Suzano Papel e Celulose SA : 2Q13 Earnings Presentation

2Q13 Earnings Presentation

This release may contain forward-looking statements. These statements are subject to known and unknown risks and uncertainties that can lead such expectations to not materialize or to differ materially from expectations. These risks include: changes in future demand for the Company's products, changes in factors affecting domestic and international product prices, changes in the cost structure, changes in the seasonal patterns of markets, changes in prices charged by competitors, foreign exchange variations,

changes in the political or economic situation of Brazil, and changes in emerging and international markets.

2

Adjusted EBITDA of R$ 408 million, increasing 37% from 2Q12. EBITDA margin of 30.6%, expanding 8.1 p.p. from 2Q12

Increase in pulp prices in USD (+4% vs. 2Q12 and +2% vs. 1Q13) Increase in paper prices (+7% vs. 2Q12 and +3% vs. 1Q13)

Reduction of 2% in cash cost from 2Q12, due to the lower consumption of raw material and reduction in fixed costs, both reflecting the higher productivity and a quarter not impacted by scheduled downtimes

Reduction of 6% in general and administrative (G&A) expenses in 6M13 compared to 6M12

Maranhão Project advancing on schedule and CAPEX as announced

Solid financial liquidity: cash of R$ 4.5 billion

Leverage ratio of 5.1x Net debt/Adjusted EBITDA, increasing 0.1x from March 2013, despite FX

variations and investment in the Maranhão project in the quarter

Start of the second phase of debt management aimed at reducing costs and increasing terms

Conclusion of the divestment of Suzano's interest in the Capim Branco Energia Consortium

3

Productivity gains lead to a 5% increase in produced volume on 6M13 vs. 6M12

Pulp and Paper Production

('000 ton)

Sales Volume

('000 ton)

+9.2%

+4.7%

-5.7%

-3.9%

+8.6%

764 768 833

333 324 322

431 444 511

1,528 1,601

644 646

884 955

+6.2%

801 710 755

353 269 318

448 441 437

1,525 1,465

629 587

896 878

2Q12 1Q13 2Q13 6M12 6M13

Pulp Paper

2Q12 1Q13 2Q13 6M12 6M13

Pulp Paper

Pulp Sales Volume

2Q13

Paper Sales Volume

2Q13

Europe 32%

25% Brazil

14%

South/ Central America

North

12%

South/

1% Central

Brazil 68%

1% Others

12% North

America

America

30%

Asia

America

5% Europe

4

Net Revenues

(R$ million)

Pulp Cash Cost ex-maintenance Downtime

(R$/ton)

+0.8%

+6.2%

-2.3%

+3.4%

+13.6%

1,324 1,174 1,334

707 622 679

2,361 2,508

1,252 1,301

-6.1%

582 606 568 566 585

Average

617 552 655 1,109 1,207

2Q12 1Q13 2Q13 6M12 6M13

Domestic Market Exports

2Q12 1Q13 2Q13 6M12 6M13

R$/US$

1.96 2.00

2.07

1.86 2.03

Pulp Cash Cost ex-maintenance Downtime Evolution

(R$/ton)

G&A

(R$ million)

43

582 568 (31)

(24)

-6.1%

+3.5%

189

-6.1%

178

-R$ 13/ton

2Q12 Wood Raw Material Fixed Cost 2Q13

2Q12 1Q13 2Q13 6M12 6M13

5

Increase of 37% on Adjusted EBITDA vs. 2Q12 impacted by higher paper and pulp prices, and

operational costs and expenses reduction

Adjusted EBITDA and Adjusted EBITDA Margin

(R$/ton) (%)

Evolution of Adjusted EBITDA (R$ million)

27.9%

30.6%

29.3%

69 8

+36.9% +37.1%

+24.7%

735

298 11

298 327

408

536

2Q12 1Q13 2Q13 6M12 6M13

Net income (loss)

2Q12

1

Net

Revenue

COGS SG&A Others1

2Q13

(R$ million)

Note:

includes other recurring operational revenues/expenses, depreciation,

amortization and depletion

2Q12

EBITDA

Depr. Amort.

& Depletion

(34)

Financial

Result

(16)

Exchange

Variation

Taxes and SC

2Q13

Exchange variation of 10% in the period, with negative impact on financial results due to the mark-to-market of the debt denominated in foreign

currency (non cash impact).

(264)

217

(113)

(37)

(248)

6

Conservative financial policy with long term debt profile

Net Debt (R$ million) and Net Debt/ Adjusted EBITDA (x)

5.0 x 5.0 x 5.1 x

4.5 x

4.7 x

6,794 7,483

5,386 6,003 6,381

2Q12¹ 3Q12 4Q12 1Q13 2Q13²

Nota: (1) Includes the Equity Offering funding (R$ 1.5 billion)

(2) Does not include resources from divestment of the interest held by Suzano in the Capim Branco Energia consortium and other non recurring items.

Cash position in June 2013: R$ 4.5 billion

Reduction of average cost of debt:

In Brazilian Reais: from 8.7% p.a. in March 2013 to 7.9% p.a. in June 2013

In U.S. Dollar: from 5.6% p.a. in March 2013 to 4.7% p.a. in June 2013

Increased term debt profile: from 4.5 years in March 2013 to 4.7 years in June 2013

Liquidity horizon above 60 months

Maranhão Project Financing: around R$ 900 million from BNDES to be disbursed

7

Investments in the Maranhão Unit according to estimated budget

April 2011 April 2012 November 2012

January 2013

July 2013

Investments in the

Maranhão Unit

(R$ million)

2009 2010 2011 2012 1Q13 2Q13 Total

193 162 841 2,123 621 406 4,346

Maranhão Project Status (on 07/31/2013)

Overall physical progress 90% Construction 95% Electro-mechanical assembly 69%

Comissioning 16%

8

Investments of R$ 148 million on projects for productivity gains were announced for 2013

Cut Size production in Mucuri:

concluded in Aug 2013

Cut size production

Mucuri biomass boiler

Digester at Suzano plant

Mucuri boiler

Wood chipper in Limeira:

start up scheduled for Feb 2014

Standardization and upgrade of harvesters fleet

Wood chipper in Limeira

Harvester

9

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