2. 4Q10 Highlights – Pulp and Paper Markets
• Global market pulp production of 10.8 MMt in 4Q10: -1.1% vs. 3Q10 and +3.8% vs. 4Q09
• Global pulp sales volume (million ton):
4Q10 4Q10 x 3Q10 4Q10 x 4Q09
Market Pulp: 10.8 +6.3% +4.2%
Pulp
Eucalyptus: 3.6 +6.3% -0.4%
• Global inventories at 30 days1 (Dec/10): below the historical average of 33 days
• Price decrease in 4Q10: US$ 849/ton (FOEX, December, CIF Europe)
• Market pulp shipments to China in December/10:
Market pulp: 984 thousand tons (+40.8% vs. Nov/10 and +59.0% vs. Oct/10)
Eucalyptus: 311 thousand tons (+38.8% vs. Nov/10 and +148.8% vs. Oct/10)
Domestic demand2(kton): 4Q10 4Q10 x 3Q10 4Q10 x 4Q09
Printing & Writing 547.3 +2.2% +7.0%
Paperboard 150.0 -8.4% -1.8%
• Brazilian exports accounted for 36.9% of total sales in 4Q10 compared to 34.2% in 3Q10
Paper
• Increase of P&W paper imports (25.6% vs. 25.4% in 3Q10)
• Demand at the main P&W markets in 4Q101:
Western Europe: +0.4% vs. 3Q10 and -0.8% vs. 4Q09
North America: -4.3% vs. 3Q10 and -2.5% vs. 4Q09
Latin America: +0.8% vs. 3Q10 and +11.0% vs. 4Q09
1PPPC 2Bracepla 02/10
3. Pulp Business Unit
• Sales: 411.7 thousand tons in 4Q10:
5.7% higher than 3Q10
0.2% lower than 4Q09
• Average net price in 4Q10 (domestic and exports) of US$717.8/ton, -4.1% vs. 3Q10. In R$:
6.9% lower than 3Q10
22.4% higher than 4Q09
• Net revenue of R$501.6 million:
1.6% lower than 3Q10
22.1% higher than 4Q09
Pulp Sales (ktons) Pulp Sales Destination
4Q10 3Q10
411.7 thousand tons 389.5 thousand tons
03/10
4. Paper Business Unit
• Sales volume of 317.0 thousand tons in 4Q10:
4Q10 x 3Q10 4Q10 x 4Q09
Printing & Writing +15.1% +6.5%
Paperboard -3.2% -8.4%
Average paper price (domestic) +0.1% +8.6%
• Domestic sales: 53.9% of total sales in 4Q10
• Exports average net price:
4Q10 x 3Q10 4Q10 x 4Q09
In US$ -2.0% +17.3%
In R$ -4.9% +14.5%
Paper Sales (ktons) Paper Sales Destination
4Q10 3Q10
317.0 thousand tons 285.4 thousand tons
04/10
5. Operational Performance
Highlights Net revenue breakdown
Pulp cash cost¹ (R$/ton)
• EBITDA margin of 31.7%:
3.5 p.p. lower than 3Q10
Non-recurring items of R$ 14.8 million
• Net income of R$251 million
• Pulp cash cost ¹ 5.9% lower than 3Q10:
Lower wood costs
Higher chemicals’ cost
Lower fixed cost
1 Mucuri Unit 05/10
6. Debt and leverage
1
Debt Breakdown - R$ Million December-10 September-10 December-09
Gross Debt 7,156 7,476 6,644
(-) Cash and Cash Equivalents -3,735 -3,625 -2,533
Net Debt 3,421 3,850 4,111
Net Debt / EBITDA 2.0x 2.2x 3.5x
Amortization (R$ million) Net debt vs. Net debt/ EBITDA
1All amounts in the table above include the adjustments introduced by the IFRS standards. 06/10
7. 2010 Highlights – Pulp and Paper Markets
• Global market pulp production of 41.7 MMt1 in 2010 (+6.4% vs. 2009)
• Global pulp sales volume (MMt):
2010 2010 x 2009
Market Pulp: 41.0 +4.8%
Pulp
Eucalyptus: 13.8 -2.5%
• Global inventories at 30 days1 (Dec/10) vs. 27 days1 (Dec/09)
• BHKP list price1: US$847/ton in 2010 vs. US$565/ton in 2009 (+49.9%)
• Market pulp shipments to China in 2010:
Market pulp: 7.1 MM tons (-17.9% vs. 2009)
Eucalyptus: 2.3 MM tons (-36.6% vs. 2009)
Domestic demand2(kton): 2010 2010 x 2009
Printing & Writing 1,978.9 +10.2%
Paperboard 609.7 +13.4%
• Brazilian exports accounted for 48.9% of total sales in 2010 compared to 52.1% in 2009 (P&W
Paper
+ Paperboard)
• Increase of P&W paper imports in 2010 (24.5% vs. 18.8% in 2009)
• Demand at the main P&W markets in 20101:
Western Europe: +3.5% vs. 2009
North America: +3.6% vs. 2009
Latin America: +12.4 vs. 2009
1PPPC 2Bracepla 3FOEX, CIF Europe
07/10
8. 2010 Highlights
• Demand recovery in pulp and paper markets
Pulp: prices 57.8% higher in 2010
Paper: average price increased by 2.7% compared to 2009 – highlight for paperboard (+8.1%) and
higher domestic market participation (+2.6%) in the sales mix
• Net revenues record of R$ 4.5 billion (+14.2%)
• Operational margins recovery:
EBITDA of R$ 1.7 billion, 46.7% higher than 2009
Net income of R$ 769 million vs. R$ 947 million in 2009 (exchange rate variation and IFRS)
• Solid financial position
Adequate debt profile and competitive debt cost: duration of 43 months
Leverage reduction: from 3.5x in Dec/09 to 2.0x in Dec/10
US$ 650 million in Senior Notes rated Baa3 (Investment Grade, Moody’s) and BB+ (Standard &
Poor’s)
• Consistent growth strategy
Suzano 2024
− FuturaGene and Suzano Renewable Energy
− MA and PI projects’ update
− Conpacel and KSR acquisitions
Sale of non strategic forestry assets
08/10
9. 2010 Highlights
R$ million, exc ept w here otherw ise indic ated 2010 2009 2010 x 2009
Net Revenue 4,514 3,953 14.2%
Exports 2,599 2,295 13.2%
Domestic Market 1,915 1,657 15.5%
EBI TDA 1,703 1,161 46.7%
EBITDA Margin (%) 37.7% 29.4% 8.4 p.p.
Net Financial Earnings (loss) (252) 696 -136.2%
Net I ncome (loss) 769 947 -18.8%
Earnings (loss) per Share (R$) 2.07 2.86 -55.0%
Net Debt 3,421 4,111 -16.8%
Net Debt / EBITDA 2.0 3.5 -1.5 p.p.
End of Period Exchange Rate (R$/US$) 1.67 1.74 -4.3%
Average Exchange Rate (R$/US$) 1.76 2.00 -11.9%
Operational Data (tsd tons)
Pulp Sales 1,607 1,780 -9.7%
Paper Sales 1,156 1,116 3.6%
Mkt. Pulp Production 1,617 1,590 1.7%
Paper Production 1,128 1,088 3.6%
09/10
10. Update: Suzano 2024
Operational Excellence in Paper Pulp Organic Growth: MA
BNDES financing: R$ 2.7 billion
Payment of Conpacel on 01/31/2011
Mandatory convertible Debentures: R$ 1.2
Synergies net present value: R$ 300 million
billion
Suzano’s 2010 EBITDA from Conpacel: ~R$
Board of Directors’ approval for:
250 million
Conclusion of Limeira Unit’s - MA unit’s construction
integration (previous - Agreements with Metso
and Siemens
Conpacel)
Conclusion of KSR’s Start-up anticipation: 04/30/13
acquisition 41 thousand hectares planted
Suzano Renewable Energy FuturaGene
Progress in the setup of a reasearch
Definitive contracts: negotiation at final stage
center (China), which will be dedicated to
Land acquisition for the 1st mill: major part
the development of eucalyptus, poplar
already completed
and other species’ GMOs
Basic engineer in progress Foundation of FuturaGene
Capital structure being Brazil, that will concentrate all
defined of the group’s biotechnologies
activities in Brazil
10/10
