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               1
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.
Agenda




Corporate Overview and Growth Cycle   04

Forestry Business Unit                17
Pulp Business Unit                    23

Paper Business Unit                   30

Results                               36
Corporate Overview
Suzano
                                                                               Itaqui Port        Transnordestina

                                                                           “Carajás”
                                                                                                           Pecém Port
•   2nd
      largest eucalyptus pulp producer in the world                        Railroad


• 12th market pulp producers                                                  Maranhão
                                                                                                Piauí
• Pulp production costs: one of the lowest in the
                                                                             “Norte e Sul”
    world                                                                    Railroad

• Leader in the regional paper market                  Forests                                          Mucuri

                                                       Plants
• Certified plantations and products                                              Limeira
                                                                                                         Portocel
                                                       Ports
                                                                                       Suzano
• Organic Growth in pulp:                              Railroad            Embu
                                                                                                        Vitória

                                                                           Rio Verde
  +3 MM/ton/year                                                                             Santos

• New businesses: biotechnology and wood pellets
  for energy
• Market cap: R$6.0 billion on 12/31/10               Capital Structure (12/31/10)




                                                                                             Free Float
                                                          Controlling
                                                                                                45%
                                                              Group
                                                            52%


                                                                          Treasury
                                                                              3%
4
Corporate Overview
Organizational Structure


The Business Units model provides performance and return
assessments in each business
                                                                    Management

                                  Board of Directors (BD)         Sustainability and
                                9 members (4 independent)             Strategy

                                                                        Audit
                                       CEO, IR and
                                        Strategy                          BD Commitees




        SP Operations          Forestry BU              Pulp BU          Paper BU

      SP Corporate Dev.                                                   BU: Business Units


          SP Finance

    SP Human Resources


SP: Service Providers


5
Corporate Overview and Management
Products and Diversified Markets


                           Net Revenue
                           58% Exports / 42% Domestic Market

                                               R$ 4.5 billion



         Market Pulp                                              Paper
         2nd eucalyptus market pulp producer

                                               45%                      55%




                               Paperboard
                                                                              Printing and Writing
                               1st in Brazil with 26%
                               market share
                                                             13%                                            42%



                                               Uncoated                                                Coated
                                               2nd in Brazil with 27%                                  1st in Brazil with 19%
                                               market share                                            market share
                                                                              35%                                                7%



                                                                          Note: Figures of last 12 months ending on 12/31/2010
                                                                                The market share data includes paper imports
6
Corporate Overview
 Timeline
1924 until 1940                  1950                           1960 until 1990                                       2000                                     2024
  Beginning of            First investment in           Growth and diversification in the                Consolidation as one of the                      Suzano 2024
operations in the           the pulp sector               pulp and paper businesses                       largest Brazilian Groups
 paper industry
                                                                                                      Acquisition of Ripasa (50%)                  2008
                                                                                                                                                                 2010
                                                                              Start up of Bahia Sul
                                                                                                                                      2007
                            Acquisition of
                            Suzano mill                                                                                                              New Growth Cycle
                                                       Beginning of paper
                                                       exports to Europe
     Start up of the
     first paper mill
                                                                                                      2004

                                                                                                                  2005
                                                                                     1982

                        Pioneerism in                                                       1992
                        eucalyptus plantation


                                                       1960                                                                                               Acquisition of
                                                                                                                                                           FuturaGene,
                                                                                                                                                                   PLC.
                                                                1975                                         Merger with
Leon Feffer                                                                                                   Bahia Sul
starts paper
trading activities
                                                1956
                                                                                                                              Start up of Line 2
                                                                                                                                at Mucuri            Suzano Renewable
                                                                                Launch of Report
                             1955                                                                                                                              Energy
                                                        Acquisition of
                                                        Indústrias de Papel
                                                        Rio Verde’s control                           Adoption of Bovespa’s
                 1939                                                                                 Level I corporate
                                                                                                      governance standards                          Acquisition of
                                                                                                      and Professional                               50% of Conpacel
 1924                                                                                                 Management                                     and KSR.
                                                                                                                                                                           7


 7
Growth Cycle
Suzano’s Strategy


Constant increases in forestry productivity guarantees competitiveness in
the pulp business and enables new business opportunities in Biotechnology
and Renewable Energy




    Forestry
    Competency


                          Operational          Organic        Wood pellets   Biotechnology
                          excellence in        growth
                          paper                in pulp



8
Growth Cycle
Organic Growth in Pulp


    Suzano’s production capacity has increased by 130% in the last 5 years. The Company is
    prepared for a new growth cycle that will increase its capacity to
    6.0 MM ton/year of pulp and paper by 2014



                                                                                                        Piauí
                                                                                                        Unit


                                                                                             Maranhão
                                                                                               Unit


                                                                                                         6.010


                                                                                               4.610


                                                                             3.210   3.210               4.720
                                          2.750       2.850          2.850
                                                                                               3.320
                          1.720   1.920                                      1.920   1.920
                  1.485                   1.650       1.750          1.750
          1.240                   820
                  570     640
           456
                  915     1.080   1.100   1.100       1.100          1.100   1.290   1.290     1.290     1.290
           784

          2004    2005    2006    2007    2008        2009           2010    2011    2012      2013      2014
                                                  Paper       Pulp


9
Growth Cycle
Pulp Organic Growth


                                                                                     Maranhão                Piauí
Maranhão Projects
                                                         Required planted area        154 tsd ha          170 tsd ha
• Market pulp production capacity:
     1.5 MM ton/year                                     Forestry capex                US$ 575             US$ 710
                                                         (total estimated)              million             million
• Estimated industrial capex:
                                                         Forestry capex                US$ 214             US$ 193
     US$ 2.3 billion                                     (total fulfilled)              million             million
• Funding:                                               Start up (estimative)          2013                  2014
     ~ 80% debt (competitive costs) and remainder cash
     flow generation                                                                 68% own land       70% own land
                                                         Wood supply                   32% third          30% third
        • BNDES: R$ 2.7 billion, 12-year maturity and                                   parties            parties
           3-year grace period
        • Mandatory convertible debentures: R$ 1.2
           billion
•    Agreements for the acquisition of key
     equipments:
     Metso and Siemens
Competitive Advantages
•    100 MW energy surplus for sale
•    Logistics guaranteed by long term contracts
                                                         Draft of the MA / PI mill       Draft of Piauí’s nursery
•    Projects’ updates with better returns
                                                         Investment decision on Piauí Project expected
•    Tax incentives                                      for 1S12.

10
Growth Cycle
FuturaGene




•    Acquisition concluded in July/2010
                                                                     Biotechnology is on the right
•    Pioneer in biotechnology research and development
                                                                     side of Sustainability
•    Sustainable technologies
                                                                     Innovation
•    Environmentally oriented to meet growing demand for fiber and
                                                                     • Less land utilization
     biomass
                                                                     • Less water consumption
• Techniques for higher forestry productivity
                                                                     • Less chemical expenditure
• R&D forestry synergies: competitive main factor in the pulp and
                                                                     • Higher carbon sequestration
     paper markets




11
Growth Cycle
Suzano Renewable Energy


Suzano Renewable Energy– 1st fase
                                                      Wood pellets for energy, produced from
• 3 units: 1 MM ton/year each
                                                      renewable energy-oriented forests
• Capex: US$ 800 million
• World leader
• Initial focus on the European market
• MoUs for 3.1 mm/ton/year
• Negotiation of final contracts with clients
• Funding: definition of the capital structure


                                                 • Analysis of the clones portfolio: special clone
                                                     selection
Experiments
                                                 •   Dedicated plantation (more plants per hectare)
    with
                                                 •   Higher yield
 “Energetic
  Forests”                                       •   Harvest in 2 to 3 years
 since 2008                                      •   High lignin content – high calorific value
                                                 •   Unuseful for pulp production
                                                 •   Experimental “energetic” stewardship in Northeast

13
Agenda




Corporate View and Growth Cycle   04
Forestry Business Unit            17
Pulp Business Unit                23

Paper Business Unit               30

Results                           36
Forestry Business Unit
Forestry Assets


The Forestry Business Unit (FBU) guarantees to Suzano
100% eucalyptus wood supply from renewable planted forests


                                            2010 Areas’ Chart               FBU in Numbers                  2010
                                                       MA, PI and TO
                                                                            Total area (tsd ha)             722
                                                       Total: 307 tsd ha
                                                       Planted: 75 tsd ha
                                                                            Planted area (tsd ha)           324
                                                                            Annual planting (tsd ha)         76
                                                                            Planted seedlings / day (tsd)   438

                                                       BA, ES and MG        Harvested trees / day (tsd)     122
                                                       Total: 225 tsd ha
                                                                            Annual harvest (million m³)     10.8
                                                       Planted:
                                                       130 tsd ha           Loaded trucks / year
                     Forests                                                                                201
                                                                            (tsd units)
                     average
                     distance:              SP                              Preserved Area (tsd ha)         256
                     75 Km
                                            Total: 190 tsd ha
         Forests                            Planted: 119 tsd ha
         average
         distance:        Suzano has developed forestry stewardship expertise and a complete genetic base for
         246 Km
                          various scenarios due to its presence in different places with temperature, climate,
                          precipitation, soil, and relief variations.


14
Forestry Business Unit
 Forestry Competitivity in Brazil


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



 Competitive Advantages
                                                                        •   Availability of productive land
  Hardwood Productivity (m³/ha/year)
                                                                        •   Excellent soil and climate conditions
     44
            41
                                                                        •   Short harvesting cycle for planted forests
                                                                        •   Opportunity to recovery degraded areas
                    25       25
                                     20                                 •   Low establishments and maintenance costs
                                             13
                                                                        •   Continuously growing consumer market
                                                      6        4

 Suzano’s Brazil   Chile   Australia South Portugal   USA     Finland
Eucalyptus                           Africa

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


                              •    Logistics
 Challenges
                              •    Tax Structure
                              •    Cost of Capital
                              •    Education Level
                              •    Exchange Rate




15
Forestry Business Unit
Suzano’s Forestry Competitivity


 Suzano’s pioneerism and innovation enabled the improvement of stewardship techniques and development
 of genetic base


Competitive Advantages                                                                                         New Businesses
                                                    — Total clones: 14,729
•     Genetic portfolio                             — Field experiments: 614
•      Forestry technology                          — Total experimented area: 3,913 ha
•     Management abilities
•     Nutrition and soil research: potential to increase productivity
•     Operational development: precision forestry (↑ efficiency)
•     Forestry innovative concepts: “Night Planting” and “Energetic Forest”



Pulp Productivity                                                                         •   More wood / hectare
                                                                    Biotechnology
                                      11 admt1/ha/year                                    •   More pulp / m³
      5,5 admt1/ha/year
                                                                                          •   Superior quality
                              +100%
                                                                                          •   Smaller area
       1980                               2010                                            •   Decreasing costs / m³
     Source: Suzano

     1Admt:   air dried metric ton
16
Forrestry Business Unit
Sustainability, Innovation and Governance


Sustainability Directive Plan considers a refined concept of theTriple Bottom Line
comprising Innovation and Governance



                                                              Economic financial

     Governance
                                                              • Global competitiveness and scale              Innovation
     Application of                                           • Consistent margins and returns                • Processes, products
     sustainability principles                                • Capital discipline                              and clean technologies
     in the decision-making                                                                                   • Stakeholders’ knowledge
      process                                                                                                   valorization



                       Environment                                                   Social
                       • Forest management and                                       • 57 public libraries
                         certified chain of custody
                                                                                     • Renovation of 35 public
                       • Member of CCX1 and WBCSD2                                      schools in 3 states
                       • ECOFUTURO (Parque das                                          ECOFUTURO: 92 thousand
                          Neblinas)                                                     benefited students



                          1   Chicago Climatic Exchange
                          2   World Business Council for Sustainable Development



17
Forestry Business Unit
Strategy




     Operational                              Guarantee of         Long-term view
                         Consolidation of
     excellence:                              excellence           research and
                         operations in the
     focus on forestry   Northeast:           in new businesses    development for
     management and      Maranhão and Piauí   linked to forestry   forestry
     wood logistics                           competencies         technologies




18
Agenda




Corporate View and Growth Cycle   04
Forestry Business Unit            17

Pulp Business Unit                23
Paper Business Unit               30

Results                           36
Pulp Business Unit
 Overview

  Pulp and Paper Production Chain – 2010e                                                                              6%             3

                      2010e Production (MM ton)                 51%                   188                                    Others
                                                                                                72%              131
                                                      369           Recycled
                                        8%
                                                                                                   Integrated
                                     Total fiber                                                      pulp             44%            22
                                    consumption
                                                                 49%                  181
                                                                                                                             BSKP1
                         Minerals                                  Virgin fiber
                                                                                                28%               50
                              8%
                                                      401                                                              50%            25
                                                                                                  Market pulp
                                   Global production
                                     of paper and                                              (13% of total fibers)         BHKP2
                                      paperboard


                      401                                                                                              64%            16
                                                            Market pulp still represents the smaller part of the
                               Printing and Writing         fiber used for paper production.                                 BEKP3
   Millions of tons




                                                            New paper capacities are being installed near to
                               Paperboard
                                                            consumer markets, while cash costs drives                  10%            1.6
                               Tissue                       implementation of new pulp capacities.

                                                            1 Bleached Softwood Kraft Pulp
                               Corrugated                   2 Bleached Hardwood Kraft Pulp
                               Newsprint                    3 Bleached Eucalyptus Kraft Pulp
                               Others
                                                                                                                       Suzano’s 2014 estimated
                                                                                                                       production of 4,6 mm ton
                      2010e                                                                                            (26% of global production)
Source: Poyry and Suzano

 20
Pulp Business Unit
Pulp demand growth driven by eucalyptus and by European
and Chinese markets
      Demand: Market Pulp (K ton)                         Demand: Eucalyptus Pulp (K ton)
      CAGR                                                CAGR
      ’03 -’09:                                           ’03 -’09:
      +2.2%                                               +11.3%




                                                 55.755                                      19.710   20.560
                                        54.555                           17.405   18.580
                             53.215                             15.715
                    51.610
         49.085


         2010e      2011e    2012e      2013e    2014e          2010e    2011e    2012e      2013e    2014e

      Eucalyptus Pulp – China (K ton)                     Eucalyptus Pulp – Europe (K ton)
      CAGR
      ’03 -’09:                                           CAGR
      +26.9%                                              ’03 -’09:
                                                          +7.4%




                                                                                  8.185      8.485    8.655
                                                 5.385           7.420   7.785
                                        4.950
                             4.355
                    3.930
          2.945



          2010e     2011e    2012e      2013e    2014e          2010e    2011e    2012e      2013e    2014e
21   Source: PPPC
Pulp Business Unit
Supply increase driven by eucalyptus
shows Suzano as a relevant player
     Market Pulp Supply (K ton)                               Eucalyptus Pulp Supply (K ton)
     CAGR                                                     CAGR
     ’03 -’09:                                                ’03 -’09:
     +2.7%                                                    +11.3%




                                               61.535                                                           22.415
                                      60.140                                              19.610      21.170
                                                                    17.530   18.905
                 57.670      58.330
       55.045



       2010e     2011e       2012e    2013e    2014e                2010e    2011e        2012e       2013e     2014e


     Eucalyptus’ Supply and Demand Balance (%)                New Eucalyptus Pulp Capacities Forecast
                                                              2010 – 2014 (K ton)



                                                              Global                          6,385                  100%


                                                        Latin America                 4,990                    78%
                              95%
                   92%                 93%      92%
         90%                                                   Brazil             4,315                  68%


                                                             Suzano          3,000              47%
       2010e     2011e       2012e    2013e    2014e

      Source: PPPC, Suzano
22
Pulp Business Unit
Brazilian Pulp Cash Cost: Structurally Low


                                                                     US$ / ton (CIF/ North Europe)


                                                                                                                                                                                           US$ 511 - 696 / ton
                                                                                         US$ 441 - 651 / ton
     700

                                                                                                                                         US$ 367-398 / ton
     600




                                                                                                                                                                                                                                        Canada (British Columbia Coast)
     500




                                                                                                                                                                                                            Canada (British Columbia)




                                                                                                                                                                                                                                                                          Canada (East)
                                                                                                                                                  France, Austria and Belgium
     400                           US$ 300 – 401 / ton




                                                                                                                   South Korea
                                                                                        France and Belgium




                                                                                                                       Japan




                                                                                                                                                                                             Sweden
                                                                                                                        Canada




                                                                                                                                                                                                      USA
                                                                                                                                                                                Finland
     300
                                                                       Iberia, Norway


                                                                                              Sweden



                                                                                                             USA
                                                                                              China
                                                                                                Finland
                                                         Indonesia




                                                                                                                                         Russia
                                                                                                                                 Chile
                                                 Chile
                          Brazil




                                                          Hardwood                                                                                                                        Softwood


           Source: Hawkins Wright, jul/ 10 - Volumes do not include production of unbleached pulp and high yield pulp.




23
Pulp Business Unit
Highlights


 Pulp Sales Volume (K ton)                                       Pulp Sales Destinations – 2010
                                  1.780
                                              1.607                     Brazil 19%

                  1.321
                                                               North Am. 9%
                                  1.519
       799                                    1.310   South/Central Am. 1%                         38% Europe
                  1.089
       638

       161         232            261         297                 Asia 33%
      2007        2008            2009        2010

                Domestic Market     Exports


 • Technical support in each international office:
                                                                 Sales per Segment – 2010
     China, Switzerland and USA
 • 80% of total sales with long term contracts                                  Others 7%

 • More than 150 active clients
                                                                Special 25%                       36% Printing and Writing
 • Strategic long-term partnerships with clients:
       • Logistics
       • Technology
       • Pre and post sale technical assistance
                                                                   Tissue 32%
 • Strategic focus on high value added segments
24
Pulp Business Unit
Strategy




      Focus on
                     Presence in     Strategic
      sustainable    main
      growth                         relationship with
                     international
      strategy                       clients
                     markets




25
Agenda




Corporate View and Growth Cycle   04
Forestry Business Unit            17

Pulp Business Unit                23

Paper Business Unit               30

Results                           36
Paper Business Unit
Global Paper Demand



Growth Premises

•    Global paper demand growth (2010-2015) of 1.8% p.a.
       • Printing and Writing: +0.9% p.a.
       • Paperboard: +2.5 % p.a.

•    Industry is still considered fragmented,
                                                                         Global Paper Demand (MM ton)
     but with significant regional concentration
                                                                                  CAGR 1.8% p.a.
•    Emerging markets lead supply and demand growth
                                                                                                   438
                                                                                401
                                                                                                             Suzano’s
                                                      Printing and Writing
                                                                                                             Focus
                                                             Paperboard1
                                                                   Tissue




                                                                   Others


                                                                                2010e            2015e
                                                                     1Paperboard + liquid packaging board)
                                                                     Source: Poyry – 2009



27
Paper Business Unit
                        Demand Growth Drivers


                          Historically there is a high correlation between GDP per capita and paper consumption.
                          In Brazil, the positive economic growth forecasts represent an important driver for the domestic
                          paper demand.

                              Paper Consumption x GDP per Capita



                                                                                             USA   •   Education
                                                                                     Sweden
                                                                                                   •   Digital printing
Consumption (kg per capita)




                                            Taiwan
                                                                                     Japan
                                                          Korea Rep.

                                                                                                   •   Electronic Media
                                                                UK                                 •   Plastics
                                  China.
                                                       Spain
                                         Brazil



                                 GDP per Capita (US$)

                         Latin Am. and Brazil = 41kg                   USA = 300kg

                                 Source: Poyry, 2008

                  28
Paper Business Unit
Brazil and Latin America are the main Markets



                Brazilian Demand (MM ton)                                                 Latin America ex-Brazil Demand (MM ton)

                                      4.3% p.a.                                                               3.3% p.a.
                                                  3.434                                                                    5.287
                                                                                                      4.488 4.1% p.a.
                              2.788
                                      4.2% p.a.   1.099                                                                    1.875
                               895                                                                    1.533
           Paperboard1                                                               Paperboard1
                                      4.3% p.a.                                                                2.9% p.a.
                                                  2.335                                                                    3.412
     Printing & Writting2     1.893                                            Printing & Writting2   2.955



                              2010e               2015e                                               2010e                2015e

                   1Paperboard + liquid packaging board; 2 Uncoated + Coated
                   Source: RISI Latin America Forecast –Nov/10


• Economic growth, higher GDP and increased industrial activity
• Education level improvement and access to new technologies
• Latin America (ex-Brazil): net importing market
• Suzano’s competitive advantage:
        - Geographic proximity and lower logistic costs
        - Brand recognition
        - Portfolio: wide range of products
29
Paper Business Unit
Highlights



     Sales Volume (k ton)                                              Sales Destination – 2010

                                                                                           12%North Am.
                                                                        Europe 10%
      1.124        1.162           1.115       1.156
                                                                      Others 4%
       456          504            524         513                                                  56% Brazil


       668          658            591         643
                                                          South/Central Am. 18%

      2007         2008            2009        2010

                 Domestic Market     Exports




•    Leadership in printing & writing and white paperboard in South America
•    More than 90% integrated production (pulp + paper)
•    Fx hedge: approximately 60% of paper revenue in local currency
•    2 own paper merchants – SPP NEMO (2nd largest in Brazil) and Stenfar (Argentina)
•    Premium pricing in the segments where we act
•    Lower price volatility in the domestic market



30
Paper Business Unit
Strategy




                      Strengthening                    Products
     Revenue                            Asset
                      of Distribution                  Portfolio
     Management                         Optimization
                      Channels                         Management




31
Agenda




Corporate Overview and Growth Cycle   04
Forestry Business Unit                17

Pulp Business Unit                    23

Paper Business Unit                   30

Results                               36
Results
Net Revenue and EBITDA


         Net Revenue (R$ million) and Volume (K ton)                                        EBITDA (R$ million) and EBITDA Margin (%)

                                                2.896                                                                    36,2%                    37,7%
                                                                2.763                        33,5%
                                    2.482                                                                  30,3%                      29,4%
                       1.924
          1.686
                                                                4.514
                                    4.064       3.952                                                                                                 1.703
          3.099        3.410                                                                                             1.469
                                    2.214                       2.599                         1.040         1.034                     1.161
                       1.596                    2.295
          1.302

          1.797        1.814        1.850       1.657           1.915

          2006         2007         2008        2009            2010                          2006          2007         2008         2009            2010
R$/US$                                                                            R$/US$
          2.18         1.95         1.84        2.00            1.76                          2.18          1.95         1.84         2.00            1.76
avg.                                                                              avg.

                  Domestic Market     Exports          Volume

         Paper: Revenue (R$ million) and Volume (K ton)                                    Pulp: Revenue (R$ million) and Volume (K ton)

                       1.125                                                                                                          1.780           1.607
                                                1.116
                                    1.162                        1.156                                                   1.320
          1.071                                                                                              799
                                                                                               615

          2.336        2.458        2.524       2.344           2.496
                                                                                                                                                      2.018
           722          837          937         918             936                                                     1.539        1.609
                                                                                               736           933                                      1.663
          1.614        1.621        1.587                       1.560                                                    1.277        1.377
                                                1.426                                                        757
                                                                                                591

          2006         2007         2008        2009            2010                           2006         2007         2008         2009            2010

                  Domestic Market     Exports          Volume                                          Domestic Market      Exports          Volume

         Note: The amounts of 2009 and 2010 include the adjustments introduced by the IFRS standards

33
Results
Adequate Debt Amortization Schedule and Liquidity Profile


•    Cash: R$ 3.7 billion on 12/31/2010
•    Liquidity horizon: low rollover risk even under stress scenarios
•    Competitive cost of debt and duration of 43 months
•    Debt breakdown on 12/31/2010: 50% in foreign currency and 50% in local currency (R$)
•    Moody’s: Baa3 (stable) Investment Grade; S&P: BB+ (stable)

      Amortization schedule (R$ million)                                Debt - Dec/ 2010

                                                               2.049     R$ million                  Amount   Leverage

                                                                         BNDES                        2,532     1.5x

                                                                         Nordic Investment Bank        74       0.0x
      1.383
                  1.296                                                  FINIMP                       287       0.2x
                                                               1.282
                                                                         Projetcs Debt                2,893     1.7x
       625
                                1.012      989
                                                                         Trade Finance                2,125     1.3x
                                           153
                   924
                                 628                                     Debentures                   625       0.4x

                                                       427               Others                       1,513     0.9x
       758                                 836                  767
                                                                         Gross Debt                   7,156     4.2x
                   372           384                    382
                                                                         Cash and Cash Equivalents    3,735     2.2x
      2011        2012          2013       2014        2015    2016
                                                              onwards    Net Debt                     3,421     2.0x


                          Local Currency   Foreign Currency                                                        34
34
Results
Conservative Financial Policy


•    Benchmark: investment grade status
•    Net Debt/ EBITDA ratios may increase temporarily due to growth projects
•    Amortization in line with the projects’ cash flow
•    Capex discipline
•    Hedging for cash flow, not for accounting results
•    No use of complex, illiquid or exotic derivatives
                                                   Implementation of                                                       World
                                                     Mucuri Project  Start up of line                                    economic
                                                        (line 2)       2 at Mucuri                                         crisis
                                 Acquisition
                                  of Ripasa

                                                            3,8x                  3,7x                   3,7x                  3,5x
                                     2,7x
                                                                                                                                             2,0x
               1,6x                                                                                5.459

                                                                             4.285                                      4.111
                                                      3.919
                                                                                                                                         3.421

                                2.475
          1.616                                                                                                                                  1.703
                                                                                                            1.469
                  1.039                                        1.040                 1.146                                       1.161
                                          913



              2004                  2005                   2006                  2007                   2008                   2009         2010

                                     Net Debt (R$ MM)                   EBITDA (R$ MM)                 Net Debt / EBITDA (x)

         Note: The amounts of 2009 and 2010 include the adjustments introduced by the IFRS standards

35
Results
Capital Markets: Liquidity and Stock Performance


       Stock Performance

     140



     120



     100                                                                                                                                                               Ibovespa -1%
                                                                                                                                                                       IBrX50    -2%
                                                                                                                                                                       SUZB5     -8%

      80



      60
        Dec        Jan          Feb            Mar          Apr         May           Jun   Jul             Aug           Sep        Oct           Nov           Dec
         09        10            10            10           10          10            10    10               10            10        10            10            10


      Liquidity                                                                             Distribution of Proceeds (R$ tsd)1

                                                            2.471
                                                                       2.211        2.052                                                                230.810       220.690
                                      1.655      1.565
              1.107       920                              27.245
     715                                                                                                                                   161.222
                                                                                                  140.114         138.438
                                      17.700    18.166                17.095                                                    114.099
                                                                                14.523
              11.968     12.133

     5.025


     1Q09     2Q09       3Q09         4Q09       1Q10       2Q10      3Q10          4Q10           2004            2005          2006       2007          2009          2010
                                                                                                  1 There wasn’t any distribution of proceeds in 2008 due to a net loss of R$
              Avg. Daily Volume (R$ tsd)                 Number of Trades (Daily)                 451 million.

36
Results
Why to Invest in Suzano?




                    Defined Controlling
                          Group

                                                                            2024
                                                                            Biotechnology
                                                                            Wood Pellets
                                                                            Organic Growth in Pulp
                                                                            Operational Excellence in Paper
     Professional                         Capital
     Management                           Markets

                                                               2010
                                                    + Revenue
                                                    + EBITDA
                                                    + Earnings
                                                    + Market Appreciation


 1924


37
Investor Relations Team




Antonio Maciel (CEO and IR Director) +55 (11) 3503-9061 ri@suzano.com.br

Andrea Fernandes (IR Executive Manager) +55 (11) 3503-9062 andreaf@suzano.com.br

Áurea Portugal (Assistant) +55 (11) 3503-9061 aportugal@suzano.com.br

Eduardo Oliveira (Intern) +55 (11) 3503-9306 epoliveira@suzano.com.br

Fernanda Nardy (Analyst) +55 (11) 3503-9066 fnardy@suzano.com.br

Michelle Corda (Analyst) +55 (11) 3503-9359 mcorda@suzano.com.br

Rosely Onizuca (Analyst) +55 (11) 3503-9355 ronizuca@suzano.com.br



Investor Relations
www.suzano.com.br/ri




38
Board of Directors
Experienced and active

      DAVID FEFFER    Experience of 36 years in the pulp and paper industry. CEO of Suzano Holding S/A, Chairman of the Board of Directors of Suzano
                      Pulp and Paper S/A and Coordinator of the Management Committee. CEO of IPLF Holding and Nemopar Investimentos Ltda. CEO
        Chairman      and Vice President of the Board of Directors of Polpar S/A. Vice President of Premesa S/A and Vocal.


     DANIEL FEFFER    Experience of 32 years in the pulp and paper industry. Member of Sustainability and Strategy Committee, Chairman of Polpar’s
                      Board of Directors, President of Premesa, Corporate VP of Suzano Holding, IPLF Holding and Nemopar, President of Vocal and
      Vice Chairman   Nemonorte, Chairman of Ecofuturo Institute’s Board of Directors.


     BORIS TABACOF    Experience of 35 years in the pulp and paper industry. Vice President of FIESP. Member of BRACELPA’s and IBEF’s Advisory
      Vice Chairman   Board. Chairman of the Board of Directors for the Brazilian Committee of Britain Brazil Business Forum.


                      Experience of 31 years in the pulp and paper industry. Member of the Board and the Committee of Sustainability and Strategy;
      JORGE FEFFER    Director of Premesa, Corporate VP of Suzano Holding and IPLF Holding, Executive Officer of Nemonorte and Vocal.

                      Executive Vice President of Suzano Holding S/A. 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
     CLÁUDIO SONDER   Hoechst of Brazil. Board of Directors member of Lojas Renner S/A, RBS Group, Cyrela Brazil Realty, OGX and Chemical Group
                      DSM/Holanda.

                      Senior partner of Machado, Meyer, and Sendacz Opice Lawyers and former member of the Board of Directors of OAB Brazil.
     ANTONIO MEYER    President of CESA. Former Legal Adviser and Chairman of the Legislative Committee of the American Chamber of Commerce and
                      Director of ABRASCA’s Legislative Committee. (Independent)


                      Member of Audit Committee. Senior partner of Integra Associates. Member of Gerdau S/A’s Board of Directors, Metalúrgica Gerdau,
 OSCAR BERNARDES      Sao Paulo Alpargatas, Localiza, and Johnson Electric (Hong Kong); Board Member of Bunge Brazil and Alcoa Brazil. Oscar was
                      President of Bunge International and Managing Partner in Booz-Allen & Hamilton. (Independent)


                      Coordinator of Suzano Pulp and Paper’s Audit Committee. Member of the Board of Directors of TAM Airlines and TAM Aviação
     MARCO BOLOGNA    Executiva. Former CEO of TAM Airlines and WTorre. (Independent)


                      Co-Chairman of the Board of Directors of BRF-Brasil Foods. Board member of WEG S/A, Ultrapar Participações S/A and Iochpe-
 NILDEMAR SECCHES     Maxion S/A. Former CEO of Perdigão Group. Former Director of the National Bank for Economic and Social Development - BNDES,
                      and General Director of Corporate Group Iochpe-Maxion Industrial Holding. (Independent)

39
Executive officers
Distinguished management team

                       Chief Executive Officer, also responsible for Investor Relations Department, 4 years at Suzano. Member of the Board of
                       Director Member of Marfrig Frigoríficos. Vice President of BRACELPA. Former member of the Board of Director of SEBRAE,
ANTONIO MACIEL NETO    Gradiente, Cecrisa and Amcham. Former Chaiman of Ford Brasil and Ford Latin America, Itamarati Group, Ferronorte and Cecrisa
                       and former Executive of Petrobras and the Federal Government. Mechanical Engineer graduated at UFRJ.


                       Pulp Business Unit Executive Officer, joined Suzano in 2009. Former CEO of European operations of RGM Group and Commercial
ALEXANDRE YAMBANIS     Director of Aracruz. Graduated in Business Administration at Fundação Getulio Vargas (FGV).



                       Chief Financial Officer, also responsible for the Legal and Strategy Departments, 15 years at Suzano. He has worked at Vale
    BERNARDO
 BERNARDO SZPIGEL      for 23 years as Director, Executive Vice-President and member of the Board of Directors. PhD in Business Administration graduated
    SZPIGEL, 65        at University of California, Berkeley. Mechanical Engineer graduated at ITA.


                       Chief Executive Officer of Suzano Renewable Energy and Suzano Pulp and Paper Executive Officer, responsible for
                       Corporate Development Department, 7 years at Suzano. Former Paper Business Unit Executive Officer (2005-2008). Former
       ANDRÉ DORF      Executive of JPMorgan in Brazil and NY (Investment Banking Global and Latin America), Chase Manhattan and Banco
                       Patrimônio/Salomon Brothers. Graduated in Business Administration at Fundação Getulio Vargas (FGV).


                       Chief Operation Officer, 5 years at Suzano. Has worked as Expansion Project Director of Mucuri Unit. Former executive of Dow
     ERNESTO POUSADA   Chemical Company, in Brazil, USA and Europe. Post-Graduated in Business Administration at FIA/USP.



                       Forest Business Unit Executive Officer, 3 years at Suzano. Former executive of Champion Pulp and Paper and International Paper
      JOÃO COMÉRIO     as Global Forestry Strategy Officer in the USA. Post graduated in Forest Science and Wood Technology at USP – Piracicaba.



                       Paper Business Unit Executive Officer, 6 years at Suzano. Former Executive Manager of Suzano’s Pulp Business Unit and Sales
      CARLOS ANIBAL    General Manager for Latin America at General Electric in the Industrial Systems Division. MBA degree at Ibmec-SP. Electrical
                       Engineer at UFMG.

                       Human Resources Executive Officer, 2 years at Suzano. Former Human Resources Manager for Aviation Operations in General
                       Electric in Brazil and abroad, Global HR Director for Information Technology in the United States and HR Director for Mexico and
      CARLOS GRINER    Latin America. Former Executive of Carioca Engenharia, CR Almeida, Comlurb and Bureau Veritas. Post Graduated in Business
                       Administration at COPPEAD-UFRJ.
40

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Presentation Highlights Growth and Risk Factors

  • 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.
  • 3. Agenda Corporate Overview and Growth Cycle 04 Forestry Business Unit 17 Pulp Business Unit 23 Paper Business Unit 30 Results 36
  • 4. Corporate Overview Suzano Itaqui Port Transnordestina “Carajás” Pecém Port • 2nd largest eucalyptus pulp producer in the world Railroad • 12th market pulp producers Maranhão Piauí • Pulp production costs: one of the lowest in the “Norte e Sul” world Railroad • Leader in the regional paper market Forests Mucuri Plants • Certified plantations and products Limeira Portocel Ports Suzano • Organic Growth in pulp: Railroad Embu Vitória Rio Verde +3 MM/ton/year Santos • New businesses: biotechnology and wood pellets for energy • Market cap: R$6.0 billion on 12/31/10 Capital Structure (12/31/10) Free Float Controlling 45% Group 52% Treasury 3% 4
  • 5. Corporate Overview Organizational Structure The Business Units model provides performance and return assessments in each business Management Board of Directors (BD) Sustainability and 9 members (4 independent) Strategy Audit CEO, IR and Strategy BD Commitees SP Operations Forestry BU Pulp BU Paper BU SP Corporate Dev. BU: Business Units SP Finance SP Human Resources SP: Service Providers 5
  • 6. Corporate Overview and Management Products and Diversified Markets Net Revenue 58% Exports / 42% Domestic Market R$ 4.5 billion Market Pulp Paper 2nd eucalyptus market pulp producer 45% 55% Paperboard Printing and Writing 1st in Brazil with 26% market share 13% 42% Uncoated Coated 2nd in Brazil with 27% 1st in Brazil with 19% market share market share 35% 7% Note: Figures of last 12 months ending on 12/31/2010 The market share data includes paper imports 6
  • 7. Corporate Overview Timeline 1924 until 1940 1950 1960 until 1990 2000 2024 Beginning of First investment in Growth and diversification in the Consolidation as one of the Suzano 2024 operations in the the pulp sector pulp and paper businesses largest Brazilian Groups paper industry Acquisition of Ripasa (50%) 2008 2010 Start up of Bahia Sul 2007 Acquisition of Suzano mill New Growth Cycle Beginning of paper exports to Europe Start up of the first paper mill 2004 2005 1982 Pioneerism in 1992 eucalyptus plantation 1960 Acquisition of FuturaGene, PLC. 1975 Merger with Leon Feffer Bahia Sul starts paper trading activities 1956 Start up of Line 2 at Mucuri Suzano Renewable Launch of Report 1955 Energy Acquisition of Indústrias de Papel Rio Verde’s control Adoption of Bovespa’s 1939 Level I corporate governance standards Acquisition of and Professional 50% of Conpacel 1924 Management and KSR. 7 7
  • 8. Growth Cycle Suzano’s Strategy Constant increases in forestry productivity guarantees competitiveness in the pulp business and enables new business opportunities in Biotechnology and Renewable Energy Forestry Competency Operational Organic Wood pellets Biotechnology excellence in growth paper in pulp 8
  • 9. Growth Cycle Organic Growth in Pulp Suzano’s production capacity has increased by 130% in the last 5 years. The Company is prepared for a new growth cycle that will increase its capacity to 6.0 MM ton/year of pulp and paper by 2014 Piauí Unit Maranhão Unit 6.010 4.610 3.210 3.210 4.720 2.750 2.850 2.850 3.320 1.720 1.920 1.920 1.920 1.485 1.650 1.750 1.750 1.240 820 570 640 456 915 1.080 1.100 1.100 1.100 1.100 1.290 1.290 1.290 1.290 784 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Paper Pulp 9
  • 10. Growth Cycle Pulp Organic Growth Maranhão Piauí Maranhão Projects Required planted area 154 tsd ha 170 tsd ha • Market pulp production capacity: 1.5 MM ton/year Forestry capex US$ 575 US$ 710 (total estimated) million million • Estimated industrial capex: Forestry capex US$ 214 US$ 193 US$ 2.3 billion (total fulfilled) million million • Funding: Start up (estimative) 2013 2014 ~ 80% debt (competitive costs) and remainder cash flow generation 68% own land 70% own land Wood supply 32% third 30% third • BNDES: R$ 2.7 billion, 12-year maturity and parties parties 3-year grace period • Mandatory convertible debentures: R$ 1.2 billion • Agreements for the acquisition of key equipments: Metso and Siemens Competitive Advantages • 100 MW energy surplus for sale • Logistics guaranteed by long term contracts Draft of the MA / PI mill Draft of Piauí’s nursery • Projects’ updates with better returns Investment decision on Piauí Project expected • Tax incentives for 1S12. 10
  • 11. Growth Cycle FuturaGene • Acquisition concluded in July/2010 Biotechnology is on the right • Pioneer in biotechnology research and development side of Sustainability • Sustainable technologies Innovation • Environmentally oriented to meet growing demand for fiber and • Less land utilization biomass • Less water consumption • Techniques for higher forestry productivity • Less chemical expenditure • R&D forestry synergies: competitive main factor in the pulp and • Higher carbon sequestration paper markets 11
  • 12. Growth Cycle Suzano Renewable Energy Suzano Renewable Energy– 1st fase Wood pellets for energy, produced from • 3 units: 1 MM ton/year each renewable energy-oriented forests • Capex: US$ 800 million • World leader • Initial focus on the European market • MoUs for 3.1 mm/ton/year • Negotiation of final contracts with clients • Funding: definition of the capital structure • Analysis of the clones portfolio: special clone selection Experiments • Dedicated plantation (more plants per hectare) with • Higher yield “Energetic Forests” • Harvest in 2 to 3 years since 2008 • High lignin content – high calorific value • Unuseful for pulp production • Experimental “energetic” stewardship in Northeast 13
  • 13. Agenda Corporate View and Growth Cycle 04 Forestry Business Unit 17 Pulp Business Unit 23 Paper Business Unit 30 Results 36
  • 14. Forestry Business Unit Forestry Assets The Forestry Business Unit (FBU) guarantees to Suzano 100% eucalyptus wood supply from renewable planted forests 2010 Areas’ Chart FBU in Numbers 2010 MA, PI and TO Total area (tsd ha) 722 Total: 307 tsd ha Planted: 75 tsd ha Planted area (tsd ha) 324 Annual planting (tsd ha) 76 Planted seedlings / day (tsd) 438 BA, ES and MG Harvested trees / day (tsd) 122 Total: 225 tsd ha Annual harvest (million m³) 10.8 Planted: 130 tsd ha Loaded trucks / year Forests 201 (tsd units) average distance: SP Preserved Area (tsd ha) 256 75 Km Total: 190 tsd ha Forests Planted: 119 tsd ha average distance: Suzano has developed forestry stewardship expertise and a complete genetic base for 246 Km various scenarios due to its presence in different places with temperature, climate, precipitation, soil, and relief variations. 14
  • 15. Forestry Business Unit Forestry Competitivity in Brazil Brazil presents competitive advantages to support continuous increase of its global forestry standing Competitive Advantages • Availability of productive land Hardwood Productivity (m³/ha/year) • Excellent soil and climate conditions 44 41 • Short harvesting cycle for planted forests • Opportunity to recovery degraded areas 25 25 20 • Low establishments and maintenance costs 13 • Continuously growing consumer market 6 4 Suzano’s Brazil Chile Australia South Portugal USA Finland Eucalyptus Africa Source: ABRAF, BRACELPA, Poyry, Adapted by STCP Consulting • Logistics Challenges • Tax Structure • Cost of Capital • Education Level • Exchange Rate 15
  • 16. Forestry Business Unit Suzano’s Forestry Competitivity Suzano’s pioneerism and innovation enabled the improvement of stewardship techniques and development of genetic base Competitive Advantages New Businesses — Total clones: 14,729 • Genetic portfolio — Field experiments: 614 • Forestry technology — Total experimented area: 3,913 ha • Management abilities • Nutrition and soil research: potential to increase productivity • Operational development: precision forestry (↑ efficiency) • Forestry innovative concepts: “Night Planting” and “Energetic Forest” Pulp Productivity • More wood / hectare Biotechnology 11 admt1/ha/year • More pulp / m³ 5,5 admt1/ha/year • Superior quality +100% • Smaller area 1980 2010 • Decreasing costs / m³ Source: Suzano 1Admt: air dried metric ton 16
  • 17. Forrestry Business Unit Sustainability, Innovation and Governance Sustainability Directive Plan considers a refined concept of theTriple Bottom Line comprising Innovation and Governance Economic financial Governance • Global competitiveness and scale Innovation Application of • Consistent margins and returns • Processes, products sustainability principles • Capital discipline and clean technologies in the decision-making • Stakeholders’ knowledge process valorization Environment Social • Forest management and • 57 public libraries certified chain of custody • Renovation of 35 public • Member of CCX1 and WBCSD2 schools in 3 states • ECOFUTURO (Parque das ECOFUTURO: 92 thousand Neblinas) benefited students 1 Chicago Climatic Exchange 2 World Business Council for Sustainable Development 17
  • 18. Forestry Business Unit Strategy Operational Guarantee of Long-term view Consolidation of excellence: excellence research and operations in the focus on forestry Northeast: in new businesses development for management and Maranhão and Piauí linked to forestry forestry wood logistics competencies technologies 18
  • 19. Agenda Corporate View and Growth Cycle 04 Forestry Business Unit 17 Pulp Business Unit 23 Paper Business Unit 30 Results 36
  • 20. Pulp Business Unit Overview Pulp and Paper Production Chain – 2010e 6% 3 2010e Production (MM ton) 51% 188 Others 72% 131 369 Recycled 8% Integrated Total fiber pulp 44% 22 consumption 49% 181 BSKP1 Minerals Virgin fiber 28% 50 8% 401 50% 25 Market pulp Global production of paper and (13% of total fibers) BHKP2 paperboard 401 64% 16 Market pulp still represents the smaller part of the Printing and Writing fiber used for paper production. BEKP3 Millions of tons New paper capacities are being installed near to Paperboard consumer markets, while cash costs drives 10% 1.6 Tissue implementation of new pulp capacities. 1 Bleached Softwood Kraft Pulp Corrugated 2 Bleached Hardwood Kraft Pulp Newsprint 3 Bleached Eucalyptus Kraft Pulp Others Suzano’s 2014 estimated production of 4,6 mm ton 2010e (26% of global production) Source: Poyry and Suzano 20
  • 21. Pulp Business Unit Pulp demand growth driven by eucalyptus and by European and Chinese markets Demand: Market Pulp (K ton) Demand: Eucalyptus Pulp (K ton) CAGR CAGR ’03 -’09: ’03 -’09: +2.2% +11.3% 55.755 19.710 20.560 54.555 17.405 18.580 53.215 15.715 51.610 49.085 2010e 2011e 2012e 2013e 2014e 2010e 2011e 2012e 2013e 2014e Eucalyptus Pulp – China (K ton) Eucalyptus Pulp – Europe (K ton) CAGR ’03 -’09: CAGR +26.9% ’03 -’09: +7.4% 8.185 8.485 8.655 5.385 7.420 7.785 4.950 4.355 3.930 2.945 2010e 2011e 2012e 2013e 2014e 2010e 2011e 2012e 2013e 2014e 21 Source: PPPC
  • 22. Pulp Business Unit Supply increase driven by eucalyptus shows Suzano as a relevant player Market Pulp Supply (K ton) Eucalyptus Pulp Supply (K ton) CAGR CAGR ’03 -’09: ’03 -’09: +2.7% +11.3% 61.535 22.415 60.140 19.610 21.170 17.530 18.905 57.670 58.330 55.045 2010e 2011e 2012e 2013e 2014e 2010e 2011e 2012e 2013e 2014e Eucalyptus’ Supply and Demand Balance (%) New Eucalyptus Pulp Capacities Forecast 2010 – 2014 (K ton) Global 6,385 100% Latin America 4,990 78% 95% 92% 93% 92% 90% Brazil 4,315 68% Suzano 3,000 47% 2010e 2011e 2012e 2013e 2014e Source: PPPC, Suzano 22
  • 23. Pulp Business Unit Brazilian Pulp Cash Cost: Structurally Low US$ / ton (CIF/ North Europe) US$ 511 - 696 / ton US$ 441 - 651 / ton 700 US$ 367-398 / ton 600 Canada (British Columbia Coast) 500 Canada (British Columbia) Canada (East) France, Austria and Belgium 400 US$ 300 – 401 / ton South Korea France and Belgium Japan Sweden Canada USA Finland 300 Iberia, Norway Sweden USA China Finland Indonesia Russia Chile Chile Brazil Hardwood Softwood Source: Hawkins Wright, jul/ 10 - Volumes do not include production of unbleached pulp and high yield pulp. 23
  • 24. Pulp Business Unit Highlights Pulp Sales Volume (K ton) Pulp Sales Destinations – 2010 1.780 1.607 Brazil 19% 1.321 North Am. 9% 1.519 799 1.310 South/Central Am. 1% 38% Europe 1.089 638 161 232 261 297 Asia 33% 2007 2008 2009 2010 Domestic Market Exports • Technical support in each international office: Sales per Segment – 2010 China, Switzerland and USA • 80% of total sales with long term contracts Others 7% • More than 150 active clients Special 25% 36% Printing and Writing • Strategic long-term partnerships with clients: • Logistics • Technology • Pre and post sale technical assistance Tissue 32% • Strategic focus on high value added segments 24
  • 25. Pulp Business Unit Strategy Focus on Presence in Strategic sustainable main growth relationship with international strategy clients markets 25
  • 26. Agenda Corporate View and Growth Cycle 04 Forestry Business Unit 17 Pulp Business Unit 23 Paper Business Unit 30 Results 36
  • 27. Paper Business Unit Global Paper Demand Growth Premises • Global paper demand growth (2010-2015) of 1.8% p.a. • Printing and Writing: +0.9% p.a. • Paperboard: +2.5 % p.a. • Industry is still considered fragmented, Global Paper Demand (MM ton) but with significant regional concentration CAGR 1.8% p.a. • Emerging markets lead supply and demand growth 438 401 Suzano’s Printing and Writing Focus Paperboard1 Tissue Others 2010e 2015e 1Paperboard + liquid packaging board) Source: Poyry – 2009 27
  • 28. Paper Business Unit Demand Growth Drivers Historically there is a high correlation between GDP per capita and paper consumption. In Brazil, the positive economic growth forecasts represent an important driver for the domestic paper demand. Paper Consumption x GDP per Capita USA • Education Sweden • Digital printing Consumption (kg per capita) Taiwan Japan Korea Rep. • Electronic Media UK • Plastics China. Spain Brazil GDP per Capita (US$) Latin Am. and Brazil = 41kg USA = 300kg Source: Poyry, 2008 28
  • 29. Paper Business Unit Brazil and Latin America are the main Markets Brazilian Demand (MM ton) Latin America ex-Brazil Demand (MM ton) 4.3% p.a. 3.3% p.a. 3.434 5.287 4.488 4.1% p.a. 2.788 4.2% p.a. 1.099 1.875 895 1.533 Paperboard1 Paperboard1 4.3% p.a. 2.9% p.a. 2.335 3.412 Printing & Writting2 1.893 Printing & Writting2 2.955 2010e 2015e 2010e 2015e 1Paperboard + liquid packaging board; 2 Uncoated + Coated Source: RISI Latin America Forecast –Nov/10 • Economic growth, higher GDP and increased industrial activity • Education level improvement and access to new technologies • Latin America (ex-Brazil): net importing market • Suzano’s competitive advantage: - Geographic proximity and lower logistic costs - Brand recognition - Portfolio: wide range of products 29
  • 30. Paper Business Unit Highlights Sales Volume (k ton) Sales Destination – 2010 12%North Am. Europe 10% 1.124 1.162 1.115 1.156 Others 4% 456 504 524 513 56% Brazil 668 658 591 643 South/Central Am. 18% 2007 2008 2009 2010 Domestic Market Exports • Leadership in printing & writing and white paperboard in South America • More than 90% integrated production (pulp + paper) • Fx hedge: approximately 60% of paper revenue in local currency • 2 own paper merchants – SPP NEMO (2nd largest in Brazil) and Stenfar (Argentina) • Premium pricing in the segments where we act • Lower price volatility in the domestic market 30
  • 31. Paper Business Unit Strategy Strengthening Products Revenue Asset of Distribution Portfolio Management Optimization Channels Management 31
  • 32. Agenda Corporate Overview and Growth Cycle 04 Forestry Business Unit 17 Pulp Business Unit 23 Paper Business Unit 30 Results 36
  • 33. Results Net Revenue and EBITDA Net Revenue (R$ million) and Volume (K ton) EBITDA (R$ million) and EBITDA Margin (%) 2.896 36,2% 37,7% 2.763 33,5% 2.482 30,3% 29,4% 1.924 1.686 4.514 4.064 3.952 1.703 3.099 3.410 1.469 2.214 2.599 1.040 1.034 1.161 1.596 2.295 1.302 1.797 1.814 1.850 1.657 1.915 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 R$/US$ R$/US$ 2.18 1.95 1.84 2.00 1.76 2.18 1.95 1.84 2.00 1.76 avg. avg. Domestic Market Exports Volume Paper: Revenue (R$ million) and Volume (K ton) Pulp: Revenue (R$ million) and Volume (K ton) 1.125 1.780 1.607 1.116 1.162 1.156 1.320 1.071 799 615 2.336 2.458 2.524 2.344 2.496 2.018 722 837 937 918 936 1.539 1.609 736 933 1.663 1.614 1.621 1.587 1.560 1.277 1.377 1.426 757 591 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Domestic Market Exports Volume Domestic Market Exports Volume Note: The amounts of 2009 and 2010 include the adjustments introduced by the IFRS standards 33
  • 34. Results Adequate Debt Amortization Schedule and Liquidity Profile • Cash: R$ 3.7 billion on 12/31/2010 • Liquidity horizon: low rollover risk even under stress scenarios • Competitive cost of debt and duration of 43 months • Debt breakdown on 12/31/2010: 50% in foreign currency and 50% in local currency (R$) • Moody’s: Baa3 (stable) Investment Grade; S&P: BB+ (stable) Amortization schedule (R$ million) Debt - Dec/ 2010 2.049 R$ million Amount Leverage BNDES 2,532 1.5x Nordic Investment Bank 74 0.0x 1.383 1.296 FINIMP 287 0.2x 1.282 Projetcs Debt 2,893 1.7x 625 1.012 989 Trade Finance 2,125 1.3x 153 924 628 Debentures 625 0.4x 427 Others 1,513 0.9x 758 836 767 Gross Debt 7,156 4.2x 372 384 382 Cash and Cash Equivalents 3,735 2.2x 2011 2012 2013 2014 2015 2016 onwards Net Debt 3,421 2.0x Local Currency Foreign Currency 34 34
  • 35. Results Conservative Financial Policy • Benchmark: investment grade status • Net Debt/ EBITDA ratios may increase temporarily due to growth projects • Amortization in line with the projects’ cash flow • Capex discipline • Hedging for cash flow, not for accounting results • No use of complex, illiquid or exotic derivatives Implementation of World Mucuri Project Start up of line economic (line 2) 2 at Mucuri crisis Acquisition of Ripasa 3,8x 3,7x 3,7x 3,5x 2,7x 2,0x 1,6x 5.459 4.285 4.111 3.919 3.421 2.475 1.616 1.703 1.469 1.039 1.040 1.146 1.161 913 2004 2005 2006 2007 2008 2009 2010 Net Debt (R$ MM) EBITDA (R$ MM) Net Debt / EBITDA (x) Note: The amounts of 2009 and 2010 include the adjustments introduced by the IFRS standards 35
  • 36. Results Capital Markets: Liquidity and Stock Performance Stock Performance 140 120 100 Ibovespa -1% IBrX50 -2% SUZB5 -8% 80 60 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 09 10 10 10 10 10 10 10 10 10 10 10 10 Liquidity Distribution of Proceeds (R$ tsd)1 2.471 2.211 2.052 230.810 220.690 1.655 1.565 1.107 920 27.245 715 161.222 140.114 138.438 17.700 18.166 17.095 114.099 14.523 11.968 12.133 5.025 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2004 2005 2006 2007 2009 2010 1 There wasn’t any distribution of proceeds in 2008 due to a net loss of R$ Avg. Daily Volume (R$ tsd) Number of Trades (Daily) 451 million. 36
  • 37. Results Why to Invest in Suzano? Defined Controlling Group 2024 Biotechnology Wood Pellets Organic Growth in Pulp Operational Excellence in Paper Professional Capital Management Markets 2010 + Revenue + EBITDA + Earnings + Market Appreciation 1924 37
  • 38. Investor Relations Team Antonio Maciel (CEO and IR Director) +55 (11) 3503-9061 ri@suzano.com.br Andrea Fernandes (IR Executive Manager) +55 (11) 3503-9062 andreaf@suzano.com.br Áurea Portugal (Assistant) +55 (11) 3503-9061 aportugal@suzano.com.br Eduardo Oliveira (Intern) +55 (11) 3503-9306 epoliveira@suzano.com.br Fernanda Nardy (Analyst) +55 (11) 3503-9066 fnardy@suzano.com.br Michelle Corda (Analyst) +55 (11) 3503-9359 mcorda@suzano.com.br Rosely Onizuca (Analyst) +55 (11) 3503-9355 ronizuca@suzano.com.br Investor Relations www.suzano.com.br/ri 38
  • 39. Board of Directors Experienced and active DAVID FEFFER Experience of 36 years in the pulp and paper industry. CEO of Suzano Holding S/A, Chairman of the Board of Directors of Suzano Pulp and Paper S/A and Coordinator of the Management Committee. CEO of IPLF Holding and Nemopar Investimentos Ltda. CEO Chairman and Vice President of the Board of Directors of Polpar S/A. Vice President of Premesa S/A and Vocal. DANIEL FEFFER Experience of 32 years in the pulp and paper industry. Member of Sustainability and Strategy Committee, Chairman of Polpar’s Board of Directors, President of Premesa, Corporate VP of Suzano Holding, IPLF Holding and Nemopar, President of Vocal and Vice Chairman Nemonorte, Chairman of Ecofuturo Institute’s Board of Directors. BORIS TABACOF Experience of 35 years in the pulp and paper industry. Vice President of FIESP. Member of BRACELPA’s and IBEF’s Advisory Vice Chairman Board. Chairman of the Board of Directors for the Brazilian Committee of Britain Brazil Business Forum. Experience of 31 years in the pulp and paper industry. Member of the Board and the Committee of Sustainability and Strategy; JORGE FEFFER Director of Premesa, Corporate VP of Suzano Holding and IPLF Holding, Executive Officer of Nemonorte and Vocal. Executive Vice President of Suzano Holding S/A. 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 CLÁUDIO SONDER Hoechst of Brazil. Board of Directors member of Lojas Renner S/A, RBS Group, Cyrela Brazil Realty, OGX and Chemical Group DSM/Holanda. Senior partner of Machado, Meyer, and Sendacz Opice Lawyers and former member of the Board of Directors of OAB Brazil. ANTONIO MEYER President of CESA. Former Legal Adviser and Chairman of the Legislative Committee of the American Chamber of Commerce and Director of ABRASCA’s Legislative Committee. (Independent) Member of Audit Committee. Senior partner of Integra Associates. Member of Gerdau S/A’s Board of Directors, Metalúrgica Gerdau, OSCAR BERNARDES Sao Paulo Alpargatas, Localiza, and Johnson Electric (Hong Kong); Board Member of Bunge Brazil and Alcoa Brazil. Oscar was President of Bunge International and Managing Partner in Booz-Allen & Hamilton. (Independent) Coordinator of Suzano Pulp and Paper’s Audit Committee. Member of the Board of Directors of TAM Airlines and TAM Aviação MARCO BOLOGNA Executiva. Former CEO of TAM Airlines and WTorre. (Independent) Co-Chairman of the Board of Directors of BRF-Brasil Foods. Board member of WEG S/A, Ultrapar Participações S/A and Iochpe- NILDEMAR SECCHES Maxion S/A. Former CEO of Perdigão Group. Former Director of the National Bank for Economic and Social Development - BNDES, and General Director of Corporate Group Iochpe-Maxion Industrial Holding. (Independent) 39
  • 40. Executive officers Distinguished management team Chief Executive Officer, also responsible for Investor Relations Department, 4 years at Suzano. Member of the Board of Director Member of Marfrig Frigoríficos. Vice President of BRACELPA. Former member of the Board of Director of SEBRAE, ANTONIO MACIEL NETO Gradiente, Cecrisa and Amcham. Former Chaiman of Ford Brasil and Ford Latin America, Itamarati Group, Ferronorte and Cecrisa and former Executive of Petrobras and the Federal Government. Mechanical Engineer graduated at UFRJ. Pulp Business Unit Executive Officer, joined Suzano in 2009. Former CEO of European operations of RGM Group and Commercial ALEXANDRE YAMBANIS Director of Aracruz. Graduated in Business Administration at Fundação Getulio Vargas (FGV). Chief Financial Officer, also responsible for the Legal and Strategy Departments, 15 years at Suzano. He has worked at Vale BERNARDO BERNARDO SZPIGEL for 23 years as Director, Executive Vice-President and member of the Board of Directors. PhD in Business Administration graduated SZPIGEL, 65 at University of California, Berkeley. Mechanical Engineer graduated at ITA. Chief Executive Officer of Suzano Renewable Energy and Suzano Pulp and Paper Executive Officer, responsible for Corporate Development Department, 7 years at Suzano. Former Paper Business Unit Executive Officer (2005-2008). Former ANDRÉ DORF Executive of JPMorgan in Brazil and NY (Investment Banking Global and Latin America), Chase Manhattan and Banco Patrimônio/Salomon Brothers. Graduated in Business Administration at Fundação Getulio Vargas (FGV). Chief Operation Officer, 5 years at Suzano. Has worked as Expansion Project Director of Mucuri Unit. Former executive of Dow ERNESTO POUSADA Chemical Company, in Brazil, USA and Europe. Post-Graduated in Business Administration at FIA/USP. Forest Business Unit Executive Officer, 3 years at Suzano. Former executive of Champion Pulp and Paper and International Paper JOÃO COMÉRIO as Global Forestry Strategy Officer in the USA. Post graduated in Forest Science and Wood Technology at USP – Piracicaba. Paper Business Unit Executive Officer, 6 years at Suzano. Former Executive Manager of Suzano’s Pulp Business Unit and Sales CARLOS ANIBAL General Manager for Latin America at General Electric in the Industrial Systems Division. MBA degree at Ibmec-SP. Electrical Engineer at UFMG. Human Resources Executive Officer, 2 years at Suzano. Former Human Resources Manager for Aviation Operations in General Electric in Brazil and abroad, Global HR Director for Information Technology in the United States and HR Director for Mexico and CARLOS GRINER Latin America. Former Executive of Carioca Engenharia, CR Almeida, Comlurb and Bureau Veritas. Post Graduated in Business Administration at COPPEAD-UFRJ. 40