PowerPoint Presentation · Paper Market Growth Economic growth in emerging markets favors paper...

Presentation

2

Disclaimer

Certain statements in this presentation may constitute forward-looking statements. Such statements are

subject to known and unknown risks and uncertainties that could cause the Company’s actual results to

differ materially from those set forth in the forward-looking statements. These risks include changes in

customer demand for the Company’s products, changes in raw material costs, seasonal fluctuations in

customer orders, pricing actions by competitors, significant changes in the applicable rates of exchange of

the Brazilian real against the US dollar, and general changes in the economic environment in Brazil,

emerging markets or internationally.

4

Corporate Overview

Suzano is a forestry-based company, publicly traded, controlled by Suzano Holding. Suzano operates in the pulp and paper businesses.

Capital Structure (August/12)

Free Float Controlling

Group

Treasury

56%

1%

43%

2nd largest eucalyptus pulp producer in the

world

8th largest market pulp producer in the world

Pulp production costs: one of the lowest in

the world

Leader in the regional paper market

Certified plantations and products

Organic Growth in pulp

New businesses: biotechnology and wood

pellets for energy

Market cap: R$3.0 billion on 6/30/12

Forests

Miils

Ports

Railroad

Portocel

Vitória

Pecém Port

Itaqui Port

Mucuri

Santos

Limeira

Suzano

Rio Verde

Embu

“Norte e Sul”

Railroad

“Carajás”

Railroad

Piauí Maranhão

Transnordestina

5

Organizational Structure

The Business Units model provides performance and return assessments in each business independently.

Audit

Paper BU

BU: Business Units

SP: Service Providers

BD Commitees

SP Corporate Dev.

Board of Directors (BD)

9 members (4 independent)

CEO and Strategy

SP Operations

SP Finance and IR

SP Human Resources

Pulp BU Forestry BU

Sustainability

and Strategy

Management

6

Products and Diversified Markets

Suzano’s products portfolio is made of market pulp, paperboard, uncoated paper and coated paper.

Net Revenue 52% Exports / 48% Domestic Market

R$4.9 billion

Market Pulp 2nd eucalyptus market pulp producer

40%

Paper

60%

Printing and Writing

44%

Uncoated 1st in Brazil with 35% market share

36%

Coated 1st in Brazil with 32% market share

8%

Paperboard 2nd in Brazil with 26% market share

13%

Note: Figures of last 12 months ending on 6/30/2012.

Other paper represented 3% of net revenue on the period.

The market share data includes paper imports.

7

Timeline

Suzano has over 80 years of operation.

1924 a 1940 1950 1960 until 1990 2000 2024

7

1939

1955

1956

1960

1975

1982 2005

2004

2010

1992

2007

2008

1924

Consolidation as one of the

largest Brazilian Groups

Growth and diversification in the

pulp and paper businesses

Beginning of

operations in the

paper industry

First investment in

the pulp sector

Suzano 2024

Acquisition of

Suzano mill Beginning of paper

exports to Europe

Acquisition of Ripasa (50%)

Start up of the first

paper mill

Start up of Bahia Sul

Pioneerism in

eucalyptus plantation

Leon Feffer starts

paper trading

activities

Acquisition of

Indústrias de Papel

Rio Verde’s control

Launch of Report

Adoption of Bovespa’s Level I

corporate governance

standards and Professional

Management

Start up of Line 2

at Mucuri

Merger with

Bahia Sul

New Growth Cycle

Suzano Renewable

Energy

Acquisition of

FuturaGene,

PLC.

Acquisition of 50%

of Conpacel and

KSR.

8

Strategy – Suzano 2024

Forestry competency provides the foundation for growth of the pulp business and enables

new business opportunities in Biotechnology and Renewable Energy.

Operational

excellence

in paper

Renewable

Energy

(Wood pellets)

Organic

growth

in pulp

Biotechnology

Forestry

Competency

9

Organic Growth in Pulp

Suzano’s production capacity has increased by 130% in the last 6 years. The Company is prepared for a new growth cycle that will increase its capacity to 6.2 MM ton/year of pulp and paper by 2016.

784 915 1,080 1,100 1,100 1,100 1,100 1,290 1,290 1,290 1,290 1,290 1,290 456 570

640 820 1,650 1,750 1,750

1,920 1,920

3,420 3,420 3,420

4,920

1,240 1,485

1,720 1,920

2,750 2,850 2,850 3,210 3,210

4,710 4,710 4,710

6,210

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e

Piauí

Unit

Maranhão

Unit

Paper Market Pulp

Note: Investment decision on Piauí Project expected for 1H14.

Forestry Assets

Suzano’s forestry expertise, developed over years of consistent investments in R&D, allows the Company to expand its forestry assets to a new frontier: the northeast region of Brazil.

2012

Total area (k ha) 1 802

Total planted area (k ha) 2 436

Own planted area (k ha) 1 349

Forest Partnership Program (k ha) 87

Own Preserved Area (k ha) 1 310

Average Distance in Bahia (km) 73

Average Distance in São Paulo (km) 237

Base 06/3102012 1 Own and leased areas 2 Figures consider own, leased and third-parties areas

2011

Annual planting (k ha) 87

Planted seedlings / day (k) 356

Total: 188 k ha

Planted: 117 k ha

Total: 228 k ha

Planted:

131 k ha

Total: 385 k ha

Planted: 101 k ha

SP

BA, ES and MG

MA, PI and TO

SP

MG

BA

ES

TO

PI

MA

11 Note: Both own and leased land can suffer variation up to 5% quarter over quarter. The total amount

can differ due to rounding.

Forestry Competitiveness

Suzano’s innovation present in its DNA, responsible forest management and operational excellence enabled the leverage of competitiveness.

Investments in technology guarantee a highly

diversified genetic portfolio, which is suitable for

different regions

+ 14 thousand clones developed | 800 field trials | 4 thousand hectares

Genetic enhancement

Biotechnology

Forestry management

Sustainability

Operational excellence

Productivity + +

12

Evolution of Maranhão Forests

80’s 90’s 00’s 10’s

Forestry Technology

Nurseries with high technology standards guarantees production efficiency.

Suzano’a pioneering and innovation

enable the development of extensive

genetic base and improvement of

stewardship techniques

Highly qualified forestry technology team

(22 researchers: 2 PhDs and 6 Masters

Degrees)

Suzano/Futuragene technology center

Technology Center

Nurseries (85mm total seedling capacity)

Suzano

Seedling

capacity of

12mm

Limeira

Seedling

capacity of

8mm

Mucuri

Seedling

capacity of

20mm

Maranhão

Seedling

capacity of

15mm

Piauí

Seedling

capacity of

30mm

Brazil’s most

modern nursery

13

Forestry Competitiveness in Brazil

Brazil presents competitive advantages to support continuous increase of its global forestry standing.

14

40

22 20 18

15 12

6

Source: ABRAF, BRACELPA, Poyry, Adapted by STCP Consulting

Hardwood Productivity (m³/ha/year)

Brazil Australia South

Africa Portugal USA Finland Chile

Competitive Advantages

Availability of productive land

Excellent soil and climate conditions

Short harvesting cycle for planted forests

Opportunity to recovery degraded areas

Low establishments and maintenance costs

Pulp Productivity

5.5 admt1/ha/year

11 admt1/ha/year

Biotechnology

1980 2011

+100%

Source: Suzano

More wood / hectare

More pulp / m³

Superior quality

Smaller area

Decreasing costs / m³

1Admt: air dried metric ton

591 643 803 850

524 513 532 536

1,115 1,156 1,335 1,386

2009 2010 2011 LTM

61%

4%

16%

8% 11%

Leadership in printing & writing and white paperboard in South America

More than 90% integrated production (pulp + paper)

Fx hedge: approximately 65% of paper revenue in local currency

Lower price volatility in the domestic market

Paper merchants: KSR e SPP NEMO: largest in Latin America Stenfar: top 5 in Argentina

16 1 Last twelve months ending on 06/30/2012

1

Paper Assets Operational excellence in paper: revenue and products portfolio management, asset

optimization, and strengthening of distribution channels.

Sales Volume (k ton) Sales Destination – LTM1

Domestic Market Exports

Others

Europe North Am.

South/Central Am. Brazil

Paperboard 2nd in Brazil

26%

Paper

Printing & Writing

Coated 1st in Brazil

Uncoated 1st in Brazil

35%

32%

Suzano Market Share in the Domestic Market – LTM1

17

Focus in the Domestic Market Lower price volatility, better margins and important cash flow generator.

Paperboard

Market dominance in high value added

segments

Low level presence of imports

Growth of the consumer industry

Printing & Writing

Imports: high concentration of coated

Exchange rate’s effects

Fiscal control of Immune paper

operations

Pap

erb

oard

P

rin

tin

g &

Wri

tin

g

Average Net Price (base 100 in Jan/2010)

Average Net Price (base 100 in Jan/2010)

Note: Prices of domestic market in R$.

50

70

90

110

130

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12

112

50

70

90

110

130

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12

125

Paper Market Growth

Economic growth in emerging markets favors paper consumption.

1 Woodfree Printing & Writing paper I 2 Latin America excluding Brazil I 3 Paperboard + liquid packaging board

Source: RISI and Poyry (nov/2011)

Global

2011e Paper Demand (k ton)

2,936

Uncoated

Paperboard3

Coated

993 1.837

2.366 54.180

1,943 { 587

1,356

Printing &

Writing1

Brazil

4,969

1,793

821

2,355

Latin America2

3,176 { 2.366

128,601

46,948

27,473

54,180

{ 81,653

CAGR 2011e – 2016e Brazil Latin America2 Global

Paperboard3 +3.9% +3.5% +3.0%

Printing & Writing1 +3.8% +3.1% +1.0%

Coated +4.2% +3.2% +1.0%

Uncoated +3.6% +3.0% +1.1%

18

Paper Demand Growth Drivers

Historically there is a high correlation between GDP and paper consumption.

1 Excluding China and Japan

Source: 2010 paper consumption data from Poyry (nov/2011) and 2010 GDP per capita information from World Bank (sep/2011)

China

68 kg/ha/year

GDP per capita:

US$4 k

USA

233 kg/ha/year

GDP per capita: US$47 k

Índia

9 kg/ha/year


Brazil

47 kg/ha/year


19

North America

226 kg/ha/year

Latin America

44 kg/ha/year

Ásia1

19 kg/ha/year

Europe

Western: 185 kg/ha/year

Eastern: 47 kg/ha/year

317 304 285 294 257

145

450 525

486

632 570

304

2007 2008 2009 2010 2011 6M12

40% 44% 47% 57%

70% 69% 72% 66%

56% 60% 55% 56% 53%

42% 43%

54% 58% 54% 60% 61%

50% 52%

2.00 1.95 1.84 1.76 1.68 1.69 1.66 1.59 1.61 1.59 1.56 1.60 1.74

RECOPI1

20

1.77 1.79 1.84 1.79 1.72 1.79

Coated Paper

The share of coated paper imports is high as Brazilian production does not completely meet demand.

Measures adopted by the

Brazilian authorities to

reduce deviation use for

tax exempt paper and BRL

depreciation helped

decreasing imports market

share

Coated Paper Production and Demand (k ton)

Imports share in the Brazilian Market (%)

Production Demand

Licenses Penalties

Average

R$/US$

1 Brazilian Government Program to control tax exempt paper imports

Source: Bracelpa

1.86 1.98 2.05

Technical support in each international office:

China, Switzerland and USA

80% of total sales with long term contracts

More than 150 active clients

Strategic long-term partnerships with clients:

Logistics

Technology

Pre and post sale technical assistance

Strategic focus on high value added segments

22%

36%

30%

2%

10%

29%

38%

23%

7%

261 297 363 398

1,519 1,310 1,445 1,442

1,780 1,607

1,808 1,839

2009 2010 2011 LTM

22

3%

1

Pulp Assets

Sustainable and organic growth: presence in main international markets and strategic relationship with clients.

Sales Volume (k ton)

Printing &

Writing

Tissue

Special

Packaging

Sales per Segment – LTM1

Europe

Asia

North Am.

South/Central Am.

Brazil

Pulp Sales Destinations – LTM1

Domestic Market Exports

Others

1 Last twelve months ending on 06/30/2012

17

9

3

22

2012e

215

30

49

111

2012e

Pulp Organic Growth Fundamentals

Market pulp accounts for 14% of total fibers for paper production.

23 23

1 Bleached Eucalyptus Kraft Pulp | 2 Bleached Hardwood Kraft Pulp | 3 Bleached Softwood Kraft Pulp | 4 Chemical Market Pulp

Source: Poyry (nov/2011) and PPPC (may/12)

Mill

ion t

on

Printing &

Writing

Tissue

Paperboard

Corrugated

Newsprint

Others

405

Production (MM ton)

Minerals

51%

49%

72%

28%

8%

8%

131

52

Virgin fiber

Recycled

190

183

Global

production of

paper

Total fiber

consumption

373

405

BSKP3

52

Others

BHKP2

BEKP1

Pulp and Paper Production Chain – 2012e

Integrated

pulp

Market pulp4

Market Pulp Demand opportunities:

1% reduction in recycled paper =

+1.9 MM ton/year of market pulp

1% reduction in integrated capacity =


2% growth in paper consumption =



Demand for paper and paperboard is forecasted to grow 42 million tons from 2010 to 2015

24 24 24

Paper and paperboard demand forecast until 2015

0

50

100

150

200

250

300

350

400

450

1995 2000 2005 2010 2015

Others1

Milh

ões d

e T

onela

das

Latin America1

Others Asia1

China1

Japan

Eastern Europe1

Western Europe

North America

CAGR: 2.1% p.a. Emerging economies: +4.3% p.a.

CAGR: 2.2% p.a. Emerging economies: +5.7% p.a.

1 Emerging economies includes Latin America, Asia (except for Japan), Middle East, Oceania, Africa and Eastern Europe

Source: Poyry (nov/2011)

Sack

20% 40% 100% 60% 80%


Paper demand forecast is growing for grades that are Eucalyptus fiber users over the next years.

25 25 25

Main BEKP end-users

1.5

0.0

-1.5

3.0

4.5

-3.0

Uncoated

mechanical

News-

print

Coated

woodfree

Other

Grades1

Tissue Carton

board

Container board

CA

GR

20

11e –

20

16

e

(% a

.a.)

Uncoated

woodfree

Coated

mechanical

Paper demand forecast: CAGR (2011e – 2016e) 2.0% p.a.

1 Other grades includes special paper segment

Source: Poyry (nov/2011)

43 44 46 46 46 47 50 49 51 52 53

10 11 13

14 16 16

17 17

19 20

21

11 11

10 9 9

10 9 9 9 9

22 22 23

22 21

22 23

22 23 23

24

0

10

20

30

40

50

60

0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mercado BEKP Outros BHKP BSKP


Eucalyptus pulp has replaced other short fibers and the actual price spread between hardwood and softwood should continue to favor this replacement.

26 26 26

Vo

lum

e b

y fib

er

typ

e

(mill

ion

to

ns)

CAGR BEKP: +9.5%a.a | Other BHKP: -2.5%a.a.

CAGR BEKP: +7.3% a.a. | Other BHKP: 0.0%a.a.

Bleached Market Pulp Demand Projections (2012e – 2015e)

To

tal M

ark

et V

olu

me

(millio

n to

ns)

1 Bleached Market Pulp | 2 Bleached Eucalyptus Kraft Pulp | 3 Bleached Hardwood Kraft Pulp | 4 Bleached Softwood Kraft Pulp

Source: PPPC (May/2012)

2 3 4 1

13

27

Brazilian Competitiviness Suzano is in the lowest cash cost region.

Cash Cost CIF / Europe (US$/ton)

Source: Hawkins Wright (Jul/2012)

652

E. Canada

641

Sweden

553

USA

546

France

516

Finland

491

Chile Japan

Russia

Japan

China

567

Canada

562

USA

519

Sweden

506

Finland

476

436

457

Iberia

398

Indonesia

390

Chile

375

Brazil

344

Int. West. Can

675

BC Coast

652

France

Low Cost High Cost High Cost

410

15.6 MM ton 9.5 MM ton 2.9 MM

ton 14.2 MM ton

Low Cost

Hardwood Softwood

652

Maranhão Unit

State of the art facility technology and top tier suppliers contracted.

29 29 29

1. Wood yard

2. Cooking and Fiber lines

3. Dryer

4. Evaporation

5. Boiler

6. Lime kiln

9. Water treatment

10. Effluent treatment

7. Turbo generators

8. Energy distribution and substation

Conceptual engineering

Basic engineering

Detailed engineering:

BOP1 and infrastructure

Management of BOP1

implementation and

infrastructure

9

1 Balance of Plant

Fonte: Poyry and Suzano

8

3

2 4

5

1

6

10

7

2011 2012 2013

Infrastructure

Civil work

Erection

Commissioning

Start up

Phase II

PLANNING

Ongoing

Maranhão Unit Schedule

Track record of successfully executing projects on schedule, implementing business plans and meeting budgets.

30 30 30

Market study

Preliminary feasibility

study

Conceptual engineering

General planning

Purchases

Construction and

assembly

Commissioning

Phase IV

Start up

4Q13

Forestry

Purchase of land, licenses, permissions and

plantations

Industrial, port, railway

Environmental licenses

Conceptual and basic engineering

Phase I

BEGINNING

Concluded

Phase III

EXECUTION

Ongoing

4Q13

Maranhão Project

Plant Location Main Characteristics

In 4Q13, Suzano will start operating its Maranhão unit, one of the most modern in the world and with a

production capacity of 1.5 million tons/year of eucalyptus market pulp

Teresina

PARÁ

MARANHÃO

PIAUÍ

BAHIA

TOCANTINS

Imperatriz

Açailândia

Suzano Port

São Luis

Imperatriz

Ferro Carajás Railway- EFC

Norte Sul Railway

Site – Imperatriz Norte

EFC

Norte Sul

Porto Franco

Cidelândia

CEARÁ

MINAS GERAIS

GOIÁS

DF

ESPÍRITO

SANTO

RIO GRANDE

DO NORTE

PARAÍBA

PERNAMBUCO

ALAGOAS

SERGIPE

FORESTRY

25 years of research in the region

Average yield of approximately 42m3/ha/year

Annual capacity of 15 million nursery seedlings

Long term and sustainable wood supply

INDUSTRIAL

Initial production scheduled for 4Q13

Installed capacity of 1.5 million tons/year of eucalyptus market

pulp

100MW in excess energy supply available for sale

Industrial plant leader in technology equipments, as supplied by

the most recognizable contractors in the world

LOGISTICS

Inbound logistics based on existing highways

Outbound logistics through local railways

Exportation through the port located in the region of São Luís

(MA)

Strategically positioned for pulp distribution for the European and

North American markets

MANAGEMENT

Professional management with superior project execution

expertise

31

Operational Reliability

More operational flexibility: stability and smaller costs

Lower downtime:

Metso Service Center

Learning curve guaranteed in the contract

Supplier support: operational team for 18 months after the

start-up

Outbound Logistics: 100% railway without load transshipment

outbound and with proximity to the main markets (Europe and

USA)

Mill located in a large city

Easier labor force recruitment

Fiscal incentives: 75% reduction in income tax rate for 10 years

Business Differentials Status of the Project

57% of forests planted

97% of suppliers contracted

45% of overall physical

construction reached

76% of infrastructure

construction completed

65% of the equipment

manufacturing completed

Assembly of metallic

structure for boilers has

been ongoing since May/12

The Maranhão unit is in execution phase and a great part of its milestones has already been concluded

Infrastructure

32

Maranhão Project

Logistic Solution

Railway transportation from the plant to the port and strategic located to export to the main pulp markets.

33 33 33

Port in the São Luís1 region

500 Km through

Carajás railway

100 Km through

Norte-Sul railway

Capacity: 10 production

days

The train will go through

the warehouse, allowing

for loading from both

sides

Transit time: around 4 days shorter

to main destinations compared to

ports in the South East of Brazil

Maranhão Unit Model

Warehouse

1 Illustration

34

Funding:

BNDES: R$2.7 billion, 12 years to pay and 3-year grace period

Mandatory convertible debentures: R$1.2 billion

Funding for the imported equipment supported by foreign credit agencies (ECA’s among others)

Cash flow generation

Capex (R$ million) 2009 2010 2011 1H12 Total

Forest 193 159 177 44 573

Industrial 0 4 664 838 1,505

Total 193 162 841 882 2,078

Capex Long term financing, grace period and competitive cost.

Maranhão Unit

Estimated Forest Capex US$ 575 million

Estimated Industrial Capex1 US$ 2.3 billion

1 Figures consider exchange rate of R$1.80/US$

36 36 36

FuturaGene Biotechnology is on the right side of Sustainability.

Base Case: Suzano Pulp and Paper

907

k ha

Less land utilization

Lower forest formation

cost

Innovating for sustainability

Less land utilization

Less chemical expenditure

Higher carbon sequestration

2015e Planted Area

Necessidade de terras (ha)

Pro

du

tiv

ida

de

Yield Increase

1% 5% 10% 15% 20% 30% 50%

-9 k ha -45 k ha -90 k ha -136 k ha -181 k ha -272 k ha -454 k ha

Lan

d

uti

liza

tio

n

37 37 37

FuturaGene is present in 60% of the eucalyptus market

Well positioned to be world leader in forest biotechnology

India

3.9 MM ha

Brazil

4.5 MM ha

China

3.0 MM ha

South Africa

0.6 MM ha

Thailand

0.5 MM ha

Global Eucalyptus Forest Map

Source: GIT Forestry Consulting, http://git-forestry-blog.blogspot.com

FuturaGene Biotechnology is on the right side of Sustainability.

Upside: new business

Project update

Protocol signed with Maranhão government

Ongoing activities:

Forest: Specific clones selected, dedicated plantation (Energy Forests)

Engineering with Promon and Stolberg (Canadian)

Commercial: Advanced negotiation of final contracts with clients

Dedicated team

Suzano Renewable Energy

Forestry competency enables new business opportunities.

39 39 39

3 units: 1 MM ton/year each

Estimated start-up: 2014

Funding: definition of the capital structure

World leader

Initial focus on the European market

Wood pellets for energy, produced from renewable energy-oriented forests

1,377 1,663 1,622 1,570

1,609 2,018 2,013 1,980

2009 2010 2011 UDM

1,426 1,560 1,858 1,933

918 936 978 1,014

2,344 2,496 2,836 2,947

2009 2010 2011 UDM

1,161

1,725 1,302 1,204

2009 2010 2011 UDM

1,657 1,915 2,248 2,343

2,295 2,599

2,600 2,584

3,952 4,514

4,848 4,927

2009 2010 2011 UDM

2,896 2,763 3,143 3,226

29.4%

38.2%

26.8% 24.4%

41 41 41

1,780 1,607 1,808 1,839

1,116 1,156 1,335 1,386

1.84 2.00 1.76 1.67 2.00 1.76 1.67 1.84

1 1

1 1

Results Net Revenue and EBITDA

EBITDA (R$ million) and EBITDA Margin (%) Net Revenue (R$ million) and Volume (k ton)

Paper: Revenue (R$ million) and Volume (k ton) Pulp: Revenue (R$ million) and Volume (k ton)

Average

R$/US$ Average

R$/US$

Domestic Market Exports Volume

Domestic Market Exports Volume Domestic Market Exports Volume


Liquidity Horizon of 60 months1

Strong pro-forma¹ cash: R$ 4.2 billion

Pro-forma¹ Net Debt / EBITDA: 4.5x

Projects Financing: grace periods and gradual

amortizations aligned with the projects cash flow

The Company remains focused on initiatives

aimed at reducing its leverage and improving its

capital structure

42 42 42

Debt

Lengthening of debt profile with the carry out of R$ 1.2 billion and the structuring of financial shield package

42

Gross Debt (R$ million)

9,308 9,607

(158) (87)

544

Gross Debt(Mar/12)

Funding /Amortizations

Interest ForeignExchangeVariation

Gross Debt(Jun/12)

Amortization Schedule (R$ million)

1,017 929 1,145

741

1,762

958

3,055

6M12 2013 2014 2015 2016 2017 2018onward

Notes: 1 Pro-forma data includes the Primary Equity Offering funding.

Debt Profile Evolution

Short

Term

15%

Long

Term

85%

Short

Term

28%

Long

Term

72%

1Q12 2Q12

43 43

1.6x 1.6x

2.7x

3.8x 3.7x 3.7x 3.5x

2.0x

4.2x 4.5x

1,647 1,616

2,475

3,919 4,285

5,459

4,111

3,421

5,470 5,386

1,000 1,039 913 1,040 1,146 1,469

1,161 1,725

1,302 1,204

2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM1

Debt

Leverage can increase temporally due to the growth projects capex, but amortizations are in line with cash flows from these projects.


Note: The amounts of 2009, 2010 and LTM include the adjustments introduced by the IFRS standards

Net Debt LTM pro-forma , includes the Primary Equity Offering funding (R$ 1.5 billion).

Net Debt (R$ million) EBITDA (R$ million) Net Debt/EBITDA (x)

Ripasa

Acquisition

Implementation

of

Mucuri Project

Start up of

line 2 at

Mucuri

World

economic

crisis

Conpacel

Acquisition

Primary

Offer

Bahia Sul

Incorporation

Primary

Equity

Offering

0.5 0.5

3.0

0.9

2012e 2013e

3.5

1.4

44

Investment Plan

Growth projects will be developed with discipline, respecting Company’s financial solidity.

Estimated Capex (R$ billion)

Sustain Growth

Note: 2012 figures do not include investments on Suzano Renewable Energy. The

investment is conditional on the capital structure definition.

Em

Es

tud

o

Growth Investment Plan:

No change in the Maranhão project investment

Piauí forest investment reduced to the minimum

amount necessary for sustain

As for the Suzano Renewable Energy investment

in 2012, Suzano Pulp and Paper will contribute

existing land and forest

46

R$ 1.5 BILLION EQUITY OFFERING

Issuance of 119,605,766 ordinary shares, 246,221,728 class A

preferred shares and 14,720 class B preferred shares

R$ 1.2 BILLION DEBT RESTRUCTURING SIGNED

Debt with amortizations in 2012, 2013 e 2014 were renegotiated

reducing amortization volumes, and releasing cash flow for expansion

STAND-BY FACILITY

Availability of a stand-by facility of up to R$ 2.0 Billion

Credit line will be available until 1Q2014

FUNDING OF MARANHÃO PROJECT

R$ 2.7 bi credit line (R$ 2.3 bi still not in use) with BNDES

Negotiations in progress for up to R$750 million with the Export

Credit Agency (ECAs)

SALE OF NON-CORE ASSETS AND/OR PARTNERSHIPS

2

3

4

5

6

The start up of Maranhão Unit (capacity of 1.5 million tons/year of market pulp and energy surplus of 100 MW),

expected for 4Q13, will start the Company’s deleveraging process

Additionally, several operational initiatives are being implemented:

(i) General adjustments on the cost structure and (ii) Review of the logistics and industrial processes

Financial shield

R$ 2.8 BILLION CASH

Cash position of the company as of 30th June 2012 1

Financial Shield Package

The Offering is one of the components of a comprehensive package which brought the comfort needed in terms of cash flow until the end of 2016

2.8

0.6

(3.8)

(1.0)

1.0

2.5 2.5

4.5 4.5

(2.2)

(3.3)

(2.3)

2.1

1.5

2.0

Cash Jun 12 Debtamortization

andinterests

Capex BNDES EBITDA¹ EquityOffering

Cash Dec 13 Stand-by Cash Dec 13+ Stand-by

47

The EBITDA is the main variable component of the Company’s cash flow and, if it varies substantially,

the cash flow position will remain positive

Notes: 1 Based on the average of the EBITDA of the years of 2010 and 2011, excluding non-cash and non-recurring items of the EBITDA in 1H12

Cash Inflows & Outflows 2012/2013 (R$ billion)

Financial Shield Package

The Company has a comfortable cash position in order to afford Maranhão Project investments through 2012 and 2013

48

Capital Increase

Financial planning prioritizes liquidity and reduces refinancing needs

Amortization Schedule (R$ billion)

Not considering the Company’s operating and investing cash flows, as well as interest expenses, Suzano’s estimated

cash position as of December/2013 could cover most of the debt amortization

2014-2016: Total of R$ 4.6 billion

4.5

(1.1) (0.7)

(2.8)

(2.0)

(3.1)

Cash (dec/13)+Stand-by

2014 2015 2016 2017 2018+

Why to invest in Suzano?

49 49 49 49

High Level of Own

Energy Production

Low production

costs

Extensive

know-how and

high planted

forest

productivity

Balanced mix

of products

Experienced

Management

Team

Strong

operating

cash flow

Investor Relations

50 50 50 50

Investor Relations

www.suzano.com.br/ir

[email protected]

http://www.suzano.com.br/ri

mailto:[email protected]

Board of Directors Experienced and active

51 51 51 51

Experience of 36 years in the pulp and paper industry. CEO of Suzano Holding S/A, Chairman of the Board of Directors of Suzano

Pulp and Paper S/A and Coordinator of the Management Committee. CEO of IPLF Holding and Nemopar Investimentos Ltda. CEO

and Vice President of the Board of Directors of Polpar S/A.

Experience of 35 years in the pulp and paper industry. Vice President of FIESP. Member of BRACELPA’s and IBEF’s Advisory

Board. Chairman of the Board of Directors for the Brazilian Committee of Britain Brazil Business Forum.

Executive Vice President of Suzano Holding S/A. Coordinator of Sustainability and Strategy Committee and member of Audit

Committee and member of the Compensation Commission of the Board of Directors; Former president of the board and CEO of

Hoechst of Brazil. Board of Directors member of Lojas Renner S/A, RBS Group, Cyrela Brazil Realty, OGX and Chemical Group

DSM/Holanda.

Experience of 31 years in the pulp and paper industry. Member of the Board and the Committee of Sustainability and Strategy;

Director of Premesa, Corporate VP of Suzano Holding and IPLF Holding, Executive Officer of Nemonorte and Vocal.

Senior partner of Machado, Meyer, and Sendacz Opice Lawyers and former member of the Board of Directors of OAB Brazil.

President of CESA. Former Legal Adviser and Chairman of the Legislative Committee of the American Chamber of Commerce and

Director of ABRASCA’s Legislative Committee. (Independent)

Member of Audit Committee. Senior partner of Integra Associates. Member of Gerdau S/A’s Board of Directors, Metalúrgica Gerdau,

Sao Paulo Alpargatas, Localiza, and Johnson Electric (Hong Kong); Board Member of Bunge Brazil and Alcoa Brazil. Oscar was

President of Bunge International and Managing Partner in Booz-Allen & Hamilton. (Independent)

Coordinator of Suzano Pulp and Paper’s Audit Committee. Member of the Board of Directors of TAM Airlines and TAM Aviação

Executiva. Former CEO of TAM Airlines and WTorre. (Independent)

Co-Chairman of the Board of Directors of BRF-Brasil Foods. Board member of WEG S/A, Ultrapar Participações S/A and Iochpe-

Maxion S/A. Former CEO of Perdigão Group. Former Director of the National Bank for Economic and Social Development - BNDES,

and General Director of Corporate Group Iochpe-Maxion Industrial Holding. (Independent)

DAVID FEFFER

President

DANIEL FEFFER

V. President

BORIS TABACOF

V. President

CLÁUDIO SONDER

ANTONIO MEYER

OSCAR BERNARDES

MARCO BOLOGNA

NILDEMAR SECCHES

JORGE FEFFER

Experience of 32 years in the pulp and paper industry. Member of Sustainability and Strategy Committee, Chairman of Polpar’s

Board of Directors, President of Premesa, Corporate VP of Suzano Holding, IPLF Holding and Nemopar, President of Nemonorte,

Chairman of Ecofuturo Institute’s Board of Directors.

Chief Executive Officer, also responsible for Strategy Department, 6 years at Suzano. Member of the Board of Director Member

of Archer Daniels Midland Company and Marfrig Frigoríficos. Vice President of BRACELPA. Former member of the Board of Director

of SEBRAE, Gradiente, Cecrisa and Amcham. Former Chaiman of Ford Brasil and Ford Latin America, Itamarati Group, Ferronorte

and Cecrisa and former Executive of Petrobras and the Federal Government. Mechanical Engineer graduated at UFRJ.

Chief Operation Officer, 5 years at Suzano. Has worked as Expansion Project Director of Mucuri Unit. Former executive of Dow

Chemical Company, in Brazil, USA and Europe. Post-Graduated in Business Administration at FIA/USP.

Pulp Business Unit Executive Officer, joined Suzano in 2009. Former CEO of European operations of RGM Group and

Commercial Director of Aracruz. Graduated in Business Administration at Fundação Getulio Vargas (FGV).

Paper Business Unit Executive Officer, 6 years at Suzano. Former Executive Manager of Suzano’s Pulp Business Unit and Sales

General Manager for Latin America at General Electric in the Industrial Systems Division. MBA degree from Ibmec-SP. Electrical

Engineer from UFMG.

Human Resources Executive Officer, 2 years at Suzano. Former Human Resources Manager for Aviation Operations in General

Electric in Brazil and abroad, Global HR Director for Information Technology in the United States and HR Director for Mexico and

Latin America. Former Executive of Carioca Engenharia, CR Almeida, Comlurb and Bureau Veritas. Post Graduated in Business

Administration at COPPEAD-UFRJ.

Executive Officer, responsible for the Forestry Business Unit. In 2005, he took the position of Executive Superintendent Officer of

Conpacel. During his career, he has served as Planning Manager at Indústrias de Papel Simão, Industrial Superintendent at

Votorantim Celulose e Papel S.A. (currently Fibria Celulose S.A.), and Executive Officer at Ripasa S.A. Celulose e Papel. Mr. Bassetti

wrote three books on the topic of People and Environment Management, and gives lectures on motivation, leadership and

entrepreneurship. He also occupies chair no. 39 at the Literature Academy of Piracicaba.

BERNARDO

SZPIGEL, 65

Executive Officers Broad experienced management team

ANTONIO MACIEL NETO

ALBERTO MONTEIRO

ALEXANDRE YAMBANIS

ERNESTO POUSADA

CARLOS ANIBAL

CARLOS GRINER

PAULO BASSETTI

52

Chief Financial Officer, also responsible for Investor Relations Department. Has worked as Chief Financial Officer at CSN and as

member of the Board of Director of Congonhas Minérios, NAMISA, Transnordestina S.A., among others. At Banco do Brasil, has

worked as Chief Financial Officer of Conglomerado BB S.A., CEO of BB DTVM and President of BESC DTVM. Graduated in Business

Administration from FCPE/RJ, MBA degree in Corporate Finance from FGV and Post graduated in Banking from FEA/USP.

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