This communication contains certain statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements are identified with words like “believe,” “may,” “could,” “would,” “might,” “possible,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “estimate”, “potential”, “outlook” or “continue,” the negative of these words, other terms of similar meaning or the use of future dates. Forward-looking statements in this communication include, without limitation, statements regarding the implementation of operating and financing strategies and initiatives, including with respect to the integration of Fibria’s operations and expected potential synergies, plans with respect to capital expenditures, and factors or trends affecting financial condition, liquidity or results of operations. Such statements reflect the current views of management and are subject to a number of risks and uncertainties, including changes in prices and customer demand for our products, changes in raw material costs, pricing actions by competitors, changes in the rates of exchange of the Brazilian real against the US dollar, and general changes in the economic environment in Brazil, emerging markets or internationally. Such forward-looking statements are qualified by the inherent risks and uncertainties surrounding future expectations generally, and actual results could differ materially from those currently anticipated due to such risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur.
The statements information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation and should thus be considered in the context of the circumstances prevailing at the time. They are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors, and are subject to change without notice. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. Suzano does not undertake any obligation to update any information, opinion or forward-looking statements as a result of new information, future developments or otherwise, except as expressly required by law. All information, opinions and forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Irreplicable Assets
Growing Market
Sound Financial Management
ESG for more value and less risk
Technology, Innovation & Digital
The Future The New An
first class assets base
Our plantations
hectares of planted and certified areas Geographically eucalyptus genetic base equivalent to 200x Manhattan
areas m³/ha/year structural harvesting and average productivity average radius inbound logistics An
first class assets base
Our mills
MWm average pulp
equivalent to supply chain tons of tons of 1.4 mn market pulp paper people town An
first class assets base
Our logistics
mills fully either close to shore export or railway connected pulp served An
first class assets base
Paper business
pulp go-to-market Brazilian clients Brazilian integrated model brands market share¹
¹ Addressable market. Fully integrated
Plantation
Mill
Railway
Port Undisputable
in the pulp industry
Cash Cost(¹) Top 10(²)
Suzano Hardwood Softwood 10,9 APP + PE 3,8 CMPC 3,7 459 462 435 442 442 Arauco 3,1 391 April 361 367 2,8 341 Metsa 293 286 2,7 UPM 2,6 225 Stora Enso 2,1 Mercer 2,0
Ilim 1,8
Chile
Brazil
China
Europe
Indonesia
Canada/US US/Canada
East East Europe
Other World Other
Other Europe Other Chile/Uruguay
Other Asia/Japan Other ¹ Source: Hawkins Wright December 2018 (CIF Europe – USD/ton). ² Market pulp capacity production including hardwood and softwood volumes. Consistently cash cost R$/ton¹
709 690 668 622
2015 2016 2017 2018
¹ Cash production cost ex-downtimes. Pro forma basis of Suzano Papel e Celulose and Fibria Celulose cash production cost (R$/ton). Figures are adjusted by Brazilian inflation (IPCA) which represents R$ 104/t in 2015, R$ 52/t in 2016 and R$ 57/t in 2017. Structural competitiveness boosted by
Capture Profile1
100% 90% Operational Synergies G&A Supply Chain 40% R$800MM R$900MM Forestry per year¹ Industrial
¹ Total Steady State. Dec /2019 Dec /2020 Dec /2021 Structural competitiveness boosted by
Selected Logistic / examples Industrial Forestry Commercial Procurement G&A
Reduction in Wood supply Routes Contractual Organizational Initiative products (SKUs) optimization Optimization parameters Structure per plant equalization adjustment
Lower consumption Wood Operational scale Lower cost in Headcount of chemicals logistics cost expansion industrial and reduction Benefit reduction forestry inputs Higher OEE¹ Transshipment and fuel costs reduction
¹ Overall equipment effectiveness Adjusted Balance Average² annual deductible Accounting effect: Sheet to fair value¹ R$ 18.4 bn expenses of R$1.2 bn¹ EBT reduction
Preliminary Average3 annual fiscal Tax effect: Goodwill¹ R$ 8.1 bn deduction of R$0.8 bn¹ taxable base reduction
Total R$ 26.5 bn
¹ Based on preliminary PPA as disclosed on 2018 Financial Statements – Note 32 (ii). ² Estimate considering preliminary 10 years depreciation period. ³ Estimate considering preliminary 10 years fiscal amortization period. Growing on global pulp demand
Global Market Pulp Demand By Grade in million tons in million tons Softwood +1.4/y +0.2/y +0.2/y +0.4/y +1.3/y 66,0 27,0 21,8 24,3 24,9 +1.2/y 58,9 55,0
42,8 2005 2015 2018 2023E
Hardwood +1.0/y +1.1/y +1.0/y 34,0 39,0 30,8 21,1
2005 2015 2018 2023E 2005 2015 2018 2023E
Source: PPPC S&D 2019. Supported by market dynamics
Chinese Market Pulp Demand Tissue Consumption per Capita Tissue Machine Closures from in million tons in kgs per year Environmental Restrictions in million tons 25,6 1,4 1,4 1,5 +1.1/y 16,0 15,7 25,3 0,6 +1.1/y 0,5 6,7 6,0 19,8 +1.1/y North West Japan Latin China 2015 2016 2017 2018E 2019E 16,5 America Europe America
Chinese Waste Paper Imports Woodchip Supply Restrictions in million tons in million BDMT 25 29 28 23 26 Others 3 Chile 3,1 3,3 2 5,8 17 Australia 6,5 4,5 ? Southeast Asia 12,4 13,3
2005 2015 2018 2023E 2015 2016 2017 2018 2019- 2018 2023E 2023E Source: PPPC S&D 2019, RISI, Hawkins Wright, Suzano BI. Driven by end-uses
Global Market Pulp 58.9 Demand Annual Demand by end use million tons Growth until 2030 Paper and paperboard Tissue & Fluff 47% +2.9% demand average growth of
Printing & Writing 26% -0.7%
Specialty 20% +0.6% until Packaging +2.3% Breakdown 2030
Source: PPPC S&D 2019, Poyry, Hawkins Wright, Suzano BI. Historical Volatility of Commodities (US$)1
Low correlation 33% Lowest volatility 28% 28% 25% 20% 22% 17% 19% 7%
BHKP² LME Metals Cattle Copper Soy Iron Ore Nickel Sugar Crude Oil
BHKP -1% 2% -2% 1% 1% 3% -3% 1% Correlation2
¹ Source: Bloomberg, from December 31, 2011 up to January 25, 2019. 2 BHKP China. Sound Financial mostly from international markets
Net revenues (US$ billion) 8,7 7,0 6,1 6,1 Americas 5,6
Europe
Asia
2014 2015 2016 2017 2018
Note: Pro forma figures of Suzano and Fibria historical data. Average exchange rate of R$ 2.35 in 2014, R$ 3.33 in 2015, R$ 3.49 in 2016, R$ 3.19 in 2017 and R$ 3.65 in 2018. Revenue 88% USD Hedging Policy
COGS 20% USD Operating Hedge Debt Hedge Target: up to 75% of the Target: Net debt SG&A 27% USD following 18 months 100% denominated Sustaining in USD 11% USD Current: 63% of Capex net exposure² Sensitivity¹
~ R$ 700 million EBITDA ~ R$ 600 million ¹ Sensitivity at each R$ 0.10/US$ variation Operational Cash ² Net exposure as of December 2018. Generation debt profile
Amortization Schedule (US$ million)¹ 5,056
3,507 RCF average debt maturity 2,157 2,459 1,432 1,531 1,598 Cash on 1,168 hand 961 Trade Related
Non Trade Related Liquidity 2019 2020 2021 2022 2023 2024 2025 2026 onwards
¹ The gross debt and cash consider: (i) the accounting position of Suzano and Fibria on Dec 31,2018; (ii) less the transaction’s Cash Installment payment (R$ 27.8 billion); (iii) plus the cash raising and debt of re-tap of the 2029 Bond (US$ 780 million / R$ 2.9 billion); (iv) plus the cash raising and debt of the 7th debenture issuance (R$ 4.0 billion); (v) less the advance payment of Fibria´s CRA (R$ 879 million); (v) plus the cash raising and debt of EPP (R$ 781 million), and PTAX of 3.8748 R$/US$ on Dec 31,2018. 10% Non Trade Finance 33% Related Bank Local
Sources Counterpart
67% International 37% 34% 19% International Trade Finance Local Capital and Capital Banks Related Bank Markets
Funding sources Funding breakdown considers the adjustments mentioned at amortization schedule slide. Policies Indebtedness Net Debt/EBITDA Ratio (in US$):
1.0x to 3.0x 1.0x to 3.5x Normal Cycle Investment Cycle
Dividend The lowest between: 25% of the net income or Net Debt (US$ billion) 10% of the Operational Cash Flow Generation¹ 13.5 10
Fibria 7.2 Transaction Leverage US$ (Net Debt / Adj. EBITDA)² Net 6.3 3.1x Debt 12/31/2018² Long-Term Target
¹ Operational Cash Flow = Adjusted EBITDA – Sustaining Capex | ² Net Debt and Leverage Pro Forma on Dec 31, 2018 and considers the adjustments mentioned on amortization schedule slide. Currently the
G-spread in Brazil 372
299 260 239 252 210 219 220 Investment Grade 174
Rating Outlook
BBB- Stable
BBB- Stable BRAZIL SUZANO BRASKEM GERDAU RAIZEN VALE KLABIN PETROBRAS BRF
¹ Issuances with no maturity in 2026 interpolated for comparative purposes; G-spread on March 19, 2019. Source: Bloomberg. 6 Peers
5
Suzano 26 (BBB-) CMPC 27 (BBB-) Arauco 27 (BBB-)
4
IP 26 (BBB)
3 Janjan-18 - Aprabr-18 - Juljul-18 - Octoctout-18 -- Janjan-19 - Source: Bloomberg, on 03/18/2019 Capital
Capex (R$ billion) 2018 2019e Sustaining 3.9 4.0 Modernization and Expansion 2.0 0.6 Forest and Land 1.3 1.4 Port Terminals¹ 0.2 0.4
Total 7.4 6.4
¹ States of São Paulo and Maranhão. ESG for in place
Well-balanced Board of Directors Supported by Management Up to 10 members Audit Statutory Committee Eligibility assessment Management and Finance Committee 20% independent Innovation and Strategy Committee members Sustainability Committee + Talent and Compensation Committee Continuously improving
A well-known investment case... 1992 1992 2000 2009 2018
SUZBY TRADED OTC Suzano and the 2030 12. Responsible consumption 9. Industry, innovation and production and infrastructure
15. Life Forest Low Carbon 13. Climate on land Management Economy action
Community Water, Energy & Development Waste Management 1. No 6. Clean water poverty and sanitation
11. Sustainable cities 7. Affordable and and communities clean energy we are we do we do it people who create and it's only good inspire and share value for us if it's good transform for the world a game changer Tree Genetics Increasing forest and Breeding productivity by 1.5% p.a.
Improving wood quality
Main strategies: Classical Breeding
Biotechnology Industrial Pulp Development
Tensile resistance New Sustainability improvement products & Cost out SWKP Other materials Fewer usage of replacement replacement: natural resources EucaStrong Fluff High Kappa Bio-composites Textiles Packaging tailwinds
Drivers Opportunities Increase in Global warming Biomass urban waste Volatility in energy Limited access to prices raw materials Biofuels Water Food safety shortages challenge Biomaterials Diversify cash flow through a well-defined
Selected Identification of Selection & Pilot Agreements with Commercial Estimated Market Technologies Potential Technology Agreements with Investments Application Partners Investments Potential/year Partners Technology Partners Lignin > US$ 5 Bn Pyrolysis > US$ 5 Bn Micro Fibrillated Cellulose > US$ 10 Bn Cellulose Nanocrystals > US$ Bn (CNC) 1 Bio Composites > US$ 15 Bn
Dissolving Pulp > US$ Bn + Sugars 5
Innovation and New Businesses Consumer Goods Pulp Paper
Fluff Nanocellulose Bio fuel Geographic Organic expansion in Brazil International Expansion
Lignin Dissolving Pulp Bio Composites Portfolio expansion M&A Future
Pulp demand growth Deleverage trend INNOVATION Low price volatility EM detached High performance Culture Global presence IG commitment STRONG CASH GENERATION SCALABILITY Strong Governance Capital allocation optionalities Lowest production cost I rreplicable Sound Sustainability Value Creation