2Q16 Results Disclaimer The statements in this presentation - - PowerPoint PPT Presentation

2Q16 Results

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The statements in this presentation constitute projections or forward-looking

• statements. Such statements are subject to known and unknown risks and

uncertainties that could cause the expectations expressed to not materialize

• r the actual results to differ materially from the expected results. These risks

include changes in future demand for the Company’s products, changes in factors that affect domestic and international product prices, changes in cost structures, changes in the seasonality of markets, pricing actions by competitors, foreign currency fluctuations and changes in the political and economic environments in Brazil, in emerging markets or internationally.

Disclaimer

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Increasing operational performance with capital discipline

1.1 1.5 2.2 3.5 3.7 3.8

dec/13 dec/14 jun/15 dec/15 mar/16 jun/16

Note: (1) Operating cash generation considers Adjusted EBITDA less Sustaining CAPEX

(2) Last twelve months

5.2x 4.1x 3.3x 2.7x 2.3x 2.1x

dec/13 dec/14 jun/15 dec/15 mar/16 jun/16

Record-high Revenue, Adjusted EBITDA and Operating Cash Generation in the LTM

• f R$10.9 billion, R$4.94 billion and R$3.8 billion, respectively

Lower cash cost in 2Q16 (ex-maintenance downtime): R$636/ton (-R$18/ton vs. 1Q16) COGS +0,5% and SG&A -9% vs Inflation of +8,8% (2Q16 vs. 2Q15) 2Q16 Adjusted EBITDA of R$803/ton shows the resilience of the paper industry Strong Operating Cash Generation in 2Q16: R$ 723 million

OPERATING CASH GENERATION¹ LTM² (R$ billion) NET DEBT/ADJUSTED EBITDA LTM² (x)

Liability Management: Debt Dollarization, implemented in July/2016, reinforces management and financial strength

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293 297 298 587 595 2Q15 1Q16 2Q16 6M15 6M16

Brazilian demand impacted by the macroeconomic scenario (-5.7% in 2Q16 vs 2Q15) Paper Sales¹ (‘000 tons) Paper Production¹ (‘000 tons)

Paper Price increase implemented in the Brazilian market

103 88 102 187 190 196 184 192 360 376

299 272 294 547 566 2Q15 1Q16 2Q16 6M15 6M16 Exports Domestic Market

Note¹: Data excludes Embu Unit results

Paper price increase implemented in the Brazilian market, as announced, in the uncoated printing & writing and paperboard segments Improvements in Suzano’s Go-To-Market Project in Brazil (Suzano+ Program) Market share gain in coated P&W paper segment Fire at Suzano Mill: impact on EBITDA from the insurance deductible (non-recurring) and inventory and production losses of 15,000 tons (3Q16 volume)

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804 912 816 1,600 1,728 2Q15 1Q16 2Q16 6M15 6M16

Production impacted by longer maintenance downtime in Imperatriz Mill, due to the first investments for the implementation of Project 5.1 and planned ramp up

Pulp Margin impacted by list price reduction and FX

700 806 799 1,421 1,604 105 100 112 241 212

805 906 910 1,662 1,816 2Q15 1Q16 2Q16 6M15 6M16 Exports Domestic Market

Pulp Sales (‘000 tons) Pulp Production (‘000 tons) Global demand improving: pulp shipments +4.2% and eucalyptus pulp + 8.7% ( 2Q16 vs 2Q15) Inventory reduction in 2Q16: 94,000 tons

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Cash cost decrease reflects focus on strategic pillar of Structural Competitiveness

Consolidated Pulp Cash Cost Ex-Maintenance Downtime (R$/ton) Trend of cash cost reduction::

• Continuous third-party wood and average distance reduction in the supply mix at

Mucuri Mill

• Better chemical consumption

626 636 654 (19) 25 4 (22) (11) 16 2Q15 Wood Chemicals Fixed Cost 2Q16 Wood Chemicals Fixed Cost 1Q16

Inflation

• n:

: +8.8% + 1.5% Inflation

• n:

: +1.7% .7%

• 2.7%

+ R$ 10/ton

• n
• R$ 18/ton
• n

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2,382 2,708 2,503 959 1,269 967 2Q15 1Q16 2Q16 Revenue Adjusted EBITDA

Consistency on costs and expenses below inflation

Average age PIX Europe

• pe (US$/ton)

762 693 693 781 Average age FX (R$/US$) ) 3.91 3.51 3.07

COGS (R$/ton)

1,388 1,350 1,395 2Q15 1Q16 2Q16

SG&A. / Sales Volume (R$/ton)

188 170 171 2Q15 1Q16 2Q16

Inflati tion

• n:

: +8.8%

• 9.0%

Inflation

• n:

: +8.8% +0.5%

Revenue and Adjusted EBITDA (R$ million)

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Paper business resiliency in moments of pulp market turbulence

Investments in adjacent businesses seek to reduce results volatility

Adjusted EBITDA (R$ / ton)

1,075 (10) 803 40 (257) (44) (1) 1Q16 Paper Pulp COGS SG&A Others¹ 2Q16

Note: ¹Others includes depreciation, amortization and depletion; other operating income/expenses; and non-recurring adjustments.

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4.4% 4.3% 4.0% 4.7% 84.2% 89.9% 91.8% Post Bond¹ Jun/16 Jun/15 Jun/14 6.1x 4.2x 2.6x 4.5x 3.3x 2.1x Jun/14 Jun/15 Jun/16

Gross Debt Net Debt

• f CDI
• f CDI
• f CDI

Dollarization and debt maturity profile reinforce financial strength

Debt / Adjusted EBITDA (x) Average Cost of Debt (%) Gross Debt: R$14.4 billion Cash Position of R$ 4.2 billion

BRL USD

Debt Profile Post Bond Green Bonds: US$ 500 million @ 5.75% coupon Average debt maturity of 3.6 years (vs 3.0 years in 2Q16) Gross Debt / Adjusted EBTIDA: 2.9x

Note: ¹Post Bond includes derivatives for debt swap

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CAPEX reduction, with projects on time and unchanged scope, reinforces financial discipline

Savings from negotiation and fx, and also from payments postponements

CAPEX (R$ billion) 6M16 2016e 2016Revised SUSTAINING 0.6 1.1 1.1 MODERNIZATION AND EXPANSION 0.4 1.3 1.0 TOTAL 1.0 2.4 2.1

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... and on value creation to shareholders Flexibility in capital allocation: priority on the deleveraging ...

BETTER EVERYDA Y STRONG AND KIND

www.suzano.com.br/ir ri@suzano.com.br