Institutional Presentation Disclaimer Certain statements in this - - PowerPoint PPT Presentation

institutional
SMART_READER_LITE
LIVE PREVIEW

Institutional Presentation Disclaimer Certain statements in this - - PowerPoint PPT Presentation

Institutional Presentation 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 Companys actual results to


slide-1
SLIDE 1

Institutional Presentation

slide-2
SLIDE 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.

2

slide-3
SLIDE 3

01 | Corporate Overview 02 | Strategy 03 | Maranhão Project 04 | Pulp & Paper Industry 05 | Results

slide-4
SLIDE 4

Corporate Overview

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

  • Structural competitive advantages
  • 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 business: biotechnology
  • Market cap: R$9.7 billion on 09/30/13

Controlling Group Treasury 56% 2% Capital Structure (September/13) Free Float 42%

Forests Ports Mills Railroad “Carajás” Railroad Maranhão “Norte e Sul” Railroad Itaqui Port Mucuri Portocel Vitória Santos Piauí Limeira Suzano Embu Rio Verde

4

slide-5
SLIDE 5

Production Capacity

Suzano’s production capacity has increased by 70% in the last 6 years. The start up

  • f Maranhão Unit will increase its capacity to 4.7 MM ton/year of pulp and paper

784 915 1.080 1.100 1.100 1.100 1.100 1.290 1.290 1.290 456 570 640 820 1.650 1.750 1.750 1.920 1.920 3.420 1.240 1.485 1.720 1.920 2.750 2.850 2.850 3.210 3.210 4.710 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e

Maranhão Unit

Production Capacity

(‘000 tons)

(‘000 ton) Pulp Paper Unit Integrated Market Pulp Uncoated Coated Paperboard Maranhão*

  • 1,500
  • Mucuri

200 1,540 250

  • Suzano

460 40 270 90 200 Limeira 310 340 280 100

  • Rio Verde
  • 50
  • Embu
  • 50

Total 970 3,420 850 190 250

Pulp Paper

Note: *Maranhão Unit is scheduled to start up in December 2013

5

slide-6
SLIDE 6

Diversified and Complementing Product Portfolio

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

52% Exports / 48% Domestic Market

R$ 5.5 billion

Market Pulp

2nd eucalyptus market pulp producer

45%

Paper

55%

Printing and Writing

41%

Uncoated

2nd in Brazil with 35% market share

32%

Coated

1st in Brazil with 35% market share

9%

Paperboard

1st in Brazil with 27% market share

12%

Note: Figures of last 12 months ending on 09/30/2013. Other paper represented 2% of net revenue on the period. The market share data includes paper imports.

6

slide-7
SLIDE 7

Timeline

Suzano has over 80 years of operation.

7

1924 to 1940 1950 1960 to 1990 2000 2013

1939 1955 1956 1960 1975 1982 2005 2004 2010 1992 2007 2008 1924 2012

FINANCIAL SHIELDS

Equity Offering

2013

Start up of Maranhão Unit

Beginning of

  • perations in the

paper industry

Start up of the first paper mill Leon Feffer starts paper trading activities

First investment in the pulp sector

Acquisition of Suzano mill Pioneerism in eucalyptus plantation

Growth and diversification in the pulp and paper businesses

Beginning of paper exports to Europe Start up of Bahia Sul Acquisition of Indústrias de Papel Rio Verde’s control Launch of Report paper

Consolidation as one of the largest Brazilian Groups

Acquisition of Ripasa (50%) Merger with Bahia Sul Start up of Line 2 at Mucuri Adoption of Bovespa’s Level I corporate governance standards and Professional Management New Growth Cycle Acquisition of FuturaGene, PLC. Acquisition of 50% of Conpacel and KSR.

slide-8
SLIDE 8

Forestry Assets

Suzano’s investment in R&D over many years allows the Company to expand its forestry assets to the northeast region of Brazil

2013 Total area (k ha) 1 854 Total planted area (k ha) 2 447 Own planted area (k ha) 1 360 Forest Partnership Program (k ha) 86 Own Preserved Area (k ha)1 339 Average Distance in Bahia (km)2 73 Average Distance in São Paulo (km)2 237

Base 09/30/2013

1 Own and leased areas 2 Figures consider own, leased and third-parties areas

2013 Annual planting (k ha) 53 Planted seedlings / day (k) 217

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

SP Total: 187 k ha Planted: 138 k ha BA, ES and MG Total: 262 k ha Planted: 190 k ha MA, PI and TO Total: 405 k ha Planted: 119 k ha

SP MG BA ES TO PI MA

8

slide-9
SLIDE 9

Forestry Competitiveness in Brazil

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

Competitive Advantages - Brazil

  • Availability of productive land
  • Excellent soil and climate conditions
  • Short harvesting cycle for planted forests
  • Opportunity to recover degraded areas
  • Low establishments and maintenance costs

40 22 20 18 15 12 6 Brazil Australia Chile South Africa USA Portugal Finland

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

5.5 adtm1/ha/year 10.5 adtm1/ha/year Biotechnology 1980 2013

+100%

  • More wood / hectare
  • More pulp / m³
  • Superior quality
  • Smaller area
  • Decreasing costs / m³

Source: Suzano

1Admt: air dried metric ton

Hardwood Productivity (m3/ha/year) Pulp Productivity

9

slide-10
SLIDE 10

01 | Corporate Overview 02 | Strategy 03 | Maranhão Project 04 | Pulp & Paper Industry 05 | Results

slide-11
SLIDE 11

2013

Focus on profitability

Maximize return

  • n assets

Deleveraging Maranhão Unit start up in December/13

11

slide-12
SLIDE 12

Assets Profitability Deleveraging Maranhão Project

Short-Term Actions Long-Term Actions

Focus 2013

Price discipline Optimization of region and client mix Increase in direct sales Expansion of client base Reduction of costs and expenses Integrated logistics with synergy gains Investments to increase productivity FuturaGene: biotechnology boosts Suzano’s competitiveness Reduction in average distance Retrofitting of mills Standardization and modernization of harvesting fleet 12

slide-13
SLIDE 13

Assets Profitability Deleveraging Maranhão Project

Focus 2013

  • EBITDA growth
  • Debt management: longer terms and lower cost
  • Optimization of working capital: management of inventories, prepayment of receivables and

lengthening of supplier payment terms

  • Maranhão Project capex Management
  • Maranhão Unit cash generation

Average Cost of Debt (%) Average Debt Maturity (years) Amortization (R$ million)

4,7% 4,7% 5,2% 8,6% 7,9% 9,1% Sep/13 Jun/13 Sep/12 R$ US$ 4,6 4,7 4,5 Sep/13 Jun/13 Sep/12 3.605 321 724 876 1.897 1.839 1.229 5.064

Cash 4Q13 2014 2015 2016 2017 2018 2019

  • nward

Debt Profile

Long Term 88% Short Term 12% Long Term 93% Short |Term 7%

September / 2012 September / 2013

13

slide-14
SLIDE 14

01 | Corporate Overview 02 | Strategy 03 | Maranhão Project 04 | Pulp & Paper Industry 05 | Results

slide-15
SLIDE 15

Focus 2013

Foresty

  • 25 year research history in the region
  • Annual production capacity of 15 million of

seedlings

  • Competitive cost of land
  • ~ 70% of own wood supply in the long term

Industrial

  • Start up scheduled for December/13
  • 1.5 million ton/year eucalyptus market pulp
  • 100MW surplus of energy production
  • State-of-the-art technology and top tier equipment

suppliers contracted

  • Capacitar Project

Logistics

  • Outbound logistics based on railways
  • Export through a port located in the region of São Luís
  • Strategically located for pulp distribution to the North

American and European markets

Norte Sul Railway Ferro Carajás Railway Maranhão Unit- Imperatriz

Assets Profitability Deleveraging Maranhão Project

15

slide-16
SLIDE 16

Assets Profitability Deleveraging Maranhão Project

Competitive Advantages of the Maranhão Project The Maranhão Unit is in the commissioning phase with its startup estimated for December/13 Competitive Advantages

Logistics 100% via railways Exports via Itaqui Port Ease of training local labor Tax incentives Reduction of 75% in income tax rate Incentive in the form of accelerated depreciation

Structural advantages Operational Reliability

Two dryers and two lime kilns Senior team on critical positions (internal recruitment) Metso service center On-site technical support from Metso Learning curve guaranteed in contract with Metso from start-up for a period of 18 months 16

slide-17
SLIDE 17

Assets Profitability Deleveraging Maranhão Project

Investment in Maranhão Project is on budget

Maranhão Unit CAPEX

(R$ million)

2009 2010 2011 2012 9M13 Total 193 162 841 2,123 1,378 4,697

Sources of Funds

  • BNDES: R$2.7 billion funding, 12 years to pay and 3-year grace period
  • Mandatory convertible debentures: R$1.2 billion
  • Foreign funding for imported equipment (ECAs among others)
  • Cash flow generation

T

  • tal Investment

(US$ million)

575 2,400 Forest Industrial

April 2011 April 2012 November 2012 September 2013 January 2012

17

slide-18
SLIDE 18

Assets Profitability Deleveraging Maranhão Project

Overall physical civil works: 94% Construction: 98% Electro-mechanical assembly: 84% Commissioning: 33%

Maranhão Project status

18

slide-19
SLIDE 19

01 | Corporate Overview 02 | Strategy 03 | Maranhão Project 04 | Pulp & Paper Industry 05 | Results

slide-20
SLIDE 20

World Paper Supply and Demand by Region

World paper demand is estimated to grow 1.9% p.a. from 2013 to 2017, driven by emerging economies, while supply is projected to grow 1.8% p.a. during the period

Paper Global Demand

(million tons)

Paper Global Supply

(million tons)

23 24 25 29 25 27 28 31 158 180 186 211 18 21 22 25 77 74 74 74 83 77 77 75 385 404 413 445 2009 2012 2013e 2017e 13 13 14 17 19 21 21 24 156 178 184 208 16 18 19 22 91 89 89 89 91 86 86 84 388 406 414 445 2009 2012 2013e 2017e

CAGR Demand 2009 - 2012 2013e - 2017e North America

  • 2.3%
  • 0.6%

Western Europe

  • 1.2%
  • 0.2%

Eastern Europe +4.0% +3.5% Asia +4.4% +3.1% Latin America +3.0% +2.6% Others* +2.1% +3.3% Total +1.6% +1.9% CAGR Supply 2009 - 2012 2013e - 2017e North America

  • 1.7%
  • 0.5%

Western Europe

  • 0.8%

0.0% Eastern Europe +3.3% +4.0% Asia +4.5% +3.1% Latin America +2.4% +3.0% Others* +1.7% +4.4% Total +1.5% +1.8%

North America Western Europe Eastern Europe Asia Latin America Others*

Note: *Others includes Middle East and Africa Source: Poyry (2013)

20

slide-21
SLIDE 21

World Paper Supply and Demand by Segment

World paper demand growth is driven by tissue and paperboard segments

34 32 31 30 135 149 154 174 35 35 35 36 45 49 50 56 27 30 31 36 109 110 111 113 385 404 413 445 2009 2012 2013e 2017e 34 32 32 30 135 149 155 174 33 34 34 36 46 49 51 56 27 30 31 36 112 111 111 113 388 406 414 445 2009 2012 2013e 2017e

CAGR Demand 2009 - 2012 2013e - 2017e Printing & Writing +0.2% +0.5% Tissue +3.3% +3.5% Paperboard +2.5% +2.8% Specialties +0.2% +0.6% Others* +3.3% +3.0% Newsprint

  • 2.1%
  • 1.1%

Total +1.6% +1.9% CAGR Supply 2009 - 2012 2013e - 2017e Printing & Writing

  • 0.3%

+0.3% Tissue +3.3% +3.5% Paperboard +2.2% +2.5% Specialties +0.8% +1.0% Others* +3.4% +3.0% Newsprint

  • 2.1%
  • 1.3%

Total +1.5% +1.8%

Printing & Writing Tissue Paperboard Specialties Others* Newsprint

Note: *Others Includes corrugated and sackkraft paper, products with little or no virgin fiber consumption Source: Poyry (2013)

Paper Global Demand

(million tons)

Paper Global Supply

(million tons)

21

slide-22
SLIDE 22

World Printing & Writing Paper Supply and Demand

Demand growth in the P&W segment is driven by emerging economies

Printing & Writing Paper Global Demand

(million tons)

Printing & Writing Paper Global Supply

(million tons)

7 7 7 8 6 6 6 7 42 47 48 52 5 5 6 6 25 23 22 20 24 21 21 19 109 110 110 113 2009 2012 2013e 2017e 2 2 2 2 4 4 5 5 45 50 51 56 3 3 3 4 34 31 30 28 24 21 20 18 112 111 111 113 2009 2012 2013e 2017e

CAGR Demand 2009 - 2012 2013e - 2017e North America

  • 4.4%
  • 2.5%

Western Europe

  • 3.2%
  • 2.3%

Eastern Europe +2.7% +2.8% Asia +3.6% +2.3% Latin America +2.5% +1.3% Others* +1.8% +2.5% Total +0.2% +0.5% CAGR Supply 2009 - 2012 2013e - 2017e North America

  • 4.3%
  • 3.1%

Western Europe

  • 2.6%
  • 1.7%

Eastern Europe +0.9% +4.3% Asia +3.5% +2.3% Latin America +0.6% +1.8% Others*

  • 2.7%

+2.3% Total

  • 0.3%

+0.3%

Note: *Others includes Middle East and Africa Source: Poyry (2013)

North America Western Europe Eastern Europe Asia Latin America Others*

22

slide-23
SLIDE 23

World Paperboard Supply and Demand

Paperboard Global Demand

(million tons)

Paperboard Global Supply

(million tons)

The paperboard segment represents 12% of the world paper market. Market estimates point to growth in demand and production of this paper across all regions

2 2 2 3 2 2 2 3 21 24 25 30 2 3 3 3 8 8 9 9 9 9 9 9 45 49 50 56 2009 2012 2013e 2017e 1 1 1 2 2 2 2 3 20 24 24 28 2 2 2 2 11 11 11 11 10 10 10 10 46 49 51 56 2009 2012 2013e 2017e

CAGR Demand 2009 - 2012 2013e - 2017e North America

  • 1.3%

+0.4% Western Europe

  • 0.4%

+1.0% Eastern Europe +5.3% +3.3% Asia +5.3% +4.0% Latin America +3.3% +3.2% Others* +0.1% +3.3% Total +2.5% +2.8% CAGR Supply 2009 - 2012 2013e - 2017e North America

  • 0.9%

+0.4% Western Europe

  • 1.0%

+0.8% Eastern Europe +3.7% +4.1% Asia +5.3% +3.8% Latin America +3.5% +3.1% Others* 0.0% +4.3% Total +2.2% +2.5%

North America Western Europe Eastern Europe Asia Latin America Others*

Note: *Others includes Middle East and Africa Source: Poyry (2013)

23

slide-24
SLIDE 24

1 2 2 2 3 3 3 4 8 10 11 13 1 1 1 2 6 6 7 7 7 7 8 8 27 30 31 36 2009 2012 2013e 2017e 2 2 2 2 3 3 3 4 8 10 10 13 1 2 2 2 6 6 7 7 7 8 8 8 27 30 31 36 2009 2012 2013e 2017e

World Tissue Supply and Demand

Demographic growth drives demand for tissue in developed countries. In emerging countries, the penetration of these papers is very low, providing greater opportunities for demand growth

Tissue Global Demand

(million tons)

Tissue Global Supply

(million tons)

CAGR Demand 2009 - 2012 2013e - 2017e North America +0.4% +0.9% Western Europe +2.1% +2.0% Eastern Europe +4.3% +5.3% Asia +6.3% +5.2% Latin America +4.2% +4.2% Others* +4.0% +5.7% Total +3.3% +3.5% CAGR Supply 2009 - 2012 2013e - 2017e North America +0.3% +1.0% Western Europe +2.2% +1.9% Eastern Europe +4.0% +6.0% Asia +6.3% +5.1% Latin America +3.8% +4.5% Others* +4.5% +6.2% Total +3.3% +3.5%

North America Western Europe Eastern Europe Asia Latin America Others*

Note: *Others includes Middle East and Africa Source: Poyry (2013)

24

slide-25
SLIDE 25

Per-capita Consumption of Tissue

Demand for tissue is impacted by cultural factors, the economic growth (GDP) and the development of the country (urbanization). The share of this segment in total paper demand should increase driven by higher demand in emerging countries

Per-capita Consumption of Tissue

(Kg/person/year)

24 21 20 20 19 19 18 18 18 18 17 16 16 11 8 8 7 5 5 4 0,1 USA Canada Sweden Norway Macau Switzerland Finland Hong Kong Denmark Austria Germany UK Iceland Chile Mexico Uruguay Argentina Brazil Colombia China India Source: World Tissue Business Outlook – RISI (2013)

25

slide-26
SLIDE 26

World Market Pulp Supply and Demand

Market Pulp Global Demand

(million tons)

Market Pulp Global Supply

(million tons)

Expectations of a scenario marked by supply and demand in balance. The growth in market pulp demand is driven by pulp consumption in Asia, which has invested in non- integrated paper mills. Supply growth is driven by Latin America, the most competitive region for pulp production

CAGR Demand 2009 - 2012 2013e - 2017e North America

  • 4.8%
  • 1.5%

Europe

  • 0.6%

+0.3% Asia +5.1% +4.1% Latin America +8.6% +4.8% Others* +4.9% +3.7% Total +3.2% +2.7%

North America Europe Latin America Asia Others*

CAGR Supply 2009 - 2012 2013e - 2017e North America +0.6% 0.0% Europe +1.6% +0.4% Asia +5.2% +1.4% Latin America +7.2% +6.2% Others*

  • 3.2%

+0.4% Total +3.2% +2.3%

Note: *Others includes Middle East and Africa Source: Poyry (2013)

26

2 3 3 3 19 24 26 31 3 4 4 4 18 18 18 18 7 6 6 6 50 55 57 63 2009 2012 2013e 2017e 1 1 1 1 7 9 9 9 13 16 18 23 14 14 15 15 16 16 16 16 52 57 59 65 2009 2012 2013e 2017e

slide-27
SLIDE 27

Pulp and Paper Production Chain

1 Bleached Eucalyptus Kraft Pulp | 2 Bleached Hardwood Kraft Pulp | 3 Bleached Softwood Kraft Pulp | 4 Includes Unbleached Kraft Pulp and sulphite |

Source: Poyry (2013) and PPPC (Sep/13)

25 2 10 19 2013e 221 31 51 111 2013e Corrugated Newsprint Others Million ton Printing & Writing Tissue Paperboard 414

Total fiber consumption

BSKP3 57 Others4 BHKP2 BEKP1

Recycled Virgin fiber Non-wood, Mechanical Pulp and Integrated Pulp Market pulp

56% 44% 70% 30% 130 57 237 187 424

27

slide-28
SLIDE 28

Competitiveness of Eucalyptus Pulp

Eucalyptus fiber is gaining market worldwide and gradually reducing the price spread between hardwood pulp and softwood pulp

1 Market Pulp: Excludes Mechanical Pulp | 2 Bleached Eucalyptus Kraft Pulp | 3 Others Bleached Hardwood Kraft Pulp | 4 Bleached Softwood Kraft Pulp 5 Includes sulphite and unbleached pulp

Source: PPPC (Sep/2013)

CAGR

BEKP: +7.9%p.a | Others BHKP: -2.3%p.a.

CAGR

BEKP: +6.7% p.a. | Others BHKP: -3.2%p.a. 28

49 50 50 50 50 53 55 57 59 60 62 63 11 13 14 16 16 17 18 19 21 22 24 25 12 11 10 9 9 10 10 10 10 10 9 9 23 23 22 22 22 23 24 25 25 26 26 27 4 3 3 3 3 3 3 2 2 3 3 3 10 20 30 40 50 60 70 5 10 15 20 25 30 35 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e 2017e Total Market Volume (million ton) Volume by Fiber Type (Million ton) Market Pulp BEKP Others BHKP BSKP Others

1 3 4 2 5

slide-29
SLIDE 29

Pulp Production Cost

New pulp projects are located in low-cost regions, most of them in South America. Brazil is the main destination for global investments

Cash Cost CIF / Europe

(US$/ton) 23.3 MM ton

*Others includes New Zeland, Argentina, China and South Africa Source: Hawkins Wright (Jul/13)

19.4 MM ton

Low Cost High Cost High Cost

6.6 MM ton 6.7 MM ton

Low Cost

Hardwood Softwood

South of USA 500 Chile Russia 423 553 Japan 642 West Canada 670 East Canada 685 572 Others* 576 Sweden 607 BC Coast 424 North of USA Japan 608 Canada 603 China 570 North of USA 566 Sweden 531 France 521 570 France Finland 521 Other Asia 516 Finland 512 South of USA 480 Africa 453 Indonesia 432 Iberian Countries 430 Chile 390 Russia 386 Brazil 370

29

slide-30
SLIDE 30

Balanced Market Outlook

Source: Hawkins Wright (Oct/2013) and Suzano Pulp Business Department

+4.0 Mt

New Paper Capacity

+5.0 Mt Tissue

  • 1.0 Mt

P&W

New Paper Capacity per segment

Considering 40%

  • f Virgin Fiber consumption

Considering 70%

  • f Virgin Fiber consumption

+3.5 Mt

  • 0.4 Mt

Consumption

  • f virgin fiber

Virgin Fiber demand New Pulp Capacity New Pulp Capacity Pulp Capacity Closures

+3.1 Mt +1.8 Mt

Oji (+440Kt) Ilim (+490Kt) Montes del Plata (+1300Kt) Suzano (+1500Kt) Others (+395Kt)

Jari (-420Kt) Domtar (-120Kt) Cloquet (-450Kt) Tofte (-400Kt) Others (-940Kt)

Supply/Demand Balanced Outlook

30

New Pulp and Paper Capacities until the end of 2014

slide-31
SLIDE 31

01 | Corporate Overview 02 | Strategy 03 | Maranhão Project 04 | Pulp & Paper Industry 05 | Results

slide-32
SLIDE 32

1.310 1.445 1.435 1.455 297 363 412 409 1.607 1.808 1.847 1.864 2010 2011 2012 LTM¹ 1.617 1.824 1.876 1.981 2010 2011 2012 LTM¹

Operating Result – Pulp Business

Presence in main international markets and strategic relationship with clients with 80% of total sales through long-term contracts

Pulp Production

(‘000 tons)

Pulp Sales Volume

(‘000 tons)

Pulp Sales Volume per Region

LTM¹

Pulp Sales per Segment

LTM¹

Domestic Market Export

Europe 31% Brazil 22% South / Central America 1% Asia 36% North America 10% Packaging 10% Tissue 46% Special 23% Others 3% P & W 18%

Note: ¹Figures of last 12 months ending on 09/30/2013.

32

slide-33
SLIDE 33

513 532 452 399 643 803 895 901 1.156 1.335 1.347 1.300 2010 2011 2012 LTM¹ 2.745 1.287 1.311 1.295 2010 2011 2012 LTM¹

Operating Result – Paper Business

Operational excellence in paper: management of revenue and product portfolio,

  • ptimization of assets, and strengthening of distribution channel

Paper Production

(‘000 tons)

Paper Sales Volume

(‘000 tons)

Paper Sales Volume per Region

LTM¹ Europe 5% Brazil 69% South / Central America 13% Others 1% North America 11%

Note: ¹Figures of last 12 months ending on 09/30/2013.

Suzano’s Strategy

  • Consolidation of the leadership position in the domestic market
  • Improvement in sales mix between the domestic and export markets
  • Unique model of joint operations with the distribution channel in Latin

America

  • Estimated share of Latin America in the sales mix in 2017: 95%

Domestic Market Export

33

slide-34
SLIDE 34

228 248 248 250 288 334 404 383 516 582 652 634 2010 2011 2012 LTM¹ 1.519 1.141 1.260 1.642 2010 2011 2012 LTM¹ 33,7% 23,5% 24,3% 29,9%

Financial Result

Continuous focus on increasing operating income

Net Revenue

(R$ million)

COGS per ton

(R$/ton)

SG&A

(R$ million)

Adjusted EBITDA and Adjusted EBITDA Margin

(R$ million) (%) 2.018 2.013 2.188 2.464 2.495 2.835 3.004 3.034 4.513 4.848 5.192 5.499 2010 2011 2012 LTM¹

Average R$/US$ 2.10 1.76 1.67 1.89

Pulp Paper 187 185 204 200 Sales Administratives SG&A / Ton (R$/ton)

Note: ¹Figures of last 12 months ending on 09/30/2013. ²Cash Cost including downtime

Adjusted EBITDA Adjusted EBITDA Margin 608 595 562 466 670 669 638 674 1.278 1.264 1.200 1.140 LTM¹ 2012 2011 2010 +5.3% +5.3% +1.1% +6.3% +5.7% +5.9% Inflation Cash Cost² Other production costs

34

slide-35
SLIDE 35

Stock Performance

Stock Performance - SUZB5

(100 basis: Sep/12 - Sep/13)

Liquidity Performance - SUZB5

(R$ million) (Trade number) 19 13 25 35 2.098 2.894 6.574 8.214 2010 2011 2012 LTM¹ Daily financial volume (R$ million) Daily trade number

¹Figures of last 12 months ending on 09/30/2013. Source: Bloomberg

35

SUZB5 +66% Ibovespa

  • 12%

IBrX-50 +0%

20 40 60 80 100 120 140 160 180 200 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13

slide-36
SLIDE 36

Investor Relations

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

36