Fixed d Incom ome Pres esent entat ation on 4Q17 17 1 - PowerPoint PPT Presentation

Fixed d Incom ome Pres esent entat ation on 4Q17 17 1

Agenda enda 1. Company Overview 2. Investment Highlights 3. Operating and Financial Highlights 2

Section on 1 Comp mpany any Overview view 3

Comp mpany any Overview view Company Overview Competitive Advantage ges  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, approved  Energy self-sufficient  Own distribution paperboard and tissue. eucalyptus GMO with 20% yield  Diversified markets  Stronger relationship  It is also the he second la largest euc ucaly lyptus us pul ulp produce ucer and the he 5 th th increase with the end of the largest marke ket pulp ulp produc ucer in in the world ld. value chain ( Suzano  Suzano has a le leadin ing positi ition in all segments in which it Mais go to market program) operates in the Brazil ilia ian Paper Indus ndustry. Financial and Operation onal High ghligh ghts Produ duct Portfol olio Production and sales optimization to maximize assets return (R$ million on) , unless otherwise stated 2014 2015 2016 2017 201 Net Revenues 7,265 10,224 9,882 10,521 Paperb rboard rd Gross Profit 1,909 4,040 3,311 4,071 30% 30 Pulp lp 70% 70 Gross Margin 26.3% 39.5% 33.5% 38.7% 33% 33 Net Reve venue nues s R$ 10.5bn bn Adjusted EBITDA 1 2,452 4,594 3,906 4,615 Printi nting ng & 66% 66 Writin iting Adj. EBITDA Margin 33.8% 44.9% 39.5% 43.9% Net Debt 10,326 12,469 10,317 9,484 Net Debt/Adj. EBITDA 4.2x 2.7x 2.6x 2.1x Coated Uncoated Production Volume (thousand tons) 4,283 4,582 4,655 4,698 Exports Domestic Pulp Paper Source: Hawkins Wright and Company information ¹ Excludes non-recurring and/or non-cash items 4 .

Str trategy ategy to to ma maxi ximiz mize e th the e return turn on inves veste ted d capita ital • Transfo ransforma matio tional nal chang anges in • Antic ticipate ated d ret return rn impr prove veme ment nt the he indus ustr try should lead d to as res resul ult of cost t re reduc ductio tion n • Inve vestme tment nts in adjace cent nt higher gher re retu turns ns initia tiative tives coupl upled with th busine nesses such h as Futur turaGe Gene discipline ned investm vestments ts to (biot otech ch), , Fluf uff, , Ligni nin n and • Suzan ano uniqu quely y position tioned to achieve ve optim timal al cost Tissue, ue, leve verag raging on have ve an active tive ro role with th its vertica cally y inte tegra grate ted d operati ation, , Comp mpany any ’ s curr rrent nt capabi bilitie ties, , • Inve vestme tment nt in ret retrofi fittin ting and stablishe hed d comm mmercia cial to improve ve margi rgins ns by offer fering ng debot bottlene neckin cking shoul uld re reduce duce relati re ationshi hips ps and cons nsolidat ation high gh-va value added pro roduc ducts ts 21% 1 by cash costs ts per r ton n by 21 capacity city, , among ng othe her 2022 22 oppor ortu tuni nities ¹ The pulp cash cost was R$ 599/ton in the last 12 months ended on 12/31/2017. 5

Section on 2 Inves vestment tment Highl ghligh ights ts 6

Inves vestment tment Highl ghligh ights ts • Conservative Capital Structure and Strong Cash Generation • Cost Efficient Operations and Disciplined Investments to Improve Cash Generation • Robust Asset Base with Unmatched Long T erm Competitive Advantages • Best-Practices in Governance • Leading Position in the Industry 7

Conser nservative vative Capit ital al Str tructur ucture e and Str trong ong Cash h Ge Gene nerati ation on Net Debt and Leverage ge (R$ and US$ billion) 5,2x 30,0 4,2x 5 2,7x 2,6x 25,0 Continuou ous 2,1x 3 20,0 leverage ge 1 reduction on allows ows 15,0 -1 Suzano to be 10,0 3,9 3,9 3,2 3,2 2,9 prepared d for the -3 5,0 future 0,0 -5 2013 2014 2015 2016 2017 Net Debt (R$) Net Debt (US$) Net Debt / Adjusted EBITDA (R$) Operation onal Cash sh Genera ration on 1 (R$ billion) 3,5 3,5 2,7 Operating g improv oveme ments s 1,5 1,1 translated d into o robust cash sh flow generation on 2013 2014 2015 2016 2017 1.16 Sustaining Capex 1.11 1.1 0.67 1.00 3.91 1.78 2.45 4.6 Adjusted EBITDA 2 4.59 Note: ¹ Operational Cash Generation calculated as the difference between Adjusted EBITDA and Sustaining Capex 8 2 Excludes non-recurring and/or non-cash items

Long Lo g T erm rm Comm mmitment itment to to Oper erational ational Imp mprovements ovements Cost Saving Initiatives ves COGS High gher r production on and d sales s volume ∆ : +4.8 .8% (R$/ton) Higher production and sales volume increased the 1.368 1.391 1.283 1.345 dilution of fixed costs Increasi sing g utilization on of own forest st portfol olio 2014 2015 2016 2017 Decline in the share of third party wood purchases SG&A &A (R$/ton) ∆ : +20.5 .5% 191 200 177 166 Reduced operation onal costs Shorter distances between the forest and mills 2014 2015 2016 2017 contributed to reduce operational costs Inflation: +21.1% Cost per tonne significantly below inflation Ongoi going g initiatives s to lead Suzano o towards ds more profitabl ble operation ons Cost reduction on initiatives s focuse sed d on operating g efficiency coupl pled d with Cash sh Cost (R$/ton) discipl plined inves vestments to achieve optimal cost in 2021 2021e-2022 2022e 642 623 623 599 599 570 1 Industrial investment (modernization) to debottleneck 475 2 Forest base increase and average distance reduction 3 Lower inputs consumption and fixed cost dilution 2015 2016 2017 2018¹ 2021-2022¹ 9 ¹ 2016 nominal valus.

Robust st As Asset et Base e wit ith Unma matched tched Long T erm rm Comp Co mpetitiv etitive e Ad Adva vantages tages Suzano ’ s forestry competitiveness allows its operation in different regions with adequate yields Fores est Areas as Product ction Plants 1 4 Itaqui State tes s of Maranh anhão ão, , Pará, , Tocanti antins s and Piauí uí Imperatri eratriz z (State ate of Mara ranh nhão ão) Total Area 1 : 730k ha Market Pulp: 1,650k tonnes Tissue: 60k tonnes Planted Area 2 : 258k ha 1 4 Average Structural Distance: 184 km 5 Rio Verde (State tate of São Paulo ) 2 Printing & Writing Paper: 50k tonnes State tes s of Bahia, a, Espírit rito Santo to and Minas nas Gera rais 6 Total Area 1 : 279k ha 6 Muc ucuri ri (State ate of Bahia) a) 2 Portocel Planted Area 2 : 196k ha Market Pulp: 1,540k tonnes Average Structural Distance: 74 km Integrated Pulp: 200k tonnes 3 Printing & Writing Paper: 250k tonnes 3 5 Port State te of São Paulo Tissue: 60k tonnes 8 Vitória 7 Distribution Center Total Area 1 : 193k ha Santos Commercial Office 7 Lime meira ra (Sta tate te of São Paul ulo ) Planted Area 2 : 132k ha Forest Assets Average Structural Distance: 190 km Market Pulp: 350k tonnes Integrated Pulp: 300k tonnes Printing & WritingPaper: 390k tonnes Highlig lights 1,203 3 k h ha Lignin: 20k tonnes 3 Commercial presence in 15 states in Brazil: of tota tal l area ea 8 • 8 Regional Commercial Offices Suzano ano (State ate of São Paul ulo ) • 4 Regional Distribution Centers • 16 Local Distribution Centers Market Pulp: 70k tonnes 587 k h ha Integrated Pulp: 460k tonnes Plus commercial offices in USA, China, UK, of plan anted ted area ea Switzerland and Argentina. Printing & Writing Paper: 360k tonnes 5 Paperboard: 200k tonnes Eucafluff: 100k tonnes 4 Notes 1. Figures consider own and leased area 3. Start up in 2018 10 2. Figures consider own, leased and third-parties areas 4. Flexibility to produce either Fluff or Printing and Writing paper