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1Q10 Consolidated ResultsMay 14th, 2010
02/09
Pulp
Paper
• Restrictions in global pulp supply in 1Q10: climate problems in US, port strikes in Finland and earthquake in Chile
• Global market pulp production reached 10 million tons: -3.5% vs. 4Q09 and +9.5% vs. 1Q09
• Lower shipments vs. 4Q09:
1Q10 x 4Q09 1Q10 x 1Q09
Market pulp: -2.7% +6.7%
Eucalyptus: -2.4% +4.4%
• Global inventories at 26 days (Mar/10)1: still below the historical average of 33 days
• Price increases announced for April and May in all regions : U$890/ton (May, CIF Europe)
1PPPC
• Stronger domestic demand vs.1Q092: post-crisis recovery. Lower volumes vs. 4Q09 due to seasonality
1Q10 x 4Q09 1Q10 x 1Q09
Printing and Writing -15.5% +17.2%Paperboard -3.1% +36.3%
• Increase of P&W paper imports in the domestic market (24.6% vs. 21.7% in 4Q09)
• Higher Brazilian exports (41.1% of total shipments vs. 39.3% in 4Q09)
• P&W demand recovery in the US and Europe vs.1Q09:
US: +7.1%
W. Europe: +2.4%
2Bracelpa
Highlights 1Q10 - Market
Highlights1Q10 - Suzano
• Total market pulp and paper production of 653 thousand tons
• Total sales volume of 642 thousand tons: 385 ktons of pulp and 257 ktons of paper
• Net revenue of R$ 971 million
• Pulp production cash cost of R$ 425/ton¹
• Record EBITDA of R$ 504 million (margin of 51.9%). EBITDA excluding non-recurring items of R$ 315 million (margin of 32.4%)
• Sale of forestry assets in Minas Gerais state for R$ 334 million
• Net income of R$ 130 million
• Net debt/EBITDA ratio of 3.4 in March 2010 and cash and cash equivalents of R$ 2.4 billion on March 31st, 2010.
03/091 Excluding unscheduled maintenance downtimes
04/09
Pulp Business Unit
• Sales: 385 thousand tons in 1T10
� 6.6% lower than in 4Q09� 8.5% lower than in 1Q09
• Average net price in 1Q10 (domestic and exports) of US$ 645/ton, +12.7% vs. 4T09. In R$:
� 16.9% higher than 4Q09� 23.5% higher than 1Q09
• Net revenue of R$ 448.4 million
� 9.2% higher than 4Q09� 13.0% higher than 1Q09
Pulp Sales (ktons) Pulp sales destination
385 Ktons 413 Ktons
1Q10 4Q09
05/09
Paper Business Unit
Paper sales (ktons) Paper sales destination
• Sales volume recovery in Brazil vs.1Q09:
1Q10 x 4Q09 1Q10 x 1Q09
� Printing and Writing -20.1% +11.9% � Paperboard -12.9% +15.5% � Average price (domestic) +1.1% -9.9%
• Domestic sales: 53.7% of total sales in1Q10
• Exports average net prices recovery in US$:
1Q10 x 4Q09 1Q10 x 1Q09
� In US$ +2.2% +4.4%� In R$ +6.0% -18.6%
257 Ktons 307 Ktons
1Q10 4Q09
06/09
Operational Performance
• Higher share of pulp in Suzano’s revenue: 46% in 1Q10 vs. 40% in 4Q09
• Pulp cash cost¹ 6.8% higher than 4Q09:� Higher costs related to wood from third
parties and caustic soda� Lower dilution of fixed costs
• EBITDA margin of 51.9%:� Non-recurring items : +R$190 million� EBITDA excluding non-recurring items : R$315
million, margin of 32.4%
Net Revenue Breakdown
Pulp cash cost¹ (R$/ton) EBITDA (R$ MM) / Margin (%)
1Mucuri Unit
07/09
Debt and leverage
Debt Breakdown - R$ Million 3/31/2010 12/31/2009 3/31/2009
Total Debt 6,487 6,499 7,478
(-) Cash and Cash Equivalents -2,399 -2,533 -2,139
Net Debt 4,088 3,966 5,338
Net Debt / EBITDA 3.4 3.9 3.7
08/09
Key Messages
• Demand recovery in pulp and paper markets:
� Paper: higher demand in Brazilian P&W and paperboard markets (1Q10 x 1Q09)
� Pulp: inventories below the historical level and succesive price increases
• Operational margins recovery
• Solid financial position
� Adequate debt profile and competitive debt cost
� Leverage reduction: from 3.9x in Dec/09 to 3.4x in Mar/10
• Solid growth strategy
� Evolution in Maranhão and Piauí greenfield projects:
− Basic engineering in progress
− Beginning of industrial licensing process in Maranhão
− Forestry partnership program launched in Piauí
� Sale of non strategic forestry assets finished in 1Q10
� Offer to acquire Futuragene in the UK
