2. Highlights 4Q09
• Record paper and market pulp production of 696 thousand tons.
• Sales volume of 720 thousand tons (413 thousand tons of pulp and 307 thousand tons of
paper).
• Net revenue of R$ 1.0 billion, 14.5% higher than in 3Q09 and 7.3% lower than in 4T08.
• Pulp production cash cost of R$ 398/ton, 6.8% higher than 3Q09 and 9.1% lower than
in 4Q08.
• EBITDA of R$ 255 million, with margin of 25.0%. EBITDA without non-recurring items
of R$ 309 million with margin of 30.3%.
• Net income of R$ 136 million.
• Net debt/EBITDA ratio of 3.9 in Dec/2009.
2/13
3. Highlights 2009
• New annual production record: 2.7 million tons of paper and market pulp.
• New annual sales record: 2.9 million tons (1.8 million tons of pulp and 1.1 million tons of
paper).
• Net revenue of R$ 4.0 billion, stable compared to 2008.
• Pulp price recovery since May/2009 and reduction in inventories.
• EBITDA of R$ 1.0 billion with margin of 25.8%.
• Record annual net income of R$ 878 million.
• Cash and cash equivalents of R$ 2.5 billion on 12/31/2009 and net debt reduction of R$ 1.5
billion in 2009.
3/13
4. Pulp Business Unit
• Global demand recovery (volume)1:
Market 4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
Market Pulp: -3.0% +8.3% +1.8%
BEKP: -0.3% +15.4% +16.8%
• Global inventories: 27 days (Dec/09) – still below the historical average of 33 days
• New price2 increases announced for January, February and March/10 (US$ 30/tons each)
4T09 and 2009
• Sales: 413 ktons (4Q09) / 1,780 ktons (2009):
4Q09: 3.4% higher than in 3Q09 and 25.3% higher than in 4Q08
2009: 34.8% higher than in 2008
• Main sales destinations in 4Q09: Asia (38.8%), Europe (35.8%) and Brazil (17.8%)
Suzano
• Average net price in 4Q09 (domestic and exports): US$ 572/ton, +22.8% x 3Q09. In R$:
3Q09: +14.4%
4Q08: -13.1%
2008 x 2009: -22.5%
• Net revenue of R$ 410.8 million: +18.3% vs. 3Q09 and + 8.9% vs. 4Q08. In 2009: +4.6% vs. 2008
• Production cash cost: R$ 398/ton (+6.8% vs. 3Q09 and -9.1% vs. 4Q08)
1PPPC 2CIF Europe list price 4/13
5. Pulp Business Unit
Pulp Sales (ktons) Pulp sales destinations 4Q09
1,780.2
South/Central
1,320.3 America Brazil
0.7% 17.8%
Asia
1,519.4 38.8%
North America
1,088.7
6.9%
412.6 399.0 329.3
339.0 330.1 277.8 260.8 231.6 Europe
73.6 68.9 51.5
4Q09 3Q09 4Q08 2009 2008
35.8%
Domestic market Exports
Total 413 ktons
Pulp Sales (R$ million) Pulp sales destinations 2009
1,608.9
1,538.8 South/Central
America
0.9% Brazil
14.7%
North America
1,377.1 1,276.5 6.7% Asia
44.9%
410.8 347.4 377.3
344.0 291.8 315.6
231.8 262.3 Europe
66.8 55.6 61.7 32.9%
4Q09 3Q09 4Q08 2009 2008
Domestic market Exports
Total 1.780 ktons
5/13
6. Paper Business Unit
• Sales volume recovery in Brazil in 4Q091:
4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
Market
Printing & Writing +1.9% 0.0% -2.8%
Paperboard +1.8% +18.4% -2.8%
• Reduction of P&W paper imports in the domestic market (21.7% vs. 22.7% in 3Q09)
4T09 and 2009
• Higher Brazilian exports: 39.3% of total shipments vs. 35.9% in 3Q09
• Sales volume recovery in the domestic market in 4Q09:
4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
Printing & Writing +10.4% -4.6% -9.5%
Paperboard +7.5% +13.4% -11.9%
Suzano
Average price (domestic) -3.5% -8.7% -0.1%
• Domestic sales: 55.1% of total sales in 4Q09
• Exports average net prices recovery in US$ in 4Q09 vs. 3Q09:
4Q09 x 3Q09 4Q09 x 4Q08 2009 x 2008
US Dollars +5.1% -5.9% -13.6%
Brazillian Reais -2.1% -28.3% -5.9%
1Bracelpa
6/13
7. Paper Business Unit
Paper Sales (ktons) Paper sales destinations 4Q09
1,115.7 1,161.7 Other Europe
8.9% 12.4%
503.8
524.4
Brazil
North America
55.1%
307.0 302.2 10.9%
262.0 657.8
591.3
137.8 107.7 131.5
169.3 154.3 170.7
South/Central
4Q09 3Q09 4Q08 2009 2008 America
12.6%
Domestic market Exports
Total 307 ktons
Paper Sales (R$ million) Paper sales destinations 2009
2,524.7
2,343.9
Other
937.4 11.0%
918.2
Europe
Brazil 11.8%
53.0%
723.0
609.2 543.3 1,425.7 1,587.3 North America
221.6 294.9 11.3%
177.1
387.5 366.3 428.1
South/Central
4Q09 3Q09 4Q08 2009 2008 America
Domestic market Exports 12.8%
Total 1.116 ktons
7/13
9. 2009 Results
2009/2008
Results 2009 2008
(%)
Sales volume (000 tons) 2,896 2,482 16.7%
Paper volume domestic market (000 tons) 591 658 -10.1%
Pulp volume exports (000 tons) 1,519 1,089 39.6%
Net revenue - R$ million 3,953 4,064 -2.7%
Net income - R$ million 878 (451) n.a.
EBITDA - R$ million 1,021 1,469 -30.5%
EBITDA - US$ million 511 800 -36.2%
EBITDA margin 25.8% 36.2% -10.3 p.p.
Exchange Rate (R$/US$) 2.00 1.84 8.9%
Net debt 3,966 5,459 -27.4%
Net debt / EBITDA 3.9 3.7 n.a.
n.a. – non aplicable
9/13
10. Non scheduled downtimes in Mucuri
In 3Q09: Consequences In 1Q10:
• Incident in the pulp dryer • We decided to anticipate our
in line 2: machine´s • Higher chemicals consumption scheduled downtime for
component detachment maintenance and technical
•Overload in chemicals recovery problem solving
•Some rolls were damaged
causing a production downtime •Non scheduled downtimes • Processes and equipments
of 6 days for repairs and and restarts offset
parts´ replacement
Action plan
• Joint work with equipments supplier
• Specific trainings and dedicated consulting
• Continuous improvement programs are in place to enhance equipment performance
• Partnership with INDG* for routine management
* National Management Development Institute 10/13
11. New Growth Cycle
Main 2009 accomplishments:
• Suzano already owns 75% (Maranhão) and 100% (Piauí) of the total land needed
to assure operations start ups in 2013 and 2014.
• Forest operation infrastructure deployment in Maranhão and Piauí:
more than 1,700 employees already located in new sites
• Innovation: night planting
• Conceptual engineering completed and engagement of basic / detailed engineering
• Beginning of industrial licensing
• Final agreements with Vale (acquisition of forest assets and technological
cooperation)
• Final agreements with Vale and CFN: railroad transportation for the pulp
output from new units to the port
11/13
12. Key Messages
• Demand recovery in pulp and paper markets
Paper: P&W and paperboard demand growth in the Brazilian market (4Q09 x 3Q09) and annual demand
recovery similar to 2008 levels
Pulp: inventories still at low levels and successive price increases
• Focus on operational performance
Costs and expenses discipline:
Average pulp production cash cost of R$ 389/ton in 2009 (-11.4% x 2008)
Reduction of 14% in SG&A (2009 x 2008)
Working capital reduction of R$ 437 million in 2009
• Solid financial position
Adequate debt profile and competitive debt cost
Strong cash position: R$ 2.5 billion
Net debt reduction of R$ 1.5 billion
• Solid growth strategy
Evolution on the projects of Maranhão and Piaui’s new units: investments of R$ 361 million in 2009
PS: P&W – Printing and writing 12/13
