NOVEMBER 18NOVEMBER 18NOVEMBER 18NOVEMBER 18thththth 2014201420142014

EMPRESAS CMPCCELULOSE RIOGRANDENSE CELULOSE RIOGRANDENSE CELULOSE RIOGRANDENSE CELULOSE RIOGRANDENSE ---- SITE VISITSITE VISITSITE VISITSITE VISIT

AGENDA

I. Guaíba Mill Introduction

Walter Lidio – CEO CMPC Celulose Riograndense

II. Guaíba 2 Project

Luis Llanos – CFO Empresas CMPC

III. Market Pulp Outlook

Luis Llanos – CFO Empresas CMPC

IV. Forestry Management

Fernando Hasenberg – CFO CMPC Celulose Riograndense

V. Port & Pulp Logistics

Fernando Hasenberg – CFO CMPC Celulose Riograndense

VI. Stakeholders’ Relationship

Walter Lidio – CEO CMPC Celulose Riograndense

I. GUAÍBA MILL INTRODUCTION

4

GUAÍBA: BUILDING ON 46 YEARS OF HISTORY

Start up of the Guaíba industrial plant.

Celulose Riograndense took control of the plant.

Aracruz Celulose bought the plant, changing the mill’s name to Guaíba Unit.

1968196819681968

The Norwegian group Borregaard set up its first eucalyptus plantation.

OCTOBER, 2009OCTOBER, 2009OCTOBER, 2009OCTOBER, 2009

CMPC acquires the Guaíba unit from Aracruz for US$1.37 billion.

2000200020002000

Klabin buys 100% of the company stock. The corporate name is changed to Klabin Riocell S.A. New updates in plant.

DECEMBER, DECEMBER, DECEMBER, DECEMBER, 2012201220122012

Approval of the Guaíba II Project for US$2.1 billion.

Riocell S.A. is acquired by the holding KIV Participações, formed by private groups Klabin, Iochpe and Votorantim. Important updates in the plant.

The plant’s control passed to Sulbrasileiro/ Montepio da Familia Militar and renamed Rio Grande Companhia de Celulose do Sul –Riocell.

1975197519751975

1972197219721972 DECEMBER, DECEMBER, DECEMBER, DECEMBER, 2009200920092009

20032003200320031982198219821982 2Q152Q152Q152Q15

Startup of Guaíba 2 Line

5

THE GUAÍBA 2 PROJECT WILL BE ONE OF THE MOST EFFICIENT IN THE PULP INDUSTRY

High yield forestry baseHigh yield forestry baseHigh yield forestry baseHigh yield forestry base

Strategic LocationStrategic LocationStrategic LocationStrategic Location

State of the artState of the artState of the artState of the arttechnologytechnologytechnologytechnology

Upgrade CMPC’s existing logistics Upgrade CMPC’s existing logistics Upgrade CMPC’s existing logistics Upgrade CMPC’s existing logistics

Economies of ScaleEconomies of ScaleEconomies of ScaleEconomies of Scale

Guaíba

Terminal

Rio Grande Rio Grande Rio Grande Rio Grande Terminal Terminal Terminal Terminal

II. GUAÍBA 2 PROJECT: GUAÍBA 2 PROJECT: GUAÍBA 2 PROJECT: GUAÍBA 2 PROJECT: EXECUTED BY A COMPANY WITH EXPERTISE IN LARGE SCALE PROJECTS, IN A UNIQUE LOCATION

Guaíba 2 Project –September, 2014.

7

THE PULP PROCESS IN BRIEF

2

1

3

4

5

67

7

9

8

11

1213

12

10

14

8

GENERAL OVERVIEW

Line 1 (actual) Line 1 (actual) Line 1 (actual) Line 1 (actual) –––– 450,000 ton/year450,000 ton/year450,000 ton/year450,000 ton/yearLine 2 (Project) Line 2 (Project) Line 2 (Project) Line 2 (Project) –––– 1,300,000 ton/year1,300,000 ton/year1,300,000 ton/year1,300,000 ton/yearLine 1 + Line 2 Line 1 + Line 2 Line 1 + Line 2 Line 1 + Line 2 –––– 1,750,000 ton/year1,750,000 ton/year1,750,000 ton/year1,750,000 ton/year

9

DESIGN CRITERIA OF GUAÍBA 2

Raw material:

EucalyptusEucalyptusEucalyptusEucalyptus

Annual production:

1.3 million 1.3 million 1.3 million 1.3 million ADtB/yearADtB/yearADtB/yearADtB/year

Operation days:

354 days/ 354 days/ 354 days/ 354 days/ yearyearyearyear

Design efficiency:

90%90%90%90%

Design capacity:

4,080 4,080 4,080 4,080 ADtB/dayADtB/dayADtB/dayADtB/day

10

IMPLEMENTATION STRATEGY

The defined strategy for the project is:

Process Areas Process Areas Process Areas Process Areas ––––Technology Driven EPC Technology Driven EPC Technology Driven EPC Technology Driven EPC conceptconceptconceptconcept

Vendor is responsible for the entire project including engineering, procurement construction and erection

Turbo generators, Chlorine Turbo generators, Chlorine Turbo generators, Chlorine Turbo generators, Chlorine Dioxide Plant and Chlor Dioxide Plant and Chlor Dioxide Plant and Chlor Dioxide Plant and Chlor Alkali Plant Alkali Plant Alkali Plant Alkali Plant

EPS concept complemented with the necessary interconnections as an EPCM

Balance of Plant and Balance of Plant and Balance of Plant and Balance of Plant and Complementary Plants Complementary Plants Complementary Plants Complementary Plants EPCM conceptEPCM conceptEPCM conceptEPCM concept

Consulting company hired for developing the engineering, procurement, construction and management

11

MAIN CONTRACTORS

AREAAREAAREAAREA TYPETYPETYPETYPE SUPPLIERSUPPLIERSUPPLIERSUPPLIER

Wood yard EPC Demuth

Cooking & Fiber lineWhite Liquor PlantRecovery BoilerEvaporation PlantPulp Drying & BalingDistributed Controlled System

EPC Valmet

Water Treatment PlantEffluent Treatment PlantBoiler Feed Water Treatment Plant

EPC Veolia

Power Distribution EPC Siemens

Bay of 230 kV line230kV Transmission line230kV Substation

EPC WEG

Turbo generators EPS Siemens

Chlorine Dioxide Plant EPS Chemetics

Chlor Alkali Plant Expansion EPS UHDE

Balance of PlantComplementary Plants

EPCM POYRY

12

THE GUAÍBA MILL WILL HAVE 30MW OF EXCESS CAPACITY TO SELL TO THE NATIONAL GRID

CMPC’s connection to the National GridCMPC’s connection to the National GridCMPC’s connection to the National GridCMPC’s connection to the National Grid

Function: to connect the Guaíba mill to Guaiba 2 substation

Length: 6 Km

Total Towers: 21

Quantity of Land owners: 13

Main contractor: WEG

Normal operation: 61MW (imported) and 30MW (exported)

Tie Line 230KVTie Line 230KVTie Line 230KVTie Line 230KV

Main CharacteristicsMain CharacteristicsMain CharacteristicsMain Characteristics

13

302 465 478 717 883

1,146 1,625

2,354 2,586

3,263

4,354 4,890

5,915

6,663

7,256 7,338 7,796

8,242 8,668

7,650 7,300

6,200

5,000

3,500

1,800

360 133

THE GUAÍBA MILL WILL REQUIRE A MAXIMUM OF ~8,700 PEOPLE

Priority to hire local manpower

CMPC has a Qualification Manpower Program to qualify 3,600 construction workers and 2,400 mechanical workers

Total workers (as of Oct. 2014)

8,668 8,668 8,668 8,668

14

CRG HAS A CITIZEN COMPANY ATTITUDE, STIMULATING THE GENERATION OF LOCAL EMPLOYMENT

Guaíba CityGuaíba CityGuaíba CityGuaíba City13%13%13%13%

Guaíba's Guaíba's Guaíba's Guaíba's surroundingssurroundingssurroundingssurroundings

5%5%5%5%

Other Other Other Other regions of regions of regions of regions of

Rio Grande Rio Grande Rio Grande Rio Grande do Suldo Suldo Suldo Sul17%17%17%17%

Other states Other states Other states Other states of Brazilof Brazilof Brazilof Brazil

65%65%65%65%

Total workers (as of Oct. 2014)

8,668 8,668 8,668 8,668

15

THE PHYSICAL COMPLETION OF THE PROJECT SHOWS THE COMMITMENT OF CRG TO START UP ON 2Q15

0

10

20

30

40

50

60

70

80

90

10082.3%82.3%82.3%82.3%

%

As of the end of October 2014October 2014October 2014October 2014 the physical completion of the Guaíba 2Guaíba 2Guaíba 2Guaíba 2 project was

82.3%82.3%82.3%82.3%

16

THE DISBURSEMENTS OF THE PROJECT SHOWS THE COMMITMENT OF CRG AND CMPC TO BE ON BUDGET

3 1 4 1 10

90

28

57 49 50

57

97

52

69

92

76 80

118

133 138

118

Capex 2013: US$446 million

Capex 2014 (YTD-SEPT ‘14): US$876 million

US$778 million to be disbursed by 3Q15

Figures in US$ million

17

THE GUAÍBA PROJECT CONSIDERS A DIVERSIFIED FINANCING PLAN WHICH IS MOSTLY COMPLETED

Financing PlanFinancing PlanFinancing PlanFinancing Plan

Capital Increases:

• US$500 million in June 2013

• US$250 million in July 2014

144A Debt Issuance: US$500 million

BNDES Credit: BRL$ 2,510 million

• BRL$ 1,000 million disbursed

ECA Financing: US$340 million

• US$ 265 million disbursed

Sale of non-core assets:

• Bicecorp: US$106 million

18

WHAT’S NEXT?

MAIN MILESTONESMAIN MILESTONESMAIN MILESTONESMAIN MILESTONES

Recovery Boiler – Hydraulic Test

Start the harvesting for line 2

Wood Yard – Start up line 1

Recovery Boiler – First ignition

Recovery Boiler – Initial pipe blowing

Dryers – Test with pulp

Turbo generator 5 – Startup

Guaíba North Port

III. MARKET PULP OUTLOOK

20

-0.8%

0.0% 1.4%

-5.5%

-25.0%

8.1%

NorthernSoftwood

SouthernSoftwood

RadiataSoftwood

NorthernHardwood

SouthernHardwood

Eucalyptus

Pulp inventory daysPulp inventory daysPulp inventory daysPulp inventory days

MARKET PULP COMMENT

Global demand for pulp increased 1.9% in 3Q14 from 2Q14 and 2.6% compared to 3Q13. If we compare 3Q14 with 2Q14:

• Chinese demand grew 4.4% (172 Th. tons), Latam demand increased 7.9% (64 Th. tons), North American demand grew 3.0% (57 Th. tons), European demand increased 1.3% (57 Th. tons). Other Asian countries demand felt 3.2% (86 Th. tons)

BSKP and BEKP inventories at 26 and 37 days as of the end of September 2014

Positive change in demand trend since mid May. BHKP price increase announced for October

Source: PPPC

Market Pulp demand (9M14 vs. 9M13)Market Pulp demand (9M14 vs. 9M13)Market Pulp demand (9M14 vs. 9M13)Market Pulp demand (9M14 vs. 9M13)

Source: PPPC, World Chemical Market Pulp Global 100 Report – September 2014

34 34 34 3337

3432

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

-0.6%-0.9%

2.4%

0.4%

4.2%

0.5%

NorthAmerica

WesternEurope

LatinAmerica

Japan China Other Asia

21

NEW BEKP CAPACITY IN THE 4OO+ MILLION TONNES FIBER MARKET

Source: RISI 5-year Forecast (2013-2018) - December 2013

417 million tons of 417 million tons of 417 million tons of 417 million tons of total fiberstotal fiberstotal fiberstotal fibers

59 million tons of 59 million tons of 59 million tons of 59 million tons of market pulpmarket pulpmarket pulpmarket pulp

28 million tons of 28 million tons of 28 million tons of 28 million tons of BHKPBHKPBHKPBHKP

Fiber World Consumption required to Fiber World Consumption required to Fiber World Consumption required to Fiber World Consumption required to produce 403 million tons of produce 403 million tons of produce 403 million tons of produce 403 million tons of

Paper&Board Paper&Board Paper&Board Paper&Board Virgin fiber used to produce Paper&BoardVirgin fiber used to produce Paper&BoardVirgin fiber used to produce Paper&BoardVirgin fiber used to produce Paper&Board

(million tons)(million tons)(million tons)(million tons) Market Pulp consumed to Market Pulp consumed to Market Pulp consumed to Market Pulp consumed to manufacture Paper&Board manufacture Paper&Board manufacture Paper&Board manufacture Paper&Board ---- 2013201320132013

(million tons)(million tons)(million tons)(million tons)

Virgin Pulp 183 million

tons

(44%)

RecoveredRecoveredRecoveredRecoveredPaper

234 million tons

(56%)

Market Pulp59 million

tons

(32%)

Integrated124

million tons

(68%)

BSKP24

BHKP28

Sulphite

UKP2

Mec5

[BEKP: 16.8 million tons][Guaíba II: 1.3 million tons][Guaíba II: 1.3 million tons][Guaíba II: 1.3 million tons][Guaíba II: 1.3 million tons]

[Containerboard: 146 million tons][P&W: 109 million tons][Other P&B: 86 million tons]

[Tissue: 32 million tons][Newsprint: 31 million tons]

IV. FORESTRY MANAGEMENT: FORESTRY MANAGEMENT: FORESTRY MANAGEMENT: FORESTRY MANAGEMENT: CRG HAS QUALITY ASSETS WITH SCOPE FOR HIGHER PRODUCTIVITY IN THE FUTURE DUE TO ITS INNOVATION AND EXPERTISE

23

In regime MAI*: MAI*: MAI*: MAI*: 43m43m43m43m3333/ha/year/ha/year/ha/year/ha/year

OUR FORESTS ARE CONCENTRATED IN RIO GRANDE DO SUL

The Guaíba Mill will be 100% self sufficient in terms of wood. Our forestry base is concentrated in 3 blocks:

• GuaíbaGuaíbaGuaíbaGuaíba ~ 115 kms from the mill by truck

• Sao Gabriel Sao Gabriel Sao Gabriel Sao Gabriel ~ 325 kms from the mill by truck

• LosangoLosangoLosangoLosango *~ 160 kms by truck + 250 kms by barges from the mill

Our plantations in brief:

Average equivalent distancedistancedistancedistance: 180 kms 180 kms 180 kms 180 kms from the

mill

Sylviculture: Sylviculture: Sylviculture: Sylviculture: 60% clones and 40%

seeds (shift to clones)

Our own plantations are FSC™ FSC™ FSC™ FSC™ certified

LosangoLosangoLosangoLosango *subject to CDN approval * MAI = Mean annual increment

24

OUR FORESTRY STRATEGY IS BASED ON A LONG TERM VISION

- Shows the sustainable levels of harvesting

- Assess the need to buy land

- Forest management decisions

- Austral Model (Lineal)

- Plantations ready to be harvested

Strategic:

Long Term Plan

Tactical:

5 Year Plan

Operational:

Annual Program

Evaluation

- Harvesting Program

- Transportation routes

- Equipment and workers needs

- Production quotes by contractor

- Monthly and weekly wood supply

- Equipment transfer

- Optilog model

- Annual program evaluation

25

WHEN PLANNING, OUR HARVEST SHALL:

Ensuresustainability

Be flexible

Ensure supply levels to our operations

Meet environmentalrequirements

If the long-term is over- emphasized

immediate opportunities can

be lost

If the short-term is under-

emphasized there could be a loss in

timber flow sustainability

26

OUR FORESTS SHOULD FEED THE GUAÍBA MILL WOOD NEEDS

CMPC’s forests CMPC’s forests CMPC’s forests CMPC’s forests in Brazil should produceproduceproduceproduce in the range of 7 7 7 7 million mmillion mmillion mmillion m3333 of pulpwood per year

The Guaíba mill Guaíba mill Guaíba mill Guaíba mill should requirerequirerequirerequire approximately 6.2 million m6.2 million m6.2 million m6.2 million m3333 of pulpwood per year

• The excess of wood could be sold to third parties

• Could feed a possible debottlenecking, among other uses

Approximately 80% of the wood 80% of the wood 80% of the wood 80% of the wood required will come by truck by truck by truck by truck (the one coming from the Sao Gabriel and Guaíba areas)

All truck traffic will use the private private private private roadroadroadroad, without overload and negatively impacting the Castelo Branco Avenue and the Guaíba community

20202020%%%% (mostly from Losango) should enter the mill by bargesbargesbargesbarges coming from the Pelotas terminal

27

ELECTRICAL ROAD CONSTRUCTION STATUS

28

GENETIC & SYLVICULTURAL ADVANCES TO FURTHER IMPROVE YIELDS

“Old” type of plantations“Old” type of plantations“Old” type of plantations“Old” type of plantations20 m3/hectare/year

“New” type of plantations“New” type of plantations“New” type of plantations“New” type of plantations43 m3333/hectare/year

It is important to combine several kinds of species combine several kinds of species combine several kinds of species combine several kinds of species that better adapt better adapt better adapt better adapt to weather

and soil conditions in order to maximize the amount of pulp tons per hectare maximize the amount of pulp tons per hectare maximize the amount of pulp tons per hectare maximize the amount of pulp tons per hectare and

to reducereducereducereduce climate, pests and other risksrisksrisksrisks

29

GENETIC & SYLVICULTURAL ADVANCES TO FURTHER IMPROVE YIELDS

Uniformity of wood

Increased productivity per

hectare

Better adaptation to environmental

stress (dry and cold areas)

Ability to work with resistance to

diseases and pests

Reduced costs for pulp production (less purchase of land, lower cost of harvest,

etc.)

30

FORESTRY TECHNOLOGY: ENABLING GROWTH OPPORTUNITIES FOR THE FUTURE

0000

2222

4444

6666

8888

10101010

12121212

14141414

16161616

18181818

1980198019801980 1990199019901990 2000200020002000 2012201220122012----2020202020202020

Gains in pulp production per hectare:Gains in pulp production per hectare:Gains in pulp production per hectare:Gains in pulp production per hectare:M

AI P

ulp

(ton

s of

pu

lp /

hec

tare

/ y

ear)

MA

I Pu

lp (t

ons

of p

ulp

/h

ecta

re /

yea

r)M

AI P

ulp

(ton

s of

pu

lp /

hec

tare

/ y

ear)

MA

I Pu

lp (t

ons

of p

ulp

/h

ecta

re /

yea

r)Cloning Cloning Cloning Cloning Hybrid clonesHybrid clonesHybrid clonesHybrid clones

Forestry technology will enable CMPC to produce improved hybrid clonesimproved hybrid clonesimproved hybrid clonesimproved hybrid clones that

should further increaseincreaseincreaseincrease our pulp productivity pulp productivity pulp productivity pulp productivity in the coming years

V. PORT AND PULP LOGISTICS

32

EXTERNAL LOGISTICS

The external logistics of the Guaíba Mill will be:

Mill (1,750,000 t/y)

Guaíba Mill warehouse

All Weather Terminalby barges

(1,500,000 t/y)

Domestic Marketby trucks

(250,000 t/y)

Rio Grande Port

by containers(300,000 t/y)

Break Bulk(1,200,000 t/y)

~260 kms

33

ESTIMATED SCHEDULE

Estimated schedule for logistics’ start up:

PHASE 1PHASE 1PHASE 1PHASE 1

2Q15: Start up Guaíba 2 and Guaíba port (pulp terminal).

PHASE PHASE PHASE PHASE 2222

January 2016: Start up Pelota’s Port.

PHASE 3PHASE 3PHASE 3PHASE 3

2017: Enlargement and drag of the Rio Grande Port & CMPC’s Warehouse construction at the Rio Grande Port

34

GUAÍBA PORT – ALL WEATHER TERMINAL

35

BARGES CYCLE (WITH AND WITHOUT WOOD SUPPLY)

The logistic plan after the Guaíba 2 Line projects movement of 1.5 million tons of pulp per year by barges and 1.2 tons of wood from/to the Guaíba port respectively

In the design there are 3 established port terminals: Guaiba, Rio Grande and Pelotas. There is an outsourced water transport service which connects these terminals through the Laguna de los Patos

BargesBargesBargesBarges CycleCycleCycleCycle (hr)(hr)(hr)(hr)With With With With woodwoodwoodwood

WithoutWithoutWithoutWithoutwoodwoodwoodwood

Guaíba (pulp)Guaíba (pulp)Guaíba (pulp)Guaíba (pulp)Docking / Decoupling 2 2Pulp load 8 8Guaíba- Rio Grande Trip 20 20Rio GrandeRio GrandeRio GrandeRio GrandeDocking / Decoupling 2 2Pulp unload 8 8Contingencies(rain, strong fog, among others) 5.6 5.6Rio Grande- Pelotas trip 4Rio Grande- Guaiba trip 20PelotasPelotasPelotasPelotasDocking / Decoupling 2Wood load 8.1Pelotas – Guaiba trip 20Guaíba (wood)Guaíba (wood)Guaíba (wood)Guaíba (wood)Docking / Decoupling 2Wood unload 10.4Barge cleaning 4TOTALTOTALTOTALTOTAL 96.196.196.196.1 65.665.665.665.6

36

RIO GRANDE TERMINAL

A project was designed to meet pulp logistics demands at Rio Grande Port: discharge barges, storage, ship loading and container stuffing

36

Private Berthing for Barges

Priority Berthing for Pulp Vessel

The pulp will be stored in warehouses with static capacity of 83,000 ton.

Pulp bales in the warehouses will be moved by forklifts and transportation from warehouses to the ship's side will be done by trucks.

37

CONTAINERS MANAGEMENT

37

To comply with the 300,000 tons/year of containers’ demand CMPC will have a teamexclusively dedicated to containers. Our logistic operator will operate a permanent coveredarea between the C4 and C5 warehouses with a concrete platform which will allow CMPC toload simultaneously up to 6 containers in trucks

38

RIO GRANDE PORT

39

RIO GRANDE PORT

40

LOGISTICS & SERVICES: LOGISTIC NETWORK

13 Main13 Main13 Main13 MainPortsPortsPortsPorts

+transhipments

Long term freight contacts

Flexibility

and quick response

Permanent Stocks

in Europe, Asia and

Americaswith specialized shipping companies

41

CMPC AIMS TO LEVERAGE ITS GLOBAL CUSTOMER BASE AND SUPPLY CHAIN TO COMMERCIALIZE GUAÍBA PULP

Most of the Guaíba additional capacity should go into existing CMPC customers worldwide

Additional outreach to establish customer relationships in less-penetrated markets for CMPCsuch as United States and Middle East

All the above should be reached based on CMPC Pulp strengths:

400400400400++++ Customers Customers Customers Customers in 35+ countries

Industrial operations Industrial operations Industrial operations Industrial operations in Chile & Brazil

Long term Long term Long term Long term commercial relationships with customers

Balanced Balanced Balanced Balanced mix mix mix mix of Softwood and Eucalyptus Kraft pulp

CCCCommitted ommitted ommitted ommitted global network of sales representatives

Outstanding Outstanding Outstanding Outstanding Logistics, service and customer relationships

VI. STAKEHOLDERS’ RELATIONSHIPS

43

CELULOSE RIOGRANDENSE PRINCIPLES

Principle N°1:

Citizen company

Principle N°2:

Innovative company

Principle N°3:

Ethical company

Principle N°4:

Professional company

Integrity / Communications

Integrity / Communications

All decisionsdecisionsdecisionsdecisions and actionsactionsactionsactions are guidedguidedguidedguided by ethical valuesvaluesvaluesvalues and business principlesprinciplesprinciplesprinciples, respectingrespectingrespectingrespecting each stakeholderstakeholderstakeholderstakeholder that interacts with our operations

InvestorsInvestorsInvestorsInvestors

ClientsClientsClientsClients

WorkersWorkersWorkersWorkers

EnvironmentEnvironmentEnvironmentEnvironmentCommunityCommunityCommunityCommunitySuppliersSuppliersSuppliersSuppliers MediaMediaMediaMedia Local Local Local Local authoritiesauthoritiesauthoritiesauthorities

NGOsNGOsNGOsNGOs

44

COMMUNICATIONS: A KEY TOOL IN OUR RELATIONSHIPS WITH STAKEHOLDERS

Celulose Riograndense works on a positive agenda to neutralize and

minimize impacts

Press & Other communications channels:- Work’s newspaper, folders, “announcement car”, press consultancy service, monthly meetings with community counselling, 24 hours communication channel, link “acompanhe a obra”, monitoring and answers on local networks, guided visits to the work, weekly neighbors external visits

Work on Work on Work on Work on local culturelocal culturelocal culturelocal culture

Work with Work with Work with Work with local local local local

authoritiesauthoritiesauthoritiesauthorities

Work with Work with Work with Work with surrounding surrounding surrounding surrounding

communitiescommunitiescommunitiescommunities

Work with other Work with other Work with other Work with other critical publicscritical publicscritical publicscritical publics

CMPC AND CELULOSE RIOGRANDENSE STRONGLY BELIEVES IN SUSTAINABILTY

SOME OF THE INICIATIVESREGARDING THIS PRINCIPLE ARE:

46

SOCIAL RESPONSABILITY INICITIVES

Professional qualification Professional qualification Professional qualification Professional qualification program: ~10,000 peopleprogram: ~10,000 peopleprogram: ~10,000 peopleprogram: ~10,000 people

• Citizen Company attitude providing social inclusion with insertion in the labor market

• Generating income to the local economy, families and to the city

• Shortage of labor market

• Cost reduction by allocating with labor force from other regions and countries

• Pioneers in leading promoting buy-local in Rio Grande do Sul

• Citizen Company attitude, stimulating the development of local productive chains possible

• Generation of local employment, taxes and income to the city

• Integration with RS State Government

Stimulus to local Stimulus to local Stimulus to local Stimulus to local supplierssupplierssupplierssuppliers

Relation with indigenous Relation with indigenous Relation with indigenous Relation with indigenous communitiescommunitiescommunitiescommunities

• Nine municipalities with CRG forest plantations have indigenous peoples, including Quilombos (these communities were contacted and mapped)

• They have fluent communications with CRG

• A complete study on local indigenous communities was prepared for Imaflora

47

SOCIAL RESPONSABILITY INICITIVES

Education programEducation programEducation programEducation program• This project has distributed over 8 million notebooks to students in public schools in 39 cities

Fabrica de GaiterosFabrica de GaiterosFabrica de GaiterosFabrica de Gaiteros• Youths are taught in the art of playing

diatonic accordions, popularly known in the region as a “gaita de 8 baixos”,

stimulating social inclusion, as well asand the music and culture of Rio

Grande do Sul StateEucalyptus honeyEucalyptus honeyEucalyptus honeyEucalyptus honey• CRG encourages small scale

honey farmers to place their beehives in eucalyptus plantations.

The product remains the property of the beekeepers, with around 8% of

the honey obtained is distributed by CRG to APAES schools

Gaia jovenGaia jovenGaia jovenGaia joven• This program aims at providing Children in the Pantano Grande region with a direct approach to sustainable practices

Music in the factoryMusic in the factoryMusic in the factoryMusic in the factory• Every month, artists from Rio Grande do Sul (selected through voting done by the neighbors of the factory) are invited to show their artistic skills to the factory'sneighbors

Barba Negra ReserveBarba Negra ReserveBarba Negra ReserveBarba Negra Reserve• CRG created this nature reservation

to thank the Riograndense people for the kind reception offered

when the company was established in the state. Located in Barra do Ribeiro this reserve has 2,4 thousands hectares

and a rich biodiversity

Other initiativesOther initiativesOther initiativesOther initiatives• Preventive health program (PESC), Forest trails, Open door visit program, “Floresta é vida” Program, “Guaíba limpo”

(cleaning margins of Guaíba lake), Pulp & Paper technicians course, “Oficinas na Escola” (mechanic office at school), Journalists actualization seminars, Some NGOs and organizations' events , among other initiatives.

Barba Negra ReserveBarba Negra ReserveBarba Negra ReserveBarba Negra Reserve• CRG created this nature reservation

to thank the Riograndense people for the kind reception offered

when the company was established in the state. Located in Barra do Ribeiro this reserve has 2,4 thousands hectares

and a rich biodiversity

CLOSING COMMENTS

49

CMPC CELULOSE RIOGRANDENSE WILL BASE ITS STRATEGY IN:

2. Maintain2. Maintain2. Maintain2. Maintain and promotepromotepromotepromote positive labor relations

1. Continue smooth 1. Continue smooth 1. Continue smooth 1. Continue smooth execution of Guaíba 2 expansion

3. Ensure 3. Ensure 3. Ensure 3. Ensure strict control of costs and timeline

4. Manage 4. Manage 4. Manage 4. Manage balance sheet to control leverage

5. Prepare 5. Prepare 5. Prepare 5. Prepare customer base for additional supply of pulp