Investor Presentation December 2008
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
Key Messages • Market leader in the regional paper industry and one of the top 10 in the global pulp industry • One of the lowest cost producers in the world • Solid growth strategy • Strong management team and organizational structure • Adequate capital structure 3
Corporate Overview
Ownership and Management: A Powerful Combination Profitable and sustainable growth DEFINED CONTROLLING PROFESSIONAL CAPITAL MARKETS GROUP MANAGEMENT Assessment of management Reputation Capital Discipline performance Long term vision Rapid decision-making Transparency Funding for growth Process 5
Ownership Structure 46% in free float Controlling shareholders Free Float (Suzano Holding and Related Persons) ON 95.0% PNA 70.9% PNA 28.6% PNB 11.2% PNB 0.6% TC 46.3% TC 51.2% Total Capital (# of shares) Note: ON 107,821,512 ON = Voting Shares PNA = Non voting/Pref. A PNA 205,120,105 PNB = Non voting/ Pref. B TC = Total Capital PNB 1,540,879 Total 314,482,496 Note: In treasury, there are 5,428,955 of ON, 1,009,583 of PNA and 1,358,419 of PNB representing 2.5% of total shares. These shares were not included in free float. 6
Suzano Second largest eucalyptus pulp New growth cycle producer in the world and one of the top 10 in market pulp. Regional leader in the paper market. Plantations and products certified by the FSC. New growth cycle: from 2.8 to 7.2 million tons per year of paper and pulp. Solid business structure abroad: Argentina, England, United States, Switzerland and China. 7
Diversified products and markets High quality and technology Paper (62% of net revenue) Market pulp Printing and writing (48% of net revenue) Cartonboard (38% of net (14% net rev.) revenue) Uncoated (40% net rev.) Coated (8% net rev.) #2 in Brazil #1 in Brazil #1 in Brazil market share 28% market share 23% market share 29% 54% in exports 46% in the domestic market R$ 4.1 billion in net revenue Note: Market share numbers include paper imports. 8
Lands and forests Suzano’s production is based on 100% of renewable eucalyptus planted forests, preserving a native forest area of 39% (19% above Brazilian environmental Legislation requirements). Owned land (tsd ha) Areas of Activity and Flow of Production State Total Planted São Paulo 89 49 Average distance of forests: 74 Km BA e ES 194 117 Minas Gerais 77 29 Maranhão 112 1 Conpacel* (SP) 53 38 Portocel Vitória Port Total SPC** 525 233 Average distance of 90 Independent farmers forests: 211 Km * Conpacel: corresponds to 50% of Ripasa’s area. ** It does not include new sites announced. Santos Port Preservation: 201 tsd ha. Note: 91 hectares are allocated to infrastructure or are available for planting. 9
Challenging goals and cutting-edge technology Forest Yield Evolution (m 3 /ha/year) Monoprogeny planting Biotechnology Soils and nutrition 45 Clones Classical improvement 31 29 21 Seeds Performance 1960 1970 1991 1998 2008 Productivity (mtons / ha / year) Evolução do Rendimento em celulose (tsa/ha/ano) Technologic Innovation Biotechnology More wood/ ha 70% a 100% Classical improvement More pulp/ m 3 100% 11 5.5 Higher quality Less Area Lower Costs 1980 2000 2020 (projection) 10
Organizational Structure BD Committees Board of Directors (BD) Management 9 members (4 independent) Sustainability & Strategy CEO Audit SP Forest BU Pulp BU Paper BU Operations SP BU: Business Unit Strategy, Corporate Dev. & IR Objectives: SP Finance • Greater customer focus SP • Improved accountability Human Resources • Development of leaders SP: Service Providers 11
Board of Directors experienced and active Experience of 35 years in the pulp and paper industry. CEO of Suzano Holding S/A and Chairman of the Board of Directors of Suzano DAVID FEFFER, 52 Pulp and Paper S/A. Graduated in Business Administration in Brazil and attended specialization courses in Columbia University Chairman (USA) and IMD (Switzerland). Experience of 31 years in the pulp and paper industry. Member of Sustainability. and Strategy Committee, Chairman of Polpar’s DANIEL FEFFER, 48 Board of Directors, President of Premesa, Corporate VP of Suzano Holding, the IPLF Holding, President of Vocal, Chairman of Lazam- MDS Insurance Brokers and Administrator’s Board of Directors, Chairman of Ecofuturo Institute’s Board of Directors. Vice Chairman Experience of 34 years in the pulp and paper industry. Vice President FIESP. Member of ABRINQ and EMBRAER’s Board of BORIS TABACOF, 80 Directors. Member of BRACELPA’s Advisory Board. Former member of the Association Committee of Foreign Trade of Brazil and Vice Chairman Chairperson of the Advisory Committee on Paper and Wood Products of Food and Agriculture UN organization in Rome. Experience of 30 years in the pulp and paper industry. Member of the Board and the Committee of Sustainability and Strategy; JORGE FEFFER, 47 Director of Premesa, Corporate VP of Suzano Holding, a member of Lazam MDS Insurance Brokers and Administrator’s Board of Directors and VP and Director of the Council of Ecofuturo Institute. 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 and senior executive of Hoechst CLÁUDIO SONDER, 66 AG, Frankfurt . Member of RBS Group’s Board of Directors, of Cyrela Brazil Realty, of OGX, of Chemical Group DSM/Holanda, President of Renner Stores’ Board of Directors. ( Independent) Senior partner of Machado, Meyer, and Sendacz Opice Lawyers and Director 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 ANTONIO MEYER, 62 Committee. Former Justice Secretary for the State of São Paulo. Senior partner of Integra Associates. Member of Gerdau SA’s Board of Directors, Gerdau Metallurgical, Satipel Industrial SA, RBS Group, Sao Paulo Alpargatas, Locates, Delphi Corporation (USA) and Johnson Electric (Hong Kong); Board Member of Brazil's OSCAR BERNARDES, 62 Bunge, Brazil and Alcoa Veirano Assoc. Oscar was President of Bunge International and managing partner in Booz-Allen & Hamilton. (Independent) Coordinator of Suzano Pulp and Paper’s Audit Committee. Former General Manager of WTORRE and President of TAM Airlines. MARCO BOLOGNA, 53 Member of TAM and Daycoval Bank Board of Directors. (Independent) Chairman of Board of Directors of Perdigão. Board member of WEG SA, Ultrapar Participações SA and Iochpe-Maxion SA. Former Director of the National Bank for Economic and Social Development - BNDES, and General Director of Corporate Group Iochpe- NILDEMAR SECCHES, 60 Maxion Industrial Holding. ( Independent) 12
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