood) for the textile industry Finland Direct Equity 24.06 % Stenfar S.A. Indl. Coml. Imp. Y. Exp. Commercialization of computer paper and materials Argentine Direct /Indirect Consolidated 100 % 100 % Sun Paper and Board Limited (4) Shared expenses Consolidated 100 % 100 % Suzano Áustria GmbH Business office Austria Direct Consolidated 100 % 100 % Suzano Canada Inc. (5) Lignin research and development Canada Direct Consolidated 100 % Suzano International Trade GmbH (6) Business office Austria Direct Consolidated 100 % Suzano Luxembourg (7) Financial fundraising Luxembourg Direct Consolidated 100 % 100 % Suzano Participações do Brasil Ltda (8) Holding Brazil Direct Consolidated 100 % Suzano Pulp and Paper America Inc. Business office United States of America Direct Consolidated 100 % 100 % Suzano Pulp and Paper Europe S.A. Business office Switzerland Direct Consolidated 100 % 100 % Suzano Trading Ltd. Business office Cayman Island Direct Consolidated 100 % 100 % Suzano Trading International KFT (9) Business office Hungary Direct Consolidated 100 % Veracel Celulose S.A. (10) Industrialization, commercialization and exportation of pulp Brazil Joint operation Consolidated 50 % 1) The full control was acquired arising from the business combination with Fibria. 2) Company merged on January 2, 2019, as mentioned in note 1.2.1.1. 3) Company established as a result of corporate restructuring on December 12, 2019. 4) Company dissolution on June 2, 2019. 5) Corporate name changed on September 30, 2019, former Fibria Innovations Inc. 6) Corporate name changed on August 28, 2019, former Fibria International Trade GmbH. 7) Company dissolution on September 17, 2019. 8) Corporate name changed on December 06, 2019, former F&E Participações do Brasil Ltda. 9) Corporate name changed on August 9, 2019, former Fibria Trading International. 10) Joint operation with Stora Enso, a company located in Amsterdan. |
Summary of final purchase price allocation | The following table summarizes the final purchase price allocation based on the appraisal report prepared by an independent and specialized entity: Cash consideration 27,797,441 Issuance of shares by Suzano 9,438,413 Total consideration 37,235,854 Book value of Fibria's shareholders' equity 14,149,004 Write-off of the book value of existing goodwill, net of the deferred income taxes (3,495,077) Mandatory minimum dividends (eliminated from the balance sheet at the date of acquisition) 724,829 Book value of Fibria's shareholders' equity, net of goodwill 11,378,756 Fair value adjustment on business combination with Fibria (assets and liabilities): Inventories 2,178,903 (1) Property, plant and equipment 9,362,315 (2) Customer relationship 9,030,779 (3) Port assets 749,060 (4) Contingent liabilities (2,970,546) (5) Loans and financing (59,921) (6) Taxes recoverable (235,843) (7) Other assets and liabilities, net 451,624 (8) Deferred taxes, net (546,324) (9) Total impact of fair value 17,960,047 Goodwill on the expectation of future profitability 7,897,051 (10) 1) Measured considering the balance of finished products based on selling price, net of selling expenses and an accepted margin based on the results achieved in 2018. 2) Determined based on the analysis of market data on comparable transactions and cost quantification, based on the estimate of replacement or replacement value of the assets. 3) In order to determine the fair value adjustment in the customer portfolio, the income approach and the method were used to measure the present value of the income that will be generated during the remaining useful life of the asset. Considering the 5-year history of Fibria's sales data and the churn rate that measures customer satisfaction and customer permanence in the portfolio, the adjustment was measured using estimated discounted cash flows. The churn rate and the discounted cash flows were considered as significant assumptions to determine the fair value of the customer portfolio. 4) Fibria has concession contracts and port assets to assist in port operations in Brazil. For fair value measurement of these assets was considered the income approach, the Multi Period Excess Earnings Method (“MPEEM”) that measures the present value of the income that will be generated during the remaining useful life of the asset and method of direct cost differential. 5) In the business combination, for the contingencies fair value measurement, whose chances of loss were classified as possible and remote, Fibria's Management and its external and independent advisors were considered for their fair values, whose amounts were measured based on the analyzes of Company’s external lawyers. Thus, the estimated and assumptions with respect to the probability of loss of the possible and remote lawsuit, for the fair value calculation of contingent liabilities assumed were considered as significant assumptions to determine the fair value of the contingent liabilities. 6) The adjustment to fair value of loans and financing was measured based on the fair value of the Bonds, based on the quotation of the security in the secondary market, and the adjustment to present value considering the market rate at the base date on December 31, 2018. 7) For the measurement of the fair value of the taxes to be recovered, the amount to be recovered, discounted to the present value considering the expected Selic rate for the tax period, was considered. 8) In other net assets and liabilities, including supply contracts, accounts receivable and advances to suppliers, the income evaluation methodology, the present value and the direct cost differential were used. 9) Deferred asset on income tax on fair value adjustments of assets of Veracel and Portocel. For the remaining fair value, we did not recognize deferred liability on income taxes liabilities due to Fibria’s Legal Merger in April 2019. 10) Goodwill is attributable to the strong market position and expected future profitability of Fibria in negotiations in the eucalyptus pulp market. |
Summary of main items balance sheet | The following table summarizes, the main items balance sheet of Fibria as of March 31, 2019. ASSETS LIABILITIES CURRENT CURRENT Cash and cash equivalents 29,086 Loans and financing 816,180 Marketable securities 2,734,027 Lease liabilities 420,241 Derivative financial instruments 256,675 Trade accounts payable 955,210 Trade accounts receivable 3,572,059 Derivative financial instruments 254,444 Inventories 1,714,560 Payroll and charges 104,246 Recoverable taxes 768,439 Taxes payable 36,057 Other assets 161,238 Related parties 1,179,254 9,236,084 Dividends payable 4,015 Other liabilities 946,099 4,715,746 NON CURRENT NON CURRENT Marketable securities 175,559 Loans and financing 8,139,390 Derivative financial instruments 723,084 Derivative financial instruments 678,833 Recoverable taxes 546,234 Lease liabilities 1,972,531 Deferred taxes 1,364,363 Related parties 16,305,560 Advances to suppliers 696,767 Employee benefits 144,557 Judicial deposits 190,533 Provision for judicial liabilities 190,698 Other assets 100,877 Other liabilities 175,934 Biological assets 4,355,102 27,607,503 Investments 9,481,900 Property, plant and equipment 14,633,114 TOTAL LIABILITIES 32,323,249 Right of use 2,301,427 Intangible assets 118,920 Equity 11,600,715 34,687,880 TOTAL EQUITY AND LIABILITIES 43,923,964 TOTAL ASSETS 43,923,964 |
Financial Instruments and Ris_2
Financial Instruments and Risks Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments and Risks Management | |
Schedule of financial instruments by category | December 31, December 31, 2019 2018 Assets Amortized cost Cash and cash equivalents (Note 5) 3,249,127 4,387,453 Trade accounts receivable (Note 7) 3,035,817 2,537,058 Other assets 563,993 263,110 6,848,937 7,187,621 Fair value through other comprehensive income Other investments (Note 14) 20,048 — 20,048 — Fair value through profit or loss Derivative financial instruments (Note 4.6) 1,098,972 493,934 Marketable securities (Note 6) 6,330,334 21,098,565 7,429,306 21,592,499 14,298,290 28,780,120 Liabilities Amortized cost Loans, financing and debentures (Note 18.1) 63,684,326 35,737,509 Lease liabilities (Note 19.2) 3,984,070 — Liabilities for assets acquisitions and subsidiaries (Note 23) 541,615 992,512 Trade accounts payable (Note 17) 2,376,459 632,565 Other liabilities 578,061 404,655 71,164,531 37,767,241 Fair value through profit or loss Derivative financial instruments (Note 4.6) 2,917,913 1,636,700 2,917,913 1,636,700 74,082,444 39,403,941 |
Summary of estimated fair value of loans and financing | Yield used December 31, December 31, to discount 2019 2018 Quoted in the secondary market In foreign currency Bonds U.S.$ 30,066,087 15,035,165 Estimated to present value In foreign currency Export credits ("Pre-payment") LIBOR U.S.$ 17,213,963 12,819,072 Export credits ("Finnvera") LIBOR U.S.$ 832,907 Export credits ("ACC/ACE") DI 1 575,521 1,732,088 In local currency BNP – Forest Financing DI 1 193,646 BNDES – TJLP DI 1 1,895,959 206,601 BNDES - TLP DI 1 535,812 BNDES – Fixed DI 1 113,979 348,827 BNDES – Selic ("Special Settlement and Custody System") DI 1 693,969 BNDES - Currency basket DI 1 54,420 169,243 CRA ("Agribusiness Receivables Certificate") DI 1 6,039,983 2,383,775 Debentures DI 1 5,534,691 4,721,603 FINAME ("Special Agency of Industrial Financing") DI 1 14,168 FINEP ("Financier of Studies and Projects") DI 1 5,138 NCE ("Export Credit Notes") DI 1 1,445,383 1,501,623 NCR ("Rural Credit Notes") DI 1 288,122 297,375 Export credits ("Pre-payment") DI 1 1,464,798 FDCO ("West Center Development Fund") DI 1 571,904 66,707,543 40,048,279 |
Schedule of contractual maturities of financial liabilities | 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 December 31, 2018 Total book Total future Up to 1 1 - 2 2 - 5 More than value value year years years 5 years Liabilities Trade accounts payables 632,565 632,565 632,565 — — — Loans, financing and debentures 35,737,509 54,020,082 5,158,441 4,091,669 18,372,597 26,397,375 Liabilities for asset acquisitions and subsidiaries 992,512 1,099,331 495,862 100,715 316,730 186,024 Derivative financial instruments 1,636,700 2,149,710 790,679 736,715 465,853 156,462 Other liabilities 404,655 404,655 367,314 37,341 — — 39,403,941 58,306,342 7,444,861 4,966,440 19,155,180 26,739,859 |
Schedule of credit exposures using internal credit grading | December 31, December 31, 2019 2018 Low (1) 2,775,364 2,447,184 Average (2) 168,836 66,587 High (3) 133,613 60,466 3,077,813 2,574,237 1) Current and overdue to 30 days. 2) Overdue between 30 and 90 days. 3) Overdue more than 90 days and renegotiated with the customer or with guarantees. |
Schedule of the book value of financial assets representing the exposure to credit risk | December 31, December 31, 2019 2018 Cash and cash equivalents 3,249,127 4,387,453 Marketable securities 6,330,334 21,098,565 Derivative financial instruments 830,426 493,934 10,409,887 25,979,952 |
Schedule of credit exposures using external credit grading | Cash and cash equivalents and marketable securities Derivative financial instruments December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Risk rating (1) AAA 190,360 19,736,151 — 141,296 AA+ — 5,257,518 — — AA — 68,207 — 259,711 AA- 56,388 422,899 — — A+ 606,757 — 27,363 — A 188,458 80 165,851 51,281 A- 211,238 1,160 222,761 — brAAA 7,153,079 — 404,693 — brAA+ 745,177 — 9,758 — brAA 372,188 — — — brAA- 23,050 — — — brA 17,847 — — — Others 14,919 1 — 41,646 9,579,461 25,486,016 830,426 493,934 1) We use the Brazilian Risk Rating and the rating is given by agencies Fitch Ratings, Standard & Poor’s and Moody’s. |
Schedule of net exposure of assets and liabilities in foreign currency | December 31, December 31, 2019 2018 Assets Cash and cash equivalents 2,527,834 1,143,968 Trade accounts receivables 2,027,018 1,661,108 Derivative financial instruments 9,440,141 493,685 13,994,993 3,298,761 Liabilities Trade accounts payables (1,085,207) (72,680) Loans and financing (45,460,138) (26,384,721) Liabilities for asset acquisitions and subsidiaries (288,172) (333,049) Derivative financial instruments (11,315,879) (1,464,569) (58,149,396) (28,255,019) Net liability exposure (44,154,403) (24,956,258) |
Summary of yield curves used to calculate fair value of derivative financial instruments | Interest rate curves Term Brazil United States of America Dollar coupon 1M 4.41% p.a. 1.91% p.a. 13.33% p.a. 6M 4.33% p.a. 1.84% p.a. 4.37% p.a. 1A 4.56% p.a. 1.77% p.a. 3.40% p.a. 2A 5.28% p.a. 1.68% p.a. 2.93% p.a. 3A 5.79% p.a. 1.66% p.a. 2.81% p.a. 5A 6.43% p.a. 1.70% p.a. 2.87% p.a. 10A 7.01% p.a. 1.86% p.a. 3.31% p.a. |
Schedule of derivatives by type of contract | Notional value in U.S.$ Fair value December 31, December 31, December 31, December 31, Instruments contracted with protection strategy Operational Hedge NDF (R$ x U.S.$) — 150,000 — 17,036 Zero Cost Collar (R$ x U.S.$) 3,425,000 3,040,000 67,078 (134,814) Debt hedge Interest rate hedge Swap LIBOR to Fixed (U.S.$) 2,750,000 2,757,143 (444,910) (170,707) Swap IPCA to CDI (notional in Reais ) 843,845 — 233,255 — Swap IPCA to Fixed (U.S.$) 121,003 — 30,544 — Swap CDI x Fixed (U.S.$) 3,115,614 2,402,110 (1,940,352) (853,141) Pre-fixed Swap to U.S.$ (U.S.$) 350,000 (33,011) Hedge de Commodity Swap US-CPI standing wood (U.S.$) 679,485 268,547 Swap Bunker (oil) 365 5,344 (92) (1,140) (1,818,941) (1,142,766) Current assets 260,273 352,454 Non-current assets 838,699 141,480 Current liabilities (893,413) (596,530) Non-current liabilities (2,024,500) (1,040,170) (1,818,941) (1,142,766) |
Schedule of maturity analysis for derivatives | December 31, December 31, 2019 2018 2019 — (244,069) 2020 (633,644) (180,333) 2021 98,850 87,851 2022 (154,734) 83,692 2023 185,209 80,052 2024 (197,718) 82,963 2025 (606,827) (486,958) 2026 onwards (510,077) (565,964) (1,818,941) (1,142,766) |
Schedule of long and short positions of outstanding derivatives | Notional value Fair value December 31, December 31, December 31, December 31, Currency 2019 2018 2019 2018 Debt hedge Assets Swap CDI x Fixed (U.S.$) R$ 11,498,565 8,722,620 11,673,117 119,178 Swap Pre-Fixed to U.S.$ (U.S.$) R$ 1,317,226 1,478,336 — Swap LIBOR x Fixed (U.S.$) U.S.$ 2,750,000 2,757,143 11,063,970 — Swap IPCA x CDI IPCA 933,842 1,093,067 — Swap IPCA x U.S.$ IPCA 499,441 579,307 — 25,887,797 119,178 Liabilities Swap CDI x Fixed (U.S.$) U.S.$ 3,115,614 2,402,110 (13,613,469) (972,319) Swap LIBOR x Fixed (U.S.$) U.S.$ 350,000 2,757,143 (1,511,347) (170,707) Swap LIBOR x Fixed (U.S.$) U.S.$ 2,750,000 (11,508,880) — Swap IPCA x CDI R$ 843,845 (859,812) — Swap IPCA x U.S.$ U.S.$ 121,003 (548,763) — (28,042,271) (1,143,026) (2,154,474) (1,023,848) Operational hedge Zero cost collar (U.S.$ x R$) U.S.$ 3,425,000 3,040,000 67,078 (134,814) NDF (R$ x U.S.$) U.S.$ — 150,000 17,036 67,078 (117,778) Commodity hedge Swap US-CPI (standing wood) U.S.$ 679,485 — 268,547 — Swap Bunker (oil) U.S.$ 365 5,344 (92) (1,140) 268,455 (1,140) (1,818,941) (1,142,766) |
Schedule of settled derivatives | December 31, December 31, 2019 2018 Operational hedge Zero cost collar (R$ x U.S.$) (104,040) (110,271) NDF (R$ x U.S.$) 63,571 (1,235,448) (40,469) (1,345,719) Commodity hedge Swap Bunker (oil) 3,804 — 3,804 — Debt hedge Swap CDI x Fixed (U.S.$) (68,362) 19,145 Swap IPCA x CDI 23,024 — Swap Pre-Fixed to U.S.$ (U.S.$) (26,358) — Swap LIBOR x Fixed (U.S.$) (27,088) (4,939) (98,784) 14,206 (135,449) (1,331,513) |
Schedule of fair value hierarchy | 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 December 31, 2018 Level 1 Level 2 Level 3 Total Assets Fair value through profit or loss Derivative financial instruments — 493,934 — 493,934 Marketable securities 14,933,513 6,165,052 — 21,098,565 14,933,513 6,658,986 — 21,592,499 Biological assets — — 4,935,905 4,935,905 — — 4,935,905 4,935,905 Total Assets 14,933,513 6,658,986 4,935,905 26,528,404 Liabilities Fair value through profit or loss Derivative financial instruments — 1,636,700 — 1,636,700 — 1,636,700 — 1,636,700 Total Liabilities — 1,636,700 — 1,636,700 |
Exchange rate risk | Financial instruments, excluding derivatives | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | December 31, 2019 Effect on profit or loss and equity Possible Remote Probable (25%) (50%) Cash and cash equivalents 2,527,834 631,959 1,263,917 Trade accounts receivable 2,027,018 506,755 1,013,509 Trade accounts payable 1,085,207 271,302 542,604 Loans and financing 45,460,138 11,365,035 22,730,069 Liabilities for asset acquisitions and subsidiaries 288,172 72,043 144,086 |
Exchange rate risk | Derivative financial instruments | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | December 31, 2019 Effect on profit or loss and equity Possible Remote Possible Remote Probable (+25%) (+50%) (-25%) (-50%) Financial instruments derivatives Derivative options (2,198,750) (4,087,518) (8,175,033) (4,087,510) (8,175,024) Derivative swaps 66,981 (2,710,465) (6,048,324) (3,011,787) (6,383,188) |
Interest rate risk | Financial instruments, excluding derivatives | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | December 31, 2019 Effect on profit or loss and equity Probable Possible (25%) Remote (50%) CDI Cash and cash equivalents 630,075 6,931 13,862 Marketable securities 6,330,334 69,634 139,267 Loans and financing 11,482,992 581,039 252,626 TJLP Loans and financing 9,720,880 622,671 270,727 LIBOR Loans and financing 16,229,715 356,183 154,862 |
Interest rate risk | Derivative financial instruments | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | December 31, 2019 Effect on profit or loss and equity Probable Remote Probable Remote Probable (+25%) (+50%) (-25%) (-50%) CDI Financial instruments derivatives Liabilities Derivative options 66,981 (72,473) (142,327) 75,530 154,446 Derivative swaps (2,198,750) (42,752) (83,345) 44,995 92,339 Libor Financial instruments derivatives Liabilities Derivative swaps (2,198,750) 163,314 326,151 (163,811) (328,121) |
U.S. Consumer Price Index | Derivative financial instruments | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | December 31, 2019 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 268,547 107,815 220,514 |
Commodity price risk | |
Financial Instruments and Risks Management | |
Summary of sensitivity analysis | December 31, 2019 Impact of an increase/decrease of price risk Probable Possible (25%) Remote (50%) Oil derivative (92) 478 864 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash and cash equivalents | Average yield December 31, December 31, p.a. % 2019 2018 Cash and banks 2,464,097 1,151,766 Cash equivalents Local currency Fixed-term deposits (1) 99.52% of CDI 630,075 3,215,252 Foreign currency Fixed-term deposits (1) 154,955 20,435 3,249,127 4,387,453 1) Refers to Time Deposit and Sweep Account applications, maturing up to 90 days. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
MARKETABLE SECURITIES | |
Schedule of marketable securities | Average yield December 31, December 31, p.a. % 2019 2018 In local currency Investment funds 61.51% of CDI 6,683 — Private funds 98.73% of CDI 1,431,303 14,933,513 Public titles measured at fair value through profit or loss 1,631,319 2,049,281 Private Securities (Compromised) 98.73% of CDI 3,081,326 4,115,771 Private Securities (Compromised) - Escrow Account (1) 101.02% of CDI 179,703 — 6,330,334 21,098,565 Current 6,150,631 21,098,565 Non-Current 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 (Tabl
TRADE ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TRADE ACCOUNTS RECEIVABLE | |
Schedule of trade accounts receivable by type of customer | December 31, December 31, 2019 2018 Domestic customers Third parties 1,027,034 853,684 Receivables Investment Fund ("FIDC") — 22,299 Related parties (note 11) 23,761 36,727 Foreign customers Third parties 2,027,018 1,661,527 (-) Expected credit losses (41,996) (37,179) 3,035,817 2,537,058 |
Schedule of trade accounts receivable by maturity | December 31, December 31, 2019 2018 Current 2,552,459 2,119,188 Overdue Up to 30 days 180,909 291,050 From 31 to 60 days 148,388 54,845 From 61 to 90 days 20,448 10,982 From 91 to 120 days 20,680 7,446 From 121 to 180 days 17,899 6,285 More than 180 days 95,034 47,262 2,537,058 |
Schedule of rollforward of expected credit losses, trade accounts receivable | December 31, December 31, 2019 2018 Beginning balance (37,179) (38,740) Business combination with Fibria (1) (5,947) — Addition (18,650) (11,578) Reversal 6,364 5,128 Write-off 13,383 8,993 Exchange rate variation 33 (982) Ending balance (41,996) (37,179) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
Schedule of inventories | December 31, December 31, 2019 2018 Finished goods Pulp Domestic (Brazil) 575,335 167,317 Foreign 2,229,206 485,226 Paper Domestic (Brazil) 199,635 227,303 Foreign 70,199 67,872 Work in process 75,377 52,882 Raw material 1,047,433 626,150 Spare parts and other 488,410 226,354 4,685,595 1,853,104 |
Schedule of rollforward of expected credit losses, inventories | December 31, December 31, 2019 2018 Beginning balance (33,195) (51,911) Business combination with Fibria (1) (11,117) — Addition (2) (111,077) (10,605) Reversal 9,734 5,873 Write-off (3) 38,942 23,448 Ending balance (106,713) (33,195) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. 2) On December 31, 2019, refers, substantially, to estimated losses of inventories of finished goods and raw material, in the amounts of R$42,470 and R$39,382, respectively. 3) On December 31, 2019, refers, substantially, to write-off of spare parts and raw material, in the amounts of R$5,786 and R$26,083, respectively. |
RECOVERABLE TAXES (Tables)
RECOVERABLE TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RECOVERABLE TAXES | |
Schedule of recoverable taxes | December 31, December 31, 2019 2018 IRPJ/CSLL – prepayments and withheld taxes 679,699 103,939 PIS/COFINS – on acquisition of property, plant and equipment (1) 61,376 55,518 PIS/COFINS – operations 589,142 12,426 PIS/COFINS – exclusion ICMS (2) 128,115 — ICMS – on acquisition of property, plant and equipment (3) 115,560 78,154 ICMS – operations (4) 1,519,017 215,361 Reintegra program (5) 118,944 48,879 Other taxes and contributions 18,799 24,845 Provision for loss of ICMS credits (6) (1,304,329) (10,792) Provision for loss of PIS/COFINS credits (21,132) — Fair value adjustment on business combination with Fibria (199,076) — 1,706,115 528,330 Current 997,201 296,832 Non-current 708,914 231,498 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. In the quarter ended September 30th, 2019, the Company recorded an asset of R$128,115 relating to PIS and COFINS tax credits within recoverable taxes and a gain in the statement of income (loss) within other operational results (note 30), 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 | December 31, 2019 ICMS PIS e COFINS Total Beginning balance (10,792) — (10,792) Business combination with Fibria (1) (1,211,109) — (1,211,109) Addition (82,428) (21,132) (103,560) Ending balance (1,304,329) (21,132) (1,325,461) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. |
ADVANCE TO SUPPLIERS (Tables)
ADVANCE TO SUPPLIERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ADVANCE TO SUPPLIERS | |
Schedule of advances to suppliers | December 31, December 31, 2019 2018 Forestry development program 1,087,149 231,063 Advance to suppliers 170,481 85,963 1,257,630 317,026 Current 170,481 98,533 Non-current 1,087,149 218,493 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTIES | |
Schedule of related party transactions | Balances receivable (payable) December 31, December 31, Nature 2019 2018 Transactions with controlling shareholders Suzano Holding Granting of guarantees and administrative expenses 3 (125) 3 (125) Transactions with companies of the Suzano Group and other related parties Bexma Reimbursement for expenses 1 1 Bizma Reimbursement for expenses 1 2 Ecofuturo Social services (9) (33) Ibema Sale of pulp 23,755 36,721 Ibema Purchase of products (2,467) (1,643) Management Reimbursement for expenses (1) 21,280 35,048 21,283 34,923 Assets Trade accounts receivable 23,761 36,727 Liabilities Trade accounts payable (2,478) (1,804) 21,283 34,923 Expenses (income) December 31, December 31, Nature 2019 2018 Transactions with controlling shareholders Suzano Holding Granting of guarantees and administrative expenses (5,945) (12,723) (5,945) (12,723) Transactions with companies of the Suzano Group and other related parties: Bexma Reimbursement for expenses 11 10 Bizma Reimbursement for expenses 10 Ecofuturo Social services (5,272) (4,184) Ibema Sale of pulp 111,325 107,252 Ibema Purchase of products (7,744) 16 IPFL Reimbursement for expenses 4 4 Lazam - MDS Sale of paper 7 (31) Mabex Aircraft services (freight) (100) (390) Management Reimbursement for expenses (9,178) 541 Nemonorte Real estate advisory (330) (491) 88,733 102,727 82,788 90,004 |
Schedule of management compensation | December 31, December 31, December 31, 2019 2018 2017 Short-term benefits Salary or compensation 39,459 48,663 24,774 Direct and indirect benefits 1,747 2,828 2,959 Bonus 8,007 16,752 26,819 49,213 68,243 54,552 Long-term benefits Share-based compensation plan 45,739 62,150 33,554 45,739 62,150 33,554 94,952 130,393 88,106 |
INCOME AND SOCIAL CONTRIBUTIO_2
INCOME AND SOCIAL CONTRIBUTION TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME AND SOCIAL CONTRIBUTION TAXES | |
Schedule of deferred income and social contribution taxes | December 31, December 31, 2019 2018 Tax loss carryforwards 600,249 310,293 Negative tax base 146,346 6,627 Provision for judicial liabilities 265,571 101,667 Operating provisions and other losses 933,818 286,616 Exchange rate variation - Taxation on a cash basis 2,001,942 534,093 Losses on derivatives 618,427 291,254 Fair value adjustment on business combination – Amortization 713,656 5,327 Unrealized profit on inventories 293,322 227,830 Lease 2,922 6,196 Other temporary differences — 4,056 Assets temporary differences 5,576,253 1,773,959 Goodwill - Tax benefit on unamortized goodwill 216,857 13,161 Property, plant and equipment - deemed cost adjustment 1,506,220 1,552,579 Accelerated tax depreciation 1,113,200 1,196,182 Borrowing cost 104,549 — Fair value of biologic assets 53,502 — Tax provision on results of subsidiaries abroad 463,850 — Fair value adjustment on business combination with Fibria – Deferred taxes, net 502,347 — Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) 43,559 — Other temporary differences 17,004 41,172 Liabilities temporary differences 4,021,088 2,803,094 Non-current assets 2,134,040 8,998 Non-current liabilities 578,875 1,038,133 |
Schedule of accumulated tax losses and social contribution tax loss carryforwards | December 31, December 31, 2019 2018 Tax loss carry forward 2,400,998 1,241,172 Social contribution tax loss carryforward 1,626,064 73,633 |
Schedule of rollforward of net balance of deferred income tax | December 31, December 31, 2019 2018 Beginning balance (1,029,135) (1,787,354) Business combination with Fibria (1) 1,034,842 — Tax loss 270,559 (264,955) Tax loss carryforwards 139,719 (23,203) (Reversal)/provision for judicial liabilities 31,262 (1,964) Operating provisions and other losses (21,757) 82,785 Exchange rate variation - Taxation on a cash basis 552,421 451,300 Derivative losses 319,860 390,198 Fair value adjustment on business combination – Amortization 699,527 5,327 Unrealized profit on inventories 65,492 124,454 Lease (3,274) 69 Adjustment to present value 174 Tax benefit on unamortized goodwill (203,696) (3,098) Property, plant and equipment - Deemed cost 46,359 51,408 Accelerated depreciation 82,982 (13,067) Borrowing cost 44,727 (23,145) Fair value of biological assets (60,778) (22,307) Tax provision on results of subsidiaries abroad (351,485) — Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) (43,559) — Other temporary differences (18,901) 4,243 Ending balance 1,555,165 (1,029,135) 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. |
Schedule of reconciliation of the effects of income tax and social contribution on profit or loss | December 31, December 31, 2019 2018 Net income (loss) before taxes (4,097,203) 165,298 Income tax and social contribution benefit (expense) at statutory nominal rate of 34% 1,393,049 (56,201) Tax effect on permanent differences: Taxation (difference) on profit of subsidiaries abroad (1) (24,933) (97,439) Tax incentive - Reduction SUDENE — 261,910 Equity method 10,878 2,576 Thin capitalisation (95,003) (2,553) Credit related to Reintegra Program 4,515 37,627 Tax incentives applied to income tax (2) 18,919 20,505 Unrealized profit on operations with subsidiaries — 16,786 Director bonus (43,913) — Other 18,949 (28,695) 1,282,461 154,516 Income tax Current (220,311) (300,438) Deferred 1,093,200 604,190 872,889 303,752 Social Contribution Current (25,799) (286,130) Deferred 435,371 136,894 409,572 (149,236) Income and social contribution benefits (expenses) on the year 1,282,461 154,516 Effective rate of income and social contribution tax expenses 31 % (93.5) % 1) The effect of the difference in taxation of subsidiaries is substantially due to the difference between the nominal rates of Brazil and subsidiaries abroad. 2) Income tax deduction amount referring to the use of the PAT (“Worker Feeding Program”) benefit and donations made in cultural and sports projects. |
BIOLOGICAL ASSETS (Tables)
BIOLOGICAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BIOLOGICAL ASSETS | |
Schedule of changes in balances of biological assets | Balances on December 31, 2017 4,548,897 Addition 1,285,490 Depletion (709,547) Loss on fair value adjustment (129,187) Disposal (47,124) Other write-offs (12,624) Balances on December 31, 2018 4,935,905 Business combination with Fibria (1) 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 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. |
Schedule of main assumptions for calculation of fair value of biological assets | December 31, 2019 Planted useful area (hectare) 988,720 Mature assets 86,352 Immature assets 902,368 Average annual growth (IMA) - m3 /hectare /year 38.34 Average gross sale price of eucalyptus - R$/m3 66.81 Discount rate - % |
Summary of fair value adjustment of biological assets recognized under other operating income (expense), net | December 31, 2019 Physical changes (347,409) Price 532,808 185,399 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination | |
Schedule of investments by type | December 31, December 31, 2019 2018 Investments in associates and joint ventures 140,934 14,338 Goodwill 161,464 — Other investments evaluated at fair value through other comprehensive income 20,048 — 322,446 14,338 |
Schedule of investments in associates and joint ventures | Information of joint ventures as of Company Participation December 31, 2019 In equity In the income of the year Income Participation of the equity December 31, December 31, December 31, December 31, Equity year (%) 2019 2018 2019 2018 Associate Ensyn Corporation (1) 252 (268) 25.30 % 21,437 — 12,860 — Spinnova (1) 24.06 % 86,969 — (1,332) — 108,406 — 11,528 — Joint ventures Ibema 49.90 % 28,487 14,338 20,307 8,676 F&E Technologies LLC 50.00 % 4,041 134 32,528 14,338 20,441 8,676 140,934 14,338 31,969 8,676 1) Investment by which the Company has had significant influence and, therefore, value by the equity method, Note 3.1.5. |
Fibria | |
Business Combination | |
Schedule of assets acquired and liabilities assumed at the fair value in a business combination | The assets acquired and liabilities assumed at the fair value are set forth below in millions of Brazilian Reais : Fair value Fair value Assets Liabilities Current Current Cash and cash equivalents 1,795 Loans and financing 3,136 Marketable securities 4,316 Derivative financial instruments 276 Derivative financial instruments 211 Lease liabilities 376 Trade accounts receivable 1,302 Trade accounts payable 3,427 Inventories 6,187 Payroll and charges 402 Recoverable taxes 261 Taxes payable 129 Other assets 213 Dividends payable 6 Other liabilities 126 Total current assets 14,285 Total current liabilities 7,878 Non-current Non-current Marketable securities 173 Loans and financing 17,591 Derivative financial instruments 455 Lease liabilities 2,599 Recoverable taxes 988 Derivative financial instruments 126 Advances to suppliers 604 Provision for contingencies, net 3,182 Judicial deposits 210 Deferred taxes 558 Deferred taxes 1,567 Other liabilities 251 Other assets 227 4,224 Total non-current liabilities 24,307 Investments 200 Total liabilities 32,185 Biological assets 4,580 Property, plant and equipment 24,961 Right of use 2,916 Intangible assets Other intangible assets 309 Customer portfolio 9,031 Software 21 Cultivars 143 Supplier agreements 172 Equity Port concession 749 Fair value adjustment of lease agreements 44 Shareholders' equity 37,236 Goodwill 7,897 51,023 Non-controlling interest 111 Total non-current assets 55,247 Total equity 37,347 Total asset 69,532 Total liabilities and shareholders' equity 69,532 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Machinery, equipment Work in Lands Buildings and facilities progress Other (1) Total Annual average depreciation rate % 3 5 10 to 20 Cost Balance as of December 31, 2017 4,348,593 2,815,673 15,846,331 483,735 288,395 23,782,727 Additions 705 2,319 143,058 1,321,350 25,913 1,493,345 Fair value adjustment from business combination – Facepa 27,381 (3,014) 27,506 (4,880) 2,821 49,814 Business combination – Facepa 7,446 18,505 46,165 3,395 1,920 77,431 Business combination - PCH 4,291 102,176 3,831 2 26 110,326 Write-offs (34,523) (8,654) (67,280) (1,183) (111,640) Interest capitalization 1,772 1,772 Transfer and other (2) 750,824 131,515 441,420 (1,339,218) 14,197 (1,262) 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 with Fibria 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 Depreciation Balance as of December 31, 2017 — (829,821) (6,545,959) — (195,718) (7,571,498) Write-offs — 1,462 60,506 — 196 62,164 Depreciation — (78,264) (760,634) — (29,844) (868,742) Fair value adjustment from business combination - Facepa — (3,447) — (731) (4,178) Transfer and other (2) — 7 1,391 — (1,398) 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 with Fibria (3) — (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) Net Balance as of December 31, 2018 5,104,717 2,151,904 9,192,888 466,156 104,594 17,020,259 Balance as of December 31, 2019 10,321,574 5,787,873 23,670,191 969,701 371,606 41,120,945 1) Includes vehicles, furniture and utensils and computer equipment. 2) Includes transfers carried out between the items of property, plant and equipment, intangible assets, right of use arising from lease agreements and inventories. 3) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. |
INTANGIBLE (Tables)
INTANGIBLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE | |
Schedule of goodwill and intangible assets with indefinite useful life | December 31, December 31, 2019 2018 Vale Florestar 45,435 45,435 Paineiras Logística (1) — 10 PCHM (1) — 307 FACEPA 119,332 112,582 Fibria (2) 7,897,051 — Other (3) 1,196 1,196 8,063,014 159,530 1) On December 31, 2019, the Company tested goodwill on expected future profitability (goodwill) arising from business combinations with PCH Mucuri and Paineiras Logística and identified an impairment of R$317 recognized in other operating results. 2) Purchase price allocation in Note 1.2.2. 3) The amount of R$1,196 related to other intangible assets with indefinite useful life such as servitude and electricity in the year ended December 31, 2019 and 2018. |
Summary of assumptions used in valuation of cash-generating units | 2020 2021 2022 2023 2024 Net average pulp price – Foreign market (USD/t) Asia 502.30 670.00 767.00 577.00 588.60 Europa 506.70 603.00 691.80 553.90 565.00 North America 559.40 638.90 733.00 586.80 598.60 Latin America 545.50 660.40 757.60 606.60 618.70 Net average pulp price – Internal market (USD/t) 439.50 631.00 723.90 579.60 600.10 Average exchange rate (R$/U.S.$) 3.94 3.92 3.96 4.02 4.08 Discount rate (pos-tax) 9.1% p.a. 9.1% p.a. 9.1% p.a. 9.1% p.a. 9.1% p.a. Discount rate (pre-tax) 12.5% p.a. 12.5% p.a. 12.5% p.a. 12.5% p.a. 12.5% p.a. |
Schedule of intangible assets with determined useful life | December 31, December 31, 2019 2018 Beginning balance 180,311 141,785 Business combination with Fibria (1) 308,681 Additions 17,715 7,983 Fair value adjustment on business combination with Facepa 53,477 Fair value adjustment on business combination with Ibema 702 Amortization (74,332) (44,340) Fair value adjustment on business combination with Fibria 10,159,550 Customer portfolio 9,030,779 Supplier agreements 172,094 Port services agreements 694,590 Port concession 54,470 Lease agreements 44,371 Cultivars 142,744 Software 20,502 Fair value adjustment on business combination with Fibria - Amortization: (956,577) Customer portfolio (820,980) Supplier agreements (72,097) Port services agreements (29,362) Port concession (2,147) Lease agreements (7,499) Cultivars (20,392) Software (4,100) Fair value adjustment on business combination with Facepa - Amortization (15,430) Fair value adjustment on business combination with Ibema - Amortization (24) Exchange rate variation 2,930 12,461 Transfers and others 26,263 8,945 Ending balance 9,649,789 180,311 Average Annual Amortization Represented by Rate % Trademarks and patents 5 to 10 20,649 19,477 Software 20 119,265 59,112 Customer portfolio 2.5 to 5 7,393 19,004 Non-compete agreement 5 2,150 2,812 Research and development agreement 19 74,643 79,906 Development and implementation of systems 20 1,687 Right of exploitation - Terminal concession of Macuco 4 166,932 Supplier Relationship - Chemicals 5 51,562 Others 1,857 Intangible assets (fair value adjustments) acquired in the business combination, net – Ibema 678 Intangible assets (fair value adjustments) acquired in the business combination, net – Fibria 9,202,973 Customer portfolio 9 8,209,799 Supplier agreements 13 to 100 99,997 Port services agreements 4 665,228 Ports concession 4 52,324 Lease agreements 17 36,871 Cultivars 14 122,352 Software 20 16,402 9,649,789 180,311 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. |
TRADE ACCOUNTS PAYABLE (Tables)
TRADE ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TRADE ACCOUNTS PAYABLE | |
Schedule of trade accounts payable | December 31, December 31, 2019 2018 In local currency Related party (Companies of the Suzano group) 2,478 1,804 Third party 1,288,774 558,041 In foreign currency Third party (1) 1,085,207 72,720 2,376,459 632,565 1) 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. On December 31, 2019, the amount of R$936,887 in the consolidated refers to purchases of Klabin's pulp. |
LOANS, FINANCING AND DEBENTUR_2
LOANS, FINANCING AND DEBENTURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LOANS, FINANCING AND DEBENTURES | |
Schedule of loans, financing and debentures by type | Average annual Current Non-current Total interest rate - December 31, December 31, December 31, December 31, December 31, December 31, Type Interest rate % 2019 2018 2019 2018 2019 2018 In foreign currency BNDES UMBNDES 6.6 26,307 21,577 27,620 139,940 53,927 161,517 Bonds Fixed 5.7 640,177 216,624 27,375,673 11,189,403 28,015,850 11,406,027 Syndicated loan LIBOR 2.7 29,268 37,546 12,269,251 11,787,588 12,298,519 11,825,134 Finnvera/EKN (“Export Credit Agencies”) LIBOR 236,385 560,689 797,074 Financial lease U.S.$ 5,608 12,617 18,225 Export credits (ACC - pre-payment) LIBOR/Fixed 4.1 1,965,600 1,896,717 3,162,228 274,673 5,127,827 2,171,390 Others 3,481 3,481 2,664,833 2,414,457 42,834,772 23,964,910 45,499,604 26,379,367 In local currency BNDES TJLP 7.8 283,658 28,867 1,517,649 183,269 1,801,307 212,136 BNDES TLP 9.2 18,404 — 441,233 459,637 BNDES Fixed 5.2 39,325 26,119 77,333 95,034 116,658 121,153 BNDES SELIC 5.9 78,458 — 718,017 796,475 FINAME Fixed 6.6 4,781 970 9,564 2,010 14,345 2,980 BNB Fixed 6.7 37,815 25,038 156,904 191,976 194,719 217,014 CRA (“Agribusiness Receivables Certificates”) CDI/IPCA 5.9 2,860,938 789,892 2,952,451 1,588,986 5,813,389 2,378,878 Export credit note CDI 6.2 131,914 93,001 1,270,065 1,327,378 1,401,979 1,420,379 Rural producer Certificate CDI 7.6 5,840 6,809 273,303 273,029 279,143 279,838 Export credits (“Pre payment”) Fixed 6.2 77,694 — 1,312,586 1,390,280 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP Fixed 8.0 76,596 7,725 475,905 5,135 552,501 12,860 Others (Revolving Cost, Working capital and Industrial Development Fund (“FDI”)) Fixed 0.4 954 10,467 4,558 16,930 5,513 27,397 FDIC Funds of credit rights Fixed — 22,054 22,054 Fair value adjustment on business combination with Fibria (63,256) — (63,256) Debentures CDI 6.7 9,997 1,297 5,412,035 4,662,156 5,422,032 4,663,453 3,563,118 1,012,239 14,621,603 8,345,903 18,184,722 9,358,142 6,227,951 3,426,696 57,456,375 32,310,813 63,684,326 35,737,509 Interest on financing 886,886 345,988 136,799 1,023,685 345,988 Non-current funding 5,341,065 3,080,708 57,319,576 32,310,813 62,660,641 35,391,521 6,227,951 3,426,696 57,456,375 32,310,813 63,684,326 35,737,509 |
Schedule of changes in loans, financing and debentures | December 31, December 31, 2019 2018 Beginning balance 35,737,509 12,191,856 Amounts from the business combination with Fibria (1) 20,667,096 — Reclassification - accounts payable from lease operations (2) (18,225) — Fundraising 18,993,837 25,539,994 Business combination with PCH / FACEPA — 79,923 Interest accrued 3,362,250 839,278 Exchange rate variation, net 1,781,562 1,457,989 Settlement of principal (13,994,708) (3,738,577) Settlement of interest (2,977,957) (669,088) Fair value adjustment on business combination with Fibria (63,256) — Amortization of fundraising costs 185,807 36,134 Other 10,411 — Ending balance 63,684,326 35,737,509 1) Business combination with Fibria its subsidiaries held on January 3, 2019, Note 1.2.1. 2) As of January 1, 2019, the lease balance was reclassified to “Accounts payable from lease operations”, due to adoption of IFRS 16 by the Company. |
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 9,175 10,061 8,384 — — — — 27,620 Bonds 762,320 — — 2,402,437 2,379,661 2,812,354 19,018,901 27,375,673 Syndicated Loan 1,343,567 3,197,689 7,727,996 — — — — 12,269,252 Export credits (ACC pre-payment) 136,320 13,143 — 2,015,350 997,414 — — 3,162,227 2,251,382 3,220,893 7,736,380 4,417,787 3,377,075 2,812,354 19,018,901 42,834,772 In local currency BNDES – TJLP 269,593 265,467 266,362 239,883 292,573 169,102 14,668 1,517,649 BNDES – TLP 18,866 18,866 18,866 18,866 17,617 20,120 328,032 441,233 BNDES – Fixed 28,959 24,567 18,601 5,206 — — — 77,333 BNDES – Selic 76,117 73,304 96,312 88,347 210,392 173,545 — 718,017 FINAME 3,829 2,786 1,656 1,197 96 — — 9,564 BNB 35,285 33,201 35,285 33,001 10,285 9,847 — 156,904 CRA (“Agribusiness Receivables Certificates”) — 1,512,680 1,439,771 — — — — 2,952,451 Export credit note — — — — 640,800 629,265 — 1,270,065 Rural producer certificate — — — — 137,500 135,803 — 273,303 Export credits (“Pre payment”) — — — 1,312,586 — — — 1,312,586 FCO (“Central West Fund”), FDCO (“Central West Development Fund”) and FINEP 67,986 67,986 67,986 67,989 67,986 67,986 67,986 475,905 Others (Revolving costs, working capital, FIDC and FDI) 4,559 — — — — — — 4,559 Debentures — — — — 2,340,550 2,324,307 747,178 5,412,035 505,194 1,998,857 1,944,839 1,767,075 3,717,799 3,529,975 1,157,864 14,621,603 2,756,576 5,219,750 9,681,219 6,184,862 7,094,874 6,342,329 20,176,765 57,456,375 |
Schedule of loans and financing by currency | December 31, December 31, 2019 2018 Brazilian Reais 17,362,903 9,358,142 U.S. Dollar 45,460,138 26,217,850 Selic (1) 807,358 — Currency basket 53,927 161,517 63,684,326 35,737,509 1) Contractual definition of currency in contracts with Brazilian National Bank for Economic and Social Development (“Banco Nacional de Desenvolvimento Econômico e Social or “BNDES”) that are in Brazilian Reais plus SELIC interest. |
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 December 31, December 31, Nature Cost Amortization 2019 2018 Bonds 343,642 129,297 201,467 67,189 CRA and NCE 125,222 73,508 47,443 20,195 Import (“ECA”) 101,811 101,811 — 16,235 Syndicated Loan 72,774 33,209 40,382 30,552 Debentures 21,592 4,674 19,065 18,944 BNDES (“IOF”) (1) 53,730 13,702 38,447 — Others 18,147 8,381 4,590 3,188 736,918 364,582 351,394 156,303 1) Tax on Financial Operations |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 30, 2019 1,769,645 130,051 45,999 1,904,455 87 3,850,237 1) The amount of R$268,081 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 per annual (1) Maturity (2) liabilities Lands and farms 10.89 November 2046 1,761,273 Machines and Equipment’s 10.15 July 2032 214,569 Buildings 10.92 April 2027 41,391 Ships and boats 10.76 February 2039 1,410,474 Vehicles 8.99 April 2020 1,190 3,428,897 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 Current 656,844 Non-current 3,327,226 1) The amount of R$50,795 related to interest expenses on leased lands is capitalized to biological assets to compose the formation cost. |
Schedule of expenses recognised in profit or loss | In the year ended December 31, 2019, were recognized the amounts: Expenses relating to short-term assets 37,007 Expenses relating to low-value assets 14,349 51,356 |
Schedule of reconciliation of operating lease commitments | Operating lease commitments disclosed as of December 31, 2018 1,448,241 Business combination with Fibria 2,974,729 Discounted through a lessee’s incremental loan rate at initial adoption (1,011,726) Reclassification from loans and financing (1) 18,225 Agreements revalued as service agreements (572) 3,428,897 1) As of January 1, 2019, the lease balance was reclassified from "Loans and financing", due to adoption of IFRS 16 by the Company, as disclosed in note 19.2. |
PROVISION FOR JUDICIAL LIABIL_2
PROVISION FOR JUDICIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROVISION FOR JUDICIAL LIABILITIES | |
Schedule of provisions for probable losses according to lawsuit natures | December 31, December 31, 2019 2018 Judicial deposits Provision Provision, net Provision, net Taxes (124,133) 3,176,503 3,052,370 296,869 Labor (50,464) 227,139 176,675 50,869 Civil 273 283,159 283,432 3,532 (174,324) 3,686,801 3,512,477 351,270 |
Schedule of changes in provisions for probable losses | December 31, 2019 Civil and Tax Labor environment Total Beginning balance 296,869 50,869 3,532 351,270 Business combination with Fibria (1) 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 10,100 107,224 Monetary adjustment 13,388 31,116 5,257 49,761 Fair value adjustment on business combination with Fibria 2,684,090 — 218,262 2,902,352 Ending balance 3,176,503 227,139 283,159 3,686,801 1) Business combination with Fibria and its subsidiaries held on January 3, 2019, Note 1.2.1. December 31, 2018 Civil and Tax Labor environment Total Beginning balance 273,324 40,363 3,382 317,069 Business combination with Facepa — 1,900 — 1,900 Payments (18,351) (22,580) (81) (41,012) Write-off (13,605) (5,011) (394) (19,010) Additions 49,754 28,716 150 78,620 Monetary adjustment 5,747 7,481 475 13,703 Ending balance 296,869 50,869 3,532 351,270 |
Schedule of possible losses for which no provision has been recorded | December 31, December 31, 2019 2018 Taxes (1) 7,504,398 1,077,761 Labor 279,934 85,309 Civil (1) 2,995,576 43,271 10,779,908 1,206,341 1) Amounts net of the fair value adjustment on business combination with Fibria related to possible contingencies, as mentioned above. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of changes in actuarial liabilities | Balance at December 31, 2017 351,263 Interest on employee benefits 35,920 Actuarial loss 69,305 Benefits paid in the year (26,061) Balance at December 31, 2018 430,427 Business combination with Fibria (1) 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 1) Business combination with Fibria its subsidiaries held on January 3, 2019, Note 1.2.1. |
Schedule of key actuarial economic and biometric assumptions used in the calculations of liability | December 31, December 31, 2019 2018 Discount rate – medical assistance and life insurance 3.56% p.a. 4.91% p.a. Medical cost growth rate above basic inflation 3.25% p.a. 3.25% p.a. Economic inflation 3.50% p.a. 4.00% p.a. Biometric table of general mortality AT-2000 AT-2000 Biometric table of mortality of disable persons IAPB 57 IAPB 57 Retirement age 65 years 65 years Family composition 90% married 90% married Turnover 1.00% p.a. 1.00% p.a. Permanency in the plan Aging factor 0 to 24 years: 1.50% p.a 0 to 24 years: 1.50% p.a |
Summary of sensitivity analysis of actuarial liabilities | The Company made the sensitivity analysis regarding the relevant assumptions of the plans on December 31, 2019, as set forth below: Relevant assumptions Changes in premise Increase in premisse Decrease in premisse Discount rate Decrease of 4.88% Increase of 8.56% Medical costs growth rate Increase of 8.27% Decrease of 5.60% Mortality Increase of 7.23% Decrease of 4.40% Estimated inflation rate No change No change |
Schedule of expected benefit obligation payments for future years | Medical assistance and Payments life insurance 2020 31,458 2021 32,701 2022 33,864 2023 35,014 2024 36,122 2025 on onwards 194,145 |
SHARE-BASED COMPENSATION PLAN (
SHARE-BASED COMPENSATION PLAN (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION PLAN | |
Schedule of changes in phantom shares options | December 31, December 31, December 31, 2019 2018 2017 Number of shares Beginning balance 5,045,357 5,055,519 3,048,991 Granted during of the year 2,413,038 1,415,476 3,035,488 Exercised (1) (827,065) (751,859) (695,532) Exercised due to resignation (1) (106,983) (153,601) (161,270) Abandoned / prescribed due to resignation (527,910) (520,178) (172,158) Ending balance 5,996,437 5,045,357 5,055,519 1) For share options exercised and those exercised due to termination of employment, the average price on December 31, 2019 and December 31, 2018 was R$31.75 and R$47.77, respectively. |
Schedule of outstanding phantom shares option plans | December 31, 2019 Quantity of Fair value on outstanding Plan Grant date Exercise date grant date (1) options granted SAR 2015 01/04/2015 01/04/2020 11.69 3,635 Deferral 2015 01/03/2016 01/03/2019 16.93 — Deferral 2015 01/03/2016 01/03/2020 16.93 61,851 SAR 2016 01/04/2016 01/04/2021 15.96 64,075 PLUS 2016 01/04/2016 01/04/2021 15.96 16,708 SAR 2016 - Oct 03/10/2016 03/10/2021 11.03 8,934 SAR 2017 03/04/2017 03/04/2022 13.30 831,546 PLUS 2017 03/04/2017 03/04/2022 13.30 225,553 ILP 2017 - 36 03/04/2017 03/04/2020 13.30 304,512 ILP 2017 - 48 03/04/2017 03/04/2021 13.30 304,512 ILP 2017 - 60 03/04/2017 03/04/2022 13.30 304,512 ILP 2017 - CAB 01/05/2017 01/05/2020 13.30 307,141 ILP 2017 - 36 Oct 02/10/2017 02/10/2020 15.87 84,436 Deferral 2017 01/03/2018 01/03/2021 19.88 169,575 Deferral 2017 01/03/2018 01/03/2022 19.88 169,575 SAR 2018 02/04/2018 02/04/2023 21.45 726,537 PLUS 2018 02/04/2018 02/04/2023 21.45 74,592 ILP 2019 - 24 01/03/2019 01/03/2024 41.10 520,000 ILP 2019 - 36 01/03/2019 01/03/2024 41.10 520,000 Deferral 2018 01/03/2019 01/03/2022 41.10 92,356 Deferral 2018 01/03/2019 01/03/2023 41.10 92,356 ILP 2019 - 36 H 25/03/2019 25/03/2024 42.19 7,500 ILP 2019 - 48 H 25/03/2019 25/03/2024 42.19 7,500 ILP 2019 - 24 Apr 01/04/2019 01/04/2024 42.81 20,000 ILP 2019 - 36 Ar 01/04/2019 01/04/2024 42.81 20,000 SAR 2019 01/04/2019 01/04/2024 42.81 792,565 PLUS 2019 01/04/2019 01/04/2024 42.81 15,572 ILP - Retention 2019 - 12 01/10/2019 01/10/2020 31.86 105,964 ILP - Retention 2019 - 24 01/10/2019 01/10/2021 31.86 105,930 ILP 2019 - 24 Oct 01/10/2019 01/10/2021 31.75 7,800 ILP 2019 - 36 Oct 01/10/2019 01/10/2022 31.75 19,500 ILP 2019 - 48 Oct 01/10/2019 01/10/2023 31.75 11,700 5,996,437 (1) Amounts expressed in Reais. |
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 December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2017 Non-current liabilities Provision for phantom stock plan 136,505 124,318 (46,389) (126,439) (32,192) Shareholders' equity Stock option granted 5,979 5,100 (879) (5,170) (1,521) Total general and administrative expenses from share-based transactions (47,268) (131,609) (33,713) |
LIABILITIES FOR ASSETS ACQUIS_2
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | |
Schedule of liabilities for assets acquisitions | December 31, December 31, 2019 2018 Lands and forests acquisition Real estate receivables certificates (1) 78,345 91,085 Duratex (2) — 385,397 78,345 476,482 Business combination Facepa (3) 42,533 41,185 Vale Florestar Fundo de Investimento em Participações ("VFFIP") (4) 420,737 474,845 463,270 516,030 541,615 992,512 Current liabilities 94,414 476,954 Non-current liabilities 447,201 515,558 1) Refers to obligations with the acquisition of land, farms, reforestation and houses built in Maranhão, restated by the IPCA. 2) Refers to the commitments related to the acquisition of rural properties and forests (biological assets), restated by the IPCA settled in August 2019. 3) 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. 4) 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) | 12 Months Ended |
Dec. 31, 2019 | |
SHAREHOLDERS' EQUITY | |
Schedule of share capital | Ordinary Quantity (%) Shareholder Controlling Shareholders Suzano Holding S.A. 367,612,329 27.01 Controller 194,800,797 14.31 Managements 35,532,742 2.61 Alden Fundo de Investimento em Ações 26,154,741 1.92 624,100,609 45.85 Treasury 12,042,004 0.88 BNDESPAR 150,217,425 11.04 Votorantim S.A. 75,180,059 5.52 Other shareholders 499,723,487 36.71 1,361,263,584 100.00 |
Schedule of other reserves | Exchange variation on conversion of financial Debenture statements of conversion Actuarial gain foreign Deemed 5th issue (loss) subsidiaries cost Total Balances at December 31, 2017 (45,745) (52,749) 26,622 2,370,200 2,298,328 Actuarial gain (loss) — (45,741) — — (45,741) Gain (loss) on conversion of financial statements and on foreign investments — — 137,546 — 137,546 Realization of deemed cost, net of taxes — — — (68,424) (68,424) Balances at December 31, 2018 (45,745) (98,490) 164,168 2,301,776 2,321,708 Actuarial gain (loss) — (95,283) — — (95,283) Gain (loss) on conversion of financial statements and on foreign investments — — 47,834 — 47,834 Realization of deemed cost, net of taxes — — — (52,918) (52,918) Balances at December 31, 2019 (45,745) (193,773) 212,002 2,248,858 2,221,342 |
Schedule of treasury shares | Average cost Historical Market Quantity per share value value Balances at December 31, 2017 13,842,004 17.42 241,088 258,797 Sale (1,800,000) 12.68 (22,823) (66,636) Balances at December 31, 2018 12,042,044 18.13 218,265 458,560 Balances at December 31, 2019 12,042,044 18.13 218,265 477,827 |
Schedule of result absorption | Result Reserve Limit on absorption balances share December 31, December 31, December 31, December 31, capital% 2019 2018 2019 2018 Realization of deemed cost, net of taxes (52,918) (68,424) — — Tax incentive reserve (684,563) 288,557 — 684,563 Special statutory reserve (242,612) 7,882 — 242,612 Legal reserve (105,671) 15,917 317,144 422,815 Capital increase reserve (1,730,629) 70,940 — 1,730,629 Minimum mandatory dividends — 3,466 — — (2,816,393) 318,339 317,144 3,080,619 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of basic earnings (losses) per share | December 31, December 31, December 31, 2019 2018 2017 Resulted of the year attributable for controlling shareholders' (2,817,518) 319,693 1,820,994 Weighted average number of shares in the year 1,361,264 1,105,826 1,106,297 Weighted average treasury shares (12,042) (12,333) (14,597) Weighted average number of outstanding shares 1,349,222 1,093,493 1,091,700 Basic loss per common share - R$ (2.08825) 0.29236 1.66804 |
Schedule of diluted earnings (losses) per share | December 31, December 31, December 31, 2019 2018 2017 Resulted of the year attributed to controlling shareholders' (2,817,518) 319,693 1,820,994 Weighted average number of shares in the year (except treasury shares) 1,349,222 1,093,493 1,091,700 Adjustment by stock options — 1,386 2,428 Weighted average number of shares (diluted) 1,349,222 1,094,879 1,094,128 Diluted loss per common share - R$ (2.08825) 0.29199 1.66433 |
NET FINANCIAL RESULT (Tables)
NET FINANCIAL RESULT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NET FINANCIAL RESULT | |
Schedule of net financial result | December 31, December 31, December 31, 2019 2018 2017 Financial expenses Interest on loans, financing and debentures (1) (3,358,806) (1,033,485) (988,382) Amortization of fundraising costs (220,642) (44,499) (49,517) Other financial expenses (600,948) (422,390) (180,577) Amortization of fair value adjustment on business combination with Fibria 1,548 (4,178,848) (1,500,374) (1,218,476) Financial income Marketable securities 392,018 442,378 285,888 Other financial income 63,816 17,329 19,890 Amortization of fair value adjustment on business combination with Fibria 37,412 493,246 459,707 305,778 Income from derivative financial instruments Income 2,711,394 588,049 332,961 Expenses (3,786,646) (3,323,245) (259,690) (1,075,252) (2,735,196) 73,271 Monetary and exchange rate variation, net Exchange rate variation on loans, financing and debentures (1,764,035) (1,311,061) (163,418) Monetary and exchange rate variations - other assets and liabilities (2) (200,892) 244,411 (15,995) (1,964,927) (1,066,650) (179,413) (6,725,781) (4,842,513) (1,018,840) 1) Not include the amount of R$4,213 arising from capitalized interest in the year ended on December 31, 2019 (R$1,772 in the year ended on December 31, 2018). Additionally, included the amount of R$770 related to interest of FIDC (R$2,268 in the year ended on December 31, 2018). 2) Includes effects of exchange rate variations of customers, suppliers, cash and cash equivalents, marketable securities and others. |
NET SALES (Tables)
NET SALES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NET SALES | |
Schedule of reconciliation from gross sales to net sales revenue | December 31, December 31, December 31, 2019 2018 2017 Gross sales 31,395,955 14,802,821 11,752,459 Sales deductions Adjustment to present value (5,316) (4,984) — Returns and cancelations (109,641) (75,477) (50,199) Discounts and rebates (1) (3,835,140) (15,695) (6,589) 27,445,858 14,706,665 11,695,671 Taxes on sales (2) (1,432,908) (1,263,289) (1,114,998) Net sales 26,012,950 13,443,376 10,580,673 1) The customer contracts of Fibria, a wholly-owned subsidiary incorporated on April 1, 2019, provide for contractual discounts that were maintained and that, therefore, impacted the Company's income in 2019. 2) In 2018, included the social contribution to the National Institute of Social Security (“INSS”), which represents 2.5% of the gross sales revenue in the domestic market. This is a tax obligation pursuant to Law nº. 12.546/11, article 8, Appendix I and their respective amendments. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION | |
Schedule of operating segments | December 31, 2019 Not Pulp Paper segmented Total Net sales 21,027,686 4,985,264 — 26,012,950 Domestic market (Brazil) 1,833,936 3,480,279 — 5,314,215 Foreign market 19,193,750 1,504,985 — 20,698,735 Asia 9,605,799 136,882 — 9,742,681 Europe 5,950,832 221,697 — 6,172,529 North America 3,592,563 382,628 — 3,975,191 South and Central America 44,556 710,086 — 754,642 Africa — 53,692 — 53,692 Cost of sales (17,440,018) (3,303,464) — (20,743,482) Gross profit 3,587,668 1,681,800 — 5,269,468 Gross margin (%) 17.1 % 33.7 % — 20.3 % Operating income (expenses) (2,089,286) (679,719) 128,115 (2,640,890) Selling (1,503,775) (401,504) — (1,905,279) General and administrative (806,774) (366,584) — (1,173,358) Other operating, net 209,577 68,062 128,115 405,754 Income from associates and joint ventures 11,686 20,307 — 31,993 Operating profit before net financial income ("EBIT") (1) 1,498,382 1,002,081 128,115 2,628,578 Operating margin (%) 7.1 % 20.1 % 10.1 % Financial result, net — — (6,725,781) (6,725,781) Net income (loss) before taxes 1,498,382 1,002,081 (6,597,666) (4,097,203) Income taxes — — 1,282,461 1,282,461 Net income (loss) for the year 1,498,382 1,002,081 (5,315,205) (2,814,742) Profit (loss) margin for the year (%) 7.1 % 20.1 % — (10.8) % Result of the year attributable to controlling Shareholders (5,317,981) (2,817,518) Result of the year attributed to non-controlling shareholders — — 2,776 2,776 Depreciation, depletion and amortization 7,575,630 516,301 — 8,091,931 1) Earnings before interest and tax. December 31, 2018 Not Pulp Paper segmented Total Net sales 4,660,102 — 13,443,376 Domestic market (Brazil) 744,566 3,307,074 — 4,051,640 Foreign market 8,038,708 1,353,028 — 9,391,736 Asia 3,837,998 101,695 — 3,939,693 Europe 2,810,899 225,111 — 3,036,010 North America 1,340,907 210,831 — 1,551,738 South and Central America 48,904 774,730 — 823,634 Africa 40,661 — 40,661 Cost of sales (3,965,912) (2,956,419) — (6,922,331) Gross profit 1,703,683 — 6,521,045 Gross margin (%) 54.8 % 36.6 % — 48.5 % Operating income (expenses) (626,887) (886,347) — (1,513,234) Selling expenses (212,869) (385,857) — (598,726) General and administrative expenses (275,859) (549,350) — (825,209) Other operating income (expenses), net (138,159) 41,284 — (96,875) Income from associates and joint ventures — 7,576 — 7,576 Operating profit before net financial income (1) 4,190,475 817,336 — 5,007,811 Operating margin (%) 47.7 % 17.5 % — 37.3 % Financial result, net — — (4,842,513) (4,842,513) Net income (loss) before taxes 4,190,475 817,336 (4,842,513) 165,298 Income taxes — — 154,516 154,516 Net income (loss) for the year 4,190,475 817,336 (4,687,997) 319,814 Profit margin for the year (%) 47.7 % 17.5 % — 2.5 % Result of the year attributable to controlling shareholders (4,688,118) Result of the year attributed to non-controlling shareholders — — Depreciation, depletion and amortization 1,105,381 457,842 — 1,563,223 1) Earnings before interest and tax. December 31,2017 Not Pulp Paper segmented Total Net sales revenue 6,920,494 3,660,179 — 10,580,673 Domestic market (Brazil) 624,320 2,597,838 — 3,222,158 Foreign market 6,296,174 1,062,341 — 7,358,515 Asia 2,976,504 32,950 — 3,009,454 Europe 2,262,162 139,572 — 2,401,734 North America 966,789 254,971 — 1,221,760 South and Central America 90,719 608,445 — 699,164 Africa — 26,403 — 26,403 Cost of sales (3,937,036) (2,559,268) — (6,496,304) Gross profit 2,983,458 1,100,911 — 4,084,369 Gross margin (%) 43.1 % 30.1 % — 38.6 % Operating income (expenses) (104,985) (749,449) 48,517 (805,917) Selling (163,879) (259,446) — (423,325) General and administrative (185,141) (343,833) — (528,974) Other operating, net 244,035 (152,042) 48,517 140,510 Income from associates and joint ventures — 5,872 — 5,872 Operating profit before net financial income ("EBIT") (1) 2,878,473 351,462 48,517 3,278,452 Operating margin (%) 41.6 % 9.6 % — 31.0 % Financial result, net — — (1,018,840) (1,018,840) Net income (loss) before taxes 2,878,473 351,462 (970,323) 2,259,612 Income taxes — — (438,618) (438,618) Net income (loss) for the year 2,878,473 351,462 (1,408,941) 1,820,994 Profit (loss) margin for the year (%) 41.6 % 9.6 % — 17.2 % Result of the year attributable to controlling shareholders 2,878,473 351,462 (1,408,941) 1,820,994 Depreciation, depletion and amortization 1,007,280 395,498 — 1,402,778 1) Earnings before interest and tax. |
Schedule of paper net sales by product | December 31, December 31, December 31, Products 2019 2018 2017 Market pulp (1) 21,027,686 8,783,274 6,920,494 Printing and writing paper (2) 4,100,502 3,834,380 2,265,093 Paperboard 823,360 764,701 1,273,540 Other 61,402 61,021 121,546 Net sales 26,012,950 13,443,376 10,580,673 1) Revenue from fluff pulp represents (around 1% 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% of total net sales. Therefore, it was included in the sales of printing and writing paper. |
Goodwill based on expected future profitability | December 31, December 31, 2019 2018 Pulp 7,942,486 45,752 Consumer goods 119,332 112,582 8,061,818 158,334 |
EXPENSES BY NATURE (Tables)
EXPENSES BY NATURE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EXPENSES BY NATURE | |
Schedule of expenses by nature | December 31, December 31, December 31, 2019 2018 2017 Cost of sales (1) Personnel expenses (1,374,331) (649,741) (546,090) Variable cost (10,067,716) (3,197,895) (2,994,349) Logistics cost (2,776,021) (1,044,899) (963,379) Depreciation, depletion and amortization (4,290,308) (1,523,935) (1,367,856) Amortization of fair value adjustment on business combination with Fibria and Facepa (2,844,741) — — Other 609,635 (505,861) (624,630) (20,743,482) (6,922,331) (6,496,304) Selling expenses Personnel expenses (215,640) (145,844) (106,083) Services (85,161) (78,227) (45,593) Logistics cost (618,089) (297,129) (220,944) Depreciation and amortization (84,018) (4,471) (3,547) Amortization of fair value adjustment on business combination with Fibria (820,730) — — Other (2) (81,641) (73,055) (47,158) (1,905,279) (598,726) (423,325) General and Administrative expenses Personnel expenses (642,543) (469,661) (309,019) Services (323,841) (235,544) (105,522) Depreciation and amortization (52,830) (34,817) (31,375) Amortization of fair value adjustment on business combination with Fibria 26,609 — — Other (3) (180,753) (85,187) (83,058) (1,173,358) (825,209) (528,974) Other operating (expenses) income net Rents and leases 5,805 — — Result from sale of other products, net (4) 15,229 8,785 4,765 Result from sale and disposal of property, plant and equipment and biological assets, net (63,454) 4,523 4,700 Result on fair value adjustment of biological assets 185,399 (129,187) 192,504 Partial write-off of intangible assets — — (18,845) Provision for loss and write-off of property, plant and equipment and biological assets — (18,103) (66,707) Amortization of intangible assets (8,193) (9,947) (8,303) Receipt of royalties — — 2,603 Judicial agreements — — 20,231 Land conflict agreement — — (11,779) Insurance reimbursement 7,917 — — Trade agreement credits (5) 87,000 51,846 10,671 Provision for loss of judicial deposits (3,284) — — Amortization of fair value adjustment on business combination with Fibria, Facepa and Ibema (12,143) — — Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) (6) 128,115 335 5,613 Other operating income (expenses), net 63,363 (5,127) 5,057 405,754 (96,875) 140,510 1) Includes the amount of R$615,394, related to idle capacity and maintenance downtime. 2) Includes expected credit losses, insurance, materials of use and consumption, expenses with travel, accommodation, participation in trade fairs and events. 3) Includes corporate expenses, insurance, materials of use and consumption social projects and donations, expenses with travel and accommodation. 4) Includes depletion from wood sold in the amount of R$5,598 (On December 31, 2018 R$9,869). 5) The amount refers to the receipt of credits from compulsory loans discussed in lawsuits against Centrais Elétricas Brasileiras S.A. (Eletrobrás). 6) For further information see Note 9. |
COMPANYS OPERATIONS - Equity in
COMPANYS OPERATIONS - Equity interest (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Veracel Celulose S.A. | ||
Company Operations | ||
Percentage of ownership interest in joint operation | 50.00% | |
Ibema Companhia Brasileira de Papel. | ||
Company Operations | ||
Percentage of ownership interest in joint venture | 49.90% | 49.90% |
Ensyn Corporation | ||
Company Operations | ||
Participation equity in associate (as a percent) | 25.30% | |
F&E Tecnologies LLC | ||
Company Operations | ||
Participation equity in associate (as a percent) | 50.00% | |
Spinnova Oy | ||
Company Operations | ||
Participation equity in associate (as a percent) | 24.06% | |
CelluForce Inc. | ||
Company Operations | ||
Percentage of ownership in equity securities measured at FVOCI | 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% | 50.00% |
Comercial e Agrcola Paineiras Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Eucalipto Holding S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
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% | |
Fibria Terminal de Celulose de Santos SPE S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Fibria Overseas Finance Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Fibria Overseas Holding KFT. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Fibria Terminais Portuarios S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 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% |
Gansu FuturaGene Biotech Co. Ltd. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 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% | |
Projetos Especiais e Investimentos Ltda. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Rio Verde Participacoes e Propriedades Rurais S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Stenfar S.A. Indl. Coml. Imp. Y. Exp. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Sun Paper and Board Limited. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | 100.00% |
Suzano ustria 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% | |
Suzano/Fibria International Trade GmbH | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 100.00% | |
Suzano Luxembourg. | ||
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 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% | |
Suzano Holding S.A. | ||
Company Operations | ||
Percentage of ownership interest in subsidiary | 45.85% |
COMPANYS OPERATIONS - Share exc
COMPANYS OPERATIONS - Share exchange ratio (Details) R$ / shares in Units, R$ in Thousands | Jan. 02, 2019BRL (R$)EquityInstrumentsR$ / sharesshares | Jan. 01, 2019R$ / sharesshares | Jan. 31, 2019BRL (R$) | Dec. 31, 2019BRL (R$) | Jan. 10, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
Company Operations | ||||||
Share capital increase | R$ | R$ 3027528 | |||||
Capital reserves | R$ | R$ 6416864 | R$ 674221 | ||||
Eucalipto Holding S.A. | ||||||
Company Operations | ||||||
Number of shares issuable for each common share | shares | 0.4611 | |||||
Final number of shares issuable for each common share | shares | 0.4613 | |||||
Suzano Holding S.A. | ||||||
Company Operations | ||||||
Number of shares issued by ex-treasury resulting from vesting of option plans initially | shares | 1,091,984,141 | |||||
Number of shares issued by ex-treasury resulting from vesting of option plans finally | shares | 1,093,784,141 | |||||
Number of shares issued as a result of merger | EquityInstruments | 255,437,439 | |||||
Market value per share | R$ / shares | R$ 36.95 | |||||
Consideration in the form of equity shares | R$ | R$ 9438413 | |||||
Share capital increase | R$ | 3,027,528 | R$ 3027528 | ||||
Capital reserves | R$ | R$ 6410885 | |||||
Capital gain per share | R$ / shares | R$ 15.38 | |||||
Capital gain per share calculated final | R$ / shares | R$ 15.39 | |||||
Fibria | ||||||
Company Operations | ||||||
Number of shares issued by ex-treasury resulting from vesting of option plans initially | shares | 553,080,611 | |||||
Number of shares issued by ex-treasury resulting from vesting of option plans finally | shares | 553,733,881 | |||||
Consideration in the form of equity shares | R$ | R$ 9438413 |
COMPANYS OPERATIONS - Cash inst
COMPANYS OPERATIONS - Cash installment (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | Jan. 10, 2019 | Dec. 12, 2018 | Jan. 02, 2019 |
Suzano Holding S.A. | |||
Company Operations | |||
Cash payable for each share | R$ 52.50 | ||
Adjustment to cash payable per share | R$ 2.73 | ||
Number of business days | 252 days | ||
Annual percentage of interest rate variation | 6.40% | ||
Cash transferred per share | R$ 50.20 | ||
Cash transferred | R$ 27797441 | ||
Issuance of shares by Suzano | R$ 9438413 | ||
Fibria | |||
Company Operations | |||
Dividends per share | R$ 5.03 | ||
Cash transferred | 27,797,441 | ||
Issuance of shares by Suzano | 9,438,413 | ||
Total consideration | 37,235,854 | ||
Book value of Fibria's shareholder's equity | 14,149,004 | ||
Write-off of the book value of existing goodwill, net of the deferred income taxes | (3,495,077) | ||
Mandatory minimum dividends (eliminated from the balance sheet at the date of acquisition) | 724,829 | ||
Book value of Fibria's shareholders' equity, net of goodwill | 11,378,756 | ||
Fair value adjustment on business combination with Fibria (assets and liabilities): | |||
Inventories | 2,178,903 | ||
Property, plant and equipment | 9,362,315 | ||
Customer relationship | 9,030,779 | ||
Port Assets | 749,060 | ||
Contingent liabilities | (2,970,546) | ||
Loans and financing | (59,921) | ||
Taxes recoverable | (235,843) | ||
Other assets and liabilities, net | 451,624 | ||
Deferred taxes, net | (546,324) | ||
Total impact of fair value | 17,960,047 | ||
Goodwill on the expectation of future profitability | R$ 7897051 | ||
Period of past sales information | 5 years |
COMPANYS OPERATIONS - Summary o
COMPANYS OPERATIONS - Summary of main balance sheet items of Fibria (Details) - BRL (R$) R$ in Thousands | 1 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CURRENT | |||||
Cash and cash equivalents | R$ 3249127 | R$ 4387453 | R$ 1076833 | R$ 1614697 | |
Marketable securities | 6,150,631 | 21,098,565 | |||
Derivative financial instruments | 260,273 | 352,454 | |||
Trade accounts receivable | 3,035,817 | 2,537,058 | |||
Inventories | 4,685,595 | 1,853,104 | |||
Recoverable taxes | 997,201 | 296,832 | |||
Other assets | 335,112 | 169,175 | |||
Total current assets | 18,884,237 | 30,798,892 | |||
NON-CURRENT | |||||
Marketable securities | 179,703 | ||||
Derivative financial instruments | 838,699 | 141,480 | |||
Recoverable taxes | 708,914 | 231,498 | |||
Deferred taxes | 2,134,040 | 8,998 | |||
Advances to suppliers | 1,087,149 | 218,493 | |||
Judicial deposits | 268,672 | 129,005 | |||
Other assets | 228,881 | 93,935 | |||
Biological assets | 10,571,499 | 4,935,905 | 4,548,897 | ||
Investments | 322,446 | 14,338 | |||
Property, plant and equipment | 41,120,945 | 17,020,259 | |||
Right of use | 3,850,237 | ||||
Intangible assets | 17,712,803 | 339,841 | |||
Total non-current | 79,023,988 | 23,133,752 | |||
TOTAL ASSET | 97,908,225 | 53,932,644 | |||
CURRENT | |||||
Loans and financing, current | 6,227,951 | 3,426,696 | |||
Lease Liabilities | 656,844 | ||||
Trade accounts payable | 2,376,459 | 632,565 | |||
Derivative financial instruments | 893,413 | 596,530 | |||
Payroll and charges | 400,435 | 234,192 | |||
Taxes payable | 307,639 | 243,835 | |||
Dividends payable | 5,720 | 5,434 | |||
Advances from suppliers | 59,982 | 75,159 | |||
Other liabilities | 456,338 | 367,313 | |||
Total current liabilities | 11,479,195 | 6,058,678 | |||
NON-CURRENT | |||||
Loans and financing, non current | 57,456,375 | 32,310,813 | |||
Derivative financial instruments | 2,024,500 | 1,040,170 | |||
Lease Liabilities | 3,327,226 | ||||
Employee benefit plans | 736,179 | 430,427 | |||
Provision for judicial liabilities | 3,512,477 | 351,270 | |||
Other liabilities | 121,723 | 37,342 | |||
Total non-current liabilities | 68,341,061 | 35,848,031 | |||
TOTAL LIABILITIES | 79,820,256 | 41,906,709 | |||
Equity | 18,087,969 | 12,025,935 | R$ 11616611 | R$ 10124989 | |
TOTAL LIABILITIES AND EQUITY | R$ 97908225 | R$ 53932644 | |||
Fibria | Net asset value | |||||
CURRENT | |||||
Cash and cash equivalents | R$ 29086 | ||||
Marketable securities | 2,734,027 | ||||
Derivative financial instruments | 256,675 | ||||
Trade accounts receivable | 3,572,059 | ||||
Inventories | 1,714,560 | ||||
Recoverable taxes | 768,439 | ||||
Other assets | 161,238 | ||||
Total current assets | 9,236,084 | ||||
NON-CURRENT | |||||
Marketable securities | 175,559 | ||||
Derivative financial instruments | 723,084 | ||||
Recoverable taxes | 546,234 | ||||
Deferred taxes | 1,364,363 | ||||
Advances to suppliers | 696,767 | ||||
Judicial deposits | 190,533 | ||||
Other assets | 100,877 | ||||
Biological assets | 9,481,900 | ||||
Investments | 14,633,114 | ||||
Property, plant and equipment | 2,301,427 | ||||
Right of use | 118,920 | ||||
Intangible assets | 34,687,880 | ||||
TOTAL ASSET | 43,923,964 | ||||
CURRENT | |||||
Loans and financing, current | 816,180 | ||||
Lease Liabilities | 420,241 | ||||
Trade accounts payable | 955,210 | ||||
Derivative financial instruments | 254,444 | ||||
Payroll and charges | 104,246 | ||||
Taxes payable | 36,057 | ||||
Related parties | 1,179,254 | ||||
Dividends payable | 4,015 | ||||
Other liabilities | 946,099 | ||||
Total current liabilities | 4,715,746 | ||||
NON-CURRENT | |||||
Loans and financing, non current | 8,139,390 | ||||
Derivative financial instruments | 678,833 | ||||
Lease Liabilities | 1,972,531 | ||||
Related parties | 16,305,560 | ||||
Employee benefit plans | 144,557 | ||||
Provision for judicial liabilities | 190,698 | ||||
Other liabilities | 175,934 | ||||
Total non-current liabilities | 27,607,503 | ||||
TOTAL LIABILITIES | 11,600,715 | ||||
TOTAL LIABILITIES AND EQUITY | R$ 43923964 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - 12 months ended Dec. 31, 2019 € in Thousands, R$ in Thousands, $ in Thousands | EUR (€) | BRL (R$) | USD ($) | BRL (R$) |
Biological assets | ||||
Period of forest formation in which historical cost approximates fair value | 2 years | 2 years | ||
Ensyn Corporation | ||||
New standards, revisions and interpretation not yet in force | ||||
Goodwill | $ 40,049 | R$ 154578 | ||
Consideration paid | 43,000 | 165,928 | ||
Carrying amount of the net assets of the investee | $ 2,941 | 11,350 | ||
Spinnova Oy | ||||
New standards, revisions and interpretation not yet in force | ||||
Bargain purchase | € 6,748 | R$ 32705 | ||
Consideration paid | 12,500 | 55,928 | ||
Carrying amount of the net assets of the investee | € 19,248 | R$ 87915 |
Financial Instruments and Ris_3
Financial Instruments and Risks Management - Rating (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments and Risks Management | ||
Financial Assets | R$ 14298290 | R$ 28780120 |
Financial Liabilities | 74,082,444 | 39,403,941 |
Amortized cost | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 71,164,531 | 37,767,241 |
Amortized cost | Loans, financing and debentures | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 63,684,326 | 35,737,509 |
Amortized cost | Lease liabilities | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 3,984,070 | |
Amortized cost | Liabilities for asset acquisition and subsidiaries | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 541,615 | 992,512 |
Amortized cost | Trade accounts payable | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 2,376,459 | 632,565 |
Amortized cost | Other liabilities | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 578,061 | 404,655 |
Fair value through profit or loss | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 2,917,913 | 1,636,700 |
Fair value through profit or loss | Derivative financial instruments | ||
Financial Instruments and Risks Management | ||
Financial Liabilities | 2,917,913 | 1,636,700 |
Amortized cost | ||
Financial Instruments and Risks Management | ||
Financial Assets | 6,848,937 | 7,187,621 |
Amortized cost | Cash and cash equivalents | ||
Financial Instruments and Risks Management | ||
Financial Assets | 3,249,127 | 4,387,453 |
Amortized cost | Trade accounts receivable | ||
Financial Instruments and Risks Management | ||
Financial Assets | 3,035,817 | 2,537,058 |
Amortized cost | Other assets | ||
Financial Instruments and Risks Management | ||
Financial Assets | 563,993 | 263,110 |
Fair value through other comprehensive income | ||
Financial Instruments and Risks Management | ||
Financial Assets | 20,048 | |
Fair value through other comprehensive income | Other investments | ||
Financial Instruments and Risks Management | ||
Financial Assets | 20,048 | |
Fair value through profit or loss | ||
Financial Instruments and Risks Management | ||
Financial Assets | 7,429,306 | 21,592,499 |
Fair value through profit or loss | Derivative financial instruments | ||
Financial Instruments and Risks Management | ||
Financial Assets | 1,098,972 | 493,934 |
Fair value through profit or loss | Marketable securities | ||
Financial Instruments and Risks Management | ||
Financial Assets | R$ 6330334 | R$ 21098565 |
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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments and Risks Management | ||
Financial Liabilities, Fair Value | R$ 66707543 | R$ 40048279 |
Foreign | Bonds | Fixed | ||
Financial Instruments and Risks Management | ||
Yield used to discount | U.S.$ | U.S.$ |
Financial Liabilities, Fair Value | R$ 30066087 | R$ 15035165 |
Foreign | Export credits ("Pre payment") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | LIBOR U.S.$ | LIBOR U.S.$ |
Financial Liabilities, Fair Value | R$ 17213963 | R$ 12819072 |
Foreign | Export credits ("Finnvera") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | LIBOR U.S.$ | |
Financial Liabilities, Fair Value | R$ 832907 | |
Foreign | Export credits (ACC - pre-payment) | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 575521 | R$ 1732088 |
Domestic | BNP - Forest Financing | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | |
Financial Liabilities, Fair Value | R$ 193646 | |
Domestic | BNDES | TJLP | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 1895959 | R$ 206601 |
Domestic | BNDES | TLP | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | |
Financial Liabilities, Fair Value | R$ 535812 | |
Domestic | BNDES | Fixed | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 113979 | R$ 348827 |
Domestic | BNDES | SELIC | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | |
Financial Liabilities, Fair Value | R$ 693969 | |
Domestic | BNDES | Currency basket | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 54420 | R$ 169243 |
Domestic | CRA ("Agribusiness Receivables Certificates") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 6039983 | R$ 2383775 |
Domestic | Debentures | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 5534691 | R$ 4721603 |
Domestic | FINAME | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | |
Financial Liabilities, Fair Value | R$ 14168 | |
Domestic | FINEP | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | |
Financial Liabilities, Fair Value | R$ 5138 | |
Domestic | Export credit note | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 1445383 | R$ 1501623 |
Domestic | NCR ("Rural Credit Notes") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | DI 1 |
Financial Liabilities, Fair Value | R$ 288122 | R$ 297375 |
Domestic | Export credits ("Pre payment") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | |
Financial Liabilities, Fair Value | R$ 1464798 | |
Domestic | FDCO ("West Center Development Fund") | ||
Financial Instruments and Risks Management | ||
Yield used to discount | DI 1 | |
Financial Liabilities, Fair Value | R$ 571904 |
Financial Instruments and Ris_5
Financial Instruments and Risks Management - Liquidity Risk (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | R$ 74082444 | R$ 39403941 |
Liquidity risk | ||
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | 74,082,444 | 39,403,941 |
Financial liabilities, Future Value | 108,690,925 | 58,306,342 |
Liquidity risk | Not later than one year | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 13,485,638 | 7,444,861 |
Liquidity risk | Later than one year and not later than two years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 7,756,823 | 4,966,440 |
Liquidity risk | Later than two years and not later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 31,848,867 | 19,155,180 |
Liquidity risk | Later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 55,599,597 | 26,739,859 |
Liquidity risk | Trade accounts payable | ||
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | 2,376,459 | 632,565 |
Financial liabilities, Future Value | 2,376,459 | 632,565 |
Liquidity risk | Trade accounts payable | Not later than one year | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 2,376,459 | 632,565 |
Liquidity risk | Loans, financing and debentures | ||
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | 63,684,326 | 35,737,509 |
Financial liabilities, Future Value | 89,708,210 | 54,020,082 |
Liquidity risk | Loans, financing and debentures | Not later than one year | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 8,501,278 | 5,158,441 |
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 | 5,692,149 | 4,091,669 |
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 | 29,088,292 | 18,372,597 |
Liquidity risk | Loans, financing and debentures | Later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 46,426,491 | 26,397,375 |
Liquidity risk | Lease liabilities | ||
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | 3,984,070 | |
Financial liabilities, Future Value | 7,109,966 | |
Liquidity risk | Lease liabilities | Not later than one year | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 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 | 1,426,011 | |
Liquidity risk | Lease liabilities | Later than two years and not later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 1,186,386 | |
Liquidity risk | Lease liabilities | Later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 3,938,044 | |
Liquidity risk | Liabilities for asset acquisition and subsidiaries | ||
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | 541,615 | 992,512 |
Financial liabilities, Future Value | 618,910 | 1,099,331 |
Liquidity risk | Liabilities for asset acquisition and subsidiaries | Not later than one year | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 103,132 | 495,862 |
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 | 101,149 | 100,715 |
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 | 315,989 | 316,730 |
Liquidity risk | Liabilities for asset acquisition and subsidiaries | Later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 98,640 | 186,024 |
Liquidity risk | Derivative financial instruments | ||
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | 2,917,913 | 1,636,700 |
Financial liabilities, Future Value | 8,299,319 | 2,149,710 |
Liquidity risk | Derivative financial instruments | Not later than one year | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 1,488,906 | 790,679 |
Liquidity risk | Derivative financial instruments | Later than one year and not later than two years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 415,791 | 736,715 |
Liquidity risk | Derivative financial instruments | Later than two years and not later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 1,258,200 | 465,853 |
Liquidity risk | Derivative financial instruments | Later than five years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 5,136,422 | 156,462 |
Liquidity risk | Other liabilities | ||
Financial Instruments and Risks Management | ||
Financial Liabilities, Book Value | 578,061 | 404,655 |
Financial liabilities, Future Value | 578,061 | 404,655 |
Liquidity risk | Other liabilities | Not later than one year | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | 456,338 | 367,314 |
Liquidity risk | Other liabilities | Later than one year and not later than two years | ||
Financial Instruments and Risks Management | ||
Financial liabilities, Future Value | R$ 121723 | R$ 37341 |
Financial Instruments and Ris_6
Financial Instruments and Risks Management - Credit Risk Internal Risk Rating (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments and Risks | |||
Expected credit losses | R$ 41996 | R$ 37179 | R$ 38740 |
Credit risk | |||
Financial Instruments and Risks | |||
Credit risk exposure, internal rating | 3,077,813 | 2,574,237 | |
Expected credit losses | 41,996 | 37,179 | |
Credit risk | Low Risk | Current | |||
Financial Instruments and Risks | |||
Credit risk exposure, internal rating | 2,775,364 | 2,447,184 | |
Credit risk | Average Risk | From 31 to 90 days | |||
Financial Instruments and Risks | |||
Credit risk exposure, internal rating | 168,836 | 66,587 | |
Credit risk | High Risk | More than 90 days | |||
Financial Instruments and Risks | |||
Credit risk exposure, internal rating | R$ 133613 | R$ 60466 |
Financial Instruments and Ris_7
Financial Instruments and Risks Management - Credit Risk Exposure (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments and Risks Management | ||
Financial Assets | R$ 14298290 | R$ 28780120 |
Credit risk | ||
Financial Instruments and Risks Management | ||
Financial Assets | 10,409,887 | 25,979,952 |
Credit risk | Cash and cash equivalents | ||
Financial Instruments and Risks Management | ||
Financial Assets | 3,249,127 | 4,387,453 |
Credit risk | Marketable securities | ||
Financial Instruments and Risks Management | ||
Financial Assets | 6,330,334 | 21,098,565 |
Credit risk | Derivative financial instruments | ||
Financial Instruments and Risks Management | ||
Financial Assets | R$ 830426 | R$ 493934 |
Financial Instruments and Ris_8
Financial Instruments and Risks Management - Credit risk External Risk Rating (Details) - Credit risk - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents and marketable securities | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | R$ 9579461 | R$ 25486016 |
Cash and cash equivalents and marketable securities | AAA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 190,360 | 19,736,151 |
Cash and cash equivalents and marketable securities | AA+ | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 5,257,518 | |
Cash and cash equivalents and marketable securities | AA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 68,207 | |
Cash and cash equivalents and marketable securities | AA- | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 56,388 | 422,899 |
Cash and cash equivalents and marketable securities | A+ | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 606,757 | |
Cash and cash equivalents and marketable securities | A | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 188,458 | 80 |
Cash and cash equivalents and marketable securities | A- | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 211,238 | 1,160 |
Cash and cash equivalents and marketable securities | brAAA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 7,153,079 | |
Cash and cash equivalents and marketable securities | brAA+ | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 745,177 | |
Cash and cash equivalents and marketable securities | brAA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 372,188 | |
Cash and cash equivalents and marketable securities | brAA- | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 23,050 | |
Cash and cash equivalents and marketable securities | brA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 17,847 | |
Cash and cash equivalents and marketable securities | Others | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 14,919 | 1 |
Derivative financial instruments | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 830,426 | 493,934 |
Derivative financial instruments | AAA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 141,296 | |
Derivative financial instruments | AA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 259,711 | |
Derivative financial instruments | A+ | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 27,363 | |
Derivative financial instruments | A | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 165,851 | 51,281 |
Derivative financial instruments | A- | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 222,761 | |
Derivative financial instruments | brAAA | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | 404,693 | |
Derivative financial instruments | brAA+ | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | R$ 9758 | |
Derivative financial instruments | Others | ||
Financial Instruments and Risks | ||
Credit risk exposure, external rating | R$ 41646 |
Financial Instruments and Ris_9
Financial Instruments and Risks Management - Exchange Rate Risk Management (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | R$ 14298290 | R$ 28780120 |
Financial liabilities | R$ 74082444 | (39,403,941) |
Exchange rate risk | ||
Financial Instruments and Risks Management | ||
Time horizon for sales in the futures market | 18 months | |
Exchange rate risk | USD | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | R$ 13994993 | 3,298,761 |
Financial liabilities | (58,149,396) | (28,255,019) |
Net liability exposure | (44,154,403) | (24,956,258) |
Exchange rate risk | USD | Trade accounts payable | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (1,085,207) | (72,680) |
Exchange rate risk | USD | Loans and financing | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (45,460,138) | (26,384,721) |
Exchange rate risk | USD | Liabilities for asset acquisition and subsidiaries | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (288,172) | (333,049) |
Exchange rate risk | USD | Derivative financial instruments | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial liabilities | (11,315,879) | (1,464,569) |
Exchange rate risk | USD | Cash and cash equivalents | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | 2,527,834 | 1,143,968 |
Exchange rate risk | USD | Trade accounts receivable | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | 2,027,018 | 1,661,108 |
Exchange rate risk | USD | Derivative financial instruments | ||
Net exposure of assets and liabilities in foreign currency | ||
Financial assets | R$ 9440141 | R$ 493685 |
Financial Instruments and Ri_10
Financial Instruments and Risks Management - Exchange Risk Sensitivity Analysis (Details) - Exchange rate risk | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Financial Instruments and Risks Management | |
Closing foreign exchange rate | 4.0307 |
Cash and cash equivalents | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | R$ 2527834000 |
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 | 631,959,000 |
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 | 1,263,917,000 |
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 | 2,027,018,000 |
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 | 506,755,000 |
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 | 1,013,509,000 |
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 | 1,085,207,000 |
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 | 271,302,000 |
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 | 542,604,000 |
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 | 45,460,138,000 |
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 | 11,365,035,000 |
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 | 22,730,069,000 |
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 | 288,172,000 |
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 | 72,043,000 |
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 | 144,086,000 |
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 | (2,198,750,000) |
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 | (4,087,518,000) |
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 | (8,175,033,000) |
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 | (4,087,510,000) |
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 | (8,175,024,000) |
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 | 66,981,000 |
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 | (2,710,465,000) |
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 | (6,048,324,000) |
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 | (3,011,787,000) |
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$ 6383188000 |
Financial Instruments and Ri_11
Financial Instruments and Risks Management - Interest Rate Risk Sensitivity Analysis (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Derivative Options | CDI | Probable | |
Financial Instruments and Risks Management | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | R$ 66981 |
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 | (72,473) |
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 | (142,327) |
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 | 75,530 |
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 | 154,446 |
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 | (2,198,750) |
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 | (42,752) |
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 | (83,345) |
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 | 44,995 |
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 | 92,339 |
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 | (2,198,750) |
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 | 163,314 |
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 | 326,151 |
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 | (163,811) |
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 | (328,121) |
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 | 630,075 |
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 | 6,931 |
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 | 13,862 |
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 | 6,330,334 |
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 | 69,634 |
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 | 139,267 |
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 | 11,482,992 |
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 | 581,039 |
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 | 252,626 |
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 | 9,720,880 |
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 | 622,671 |
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 | 270,727 |
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 | 16,229,715 |
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 | 356,183 |
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$ 154862 |
Financial Instruments and Ri_12
Financial Instruments and Risks Management - Price Risk Sensitivity Analysis (Details) - Commodity price risk - BRL (R$) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Embedded Derivative | Probable | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | R$ 268547000 | |
Embedded Derivative | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | 107,815,000 | |
Embedded Derivative | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | 220,514,000 | |
Oil derivative | Probable | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | (92,000) | |
Oil derivative | Possible (25%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | 478,000 | |
Oil derivative | Remote (50%) | ||
Financial Instruments and Risks Management | ||
Effect on fair value of assets attributable to an increase in measurement input. | 864,000 | |
Oil derivative | Bunker oil | ||
Financial Instruments and Risks Management | ||
Risk exposure | R$ 364 | R$ 5344000 |
Financial Instruments and Ri_13
Financial Instruments and Risks Management - Yield curves (Details) | Dec. 31, 2019 |
1M | |
Financial Instruments and Risks Management | |
Dollar coupon | 13.33% |
1M | Brazilian Reais | |
Financial Instruments and Risks Management | |
Interest rate curves | 4.41% |
1M | USD | |
Financial Instruments and Risks Management | |
Interest rate curves | 1.91% |
6M | |
Financial Instruments and Risks Management | |
Dollar coupon | 4.37% |
6M | Brazilian Reais | |
Financial Instruments and Risks Management | |
Interest rate curves | 4.33% |
6M | USD | |
Financial Instruments and Risks Management | |
Interest rate curves | 1.84% |
1A | |
Financial Instruments and Risks Management | |
Dollar coupon | 3.40% |
1A | Brazilian Reais | |
Financial Instruments and Risks Management | |
Interest rate curves | 4.56% |
1A | USD | |
Financial Instruments and Risks Management | |
Interest rate curves | 1.77% |
2A | |
Financial Instruments and Risks Management | |
Dollar coupon | 2.93% |
2A | Brazilian Reais | |
Financial Instruments and Risks Management | |
Interest rate curves | 5.28% |
2A | USD | |
Financial Instruments and Risks Management | |
Interest rate curves | 1.68% |
3A | |
Financial Instruments and Risks Management | |
Dollar coupon | 2.81% |
3A | Brazilian Reais | |
Financial Instruments and Risks Management | |
Interest rate curves | 5.79% |
3A | USD | |
Financial Instruments and Risks Management | |
Interest rate curves | 1.66% |
5A | |
Financial Instruments and Risks Management | |
Dollar coupon | 2.87% |
5A | Brazilian Reais | |
Financial Instruments and Risks Management | |
Interest rate curves | 6.43% |
5A | USD | |
Financial Instruments and Risks Management | |
Interest rate curves | 1.70% |
10A | |
Financial Instruments and Risks Management | |
Dollar coupon | 3.31% |
10A | Brazilian Reais | |
Financial Instruments and Risks Management | |
Interest rate curves | 7.01% |
10A | USD | |
Financial Instruments and Risks Management | |
Interest rate curves | 1.86% |
Financial Instruments and Ri_14
Financial Instruments and Risks Management - Derivatives outstanding by type of contract (Details) R$ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) |
Financial Instruments and Risks | ||||
Fair value | R$ 1818941 | R$ 1142766 | ||
Operational Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 67,078 | (117,778) | ||
Operational Hedge | NDF (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | $ 150,000 | |||
Fair value | 17,036 | |||
Operational Hedge | Zero-cost collar (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | $ 3,425,000 | 3,040,000 | ||
Fair value | 67,078 | (134,814) | ||
Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (2,154,474) | (1,023,848) | ||
Debt hedge | Interest hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | 2,750,000 | 2,757,143 | ||
Fair value | (444,910) | (170,707) | ||
Debt hedge | Interest hedge | Swap IPCA x CDI (notional in Reais) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | 843,845 | |||
Fair value | 233,255 | |||
Debt hedge | Interest hedge | Swap IPCA x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | 121,003 | |||
Fair value | 30,544 | |||
Debt hedge | Interest hedge | Swap CDI x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | 3,115,614 | 2,402,110 | ||
Fair value | (1,940,352) | (853,141) | ||
Debt hedge | Interest hedge | Pre-fixed Swap to U.S.$ (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | 350,000 | |||
Fair value | (33,011) | |||
Commodity hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 268,455 | (1,140) | ||
Commodity hedge | Swap US-CPI standing wood (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | 679,485 | |||
Fair value | 268,547 | |||
Commodity hedge | Swap Bunker (oil) | ||||
Financial Instruments and Risks | ||||
Notional value | $ | $ 365 | $ 5,344 | ||
Fair value | R$ 92 | R$ 1140 |
Financial Instruments and Ri_15
Financial Instruments and Risks Management - Derivatives outstanding by type of contract, classified (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments and Risks Management | ||
Current assets | R$ 260273 | R$ 352454 |
Non-current assets | 838,699 | 141,480 |
Current liabilities | (893,413) | (596,530) |
Non-current liabilities | (2,024,500) | (1,040,170) |
Total, net | R$ 1818941 | R$ 1142766 |
Financial Instruments and Ri_16
Financial Instruments and Risks Management - Derivative Fair value by maturity schedule (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 1818941 | R$ 1142766 |
Not later than one year | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (633,644) | (244,069) |
Later than one year and not later than two years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | 98,850 | (180,333) |
Later than two years and not later than three years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (154,734) | 87,851 |
Later than three years and not later than four years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | 185,209 | 83,692 |
Later than four years and not later than five years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (197,718) | 80,052 |
Later than five years and not later than six years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (606,827) | 82,963 |
Later than six years and not later than seven years [Member] | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (486,958) | |
later than six years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 510077 | |
Later than seven years | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 565964 |
Financial Instruments and Ri_17
Financial Instruments and Risks Management - Outstanding of assets and liabilities derivatives positions (Details) R$ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) |
Financial Instruments and Risks | ||||
Fair value | R$ 1818941 | R$ 1142766 | ||
Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (2,154,474) | (1,023,848) | ||
Operational Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 67,078 | (117,778) | ||
Operational Hedge | Zero-cost collar (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | $ 3,425,000 | $ 3,040,000 | ||
Fair value | 67,078 | (134,814) | ||
Operational Hedge | NDF (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 150,000 | |||
Fair value | 17,036 | |||
Commodity hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 268,455 | (1,140) | ||
Commodity hedge | Swap US-CPI standing wood (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 679,485 | |||
Fair value | 268,547 | |||
Commodity hedge | Swap Bunker (oil) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 365 | 5,344 | ||
Fair value | (92) | (1,140) | ||
Assets | Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 25,887,797 | 119,178 | ||
Assets | Debt hedge | Swap CDI x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | 11,498,565 | 8,722,620 | ||
Fair value | 11,673,117 | 119,178 | ||
Assets | Debt hedge | Pre-fixed Swap to U.S.$ (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 1,317,226 | |||
Fair value | 1,478,336 | |||
Assets | Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 2,750,000 | 2,757,143 | ||
Fair value | 11,063,970 | |||
Assets | Debt hedge | Swap IPCA x CDI (notional in Reais) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 933,842 | |||
Fair value | 1,093,067 | |||
Assets | Debt hedge | Swap IPCA x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 499,441 | |||
Fair value | 579,307 | |||
Liabilities | Swap IPCA x CDI (notional in Reais) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 843,845 | |||
Fair value | (859,812) | |||
Liabilities | Debt hedge | ||||
Financial Instruments and Risks | ||||
Fair value | (28,042,271) | (1,143,026) | ||
Liabilities | Debt hedge | Swap CDI x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 3,115,614 | 2,402,110 | ||
Fair value | (13,613,469) | (972,319) | ||
Liabilities | Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 350,000 | $ 2,757,143 | ||
Fair value | (1,511,347) | R$ 170707 | ||
Liabilities | Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 2,750,000 | |||
Fair value | (11,508,880) | |||
Liabilities | Debt hedge | Swap IPCA x Fixed (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | $ 121,003 | |||
Fair value | R$ 548763 |
Financial Instruments and Ri_18
Financial Instruments and Risks Management - Fair value settled amounts (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments and Risks | ||
Cash (paid) received | R$ 135449 | R$ 1331513 |
Operational Hedge | ||
Financial Instruments and Risks | ||
Cash (paid) received | (40,469) | (1,345,719) |
Operational Hedge | Zero-cost collar (R$ x US$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | (104,040) | (110,271) |
Operational Hedge | NDF (R$ x US$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | 63,571 | (1,235,448) |
Commodity hedge | ||
Financial Instruments and Risks | ||
Cash (paid) received | 3,804 | |
Commodity hedge | Swap Bunker (oil) | ||
Financial Instruments and Risks | ||
Cash (paid) received | 3,804 | |
Debt hedge | ||
Financial Instruments and Risks | ||
Cash (paid) received | (98,784) | 14,206 |
Debt hedge | Swap CDI x Fixed (U.S.$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | (68,362) | 19,145 |
Debt hedge | Swap IPCA x CDI (notional in Reais) | ||
Financial Instruments and Risks | ||
Cash (paid) received | 23,024 | |
Debt hedge | Pre-fixed Swap to U.S.$ (U.S.$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | (26,358) | |
Debt hedge | Swap LIBOR x Fixed (U.S.$) | ||
Financial Instruments and Risks | ||
Cash (paid) received | R$ 27088 | R$ 4939 |
Financial Instruments and Ri_19
Financial Instruments and Risks Management- Fair value hierarchy (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments and Risks | ||
Financial assets | R$ 14298290 | R$ 28780120 |
Financial liabilities | 74,082,444 | 39,403,941 |
Fair value | ||
Financial Instruments and Risks | ||
Financial assets | 18,020,853 | 26,528,404 |
Financial liabilities | 2,917,913 | 1,636,700 |
Fair value | Level 1 | ||
Financial Instruments and Risks | ||
Financial assets | 1,631,319 | 14,933,513 |
Fair value | Level 2 | ||
Financial Instruments and Risks | ||
Financial assets | 5,797,987 | 6,658,986 |
Financial liabilities | 2,917,913 | 1,636,700 |
Fair value | Level 3 | ||
Financial Instruments and Risks | ||
Financial assets | 10,591,547 | 4,935,905 |
Amortized cost | ||
Financial Instruments and Risks | ||
Financial assets | 6,848,937 | 7,187,621 |
Amortized cost | Fair value | ||
Financial Instruments and Risks | ||
Financial assets | 10,571,499 | 4,935,905 |
Amortized cost | Fair value | Biologic assets | ||
Financial Instruments and Risks | ||
Financial assets | 10,571,499 | 4,935,905 |
Amortized cost | Fair value | Level 3 | ||
Financial Instruments and Risks | ||
Financial assets | 10,571,499 | 4,935,905 |
Amortized cost | Fair value | Level 3 | Biologic assets | ||
Financial Instruments and Risks | ||
Financial assets | 10,571,499 | 4,935,905 |
Fair value through other comprehensive income | ||
Financial Instruments and Risks | ||
Financial assets | 20,048 | |
Fair value through other comprehensive income | Fair value | ||
Financial Instruments and Risks | ||
Financial assets | 20,048 | |
Fair value through other comprehensive income | Fair value | Other investments | ||
Financial Instruments and Risks | ||
Financial assets | 20,048 | |
Fair value through other comprehensive income | Fair value | Level 3 | ||
Financial Instruments and Risks | ||
Financial assets | 20,048 | |
Fair value through other comprehensive income | Fair value | Level 3 | Other investments | ||
Financial Instruments and Risks | ||
Financial assets | 20,048 | |
Fair value through profit or loss | ||
Financial Instruments and Risks | ||
Financial assets | 7,429,306 | 21,592,499 |
Fair value through profit or loss | Fair value | ||
Financial Instruments and Risks | ||
Financial assets | 7,429,306 | 21,592,499 |
Fair value through profit or loss | Fair value | Marketable securities | ||
Financial Instruments and Risks | ||
Financial assets | 6,330,334 | 21,098,565 |
Fair value through profit or loss | Fair value | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial assets | 1,098,972 | 493,934 |
Fair value through profit or loss | Fair value | Level 1 | ||
Financial Instruments and Risks | ||
Financial assets | 1,631,319 | 14,933,513 |
Fair value through profit or loss | Fair value | Level 1 | Marketable securities | ||
Financial Instruments and Risks | ||
Financial assets | 1,631,319 | 14,933,513 |
Fair value through profit or loss | Fair value | Level 2 | ||
Financial Instruments and Risks | ||
Financial assets | 5,797,987 | 6,658,986 |
Fair value through profit or loss | Fair value | Level 2 | Marketable securities | ||
Financial Instruments and Risks | ||
Financial assets | 4,699,015 | 6,165,052 |
Fair value through profit or loss | Fair value | Level 2 | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial assets | 1,098,972 | 493,934 |
Amortized cost | ||
Financial Instruments and Risks | ||
Financial liabilities | 71,164,531 | 37,767,241 |
Fair value through profit or loss | ||
Financial Instruments and Risks | ||
Financial liabilities | 2,917,913 | 1,636,700 |
Fair value through profit or loss | Fair value | ||
Financial Instruments and Risks | ||
Financial liabilities | 2,917,913 | 1,636,700 |
Fair value through profit or loss | Fair value | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial liabilities | 2,917,913 | 1,636,700 |
Fair value through profit or loss | Fair value | Level 2 | ||
Financial Instruments and Risks | ||
Financial liabilities | 2,917,913 | 1,636,700 |
Fair value through profit or loss | Fair value | Level 2 | Derivative financial instruments | ||
Financial Instruments and Risks | ||
Financial liabilities | R$ 2917913 | R$ 1636700 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and cash equivalents | ||||
Cash and banks | R$ 2464097 | R$ 1151766 | ||
Cash equivalents | ||||
Total cash and cash equivalents | R$ 3249127 | 4,387,453 | R$ 1076833 | R$ 1614697 |
Fixed | Cash and banks | ||||
Cash equivalents | ||||
Average yield | 1.83% | |||
Domestic | ||||
Cash equivalents | ||||
Fixed-term deposits | R$ 630075 | 3,215,252 | ||
Domestic | CDI | Fixed-term deposits | ||||
Cash equivalents | ||||
Percentage of basis used to calculate interest rate | 99.52% | |||
Foreign | ||||
Cash equivalents | ||||
Fixed-term deposits | R$ 154955 | R$ 20435 | ||
Foreign | Fixed | Fixed-term deposits | ||||
Cash equivalents | ||||
Average yield | 1.58% |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Investments | ||
Marketable securities | R$ 6330334 | R$ 21098565 |
Current | 6,150,631 | 21,098,565 |
Non Current | 179,703 | |
Investment funds | ||
Financial Investments | ||
Marketable securities | R$ 6683 | |
Percentage of basis used to calculate interest rate | 61.51% | |
Private Funds | ||
Financial Investments | ||
Marketable securities | R$ 1431303 | 14,933,513 |
Percentage of basis used to calculate interest rate | 98.73% | |
Public Titles Measured At Fair Value Through Profit or Loss | ||
Financial Investments | ||
Marketable securities | R$ 1631319 | 2,049,281 |
Private Securities (Compromised) | ||
Financial Investments | ||
Marketable securities | R$ 3081326 | R$ 4115771 |
Percentage of basis used to calculate interest rate | 98.73% | |
Private Securities (Compromised) - Escrow Account | ||
Financial Investments | ||
Marketable securities | R$ 179703 | |
Percentage of basis used to calculate interest rate | 101.02% |
TRADE ACCOUNTS RECEIVABLE - Sum
TRADE ACCOUNTS RECEIVABLE - Summary of balances (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 3035817 | R$ 2537058 |
Factoring of receivables | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 3,544,625 | 396,563 |
Gross | Domestic | Third parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 1,027,034 | 853,684 |
Gross | Domestic | Receivables Investment Fund ("FIDC") | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 22,299 | |
Gross | Domestic | Related parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 23,761 | 36,727 |
Gross | Foreign | Third parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 2,027,018 | 1,661,527 |
Expected credit losses | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 41996 | R$ 37179 |
TRADE ACCOUNTS RECEIVABLE - Tra
TRADE ACCOUNTS RECEIVABLE - Trade accounts receivable by maturity (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 3035817 | R$ 2537058 |
Neither past due nor impaired | Current | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 2,552,459 | 2,119,188 |
Past due but not impaired | Up to 30 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 180,909 | 291,050 |
Past due but not impaired | From 31 to 60 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 148,388 | 54,845 |
Past due but not impaired | From 61 to 90 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 20,448 | 10,982 |
Past due but not impaired | From 91 to 120 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 20,680 | 7,446 |
Past due but not impaired | From 121 to 180 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 17,899 | 6,285 |
Past due but not impaired | More than 180 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 95034 | R$ 47262 |
TRADE ACCOUNTS RECEIVABLE - Cha
TRADE ACCOUNTS RECEIVABLE - Changes in expected credit losses (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in allowance for doubtful accounts | ||
Beginning balance | R$ 37179 | R$ 38740 |
Business combination with Fibria | (5,947) | |
Addition | (18,650) | (11,578) |
Reversal | 6,364 | 5,128 |
Write-off | 13,383 | 8,993 |
Exchange variation | 33 | (982) |
Ending balance | R$ 41996 | R$ 37179 |
TRADE ACCOUNTS RECEIVABLE - Mai
TRADE ACCOUNTS RECEIVABLE - Main customers (Details) | Dec. 31, 2019customer |
Credit risk | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Number of customers representing greater than 10% of net sales of pulp | 1 |
INVENTORIES - Summary of balanc
INVENTORIES - Summary of balances (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories | ||
Work in process | R$ 75377 | R$ 52882 |
Raw materials | 1,047,433 | 626,150 |
Spare Parts and other | 488,410 | 226,354 |
Inventories | 4,685,595 | 1,853,104 |
Pulp | Domestic | ||
Inventories | ||
Finished goods | 575,335 | 167,317 |
Pulp | Foreign | ||
Inventories | ||
Finished goods | 2,229,206 | 485,226 |
Paper | Domestic | ||
Inventories | ||
Finished goods | 199,635 | 227,303 |
Paper | Foreign | ||
Inventories | ||
Finished goods | R$ 70199 | R$ 67872 |
INVENTORIES - Changes in provis
INVENTORIES - Changes in provision for losses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in provision for losses | ||
Balance at the beginning of the year | R$ 33195 | R$ 51911 |
Business combination with Fibria | (11,117) | |
Addition | (111,077) | (10,605) |
Reversal | 9,734 | 5,873 |
Write-off | 38,942 | 23,448 |
Balance at the end of the year | (106,713) | (33,195) |
Finished goods, estimated losses | 42,470 | |
Raw materials, estimated losses | 39,382 | |
Spare parts, write-off of inventory | 5,786 | |
Raw materials, write-off of inventory | 26,083 | |
Inventory, additional write-off recognized in the income statement | 5,190 | 29,828 |
Inventories pledged as security for liabilities | R$ 0 | R$ 0 |
RECOVERABLE TAXES (Details)
RECOVERABLE TAXES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
RECOVERABLE TAXES | ||
IRPJ/CSLL - prepayments and withheld taxes | R$ 679699 | R$ 103939 |
PIS and COFINS - on acquisition of property, plant and equipment | 61,376 | 55,518 |
PIS and COFINS - operations | 589,142 | 12,426 |
PIS/COFINS - exclusion ICMS | 128,115 | |
ICMS - on acquisition of property, plant and equipment | 115,560 | 78,154 |
ICMS - operations | 1,519,017 | 215,361 |
Reintegra Program | 118,944 | 48,879 |
Other taxes and contributions | 18,799 | 24,845 |
Provision for loss of ICMS credits | (1,304,329) | (10,792) |
Provision for loss of PIS/COFINS credits | (21,132) | 0 |
Fair value adjustment on business combination with Fibria | (199,076) | |
Recoverable taxes | 1,706,115 | 528,330 |
Current assets | 997,201 | 296,832 |
Non-current assets | R$ 708914 | R$ 231498 |
RECOVERABLE TAXES - Rollforward
RECOVERABLE TAXES - Rollforward of provision for loss (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
ICMS | |
Beginning balance | R$ 10792 |
Business combination with Fibria | (1,211,109) |
Addition | (82,428) |
Ending balance | (1,304,329) |
PIS and COFINS | |
Beginning balance | 0 |
Addition | (21,132) |
Ending balance | (21,132) |
Total | |
Beginning balance | (10,792) |
Business combination with Fibria | (1,211,109) |
Addition | (103,560) |
Ending balance | R$ 1325461 |
ADVANCE TO SUPPLIERS (Details)
ADVANCE TO SUPPLIERS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Advances to suppliers | ||
Advances to suppliers | R$ 1257630 | R$ 317026 |
Current | 170,481 | 98,533 |
Non current | 1,087,149 | 218,493 |
Forestry Development Program | ||
Advances to suppliers | ||
Advances to suppliers | 1,087,149 | 231,063 |
Advance to suppliers | ||
Advances to suppliers | ||
Advances to suppliers | R$ 170481 | R$ 85963 |
RELATED PARTIES - Balances reco
RELATED PARTIES - Balances recognized in assets and liabilities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
RELATED PARTIES | ||
Balances receivable (payable) | R$ 21283 | R$ 34923 |
Trade accounts receivable | ||
RELATED PARTIES | ||
Balances receivable (payable) | 23,761 | 36,727 |
Trade accounts payable | ||
RELATED PARTIES | ||
Balances receivable (payable) | (2,478) | (1,804) |
Controlling Shareholders | ||
RELATED PARTIES | ||
Balances receivable (payable) | 3 | (125) |
Suzano Holding S.A. | ||
RELATED PARTIES | ||
Balances receivable (payable) | 3 | (125) |
Related Party Transactions With Suzano Group And Related Parties [Member] | ||
RELATED PARTIES | ||
Balances receivable (payable) | 21,280 | 35,048 |
Bexma | Reimbursement for expenses | ||
RELATED PARTIES | ||
Balances receivable (payable) | 1 | 1 |
Bizma | Reimbursement for expenses | ||
RELATED PARTIES | ||
Balances receivable (payable) | 1 | 2 |
Ecofuturo | Social services | ||
RELATED PARTIES | ||
Balances receivable (payable) | (9) | (33) |
Ibema | Sale of pulp | ||
RELATED PARTIES | ||
Balances receivable (payable) | 23,755 | 36,721 |
Ibema | Purchase of products | ||
RELATED PARTIES | ||
Balances receivable (payable) | (2,467) | R$ 1643 |
Management | Reimbursement for expenses | ||
RELATED PARTIES | ||
Balances receivable (payable) | R$ 1 |
RELATED PARTIES - Amounts trans
RELATED PARTIES - Amounts transacted in the year (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
RELATED PARTIES | ||
Expenses (income) | R$ 82788 | R$ 90004 |
Controlling Shareholders | ||
RELATED PARTIES | ||
Expenses (income) | (5,945) | (12,723) |
Suzano Holding S.A. | ||
RELATED PARTIES | ||
Expenses (income) | (5,945) | (12,723) |
Related Party Transactions With Suzano Group And Related Parties [Member] | ||
RELATED PARTIES | ||
Expenses (income) | 88,733 | 102,727 |
Bexma | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | 11 | 10 |
Bizma | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | 10 | |
Ecofuturo | Social services | ||
RELATED PARTIES | ||
Expenses (income) | (5,272) | (4,184) |
Ibema | Sale of pulp | ||
RELATED PARTIES | ||
Expenses (income) | 111,325 | 107,252 |
Ibema | Purchase of products | ||
RELATED PARTIES | ||
Expenses (income) | (7,744) | 16 |
IPLF | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | 4 | 4 |
Lazam-MDS | Sale of paper | ||
RELATED PARTIES | ||
Expenses (income) | 7 | (31) |
Mabex | Aircraft services (freight) | ||
RELATED PARTIES | ||
Expenses (income) | (100) | (390) |
Management | Reimbursement for expenses | ||
RELATED PARTIES | ||
Expenses (income) | (9,178) | 541 |
Nemonorte | Real estate advisory | ||
RELATED PARTIES | ||
Expenses (income) | R$ 330 | R$ 491 |
RELATED PARTIES - Management co
RELATED PARTIES - Management compensation (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term benefits | |||
Salary or compensation | R$ 39459 | R$ 48663 | R$ 24774 |
Direct and indirect benefits | 1,747 | 2,828 | 2,959 |
Bonus | 8,007 | 16,752 | 26,819 |
Total short term benefits | 49,213 | 68,243 | 54,552 |
Long-term benefits | |||
Share-based compensation | 45,739 | 62,150 | 33,554 |
Total long term benefits | 45,739 | 62,150 | 33,554 |
Total management compensation | R$ 94952 | R$ 130393 | R$ 88106 |
INCOME AND SOCIAL CONTRIBUTIO_3
INCOME AND SOCIAL CONTRIBUTION TAXES - Deferred income and social contribution taxes (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income and social contribution taxes | ||
Non-current assets | R$ 5576253 | R$ 1773959 |
Non-current liabilities | 4,021,088 | 2,803,094 |
Total non-current assets, net | 2,134,040 | 8,998 |
Total non-current liabilities, net | 578,875 | 1,038,133 |
Tax loss carryforwards | ||
Deferred income and social contribution taxes | ||
Non-current assets | 600,249 | 310,293 |
Negative tax base | ||
Deferred income and social contribution taxes | ||
Non-current assets | 146,346 | 6,627 |
Provision for judicial liabilities | ||
Deferred income and social contribution taxes | ||
Non-current assets | 265,571 | 101,667 |
Operating provisions and other losses | ||
Deferred income and social contribution taxes | ||
Non-current assets | 933,818 | 286,616 |
Exchange rate variation - Taxation on a cash basis | ||
Deferred income and social contribution taxes | ||
Non-current assets | 2,001,942 | 534,093 |
Losses on derivatives | ||
Deferred income and social contribution taxes | ||
Non-current assets | 618,427 | 291,254 |
Fair value adjustment on business combination - Amortization | ||
Deferred income and social contribution taxes | ||
Non-current assets | 713,656 | 5,327 |
Unrealized profit on inventories | ||
Deferred income and social contribution taxes | ||
Non-current assets | 293,322 | 227,830 |
Lease liabilities | ||
Deferred income and social contribution taxes | ||
Non-current assets | 2,922 | 6,196 |
Goodwill - Tax benefit on unamortized goodwill | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 216,857 | 13,161 |
Property, plant and equipment - deemed cost adjustment | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 1,506,220 | 1,552,579 |
Accelerated tax depreciation | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 1,113,200 | 1,196,182 |
Borrowing cost | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 104,549 | |
Biologic assets | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 53,502 | |
Tax provision on results of subsidiaries abroad | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 463,850 | |
Fair value adjustment on business combination with Fibria - Deferred taxes, net | ||
Deferred income and social contribution taxes | ||
Non-current liabilities | 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 | |
Other temporary differences | ||
Deferred income and social contribution taxes | ||
Non-current assets | 4,056 | |
Non-current liabilities | R$ 17004 | R$ 41172 |
INCOME AND SOCIAL CONTRIBUTIO_4
INCOME AND SOCIAL CONTRIBUTION TAXES - Carryforwards (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INCOME AND SOCIAL CONTRIBUTION TAXES | ||
Tax loss carryforward | R$ 2400998 | R$ 1241172 |
Social contribution tax loss carryforward | R$ 1626064 | R$ 73633 |
INCOME AND SOCIAL CONTRIBUTIO_5
INCOME AND SOCIAL CONTRIBUTION TAXES - Rollforward (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Rollforward of net balance of deferred income tax | ||
Beginning balance | R$ 1029135 | R$ 1787354 |
Business combination with Fibria | 1,034,842 | |
Tax loss | 270,559 | (264,955) |
Tax loss carryforwards | 139,719 | (23,203) |
(Reversal)/provision for judicial liabilities | 31,262 | (1,964) |
Operating provisions and other losses | (21,757) | 82,785 |
Exchange rate variation - Taxation on a cash basis | 552,421 | 451,300 |
Derivative losses | 319,860 | 390,198 |
Fair value adjustment on business combination - Amortization | 699,527 | 5,327 |
Unrealized profit on inventories | 65,492 | 124,454 |
Lease | (3,274) | 69 |
Adjustment to present value | 174 | |
Tax benefit on unamortized goodwill | (203,696) | (3,098) |
Property, plant and equipment - Deemed cost | 46,359 | 51,408 |
Accelerated depreciation | 82,982 | (13,067) |
Borrowing cost | 44,727 | (23,145) |
Fair value of biological assets | (60,778) | (22,307) |
Tax provision on results of subsidiaries abroad | (351,485) | |
Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) | (43,559) | |
Other temporary differences | (18,901) | 4,243 |
Ending balance | R$ 1555165 | R$ 1029135 |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the effects of income tax and social contribution on profit or loss | |||
Net income (loss) before taxes | R$ 4097203 | R$ 165298 | |
Income tax and social contribution benefit (expense) at statutory nominal rate of 34% | R$ 1393049 | (56,201) | |
Tax rate | 34.00% | 34.00% | |
Tax effect on permanent differences: | |||
Taxation (difference) on profit of subsidiaries abroad | R$ 24933 | (97,439) | |
Tax incentive - Reduction SUDENE | 261,910 | ||
Equity method | 10,878 | 2,576 | |
Thin capitalisation | (95,003) | (2,553) | |
Credit related to Reintegrate Program | 4,515 | 37,627 | |
Tax Incentives applied to Income tax | 18,919 | 20,505 | |
Unrealized profit on operations with subsidiaries | 16,786 | ||
Director bonus | (43,913) | ||
Other | 18,949 | (28,695) | |
Income and social contribution benefits (expenses) on the year | 1,282,461 | 154,516 | R$ 438618 |
Income tax | |||
Current | (220,311) | (300,438) | |
Deferred | 1,093,200 | 604,190 | |
Total income Tax | 872,889 | 303,752 | |
Social Contribution | |||
Current | (25,799) | (286,130) | |
Deferred | 435,371 | 136,894 | |
Total Social Contribution | 409,572 | (149,236) | |
Income and social contribution benefits (expenses) on the year | R$ 1282461 | R$ 154516 | R$ 438618 |
Effective rate of income and social contribution tax expenses | 31.00% | (93.50%) |
BIOLOGICAL ASSETS - Changes (De
BIOLOGICAL ASSETS - Changes (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in balances of biological assets | |||
Balance, beginning of the year | R$ 4935905 | R$ 4548897 | |
Business combination with Fibria | 4,579,526 | ||
Additions | 2,849,039 | 1,285,490 | |
Depletion for the year | (1,905,118) | (709,547) | |
Gain (Loss) on adjustment to fair value | 185,399 | (129,187) | R$ 192504 |
Disposal of forests | (23,764) | (47,124) | |
Other write-offs | (49,488) | (12,624) | |
Balance, end of the year | R$ 10571499 | R$ 4935905 | R$ 4548897 |
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) | 12 Months Ended |
Dec. 31, 2019haR$ / m³m / ha | |
Assumptions used | |
Planted useful area (hectare) | 988,720 |
Average annual growth (IMA) - m/hectare | m / ha | 38.34 |
Average gross sale price of eucalyptus - R$/m3 | R$ / m³ | 66.81 |
Discount rate - % | 8.40% |
Mature assets | |
Assumptions used | |
Planted useful area (hectare) | 86,352 |
Immature assets | |
Assumptions used | |
Planted useful area (hectare) | 902,368 |
BIOLOGICAL ASSETS - Fair value
BIOLOGICAL ASSETS - Fair value adjustment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value adjustment of biological assets recognized under other operating income (expense), net | |||
Physical changes | R$ 347409 | ||
Price | 532,808 | ||
Fair value adjustment of biological assets recognized under other operating income (expense), net | 185,399 | R$ 129187 | R$ 192504 |
Biological assets pledged | R$ 0 |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INVESTMENTS | ||
Investments in associates and joint ventures | R$ 140934 | R$ 14338 |
Goodwill | 161,464 | |
Other investments evaluated at fair value through other comprehensive income | 20,048 | |
Total investments accounted for using equity method | R$ 322446 | R$ 14338 |
INVESTMENTS - Investments in as
INVESTMENTS - Investments in associates and joint ventures (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments | ||||
Equity | R$ 18087969 | R$ 12025935 | R$ 11616611 | R$ 10124989 |
Company Participation in equity | 140,934 | 14,338 | ||
Company Participation in the income of the year | 31,969 | 8,676 | ||
Company Participation in the income of the year | 31,993 | 7,576 | R$ 5872 | |
Associates | ||||
Investments | ||||
Company Participation in equity | 108,406 | |||
Company Participation in the income of the year | 11,528 | |||
Ensyn Corporation | ||||
Investments | ||||
Equity | 252 | |||
Income of the year | R$ 268 | |||
Participation equity in associate (as a percent) | 25.30% | |||
Company Participation in equity | R$ 21437 | |||
Company Participation in the income of the year | R$ 12860 | |||
Spinnova | ||||
Investments | ||||
Participation equity in associate (as a percent) | 24.06% | |||
Company Participation in equity | R$ 86969 | |||
Company Participation in the income of the year | (1,332) | |||
Joint ventures | ||||
Investments | ||||
Company Participation in equity | 32,528 | 14,338 | ||
Company Participation in the income of the year | R$ 20441 | 8,676 | ||
Ibema | ||||
Investments | ||||
Participation equity in joint ventures (as a percent) | 49.90% | |||
Company Participation in equity | R$ 28487 | 14,338 | ||
Company Participation in the income of the year | R$ 20307 | R$ 8676 | ||
F&E Technologies LLC | ||||
Investments | ||||
Participation equity in joint ventures (as a percent) | 50.00% | |||
Company Participation in equity | R$ 4041 | |||
Company Participation in the income of the year | R$ 134 |
INVESTMENTS - Business Combinat
INVESTMENTS - Business Combination (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Jan. 03, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CURRENT | |||||
Cash and cash equivalents | R$ 3249127 | R$ 4387453 | R$ 1076833 | R$ 1614697 | |
Marketable securities | 6,150,631 | 21,098,565 | |||
Derivative financial instruments | 260,273 | 352,454 | |||
Trade accounts receivable | 3,035,817 | 2,537,058 | |||
Inventories | 4,685,595 | 1,853,104 | |||
Recoverable taxes | 997,201 | 296,832 | |||
Other assets | 335,112 | 169,175 | |||
Total current assets | 18,884,237 | 30,798,892 | |||
NON-CURRENT | |||||
Marketable securities | 179,703 | ||||
Derivative financial instruments | 838,699 | 141,480 | |||
Recoverable taxes | 708,914 | 231,498 | |||
Advances to suppliers | 1,087,149 | 218,493 | |||
Judicial deposits | 268,672 | 129,005 | |||
Deferred taxes | 2,134,040 | 8,998 | |||
Other assets | 228,881 | 93,935 | |||
Investments | 322,446 | 14,338 | |||
Biological assets | 10,571,499 | 4,935,905 | 4,548,897 | ||
Property, plant and equipment | 41,120,945 | 17,020,259 | |||
Right of use | 3,850,237 | ||||
Goodwill | 161,464 | ||||
Total non-current | 79,023,988 | 23,133,752 | |||
TOTAL ASSET | 97,908,225 | 53,932,644 | |||
CURRENT | |||||
Loans and financing, current | 6,227,951 | 3,426,696 | |||
Derivative financial instruments | 893,413 | 596,530 | |||
Lease Liabilities | 656,844 | ||||
Trade accounts payable | 2,376,459 | 632,565 | |||
Payroll and charges | 400,435 | 234,192 | |||
Taxes payable | 307,639 | 243,835 | |||
Advances from suppliers | 59,982 | 75,159 | |||
Dividends payable | 5,720 | 5,434 | |||
Other liabilities | 456,338 | 367,313 | |||
Total current liabilities | 11,479,195 | 6,058,678 | |||
NON-CURRENT | |||||
Loans and financing, non current | 57,456,375 | 32,310,813 | |||
Lease Liabilities | 3,327,226 | ||||
Derivative financial instruments | 2,024,500 | 1,040,170 | |||
Provision for contingencies, net | 3,512,477 | 351,270 | |||
Deferred taxes | 578,875 | 1,038,133 | |||
Other liabilities | 121,723 | 37,342 | |||
Total non-current liabilities | 68,341,061 | 35,848,031 | |||
TOTAL LIABILITIES | 79,820,256 | 41,906,709 | |||
Equity | |||||
Shareholders' equity | 9,235,546 | 6,241,753 | |||
Non-controlling interest | 115,339 | 13,928 | |||
Total equity | 18,087,969 | 12,025,935 | R$ 11616611 | R$ 10124989 | |
TOTAL LIABILITIES AND EQUITY | 97,908,225 | R$ 53932644 | |||
Fibria | |||||
Business Combination | |||||
Legal, auditing, and other consulting services fees | 100,387 | ||||
Adjustments to fair value of acquired assets and liabilities | |||||
Increase (decrease) in goodwill | 0 | ||||
Remeasurement adjustment to right of use leases and lease liabilities | 72,000 | ||||
Reclassification of financing leasing liability to lease liabilities previously classified as other liabilities | 142 | ||||
Reclassification of financing leasing assets to lease rights previously classified as PP&E | R$ 83000 | ||||
Fair value | Fibria | |||||
CURRENT | |||||
Cash and cash equivalents | R$ 1795 | ||||
Marketable securities | 4,316 | ||||
Derivative financial instruments | 211 | ||||
Trade accounts receivable | 1,302 | ||||
Inventories | 6,187 | ||||
Recoverable taxes | 261 | ||||
Other assets | 213 | ||||
Total current assets | 14,285 | ||||
NON-CURRENT | |||||
Marketable securities | 173 | ||||
Derivative financial instruments | 455 | ||||
Recoverable taxes | 988 | ||||
Advances to suppliers | 604 | ||||
Judicial deposits | 210 | ||||
Deferred taxes | 1,567 | ||||
Other assets | 227 | ||||
Total non-current financial assets | 4,224 | ||||
Investments | 200 | ||||
Biological assets | 4,580 | ||||
Property, plant and equipment | 24,961 | ||||
Right of use | 2,916 | ||||
Goodwill | 7,897 | ||||
Total noncurrent other than financial assets | 51,023 | ||||
Total non-current | 55,247 | ||||
TOTAL ASSET | 69,532 | ||||
CURRENT | |||||
Loans and financing, current | 3,136 | ||||
Derivative financial instruments | 276 | ||||
Lease Liabilities | 376 | ||||
Trade accounts payable | 3,427 | ||||
Payroll and charges | 402 | ||||
Taxes payable | 129 | ||||
Dividends payable | 6 | ||||
Other liabilities | 126 | ||||
Total current liabilities | 7,878 | ||||
NON-CURRENT | |||||
Loans and financing, non current | 17,591 | ||||
Lease Liabilities | 2,599 | ||||
Derivative financial instruments | 126 | ||||
Provision for contingencies, net | 3,182 | ||||
Deferred taxes | 558 | ||||
Other liabilities | 251 | ||||
Total non-current liabilities | 24,307 | ||||
TOTAL LIABILITIES | 32,185 | ||||
Equity | |||||
Shareholders' equity | 37,236 | ||||
Other intangible assets | Fair value | Fibria | |||||
NON-CURRENT | |||||
Identifiable intangible assets recognised as of acquisition date | 309 | ||||
Customer portfolio | Fair value | Fibria | |||||
NON-CURRENT | |||||
Identifiable intangible assets recognised as of acquisition date | 9,031 | ||||
Software | Fair value | Fibria | |||||
NON-CURRENT | |||||
Identifiable intangible assets recognised as of acquisition date | 21 | ||||
Cultivars | Fair value | Fibria | |||||
NON-CURRENT | |||||
Identifiable intangible assets recognised as of acquisition date | 143 | ||||
Supplier agreements | Fair value | Fibria | |||||
NON-CURRENT | |||||
Identifiable intangible assets recognised as of acquisition date | 172 | ||||
Port concession | Fair value | Fibria | |||||
NON-CURRENT | |||||
Identifiable intangible assets recognised as of acquisition date | 749 | ||||
Fair value adjustment of lease agreements | Fair value | Fibria | |||||
NON-CURRENT | |||||
Identifiable intangible assets recognised as of acquisition date | R$ 44 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | ||
Balance, beginning of year | R$ 17020259 | |
Balance, end of year | 41,120,945 | R$ 17020259 |
Property, plant and equipment pledged as collateral | 24,985,741 | 11,505,386 |
Capitalized interest amount | R$ 4213 | R$ 1772 |
Average monthly rate of interest capitalization | 9.50% | 6.55% |
Gross | ||
Property, Plant and Equipment | ||
Balance, beginning of year | R$ 25402513 | R$ 23782727 |
Additions | 2,001,674 | 1,493,345 |
Business combination | 27,206,328 | |
Write-offs | (337,759) | (111,640) |
Interest capitalization | 1,772 | |
Transfer and other | (212,630) | (1,262) |
Balance, end of year | 63,512,967 | 25,402,513 |
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 | 49,814 |
Business combination | 77,431 | |
Gross | PCH Mucuri | ||
Property, Plant and Equipment | ||
Business combination | 110,326 | |
Gross | Ibema | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | 5,448 | |
Accumulated Depreciation and Amortization | ||
Property, Plant and Equipment | ||
Balance, beginning of year | (8,382,254) | (7,571,498) |
Additions | (2,470,251) | |
Write-offs | 156,562 | 62,164 |
Depreciation | (868,742) | |
Transfer and other | 548,038 | |
Balance, end of year | (22,392,022) | (8,382,254) |
Accumulated Depreciation and Amortization | Fibria | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (624,327) | |
Business combination | (11,606,879) | |
Accumulated Depreciation and Amortization | Facepa | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (12,318) | (4,178) |
Accumulated Depreciation and Amortization | Ibema | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (593) | |
Lands | ||
Property, Plant and Equipment | ||
Balance, beginning of year | 5,104,717 | |
Balance, end of year | 10,321,574 | 5,104,717 |
Lands | Gross | ||
Property, Plant and Equipment | ||
Balance, beginning of year | 5,104,717 | 4,348,593 |
Additions | 337,932 | 705 |
Business combination | 2,151,338 | |
Write-offs | (92,705) | (34,523) |
Transfer and other | 182,621 | 750,824 |
Balance, end of year | 10,321,574 | 5,104,717 |
Lands | Gross | Fibria | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | R$ 2637671 | |
Lands | Gross | Facepa | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | 27,381 | |
Business combination | 7,446 | |
Lands | Gross | PCH Mucuri | ||
Property, Plant and Equipment | ||
Business combination | 4,291 | |
Buildings | ||
Property, Plant and Equipment | ||
Annual average depreciation rate | 3.00% | |
Property, Plant and Equipment | ||
Balance, beginning of year | R$ 2151904 | |
Balance, end of year | 5,787,873 | 2,151,904 |
Buildings | Gross | ||
Property, Plant and Equipment | ||
Balance, beginning of year | 3,058,520 | 2,815,673 |
Additions | 1,943 | 2,319 |
Business combination | 3,918,552 | |
Write-offs | (36,276) | (8,654) |
Transfer and other | 323,029 | 131,515 |
Balance, end of year | 8,767,789 | 3,058,520 |
Buildings | Gross | Fibria | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | 1,502,021 | |
Buildings | Gross | Facepa | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (3,014) | |
Business combination | 18,505 | |
Buildings | Gross | PCH Mucuri | ||
Property, Plant and Equipment | ||
Business combination | 102,176 | |
Buildings | Accumulated Depreciation and Amortization | ||
Property, Plant and Equipment | ||
Balance, beginning of year | (906,616) | (829,821) |
Additions | (255,888) | |
Write-offs | 26,886 | 1,462 |
Depreciation | (78,264) | |
Transfer and other | 29,906 | 7 |
Balance, end of year | (2,979,916) | (906,616) |
Buildings | Accumulated Depreciation and Amortization | Fibria | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (63,495) | |
Business combination | (1,804,967) | |
Buildings | Accumulated Depreciation and Amortization | Facepa | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | R$ 5742 | |
Machinery and equipment and facilities | ||
Property, Plant and Equipment | ||
Annual average depreciation rate | 5.00% | |
Property, Plant and Equipment | ||
Balance, beginning of year | R$ 9192888 | |
Balance, end of year | 23,670,191 | 9,192,888 |
Machinery and equipment and facilities | Gross | ||
Property, Plant and Equipment | ||
Balance, beginning of year | 16,441,031 | 15,846,331 |
Additions | 136,855 | 143,058 |
Business combination | 20,255,811 | |
Write-offs | (172,458) | (67,280) |
Transfer and other | 740,879 | 441,420 |
Balance, end of year | 42,520,577 | 16,441,031 |
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 | 27,506 |
Business combination | 46,165 | |
Machinery and equipment and facilities | Gross | PCH Mucuri | ||
Property, Plant and Equipment | ||
Business combination | 3,831 | |
Machinery and equipment and facilities | Gross | Ibema | ||
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 | (7,248,143) | (6,545,959) |
Additions | (2,123,193) | |
Write-offs | 115,732 | 60,506 |
Depreciation | (760,634) | |
Transfer and other | 508,585 | 1,391 |
Balance, end of year | (18,850,386) | (7,248,143) |
Machinery and equipment and facilities | Accumulated Depreciation and Amortization | Fibria | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (543,468) | |
Business combination | (9,552,825) | |
Machinery and equipment and facilities | Accumulated Depreciation and Amortization | Facepa | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (6,481) | (3,447) |
Machinery and equipment and facilities | Accumulated Depreciation and Amortization | Ibema | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (593) | |
Work in progress | ||
Property, Plant and Equipment | ||
Balance, beginning of year | 466,156 | |
Balance, end of year | 969,701 | 466,156 |
Work in progress | Gross | ||
Property, Plant and Equipment | ||
Balance, beginning of year | 466,156 | 483,735 |
Additions | 1,477,420 | 1,321,350 |
Business combination | 425,868 | |
Write-offs | (1,462) | |
Interest capitalization | 1,772 | |
Transfer and other | (1,397,398) | (1,339,218) |
Balance, end of year | 969,701 | 466,156 |
Work in progress | Gross | Facepa | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (883) | (4,880) |
Business combination | 3,395 | |
Work in progress | Gross | PCH Mucuri | ||
Property, Plant and Equipment | ||
Business combination | 2 | |
Other | ||
Property, Plant and Equipment | ||
Balance, beginning of year | 104,594 | |
Balance, end of year | R$ 371606 | 104,594 |
Other | Minimum | ||
Property, Plant and Equipment | ||
Annual average depreciation rate | 10.00% | |
Other | Maximum | ||
Property, Plant and Equipment | ||
Annual average depreciation rate | 20.00% | |
Other | Gross | ||
Property, Plant and Equipment | ||
Balance, beginning of year | R$ 332089 | 288,395 |
Additions | 47,524 | 25,913 |
Business combination | 454,759 | |
Write-offs | (34,858) | (1,183) |
Transfer and other | (61,761) | 14,197 |
Balance, end of year | 933,326 | 332,089 |
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) | 2,821 |
Business combination | 1,920 | |
Other | Gross | PCH Mucuri | ||
Property, Plant and Equipment | ||
Business combination | 26 | |
Other | Accumulated Depreciation and Amortization | ||
Property, Plant and Equipment | ||
Balance, beginning of year | (227,495) | (195,718) |
Additions | (91,170) | |
Write-offs | 13,944 | 196 |
Depreciation | (29,844) | |
Transfer and other | 9,547 | (1,398) |
Balance, end of year | (561,720) | (227,495) |
Other | Accumulated Depreciation and Amortization | Fibria | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | (17,364) | |
Business combination | (249,087) | |
Other | Accumulated Depreciation and Amortization | Facepa | ||
Property, Plant and Equipment | ||
Fair value adjustment from business combination | R$ 95 | R$ 731 |
INTANGIBLE - Goodwill and intan
INTANGIBLE - Goodwill and intangible assets with indefinite useful life (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | R$ 8063014 | R$ 159530 |
Vale Florestar S.A. | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 45,435 | 45,435 |
Paineiras Logistica | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 10 | |
PCH Mucuri | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 307 | |
Facepa | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 119,332 | 112,582 |
Fibria | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 7,897,051 | |
Other | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill and intangible assets with indefinite useful life | 1,196 | 1,196 |
Other | Servitude and Electricity | ||
Goodwill and intangible assets with indefinite useful life | ||
Intangible assets with indefinite useful life | 1,196 | R$ 1196 |
PCH Mucuri and Paineiras Logstica | ||
Goodwill and intangible assets with indefinite useful life | ||
Goodwill impairment | R$ 317 |
INTANGIBLE - Valuation assumpti
INTANGIBLE - Valuation assumptions (Details) | 12 Months Ended |
Dec. 31, 2019R$ / $$ / T | |
Assumptions used in valuation of cash-generating units | |
Nominal tax rate for cash generating units | 3.60% |
Discount rate, based on WACC (as a percent) | 9.10% |
Not later than one year | |
Assumptions used in valuation of cash-generating units | |
Average exchange rate | R$ / $ | 3.94 |
Discount rate (pos-tax) | 9.10% |
Discount rate (pre-tax) | 12.50% |
Later than one year and not later than two years | |
Assumptions used in valuation of cash-generating units | |
Average exchange rate | R$ / $ | 3.92 |
Discount rate (pos-tax) | 9.10% |
Discount rate (pre-tax) | 12.50% |
Later than two years and not later than three years | |
Assumptions used in valuation of cash-generating units | |
Average exchange rate | R$ / $ | 3.96 |
Discount rate (pos-tax) | 9.10% |
Discount rate (pre-tax) | 12.50% |
Later than three years and not later than four years | |
Assumptions used in valuation of cash-generating units | |
Average exchange rate | R$ / $ | 4.02 |
Discount rate (pos-tax) | 9.10% |
Discount rate (pre-tax) | 12.50% |
Later than four years and not later than five years | |
Assumptions used in valuation of cash-generating units | |
Average exchange rate | R$ / $ | 4.08 |
Discount rate (pos-tax) | 9.10% |
Discount rate (pre-tax) | 12.50% |
Asia | Not later than one year | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 502.30 |
Asia | Later than one year and not later than two years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 670 |
Asia | Later than two years and not later than three years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 767 |
Asia | Later than three years and not later than four years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 577 |
Asia | Later than four years and not later than five years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 588.60 |
Europe | Not later than one year | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 506.70 |
Europe | Later than one year and not later than two years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 603 |
Europe | Later than two years and not later than three years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 691.80 |
Europe | Later than three years and not later than four years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 553.90 |
Europe | Later than four years and not later than five years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 565 |
North America | Not later than one year | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 559.40 |
North America | Later than one year and not later than two years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 638.90 |
North America | Later than two years and not later than three years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 733 |
North America | Later than three years and not later than four years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 586.80 |
North America | Later than four years and not later than five years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 598.60 |
Latin America | Not later than one year | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 545.50 |
Latin America | Later than one year and not later than two years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 660.40 |
Latin America | Later than two years and not later than three years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 757.60 |
Latin America | Later than three years and not later than four years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 606.60 |
Latin America | Later than four years and not later than five years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 618.70 |
Domestic | Not later than one year | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 439.50 |
Domestic | Later than one year and not later than two years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 631 |
Domestic | Later than two years and not later than three years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 723.90 |
Domestic | Later than three years and not later than four years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 579.60 |
Domestic | Later than four years and not later than five years | |
Assumptions used in valuation of cash-generating units | |
Net average pulp price | 600.10 |
INTANGIBLE - Changes in intangi
INTANGIBLE - Changes in intangible assets with determined useful life (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets with determined useful life | ||
Balance at the beginning of the year | R$ 180311 | R$ 141785 |
Additions | 17,715 | 7,983 |
Amortization | (74,332) | (44,340) |
Exchange rate variation | 2,930 | 12,461 |
Transfers and others | 26,263 | 8,945 |
Balance at the end of the year | 9,649,789 | 180,311 |
Trademarks and patents | ||
Intangible assets with determined useful life | ||
Balance at the beginning of the year | 19,477 | |
Balance at the end of the year | R$ 20649 | 19,477 |
Trademarks and patents | Minimum | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 5.00% | |
Trademarks and patents | Maximum | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 10.00% | |
Software | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 20.00% | |
Balance at the beginning of the year | R$ 59112 | |
Balance at the end of the year | 119,265 | 59,112 |
Customer portfolio | ||
Intangible assets with determined useful life | ||
Balance at the beginning of the year | 19,004 | |
Balance at the end of the year | R$ 7393 | 19,004 |
Customer portfolio | Minimum | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 2.50% | |
Customer portfolio | Maximum | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 5.00% | |
Non-compete agreement | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 5.00% | |
Balance at the beginning of the year | R$ 2812 | |
Balance at the end of the year | R$ 2150 | 2,812 |
Research and development agreement | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 19.00% | |
Balance at the beginning of the year | R$ 79906 | |
Balance at the end of the year | R$ 74643 | 79,906 |
Development and implementation of systems | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 20.00% | |
Balance at the end of the year | R$ 1687 | |
Right of exploitation - Terminal concession | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 4.00% | |
Balance at the end of the year | R$ 166932 | |
Supplier Relationship - Chemicals | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 5.00% | |
Balance at the end of the year | R$ 51562 | |
Other | ||
Intangible assets with determined useful life | ||
Balance at the end of the year | 1,857 | |
Fibria | ||
Intangible assets with determined useful life | ||
Business combination | 308,681 | |
Balance at the end of the year | R$ 9202973 | |
Fibria | Software | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 20.00% | |
Balance at the end of the year | R$ 16402 | |
Fibria | Customer portfolio | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 9.00% | |
Balance at the end of the year | R$ 8209799 | |
Fibria | Customer portfolio | Minimum | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 13.00% | |
Fibria | Customer portfolio | Maximum | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 100.00% | |
Fibria | Supplier agreements | ||
Intangible assets with determined useful life | ||
Balance at the end of the year | R$ 99997 | |
Fibria | Port services agreements | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 4.00% | |
Balance at the end of the year | R$ 665228 | |
Fibria | Port concession | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 4.00% | |
Balance at the end of the year | R$ 52324 | |
Fibria | Lease agreements | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 17.00% | |
Balance at the end of the year | R$ 36871 | |
Fibria | Cultivars | ||
Intangible assets with determined useful life | ||
Average Annual Amortization Rate | 14.00% | |
Balance at the end of the year | R$ 122352 | |
Facepa | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | R$ 53477 | |
Ibema | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 702 | |
Balance at the end of the year | 678 | |
Gross | Fibria | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 10,159,550 | |
Gross | Fibria | Software | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 20,502 | |
Gross | Fibria | Customer portfolio | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 9,030,779 | |
Gross | Fibria | Supplier agreements | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 172,094 | |
Gross | Fibria | Port services agreements | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 694,590 | |
Gross | Fibria | Port concession | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 54,470 | |
Gross | Fibria | Lease agreements | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 44,371 | |
Gross | Fibria | Cultivars | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | 142,744 | |
Accumulated Depreciation and Amortization | Fibria | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | (956,577) | |
Accumulated Depreciation and Amortization | Fibria | Software | ||
Intangible assets with determined useful life | ||
Business combination | (4,100) | |
Accumulated Depreciation and Amortization | Fibria | Customer portfolio | ||
Intangible assets with determined useful life | ||
Business combination | (820,980) | |
Accumulated Depreciation and Amortization | Fibria | Supplier agreements | ||
Intangible assets with determined useful life | ||
Business combination | (72,097) | |
Accumulated Depreciation and Amortization | Fibria | Port services agreements | ||
Intangible assets with determined useful life | ||
Business combination | (29,362) | |
Accumulated Depreciation and Amortization | Fibria | Port concession | ||
Intangible assets with determined useful life | ||
Business combination | (2,147) | |
Accumulated Depreciation and Amortization | Fibria | Lease agreements | ||
Intangible assets with determined useful life | ||
Business combination | (7,499) | |
Accumulated Depreciation and Amortization | Fibria | Cultivars | ||
Intangible assets with determined useful life | ||
Business combination | (20,392) | |
Accumulated Depreciation and Amortization | Facepa | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | (15,430) | |
Accumulated Depreciation and Amortization | Ibema | ||
Intangible assets with determined useful life | ||
Fair value adjustment on business combination | R$ 24 |
TRADE ACCOUNTS PAYABLE (Details
TRADE ACCOUNTS PAYABLE (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade accounts payable | ||
Trade accounts payable | R$ 2376459 | R$ 632565 |
Klabin S.A. | ||
Trade accounts payable | ||
Payment Period | 360 days | |
Pulp | Klabin S.A. | ||
Trade accounts payable | ||
Trade accounts payable | R$ 936887 | |
Domestic | ||
Trade accounts payable | ||
Related party (Companies of the Suzano group) | 2,478 | 1,804 |
Trade accounts payable | 1,288,774 | 558,041 |
Foreign | ||
Trade accounts payable | ||
Trade accounts payable | R$ 1085207 | R$ 72720 |
LOANS, FINANCING AND DEBENTUR_3
LOANS, FINANCING AND DEBENTURES - Breakdown by type (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | R$ 6227951 | R$ 3426696 | |
Loans and financing, non current | 57,456,375 | 32,310,813 | |
Total borrowings | 63,684,326 | 35,737,509 | R$ 12191856 |
Interest on financing, current | 886,886 | 345,988 | |
Interest on financing, non-current | 136,799 | ||
Interest on financing | 1,023,685 | 345,988 | |
Non-current funding, current | 5,341,065 | 3,080,708 | |
Non-current funding, non-current | 57,319,576 | 32,310,813 | |
Non-current funding | 62,660,641 | 35,391,521 | |
Foreign | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 2,664,833 | 2,414,457 | |
Loans and financing, non current | 42,834,772 | 23,964,910 | |
Total borrowings | R$ 45499604 | 26,379,367 | |
Foreign | BNDES | UMBNDES | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.60% | ||
Current borrowings | R$ 26307 | 21,577 | |
Loans and financing, non current | 27,620 | 139,940 | |
Total borrowings | R$ 53927 | 161,517 | |
Foreign | Bonds | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.70% | ||
Current borrowings | R$ 640177 | 216,624 | |
Loans and financing, non current | 27,375,673 | 11,189,403 | |
Total borrowings | 28,015,850 | 11,406,027 | |
Foreign | Syndicated Loan | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 12269252 | ||
Foreign | Syndicated Loan | LIBOR | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 2.70% | ||
Current borrowings | R$ 29268 | 37,546 | |
Loans and financing, non current | 12,269,251 | 11,787,588 | |
Total borrowings | 12,298,519 | 11,825,134 | |
Foreign | Finnvera/EKN ("Export Credit Agencies") | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 3162227 | ||
Foreign | Finnvera/EKN ("Export Credit Agencies") | LIBOR | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 236,385 | ||
Loans and financing, non current | 560,689 | ||
Total borrowings | 797,074 | ||
Foreign | Financial lease | U.S.$ | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 5,608 | ||
Loans and financing, non current | 12,617 | ||
Total borrowings | 18,225 | ||
Foreign | Export credits (ACC - pre-payment) | LIBOR/Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 4.10% | ||
Current borrowings | R$ 1965600 | 1,896,717 | |
Loans and financing, non current | 3,162,228 | 274,673 | |
Total borrowings | 5,127,827 | 2,171,390 | |
Foreign | Others | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 3,481 | ||
Total borrowings | 3,481 | ||
Domestic | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 3,563,118 | 1,012,239 | |
Loans and financing, non current | 14,621,603 | 8,345,903 | |
Total borrowings | R$ 18184722 | 9,358,142 | |
Domestic | BNDES | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.20% | ||
Current borrowings | R$ 39325 | 26,119 | |
Loans and financing, non current | 77,333 | 95,034 | |
Total borrowings | R$ 116658 | 121,153 | |
Domestic | BNDES | TJLP | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 7.80% | ||
Current borrowings | R$ 283658 | 28,867 | |
Loans and financing, non current | 1,517,649 | 183,269 | |
Total borrowings | R$ 1801307 | 212,136 | |
Domestic | BNDES | TLP | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 9.20% | ||
Current borrowings | R$ 18404 | ||
Loans and financing, non current | 441,233 | ||
Total borrowings | R$ 459637 | ||
Domestic | BNDES | SELIC | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.90% | ||
Current borrowings | R$ 78458 | ||
Loans and financing, non current | 718,017 | ||
Total borrowings | 796,475 | ||
Domestic | FINAME | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 9564 | ||
Domestic | FINAME | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.60% | ||
Current borrowings | R$ 4781 | 970 | |
Loans and financing, non current | 9,564 | 2,010 | |
Total borrowings | 14,345 | 2,980 | |
Domestic | BNB | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 156904 | ||
Domestic | BNB | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.70% | ||
Current borrowings | R$ 37815 | 25,038 | |
Loans and financing, non current | 156,904 | 191,976 | |
Total borrowings | 194,719 | 217,014 | |
Domestic | CRA ("Agribusiness Receivables Certificates") | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 2952451 | ||
Domestic | CRA ("Agribusiness Receivables Certificates") | CDI/IPCA | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.90% | ||
Current borrowings | R$ 2860938 | 789,892 | |
Loans and financing, non current | 2,952,451 | 1,588,986 | |
Total borrowings | 5,813,389 | 2,378,878 | |
Domestic | Export credit note | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 1270065 | ||
Domestic | Export credit note | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.20% | ||
Current borrowings | R$ 131914 | 93,001 | |
Loans and financing, non current | 1,270,065 | 1,327,378 | |
Total borrowings | 1,401,979 | 1,420,379 | |
Domestic | Rural Producer Certificate | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 273303 | ||
Domestic | Rural Producer Certificate | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 7.60% | ||
Current borrowings | R$ 5840 | 6,809 | |
Loans and financing, non current | 273,303 | 273,029 | |
Total borrowings | 279,143 | 279,838 | |
Domestic | Export credits ("Pre payment") | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 1312586 | ||
Domestic | Export credits ("Pre payment") | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.20% | ||
Current borrowings | R$ 77694 | ||
Loans and financing, non current | 1,312,586 | ||
Total borrowings | 1,390,280 | ||
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 475905 | ||
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 8.00% | ||
Current borrowings | R$ 76596 | 7,725 | |
Loans and financing, non current | 475,905 | 5,135 | |
Total borrowings | 552,501 | 12,860 | |
Domestic | Others Revolving Cost Working Capital And Industrial Development Fund | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 4559 | ||
Domestic | Others Revolving Cost Working Capital And Industrial Development Fund | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 0.40% | ||
Current borrowings | R$ 954 | 10,467 | |
Loans and financing, non current | 4,558 | 16,930 | |
Total borrowings | 5,513 | 27,397 | |
Domestic | FDIC Funds of credit rights | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | 22,054 | ||
Total borrowings | 22,054 | ||
Domestic | Fair value adjustment on business combination with Fibria | |||
LOANS, FINANCING AND DEBENTURES | |||
Current borrowings | (63,256) | ||
Total borrowings | (63,256) | ||
Domestic | Debentures | |||
LOANS, FINANCING AND DEBENTURES | |||
Loans and financing, non current | R$ 5412035 | ||
Domestic | Debentures | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.70% | ||
Current borrowings | R$ 9997 | 1,297 | |
Loans and financing, non current | 5,412,035 | 4,662,156 | |
Total borrowings | R$ 5422032 | R$ 4663453 |
LOANS, FINANCING AND DEBENTUR_4
LOANS, FINANCING AND DEBENTURES - Rollforward in loans, financing and debentures (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
LOANS, FINANCING AND DEBENTURES | ||
Beginning balance | R$ 35737509 | R$ 12191856 |
Reclassification - accounts payable from lease operations | (18,225) | |
Fundraising | 18,993,837 | 25,539,994 |
Interest accrued | 3,362,250 | 839,278 |
Exchange rate variation, net | 1,781,562 | 1,457,989 |
Settlement of principal | (13,994,708) | (3,738,577) |
Settlement of interest | (2,977,957) | (669,088) |
Amortization of fundraising costs | 185,807 | 36,134 |
Other | 10,411 | |
Ending balance | 63,684,326 | 35,737,509 |
Fibria | ||
LOANS, FINANCING AND DEBENTURES | ||
Addition from acquisition of subsidiaries | 20,667,096 | |
Fair value adjustment on business combination with Fibria | R$ 63256 | |
PCH / FACEPA | ||
LOANS, FINANCING AND DEBENTURES | ||
Addition from acquisition of subsidiaries | R$ 79923 |
LOANS, FINANCING AND DEBENTUR_5
LOANS, FINANCING AND DEBENTURES - Breakdown by maturity - non current (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | R$ 57456375 | R$ 32310813 |
Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 42,834,772 | 23,964,910 |
Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 27,620 | |
Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 27,375,673 | 11,189,403 |
Foreign | Syndicated Loan | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 12,269,252 | |
Foreign | Finnvera/EKN ("Export Credit Agencies") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 3,162,227 | |
Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 14,621,603 | 8,345,903 |
Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,517,649 | 183,269 |
Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 441,233 | |
Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 77,333 | 95,034 |
Domestic | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 718,017 | |
Domestic | FINAME | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 9,564 | |
Domestic | FINAME | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 9,564 | 2,010 |
Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 156,904 | |
Domestic | BNB | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 156,904 | 191,976 |
Domestic | CRA ("Agribusiness Receivables Certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,952,451 | |
Domestic | Export credit note | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,270,065 | |
Domestic | Rural Producer Certificate | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 273,303 | |
Domestic | Export credits ("Pre payment") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,312,586 | |
Domestic | Export credits ("Pre payment") | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,312,586 | |
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 475,905 | |
Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 475,905 | 5,135 |
Domestic | Others Revolving Cost Working Capital And Industrial Development Fund | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 4,559 | |
Domestic | Others Revolving Cost Working Capital And Industrial Development Fund | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 4,558 | R$ 16930 |
Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 5,412,035 | |
Later than one year and not later than two years | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,756,576 | |
Later than one year and not later than two years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,251,382 | |
Later than one year and not later than two years | Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 9,175 | |
Later than one year and not later than two years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 762,320 | |
Later than one year and not later than two years | Foreign | Syndicated Loan | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,343,567 | |
Later than one year and not later than two years | Foreign | Finnvera/EKN ("Export Credit Agencies") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 136,320 | |
Later than one year and not later than two years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 505,194 | |
Later than one year and not later than two years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 269,593 | |
Later than one year and not later than two years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 18,866 | |
Later than one year and not later than two years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 28,959 | |
Later than one year and not later than two years | Domestic | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 76,117 | |
Later than one year and not later than two years | Domestic | FINAME | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 3,829 | |
Later than one year and not later than two years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 35,285 | |
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 | ||
Loans and financing, non current | 67,986 | |
Later than one year and not later than two years | Domestic | Others Revolving Cost Working Capital And Industrial Development Fund | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 4,559 | |
Later than two years and not later than three years | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 5,219,750 | |
Later than two years and not later than three years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 3,220,893 | |
Later than two years and not later than three years | Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 10,061 | |
Later than two years and not later than three years | Foreign | Syndicated Loan | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 3,197,689 | |
Later than two years and not later than three years | Foreign | Finnvera/EKN ("Export Credit Agencies") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 13,143 | |
Later than two years and not later than three years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,998,857 | |
Later than two years and not later than three years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 265,467 | |
Later than two years and not later than three years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 18,866 | |
Later than two years and not later than three years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 24,567 | |
Later than two years and not later than three years | Domestic | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 73,304 | |
Later than two years and not later than three years | Domestic | FINAME | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,786 | |
Later than two years and not later than three years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 33,201 | |
Later than two years and not later than three years | Domestic | CRA ("Agribusiness Receivables Certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, 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 | ||
Loans and financing, non current | 67,986 | |
Later than three years and not later than four years | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 9,681,219 | |
Later than three years and not later than four years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 7,736,380 | |
Later than three years and not later than four years | Foreign | BNDES | Currency basket | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 8,384 | |
Later than three years and not later than four years | Foreign | Syndicated Loan | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 7,727,996 | |
Later than three years and not later than four years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,944,839 | |
Later than three years and not later than four years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 266,362 | |
Later than three years and not later than four years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 18,866 | |
Later than three years and not later than four years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 18,601 | |
Later than three years and not later than four years | Domestic | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 96,312 | |
Later than three years and not later than four years | Domestic | FINAME | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,656 | |
Later than three years and not later than four years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 35,285 | |
Later than three years and not later than four years | Domestic | CRA ("Agribusiness Receivables Certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,439,771 | |
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 | ||
Loans and financing, non current | 67,986 | |
Later than four years and not later than five years | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 6,184,862 | |
Later than four years and not later than five years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 4,417,787 | |
Later than four years and not later than five years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,402,437 | |
Later than four years and not later than five years | Foreign | Finnvera/EKN ("Export Credit Agencies") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,015,350 | |
Later than four years and not later than five years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,767,075 | |
Later than four years and not later than five years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 239,883 | |
Later than four years and not later than five years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 18,866 | |
Later than four years and not later than five years | Domestic | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 5,206 | |
Later than four years and not later than five years | Domestic | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 88,347 | |
Later than four years and not later than five years | Domestic | FINAME | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,197 | |
Later than four years and not later than five years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 33,001 | |
Later than four years and not later than five years | Domestic | Export credits ("Pre payment") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,312,586 | |
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 | ||
Loans and financing, non current | 67,989 | |
Later than five years and not later than six years | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 7,094,874 | |
Later than five years and not later than six years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 3,377,075 | |
Later than five years and not later than six years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,379,661 | |
Later than five years and not later than six years | Foreign | Finnvera/EKN ("Export Credit Agencies") | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 997,414 | |
Later than five years and not later than six years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 3,717,799 | |
Later than five years and not later than six years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 292,573 | |
Later than five years and not later than six years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 17,617 | |
Later than five years and not later than six years | Domestic | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 210,392 | |
Later than five years and not later than six years | Domestic | FINAME | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 96 | |
Later than five years and not later than six years | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 10,285 | |
Later than five years and not later than six years | Domestic | Export credit note | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 640,800 | |
Later than five years and not later than six years | Domestic | Rural Producer Certificate | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, 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 | ||
Loans and financing, non current | 67,986 | |
Later than five years and not later than six years | Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,340,550 | |
Later than six years and not later than seven years [Member] | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 6,342,329 | |
Later than six years and not later than seven years [Member] | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,812,354 | |
Later than six years and not later than seven years [Member] | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,812,354 | |
Later than six years and not later than seven years [Member] | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 3,529,975 | |
Later than six years and not later than seven years [Member] | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 169,102 | |
Later than six years and not later than seven years [Member] | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 20,120 | |
Later than six years and not later than seven years [Member] | Domestic | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 173,545 | |
Later than six years and not later than seven years [Member] | Domestic | BNB | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 9,847 | |
Later than six years and not later than seven years [Member] | Domestic | Export credit note | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 629,265 | |
Later than six years and not later than seven years [Member] | Domestic | Rural Producer Certificate | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 135,803 | |
Later than six years and not later than seven years [Member] | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 67,986 | |
Later than six years and not later than seven years [Member] | Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 2,324,307 | |
Later than seven years | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 20,176,765 | |
Later than seven years | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 19,018,901 | |
Later than seven years | Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 19,018,901 | |
Later than seven years | Domestic | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 1,157,864 | |
Later than seven years | Domestic | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 14,668 | |
Later than seven years | Domestic | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 328,032 | |
Later than seven years | Domestic | FCO ("Central West Fund"), FDCO ("Central West Development Fund") and FINEP | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | 67,986 | |
Later than seven years | Domestic | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Loans and financing, non current | R$ 747178 |
LOANS, FINANCING AND DEBENTUR_6
LOANS, FINANCING AND DEBENTURES - Breakdown by currency (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | R$ 63684326 | R$ 35737509 | R$ 12191856 |
Brazilian Reais | |||
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | 17,362,903 | 9,358,142 | |
USD | |||
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | 45,460,138 | 26,217,850 | |
Selic | |||
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | 807,358 | ||
Currency basket | |||
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | R$ 53927 | R$ 161517 |
LOANS, FINANCING AND DEBENTUR_7
LOANS, FINANCING AND DEBENTURES - Fundraising costs (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Cost | R$ 736918 | |
Amortization | 364,582 | |
Balance to be amortized | 351,394 | R$ 156303 |
Bonds | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 343,642 | |
Amortization | 129,297 | |
Balance to be amortized | 201,467 | 67,189 |
CRA and NCE | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 125,222 | |
Amortization | 73,508 | |
Balance to be amortized | 47,443 | 20,195 |
Import ("ECA") | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 101,811 | |
Amortization | 101,811 | |
Balance to be amortized | 16,235 | |
Syndicated Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 72,774 | |
Amortization | 33,209 | |
Balance to be amortized | 40,382 | 30,552 |
Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 21,592 | |
Amortization | 4,674 | |
Balance to be amortized | 19,065 | 18,944 |
BNDES ("IOF") | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 53,730 | |
Amortization | 13,702 | |
Balance to be amortized | 38,447 | |
Others | ||
Disclosure of detailed information about borrowings [line items] | ||
Cost | 18,147 | |
Amortization | 8,381 | |
Balance to be amortized | R$ 4590 | R$ 3188 |
LOANS, FINANCING AND DEBENTUR_8
LOANS, FINANCING AND DEBENTURES - Relevant operations settled in the year (Details) R$ in Thousands, $ in Thousands | Jun. 18, 2019USD ($) | Jun. 18, 2019BRL (R$) | Jun. 17, 2019USD ($) | Jun. 17, 2019BRL (R$) | May 31, 2019BRL (R$) | Apr. 30, 2019USD ($) | Apr. 30, 2019BRL (R$) | Apr. 29, 2019USD ($) | Apr. 29, 2019BRL (R$) | Mar. 27, 2019BRL (R$) | Mar. 15, 2019BRL (R$) | Jan. 03, 2019BRL (R$) | Jun. 14, 2019 | Feb. 25, 2019 |
CRA ("Agribusiness Receivables Certificates") | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Repayments of borrowings/ Settlement amount | R$ 878573 | |||||||||||||
CRA ("Agribusiness Receivables Certificates"), Series 1 | CDI/IPCA | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Percentage of basis used to calculate interest rate | 99.00% | |||||||||||||
CRA ("Agribusiness Receivables Certificates"), Series 2 | CDI/IPCA | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Interest rate | 4.5055% | |||||||||||||
BNDES | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Repayments of borrowings/ Settlement amount | R$ 299682 | |||||||||||||
Export prepayment ("PPE") | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Interest rate | 7.70% | 8.35% | ||||||||||||
Export prepayment ("PPE") | Suzano/Fibria International Trade GmbH | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Repayments of borrowings/ Settlement amount | $ 156,032 | R$ 602410 | $ 631,138 | R$ 2454443 | ||||||||||
Export prepayment ("PPE") | LIBOR | Suzano/Fibria International Trade GmbH | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Basis spread (as a percent) | 1.15% | 1.15% | 1.15% | 1.15% | ||||||||||
Finnvera/EKN ("Export Credit Agencies") | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Repayments of borrowings/ Settlement amount | $ 208,400 | R$ 822200 | $ 208,400 | R$ 822200 | ||||||||||
Export credits ("Finnvera") | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Repayments of borrowings/ Settlement amount | $ 378,471 | R$ 1473114 | ||||||||||||
Debentures | ||||||||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||||||||
Repayments of borrowings/ Settlement amount | R$ 2019587 | R$ 2056173 |
LOANS, FINANCING AND DEBENTUR_9
LOANS, FINANCING AND DEBENTURES - Relevant operations contracted in the year (Details) $ in Thousands | Oct. 17, 2019BRL (R$)shares | Jun. 14, 2019USD ($) | Jan. 07, 2019BRL (R$) | Dec. 17, 2019BRL (R$) | Jun. 14, 2019BRL (R$) | May 21, 2019USD ($) | May 21, 2019BRL (R$) | May 17, 2019BRL (R$) | Feb. 25, 2019BRL (R$) | Jan. 29, 2019USD ($) | Jan. 29, 2019BRL (R$) |
Senior Notes 2029 | Suzano ustria GmbH | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | $ 750,000 | R$ 2874150000 | |||||||||
Interest rate | 5.465% | 5.465% | |||||||||
Export prepayment ("PPE") | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | R$ 578400000 | R$ 738800.000 | |||||||||
Interest rate | 7.70% | 7.70% | 8.35% | ||||||||
Export prepayment ("PPE") | Suzano/Fibria International Trade GmbH | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | $ 750,000 | R$ 2910975000 | |||||||||
Debt instrument term | 6 years | ||||||||||
Debt instrument grace period | 5 years | ||||||||||
Senior Notes 2047 | Suzano ustria GmbH | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | $ 250,000 | R$ 1020250000 | |||||||||
Interest rate | 7.00% | 7.00% | |||||||||
Yield rate | 6.245% | 6.245% | |||||||||
Basis spread (as a percent) | 7.00% | 7.00% | |||||||||
Senior Notes 2030 | Suzano ustria GmbH | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | $ 1,000,000 | R$ 4081000000 | |||||||||
Interest rate | 5.00% | 5.00% | |||||||||
Yield rate | 5.18% | 5.18% | |||||||||
Basis spread (as a percent) | 5.00% | 5.00% | |||||||||
BNDES | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | R$ 108050000 | ||||||||||
BNDES | TLP | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | R$ 300000000 | ||||||||||
Basis spread (as a percent) | 1.77% | ||||||||||
BNDES | TLP | Maximum | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Basis spread (as a percent) | 1.44% | ||||||||||
BNDES | TLP | Minimum | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Basis spread (as a percent) | 0.96% | ||||||||||
Non-Convertible Debentures | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Notional amount | R$ 750000000 | R$ 4000000000 | |||||||||
Number of non-convertible shares issued | shares | 750,000 | ||||||||||
Non-Convertible Debentures | CDI | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Percentage of basis used to calculate interest rate | 100.00% | ||||||||||
Basis spread (as a percent) | 1.20% | ||||||||||
Non-Convertible Debentures | CDI | Maximum | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Percentage of basis used to calculate interest rate | 112.00% | ||||||||||
Non-Convertible Debentures | CDI | Minimum | |||||||||||
LOANS, FINANCING AND DEBENTURES | |||||||||||
Percentage of basis used to calculate interest rate | 103.00% |
LOANS, FINANCING AND DEBENTU_10
LOANS, FINANCING AND DEBENTURES - Advances on foreign exchange contracts ("ACC"), Advances on foreign exchange delivered ("ACE") and Export prepayment ("PPE") and Revolving credit facility (Details) R$ in Thousands, $ in Thousands | Feb. 20, 2019USD ($) | Dec. 03, 2019USD ($)agreement | Dec. 03, 2019BRL (R$) | Feb. 20, 2019BRL (R$) |
ACCs, ACEs and PPEs agreements | ||||
LOANS, FINANCING AND DEBENTURES | ||||
Number of Agreements | 10 | |||
Notional value | $ 450,000 | R$ 1868743 | ||
ACCs, ACEs and PPEs agreements | Maximum | ||||
LOANS, FINANCING AND DEBENTURES | ||||
Debt instrument term | 1 year | |||
Revolving Credit Facility | Suzano Austria GmbH and Suzano Pulp and Paper Europe SA | ||||
LOANS, FINANCING AND DEBENTURES | ||||
Notional value | $ 500,000 | R$ 1855000 | ||
Debt instrument term | 5 years |
LEASE - Right of use assets (De
LEASE - Right of use assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Right of use assets, effect of adoption | |||
Beginning balance | |||
Initial adoption on January 1, 2019 | R$ 3357850 | ||
Additions | 914,327 | ||
Amortization | (421,940) | ||
Ending balance | 3,850,237 | ||
Reclassified to biological assets | 268,081 | ||
IFRS 16, Leases | |||
Right of use assets | |||
Residual value adjustment | R$ 89338 | ||
Lands and Farms | |||
Right of use assets, effect of adoption | |||
Beginning balance | |||
Initial adoption on January 1, 2019 | 1,762,943 | ||
Additions | 260,982 | ||
Amortization | (254,280) | ||
Ending balance | 1,769,645 | ||
Machinery and equipment | |||
Right of use assets, effect of adoption | |||
Beginning balance | |||
Initial adoption on January 1, 2019 | 143,685 | ||
Additions | 1,529 | ||
Amortization | (15,163) | ||
Ending balance | 130,051 | ||
Buildings | |||
Right of use assets, effect of adoption | |||
Beginning balance | |||
Initial adoption on January 1, 2019 | 41,570 | ||
Additions | 39,794 | ||
Amortization | (35,365) | ||
Ending balance | 45,999 | ||
Ships and boats | |||
Right of use assets, effect of adoption | |||
Beginning balance | |||
Initial adoption on January 1, 2019 | 1,408,640 | ||
Additions | 612,022 | ||
Amortization | (116,207) | ||
Ending balance | 1,904,455 | ||
Vehicles | |||
Right of use assets, effect of adoption | |||
Beginning balance | |||
Initial adoption on January 1, 2019 | R$ 1012 | ||
Amortization | (925) | ||
Ending balance | R$ 87 |
LEASE - Lease liabilities (Deta
LEASE - Lease liabilities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lease Liabilities | |||
Adjustment to lease liabilities upon adoption of new accounting standard | R$ 18225 | ||
Present value of liabilities | R$ 3984070 | R$ 0 | |
IFRS 16, Leases | |||
Lease Liabilities | |||
Adjustment to lease liabilities upon adoption of new accounting standard | R$ 18225 | ||
Present value of liabilities | R$ 3428897 | ||
Lands and Farms | IFRS 16, Leases | |||
Lease Liabilities | |||
Average rate - % per annual | 10.89% | ||
Present value of liabilities | R$ 1761273 | ||
Machinery and equipment | IFRS 16, Leases | |||
Lease Liabilities | |||
Average rate - % per annual | 10.15% | ||
Present value of liabilities | R$ 214569 | ||
Buildings | IFRS 16, Leases | |||
Lease Liabilities | |||
Average rate - % per annual | 10.92% | ||
Present value of liabilities | R$ 41391 | ||
Ships and boats | IFRS 16, Leases | |||
Lease Liabilities | |||
Average rate - % per annual | 10.76% | ||
Present value of liabilities | R$ 1410474 | ||
Vehicles | IFRS 16, Leases | |||
Lease Liabilities | |||
Average rate - % per annual | 8.99% | ||
Present value of liabilities | R$ 1190 |
LEASE - Lease liabilities Rollf
LEASE - Lease liabilities Rollforward (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Lease Liabilities | ||
Beginning balance | R$ 0 | |
Initial adoption on January 1, 2019 | R$ 3428897 | |
Additions | 914,327 | |
Payments | (646,487) | |
Accrual of financial charges | 275,404 | |
Exchange rate variation | 11,929 | |
Ending balance | 3,984,070 | |
Current | 656,844 | |
Non-current | 3,327,226 | |
IFRS 16, Leases | ||
Lease Liabilities | ||
Initial adoption on January 1, 2019 | R$ 3428897 | |
Leased Land | ||
Lease Liabilities | ||
Accrual of financial charges | R$ 50795 |
LEASE - Amounts recognized in t
LEASE - Amounts recognized in the statement of income for the year (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
LEASE | |
Expenses relating to short-term assets | R$ 37007 |
Expenses relating to low-value assets | 14,349 |
Total amount recognized | R$ 51356 |
LEASE - Reconciliation of opera
LEASE - Reconciliation of operating lease commitments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Jan. 01, 2019 |
LEASE | ||
Operating lease commitments disclosed as of December 31, 2018 | R$ 1448241 | |
Business combination with Fibria | R$ 2974729 | |
Discounted through a lessee's incremental loan rate at initial adoption | (1,011,726) | |
Reclassification from loans and financing | 18,225 | |
Agreements revalued as service agreements | (572) | |
Operating lease commitments as of January 1, 2019 | R$ 3428897 |
PROVISION FOR JUDICIAL LIABIL_3
PROVISION FOR JUDICIAL LIABILITIES - Provisions for probable losses by lawsuit natures (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of other provisions [line items] | |||
Judicial deposits | R$ 174324 | ||
Provision | 3,686,801 | R$ 351270 | |
Provisions, net | 3,512,477 | 351,270 | R$ 317069 |
Tax | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | (124,133) | ||
Provision | 3,176,503 | 296,869 | 273,324 |
Provisions, net | 3,052,370 | 296,869 | |
Labor | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | (50,464) | ||
Provision | 227,139 | 50,869 | R$ 40363 |
Provisions, net | 176,675 | 50,869 | |
Civil | |||
Disclosure of other provisions [line items] | |||
Judicial deposits | 273 | ||
Provision | 283,159 | ||
Provisions, net | R$ 283432 | R$ 3532 |
PROVISION FOR JUDICIAL LIABIL_4
PROVISION FOR JUDICIAL LIABILITIES - Provisions for probable losses by nature of proceedings (Details) R$ in Thousands | Dec. 31, 2019BRL (R$)lawsuit | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
PROVISION FOR JUDICIAL LIABILITIES | |||
Balance at the beginning of the year | R$ 351270 | ||
Business combination with Fibria | 389,593 | R$ 1900 | |
Payments | (40,360) | (41,012) | |
Write-off | (73,039) | (19,010) | |
Additions | 107,224 | 78,620 | |
Monetary adjustment | 49,761 | 13,703 | |
Fair value adjustment on business combination with Fibria | 2,902,352 | ||
Balance at the end of the year | R$ 3686801 | 3,686,801 | 351,270 |
Tax | |||
PROVISION FOR JUDICIAL LIABILITIES | |||
Balance at the beginning of the year | 296,869 | 273,324 | |
Business combination with Fibria | 139,462 | ||
Payments | (34) | (18,351) | |
Write-off | (3,875) | (13,605) | |
Additions | 46,603 | 49,754 | |
Monetary adjustment | 13,388 | 5,747 | |
Fair value adjustment on business combination with Fibria | 2,684,090 | ||
Balance at the end of the year | R$ 3176503 | 3,176,503 | 296,869 |
Tax | Probable loss | |||
PROVISION FOR JUDICIAL LIABILITIES | |||
Number of lawsuits | lawsuit | 43 | ||
Labor | |||
PROVISION FOR JUDICIAL LIABILITIES | |||
Balance at the beginning of the year | 50,869 | 40,363 | |
Business combination with Fibria | 185,157 | 1,900 | |
Payments | (34,794) | (22,580) | |
Write-off | (55,730) | (5,011) | |
Additions | 50,521 | 28,716 | |
Monetary adjustment | 31,116 | 7,481 | |
Balance at the end of the year | R$ 227139 | 227,139 | 50,869 |
Labor | Probable loss | |||
PROVISION FOR JUDICIAL LIABILITIES | |||
Number of lawsuits | lawsuit | 1,236 | ||
Civil and environment | |||
PROVISION FOR JUDICIAL LIABILITIES | |||
Balance at the beginning of the year | 3,532 | 3,382 | |
Business combination with Fibria | 64,974 | ||
Payments | (5,532) | (81) | |
Write-off | (13,434) | (394) | |
Additions | 10,100 | 150 | |
Monetary adjustment | 5,257 | 475 | |
Fair value adjustment on business combination with Fibria | 218,262 | ||
Balance at the end of the year | R$ 283159 | R$ 283159 | R$ 3532 |
Civil and environment | Probable loss | |||
PROVISION FOR JUDICIAL LIABILITIES | |||
Number of lawsuits | lawsuit | 24 |
PROVISION FOR JUDICIAL LIABIL_5
PROVISION FOR JUDICIAL LIABILITIES - Provision for possible losses (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | R$ 10779908 | R$ 1206341 |
Tax | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | 7,504,398 | 1,077,761 |
Labor | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | 279,934 | 85,309 |
Civil | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | R$ 2995576 | R$ 43271 |
PROVISION FOR JUDICIAL LIABIL_6
PROVISION FOR JUDICIAL LIABILITIES - Additional information (Details) | Dec. 31, 2019BRL (R$)lawsuit | Dec. 31, 2019BRL (R$)halawsuit |
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | R$ 279934000 | R$ 279934000 |
Tax | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | 7,511,435,000 | R$ 7511435000 |
Number of lawsuits for possible loss | 831 | |
Tax and social security | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | R$ 2251462000 | R$ 2251462000 |
Labor | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Number of lawsuits in which the Company is a defendant. | lawsuit | 1,797 | 1,797 |
Civil and environment | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | R$ 2995576000 | R$ 2995576000 |
Lawsuit dispute period | 30 years | |
Civil law suit in property one | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Area blocked in preliminary injunction | ha | 6,000 | |
Civil law suit in property Two | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Area blocked in preliminary injunction | ha | 5,601 | |
Income tax assessment - IRPJ/CSLL disallowance of depreciation, amortization and depletion expenses - 2010 | Tax and social security | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | 695,679,000 | R$ 695679000 |
IRPJ/CSLL Approval of Offset of 1997 Tax Loss | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Difference of tax loss and owned to tax authorities | 51,000,000 | |
IRPJ/CSLL Approval of Offset of 1997 Tax Loss | Tax and social security | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | 254,081,000 | 254,081,000 |
Tax loss offset approved by tax authorities | 83,000,000 | |
Tax incentive - Agency for the Development of Northeastern Brazil ("ADENE") | Tax and social security | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | 125,191,000 | 125,191,000 |
PIS/COFINS - Goods and services - 2009 to 2011 | Tax and social security | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | 162,750,000 | 162,750,000 |
Offsetting - IRRF - period 2000 | Tax and social security | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provisions for possible losses | R$ 108320000 | R$ 108320000 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Suzano Prev pension plan | ||
Defined contribution plans | ||
Employer contributions | R$ 5993 | R$ 6560 |
Suzano Prev pension plan | Nominal salary less than 10 URS | ||
Defined contribution plans | ||
Percentage of contribution by employer based on nominal salary | 0.50% | |
Percentage of contribution by employee based on nominal salary | 0.00% | |
Suzano Prev pension plan | Nominal salary greater than 10 URS | ||
Defined contribution plans | ||
Percentage of contribution by employer based on nominal salary | 0.50% | |
Suzano Prev pension plan | Nominal salary greater than 10 URS | Minimum | ||
Defined contribution plans | ||
Percentage of contribution by employer based on nominal salary exceeds 10 Suzano | 1.00% | |
Suzano Prev pension plan | Nominal salary greater than 10 URS | Maximum | ||
Defined contribution plans | ||
Percentage of contribution by employer based on nominal salary exceeds 10 Suzano | 6.00% | |
FUNSEJEM | ||
Defined contribution plans | ||
Employer contributions | R$ 9920 | R$ 12840 |
FUNSEJEM | Minimum | ||
Defined contribution plans | ||
Percentage of contribution by employer based on nominal salary exceeds 10 Suzano | 0.50% | |
FUNSEJEM | Maximum | ||
Defined contribution plans | ||
Percentage of contribution by employer based on nominal salary exceeds 10 Suzano | 6.00% |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in actuarial liability (Details) - Defined benefit plan - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in actuarial liability | ||
Actuarial liabilities balance, beginning of the year | R$ 430427 | R$ 351263 |
Business combination with Fibria | 147,877 | |
Interest on employee benefits | 44,496 | 35,920 |
Actuarial loss | 147,640 | 69,305 |
Benefits paid in the year | (34,261) | (26,061) |
Actuarial liabilities balance, end of the year | R$ 736179 | R$ 430427 |
EMPLOYEE BENEFIT PLANS - Econom
EMPLOYEE BENEFIT PLANS - Economic actuarial assumptions and biometric data (Details) - Defined benefit plan | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefits | ||
Retirement age | 65 years | 65 years |
Family composition | 90.00% | 90.00% |
Turnover | 1.00% | 1.00% |
Permanency in the plan | 100.00% | 100.00% |
Discount rate | ||
Employee benefits | ||
Discount rate | 3.56% | 4.91% |
Medical cost growth rate | ||
Employee benefits | ||
Medical cost growth rate above basic inflation | 3.25% | 3.25% |
Mortality | ||
Employee benefits | ||
Biometric table of general mortality | AT-2000 | AT-2000 |
Biometric table of mortality for disabled persons | IAPB 57 | IAPB 57 |
Economic inflation | ||
Employee benefits | ||
Economic inflation | 3.50% | 4.00% |
0 to 24 years | ||
Employee benefits | ||
Aging factor | 1.50% | 1.50% |
Age 25 to 54 years | ||
Employee benefits | ||
Aging factor | 2.50% | 2.50% |
Age 55 to 79 years | ||
Employee benefits | ||
Aging factor | 4.50% | 4.50% |
Above 80 years | ||
Employee benefits | ||
Aging factor | 2.50% | 2.50% |
EMPLOYEE BENEFIT PLANS - Sensit
EMPLOYEE BENEFIT PLANS - Sensitivity Analysis (Details) - Defined benefit plan | Dec. 31, 2019 |
Discount rate | |
Sensitivity of the balance of actuarial liabilities | |
Change (as a percent) | 0.50% |
Increase in liability (as a percent) | 8.56% |
Decrease in liability (as a percent) | 4.88% |
Medical cost growth rate | |
Sensitivity of the balance of actuarial liabilities | |
Change (as a percent) | 0.50% |
Increase in liability (as a percent) | 8.27% |
Decrease in liability (as a percent) | 5.60% |
Mortality | |
Sensitivity of the balance of actuarial liabilities | |
Change (as a percent) | 1.00% |
Increase in liability (as a percent) | 7.23% |
Decrease in liability (as a percent) | 4.40% |
Economic inflation | |
Sensitivity of the balance of actuarial liabilities | |
Change (as a percent) | 0.50% |
EMPLOYEE BENEFIT PLANS - Foreca
EMPLOYEE BENEFIT PLANS - Forecast and average duration of payments of obligations (Details) - Defined benefit plan R$ in Thousands | Dec. 31, 2019BRL (R$) |
Not later than one year | |
Employee benefits | |
Estimated future benefit payments | R$ 31458 |
Later than one year and not later than two years | |
Employee benefits | |
Estimated future benefit payments | 32,701 |
Later than two years and not later than three years | |
Employee benefits | |
Estimated future benefit payments | 33,864 |
Later than three years and not later than four years | |
Employee benefits | |
Estimated future benefit payments | (35,014) |
Later than four years and not later than five years | |
Employee benefits | |
Estimated future benefit payments | (36,122) |
Later than five years and not later than ten years | |
Employee benefits | |
Estimated future benefit payments | R$ 194145 |
SHARE-BASED COMPENSATION PLAN -
SHARE-BASED COMPENSATION PLAN - Long term compensation plans ("PS and SAR") (Details) | 12 Months Ended | ||
Dec. 31, 2019EquityInstrumentsitemR$ / shares | Dec. 31, 2018EquityInstrumentsR$ / shares | Dec. 31, 2017EquityInstruments | |
SHARE-BASED COMPENSATION PLAN | |||
Number of share-based compensation plans | item | 3 | ||
PSO | |||
Number of shares | |||
Beginning balance | 5,045,357 | 5,055,519 | 3,048,991 |
Granted during the year | 2,413,038 | 1,415,476 | 3,035,488 |
Exercised | (827,065) | (751,859) | (695,532) |
Exercised due to resignation | (106,983) | (153,601) | (161,270) |
Abandoned / prescribed due to resignation | (527,910) | (520,178) | (172,158) |
Ending balance | 5,996,437 | 5,045,357 | 5,055,519 |
Weighted average exercise price for share options exercised | R$ / shares | R$ 31.75 | R$ 47.77 | |
PSO | SAR and PLUS | |||
SHARE-BASED COMPENSATION PLAN | |||
Required investment, as a percentage of total phantom share options at grant date | 5.00% | ||
Required investment, as a percentage of total phantom share options three years after grant date | 20.00% | ||
PSO | SAR and PLUS | Minimum | |||
SHARE-BASED COMPENSATION PLAN | |||
Vesting period | 3 years | ||
PSO | SAR and PLUS | Maximum | |||
SHARE-BASED COMPENSATION PLAN | |||
Vesting period | 5 years |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLAN - Phantom Stock Options Outstanding (Details) - PSO | Dec. 31, 2019BRL (R$)EquityInstruments | Dec. 31, 2018EquityInstruments | Dec. 31, 2017EquityInstruments | Dec. 31, 2016EquityInstruments |
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 5,996,437 | 5,045,357 | 5,055,519 | 3,048,991 |
SAR 2015 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 3,635 | |||
Fair value on the grant date | R$ | R$ 11.69 | |||
Deferral 2015 - 1 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
Fair value on the grant date | R$ | R$ 16.93 | |||
Deferral 2015 - 2 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 61,851 | |||
Fair value on the grant date | R$ | R$ 16.93 | |||
SAR 2016 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 64,075 | |||
Fair value on the grant date | R$ | R$ 15.96 | |||
PLUS 2016 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 16,708 | |||
Fair value on the grant date | R$ | R$ 15.96 | |||
SAR 2016 - October | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 8,934 | |||
Fair value on the grant date | R$ | R$ 11.03 | |||
SAR 2017 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 831,546 | |||
Fair value on the grant date | R$ | R$ 13.30 | |||
PLUS 2017 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 225,553 | |||
Fair value on the grant date | R$ | R$ 13.30 | |||
ILP 2017 - 36 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 304,512 | |||
Fair value on the grant date | R$ | R$ 13.30 | |||
ILP 2017 - 48 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 304,512 | |||
Fair value on the grant date | R$ | R$ 13.30 | |||
ILP 2017 - 60 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 304,512 | |||
Fair value on the grant date | R$ | R$ 13.30 | |||
ILP 2017 - CAB | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 307,141 | |||
Fair value on the grant date | R$ | R$ 13.30 | |||
ILP 2017 - 36 Oct. | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 84,436 | |||
Fair value on the grant date | R$ | R$ 15.87 | |||
Deferral 2017 - 1 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 169,575 | |||
Fair value on the grant date | R$ | R$ 19.88 | |||
Deferral 2017 - 2 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 169,575 | |||
Fair value on the grant date | R$ | R$ 19.88 | |||
SAR 2018 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 726,537 | |||
Fair value on the grant date | R$ | R$ 21.45 | |||
PLUS 2018 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 74,592 | |||
Fair value on the grant date | R$ | R$ 21.45 | |||
ILP 2019 - 24 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 520,000 | |||
Fair value on the grant date | R$ | R$ 41.10 | |||
ILP 2019 - 36 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 520,000 | |||
Fair value on the grant date | R$ | R$ 41.10 | |||
Deferral 2018 - 1 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 92,356 | |||
Fair value on the grant date | R$ | R$ 41.10 | |||
Deferral 2018 - 2 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 92,356 | |||
Fair value on the grant date | R$ | R$ 41.10 | |||
ILP 2019 - 36 H | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 7,500 | |||
Fair value on the grant date | R$ | R$ 42.19 | |||
ILP 2019 - 48 H | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 7,500 | |||
Fair value on the grant date | R$ | R$ 42.19 | |||
ILP 2019 - 24 Apr | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 20,000 | |||
Fair value on the grant date | R$ | R$ 42.81 | |||
ILP 2019 - 36 Ar | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 20,000 | |||
Fair value on the grant date | R$ | R$ 42.81 | |||
SAR 2019 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 792,565 | |||
Fair value on the grant date | R$ | R$ 42.81 | |||
PLUS 2019 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 15,572 | |||
Fair value on the grant date | R$ | R$ 42.81 | |||
ILP - Retention 2019 - 12 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 105,964 | |||
Fair value on the grant date | R$ | R$ 31.86 | |||
ILP - Retention 2019 - 24 | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 105,930 | |||
Fair value on the grant date | R$ | R$ 31.86 | |||
ILP 2019 - 24 Oct | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 7,800 | |||
Fair value on the grant date | R$ | R$ 31.75 | |||
ILP 2019 - 36 Oct | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 19,500 | |||
Fair value on the grant date | R$ | R$ 31.75 | |||
ILP 2019 - 48 Oct | ||||
SHARE-BASED COMPENSATION PLAN | ||||
No. of options granted | EquityInstruments | 11,700 | |||
Fair value on the grant date | R$ | R$ 31.75 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLAN - Common stock option plan (Details) | 12 Months Ended |
Dec. 31, 2019EquityInstrumentsR$ / shares | |
Common stock option plan | |
SHARE-BASED COMPENSATION PLAN | |
Lock up period | 36 months |
Restricted Stock | |
SHARE-BASED COMPENSATION PLAN | |
Price on grant date | R$ / shares | R$ 39.10 |
Shares Granted | EquityInstruments | 130,435 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLAN - Measurement assumptions (Details) | 12 Months Ended |
Dec. 31, 2019item | |
SHARE-BASED COMPENSATION PLAN | |
Number of observations of returns | 745 |
PSO | Minimum | |
SHARE-BASED COMPENSATION PLAN | |
Total shareholder return | 75.00% |
PSO | Maximum | |
SHARE-BASED COMPENSATION PLAN | |
Total shareholder return | 125.00% |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLAN - Amounts recognized in the financial Statements (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liabilities and equity | |||
Provision for phantom stock plan | R$ 136505 | R$ 124318 | |
Capital reserves | 6,416,864 | 674,221 | |
Income Statement | |||
Total general and administrative expenses from share-based transactions | (47,268) | (131,609) | R$ 33713 |
Stock options granted | |||
Liabilities and equity | |||
Capital reserves | 5,979 | ||
PSO | |||
Liabilities and equity | |||
Provision for phantom stock plan | 136,505 | 124,318 | |
Income Statement | |||
Total general and administrative expenses from share-based transactions | (46,389) | (126,439) | (32,192) |
Common stock option plan | |||
Income Statement | |||
Total general and administrative expenses from share-based transactions | (879) | (5,170) | R$ 1521 |
Common stock option plan | Stock options granted | |||
Liabilities and equity | |||
Capital reserves | R$ 5979 | R$ 5100 |
LIABILITIES FOR ASSETS ACQUIS_3
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Aug. 31, 2014 |
Liabilities for assets acquisitions | ||||
Assets acquisition | R$ 78345 | R$ 476482 | ||
Business combination transaction | 463,270 | 516,030 | ||
Liabilities for assets acquisitions and Business combination transaction | 541,615 | 992,512 | ||
Total current liabilities | 94,414 | 476,954 | ||
Total non-current liabilities | 447,201 | 515,558 | ||
VFFIP | ||||
Liabilities for assets acquisitions | ||||
Business combination transaction | 420,737 | 474,845 | ||
Consideration paid | R$ 528941 | |||
Cash transferred | R$ 44998 | |||
Facepa | ||||
Liabilities for assets acquisitions | ||||
Business combination transaction | 42,533 | 41,185 | ||
Consideration paid | R$ 307876 | |||
Cash transferred | R$ 267876 | |||
Lands and forests | Duratex | ||||
Liabilities for assets acquisitions | ||||
Assets acquisition | 385,397 | |||
Lands and forests | Real Estate Receivables Certificates | ||||
Liabilities for assets acquisitions | ||||
Assets acquisition | R$ 78345 | R$ 91085 |
LONG-TERM COMMITMENTS (Details)
LONG-TERM COMMITMENTS (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
LONG-TERM COMMITMENTS | ||
Total contractual obligation assumed | R$ 7335609 | R$ 11258885 |
SHAREHOLDERS' EQUITY - Share ca
SHAREHOLDERS' EQUITY - Share capital (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | |
Share Capital | |||
Issue of equity | R$ 3027528 | ||
Number of shares issued | 255,437,439 | ||
Par value per share | R$ 0 | ||
Share Capital | R$ 9235546 | R$ 6241753 | |
Number of shares outstanding | 1,361,263,584 | ||
Share issue related cost | R$ 18293 | ||
Percentage of common shares | 100.00% | ||
Maximum authorized increase in number of common shares | 780,119,712 | ||
Share Capital | |||
Share Capital | |||
Issue of equity | R$ 3027528 | ||
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$ 39.68 | R$ 38.08 | |
Controlling Shareholders | |||
Share Capital | |||
Number of shares outstanding | 624,100,609 | ||
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 | 194,800,797 | ||
Percentage of common shares | 14.31% | ||
Management | |||
Share Capital | |||
Number of shares outstanding | 35,532,742 | ||
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 | |||
Share Capital | |||
Number of shares outstanding | 75,180,059 | ||
Percentage of common shares | 5.52% | ||
Other shareholders | |||
Share Capital | |||
Number of shares outstanding | 499,723,487 | ||
Percentage of common shares | 36.71% |
SHAREHOLDERS' EQUITY - Dividend
SHAREHOLDERS' EQUITY - Dividends (Details) - BRL (R$) R$ in Thousands | Apr. 18, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
SHAREHOLDERS' EQUITY | ||||
Minimum mandatory dividend, as a percentage of adjusted net income | 25.00% | |||
Minimum mandatory dividend, as a percentage of consolidated operating cash generation | 10.00% | |||
Dividends recognised as distributions to owners of parent | R$ 600000 | R$ 29976 | ||
Dividends paid from reserves | 596,534 | R$ 596534 | ||
Dividends distributed | R$ 0 | 3,466 | ||
Minimum mandatory dividends - 25% | R$ 3466 | R$ 3466 | R$ 180280 |
SHAREHOLDERS' EQUITY - Reserves
SHAREHOLDERS' EQUITY - Reserves (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Legal Reserve | |
SHAREHOLDERS' EQUITY | |
Percentage of remaining balance of net income | 5.00% |
Percentage of limited balance of share capital | 20.00% |
Percentage of limited legal reserve plus capital reserve of share capital | 30.00% |
Reserve absorbed related to loss | R$ 105671 |
Share capital corresponding to reserve absorbed related to loss | 5.00% |
Reserve for capital increase | |
SHAREHOLDERS' EQUITY | |
Percentage of remaining balance of net income | 90.00% |
Percentage of limited balance of share capital | 80.00% |
Reserve absorbed related to loss | R$ 1730629 |
Special statutory reserve | |
SHAREHOLDERS' EQUITY | |
Percentage of remaining balance of net income | 10.00% |
Percentage of limited balance of share capital | 20.00% |
Reserve absorbed related to loss | R$ 242612 |
Tax incentives | |
SHAREHOLDERS' EQUITY | |
Reserve absorbed related to loss | R$ 684563 |
SHAREHOLDERS' EQUITY - Capital
SHAREHOLDERS' EQUITY - Capital reserve (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital | ||
Capital reserves | R$ 6416864 | R$ 674221 |
Stock options granted | ||
Share Capital | ||
Capital reserves | 5,979 | |
Other reserves | ||
Share Capital | ||
Capital reserves | R$ 6410885 | |
Capital reserve as a percentage of share capital | 69.00% |
SHAREHOLDERS' EQUITY - Other re
SHAREHOLDERS' EQUITY - Other reserves (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other comprehensive income | |||
Balances, beginning of year | R$ 12025935 | R$ 11616611 | R$ 10124989 |
Gain (loss) on conversion of financial statements and on foreign investments | 45,819 | 137,546 | 38,006 |
Balances, end of year | 18,087,969 | 12,025,935 | 11,616,611 |
Other reserves | |||
Other comprehensive income | |||
Balances, beginning of year | 2,321,708 | 2,298,328 | |
Actuarial gain (loss) | (95,283) | (45,741) | |
Gain (loss) on conversion of financial statements and on foreign investments | 47,834 | 137,546 | |
Realization of deemed cost, net of taxes | (52,918) | (68,424) | |
Balances, end of year | 2,221,342 | 2,321,708 | 2,298,328 |
Debenture conversion 5th issue | |||
Other comprehensive income | |||
Balances, beginning of year | (45,745) | (45,745) | |
Actuarial gain (loss) | 0 | 0 | |
Gain (loss) on conversion of financial statements and on foreign investments | 0 | 0 | |
Realization of deemed cost, net of taxes | 0 | 0 | |
Balances, end of year | (45,745) | (45,745) | (45,745) |
Actuarial gain (loss) | |||
Other comprehensive income | |||
Balances, beginning of year | (98,490) | (52,749) | |
Actuarial gain (loss) | (95,283) | (45,741) | |
Gain (loss) on conversion of financial statements and on foreign investments | 0 | 0 | |
Realization of deemed cost, net of taxes | 0 | 0 | |
Balances, end of year | (193,773) | (98,490) | (52,749) |
Exchange variation on conversion of financial statements of foreign subsidiaries | |||
Other comprehensive income | |||
Balances, beginning of year | 164,168 | 26,622 | |
Actuarial gain (loss) | 0 | 0 | |
Gain (loss) on conversion of financial statements and on foreign investments | 47,834 | 137,546 | |
Realization of deemed cost, net of taxes | 0 | 0 | |
Balances, end of year | 212,002 | 164,168 | 26,622 |
Deemed Cost | |||
Other comprehensive income | |||
Balances, beginning of year | 2,301,776 | 2,370,200 | |
Actuarial gain (loss) | 0 | 0 | |
Gain (loss) on conversion of financial statements and on foreign investments | 0 | 0 | |
Realization of deemed cost, net of taxes | (52,918) | (68,424) | |
Balances, end of year | R$ 2248858 | R$ 2301776 | R$ 2370200 |
SHAREHOLDERS' EQUITY - Treasury
SHAREHOLDERS' EQUITY - Treasury shares (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
SHAREHOLDERS' EQUITY | |||
Quantity | 12,042,044 | 12,042,044 | 13,842,004 |
Average cost per share | R$ 18.13 | R$ 18.13 | R$ 17.42 |
Historical value | R$ 218265 | R$ 218265 | R$ 241088 |
Market value | R$ 458560 | R$ 477827 | R$ 258797 |
Quantity, Sale | (1,800,000) | ||
Average cost per share, Sale | R$ 12.68 | ||
Historical value, Sale | R$ 22823 | ||
Market value, Sale | R$ 66636 |
SHAREHOLDERS' EQUITY - Result a
SHAREHOLDERS' EQUITY - Result absorption (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SHAREHOLDERS' EQUITY | ||
Result absorption | R$ 2816393 | R$ 318339 |
Reserve balances | 317,144 | 3,080,619 |
Realization of deemed cost, net of taxes | ||
SHAREHOLDERS' EQUITY | ||
Result absorption | (52,918) | (68,424) |
Tax incentives | ||
SHAREHOLDERS' EQUITY | ||
Result absorption | R$ 684563 | 288,557 |
Reserve balances | 684,563 | |
Special statutory reserve | ||
SHAREHOLDERS' EQUITY | ||
Percentage of limited balance of share capital | 20.00% | |
Result absorption | R$ 242612 | 7,882 |
Reserve balances | 242,612 | |
Legal Reserve | ||
SHAREHOLDERS' EQUITY | ||
Percentage of limited balance of share capital | 20.00% | |
Result absorption | R$ 105671 | 15,917 |
Reserve balances | R$ 317144 | 422,815 |
Reserve for capital increase | ||
SHAREHOLDERS' EQUITY | ||
Percentage of limited balance of share capital | 80.00% | |
Result absorption | R$ 1730629 | 70,940 |
Reserve balances | 1,730,629 | |
Minimum mandatory dividends | ||
SHAREHOLDERS' EQUITY | ||
Result absorption | R$ 3466 |
EARNINGS (LOSS) PER SHARE - Bas
EARNINGS (LOSS) PER SHARE - Basic earnings (losses) per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share | |||
Result of the year attributed to the controlling shareholders | R$ 2817518 | R$ 319693 | R$ 1820994 |
Weighted average number of shares in the year | 1,361,264 | 1,105,826 | 1,106,297 |
Weighted average treasury shares | (12,042) | (12,333) | (14,597) |
Weighted average number of outstanding shares | 1,349,222 | 1,093,493 | 1,091,700 |
Basic loss per common share - RS | R$ 2.08825 | R$ 0.29236 | R$ 1.66804 |
EARNINGS (LOSS) PER SHARE - Dil
EARNINGS (LOSS) PER SHARE - Diluted earnings (losses) per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Diluted earnings per share | |||
Result of the year attributed to the controlling shareholders | R$ 2817518 | R$ 319693 | R$ 1820994 |
Weighted average number of shares in the year (except treasury shares) | 1,349,222 | 1,093,493 | 1,091,700 |
Adjustment by stock options | 1,386 | 2,428 | |
Weighted average number of shares (diluted) | 1,349,222 | 1,094,879 | 1,094,128 |
Diluted loss per common share - R$ | R$ 2.08825 | R$ 0.29199 | R$ 1.66433 |
NET FINANCIAL RESULT (Details)
NET FINANCIAL RESULT (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NET FINANCIAL RESULT | |||
Interest on loans, financing and debentures | R$ 3358806 | R$ 1033485 | R$ 988382 |
Amortization of fundraising costs | (220,642) | (44,499) | (49,517) |
Other financial expenses | (600,948) | (422,390) | (180,577) |
Amortization of fair value adjustment on business combination with Fibria | 1,548 | ||
Financial expenses | (4,178,848) | (1,500,374) | (1,218,476) |
Marketable securities | 392,018 | 442,378 | 285,888 |
Other financial income | 63,816 | 17,329 | 19,890 |
Amortization of fair value adjustment on business combination with Fibria | 37,412 | ||
Financial income | 493,246 | 459,707 | 305,778 |
Income | 2,711,394 | 588,049 | 332,961 |
Expenses | (3,786,646) | (3,323,245) | (259,690) |
Income from derivative financial instruments | (1,075,252) | (2,735,196) | 73,271 |
Exchange rate variation on loans, financing and debentures | (1,764,035) | (1,311,061) | (163,418) |
Monetary and exchange variations - other assets and liabilities | (200,892) | 244,411 | (15,995) |
Monetary and exchange rate variation, net | (1,964,927) | (1,066,650) | (179,413) |
Financial result, net | (6,725,781) | (4,842,513) | R$ 1018840 |
Capitalized interest costs on loans, financing and debentures | 4,213 | 1,772 | |
Interest expense from FIDC | R$ 770 | R$ 2268 |
NET SALES - Reconciliation (Det
NET SALES - Reconciliation (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NET SALES | |||
Gross sales | R$ 31395955 | R$ 14802821 | R$ 11752459 |
Adjustment to present value | (5,316) | (4,984) | |
Returns and cancelations | (109,641) | (75,477) | (50,199) |
Discounts and rebates | (3,835,140) | (15,695) | (6,589) |
Deductions | 27,445,858 | 14,706,665 | 11,695,671 |
Taxes on sales | (1,432,908) | (1,263,289) | (1,114,998) |
Net sales | R$ 26012950 | R$ 13443376 | R$ 10580673 |
Percentage of gross revenue from domestic sales related to the social contribution paid | 2.50% |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating segment results (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating segments | |||
NET SALES | R$ 26012950 | R$ 13443376 | R$ 10580673 |
Cost of sales | (20,743,482) | (6,922,331) | (6,496,304) |
Gross profit | R$ 5269468 | R$ 6521045 | R$ 4084369 |
Gross margin (%) | 20.30% | 48.50% | 38.60% |
Operating income (expenses) | R$ 2640890 | R$ 1513234 | R$ 805917 |
Selling | (1,905,279) | (598,726) | (423,325) |
General and administrative | (1,173,358) | (825,209) | (528,974) |
Other operating, net | 405,754 | (96,875) | 140,510 |
Income from associates and joint ventures | 31,993 | 7,576 | 5,872 |
Operating profit before net financial income ("EBIT") | R$ 2628578 | R$ 5007811 | R$ 3278452 |
Operating margin (%) | 10.10% | 37.30% | 31.00% |
Financial result, net | R$ 6725781 | R$ 4842513 | R$ 1018840 |
Net Income (loss) before income taxes | (4,097,203) | 165,298 | 2,259,612 |
Income taxes | 1,282,461 | 154,516 | 438,618 |
Net income (loss) for the year | R$ 2814742 | R$ 319814 | R$ 1820994 |
Profit (loss) margin for the year (%) | (10.80%) | 2.50% | 17.20% |
Result of the year attributed to the controlling shareholders | R$ 2817518 | R$ 319693 | R$ 1820994 |
Result of the period attributed to non-controlling shareholders | 2,776 | 121 | |
Depreciation, depletion and amortization | 8,091,931 | 1,563,223 | 1,402,778 |
Domestic | |||
Operating segments | |||
NET SALES | 5,314,215 | 4,051,640 | 3,222,158 |
Foreign | |||
Operating segments | |||
NET SALES | 20,698,735 | 9,391,736 | 7,358,515 |
Asia | |||
Operating segments | |||
NET SALES | 9,742,681 | 3,939,693 | 3,009,454 |
Europe | |||
Operating segments | |||
NET SALES | 6,172,529 | 3,036,010 | 2,401,734 |
North America | |||
Operating segments | |||
NET SALES | 3,975,191 | 1,551,738 | 1,221,760 |
South and Central America | |||
Operating segments | |||
NET SALES | 754,642 | 823,634 | 699,164 |
Africa | |||
Operating segments | |||
NET SALES | 53,692 | 40,661 | 26,403 |
Pulp | |||
Operating segments | |||
NET SALES | 21,027,686 | 8,783,274 | 6,920,494 |
Cost of sales | (17,440,018) | (3,965,912) | (3,937,036) |
Gross profit | R$ 3587668 | R$ 4817362 | R$ 2983458 |
Gross margin (%) | 17.10% | 54.80% | 43.10% |
Operating income (expenses) | R$ 2089286 | R$ 626887 | R$ 104985 |
Selling | (1,503,775) | (212,869) | (163,879) |
General and administrative | (806,774) | (275,859) | (185,141) |
Other operating, net | 209,577 | (138,159) | 244,035 |
Income from associates and joint ventures | 11,686 | ||
Operating profit before net financial income ("EBIT") | R$ 1498382 | R$ 4190475 | R$ 2878473 |
Operating margin (%) | 7.10% | 47.70% | 41.60% |
Net Income (loss) before income taxes | R$ 1498382 | R$ 4190475 | R$ 2878473 |
Net income (loss) for the year | R$ 1498382 | R$ 4190475 | R$ 2878473 |
Profit (loss) margin for the year (%) | 7.10% | 47.70% | 41.60% |
Result of the year attributed to the controlling shareholders | R$ 1498382 | R$ 4190475 | R$ 2878473 |
Depreciation, depletion and amortization | 7,575,630 | 1,105,381 | 1,007,280 |
Pulp | Domestic | |||
Operating segments | |||
NET SALES | 1,833,936 | 744,566 | 624,320 |
Pulp | Foreign | |||
Operating segments | |||
NET SALES | 19,193,750 | 8,038,708 | 6,296,174 |
Pulp | Asia | |||
Operating segments | |||
NET SALES | 9,605,799 | 3,837,998 | 2,976,504 |
Pulp | Europe | |||
Operating segments | |||
NET SALES | 5,950,832 | 2,810,899 | 2,262,162 |
Pulp | North America | |||
Operating segments | |||
NET SALES | 3,592,563 | 1,340,907 | 966,789 |
Pulp | South and Central America | |||
Operating segments | |||
NET SALES | 44,556 | 48,904 | 90,719 |
Paper | |||
Operating segments | |||
NET SALES | 4,985,264 | 4,660,102 | 3,660,179 |
Cost of sales | (3,303,464) | (2,956,419) | (2,559,268) |
Gross profit | R$ 1681800 | R$ 1703683 | R$ 1100911 |
Gross margin (%) | 33.70% | 36.60% | 30.10% |
Operating income (expenses) | R$ 679719 | R$ 886347 | R$ 749449 |
Selling | (401,504) | (385,857) | (259,446) |
General and administrative | (366,584) | (549,350) | (343,833) |
Other operating, net | 68,062 | 41,284 | (152,042) |
Income from associates and joint ventures | 20,307 | 7,576 | 5,872 |
Operating profit before net financial income ("EBIT") | R$ 1002081 | R$ 817336 | R$ 351462 |
Operating margin (%) | 20.10% | 17.50% | 9.60% |
Net Income (loss) before income taxes | R$ 1002081 | R$ 817336 | R$ 351462 |
Net income (loss) for the year | R$ 1002081 | R$ 817336 | R$ 351462 |
Profit (loss) margin for the year (%) | 20.10% | 17.50% | 9.60% |
Result of the year attributed to the controlling shareholders | R$ 1002081 | R$ 817336 | R$ 351462 |
Depreciation, depletion and amortization | 516,301 | 457,842 | 395,498 |
Paper | Domestic | |||
Operating segments | |||
NET SALES | 3,480,279 | 3,307,074 | 2,597,838 |
Paper | Foreign | |||
Operating segments | |||
NET SALES | 1,504,985 | 1,353,028 | 1,062,341 |
Paper | Asia | |||
Operating segments | |||
NET SALES | 136,882 | 101,695 | 32,950 |
Paper | Europe | |||
Operating segments | |||
NET SALES | 221,697 | 225,111 | 139,572 |
Paper | North America | |||
Operating segments | |||
NET SALES | 382,628 | 210,831 | 254,971 |
Paper | South and Central America | |||
Operating segments | |||
NET SALES | 710,086 | 774,730 | 608,445 |
Paper | Africa | |||
Operating segments | |||
NET SALES | 53,692 | 40,661 | 26,403 |
Not segmented | |||
Operating segments | |||
Operating income (expenses) | 128,115 | 48,517 | |
Other operating, net | 128,115 | 48,517 | |
Operating profit before net financial income ("EBIT") | 128,115 | 48,517 | |
Financial result, net | (6,725,781) | (4,842,513) | (1,018,840) |
Net Income (loss) before income taxes | (6,597,666) | (4,842,513) | (970,323) |
Income taxes | 1,282,461 | 154,516 | 438,618 |
Net income (loss) for the year | (5,315,205) | (4,687,997) | (1,408,941) |
Result of the year attributed to the controlling shareholders | (5,317,981) | (4,688,118) | R$ 1408941 |
Result of the period attributed to non-controlling shareholders | R$ 2776 | R$ 121 |
SEGMENT INFORMATION - Net sales
SEGMENT INFORMATION - Net sales by product (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales by products | |||
NET SALES | R$ 26012950 | R$ 13443376 | R$ 10580673 |
Market pulp | |||
Net sales by products | |||
NET SALES | R$ 21027686 | R$ 8783274 | R$ 6920494 |
Fluff pulp | |||
Net sales by products | |||
Percentage of total net sales | 1.00% | 1.00% | 1.00% |
Printing and writing paper | |||
Net sales by products | |||
NET SALES | R$ 4100502 | R$ 3834380 | R$ 2265093 |
Tissue | |||
Net sales by products | |||
Percentage of total net sales | 2.00% | 2.00% | 2.00% |
Paperboard | |||
Net sales by products | |||
NET SALES | R$ 823360 | R$ 764701 | R$ 1273540 |
Others | |||
Net sales by products | |||
NET SALES | R$ 61402 | R$ 61021 | R$ 121546 |
SEGMENT INFORMATION - Goodwill
SEGMENT INFORMATION - Goodwill based on expected future profitability (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of products and services [line items] | ||
Goodwill Based On Expected Future Profitability | R$ 8061818 | R$ 158334 |
Pulp | ||
Disclosure of products and services [line items] | ||
Goodwill Based On Expected Future Profitability | 7,942,486 | 45,752 |
Consumer Goods | ||
Disclosure of products and services [line items] | ||
Goodwill Based On Expected Future Profitability | R$ 119332 | R$ 112582 |
EXPENSES BY NATURE (Details)
EXPENSES BY NATURE (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of sales | |||
Personnel expenses | R$ 1374331 | R$ 649741 | R$ 546090 |
Variable cost | (10,067,716) | (3,197,895) | (2,994,349) |
Logistics cost | (2,776,021) | (1,044,899) | (963,379) |
Depreciation, depletion and amortization | (4,290,308) | (1,523,935) | (1,367,856) |
Amortization of fair value adjustment on business combination with Fibria and Facepa | (2,844,741) | ||
Other | 609,635 | (505,861) | (624,630) |
Cost of sales | (20,743,482) | (6,922,331) | (6,496,304) |
Selling expenses | |||
Personnel expenses | (215,640) | (145,844) | (106,083) |
Services | (85,161) | (78,227) | (45,593) |
Logistics cost | (618,089) | (297,129) | (220,944) |
Depreciation and amortization | (84,018) | (4,471) | (3,547) |
Amortization of fair value adjustment on business combination with Fibria | (820,730) | ||
Other | (81,641) | (73,055) | (47,158) |
Selling expenses | (1,905,279) | (598,726) | (423,325) |
General and Administrative expenses | |||
Personnel expenses | (642,543) | (469,661) | (309,019) |
Services | (323,841) | (235,544) | (105,522) |
Depreciation and amortization | (52,830) | (34,817) | (31,375) |
Amortization of fair value adjustment on business combination with Fibria | 26,609 | ||
Other | (180,753) | (85,187) | (83,058) |
Administrative expenses | (1,173,358) | (825,209) | (528,974) |
Other operating (expenses) income net | |||
Rents and leases | 5,805 | ||
Result from sale of other products, net | 15,229 | 8,785 | 4,765 |
Result from sale and disposal of property, plant and equipment and biological assets, net | (63,454) | 4,523 | 4,700 |
Result on fair value adjustment of biological assets | 185,399 | (129,187) | 192,504 |
Partial write-off of intangible assets | (107,269) | (18,845) | |
Provision for loss and write-off of property, plant and equipment and biological assets | (18,103) | (66,707) | |
Amortization of intangible assets | (8,193) | (9,947) | (8,303) |
Tax recovery | 128,115 | 335 | 5,613 |
Receipt of royalties | 2,603 | ||
Judicial agreements | 20,231 | ||
Land conflict agreement | (11,779) | ||
Insurance reimbursement | 7,917 | ||
Trade agreement credits | 87,000 | 51,846 | 10,671 |
Provision for loss of judicial deposits | (3,284) | ||
Amortization of fair value adjustment on business combination with Fibria, Facepa and Ibema | (12,143) | ||
Tax credits - gains in tax lawsuit (ICMS from the PIS/COFINS calculation basis) (6) | 128,115 | 335 | 5,613 |
Other operating income (expenses), net | 63,363 | (5,127) | 5,057 |
Other operating (expenses) income net | 405,754 | (96,875) | R$ 140510 |
Cost of idle capacity and maintenance downtime | 615,394 | ||
Other operating expense attributable to depletion of wood | R$ 5598 | R$ 9869 |
INSURANCE COVERAGE (Details)
INSURANCE COVERAGE (Details) - Dec. 31, 2019 R$ in Thousands, $ in Thousands | USD ($) | BRL (R$) |
INSURANCE COVERAGE | ||
Maximum indemnity limit for material assets | R$ 8822000 | |
General civil liability, insured amount | $ 20,000,000 | R$ 80614000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Feb. 14, 2020USD ($) | Feb. 28, 2020USD ($) | Feb. 14, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Jun. 14, 2019BRL (R$) | Feb. 25, 2019BRL (R$) | Feb. 07, 2018 |
Export prepayment ("PPE") | |||||||
Events subsequent to the reporting date | |||||||
Notional value | R$ | R$ 578400000 | R$ 738800.000 | |||||
Interest rate | 7.70% | 8.35% | |||||
Export prepayment ("PPE") | Suzano Pulp and Paper Europe S.A | |||||||
Events subsequent to the reporting date | |||||||
Notional value | R$ | R$ 3023025000 | ||||||
Export prepayment ("PPE") | LIBOR | Suzano Pulp and Paper Europe S.A | |||||||
Events subsequent to the reporting date | |||||||
Basis spread (as a percent) | 1.15% | ||||||
Export Prepayment Agreements ("EPP") | Export prepayment ("PPE") | Suzano Pulp And Paper Europe S.A, Suzano Austria Gmbh, Fibria Overseas Finance Ltd. | |||||||
Events subsequent to the reporting date | |||||||
Notional value | $ 850,000 | R$ 3426095000 | |||||
Debt instrument term | 6 years | ||||||
Export Prepayment Agreements ("EPP") | Export prepayment ("PPE") | Suzano Pulp and Paper Europe S.A | |||||||
Events subsequent to the reporting date | |||||||
Repayments of borrowings | $ | $ 750,000 | ||||||
Make-whole bonds 2021 | 2021 Notes | Suzano Trading Ltd. | |||||||
Events subsequent to the reporting date | |||||||
Notional value | $ | $ 189,630 | ||||||
Interest rate | 5.875% |