Highlights in 2018

(102-40 and 102-42)

The essence of our business comes from planted forests and our businesses are integrated: forestry, paper, corrugated containerboard packaging and resin.

We have 38,940 hectares of land, of which 72% are located in Santa Catarina and 28% in Rio Grande do Sul.

Pinus seedlings cultivated in Santa Catarina in our own nursery, destined to:

1st company in the Resin segment to certify the forest management and chain of custody by FSC® and the 1st company in Brazil to produce pitch and turpentine.

Highlights in 2018

Governance

Dissemination of the content of the Integrity Program and Code of Ethics organized in three waves, conducted by our leaders, covering all hierarchical levels.

Board of Executive Directors was responsible for communicating our strategic planning across all plants.

Creation of Innovation and Sustainability Committees.

Efficiency and Innovation

  • Conclusion of the first wave of the Projeto Simplifique (Simplify Project) to implement SAP S/4HANA technology as the main ERP, which involved:
    • + 120 people.
    • + 650 simulated scenarios.
    • + 10 mil steps tested.
    • + 5 thousand hours of face-to-face training.
  • R$ 12 thousand as result percentage payment for the ideas enrolled in the Programa Inova Ideias (Innovate Ideas Program).
  • Partnerships focused on open innovation for the development of solutions for our products and business.

Economic Performance

GRI 102-6

Net revenue of R$ 932.8 million (up 8.6% over 2017).

60% Corrugated Packaging

30% Paperboard Packaging

10% Forest RS and Resins

Adjusted EBITDA of R$ 178.3 million with Margin of  19.1% (up 15.4% than in 2017).

Sales.

18% Foreing Market

82% Domestic Market

Revenue management project presented a financial return in the order of R$ 7.3 million.

Challenged and valued People

59% of openings filled with internal recruitments.

Over R$ 32 million invested in benefits for employees.

Average 25 hours of training per employee.

94% of employees covered by the Supera Program, receiving periodic performance reviews.

Launch of Irani Corporate Education model with three thematic schools (Lidera, Itec and DNA), focused on topics relevant to our business.

Creation of organizational climate and occupational health and safety tree with indicators monitored by the Board of Executive Directors.

27 Kaizen weeks motivated our teams to evaluate and solve problems with quick results. Since 2010, we added 141 continuous improvement projects in our units.

Participation of more than 100 internal leaders in customer focus training.

Production Chain

883 reviews applied to the composition of the índice de desempenho de fornecedor – IDF (Supplier Performance Index) involving all purchasing groups.

R$ 129 million spending on purchases from suppliers in the surrounding communities.

Socio-Environmental Management

Updating of socio-environmental impacts studies in the communities surrounding the forestry and industrial operations of Irani in SC and RS.

We recovered 79% of the forest area burned in 2017, with conclusion in 2019.

We dedicated 334 hours to environmental education, mobilizing 1,853 people.

Investment of R$ 5.9 million in environmental initiatives, including awareness actions regarding the businesses interaction with natural resources.

Over 600 hours of volunteer work focusing on education, citizenship and the environment.

More than R$ 224 thousand in social investments.

More than 10 thousand seedlings donated to surrounding communities, including native species such as Araucaria, Imbuia and Butiá.

Creation of the Private Natural Heritage Reserve (RPPN) Profª Yara C. Nicoletti in the community of Campina da Alegria, in Vargem Bonita (SC), with 285 hectares.

Our circular economy initiatives have resulted in savings of over R$ 9 million in landfill waste disposal costs.