Suzano S.a. · BMFBOVESPA:SUZB3

Suzano — Q3 2011 Earnings Presentation

13 slides from Suzano's earnings presentation, Oct 31, 2011

  1. Slide 1: 3Q11 Results

    3Q11 RESULTS October 31st, 2011 1

  2. Slide 2: General Notice

    General Notice Certain statements in this presentation may constitute forward-looking statements. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks include changes in customer

  3. Slide 3: Pulp Business Unit

    Pulp Business Unit Suzano’s 3Q11 pulp sales in line with 2Q11, with substantial shipments to China MARKET PULP HIGHLIGHTS 3Q11 x 3Q11 x 9M11 x  3Q11 highlight: shipments to China MMt 3Q11 9M11 2Q11 3Q10 9M10 − start-up of new paper capacity Market Pulp 10.5 -0.1% +3.6% 31.7 +4.8% − rebuilding of in

  4. Slide 4: Paper Business Unit

    Paper Business Unit Suzano records 62.7% domestic market share in 3Q11 PAPER MARKET HIGHLIGHTS MMt 3Q11 3Q11 x 3Q11 x 9M11 9M11 x  Reduction in domestic demand (-7.2% vs 3Q10): 2Q11 3Q10 9M10 − Paperboard (-10.3%) and Coated Paper (-20,4%) Brazilian Demand 642 +9.7% -7.2% 1,817 -2.8%  Measures ado

  5. Slide 5: Consolidated Results: Net result impacted by exchange rate variation

    Consolidated Results Suzano’s net result was mainly impacted by the foreign exchange variation, with NO cash impact Net Result Breakdown (R$ million) 104 (15) (17) (91) 2Q11 EBITDA Depreciation & Net Financial Exchange Taxes 3Q11 Depletion Expenses Rate Variation 236 (426) (642) Exchange rate variat

  6. Slide 6: Debt: Strong financial solidity despite exchange rate impact

    Debt Strong financial solidity despite the impact of the exchange rate variation on gross debt Gross Debt (R$ million) +10.4% +14.6% 8,250 7,476 7,199  Debt increased, primarily due to the impact of the 18.8% in the exchange rate variation 6,386 6,200 5,707 between the beginning (R$1.56/US$) and en

  7. Slide 7: Debt: Long-term debt profile and amortizations

    Debt Long-term debt profile and amortizations in line with cash flows from the projects Amortization Schedule (R$ million) 3,610 2,616 1.113 455 456 2011 - 2013 2014 2015 2016 2017 onwards Conservative financial policy:  Strong cash position: R$3.0 billion (Sep./11)  Long-term debt profile  Fundi

  8. Slide 8: Consolidated Results: Stability in Mucuri lowers cash cost

    Consolidated Results Stability in Mucuri allows for lower cash cost in the quarter Net Revenue (R$ million) and Volume (tons, thousands) EBITDA (R$ million) and EBITDA Margin (%) 2,234 2,034 35.2% 34.2% 675 766 791 +5.8% 22.5% 25.2% 21.2% 3,319 3,512 +6.1% 1,136 887 +0.4% 1.890 1.920 408 1,159 1,225

  9. Slide 9: Investment program highlights - Maranhão

    Key Messages Investment program highlights - Maranhão  Ongoing project: − earth-moving work concluded − infrastructure works already started − About 1,200 people working in Maranhão Unit construction − Technical operational training has started: ~300 people − Agreement for the training of around 6,

  10. Slide 10: Investment Plan Highlights - Suzano Renewable Energy and FuturaGene

    Key Messages Investment Plan Highlights - Suzano Renewable Energy and FuturaGene Suzano Renewable Energy  Protocol signed with Maranhão government  Ongoing private equity placement  Ongoing activities:  Estimated start-up: 2014 − Forestry − Engineering Wood Pellets for energy, produced from rene

  11. Slide 11: Investment Plan Status

    Key Messages Investment Plan Status Ongoing initiatives  Sale of interest in the Amador Aguiar Plant (Capim Branco)  Sale of land in the state of São Paulo Initiatives under study  Sale of certain assets in the paper segment  Sale of interest in new projects in the pulp segment 11

  12. Slide 12: 3Q11 Highlights

    Key Messages 3Q11 Highlights  Stable pulp sales volume (+0.4%) and increase in paper sales (+7.1%) vs 2Q11  Domestic market accounts for 62.7% of paper sales in 3Q11  All Suzano’s paper lines record increase in market share  Operational stability in Mucuri with consequent cash cost reduction  F

  13. Slide 13: Investor Relations Team

    Investor Relations Team Investor Relations www.suzano.com.br/ir 13

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