2 q10 earnings presentation

2Q10 Consolidated Results August 12th, 2010

Highlights 2Q10 –Pulp and Paper Markets • Global market pulp production of 9.9 MMt in 2Q10: -1.7% vs. 1Q10 and +5.4% vs. 2Q09 • Global pulp sales volume: (MMt) 2Q10 2Q10 x 1Q10 2T10 x 2T09 Pulp Market Pulp: 10.1 +0.2% -4.1% Eucalyptus: 3.4 -3.1% -6.4% • Global inventories at 25 days1 (Jun/10): below the historical average of 33 days • Price increases announced for April, May and June: U$ 920/ton (June, CIF Europe) • Lower pulp availability in 2Q10: Chile earthquake and delays in the startup of the Rizhao mill (China) • Domestic demand2: growth post-crisis recovery 2Q10 2Q10 x 1Q10 2Q10 x 2Q09 Printing & Writing 457.5 +6.9% +10.9% Paperboard 153.8 +3.7% +22.2% Paper • Decrease in P&W paper imports in the domestic market (23.4% vs. 24.5% in 1Q10) • Brazilian exports accounted for 40.0% of total sales compared to 40.9% in 1Q10 • Global P&W demand recovery in 1S10 vs.1S09: Latin America: +14.9% North America: +7.8% Asia: +18.1% W. Europe: +5.4%1PPPC 2Bracepla 02/09

Highlights 2Q10 - Suzano • Total market pulp and paper production of 705 thousand tons • Sales volume of 717 ktons: 420 ktons of pulp and 297 ktons of paper • Net revenue of R$1.2 billion • Pulp production cash cost of R$464/ton1 • EBITDA of R$ 413 million, with EBITDA margin of 34.7% • Successive pulp price increases and global inventories below historical levels • New increases in paper prices in both domestic and export markets • Net income of R$135 million • Net debt / EBITDA ratio of 2.7, cash and cash equivalents of R$ 2.5 billion on June 30th, 2010 and, gross debt reduction of R$ 202 million • Investments announced in biotechnology (Futuragene) and pellets for energy (Suzano Renewable Energy)1 Excluding maintenance downtime costs 03/09

Pulp Business Unit• Sales: 420 thousand tons in 2T10 9.1% higher than 1Q10 23.3% lower than 2Q09• Average net price in 2Q10 (domestic and exports) of US$ 741.5/ton, +15.0% vs.1Q10. In R$: 14.2% higher than 1Q10 60.3% higher than 2Q09• Net revenue of R$ 558.6 million. 24.6% higher than 1Q10 23.0% higher than 2Q09 Pulp Sales (ktons) Pulp Sales Destination 2Q10 1Q10 420 Ktons 385 Ktons 04/09

Paper Business Unit• Sales volume in 2Q10 higher than 1Q10: 2Q10 x 1Q10 2Q10 x 2Q09 Printing & Writing +17.8% -6.5% Paperboard +8.4% -1.1% Average price (domestic) +3.6% -2.6%• Domestic sales: 53.3% of total sales in 2Q10• Recovery of the exports average net price: 2Q10 x 1Q10 2Q10 x 2Q09 In US$ +7.0% +22.7% In R$ +6.3% +6.0% Paper Sales (ktons) Paper Sales Destination 2Q10 1Q10 297 Ktons 257 Ktons 05/09

Operational Performance EBITDA (R$ MM) / Margin (%) • Higher share of pulp in Suzano’s revenue: 47% in 2Q10 vs. 46% in 1Q10 • Pulp cash cost ¹ 9.2% higher than 1Q10: Higher costs related to wood from third parties Higher chemicals cost • EBITDA margin of 34.7%: Return to historical levels No non-recurring items in 2Q10 Pulp cash cost¹ (R$/ton) Net Revenue Breakdown1 Mucuri Unit 06/09

Debt and leverageDebt Breakdown - R$ Million jun/10 mar/10 jun/09Gross Debt 6,285 6,487 6,923 (-) Cash and Cash Equivalents -2,544 -2,399 -2,429Net Debt 3,741 4,088 4,495 Net Debt / EBITDA 2.7 3.4 3.5 07/09

Key Messages• Demand recovery in pulp and paper markets: Paper: higher demand of P&W paper and paperboard in the Brazilian and international markets Pulp: global inventories below the historical average and successive price increases• Operational margins recovery• Solid financial position Adequate debt profile and competitive debt cost Leverage reduction: from 3.4x in Mar/10 to 2.7x in Jun/10 Gross debt reduction of R$ 202 million in 2T10• Consistent growth strategy Evolution in Maranhão and Piauí projects: − Basic engineering to be concluded in 4Q10 Sale of non strategic forestry assets: − R$ 334 million (gross value) in cash in 2Q10 Acquisition of Futuragene in the UK concluded Investment announced in pellets production for energy : Suzano Renewable Energy 08/09

Investor Relationswww.suzano.com.br/ri+55 11 3503-9061ri@suzano.com.br 09/09

2 q10 earnings presentation

by Suzano Pulp and Paper on Apr 05, 2011

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2 q10 earnings presentation Presentation Transcript