Fixed d Incom ome Pres esent entat ation on July ly 2016 1 - PowerPoint PPT Presentation

Fixed d Incom ome Pres esent entat ation on July ly 2016 1

Discla sclaimer imer The statements in this presentation 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

Agenda enda 1. 1. Company any Over ervie view 2. Strategy 3. Pulp and Paper Market 4. Financial and Operational Highlights 3

Comp mpany any Overview view Suzano at a Glance nce Competi mpetitiv tive Advanta ntages es  Suz Suzano no Papel e Ce Celul lulose is is a forestry based publ ublic icly ly he held Forestry Pulp Paper company ny, controlled by Suzano Holding.  Shorter Eucalyptus  Low production  Regional leader  With ith over 90 90 years of of operatio ions, the Company produces cycle: 7 years costs  Vertically integrated market pulp (paper grade and fluff) and paper, which portfolio is  Biotechnology:  Certified products industrial operations composed by coated and uncoated printing & writing paper and approved  Energy self-sufficient  Own distribution paperboard. eucalyptus GMO with 20% yield  Diversified markets  It is also the he second la largest euca caly lyptus pulp lp produce ucer and the he increase fift ifth la largest marke ket pulp produce ucer in in the he world (Source: Hawkins Wright).  Suzano has a le leadin ing positi ition in all segments in which it operates in the Brazil ilia ian Paper Indus ndustry. Financial nancial and d Operat ration ional al Highlights hlights 1 Geog ograp raphi hic c Foot otprint print Highlights ts (R$MM) , unless otherwise stated 2013 2014 2015 1Q16, LTM 5 industrial plants: Itaqui • Imperatriz, MA – Pulp Net Revenues 5,689 7,265 10,224 10,785 • Rio Verde, SP – Paper • Mucuri, BA – Pulp/Paper Gross Profit 1,498 1,909 4,040 4,396 • Limeira, SP – Pulp/Paper • Suzano, SP – Pulp/Paper Gross Margin 26.3% 26.3% 39.5% 40.8% Commercial presence in 15 states in Brazil: Adjusted EBITDA 1,781 2,452 4,594 4,931 • 8 Regional Commercial Offices Portocel Adj. EBITDA Margin 31.3% 33.8% 44.9% 45.7% Mill • 4 Regional Distribution Centers Forest • 16 Local Distribution Net Debt 9,187 10,074 12,263 11,237 Centers Vitória Port N.Debt/Adj.EBITDA LTM 5.2x 4.1x 2.7x 2.3x Plus comercial offices in USA, Santos China, UK, Switzerland and Distribution Center Argentina. Production Volume (million tonnes) 3.225 4.283 4.582 4.689 Commercial Office 4 Note: Figures as of 1Q16, LTM

Corpor porate ate Go Gover ernanc nance Board of Directors, Management, Committees and Policies Capital Stru ructure (Mar/2016) Board d of Director or, , Committees s and d Manage geme ment Members of the Board are well-known in the Brazilian Corporate Free Float 42% landscape and are supported by the committees on the decision 56% 56% making process Controlling Group Feffer Family Treasury 2% 2% Board of Direct ectors Market Value: R$ 14.1 billion Sustainability and Management Strategy Audit Committee Committee Committee Policies We have corporate policies that improve our business Eight members, four r independ ndent nt management practices, compliance with laws and Board of Directors will be mandated until 2018 Annua ual Share reho hold lders rs ’ Meeting regulations, and broaden our relationship with capital markets. All policies were approved by our Board of Management will be mandated until 2017 7 Annua ual Share reho holders rs ’ Meeting Directors. Below is the list of policies: Corporate Governance Policy • Risk Management Policy • CEO CEO Internal Controls Policy • Anti-Corruption Policy • Pulp and Disclosure Policy • Forestry Human CFO / IR COO Paper Business Unit Resources Security Trading Policy • Business Unit 5

Forestr estry Assets ets Suzano’s forestry competitiveness allows its operation in different regions with adequate yields States of of Mara ranhão ão, Pará rá, Tocantin ins s and Piauí: í: 1,094 4 k ha T otal¹: 635 k ha • of total l area Planted²: 217 k ha • Average Structural • 550 k ha Distance: 150km of plan anted ted ar area ea States of of Bahia, a, Espíri írito o 70% Santo and Minas s Gerai ais: s: targe get t of own forestr estry y T otal¹: 271 k ha • Planted²: 201 k ha suppl pply y in the e long g run • Average Structural • Distance: 75km São Paulo o State: T otal¹: 188 k ha • Planted²: 132 k ha • Average Structural • Distance: 220km Data on 03/31/2016 Note: Both own and leased land can suffer variation up to 5% quarter over ¹ Own and leased area quarter. The total amount can differ due to rounding. 6 ² Figures consider own, leased and third-parties areas Check out on http://info.fsc.org/ the certificate area.

Pr Product duct Portfolio tfolio Production and sales optimization to maximize assets return Paperboa board Pulp 35% Net Revenues s Printing g & Writing 39% 61% R$ 10.8bn bn 1 65% Uncoated Coated Exports Domestic Pulp Paper Suzano is the world’s second largest eucalyptus market pulp producer and South America’s largest distributor of paper and printing products. 7 Note: Figures as of 1Q16, LTM

Agenda enda 1. Company Overview 2. 2. Str trategy tegy 3. Pulp and Paper Market 4. Financial and Operational Highlights 8

Leverage Le verage Go Goal l Achieved hieved Consistent results allow Suzano to advance in the strategy Operati ation onal al Cash Generat ation on (1) (R$ billion) and Lever erage age (x Adjusted EBITDA) 5,2x 4,1x 5,0x 2,7x 2,3x 3,7x 2,3x 2,3x 3,7 3,4 1,5 1,1 dez/13 dez/14 dez/15 mar/16 (1) Operational Cash Generation (R$ million) Net Debt / Adjusted EBITDA (x, US$) Net Debt / Adjusted EBITDA (x, R$) Record high operational cash generation in LTM 2 Note: 1 – Operational Cash Generation means the difference between Adjusted EBITDA and Sustaining Capex 9 2 - Last twelve months ended on 03/31/2016

Strategy to maximize the return on invested capital... ... and generate more value to shareholders 10

Project Pr ject 5.1 .1 Investment in retrofitting and debottlenecking to reach the optimal structural cost Indust strial rial investment (modernization) in Imperatriz and Mucuri mills Capacity of 5.1 millio lion tonnes nnes in 2018 Forest est base se increase and average distance reduction Cash cost st reduct uction ion: lower inputs consumption and fixed cost dilution T otal estimated Capex: R$ 1.14 4 billion llion 1 ; estimated IRR of 47% Pulp and Paper Capacity city Expected ed Cash Cost 2 (Million tonnes) (US$/tonnes – Assuming an exchange rate of R$3.80/US$) US$18 186/ 6/tonne US$15 150/ 0/tonne in 4Q15 US$12 125/ 5/tonne 5,1 in 2018 in 2021 - 2022 4,9 4,8 2016 2017e 7e 2018e Note: 1 – Estimated Capex for 2017 and 2018 is R$585 million and R$45 million, respectively 11 2 – Exchange rate of R$3.80/US$ used in the analysis

Adjacent acent Business inesses es Investiments in high profitability and scalability projects that innovate and break paradigms Fu Futura raGen Gene Fluff ff First company in the world to use First genetically modified clone approved by Brazilian hardwood to produce fluff Biosafety Authority for Up to 70% softwood substitution for commercial purposes feminine hygiene and up to 30% Innovation Potential to increase productivity for diapers by nearly 20% Lign gnin in Tiss ssue Jumbo rolls production for companies in Replacement of petrochemicals with renewable source finished the tissue segment and/or product It is used in several high value- Operational and logistics added applications competitiveness Monetization of ICMS credits 12

Agenda enda 1. Company Overview 2. Strategy 3. 3. Pulp and Paper r Marke rket 4. Financial and Operational Highlights 13

Gl Globa bal l Paper per Consum nsumption ption Demand for pulp driven by tissue and paperboard consumption Estimated demand growth until 2030 4 Tissue 3 Containerboard Paperboard 2 Packaging Uncoated 1 (%p.a.) Uncoated Woodfree Mechanical 0 Other Coated -1 Woodfree -2 Coated Mechanical -3 Newsprint 20 40 60 80 100 Share on total fiber consumption in 2014 (%) Consumpt mptio ion by by Regio ion Market ket Pulp lp Global l Deman mand (million tonnes) 67 (%) 62 60 54 Asia Europe Asia 35 45% 23% 31 30 23 Europe North Americ ica Latin Latin America ica 19 20 19 19 America 7% 8 Other 8 8 8 North America 4 3 4 4 6% 19% 2010 2015 2016e 2020e 14 Source: Poyry (2015)