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3Q10 Consolidated Results
       October 29th, 2010
3Q10 Highlights – Pulp and Paper Markets
                 • Global market pulp production of 10.8 MMt in 3Q10: +9.2% vs. 2Q10 and +5.7% vs. 3Q09
                 • Global pulp sales volume: (MMt)
                                                    3Q10       3Q10 x 2Q10        3Q10 x 3Q09
                        Market Pulp:                10.1         +0.8%              -4.9%
  Pulp




                        Eucalyptus:                  3.4         -0.2%              -6.5%
                 • Global inventories at 32 days1 (Sep/10): below the historical average of 33 days
                 • Price decreases in 3Q10: US$ 870/ton (September, CIF Europe)
                 • Market pulp shipments to China in September:
                        Market pulp: 685 thousand tons (+72.1% vs. Aug/10 and + 46.7% vs. Jul/10)
                        Eucalyptus: 198 thousand tons (+98.0% vs. Aug/10 and +21.5% vs. Jul/10)

                • Domestic demand2: growth post-crisis recovery
                                                     3Q10        3Q10 x 2Q10         3Q10 x 3Q09
                       Printing & Writing            528.6         +15.5%               +6.3%
                       Paperboard                    166.7         +8.4%                +10.8%
   Paper




                • Increase of P&W paper imports in the domestic market (25.4% vs. 23.4% in 2Q10)
                • Brazilian exports accounted for 34.3% of total sales compared to 40.0% in 2Q10
                • Recovery of the main P&W markets in 3Q103 vs. 3Q09:
                       Western Europe: -2.6% vs. 2Q10 and +7.6% vs. 3Q09
                       North America: -0.1% vs. 2Q10 and +4.1% vs. 3Q09
1PPPC      2Bracepla   3RISI
                                                                                                          02/09
3Q10 Highlights - Suzano
 •      Total market pulp and paper production of 680 thousand tons

 •      Sales volume of 675 ktons: 390 ktons of pulp and 285 ktons of paper

 •      Net revenue of R$1.2 billion

 •      Pulp production cash cost of R$458/ton1

 •      EBITDA of R$ 408 million, with EBITDA margin of 35.2%

 •      Net income of R$273 million

 •      Net debt / EBITDA ratio of 2.4x. Cash and cash equivalents of R$ 3.6 billion and
        net debt of R$ 7.5 billion in September/10

 •      Reduction of US$ 50/ton in pulp prices in August and maintenance of prices in
        September and October.

 •      New increases in paper prices in both domestic and export markets

 •      US$ 650 million raised through notes rated Baa3 (Investment Grade, Moody’s) and BB+
        (Standard & Poor’s).
1 Excluding   maintenance downtime costs                                                   03/09
Pulp Business Unit
• Sales: 389.5 thousand tons in 3Q10:
       7.3% lower than 2Q10
       2.4% lower than 3Q09

• Average net price in 3Q10 (domestic and exports) of US$ 748.1/ton, +0.9% vs.2Q10. In R$:
       1.5% lower than 2Q10
       50.3% higher than 3Q09

• Net revenue of R$ 509.7 million.
       8.8% lower than 2Q10
       46.7% higher than 3Q09


            Pulp Sales (ktons)                                 Pulp Sales Destination

                                                            3Q10                             2Q10




                                                       389.5 thousand tons              420.2 thousand tons

                                                                                                          04/09
Paper Business Unit
• Sales volume of 285.4 thousand tons in 3Q10:
                                            3Q10 x 2Q10                             3Q10 x 3Q09
       Printing & Writing                      -3.5%                                   +10.0%
       Paperboard                              -5.2%                                   +5.2%
       Average paper price (domestic)          +3.7%                                   +4.7%

• Domestic sales: 61.6% of total sales in 3Q10
• Exports average net price:
                                           3Q10 x 2Q10                              3Q10 x 3Q09
       In US$                                 +9.5%                                    +25.8%
       In R$                                  +6.9%                                    +17.9%

            Paper Sales (ktons)                                        Paper Sales Destination
                                                      3Q10                                  2Q10




                                                 285.4 thousand tons                    296.9 thousand tons

                                                                                                              05/09
Operational Performance
                         Highlights              • Higher share of paper in Suzano’s revenue:
                                                        56% in 3Q10 vs. 53% in 2Q10

                                                 • Pulp cash cost ¹ 1.3% lower than 2Q10:
                                                        Lower costs related to wood from third
                                                        parties
                                                        Lower chemicals cost
                                                        Higher fixed cost

                                                 • EBITDA margin of 35.2%:
                                                        0.5 p.p. higher than 2Q10
                                                        No non-recurring items in 3Q10

                  Pulp cash cost¹ (R$/ton)                    Net Revenue Breakdown




1   Mucuri Unit                                                                                  06/09
Debt and leverage

                                    1
         Debt Breakdown - R$ Million                                                  September-10     June-10   September-09
         Gross Debt                                                                           7.476     6.427        6.611
            (-) Cash and Cash Equivalents                                                     -3.625    -2.544      -2.447
         Net Debt                                                                             3.850     3.883        4.164
            Net Debt / EBITDA                                                                 2,4x      2,7x         3,6x




1All   amounts in the table above include the adjustments introduced by the IFRS standards.                                     07/09
Key Messages
•   Demand recovery in pulp and paper markets:
        Paper: new price hikes and bigger domestic sales in the sales mix
        Pulp: sales volume recovery in Sep/10 in China and global inventories below the historical
        average
•   Operational margins recovery

•   Solid financial position
         Adequate debt profile and competitive debt cost
         Leverage reduction: from 2.7x in Jun/10 to 2.4x in Sep/10
         US$ 650 million raised through notes rated Baa3 (Investment Grade, Moody’s) and BB+
         (Standard & Poor’s).

•   Consistent growth strategy
        Evolution in Maranhão and Piauí projects:
          − Obtained prior license of Maranhão’s industrial facility
        Acquisition of FuturaGene concluded, by the amount of US$ 84 million




                                                                                               08/09
Investor Relations
www.suzano.com.br/ri
+55 11 3503-9061
ri@suzano.com.br

                       09/09

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3 q10 earnings presentation

  • 1. 3Q10 Consolidated Results October 29th, 2010
  • 2. 3Q10 Highlights – Pulp and Paper Markets • Global market pulp production of 10.8 MMt in 3Q10: +9.2% vs. 2Q10 and +5.7% vs. 3Q09 • Global pulp sales volume: (MMt) 3Q10 3Q10 x 2Q10 3Q10 x 3Q09 Market Pulp: 10.1 +0.8% -4.9% Pulp Eucalyptus: 3.4 -0.2% -6.5% • Global inventories at 32 days1 (Sep/10): below the historical average of 33 days • Price decreases in 3Q10: US$ 870/ton (September, CIF Europe) • Market pulp shipments to China in September: Market pulp: 685 thousand tons (+72.1% vs. Aug/10 and + 46.7% vs. Jul/10) Eucalyptus: 198 thousand tons (+98.0% vs. Aug/10 and +21.5% vs. Jul/10) • Domestic demand2: growth post-crisis recovery 3Q10 3Q10 x 2Q10 3Q10 x 3Q09 Printing & Writing 528.6 +15.5% +6.3% Paperboard 166.7 +8.4% +10.8% Paper • Increase of P&W paper imports in the domestic market (25.4% vs. 23.4% in 2Q10) • Brazilian exports accounted for 34.3% of total sales compared to 40.0% in 2Q10 • Recovery of the main P&W markets in 3Q103 vs. 3Q09: Western Europe: -2.6% vs. 2Q10 and +7.6% vs. 3Q09 North America: -0.1% vs. 2Q10 and +4.1% vs. 3Q09 1PPPC 2Bracepla 3RISI 02/09
  • 3. 3Q10 Highlights - Suzano • Total market pulp and paper production of 680 thousand tons • Sales volume of 675 ktons: 390 ktons of pulp and 285 ktons of paper • Net revenue of R$1.2 billion • Pulp production cash cost of R$458/ton1 • EBITDA of R$ 408 million, with EBITDA margin of 35.2% • Net income of R$273 million • Net debt / EBITDA ratio of 2.4x. Cash and cash equivalents of R$ 3.6 billion and net debt of R$ 7.5 billion in September/10 • Reduction of US$ 50/ton in pulp prices in August and maintenance of prices in September and October. • New increases in paper prices in both domestic and export markets • US$ 650 million raised through notes rated Baa3 (Investment Grade, Moody’s) and BB+ (Standard & Poor’s). 1 Excluding maintenance downtime costs 03/09
  • 4. Pulp Business Unit • Sales: 389.5 thousand tons in 3Q10: 7.3% lower than 2Q10 2.4% lower than 3Q09 • Average net price in 3Q10 (domestic and exports) of US$ 748.1/ton, +0.9% vs.2Q10. In R$: 1.5% lower than 2Q10 50.3% higher than 3Q09 • Net revenue of R$ 509.7 million. 8.8% lower than 2Q10 46.7% higher than 3Q09 Pulp Sales (ktons) Pulp Sales Destination 3Q10 2Q10 389.5 thousand tons 420.2 thousand tons 04/09
  • 5. Paper Business Unit • Sales volume of 285.4 thousand tons in 3Q10: 3Q10 x 2Q10 3Q10 x 3Q09 Printing & Writing -3.5% +10.0% Paperboard -5.2% +5.2% Average paper price (domestic) +3.7% +4.7% • Domestic sales: 61.6% of total sales in 3Q10 • Exports average net price: 3Q10 x 2Q10 3Q10 x 3Q09 In US$ +9.5% +25.8% In R$ +6.9% +17.9% Paper Sales (ktons) Paper Sales Destination 3Q10 2Q10 285.4 thousand tons 296.9 thousand tons 05/09
  • 6. Operational Performance Highlights • Higher share of paper in Suzano’s revenue: 56% in 3Q10 vs. 53% in 2Q10 • Pulp cash cost ¹ 1.3% lower than 2Q10: Lower costs related to wood from third parties Lower chemicals cost Higher fixed cost • EBITDA margin of 35.2%: 0.5 p.p. higher than 2Q10 No non-recurring items in 3Q10 Pulp cash cost¹ (R$/ton) Net Revenue Breakdown 1 Mucuri Unit 06/09
  • 7. Debt and leverage 1 Debt Breakdown - R$ Million September-10 June-10 September-09 Gross Debt 7.476 6.427 6.611 (-) Cash and Cash Equivalents -3.625 -2.544 -2.447 Net Debt 3.850 3.883 4.164 Net Debt / EBITDA 2,4x 2,7x 3,6x 1All amounts in the table above include the adjustments introduced by the IFRS standards. 07/09
  • 8. Key Messages • Demand recovery in pulp and paper markets: Paper: new price hikes and bigger domestic sales in the sales mix Pulp: sales volume recovery in Sep/10 in China and global inventories below the historical average • Operational margins recovery • Solid financial position Adequate debt profile and competitive debt cost Leverage reduction: from 2.7x in Jun/10 to 2.4x in Sep/10 US$ 650 million raised through notes rated Baa3 (Investment Grade, Moody’s) and BB+ (Standard & Poor’s). • Consistent growth strategy Evolution in Maranhão and Piauí projects: − Obtained prior license of Maranhão’s industrial facility Acquisition of FuturaGene concluded, by the amount of US$ 84 million 08/09
  • 9. Investor Relations www.suzano.com.br/ri +55 11 3503-9061 ri@suzano.com.br 09/09