2Q16 Results Disclaimer The statements in this presentation - PowerPoint PPT Presentation

2Q16 Results

Disclaimer The statements in this presentation constitute projections or forward-looking statements. Such statements are subject to known and unknown risks and uncertainties that could cause the expectations expressed to not materialize or the actual results to differ materially from the expected results. These risks include changes in future demand for the Company’s products, changes in factors that affect domestic and international product prices, changes in cost structures, changes in the seasonality of markets, pricing actions by competitors, foreign currency fluctuations and changes in the political and economic environments in Brazil, in emerging markets or internationally. 2

Increasing operational performance with capital discipline OPERATING CASH GENERATION¹ LTM² (R$ billion) NET DEBT/ADJUSTED EBITDA LTM² (x) 5.2x 3.8 3.7 3.5 4.1x 3.3x 2.7x 2.3x 2.2 2.1x 1.5 1.1 dec/13 dec/14 jun/15 dec/15 mar/16 jun/16 dec/13 dec/14 jun/15 dec/15 mar/16 jun/16 Record-high Revenue, Adjusted EBITDA and Operating Cash Generation in the LTM of R$10.9 billion, R$4.94 billion and R$3.8 billion, respectively Strong Operating Cash Generation in 2Q16 : R$ 723 million 2Q16 Adjusted EBITDA of R$803/ton shows the resilience of the paper industry Lower cash cost in 2Q16 (ex-maintenance downtime): R$636/ton (-R$18/ton vs. 1Q16) COGS +0,5% and SG&A -9% vs Inflation of +8,8% (2Q16 vs. 2Q15) Liability Management: Debt Dollarization , implemented in July/2016, reinforces management and financial strength Note: (1) Operating cash generation considers Adjusted EBITDA less Sustaining CAPEX 3 (2) Last twelve months

Paper Price increase implemented in the Brazilian market Paper Production¹ (‘000 tons ) Paper Sales¹ (‘000 tons ) 566 595 587 547 299 294 376 272 360 298 293 297 196 192 184 187 190 103 102 88 2Q15 1Q16 2Q16 6M15 6M16 2Q15 1Q16 2Q16 6M15 6M16 Exports Domestic Market Brazilian demand impacted by the macroeconomic scenario ( -5.7% in 2Q16 vs 2Q15) Paper price increase implemented in the Brazilian market , as announced, in the uncoated printing & writing and paperboard segments Improvements in Suzano’s Go-To-Market Project in Brazil ( Suzano+ Program) Market share gain in coated P&W paper segment Fire at Suzano Mill: impact on EBITDA from the insurance deductible (non-recurring) and inventory and production losses of 15,000 tons (3Q16 volume) 4 Note¹: Data excludes Embu Unit results

Pulp Margin impacted by list price reduction and FX Pulp Sales (‘000 tons) Pulp Production (‘000 tons ) 1,816 1,728 1,662 1,600 212 241 912 906 910 816 804 805 100 112 1,604 105 1,421 806 799 700 2Q15 1Q16 2Q16 6M15 6M16 2Q15 1Q16 2Q16 6M15 6M16 Exports Domestic Market Global demand improving : pulp shipments +4.2% and eucalyptus pulp + 8.7% ( 2Q16 vs 2Q15) Production impacted by longer maintenance downtime in Imperatriz Mill, due to the first investments for the implementation of Project 5.1 and planned ramp up Inventory reduction in 2Q16: 94,000 tons 5

Cash cost decrease reflects focus on strategic pillar of Structural Competitiveness Consolidated Pulp Cash Cost Ex-Maintenance Downtime (R$/ton) 16 25 4 (11) (22) (19) Inflation on: : +8.8% Inflation on: : +1.7% .7% 654 636 626 + 1.5% - 2.7% + R$ 10/ton on - R$ 18/ton on 2Q15 Wood Chemicals Fixed Cost 2Q16 Wood Chemicals Fixed Cost 1Q16 Trend of cash cost reduction:: - Continuous third-party wood and average distance reduction in the supply mix at Mucuri Mill - Better chemical consumption 6

Consistency on costs and expenses below inflation Revenue and Adjusted EBITDA (R$ million) 2,708 2,503 2,382 Revenue 1,269 967 959 Adjusted EBITDA 2Q15 1Q16 2Q16 Average age FX (R$/US$) ) 3.07 3.91 3.51 Average age PIX Europe ope (US$/ton) 781 762 693 693 SG&A. / Sales Volume (R$/ton) COGS (R$/ton) Inflation on: : +8.8% Inflati tion on: : +8.8% +0.5% -9.0% 1,395 1,388 188 1,350 171 170 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 7

Paper business resiliency in moments of pulp market turbulence Adjusted EBITDA (R$ / ton) 40 1,075 803 (257) (44) (10) (1) 1Q16 Paper Pulp COGS SG&A Others¹ 2Q16 Investments in adjacent businesses seek to reduce results volatility 8 Note: ¹Others includes depreciation, amortization and depletion; other operating income/expenses; and non-recurring adjustments.

Dollarization and debt maturity profile reinforce financial strength Debt / Adjusted EBITDA (x) Average Cost of Debt (%) 6.1x Jun/14 91.8% of CDI 4.7% 4.5x 4.2x Jun/15 89.9% of CDI 3.3x 4.0% 2.6x 2.1x Jun/16 84.2% of CDI 4.3% Post Bond¹ 4.4% Jun/14 Jun/15 Jun/16 BRL USD Gross Debt Net Debt Debt Profile Post Bond Green Bonds: US$ 500 million @ 5.75% coupon Gross Debt / Adjusted EBTIDA: 2.9x Gross Debt: R$14.4 billion Average debt maturity of 3.6 years (vs 3.0 years in 2Q16) Cash Position of R$ 4.2 billion 9 Note: ¹Post Bond includes derivatives for debt swap

CAPEX reduction, with projects on time and unchanged scope, reinforces financial discipline CAPEX (R$ billion) 6M16 2016e 2016Revised SUSTAINING 0.6 1.1 1.1 MODERNIZATION AND EXPANSION 0.4 1.3 1.0 TOTAL 1.0 2.4 2.1 Savings from negotiation and fx, and also from payments postponements 10

Flexibility in capital allocation: priority on the deleveraging ... ... and on value creation to shareholders 11

BETTER EVERYDA Y STRONG AND KIND www.suzano.com.br/ir ri@suzano.com.br