2. Disclaimer
♦ Certain statements in this presentation may constitute forward-
looking statements. Such statements are subject to known and
unknown risks and uncertainties that could cause the Company’s
actual results to differ materially from those set forth in the
forward-looking statements. These risks include changes in
customer demand for the Company’s products, changes in raw
material costs, seasonal fluctuations in customer orders, pricing
actions by competitors, significant changes in the applicable
rates of exchange of the Brazilian real against the US dollar, and
general changes in the economic environment in Brazil, emerging
markets or internationally.
2
3. Key Messages
• Market leader in the regional paper industry and one of the top 10 in the global
pulp industry
• One of the lowest cost producers in the world
• Solid growth strategy
• Strong management team and organizational structure
• Adequate capital structure
3
5. Ownership and Management:
A Powerful Combination
Profitable and sustainable growth
DEFINED CONTROLLING PROFESSIONAL CAPITAL MARKETS
GROUP MANAGEMENT
Assessment of management
Reputation Capital Discipline performance
Long term vision Rapid decision-making Transparency
Process Funding for growth
5
6. Ownership Structure
46% in free float
Controlling shareholders
Free Float
(Suzano Holding and Related Persons)
ON 95.0% PNA 70.7%
PNA 28.9% PNB 0.28%
PNB 0.6% TC 46.1%
TC 51.4%
Total Capital (# of shares)
Note:
ON 107,821,512
ON = Voting Shares
PNA = Non voting/Pref. A
PNA 205,120,105 PNB = Non voting/ Pref. B
TC = Total Capital
PNB 1,540,879
Total 314,482,496
Note: In treasury, there are 5,428,955 of ON, 1,009,583 of PNA and 1,527,759 of PNB representing 2.5% of total shares. These shares were not included in free float.
6
7. Suzano
New growth cycle Second largest eucalyptus pulp
producer in the world and one of the
top 10 in market pulp.
Regional leader in the paper market.
Plantations and products certified by
the FSC.
New growth cycle: from 2.8 to 7.2
million tons per year of paper and
pulp.
Solid business structure abroad:
Argentina, England, United States,
Switzerland and China.
7
8. Diversified products and markets
High quality and technology
Market pulp Paper (62% of net revenue)
Printing and writing (49% of net revenue) Cartonboard
(38% of net
revenue) Uncoated (41% net rev.) Coated (8% net rev.) (13% net rev.)
#2 in Brazil #1 in Brazil #1 in Brazil
market share 28% market share 24% market share 29%
45% in the domestic market 55% in exports
R$ 4.0 billion in net revenue
Note: Market share numbers include paper imports.
Last twelve months until Mar/09.
8
9. Lands and forests
♦ Suzano’s production is based on 100% of renewable eucalyptus planted forests, preserving a
native forest area of 39% (19% above Brazilian environmental Legislation requirements).
Owned land (tsd ha)
Areas of Activity and Flow
of Production
State Total Planted
Average distance of São Paulo 89 49
forests: 74 Km
BA e ES 212 122
Minas Gerais 58 22
Maranhão 112 1
Portocel
Conpacel* (SP) 51 36
Vitória Port
Total SPC** 522 230
Average distance of
forests: 211 Km Independent farmers 83
* Conpacel: corresponds to 50% of Ripasa’s area.
** It does not include new sites announced.
Santos Port
Preservation: 205 tsd ha.
9
10. Challenging goals and
cutting-edge technology
Forest Yield Evolution (m3/ha/year)
Monoprogeny planting
Biotechnology
Soils and nutrition 45
Clones
Classical
improvement
29 31
21
Seeds
Performance
1960 1970 1991 1998 2008
Evolução do Rendimento em celulose/(tsa/ha/ano)
Productivity (mtons / ha year)
Technologic Innovation
Biotechnology
More wood/ ha 70% a 100% Classical improvement
More pulp/ m3 100%
11
Higher quality 5.5
Less Area
Lower Costs 1980 2000 2020 (projection)
10
11. Organizational Structure
BD Committees
Board of Directors (BD)
9 members (4 independent) Management
Sustainability &
Strategy
CEO Audit
SP Forest BU Pulp BU Paper BU
Operations
SP BU: Business Unit
Strategy, Corporate
Dev. & IR
SP Objectives:
Finance
• Greater customer focus
SP • Improved accountability
Human Resources
• Development of leaders
SP: Service Providers
11
12. Board of Directors
experienced and active
Experience of 35 years in the pulp and paper industry. CEO of Suzano Holding S/A and Chairman of the Board of Directors of Suzano
DAVID FEFFER, 52 Pulp and Paper S/A. CEO of IPFL Holding. CEO and Vice President of the Board of Directors of Polpar S/A. Vice President of
Chairman Premesa S/A and Vocal.
Experience of 31 years in the pulp and paper industry. Member of Sustainability and Strategy Committee, Chairman of Polpar’s
DANIEL FEFFER, 49 Board of Directors, President of Premesa, Corporate VP of Suzano Holding, the IPLF Holding, President of Vocal, Chairman of
Vice Chairman Lazam-MDS Insurance Brokers and Administrator’s Board of Directors, Chairman of Ecofuturo Institute’s Board of Directors.
BORIS TABACOF, 80 Experience of 34 years in the pulp and paper industry. Vice President FIESP. Member of ABRINQ and EMBRAER’s Board of
Directors. Member of BRACELPA’s Advisory Board. Former member of the Association Committee of Foreign Trade of Brazil and
Vice Chairman Chairperson of the Advisory Committee on Paper and Wood Products of Food and Agriculture UN organization in Rome.
Experience of 30 years in the pulp and paper industry. Member of the Board and the Committee of Sustainability and Strategy;
JORGE FEFFER, 48 Director of Premesa, Corporate VP of Suzano Holding, a member of Lazam MDS Insurance Brokers and Administrator’s Board of
Directors and VP and Director of the Council of Ecofuturo Institute.
Coordinator of Sustainability and Strategy Committee and member of Audit Committee and member of the Compensation
Commission of the Board of Directors; Former president of the board and CEO of Hoechst of Brazil and senior executive of Hoechst
CLÁUDIO SONDER, 67 AG, Frankfurt. Member of RBS Group’s Board of Directors, of Cyrela Brazil Realty, of OGX, of Chemical Group DSM/Holanda,
President of Renner Stores’ Board of Directors. ( Independent)
Senior partner of Machado, Meyer, and Sendacz Opice Lawyers and Director of OAB, Brazil. President of CESA.Former Legal
ANTONIO MEYER, 62 Adviser and Chairman of the Legislative Committee of the American Chamber of Commerce and Director of ABRASCA’s Legislative
Committee. Former Justice Secretary for the State of São Paulo.
Senior partner of Integra Associates. Member of Gerdau SA’s Board of Directors, Gerdau Metallurgical, Satipel Industrial SA, RBS
Group, Sao Paulo Alpargatas, Locates, Delphi Corporation (USA) and Johnson Electric (Hong Kong); Board Member of Brazil's
OSCAR BERNARDES, 62 Bunge, Brazil and Alcoa Veirano Assoc. Oscar was President of Bunge International and managing partner in Booz-Allen & Hamilton.
(Independent)
Coordinator of Suzano Pulp and Paper’s Audit Committee. Former General Manager of WTORRE and President of TAM Airlines.
MARCO BOLOGNA, 54 Member of TAM and Daycoval Bank Board of Directors. (Independent)
Chairman of Board of Directors of Perdigão. Board member of WEG SA, Ultrapar Participações SA and Iochpe-Maxion SA. Former
NILDEMAR SECCHES, 60 Director of the National Bank for Economic and Social Development - BNDES, and General Director of Corporate Group Iochpe-
Maxion Industrial Holding. ( Independent)
12
13. Distinguished Management Team
Chief Executive Officer, 2,5 years at Suzano. Board of Directors’ Member of Archer Daniels Midland Company – ADM and of Marfrig.
BRACELPA’s VP. Former Board of Directors’ member of SEBRAE, Gradiente, Crecisa and Amcham. Former chaiman of Ford Brasil
ANTONIO MACIEL NETO, 51
and Ford Latin America, Itamarati Group, Ferronorte and Cecrisa and Executive of Petrobrás and of the Federal Government.
Mechanical Engineer graduated at UFRJ.
ALEXANDRE YAMBANIS, Pulp Business Unit Executive Officer, joined Suzano in 2009. Former CEO of European operations of RGM Group and
57 commercial director of Aracruz. Graduated in Business Administration at Fundação Getúlio Vargas.
Chief Financial Officer, responsible for Legal, 14 years at Suzano. Has worked at pulp and paper sector for 29 years. Former
BERNARDO SZPIGEL, 63 Director, Executive Vice-President and member of the Board of Directors of Vale. PhD in Business Administration graduated at
University of California, Berkeley.
Strategy, Corporate Development and Investor Relations Executive Officer, 6 years at Suzano. Former Paper Business Unit
ANDRÉ DORF, 36 Executive Officer (2005-08). Former 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 FGV.
Chief Operation Officer, 5 years at Suzano. Has worked as Expansion Project Director of Mucuri Unit. Former executive of Dow
ERNESTO POUSADA, 41 Chemical Company, in Brazil, USA and Europe. Post-Graduated in Business Administration at FIA/USP.
Forest Business Unit Executive Officer, 2 years at Suzano. Former executive of Champion Pulp and Paper and International Paper
JOÃO COMÉRIO, 44 in Brazil and USA. Post graduated in Forest Science and Wood Technology at USP – Piracicaba.
Paper Business Unit Executive Officer, 4 years at Suzano. Former Executive Manager of Suzano’s Pulp Business Unit and Sales
CARLOS ANIBAL, 39
General Manager for Latin America at General Electric, at the Industrial Systems Division. MBA degree at Ibmec São Paulo.
Human Resources Area Executive Officer, joined Suzano in 2008. Former Human Resources Manager of Operations in General
CARLOS GRINER, 45 Electric in Brazil and abroad, Global HR Director for Information Technology in the United States and HR Director for Mexico and Latin
America. Former Executive of Carioca Engenharia, CR Almeida, and Bureau Veritas. Post Graduated in Business Administration at
COPPEAD.
13
14. Management model
Operational Excellence: Awards and recognitions
Six Sigma / Routine management
Revenue management
Matrix budgeting: fixed costs and SG&A
Customer Oriented:
New and clearer commercial policies
Improve customer satisfaction
Alignment of interests:
Compensation of executives focused on EVA
metrics
Higher variable portion in total compensation
Strategic Planning:
Focused on Value-Based Management (EVA)
M&A opportunities
Enterprise risk management
Sustainability
R&D & Innovation
14
15. Sustainability
Triple Bottom Line – GRI approach
Growing scale and revenues
Financial and Economic Improving margins and returns
Solid cash flow generation
Environment Social
FSC – forest management and chain Public libraries
of custody certification
Public schools remodeling
CCX and WBCSD member
Educational programs (with ECOFUTURO)
ECOFUTURO (Parque das Neblinas)
Notes: CCX – Chicago Climate Exchange WBCSD - World Business Council for Sustainable Development
15
17. Mucuri: successful implementation
♦ World record: recovery boiler operating in 20.5 months
♦ Construction concluded in 22 months
♦ Startup 35 days ahead of schedule
♦ Initial budget maintained despite appreciation of the Brazilian Real
US$ Million 2005R 2006R 2007R 2008E Total
CAPEX 55 718 479 58 1,310
17
18. New growth cycle
♦ Based on the new projects, the annual pulp capacity will grow 4.3 million tons and the total installed
capacity* will be 7.2 million tons per year of pulp and paper.
Pulp
New Unit and
Paper
Piauí debottleneck
Unit of Mucuri
7,150
Maranhão
Unit
5,450
4,150
6,050
2,850 2,850 2,850 2,850 4,350
2,740
3,050
1,720 1,920
1,485 1,650 1,750 1,750 1,750 1,750
1,185 1,200 1,240 640 820
456 570
425 425
760 775 784 915 1,080 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TBD
* The effective capacity will depend on the learning curves. 18
19. New growth cycle
♦ Three new pulp lines and Mucuri Unit debottleneck
Investments already started:
Maranhão State Unit
Piauí State Unit
To be defined until the end of 2009:
Debottleneck of Mucuri Unit by optimizing the
existing Lines 1 and 2
New line in one of the new units (Maranhão
or Piauí States) or a new location
Capacity of 4.3 MM tons per year
New forest boundaries (Greenfield projects) - basis
for new growth cycles.
Schedule of Investments*
2009-2015 US$ 570 million Forestry Base
2011-2017 US$ 3,6 billion Industrial New Lines
* It does not include debottleneck of Mucuri Unit and third line.
19
20. New growth cycle
♦ Investments in the two new “greenfield” market pulp mills will continue:
Maranhão State Unit: 2013
Piauí State Unit: 2014
♦ Capex in the forestry base already started and the partnerships, previously
announced, are evolving accordingly.
♦ Management will analyze the global economic and pulp market outlooks and
submit the Mucuri debottleneck and the new pulp line projects to the Board in
the 2H09.
♦ Definition of the new projects schedule and new start-up dates until the end of
2009.
20
22. Bleached pulp capacity in 2008
Market Pulp Bleached hardwood pulp Eucalyptus pulp
Japan; Asia/Africa Africa; 4% Nordic; West
Canada;
Europe;
2% ; 11% 8% USA; 6% 1%
Canadá; Nordic; 16%
Oceania; 16% Asia/Africa
8%
1% ; 20%
USA; Japan;
17% West
2% Europe;
Brazil; Latin
11%
17% America;
East 21%
Latin Europe;
Nordic; Latin 3%
America -
12% America -
Others; West Brazil; Brazil;
11% East Others;
Europe; 32% 58%
Europe; 11%
10%
4%
Total 51.2 million Total 26.8 million Total 14.8 million
Market pulp capacity in 2008
Latin America 14.020 Nordic 6.305 East Europe 2.290
United States 8.870 Asia/Africa 5.465 Japan 780
Canada 8.055 West Europe 4.985 Oceania 445
Source: Hawkins Wright - December, 2008 Volumes don’t include production of unbleached pulp and high yield pulp.
22
24. Pulp cash cost
Brazil: structurally low
US$ / t (CIF/ North Europe)
750
US$ 500 - 610 / t
US$ 410 - 550 / t
List price (Europe): US$586/t*
List price (Europe): US$488/t*
US$ 260 – 310 / t
East Canada
France and Belgium
BC Coast
350
BC Interior
Iberia e Norway
Finland
Canada
Sweden
Europe
Finland
USA
USA
Sweden
SUZ
Chile
Indonesia
Chile
Brazil
Low Cost High Cost High Cost
16.8 MM ton 10.0 MM ton 23.4 MM ton
Hardwood Softwood
Source: Hawkins Wright, December 2008 - Volumes don’t include production of unbleached pulp and high yield pulp.
* FOEX, May 19th, 2009
24
25. Capacity closures and downtimes
Capacity closures and downtimes from 2005 to 2008 reached more than 4 million tons.
Additional capacity reductions are expected in 2009.
North America Europe Latin America Asia Total
2005 (320) (70) (390)
2006 (1,270) (70) (1,340)
2008 (1,700) (830) (2,530)
1H09 (1,546) (1,253) (229) (809) (3,837)
Total (4,836) (2,223) (229) (809) (8,097)
Sources: Hawkins Wright and Terrachoice, April 2009
25
26. Pulp unit
Solid track record of exports
♦ More than 120 customers in more than 47 countries
Pulp Sales (thousand tons) Pulp Sales Destination – 1Q09
Domestic Market 1,320 Brazil
South/Central
12.7%
Exports America
0.3%
North America
799
7.6%
615 Asia
549 80% 48.1%
421
78%
81%
84%
87%
Europe
16% 19% 22% 20% 31.3%
13%
2005 2006 2007 2008 1Q09
26
28. Global paper demand
P&PB demand (million tons / year)
CAGR = 2.1%
505
400
2008 2020
Education in emerging markets
New printing technologies (on demand)
Broad access to home printers in emerging markets
“Packaging substitution”: environment and printability
Notes: P&PB – Paper and paperboard.
28
29. Drivers for growth in demand
♦ Historically there is a high correlation between per capita GDP and paper consumption. In
Brazil, an expected higher growth of economy should stimulate the domestic demand for paper.
Consumption x GDP per Capita
Consumption, kg per capita
350
USA Education
300
Digital printing
250 Sweden
Taiwan Japan
Customized media
200 Korea, Rep.
Intelligent packaging
150
100 UK
Electronic media
China
50 Spain
Plastics
Brazil
0
0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000
GDP per capita, US$
India = 7kg USA = 300kg
Source: Poyry, 2008
29
30. Global demand growth by grade
♦ The grades that Suzano produces present higher growth rates.
Projected growth (2006 a 2020), by segment
Demand growth CAGR % / year
Corrugated
board
Tissue
paper
Average: 1.9%/a
Cartonboard *
3,5
woodfree *
Coated
woodfree *
3,0
Uncoated
2,5
2,0
mechanical
Coated
mechanical
Uncoated
1,5
Newsprint
Others
Paper
Kraft
1,0
0,5
0,0
-0,5
-1,0
Participation in volume, in %
-1,5
0 20 40 60 80 100
Source: Poyry, 2008 Note: * Grades that Suzano produces.
30
31. Demand growth in Brazil
♦ Brazilian market represented 56%* of our paper sales.
Evolution of the Brazilian Consumption of P&W and Cartonboard
190 CAGR = 12,7%
180 +17%
170
80%
160
150
-1,4% CAGR = 6,9%
20% 19%
140
130
+3,2% CAGR = 4,7%
120
110
100
2003 2004 2005 2006 2007 2008
Uncoated Coated Cartonboard
* Last twelve months until Mar/09
Source: Bracelpa, including imported papers Note: P&W: Printing and Writing (Uncoated + Coated) 31
32. Suzano: focused in the region
♦ Brazil and South/Central America were 73%* of volume sold.
♦ About 44%* of Suzano's production was exported. A statistical risk / return analysis
defines the sales breakdown among the regions.
Participation in volume sold
Sales Volume Paper Sales Destination - 1Q09
América do
Sul/Central
44% 38% 41% 43% 47% 14.4%
América do Norte
56% 62% 59% 57% 53%
12.1% Brasil
52.6%
2005 2006 2007 2008 1Q09 Europa
13.1%
Domestic Market Outros
Exports 7.8%
* Last twelve months until Mar/09
32
33. Paper prices
Stable prices in the domestic market, in Reais.
Average Price (R$ / ton)
2500
2300
2100
1900
Prices increasing in the international market, in Dollars.
The price decrease was more than
compensated by the devaluation of the Real
Average Price (US$ / ton)
1200 3,5
Exchange Rate
1000 3,0
2,5
800
2,0
600 1,5
Average Price Exchange Rate
400 1,0
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
33
34. Paper business in Suzano
1. Focused & Rational Portfolio
Uncoated papers in the local and international markets
Coated papers and board mainly in the LA Region
2. Significant Market Position
World class scale and cost competitiveness in uncoated paper
Leadership in P&W in South America
Leadership in the most attractive segments in the local markets
3. High quality assets and infrastructure
Competitive production cost and flexible finishing structure
Excellence in logistics and sales approach
4. Paper priorities
Optimization of products and regions mix
Redefinition of the commercial approach and relationship with the market
Growth with profitability
34
36. Results 2008
%
Results 2008 2007 2008/2007
Sales volume (000 tons) 2,482 1,925 28.9%
Paper volume domestic market (000 tons) 658 668* -1.5%
Pulp volume export market (000 tons) 1,089 638 70.7%
Net revenue - R$ million 4,064 3,410 19.2%
Net income - R$ million (451) 539 n.a.
EBITDA - R$ million 1,469 1,146 28.2%
EBITDA - US$ million 800 593 34.9%
EBITDA margin 36.2% 33.6% 2.6 p.p.
Exchange Rate (R$/US$) 1.84 1.95 -5.8%
Net debt / EBITDA (LTM) 3.7 3.7 n.a.
Notes:
i. Since 2008 include the accounting changes introduced by Law 11.638/07
ii. n.a. – non applicable
* Includes volumes from Limeira mill and Cubatão mill disposed in 4Q07
36
37. Results 1Q09
% %
Results 4Q08 1Q09 1Q08 1Q09/4Q08 1Q09/1Q08
Sales volume (000 tons) 632 654 619 3.5% 5.7%
Paper volume domestic market (000 tons) 171 123 146 -28.4% -16.2%
Pulp volume export market (000 tons) 278 368 286 32.2% 28.4%
Net revenue - R$ million 1,100 943 970 -14.3% -2.8%
Net income - R$ million (495) 90 124 n.a -27.6%
EBITDA - R$ million 382 316 343 -17.3% -7.9%
EBITDA - US$ million 167 136 197 -18.7% -30.9%
EBITDA margin 34.7% 33.5% 35.3% -1.2 p.p. -1.9 p.p.
Exchange Rate (R$/US$) 2.28 2.32 1.74 1.8% 33.3%
Net debt 5,459 5,338 4,225 -2.2% 26.3%
Net debt / EBITDA (LTM) 3.7 3.7 3.5 n.a n.a
Note: Since 2008 include the accounting changes introduced by Law 11.638/07.
37
38. Net revenue and Ebitda
Net Revenue (R$ million) EBITDA
2.93 2.44 2.18 2.32
Domestic Market 1.95 1.84
Export s
4,064 39.4%
36.2% 33.5%
3,410 32.8% 33.5% 33.6%
3,099 1,469
2,787 54%
2,640
47%
42% 1,146
49% 47% 1,039
913 1,040
53% 46% 943
58% 316
51% 53% 61%
39%
2004 2005 2006 2007 2008 1Q09
2004 2005 2006 2007 2008 1Q09
Ebitda - R$ million Ebitda margin Exchange rate R$/US$
Note: Since 2008 include the accounting changes introduced by Law 11.638/07
38
39. Debt and leverage
Mucuri Project
Acquisition of Ripasa Startup Line 2
3,8 at Mucuri
7.000 3,7 3,7 4,0
3,7
6.000 3,5
5,459 5,338
2,7 3,0
5.000
4,285
Net Debt / EBITDA
2,5
R$ Million
3,919
4.000
2,0
1,6
3.000
2,475 1,5
2.000 1,616 1,469 1,442 1,0
1,039 1.040 1,146
913
1.000 0,5
0 0,0
2004 2005 2006 2007 2008 1Q09 *
Net Debt EBITDA Net Debt/EBITDA
Note: Since 2008 all numbers include the accounting changes introduced by Law 11.638/07
* Net Debt as of 03/31/09 and last twelve months EBITDA until March, 2009
39
41. Key Messages
• Market leader in the regional paper industry and one of the top 10 in the global
pulp industry
• One of the lowest cost producers in the world
• Solid growth strategy
• Strong management team and organizational structure
• Adequate capital structure
Focus on sustainable and profitable growth
41
