RESULTS 1Q09

Highlightsg g

Net Operating Revenue (NOR) in the 1Q09 reached R$ 118.7 million, practically the

same value reported in the same period of 2008

Gross Income of R$ 38.1 million and Gross Margin of 32.1%

EBITDA of R$ 32.9 million in this quarter, corresponds to an EBITDA Margin of 27.7%

(2.4 p.p. lower than in the 1Q08)

CAPEX totaled R$ 66.6 million in the 1Q09, according to the ongoing strategic investment

planp

New MDP Plant in Taquari (RS) – Currently in the final phase of the electrical and

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mechanical assembly stage, remains on schedule for startup by mid-2009.

Our Business

Products

MDPParticles from timber or recycled wood set in3 layers glued together with synthetic thermosetresin

Higher mechanic resistance

Lower production cost

Ideal for straight line parts and flat surfaces

Fiber from timber or “premium” recycled wood gluedtogether with synthetic thermoset resin

MDF

g y

Uniform distribution of fiber

Ideal for machined parts in bass-relief and roundedgesedges

Flooring, window and door frames in construction

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Launches

MDP and MDF with BP coating5 lines with 9 new patterns

MDP and MDF with BP coatingAnti-microbial action Longer lasting furnitureEasier to be cleaned

MDPResistant to humidityResistant to termites5-year guarantee

Ready-made parts FF highly similar to woodGood cost-benefit relationship

BP: Panel coated with cellulose sheets impregnated with melamine resin offering high resistance to abrasion and chemical products

FF: Panel coated with finish foil cellulose sheets, specially treated with varnish, offering different levels of shine 5

Forests

Total Forest Area of 86 6 thousand haTotal Forest Area of 86.6 thousand ha(17.9 thousand ha RS and 68.7 thousandha MG)

Wood supply at competitive pricesthrough own forests and long-termcontractscontracts

Low freight cost with forests located nearfactories (50 km RS and 130 Km MG)factories (50 km – RS and 130 Km – MG)

Planted Eucalyptus from selected clones match Genotypes to Environment

Increase in the productivity of forests through research with emphasis in the geneticimprovement and mineral nutrition

Professional and integrated forestry operations

Forestry operations certified by the Forest Stewardship Council (FSC) 6

Industrial Plants

Total Capacity: 1 150 thousand m³/yearUberaba

Total Capacity: 1,150 thousand m /year800 thousand m³/year of PB350 thousand m³/year of MDF

E f l h i fi d tEconomy of scale sharing fixed cost

Flexibility in the production and coating lines

New Low-Pressure Coating Line alreadyoperating

Self-sufficient in wood supply

TaquariTaquariContinuous Line capacity of 700 thousand m³/year

Startup forecast for mid this year

L t d i t diti l f t iLocated in a traditional forestry region

Supply from forests complemented by recycledwood

100km distant from the main furniture production

center in Brazil7

Brazilian Panel Market

MDP Total (‘000 m³)MDP‐19.3%

36 2% 36 7%36.2%

63.3%63.8%

36.7%

646 522

MDF1Q08 1Q09

Total (‘000 m³)

1Q08 1Q09

‐2.5%

34.7% 42.2%

65.3% 57.8% 476 464

Source: ABIPA

1Q091Q08

8

1Q08 1Q09

Coated Non Coated

Results 1Q09

Results

PANEL 1Q09 1Q08 % 4Q08 %Total Panels Production (m³) 173,441 180,919 (4.1) 251,652 (31.1) Panel Sales - Total (m³) 172,262 178,688 (3.6) 207,552 (17.0)

NON - COATED PANEL 83,287 92,731 (10.2) 124,680 (33.2)

/1

/2 /2

COATED PANEL 81,472 81,224 0.3 74,531 9.3 Unit Net Operating Revenue (R$/m³) 640 633 1.2 636 0.7

NON - COATED PANEL 543 552 (1.6) 566 (4.1) COATED PANEL 714 688 3.8 719 (0.6) /1 Considers Non Coated and Coated Panel, Ready-made parts and Strips

/1

Panel Sales – Total (m³)

/2 Considers PB + MDF

‐3.6%

183179 179 172198 208

10Note: Some differences may appear due to rounding

1Q08 2Q08 3Q08 4Q08 1Q08 1Q09

Results

N t O ti R NOR (R$ illi )Net Operating Revenue - NOR (R$ million)‐1.8%

121 126 121 119133 140

1Q08 2Q08 3Q08 4Q08 1Q08 1Q09

Cost of Goods Sold - COGS (R$ million)

68%

+ 9.0%

67%

( )

58%

74 73 74 81

62%61%

82 94

61%

Non recurrent expenses of R$ 2.3

million

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1Q08 2Q08 3Q08 4Q08 1Q08 1Q09million

% of COGS in relation to NOR Note: Some differences may appear due to rounding

Results

Coated Panel 1Q09Non Coated Panel – 1Q09

Cost Structure – Uberaba Plant (PB)

Coated Panel ‐ 1Q09Non Coated Panel – 1Q09

4% 11%

Work Force

Others 8% 12%

Work Force

Others

69% Raw Material

8%

7%

Energy

Freight

65% Raw Material

12%

6% 9%

Energy

Freight

Coated Panel – 4Q08Non Coated Panel – 4Q08

Freight

Coated Panel – 4Q08Non Coated Panel – 4Q08

8% 8%

Work Force

Others3% 6% 6%

Work ForceOthers

Energy

70% Raw Material

5%

10%

Energy

Freight76%

Raw Material

6% 9% Freight

12Note: Depreciation, amortization and depletion not included

Results

Price Evolution - Base 100 = Jan/07

Urea – Formaldehyd Resin (R$)

140

120

140

80

100

60

13

Results

EBITDA (R$ illi )

34%

‐9.6%

EBITDA (R$ million)

36

31% 32%30%

42 41 44 36 33

30%28%

Non recurrent f

1Q08 2Q08 3Q08 4Q08

36 33

1Q08 1Q09

expenses of R$ 3 million

EBITDA Margin

Net Result (R$ million)‐66.8%

1919 24 20 11

Non recurrent net expenses of R$ 6 million

1Q08 2Q08 3Q08 4Q08

196

1Q08 1Q09

19 24 20 11 (including derivative transactions liquidation)

Note: Some differences may appear due to rounding 14

Results

I d bt d (R$ illi )4 years and 3 months

Average Cost 1Q09Average Maturity

7 5% p a

Indebtedness (R$ million)

426.0

464.1

Average Cost 1Q09 7.5% p.a.

303.4

362 4 362.2362.4

248.6

362.2

1 2 1 2 1 2

63.654.8

260.5

Gross CashGross

C h

101.9 76.9

Gross

118.7

1 2 1 2 1 2

03/31/2008 12/31/2008 03/31/2009Debt Cash Debt Cash CashDebt

Note: Some differences may appear due to rounding 15

Results24,937%

I d b d B C f464.1

Indebtedness By Currency as of 03/31/2009(R$ million)

11.7

9.7%

2.6%

45.1

Unhedged Financing in US$ and €

Debt nominated in foreign currency hedged in R$hedged in R$

407.387.7% Debt in R$

97.4%

In this quarter Satipel liquidated the last derivative transaction with strikes 16

Results

Depreciation Depletion and Amortization

336,815

Depreciation, Depletion and Amortization1Q09 R$ 14.5 million CAPEX (R$ thousand)

33,877

57,162

127,181 11,503 150,000171,205

75,588 15,000

35,785

24,000 6,806

,503

30,000

,

66,639

48,328

118,595

81,000 52,483

6,118 1,232

,

2007 2008 2009 (E) 1Q09

Forestry Maintenance and Expansion Industrial Maintenance Industrial Expansion ‐Uberaba Industrial Expansion ‐Taquari

(E) – Estimated Note: Capex net of taxes 17

Sustainabilityy

Sustainabilityy

Wood supply exclusively originated from planted forests, with certified forestry operations in

accordance to the FSC – Forestry Stewardship Council principles and criteria, in

di ti ith th d ti t d t k t th Ub b (MG) i d t i l itcoordination with the production custody network at the Uberaba (MG) industrial site

Recycling wood scraps in the productive processes through the use of wood by-products

from other industries of the sectorfrom other industries of the sector

Adding value to planted forests: (1) Wood products – for panels, sawmills and energy and

(2) non wood products Pinus resin carbon arrest and production of honey(2) non-wood products – Pinus resin, carbon arrest and production of honey

Environmental management programs focused on native flora and fauna conservation, on

monitoring hydrological basins and recovery of decayed ecosystemsmonitoring hydrological basins and recovery of decayed ecosystems

Relations with the Community and Social Programs: Partnership with Government, Schools

and Community Centers focused on technical education employability digital inclusion andand Community Centers focused on technical education, employability, digital inclusion and

alternative means of generating income

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Current Moment

Current Moment

TAQUARI (RS)Investment in the new 700,000 m³/year MDP factory ready for production by mid 2009Old li li d i i d i F b 2009 d i b 120 th k fOld cyclic line decommissioned in February 2009 reducing by 120 the work force

UBERABA (MG)N i i f ili b i bl dNew impregnation facility being assembledNew coating line in operationAnnual preventive maintenance of the MDP line done in MarchRepairs and tests performed at the MDF refinerWork force reduced by 40

New state-of-the-art lines and large scale guarantee product g g pcomplementariness and competitiveness to Satipel

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Disclaimer

The forward-looking statements contained herein related to the future ofSatipel business, its estimated operating and financial results and itsgrowth prospects are merely projections, and as such are basedexclusively on management's expectationsexclusively on management s expectations.

These expectations in turn depend substantially on changes in marketconditions and the performance of the Brazilian economy, the sector andthe international markets, and are therefore subject to change without priornotice.

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Contacts

Flavio Marassi DonatelliCFO and Investor Relations Officer

Charles E. AllenI t R l ti S i t d tInvestor Relations Superintendent

Tel: (11) 3646 4760Fax: (11) 3646-4761

ri@satipel com brri@satipel.com.brwww.satipel.com.br/ri

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