16
0
200
400
600
800
1,000
1,200
1,400
Average Price (base 100 in 2000)
Source: Bloomberg, Index Mundi, PIX/Foex
2000 2005 2010 2015
Aluminum Soy Iron Ore Oil Copper
Rubber Cotton Pulp (softwood) Pulp (hardwood) CRB
Avg. Price (Base 100 – Jan/00 to Jun/15)
Commodity (%)
Iron Ore 314
Copper 195
Rubber 164
Oil 115
CRB 112
Soy 100
Pulp (softwood) 20
Pulp (hardwood) 14
Cotton 10
Aluminum 4
The pulp industry did not benefit from the commodities supercycle
Indiscipline penalized pulp prices: +6% vs. inflation of
35% in the last 15 years
Production of market pulp
Source: Poyry
MM
to
n
51.6
2005
52.6
2006
53.6
2007
54.7
2008
55.7
2009
56.8
2010
59.7
2011
61.0
2012
62.2
2013
63.6
20140
50
100
150
200
250
300
NBSK BHKP CPI IPCA
2006 2008 2010 2012 20142000 2002 2004
Source: Bloomberg
Base
100
+141%
+30%+6%
+35%
Pulp price and inflation
5.85.5
4.9
3.7
2.93.3 3.3 3.5
3.9
3.3 3.13.4
2.7 3.1 3.1
2.3
3.1 33.5
Dec 2010 2011 2012 2013 2014 Jun 2015
Source: Bloomberg
Companies used in the analysis: Suzano, Fibria, Klabin and CMPC
Average ROIC of industry (%)
Industry has been unable to deliver
returns above WACC
Structurally, the industry requires heavy investments in maintenance
Operating FCF Mg: (EBITDA – Maintenance Capex)/Net Revenue
Source: Earnings releases of Suzano, Fibria and Klabin
MarginAsset turnover
0.25x 0.26x 0.25x 0.24x 0.26x 0.26x 0.28x
29%
34%
28%
31%
35% 36%
40%
21%
24%
14%
20%
23% 22%
26%
0.x
0.1x
0.2x
0.3x
0.4x
0.5x
0.6x
0.7x
0.8x
0.9x
0%
5%
10%
15%
20%
25%
30%
35%
40%
2009 2010 2011 2012 2013 2014 UDM jun15
Asset
turnover
EBITDA Mg Operating FCF Mg
LTM Jun15
Suzano transformed its business model to
maximize the return on its assets
Profitability
Structural competitiveness
Adjacent business
Industryreshape
Structural competitiveness enables greater profitability
Energy exports
Matrix budgeting
Retrofitting of plants
New logistics model
Focus on the client
Simplification of processes
Forestry redesign
Cultural transformation
Structural competitiveness enables greater profitability
12.3 12.6 11.911.0 10.4
9.5 8.8
jun/12 dec/12 jun/13 dec/13 jun/14 dec/14 jun/15
SG&A. / Net Revenue
LTM¹ (%)
Note: (1) last twelve months
1,233
jun/12
1,261
dec/12
1,274
jun/13
1,307
dec/13
1,328
jun/14
1,284
dec/14
1,285
jun/15
Unit COGS LTM¹ (R$/ton)
Inflation of 21.4%
Increase of 4.2%
v
Cultural transformation
Strong
Competitive company
Our creed
o Speed and autonomy at the local level
o Simplification of processes
o Breaking down silos
Gentle
Taking care of people, the environment and surrounding communities
People
o Training/development
o More attractive compensation (meritocracy)
o Attraction of new talent
o Promotion of wellness and quality of life
Transformação culturalOur creed
Cultural transformation
Our creed Gentle
Taking care of people, the environment and surrounding communities
Environment and community
o Ethical and transparent dialog
o Community councils
o Sustainable forest stewardship
o Projects to preserve and restore native vegetation and restoration of native forest
Increased profitability through Adjacent Businesses that innovate and break down paradigms
FuturaGene
o First genetically modified clone
approved by CTNBio for
commercial purposes
o Potential to increase productivity
by nearly 20%
Increased profitability through Adjacent Businesses that innovate and break down paradigms
Euca Fluff
o First company in the world to use
hardwood to produce fluff
o Capacity to replace up to 70% of
fluff to produce sanitary pads and
up to 30% for diapers
innovation
Increased profitability through Adjacent Businesses that innovate and break down paradigms
Lignin
o Replacement of petrochemicals
with renewable source
o Can be used in several high value-
added applications
5.24.8
4.6 4.54.1
3.93.3
Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 Jun/15
Net Debt/ Adjusted EBITDA LTM*
Average Cost of Debt (%)
Consistent progress in the company’s balance sheet and in the market’s risk perception...
125%
94.4%
91.2%
89.9%
5.5%
4.8%
4.7%
4%
R$ US$
Dec/12
Dec/13
Dec/14
Jun/15
Debt in Brazilian real as percentage of CDI
LTM* - last twelve months
...leaves the company better prepared for industry
reshape
SUZB5+149%
Ibovespa-17%
Source: Bloomberg
150
100
50
0
DEC2012
JUN2013
DEC2013
JUN2014
300
250
200
DEC2014
JUN2015
