Suzano is a Brazilian forestry company that produces pulp and paper. It has grown significantly in recent years through organic growth and acquisitions. Suzano aims to further increase its pulp production capacity to 6.2 million tons per year by 2016 through investments. The company leverages its strong forestry assets and technological capabilities to remain a low-cost producer of pulp and paper.
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
2. Disclaimer
Certain statements in this presentation may 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
3. Agenda
01 | Corporate Overview and Strategy
02 | Forestry
03 | Paper
04 | Pulp
05 | Maranhão Unit
06 | Biotechnology
07 | Suzano Renewable Energy
08 | Financial Results
3
4. Corporate Overview
Suzano is a forestry-based company, publicly traded, controlled by Suzano Holding. Suzano operates in the
pulp and paper businesses.
2nd largest eucalyptus pulp producer in the Itaqui Port Transnordestina
world “Carajás”
Railroad Pecém Port
8th largest market pulp producer in the world
Maranhão
Pulp production costs: one of the lowest in Piauí
“Norte e Sul”
the world Railroad
Leader in the regional paper market Forests Mucuri
Certified plantations and products Miils Limeira
Portocel
Ports
Organic Growth in pulp: +3 MM/ton/year Railroad Embu
Suzano Vitória
Rio Verde
Santos
New businesses: biotechnology and wood
pellets for energy
Market cap: R$3.4 billion on 9/30/11
Capital Structure (9/30/11)
Free Float
Controlling 43%
Group
54%
4
Treasury
3%
5. Organizational Structure
The Business Units model provides performance and return assessments in each business independently.
Management
Board of Directors (BD) Sustainability
9 members (4 independent) and Strategy
Audit
CEO and Strategy
BD Commitees
SP Operations Forestry BU Pulp BU Paper BU
SP Corporate Dev. BU: Business Units
SP Finance and IR
SP Human Resources
SP: Service Providers
5
6. Products and Diversified Markets
Suzano’s products portfolio is made of market pulp, paperboard, uncoated paper and coated paper.
Net Revenue
55% Exports / 45% Domestic Market
R$4.7 billion
Market Pulp Paper
2nd eucalyptus market pulp producer
43% 57%
Paperboard Printing and Writing
2nd in Brazil with 26% market
share
13% 42%
Uncoated Coated
2nd in Brazil with 30% market share 1st in Brazil with 19% market share
35% 7%
Note: Figures of last 12 months ending on 9/30/2011.
Other paper represented 2% of net revenue on the period.
6 The market share data includes paper imports.
7. Timeline
Suzano has over 80 years of operation.
1924 until 1940 1950 1960 until 1990 2000 2024
Beginning of First investment in Growth and diversification in the Consolidation as one of the Suzano 2024
operations in the the pulp sector pulp and paper businesses largest Brazilian Groups
paper industry 2008
Acquisition of Ripasa (50%)
2010
Start up of Bahia Sul 2007
New Growth Cycle
Acquisition of
Suzano mill Beginning of paper
Start up of the first exports to Europe
paper mill
2004
2005
1982
Pioneerism in
1992
Acquisition of
eucalyptus plantation
FuturaGene,
PLC.
1960
Leon Feffer starts 1975 Merger with
paper trading Bahia Sul
activities
1956
Start up of Line 2 Suzano Renewable
at Mucuri Energy
Launch of Report
1955 Acquisition of
Indústrias de Papel
Rio Verde’s control Adoption of Bovespa’s Level I
1939 corporate governance
Acquisition of 50%
standards and Professional
Management of Conpacel and
1924 KSR.
7
7
8. Strategy – Suzano 2024
Forestry competency consolidates the pulp business and enables new business opportunities
in Biotechnology and Renewable Energy.
Forestry
Competency
Operational Organic Wood pellets Biotechnology
excellence growth
in paper in pulp
8
9. Organic Growth in Pulp
Suzano’s production capacity has increased by 130% in the last 6 years. The Company is prepared for a
new growth cycle that will increase its capacity to 6.2 MM ton/year of pulp and paper by 2016.
Piauí
Unit
Maranhão
Unit 6,210
4,710 4,710 4,710
3,210 3,210 4,920
2,750 2,850 2,850
3,420 3,420 3,420
1,720 1,920 1,920 1,920
1,485 1,650 1,750 1,750
1,240 820
570 640
456
915 1,080 1,100 1,100 1,100 1,100 1,290 1,290 1,290 1,290 1,290 1,290
784
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e
Paper Pulp
9 Note: Investment decision on Piauí Project expected for 1H14.
11. Forestry Assets
Suzano’s forestry expertise, developed over years of consistent investments in R&D, allows
the Company to expand its forestry assets to a new frontier: the northeast region of Brazil.
2011
Total area (tsd ha) 1 800 MA, PI and TO
Total: 385 tsd ha
Total planted area (tsd ha) 2 446 Planted: 94 tsd ha
Own planted area (tsd ha) 1 343
Forest Partnership Program (tsd ha) MA
103
Own Preserved Area (tsd ha) 1 299 PI
Average Distance in Bahia (km) TO
75
BA
Average Distance in São Paulo (km) 246
BA, ES and MG
Base 9/30/2011 MG Total: 226 tsd ha
1 Own and leased areas ES Planted:
2 Figures consider own, leased and third-parties areas
SP 131 tsd ha
2011
Annual planting (tsd ha) 90 SP
Total: 188 tsd ha
Planted seedlings / day (tsd) 368 Planted: 118 tsd ha
Note: Both own and leased land can suffer variation up to 5% quarter over quarter.
11 The total amount can differ due to rounding.
12. Forestry Competitiveness
Suzano’s innovation present in its DNA, responsible forest management and operational
excellence enabled the leverage of competitiveness.
Evolution of Maranhão Forests
80’s 90’s 00’s 10’s
Investments in technology guarantee a highly
diversified genetic portfolio, which is suitable for
different regions
+ 14 mil thousand clones developed | 800 field trials | 4 thousand hectares
Biotechnology
Genetic
enhancement
+ Sustainability
Forestry
management
+ Productivity
Operational
excellence
12
13. Forestry Technology
Nurseries with high technology standards guarantees production efficiency.
Nurseries (85mm total seedling capacity)
Suzano’a pioneering and innovation
enable the development of extensive
genetic base and improvement of Suzano Limeira
stewardship techniques Seedling Seedling
capacity of capacity of
Highly qualified forestry technology 12mm 8mm
team(42 researchers: 2 PhDs and 8
Masters Degrees)
Mucuri Maranhão
Technology Center Seedling Seedling
capacity of capacity of
20mm 15mm
Piauí
Seedling
capacity of
30mm
Brazil’s
most
modern
nursery
Suzano/Futuragene technology center
13
14. Forestry Competitiveness in Brazil
Brazil presents competitive advantages to support continuous increase of its global forestry standing.
Competitive Advantages
Hardwood Productivity (m³/ha/year)
44
41 Availability of productive land
Excellent soil and climate conditions
25 25
20 Short harvesting cycle for planted forests
13 Opportunity to recovery degraded areas
6 4 Low establishments and maintenance costs
Suzano’s Brazil Chile Australia South Portugal USA Finland
Eucalyptus Africa
Source: ABRAF, BRACELPA, Poyry, Adapted by STCP Consulting
Pulp Productivity
Biotechnology More wood / hectare
11 admt1/ha/year More pulp / m³
5.5 admt1/ha/year
Superior quality
+100%
Smaller area
1980 2011 Decreasing costs / m³
Source: Suzano
1Admt: air dried metric ton
14
16. Paper Assets
Operational excellence in paper: revenue and products portfolio management, asset
optimization, and strengthening of distribution channels.
Sales Volume (tsd ton) Sales Destination – LTM1
12% North Am.
1,251 Europe 9%
1,162 1,115 1,156
518 Others 3%
504 524 513
658 643 733 South/Central Am. 17% 59% Brazil
591
2008 2009 2010 UDM
Domestic Market Exports
Suzano Market Share in the Domestic Market – LTM1
Leadership in printing & writing and white paperboard in South
America Paper
More than 90% integrated production (pulp + paper)
Fx hedge: approximately 65% of paper revenue in local currency Paperboard
Printing & Writing
2nd in Brazil
26%
Lower price volatility in the domestic market
Paper merchants: Uncoated Coated
KSR e SPP NEMO: largest in Latin America 2nd in Brazil
30%
1st in Brazil
19%
Stenfar: top 5 in Argentina
16 1 LTM - last 12 months ending on 9/30/2011
17. Focus in the Domestic Market
Lower price volatility, better margins and important cash flow generator.
Average Net Price Paperboard
(base 100 in Oct/2008)
140 Domestic Market
Exports Market dominance in high value added segments
120
115
Paperboard
Low level presence of imports
100 Domestic
Growth of the consumer industry
Market
80 103
60
Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11
Average Net Price Printing & Writing
(base 100 in Oct/2008)
140 Domestic Market
Imports: high concentration of coated
Printing & Writing
120
Exports Exchange rate’s effects
100 106
Domestic
Fiscal control of Immune paper operations
80 Market
92
60
Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11
17 Note: Prices of domestic market in R$; prices of exports in US$
18. Paper Market Growth
Economic growth in emerging markets favors paper consumption.
2011e Paper Demand (tsd ton)
2,989 4,994 128,601
972 1,816 1.837 46,948 Paperboard3
Coated
Uncoated
652
{ { {
812 27,473
Printing & 2,017 3,178 81,653
Writing1
1,365 2,366 2.366 54,180 2.366
54.180
Brazil Latin America2 Global
CAGR 2011e – 2016e Brazil Latin America2 Global
Paperboard3 +3.3% +3.8% +3.0%
Printing & Writing1 +3.4% +3.2% +1.0%
Coated +3.2% +3.3% +1.0%
Uncoated +3.5% +3.2% +1.1%
1
Woodfree Printing & Writing paper I 2 Latin America excluding Brazil I 3 Paperboard + liquid packaging board
18 Source: RISI and Poyry (nov/2011)
19. Paper Demand Growth Drivers
Historically there is a high correlation between GDP and paper consumption.
Europe
North America Western: 185 kg/ha/year
226 kg/ha/year Eastern: 47 kg/ha/year Asia1
19 kg/ha/year
EUA
233 kg/ha/year China
GDP per capita: US$47 tsd 68 kg/ha/year
GDP per capita:
US$4 tsd
India
9 kg/ha/year
GDP per capita: US$1 tsd
Latin America
44 kg/ha/year
Brazil
47 kg/ha/year
GDP per capita: US$11 tsd
1Excluding China and Japan
19 Source: 2010 paper consumption data from Poyry (nov/2011) and 2010 GDP per capita information from World Bank (sep/2011)
20. Coated Paper
The share of coated paper imports is high as Brazilian production does not completely meet demand.
Coated Paper Production and Demand (tsd ton)
632
Measures adopted by the
525
486
Brazilian authorities to reduce
450 432
deviation use for tax exempt
317 304 294
285
182
paper and BRL depreciation
helped decreasing imports
market share
2007 2008 2009 2010 9M11
Production Demand
Imports share in the Brazilian Market (%)
Licenses Fees
RECOPI1 72%
70% 69% 66%
57% 60%
56% 55% 56% 53%
44% 47%
40%
2007 2008 2009 2010 jan-11 fev-11 mar-11 abr-11 mai-11 jun-11 jul-11 ago-11 set-11
Average
1.95 1.84 2.00 1.76 1.68 1.69 1.66 1.59 1.61 1.59 1.56 1.60 1.74
R$/US$
1Brazilian Government Program to control tax exempt paper imports
20 Source: Bracelpa
22. Pulp Assets
Sustainable and organic growth: presence in main international markets and strategic
relationship with clients.
Sales Volume (tsd ton) Pulp Sales Destinations – LTM1
1,780 1,712
1,607 Brazil 20%
1,321
1,519 1,310 1,366 North Am. 11%
1,089
34% Europe
South/Central Am. 1%
232 261 297 346
2008 2009 2010 LTM Asia 34%
Domestic Market Exports
Sales per Segment – LTM1
Technical support in each international office:
China, Switzerland and USA
Others 8%
80% of total sales with long term contracts
More than 150 active clients Special 23%
Strategic long-term partnerships with clients: 32% Printing &
Writing
Logistics
Technology Tissue 37%
Pre and post sale technical assistance
Strategic focus on high value added segments
22 1 Note: LTM - last 12 months ending on 9/30/2011
23. Pulp Organic Growth Fundamentals
Market pulp accounts for 13% of total fibers for paper production.
Pulp and Paper Production Chain – 2011e
Production (MM ton)
51% 185
72% 128
363 Recycled
Market Pulp Demand opportunities:
8%
Integrated
Total fiber pulp 1% reduction in recycled paper =
consumption
49% 178 +1.9 MM ton/year of market pulp
Minerals
8%
Virgin fiber
28% 1% reduction in integrated capacity =
395 50
Global +1.3 MM ton/year of market pulp
production of Market pulp
paper 2% growth in paper consumption =
+1.0 MM ton/year of market pulp
395 50
Printing &
114 Writing 16 BEKP1
Million ton
45 Paperboard
29 Tissue 9 BHKP2
3 Others
Corrugated
207 Newsprint 22 BSKP3
Others
2011e 2011e
1Bleached Eucalyptus Kraft Pulp | 2 Bleached Hardwood Kraft Pulp | 3 Bleached Softwood Kraft Pulp
23 Source: Poyry (nov/2011) and Suzano
24. Pulp Organic Growth Fundamentals
Demand for paper and paperboard is forecasted to grow 42 million tonnes (2010-2015e).
Paper and paperboard demand forecast until 2015e
CAGR: 2.2% p.a. CAGR: 2.1% p.a.
Emerging economies: +5.7% p.a. Emerging economies: +4.3% p.a.
450
Others1
400
Latin America1
350 Others Asia1
300
Million ton
250 China1
200
Japan
Eastern Europe1
150
Western Europe
100
50
North America
0
1995 2000 2005 2010 2015e
1 Emerging economies includes Latin America, Asia (except for Japan), Middle East, Oceania, Africa and Eastern Europe
24 Source: Poyry (nov/2011)
25. Pulp Organic Growth Fundamentals
Paper demand forecast is growing for grades that are Eucalyptus fiber users over the next
years.
Paper demand forecast: CAGR (2011e – 2016e) 2.0% p.a.
Main BEKP end-users
4.5
Carton Container board Tissue
3.0 board
CAGR 2011e – 2016e
Coated Sack
1.5 woodfree
(% p.a.)
Uncoated
Other
woodfree
Grades1
0.0
News- 20% 40% 60% 80% 100%
print Coated
mechanical
-1.5
Uncoated
mechanical
-3.0
1 Other grades includes special paper segment
25 Source: Poyry (nov/2011)
26. Pulp Organic Growth Fundamentals
Eucalyptus pulp has replaced other short fibers and the actual price spread between
hardwood and softwood should continue to favor this replacement.
Market Pulp Demand Projections (2011e – 2015e)
CAGR CAGR
BEKP: +9.7%a.a | Other BHKP: -3.8%a.a. BEKP: +5.5% a.a. | Other BHKP: -1.1%a.a.
.
30 60
25 50
24 24 24 24
24
Total Market Volume
Volume by fiber type
22 22 23 23
22 22
(million tonnes)
(million tonnes)
20 21 40
21
20
19
18
15 17 30
16 16
12 11 14
13
10 20
11 11
10 10
9 9 9 10 9 9 9 9
5 10
43 44 45 47 47 47 48 50 51 52 53 54
0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market BEKP1 Other BHKP 2 BSKP 3
1Bleached Eucalyptus Kraft Pulp | 2 Bleached Hardwood Kraft Pulp | 3 Bleached Softwood Kraft Pulp
26 Source: Suzano and data from Poyry (nov/2011) and PPPC (sep/2011)
27. Brazilian Competitiviness
Suzano is in the lowest cash cost region.
Cash Cost CIF / Europe (US$/tonne)
700
678
581 646
508 527
484
567 592 601 619 625
577
519 533
417 443 444
368 379
330
Brazil Chile Indonesia Iberia USA France China Russia Chile USA Finland Sweden France Eastern BC BC Japan
Finland Sweden Canada Japan Canada Coast
Hardwood Softwood
15,8 million tonnes 8,5 million tonnes 2,9 MM ton 15,4 million tonnes
Low Cost High Cost Low Cost High Cost
27 Source: Hawkins Wright (Oct/ 2011)
29. Maranhão Unit
State of the art facility technology and top tier suppliers contracted.
9
3
5 10
2 6
4
7
8 1
Conceptual engineering 1. Wood yard 7. Turbo generators
Basic engineering 2. Cooking and Fiber lines 8. Energy distribution and substation
Detailed engineering:
BOP1 and infrastructure 3. Dryer
9. Water treatment
Management of BOP1 4. Evaporation
implementation and 5. Boiler 10. Effluent treatment
infrastructure 6. Lime kiln
1 Balance of Plant
29 Fonte: Poyry and Suzano
30. Maranhão Unit Schedule
Track record of successfully executing projects on schedule, implementing business plans
and meeting budgets.
Phase I Phase II Phase III
BEGINNING PLANNING EXECUTION
Concluded Ongoing Ongoing Phase IV
Forestry
Market study
Purchase of land, licenses, permissions and
Preliminary feasibility Purchases Start up
plantations
study Construction and 4Q13
Conceptual engineering Industrial, port, railway assembly
General planning Environmental licenses Commissioning
Conceptual and basic engineering
2011 2012 2013
Infrastructure Mar-12
Civil work Mar-13
Erection Aug-13
Commissioning Sep - 13
Start up 4Q13
30
31. Maranhão Project Construction Status
70% of suppliers already contracted.
Earth moving complete
Infrastructure work has started
Stacking in evaporation area (100% complete)
Stacking in boiler area (95% complete)
Construction of Water Treatment Facility and provisional Sewage Treatment
Facility (90% complete)
Construction of temporary sites (40% complete)
Approximately 1,800 people working on the construction of the Maranhão unit
Approximately 1,400 people working on the forestry base formation
The Secretary of the Environment of Maranhão State has issued:
Pre-Operational License
Planting License, which was renewed in October 2011
Forest formation
154,000 ha
(planted area)
Industrial Suppliers contracted
0% 20% 40% 60% 80% 100%
Completed Pending
31
32. Logistic Solution
Railway transportation from the plant to the port and strategic located to export to the main
pulp markets.
Capacity: 10 production
days
100 Km through The train will go through the
Norte-Sul railway warehouse, allowing for
500 Km through loading from both sides
Carajás railway
Warehouse
Maranhão Unit Model
Transit time: around 4 days shorter
to main destinations compared to Port in the São Luís1 region
ports in the South East of Brazil
1 Drawing
32
33. Capex
Long term financing, grace period and competitive cost.
Maranhão Unit Maranhão Unit
Estimated Forest Capex US$ 575 million 2011 2012 2013
Estimated Industrial
Estimated Industrial Capex1 US$ 2,3 billion 20% 60% 20%
Capex
1 Considers exchange rate of R$ 1,80/US$
Funding:
BNDES: R$2.7 billion, 12 years to pay and 3-year grace period
Mandatory convertible debentures: R$1.2 billion
Funding for the imported equipment supported by foreign credit agencies (ECA’s among others)
Cash flow generation
Capex (R$ million) 2009 2010 9M11 2011e
Forest 193 159 148 249
Industrial 0 4 547 905
33
35. FuturaGene
Biotechnology is on the right side of Sustainability.
Base Case: Suzano Pulp and Paper
Less land utilization
907
Lower forest formation
tsd ha cost
2015e Planted Area
Produtividade
Innovation Necessidade de terras (ha)
Yield Increase
Less land utilization
utilization
Less water consumption 1% 5% 10% 15% 20% 30% 50%
Land
Less chemical expenditure
-9 tsd ha -45 tsd ha -90 tsd ha -136 tsd ha -181 tsd ha -272 tsd ha -454 tsd ha
Higher carbon sequestration
35
36. FuturaGene
Biotechnology is on the right side of Sustainability.
Upside: new business
Global Eucalyptus Forest Map
China
2.6 MM ha
Tailand
0.5 MM ha
India
3.9 MM ha
Brazil
3.7 MM ha South Africa
0.6 MM ha
FuturaGene is present in 60% of the eucalyptus market
Well positioned to be world leader in forest biotechnology
36 Source: GIT Forestry Consulting, http://git-forestry-blog.blogspot.com
38. Suzano Renewable Energy
Forestry competency enables new business opportunities.
Wood pellets for energy, produced from renewable energy-oriented forests
Project update
Protocol signed with Maranhão government
3 units: 1 MM ton/year each
Ongoing activities:
Estimated start-up: 2014 Forest: Specific clones selected, dedicated plantation
Funding: definition of the capital structure (Energy Forests)
World leader Engineering with Promon and Stolberg (Canadian)
Initial focus on the European market Commercial: Advanced negotiation of final contracts with
clients
Dedicated team
38
40. Results
Net Revenue and EBITDA
Net Revenue (R$ million) and Volume (tsd tonnes) EBITDA (R$ million) and EBITDA Margin (%)
2,896 2,963 36.2% 37.7%
2,763
2,482
30.3% 29.4%
1,924 26.9%
4,514 4,707
4,064 3,952 1,703
3,410 1,469 1,265
2,599 2,569 1,161
2,214 2,295 1,034
1,596
1,814 1,850 1,657 1,915 2,138
2007 2008 2009 2010 LTM 2007 2008 2009 2010 LTM
Average Average
1.95 1.84 2.00 1.76 1.65 1.95 1.84 2.00 1.76 1.65
R$/US$ R$/US$
Domestic Market Exports Volume
Paper: Revenue (R$ million) and Volume (tsd tonnes) Pulp: Revenue (R$ million) and Volume (tsd tonnes)
1,251
1,162 1,156 1,780 1,712
1,125 1,116 1,607
1,320
2,701 799
2,458 2,524 2,344 2,496
2,018 2,006
837 937 950 1,609
918 936 1,539
933 1,663 1,619
1,621 1,587 1,560 1,751 1,277 1,377
1,426 757
2007 2008 2009 2010 LTM 2007 2008 2009 2010 LTM
Domestic Market Exports Volume Domestic Market Exports Volume
Note: The amounts of 2009, 2010 and LTM include the adjustments introduced by the IFRS standards
40 LTM - last 12 months ending on 9/30/2011
41. Debt
Conservative financial policy.
Gross Debt (R$ million)
699 8
8,250
310 34 Debt increased, primarily due to the impact of the
7,199
exchange rate variation, with NO cash effect
Robust cash position: R$3.0 billion (Sep./11)
6,386
5,707
No short-term leverage difficulties: liquidity horizon
of approximately 28 months
1,492 1,864 The Company has been working on initiatives to
reduce leverage
Gross Debt Funding / Interest Foreign Others Gross Debt
(Jun/11) Amortizations Exchange (Sep/11)
Variation
Short Term Long Term
Amortization Schedule (R$ million)
3,610 Long-term debt profile
Funding: grace period and lengthier amortization, in
2,616
line with cash flow from the projects
Hedge for cash flow, but not for debt
1,113
No use of complex or exotic derivatives
455 456
2011- 2013 2014 2015 2016 2017 onwards
41
42. Debt
Leverage can increase temporally due to the growth projects capex, but amortizations are in
line with cash flows from these projects.
Implementation Start up of World Conpacel
Primary Bahia Sul Ripasa
of line 2 at economic Acquisition
Offer Incorporation Acquisition
Mucuri Project Mucuri crisis
4.2x
3.8x 3.7x 3.7x 3.5x
2.7x
1.6x 2.0x
1.6x
5,459 5,291
4,285 4,111
3,919
3,421
2,475
1,647 1,616 1,469 1,703
1,039 1,040 1,146 1,161 1,265*
1,000 913
2003 2004 2005 2006 2007 2008 2009 2010 sep/11
Net Debt (R$ million) EBITDA (R$ million) Net Debt/EBITDA (x)
Note: The amounts of 2009, 2010 and LTM include the adjustments introduced by the IFRS standards
42 * EBITDA of the last 12 months ending on 9/30/2011
43. Investment Plan
Growth projects will be developed with discipline, respecting Company’s financial solidity.
Estimated Capex (R$ billion)
4.0
3.5
2.2
3.5
3.0
1.7
0.5 0.5 0.5
2011e 2012e 2013e
Sustain Growth
Note: figures do not include investments that may be outsourced
Actions to reduce leverage
Divestment of Capim Branco (81 MW of installed capacity and 51 MW of assured energy)
Ongoing
Divestment of non-strategic lands
Strategic partnership for Suzano Renewable Energy
Under Study
Energy pre-sale
Em Estudo
Possibility of outsourcing activities
Sale of certain assets in the paper segment
Sale of interest in new projects in the pulp segment
Equity
43
44. Why to invest in Suzano?
Low production High Level of Own
costs Energy Production
Extensive
know-how and
Balanced mix
high planted
of products
forest
productivity
Strong Experienced
operating Management
cash flow Team
44
46. Board of Directors
Experienced and active
DAVID FEFFER Experience of 36 years in the pulp and paper industry. CEO of Suzano Holding S/A, Chairman of the Board of Directors of Suzano
Presidente Pulp and Paper S/A and Coordinator of the Management Committee. CEO of IPLF Holding and Nemopar Investimentos Ltda. CEO
and Vice President of the Board of Directors of Polpar S/A. Vice President of Premesa S/A and Vocal.
DANIEL FEFFER Experience of 32 years in the pulp and paper industry. Member of Sustainability and Strategy Committee, Chairman of Polpar’s
Board of Directors, President of Premesa, Corporate VP of Suzano Holding, IPLF Holding and Nemopar, President of Vocal and
V. Presidente Nemonorte, Chairman of Ecofuturo Institute’s Board of Directors.
BORIS TABACOF Experience of 35 years in the pulp and paper industry. Vice President of FIESP. Member of BRACELPA’s and IBEF’s Advisory
V. Presidente Board. Chairman of the Board of Directors for the Brazilian Committee of Britain Brazil Business Forum.
Experience of 31 years in the pulp and paper industry. Member of the Board and the Committee of Sustainability and Strategy;
JORGE FEFFER Director of Premesa, Corporate VP of Suzano Holding and IPLF Holding, Executive Officer of Nemonorte and Vocal.
Executive Vice President of Suzano Holding S/A. Coordinator of Sustainability and Strategy Committee and member of Audit
Committee and member of the Compensation Commission of the Board of Directors; Former president of the board and CEO of
CLÁUDIO SONDER Hoechst of Brazil. Board of Directors member of Lojas Renner S/A, RBS Group, Cyrela Brazil Realty, OGX and Chemical Group
DSM/Holanda.
Senior partner of Machado, Meyer, and Sendacz Opice Lawyers and former member of the Board of Directors of OAB Brazil.
ANTONIO MEYER President of CESA. Former Legal Adviser and Chairman of the Legislative Committee of the American Chamber of Commerce and
Director of ABRASCA’s Legislative Committee. (Independent)
Member of Audit Committee. Senior partner of Integra Associates. Member of Gerdau S/A’s Board of Directors, Metalúrgica Gerdau,
OSCAR BERNARDES Sao Paulo Alpargatas, Localiza, and Johnson Electric (Hong Kong); Board Member of Bunge Brazil and Alcoa Brazil. Oscar was
President of Bunge International and Managing Partner in Booz-Allen & Hamilton. (Independent)
MARCO BOLOGNA Coordinator of Suzano Pulp and Paper’s Audit Committee. Member of the Board of Directors of TAM Airlines and TAM Aviação
Executiva. Former CEO of TAM Airlines and WTorre. (Independent)
Co-Chairman of the Board of Directors of BRF-Brasil Foods. Board member of WEG S/A, Ultrapar Participações S/A and Iochpe-
NILDEMAR SECCHES Maxion S/A. Former CEO of Perdigão Group. Former Director of the National Bank for Economic and Social Development - BNDES,
and General Director of Corporate Group Iochpe-Maxion Industrial Holding. (Independent)
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47. Executive Officers
Distinguished management team
Chief Executive Officer, also responsible for Strategy Department, 4 years at Suzano. Member of the Board of Director Member
of Marfrig Frigoríficos. Vice President of BRACELPA. Former member of the Board of Director of SEBRAE, Gradiente, Cecrisa and
ANTONIO MACIEL NETO Amcham. Former Chaiman of Ford Brasil and Ford Latin America, Itamarati Group, Ferronorte and Cecrisa and former Executive of
Petrobras and the Federal Government. Mechanical Engineer graduated at UFRJ.
Chief Financial Officer, also responsible for Investor Relations Department. Has worked as Chief Financial Officer at CSN and
as member of the Board of Director of Congonhas Minérios, NAMISA, Transnordestina S.A., among others. At Banco do Brasil, has
ALBERTO MONTEIRO worked as Chief Financial Officer of Conglomerado BB S.A., CEO of BB DTVM and President of BESC DTVM. Graduated in
Business Administration from FCPE/RJ, MBA degree in Corporate Finance from FGV na Post graduated in Banking from FEA/USP.
Pulp Business Unit Executive Officer, joined Suzano in 2009. Former CEO of European operations of RGM Group and
BERNARDO
ALEXANDRE YAMBANIS Commercial Director of Aracruz. Graduated in Business Administration at Fundação Getulio Vargas (FGV).
SZPIGEL, 65
Chief Executive Officer of Suzano Renewable Energy and Suzano Pulp and Paper Executive Officer, responsible for
ANDRÉ DORF Corporate Development Department, 7 years at Suzano. Former Paper Business Unit Executive Officer (2005-2008). Former
Executive of JPMorgan in Brazil and NY (Investment Banking Global and Latin America), Chase Manhattan and Banco
Patrimônio/Salomon Brothers. Graduated in Business Administration at Fundação Getulio Vargas (FGV).
ERNESTO POUSADA Chief Operation Officer, 5 years at Suzano. Has worked as Expansion Project Director of Mucuri Unit. Former executive of Dow
Chemical Company, in Brazil, USA and Europe. Post-Graduated in Business Administration at FIA/USP.
Paper Business Unit Executive Officer, 6 years at Suzano. Former Executive Manager of Suzano’s Pulp Business Unit and Sales
CARLOS ANIBAL General Manager for Latin America at General Electric in the Industrial Systems Division. MBA degree from Ibmec-SP. Electrical
Engineer from UFMG.
Forest Business Unit Executive Officer, 3 years at Suzano. Former executive of Champion Pulp and Paper and International Paper
JOÃO COMÉRIO as Global Forestry Strategy Officer in the USA. Post graduated in Forest Science and Wood Technology at USP – Piracicaba.
Human Resources Executive Officer, 2 years at Suzano. Former Human Resources Manager for Aviation Operations in General
Electric in Brazil and abroad, Global HR Director for Information Technology in the United States and HR Director for Mexico and
CARLOS GRINER Latin America. Former Executive of Carioca Engenharia, CR Almeida, Comlurb and Bureau Veritas. Post Graduated in Business
Administration at COPPEAD-UFRJ.
47