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Conference call
July 30th 2010
Suzano Renewable Energy




Suzano’s strategy

Energy from biomass

Suzano’s competitive edge

Suzano Renewable Energy




                                     1
Suzano is a solid company with more than 80 years in the P & P sector…

Ownership and Management


                                          • Second largest eucalyptus pulp producer
Defined controlling group
• Reputation                                in the world and one of the top 10 market
• Long term vision                          pulp producers. Certified plantations and

                                            products.

                                          • New growth cycle: from 2.8 to 7.2 million
Capital markets                             tons per year of paper and pulp.
• Management performance
  assessment                              • Pulp production costs: one of the lowest in
• Transparency                              the world.
• Funding for growth
                                          • Global company, approximately 60% of
                                            total sales from exports.

                                          • Capital markets presence: free float of 46%.
Professional
management                                • Strong cash generator: US$ 2 billion dollars
• Capital discipline
                                            of revenue in 2009 with 30% EBITDA Margin.
• Rapid decision-making
  process




                                                                                           2
…and had its production capacity has increased by 130% in the last
 five years. A new growth cycle is already taking place.


                                                                                             7,150


                                                                                                     New unit
                                                                                                     and Mucuri expansion


                                                                                                     Piauí Unit



                                                                             2,750   2,850           Maranhão Unit

                                                                     1,920
                                      1,485           1,720
       1,200           1,240




Note: The effective capacities will depend on the learning curves.
                                                                                                                            3
Suzano’s decision to invest in biomass for energy was part of the
Company’s strategic review process.

 2008
    Experiment with “Energy Oriented
    Forest”

    - Analysis of the portfolio of clones
                                             2010
    - Clone selection
                                              Investment decision on biomass
    - Experimental high density plantation    for energy:
     in Maranhão
                                              -Business plan development
 2009
                                              -Launch of Suzano Renewable
   Strategic Review:                          Energy
   - Growth on wood pulp

   - Focus on forestry competences

   - Identification of new adjacent
     businesses Ex:
         -Biotech
         -Energy


                                                                            |
                                                                                4
In the Biomass for Energy business, Suzano has a strong value
proposition to utilities, especially in the EU.

               Biomass for Energy – Suzano’s Value Proposition
                 Reliability:
                 – Large European utilities are very focused in renewable targets.

                 – Biomass will play an important role in the transition to a “greener”
                    energy mix.

                 – Utilities will need solid suppliers. Having its own forests and being a
                    strong cash flow generator, Suzano is able to provide large scale, long
                    term contracts to utilities.

                 Energy Mindset:
                 – Since Suzano’s plan is to have forests dedicated to energy, it becomes
                   a real player in the international energy market.


                 Applied technology:
                 – Through forestry technology Suzano will be able to keep improving its
                   genetic material towards more energy-dense biomass.



                                                                                             |
                                                                                                 5
Suzano Renewable Energy




Suzano’s strategy

Energy from biomass

Suzano’s competitive edge

Suzano Renewable Energy




                               |
                                     6
Renewable energy’s share is growing worldwide due to solid drivers…


    Historical and Projected Global Energy Consumption                                                4 main primary drivers are sustaining this growth


                                                                                                       Climate concerns, i.e.,         Decrease in dependence on
                                                                                                       reducing CO2 emissions          imported fossil fuel
                                                 By Fuel
                800


                700
                                                                                         13.5%

                600                              2007

                500
    (MMboe/d)




                                                     9.9%

                400                                                                                    Cost and volatility of fossil   Declining cost of renewable
                                                                                                       fuels                           energy sources
                      9.5%
                300


                200


                100


                 0
                 1990    1995          2000   2005      2010   2015     2020    2025   2030    2035

                             Liquids      Natural Gas      Coal       Nuclear    Renew ables




                                                                                                      High commitment of developed nations translated into
                                                                                                      incentives and public policies


Source: EIA World Energy Outlook 2010                                                                                                                            |
                                                                                                                                                                     7
Wood Pellets have several advantages over other woody biomass


                       Woody biomass alternatives

                        Round wood                    Wood chips                 Wood pellets




 Bulk density (dry)1         450 kg/m3                   200-300 kg/m3              600-700 kg/m3




 Moisture content            30 - 50%                    30 - 50%                   <10%




                             Ca. 1.9-2.1 MWh/m3          Ca. 0.8-1 MWh/m3           Ca. 3 MWh/m3
 Calorific value2
                             Ca. 2.2-3.3 MWh/tonne       Ca. 2.2-3.3 MWh/tonne      Ca. 5 MWh/tonne



1 Stacked, including air.
2 At typical moisture when received at energy plant                                                   |
                                                                                                          8
Suzano Renewable Energy




Suzano’s strategy

Energy from biomass

Suzano’s competitive edge

Suzano Renewable Energy




                               |
                                     9
Suzano has achieved high levels of forest productivity through extensive
forestry R&D
  Forest Yield Evolution                                       Forest Yield Evolution
                                                               (m³/ha/year)



                                                                                    Monoprogeny planting          Biotechnology
                                                                           Clones   Soils and nutrition
                                                                                                           44
                                     More wood/ ha                                                                Classic
                                                                                                                  improvement
                                     More pulp/ m3                                               31
                                     Higher quality                                 29
                                     Less planting areas            21
                                     Lower costs


                                                               1960 1970            1991         1998      2008


  Suzano’s Portfolio of Clones




     –   Total clones being tested: 14.729
     –   Semi commercial clones: 398
     –   Commercial clones (in use): 39
     –   Field experiments: 614
     –   Total area with experimental plantations:3.913 hectares.




                                                                                                                                10
Recently developed “Energetic Forest” brings even higher yields and
short time to market.




   Suzano’s Conventional Forest              Suzano’s Energetic Forest

    – Regular Clone                           – Special Clone
    – Regular spacing between trees           – Short spacing between trees (high
    – Forest Yield~ 45 (m³/ha/year)               forest density)
    – Harvest in 7 years                      –   Higher yield
    – Can be used to make pulp or generate    –   Harvest in 2-3 years
      energy.                                 –   Cannot be used to produce pulp
    – Regular lignin content                  –   High lignin content
        – Regular calorific value                    – High calorific value




                                                                                    11
Suzano has a perfect fit with the biomass for energy business and
will be very competitive in this market


               Biomass for Energy – Why Suzano?
                 Know How:
                 – Higher levels of productivity due to results of forestry R&D
                 – More than 40 years of experience on eucalyptus planted forests in
                   Brazil.

                 Time-to-market:
                 – Suzano’s “Energy Oriented Forestry” enables planted forests to be
                    harvested only 2 to 3 years after plantation
                 .
                 Reliability:
                 – Integrated model with dedicated forests. Strong cash flow generator.

                 Environmental and Social Footprint:
                 – Wood pellets from Suzano will be made from planted forests,
                   respecting the highest standards on forestry stewardship.
                 – By investing in northeastern Brazil, Suzano contributes to social
                   development in the poorest region in the country.




                                                                                          12
Suzano Renewable Energy




Suzano’s strategy

Energy from biomass

Suzano’s competitive edge

Suzano Renewable Energy




                                     13
Suzano Renewable Energy was created to be the leader in the global
pellets market

                                                                                        2nd phase

                                                 1st phase




                               Number of             3 plants                               + 2 plants
                                  Plants                                                    Total of 5 plants


                               Production            3 million tonnes                       + 2 million tonnes
                                                                                            Total of 5 million tonnes


                       Estimated annual              ~ US$ 480 mm                           ~ US$ 800 mm
                              revenues1


                           1st year of full
                                                     2014                                   2018 and 2019
                                operation


                            Total Capex1             ~ US$ 800 mm                           ~ US$ 500 mm




1   In Dollars of 2010, based on current prices of woodpellets (source: Hawkins Wright ) and production volume released.   |
                                                                                                                               14
Several activities have been developed



Commercial   MoUs signed with potential customers for approximately 2,7 MM tons.
agreements    Objective is to sign long term supply agreements until December 2010.



             Poyry currently working on conceptual engineering of the pellet mills
               5 site locations identified, final decision during 2H10
Operations     Chemical characteristics of the wood tested on accredited laboratories with good
               results
               Discussions & pelletizing tests being conducted with top equipment suppliers



             Senior management already in place
People
               Most of the key positions already in place



             Assessing alternatives to:
Funding        Minimize Suzano’s capital contribution into the new company




                                                                                                  15
Senior Management


                            Managing Director responsible for Strategy, Corporate Development and Investor Relations
                            Has been with Suzano for 7 years: acted as Head of the Paper Business Unit and was also
                            responsible for Mucuri (Line 2), Maranhão and Piauí expansion projects during the
        André Dorf
                            conceptual engineering phase.
          CEO
                            Prior to Suzano: executive of JPMorgan in Brazil and NY, Chase Manhattan and Banco
                            Patrimônio/Salomon Brothers
                            Has a bachelor degree in business administration from Fundação Getúlio Vargas (“FGV”).


                            Executive Financial Manager, responsible for the treasury, financial planning, internal
                            control and credit for 4 years at Suzano
       Willy Jordan         Previous experience includes: executive at SAB Trading and trader of equities and
           CFO              commodities at Banco Itaú
                            Has a bachelor degree in economics from PUC-Rio and has master degree in economics
                            from the EPGE/FGV.



                            Has been working in the forestry industry for over 25 years, with experience in project and
        Marcos Stolf        business development involving wood products.
                            Prior to Suzano: executive at Celulose Irani, Amcel (Marubeni Group), International Paper,
   Director of Operations
                            Champion Papel e Celulose in Brazil and Weldwood in Canada.
                            Has a bachelor degree in forest management from ESALQ-USP and MBA from FGV.




                                                                                                                          16
Created to be the leader in the global wood pellets market.

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Suzano renewable energy company launch

  • 2. Suzano Renewable Energy Suzano’s strategy Energy from biomass Suzano’s competitive edge Suzano Renewable Energy 1
  • 3. Suzano is a solid company with more than 80 years in the P & P sector… Ownership and Management • Second largest eucalyptus pulp producer Defined controlling group • Reputation in the world and one of the top 10 market • Long term vision pulp producers. Certified plantations and products. • New growth cycle: from 2.8 to 7.2 million Capital markets tons per year of paper and pulp. • Management performance assessment • Pulp production costs: one of the lowest in • Transparency the world. • Funding for growth • Global company, approximately 60% of total sales from exports. • Capital markets presence: free float of 46%. Professional management • Strong cash generator: US$ 2 billion dollars • Capital discipline of revenue in 2009 with 30% EBITDA Margin. • Rapid decision-making process 2
  • 4. …and had its production capacity has increased by 130% in the last five years. A new growth cycle is already taking place. 7,150 New unit and Mucuri expansion Piauí Unit 2,750 2,850 Maranhão Unit 1,920 1,485 1,720 1,200 1,240 Note: The effective capacities will depend on the learning curves. 3
  • 5. Suzano’s decision to invest in biomass for energy was part of the Company’s strategic review process. 2008 Experiment with “Energy Oriented Forest” - Analysis of the portfolio of clones 2010 - Clone selection Investment decision on biomass - Experimental high density plantation for energy: in Maranhão -Business plan development 2009 -Launch of Suzano Renewable Strategic Review: Energy - Growth on wood pulp - Focus on forestry competences - Identification of new adjacent businesses Ex: -Biotech -Energy | 4
  • 6. In the Biomass for Energy business, Suzano has a strong value proposition to utilities, especially in the EU. Biomass for Energy – Suzano’s Value Proposition Reliability: – Large European utilities are very focused in renewable targets. – Biomass will play an important role in the transition to a “greener” energy mix. – Utilities will need solid suppliers. Having its own forests and being a strong cash flow generator, Suzano is able to provide large scale, long term contracts to utilities. Energy Mindset: – Since Suzano’s plan is to have forests dedicated to energy, it becomes a real player in the international energy market. Applied technology: – Through forestry technology Suzano will be able to keep improving its genetic material towards more energy-dense biomass. | 5
  • 7. Suzano Renewable Energy Suzano’s strategy Energy from biomass Suzano’s competitive edge Suzano Renewable Energy | 6
  • 8. Renewable energy’s share is growing worldwide due to solid drivers… Historical and Projected Global Energy Consumption 4 main primary drivers are sustaining this growth Climate concerns, i.e., Decrease in dependence on reducing CO2 emissions imported fossil fuel By Fuel 800 700 13.5% 600 2007 500 (MMboe/d) 9.9% 400 Cost and volatility of fossil Declining cost of renewable fuels energy sources 9.5% 300 200 100 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 Liquids Natural Gas Coal Nuclear Renew ables High commitment of developed nations translated into incentives and public policies Source: EIA World Energy Outlook 2010 | 7
  • 9. Wood Pellets have several advantages over other woody biomass Woody biomass alternatives Round wood Wood chips Wood pellets Bulk density (dry)1 450 kg/m3 200-300 kg/m3 600-700 kg/m3 Moisture content 30 - 50% 30 - 50% <10% Ca. 1.9-2.1 MWh/m3 Ca. 0.8-1 MWh/m3 Ca. 3 MWh/m3 Calorific value2 Ca. 2.2-3.3 MWh/tonne Ca. 2.2-3.3 MWh/tonne Ca. 5 MWh/tonne 1 Stacked, including air. 2 At typical moisture when received at energy plant | 8
  • 10. Suzano Renewable Energy Suzano’s strategy Energy from biomass Suzano’s competitive edge Suzano Renewable Energy | 9
  • 11. Suzano has achieved high levels of forest productivity through extensive forestry R&D Forest Yield Evolution Forest Yield Evolution (m³/ha/year) Monoprogeny planting Biotechnology Clones Soils and nutrition 44 More wood/ ha Classic improvement More pulp/ m3 31 Higher quality 29 Less planting areas 21 Lower costs 1960 1970 1991 1998 2008 Suzano’s Portfolio of Clones – Total clones being tested: 14.729 – Semi commercial clones: 398 – Commercial clones (in use): 39 – Field experiments: 614 – Total area with experimental plantations:3.913 hectares. 10
  • 12. Recently developed “Energetic Forest” brings even higher yields and short time to market. Suzano’s Conventional Forest Suzano’s Energetic Forest – Regular Clone – Special Clone – Regular spacing between trees – Short spacing between trees (high – Forest Yield~ 45 (m³/ha/year) forest density) – Harvest in 7 years – Higher yield – Can be used to make pulp or generate – Harvest in 2-3 years energy. – Cannot be used to produce pulp – Regular lignin content – High lignin content – Regular calorific value – High calorific value 11
  • 13. Suzano has a perfect fit with the biomass for energy business and will be very competitive in this market Biomass for Energy – Why Suzano? Know How: – Higher levels of productivity due to results of forestry R&D – More than 40 years of experience on eucalyptus planted forests in Brazil. Time-to-market: – Suzano’s “Energy Oriented Forestry” enables planted forests to be harvested only 2 to 3 years after plantation . Reliability: – Integrated model with dedicated forests. Strong cash flow generator. Environmental and Social Footprint: – Wood pellets from Suzano will be made from planted forests, respecting the highest standards on forestry stewardship. – By investing in northeastern Brazil, Suzano contributes to social development in the poorest region in the country. 12
  • 14. Suzano Renewable Energy Suzano’s strategy Energy from biomass Suzano’s competitive edge Suzano Renewable Energy 13
  • 15. Suzano Renewable Energy was created to be the leader in the global pellets market 2nd phase 1st phase Number of 3 plants + 2 plants Plants Total of 5 plants Production 3 million tonnes + 2 million tonnes Total of 5 million tonnes Estimated annual ~ US$ 480 mm ~ US$ 800 mm revenues1 1st year of full 2014 2018 and 2019 operation Total Capex1 ~ US$ 800 mm ~ US$ 500 mm 1 In Dollars of 2010, based on current prices of woodpellets (source: Hawkins Wright ) and production volume released. | 14
  • 16. Several activities have been developed Commercial MoUs signed with potential customers for approximately 2,7 MM tons. agreements Objective is to sign long term supply agreements until December 2010. Poyry currently working on conceptual engineering of the pellet mills 5 site locations identified, final decision during 2H10 Operations Chemical characteristics of the wood tested on accredited laboratories with good results Discussions & pelletizing tests being conducted with top equipment suppliers Senior management already in place People Most of the key positions already in place Assessing alternatives to: Funding Minimize Suzano’s capital contribution into the new company 15
  • 17. Senior Management Managing Director responsible for Strategy, Corporate Development and Investor Relations Has been with Suzano for 7 years: acted as Head of the Paper Business Unit and was also responsible for Mucuri (Line 2), Maranhão and Piauí expansion projects during the André Dorf conceptual engineering phase. CEO Prior to Suzano: executive of JPMorgan in Brazil and NY, Chase Manhattan and Banco Patrimônio/Salomon Brothers Has a bachelor degree in business administration from Fundação Getúlio Vargas (“FGV”). Executive Financial Manager, responsible for the treasury, financial planning, internal control and credit for 4 years at Suzano Willy Jordan Previous experience includes: executive at SAB Trading and trader of equities and CFO commodities at Banco Itaú Has a bachelor degree in economics from PUC-Rio and has master degree in economics from the EPGE/FGV. Has been working in the forestry industry for over 25 years, with experience in project and Marcos Stolf business development involving wood products. Prior to Suzano: executive at Celulose Irani, Amcel (Marubeni Group), International Paper, Director of Operations Champion Papel e Celulose in Brazil and Weldwood in Canada. Has a bachelor degree in forest management from ESALQ-USP and MBA from FGV. 16
  • 18. Created to be the leader in the global wood pellets market.