APIMEC 2014APIMEC 2014 PULP AND PAPER By doing How can we serve our more, better and STAKEHOLDERS?...

APIMEC 2014

PULP AND PAPER

How can we serve our

By doing more, better and

STAKEHOLDERS?

differently 2

with all stakeholders DIALOGUE

Shareholders Creditors Society Employees

3

with Shareholders

RELATIONSHIP

4

Structural Competitiveness

RETURNS ABOVE THE

Cost of Capital

Actions

Forestry

Industrial

Measurement

EBITDA FCF ROIC

Logistics

Commercial

5

Short Term Timber swap agreements

Standardization and insourcing of harvest activities

Actions Gains

Structural reduction of wood costs

Optimization of asset base

FORESTRY

Medium term Reduction in average supply radius

Precision silviculture

Long term Biotechnology

6

status FuturaGene

Regulatory process

Certification and implementation

7

INDUSTRIAL

Modernization

Actions Gains

Operating efficiency and cost reductions

Energy efficiency

Optimization of asset base

8

COMMERCIAL

Actions

Revenue Management

Gains

Profitability

Revenue Mix

Depalletizing

Loyalty

9

TAX INCENTIVES

Reduction in Payroll Taxes

Reduction of 75% in corporate income tax in certain regions

Accelerated Depreciation Incentive (DAI)

Preponderantly Exporter

RECAP

Drawback Exemption (PIS / COFINS)

Reintegra

10

with Creditors RELATIONSHIP

11

Debt profile on 9/30/14

Long Term

11%

Net Debt / Adjusted EBITDA (x)

89%

Short Term

On the right path

Ratings

5.2x

4.8x

4.5x 4.5x

4Q13 1Q14 2Q14 3Q14

4Q13 1Q14 2Q14 3Q14

BRL % of CDI

94.4% 92.2% 91.8% 92.4%

USD 4.8% 4.8% 4.7% 4.7%

12

Moody’s Ba2 Stable

S&P BB Stable

Fitch BB Stable

Debt Cost (% p.a.)

Positive arbitrage

LIABILITY Management

Total:

Extension of export prepayment

facilities (EPFs)

Bond prepayments

R$1.3 billion

13

with

RELATIONSHIP Society

14

Society

Annual Investment :

Community Council Fostering of economic development Biodiversity conservation

R$14 million

160k people benefitted

130 municipalities/cities

Relationship

15

with Employees RELATIONSHIP

16

People Variable compensation

Recruiting

Development

Retention

17

Transformation

Proud to belong

Meritocracy

Boldness

Be better every day

Cultural

18

Suzano: trust in the right path

19

The results of these

Improvement in return on assets

already visible measures and innovations are

Efficiency gains

Higher cash generation

20

25.3%

27.3%

29.7% 31.3% 32.9% 32.7% 32.1%

606 568 581 569 629 565

502

BETTER EVERY DAY: Continuous focus on increasing

Adjusted EBITDA Margin

1,349 1,459

1,631 1,781

1,944 2,057 2,161

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

Adjusted EBITDA

operating income

12.1% 11.9%

11.5%

11.0% 10.8%

10.4%

9.8%

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

Cash cost

SG&A/Net Revenue

Cash cost* and SG&A/Net Revenue TTM**

(R$ million) (%) Adjusted EBITDA and Margin TTM**

(R$/ton) (%)

*Cash cost ex-maintenance downtime **Last twelve months 21

CAPEX 2015

Maintenance R$ 1,050 million

Vale Florestar R$ 50 million

Competitiveness R$ 390 million

Competitiveness Projects Digester at Suzano Unit Insourcing and equipment modernization Reduction in average supply radius in São Paulo Energy efficiency program Small projects, big returns

EBITDA Gain: ~R$ 95 million/year as of 2015 Total

R$ 1.5 billion 22

moment

Better every day! A unique

Discipline and innovation

Structural changes

Higher profitability

Cultural transformation

23

Investor Relations

ri@suzano.com.br

www.suzano.com.br/ir

Suzano

24