Presentation

47
Presentation

description

 

Transcript of Presentation

Page 1: Presentation

Presentation

Page 2: 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.

Page 3: Presentation

3

Agenda

01 | Corporate Overview and Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Page 4: Presentation

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 (9/30/11)

Free Float Controlling

Group

Treasury

54%

3%

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: +3 MM/ton/year

New businesses: biotechnology and wood

pellets for energy

Market cap: R$3.4 billion on 9/30/11

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

Page 5: Presentation

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

Page 6: Presentation

6

Products and Diversified Markets

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

Net Revenue 55% Exports / 45% Domestic Market

R$4.7 billion

Market Pulp 2nd eucalyptus market pulp producer

43%

Paper

57%

Printing and Writing

42%

Uncoated 2nd in Brazil with 30% market share

35%

Coated 1st in Brazil with 19% market share

7%

Paperboard 2nd in Brazil with 26% market share

13%

Note: Figures of last 12 months ending on 9/30/2011.

Other paper represented 2% of net revenue on the period.

The market share data includes paper imports.

Page 7: Presentation

7

Timeline

Suzano has over 80 years of operation.

1924 until 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.

Page 8: Presentation

8

Strategy – Suzano 2024

Forestry competency consolidates the pulp business and enables new business opportunities

in Biotechnology and Renewable Energy.

Operational

excellence

in paper

Wood pellets

Organic

growth

in pulp

Biotechnology

Forestry

Competency

Page 9: Presentation

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 Pulp

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

Page 10: Presentation

10

01 | Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Agenda

Page 11: Presentation

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.

2011

Total area (tsd ha) 1 800

Total planted area (tsd ha) 2 446

Own planted area (tsd ha) 1 343

Forest Partnership Program (tsd ha) 103

Own Preserved Area (tsd ha) 1 299

Average Distance in Bahia (km) 75

Average Distance in São Paulo (km) 246

Base 9/30/2011 1 Own and leased areas 2 Figures consider own, leased and third-parties areas

2011

Annual planting (tsd ha) 90

Planted seedlings / day (tsd) 368 Total: 188 tsd ha

Planted: 118 tsd ha

Total: 226 tsd ha

Planted:

131 tsd ha

Total: 385 tsd ha

Planted: 94 tsd 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.

Page 12: Presentation

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 mil 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

Page 13: Presentation

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(42 researchers: 2 PhDs and 8

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

Page 14: Presentation

Forestry Competitiveness in Brazil

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

14

44 41

25 25 20

13

6 4

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

Hardwood Productivity (m³/ha/year)

Suzano’s

Eucalyptus

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

Page 15: Presentation

15

Agenda

01 | Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Page 16: Presentation

Paperboard 2nd in Brazil

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

optimization, and strengthening of distribution channels.

658 591 643 733

504 524 513 518

1,162 1,115 1,156 1,251

2008 2009 2010 UDM

Sales Volume (tsd ton) Sales Destination – LTM1

Others

Europe

North Am.

South/Central Am. Brazil 59%

3%

17%

9% 12%

Domestic Market Exports

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

26%

Paper

Printing & Writing

Coated 1st in Brazil

Uncoated 2nd in Brazil

30%

19%

16 1 LTM - last 12 months ending on 9/30/2011

Suzano Market Share in the Domestic Market – LTM1

Page 17: Presentation

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

Pap

erb

oard

P

rin

tin

g &

Wri

tin

g

Average Net Price (base 100 in Oct/2008)

Paperboard

Domestic Market

Market dominance in high value added segments

Low level presence of imports

Growth of the consumer industry

Printing & Writing

Domestic Market

Imports: high concentration of coated

Exchange rate’s effects

Fiscal control of Immune paper operations

60

80

100

120

140

Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11

Domestic

Market

92

Exports

106

60

80

100

120

140

Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11

Domestic

Market

103

Exports

115

17 Note: Prices of domestic market in R$; prices of exports in US$

Average Net Price (base 100 in Oct/2008)

Page 18: Presentation

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 (tsd ton)

2,989

Uncoated

Paperboard3

Coated

972 1.837

2.366 54.180

2,017 { 652

1,365

Printing &

Writing1

Brazil

4,994

1,816

812

2,366

Latin America2

3,178 { 2.366

128,601

46,948

27,473

54,180

{ 81,653

CAGR 2011e – 2016e Brazil Latin America2 Global

Paperboard3 +3.3% +3.8% +3.0%

Printing & Writing1 +3.4% +3.2% +1.0%

Coated +3.2% +3.3% +1.0%

Uncoated +3.5% +3.2% +1.1%

18

Page 19: Presentation

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 tsd

EUA

233 kg/ha/year

GDP per capita: US$47 tsd

India

9 kg/ha/year

GDP per capita: US$1 tsd

Brazil

47 kg/ha/year

GDP per capita: US$11 tsd

19

North America

226 kg/ha/year

Latin America

44 kg/ha/year

Asia1

19 kg/ha/year

Europe

Western: 185 kg/ha/year

Eastern: 47 kg/ha/year

Page 20: Presentation

Coated Paper

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

Coated Paper Production and Demand (tsd ton)

Imports share in the Brazilian Market (%)

Measures adopted by the

Brazilian authorities to reduce

deviation use for tax exempt

paper and BRL depreciation

helped decreasing imports

market share

317 304 285 294

182

450 525

486

632

432

2007 2008 2009 2010 9M11

Production Demand

40% 44% 47%

57%

70% 69% 72% 66%

56% 60%

55% 56% 53%

2007 2008 2009 2010 jan-11 fev-11 mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11

2.00 1.95 1.84 Average

R$/US$ 1.76 1.68 1.69 1.66 1.59 1.61 1.59 1.56 1.60 1.74

RECOPI1 Licenses Fees

20

1 Brazilian Government Program to control tax exempt paper imports

Source: Bracelpa

Page 21: Presentation

21

Agenda

01 | Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Page 22: Presentation

Pulp Assets

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

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

Sales Volume (tsd ton)

Printing &

Writing

Tissue

Special

Others

Sales per Segment – LTM1

Europe

Asia

North Am.

South/Central Am.

Brazil

Pulp Sales Destinations – LTM1

20%

34%

34%

1%

11%

32%

37%

23%

8%

232 261 297 346

1,089

1,519 1,310 1,366

1,321

1,780 1,607

1,712

2008 2009 2010 LTM

Domestic Market Exports

22 1 Note: LTM - last 12 months ending on 9/30/2011

Page 23: Presentation

22

3

9

16

2011e

207

29 45

114

2011e

Pulp Organic Growth Fundamentals

Market pulp accounts for 13% of total fibers for paper production.

23 23

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

Source: Poyry (nov/2011) and Suzano

Mill

ion t

on

Printing &

Writing

Tissue

Paperboard

Corrugated

Newsprint

Others

395

Production (MM ton)

Minerals

51%

49%

72%

28%

8%

8%

128

50

Virgin fiber

Recycled

185

178

Global

production of

paper

Total fiber

consumption

363

395

BSKP3

50

Others

BHKP2

BEKP1

Pulp and Paper Production Chain – 2011e

Integrated

pulp

Market pulp

Market Pulp Demand opportunities:

1% reduction in recycled paper =

+1.9 MM ton/year of market pulp

1% reduction in integrated capacity =

+1.3 MM ton/year of market pulp

2% growth in paper consumption =

+1.0 MM ton/year of market pulp

Page 24: Presentation

Pulp Organic Growth Fundamentals

Demand for paper and paperboard is forecasted to grow 42 million tonnes (2010-2015e).

24 24 24

Paper and paperboard demand forecast until 2015e

0

50

100

150

200

250

300

350

400

450

1995 2000 2005 2010 2015e

Others1

Mill

ion t

on

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)

Page 25: Presentation

Sack

20% 40% 100% 60% 80%

Pulp Organic Growth Fundamentals

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

(% p

.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)

Page 26: Presentation

43 44 45 47 47 47 48 50 51 52 53 54

9 10

11

13 14

16 16 17

18 19

20 21

12 11

11 10 9 9 10 9 9 9 9

21 22 22 23

22 22 23

24 24 24 24 24

0

10

20

30

40

50

60

0

5

10

15

20

25

30

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

Market BEKP Other BHKP BSKP

Pulp Organic Growth Fundamentals

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

nn

es)

CAGR BEKP: +9.7%a.a | Other BHKP: -3.8%a.a.

.

CAGR BEKP: +5.5% a.a. | Other BHKP: -1.1%a.a.

Market Pulp Demand Projections (2011e – 2015e)

To

tal M

ark

et V

olu

me

(millio

n to

nn

es)

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

Source: Suzano and data from Poyry (nov/2011) and PPPC (sep/2011)

1 2 3

Page 27: Presentation

Brazilian Competitiviness Suzano is in the lowest cash cost region.

BC

625

Eastern

Canada

619

678

France

601 533

Sweden

592

Japan Finland

577

700

Russia

379

Japan

646

China

581

Canada

567

France

527

USA USA BC

Coast

444

Chile

519

Sweden

508

Finland

484

Iberia

443

Indonesia

417

Chile

368

Brazil

330

15,8 million tonnes 8,5 million tonnes 15,4 million tonnes

Low Cost High Cost High Cost Low Cost

2,9 MM ton

Hardwood Softwood

27

Source: Hawkins Wright (Oct/ 2011)

Cash Cost CIF / Europe (US$/tonne)

Page 28: Presentation

28

Agenda

01 | Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Page 29: Presentation

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

9

8

3

2 4

5

1

6

10

7

Maranhão Unit

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

Conceptual engineering

Basic engineering

Detailed engineering:

BOP1 and infrastructure

Management of BOP1

implementation and

infrastructure

1 Balance of Plant

Fonte: Poyry and Suzano

Page 30: Presentation

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 II

PLANNING

Ongoing

Phase III

EXECUTION

Ongoing

2011 2012 2013

Infrastructure

Civil work

Erection

Commissioning

Start up

Mar-12

Mar-13

4Q13

Aug-13

Sep - 13

Page 31: Presentation

Maranhão Project Construction Status 70% of suppliers already contracted.

31 31 31

Earth moving complete

Infrastructure work has started

Stacking in evaporation area (100% complete)

Stacking in boiler area (95% complete)

Construction of Water Treatment Facility and provisional Sewage Treatment

Facility (90% complete)

Construction of temporary sites (40% complete)

Approximately 1,800 people working on the construction of the Maranhão unit

Approximately 1,400 people working on the forestry base formation

The Secretary of the Environment of Maranhão State has issued:

Pre-Operational License

Planting License, which was renewed in October 2011

0% 20% 40% 60% 80% 100%

Industrial

Forest formation(planted area)

Completed Pending

Suppliers contracted

154,000 ha

Page 32: Presentation

Logistic Solution

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

32 32 32

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 Drawing

Page 33: Presentation

Capex Long term financing, grace period and competitive cost.

33

Maranhão Unit

Estimated Forest Capex US$ 575 million

Estimated Industrial Capex1 US$ 2,3 billion

1 Considers exchange rate of R$ 1,80/US$

Maranhão Unit

2011 2012 2013

Estimated Industrial Capex

20% 60% 20%

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 9M11 2011e

Forest 193 159 148 249

Industrial 0 4 547 905

Page 34: Presentation

34

Agenda

01 | Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Page 35: Presentation

35 35 35

FuturaGene Biotechnology is on the right side of Sustainability.

Base Case: Suzano Pulp and Paper

907

tsd ha

Less land utilization

Lower forest formation cost

Innovation

Less land utilization

Less water consumption

Less chemical expenditure

Higher carbon sequestration

2015e Planted Area

Necessidade de terras (ha)

Pro

du

tiv

idad

e

Yield Increase

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

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

Lan

d

uti

liza

tio

n

Page 36: Presentation

36 36 36

FuturaGene is present in 60% of the eucalyptus market

Well positioned to be world leader in forest biotechnology

India

3.9 MM ha

Brazil

3.7 MM ha

China

2.6 MM ha

South Africa

0.6 MM ha

Tailand

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

Page 37: Presentation

37

Agenda

01 | Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Page 38: Presentation

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.

38 38 38

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

Page 39: Presentation

39

Agenda

01 | Strategy

02 | Forestry

03 | Paper

04 | Pulp

05 | Maranhão Unit

06 | Biotechnology

07 | Suzano Renewable Energy

08 | Financial Results

Page 40: Presentation

40 40 40

Results Net Revenue and EBITDA

757 1,277 1,377

1,663 1,619 933

1,539 1,609 2,018 2,006

2007 2008 2009 2010 LTM

799

1,320

1,780 1,607 1,712

1,034

1,469 1,161

1,703 1,265

2007 2008 2009 2010 LTM

1,814 1,850 1,657 1,915 2,138

1,596 2,214 2,295

2,599 2,569 3,410

4,064 3,952 4,514 4,707

2007 2008 2009 2010 LTM

1,924

2,482 2,896 2,763

2,963

1,621 1,587 1,426 1,560 1,751

837 937 918 936 950

2,458 2,524 2,344 2,496 2,701

2007 2008 2009 2010 LTM

1,125 1,162

1,116 1,156

1,251

Net Revenue (R$ million) and Volume (tsd tonnes) EBITDA (R$ million) and EBITDA Margin (%)

Paper: Revenue (R$ million) and Volume (tsd tonnes) Pulp: Revenue (R$ million) and Volume (tsd tonnes)

1.65 1.95 1.84 2.00 1.76 Average

R$/US$

Domestic Market Exports Volume

1.65 1.95 1.84 2.00 1.76 Average

R$/US$

30.3%

36.2%

29.4%

37.7%

26.9%

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

LTM - last 12 months ending on 9/30/2011

Domestic Market Exports Volume Domestic Market Exports Volume

Page 41: Presentation

41 41 41

Debt Conservative financial policy.

41

Gross Debt (R$ million)

Short Term Long Term

1,492 1,864

5,707

310 34 699 8

6,386

Gross Debt(Jun/11)

Funding /Amortizations

Interest ForeignExchangeVariation

Others Gross Debt(Sep/11)

Debt increased, primarily due to the impact of the

exchange rate variation, with NO cash effect

Robust cash position: R$3.0 billion (Sep./11)

No short-term leverage difficulties: liquidity horizon

of approximately 28 months

The Company has been working on initiatives to

reduce leverage

7,199

8,250

Amortization Schedule (R$ million)

3,610

1,113

455 456

2,616

2011- 2013 2014 2015 2016 2017 onwards

Long-term debt profile

Funding: grace period and lengthier amortization, in

line with cash flow from the projects

Hedge for cash flow, but not for debt

No use of complex or exotic derivatives

Page 42: Presentation

42 42

Debt

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

1.6x 1.6x

2.7x

3.8x 3.7x 3.7x 3.5x

2.0x

4.2x

Ripasa

Acquisition

Implementation

of

Mucuri Project

Start up of

line 2 at

Mucuri

World

economic

crisis

1,647 1,616

2,475

3,919 4,285

5,459

4,111

3,421

5,291

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

1,161 1,703

1,265

2003 2004 2005 2006 2007 2008 2009 2010 sep/11

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

*

Conpacel

Acquisition

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

* EBITDA of the last 12 months ending on 9/30/2011

Primary

Offer

Bahia Sul

Incorporation

Page 43: Presentation

43

Investment Plan

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

0.5 0.5 0.5

3.0 3.5

1.7

3.5 4.0

2.2

2011e 2012e 2013e

Estimated Capex (R$ billion)

Sustain Growth

Note: figures do not include investments that may be outsourced

Divestment of Capim Branco (81 MW of installed capacity and 51 MW of assured energy)

Divestment of non-strategic lands

Strategic partnership for Suzano Renewable Energy

Energy pre-sale

Possibility of outsourcing activities

Sale of certain assets in the paper segment

Sale of interest in new projects in the pulp segment

Equity

Em

Es

tud

o

Un

de

r S

tud

y

On

go

ing

Actions to reduce leverage

Page 44: Presentation

Why to invest in Suzano?

44 44 44 44

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

Page 45: Presentation

Investor Relations

45 45 45 45

Investor Relations

www.suzano.com.br/ir

[email protected]

Page 46: Presentation

Board of Directors Experienced and active

46 46 46 46

DAVID FEFFER

Presidente

DANIEL FEFFER

V. Presidente

BORIS TABACOF

V. Presidente

CLÁUDIO SONDER

ANTONIO MEYER

OSCAR BERNARDES

MARCO BOLOGNA

NILDEMAR SECCHES

JORGE FEFFER

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. Vice President of Premesa S/A and Vocal.

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 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 Vocal and

Nemonorte, Chairman of Ecofuturo Institute’s Board of Directors.

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)

Page 47: Presentation

BERNARDO

SZPIGEL, 65

Executive Officers Distinguished management team

ANTONIO MACIEL NETO

ALBERTO MONTEIRO

ALEXANDRE YAMBANIS

ANDRÉ DORF

ERNESTO POUSADA

CARLOS ANIBAL

JOÃO COMÉRIO

CARLOS GRINER

47

Chief Executive Officer, also responsible for Strategy Department, 4 years at Suzano. Member of the Board of Director Member

of 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 Executive Officer of Suzano Renewable Energy and Suzano Pulp and Paper Executive Officer, responsible for

Corporate Development Department, 7 years at Suzano. Former Paper Business Unit Executive Officer (2005-2008). Former

Executive of JPMorgan in Brazil and NY (Investment Banking Global and Latin America), Chase Manhattan and Banco

Patrimônio/Salomon Brothers. Graduated in Business Administration at Fundação Getulio Vargas (FGV).

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.

Forest Business Unit Executive Officer, 3 years at Suzano. Former executive of Champion Pulp and Paper and International Paper

as Global Forestry Strategy Officer in the USA. Post graduated in Forest Science and Wood Technology at USP – Piracicaba.

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.

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 na Post graduated in Banking from FEA/USP.