2 q10 earnings presentation

2Q10 Consolidated ResultsAugust 12th, 2010

02/09

Pulp

Paper

• Global market pulp production of 9.9 MMt in 2Q10: -1.7% vs. 1Q10 and +5.4% vs. 2Q09

• Global pulp sales volume: (MMt)

2Q10 2Q10 x 1Q10 2T10 x 2T09

Market Pulp: 10.1 +0.2% -4.1%

Eucalyptus: 3.4 -3.1% -6.4%

• Global inventories at 25 days1 (Jun/10): below the historical average of 33 days

• Price increases announced for April, May and June: U$ 920/ton (June, CIF Europe)

• Lower pulp availability in 2Q10: Chile earthquake and delays in the startup of the Rizhaomill (China)

1PPPC

• Domestic demand2: growth post-crisis recovery

2Q10 2Q10 x 1Q10 2Q10 x 2Q09

Printing & Writing 457.5 +6.9% +10.9%Paperboard 153.8 +3.7% +22.2%

• Decrease in P&W paper imports in the domestic market (23.4% vs. 24.5% in 1Q10)

• Brazilian exports accounted for 40.0% of total sales compared to 40.9% in 1Q10

• Global P&W demand recovery in 1S10 vs.1S09:

Latin America: +14.9% North America: +7.8%

Asia: +18.1% W. Europe: +5.4%

Highlights 2Q10 –Pulp and Paper Markets

2Bracepla

Highlights 2Q10 - Suzano

• Total market pulp and paper production of 705 thousand tons

• Sales volume of 717 ktons: 420 ktons of pulp and 297 ktons of paper

• Net revenue of R$1.2 billion

• Pulp production cash cost of R$464/ton1

• EBITDA of R$ 413 million, with EBITDA margin of 34.7%

• Successive pulp price increases and global inventories below historical levels

• New increases in paper prices in both domestic and export markets

• Net income of R$135 million

• Net debt / EBITDA ratio of 2.7, cash and cash equivalents of R$ 2.5 billion on June 30th, 2010 and, gross debt reduction of R$ 202 million

• Investments announced in biotechnology (Futuragene) and pellets for energy (Suzano Renewable Energy)

03/091 Excluding maintenance downtime costs

04/09

Pulp Business Unit

• Sales: 420 thousand tons in 2T10

� 9.1% higher than 1Q10� 23.3% lower than 2Q09

• Average net price in 2Q10 (domestic and exports) of US$ 741.5/ton, +15.0% vs.1Q10. In R$:

� 14.2% higher than 1Q10� 60.3% higher than 2Q09

• Net revenue of R$ 558.6 million.

� 24.6% higher than 1Q10� 23.0% higher than 2Q09

Pulp Sales (ktons) Pulp Sales Destination

420 Ktons 385 Ktons

2Q10 1Q10

05/09

Paper Business Unit

Paper Sales (ktons) Paper Sales Destination

• Sales volume in 2Q10 higher than 1Q10:

2Q10 x 1Q10 2Q10 x 2Q09

� Printing & Writing +17.8% -6.5% � Paperboard +8.4% -1.1% � Average price (domestic) +3.6% -2.6%

• Domestic sales: 53.3% of total sales in 2Q10

• Recovery of the exports average net price:

2Q10 x 1Q10 2Q10 x 2Q09

� In US$ +7.0% +22.7%� In R$ +6.3% +6.0%

297 Ktons 257 Ktons

2Q10 1Q10

06/09

Operational Performance

• Higher share of pulp in Suzano’s revenue:

47% in 2Q10 vs. 46% in 1Q10

• Pulp cash cost ¹ 9.2% higher than 1Q10:� Higher costs related to wood from third parties

� Higher chemicals cost

• EBITDA margin of 34.7%:� Return to historical levels � No non-recurring items in 2Q10

Net Revenue Breakdown Pulp cash cost¹ (R$/ton)

EBITDA (R$ MM) / Margin (%)

1 Mucuri Unit

Debt Breakdown - R$ Million jun/10 mar/10 jun/09

Gross Debt 6,285 6,487 6,923

(-) Cash and Cash Equivalents -2,544 -2,399 -2,429

Net Debt 3,741 4,088 4,495

Net Debt / EBITDA 2.7 3.4 3.5

07/09

Debt and leverage

08/09

Key Messages

• Demand recovery in pulp and paper markets:

� Paper: higher demand of P&W paper and paperboard in the Brazilian and internationalmarkets

� Pulp: global inventories below the historical average and successive price increases

• Operational margins recovery

• Solid financial position

� Adequate debt profile and competitive debt cost

� Leverage reduction: from 3.4x in Mar/10 to 2.7x in Jun/10

� Gross debt reduction of R$ 202 million in 2T10

• Consistent growth strategy

� Evolution in Maranhão and Piauí projects:

− Basic engineering to be concluded in 4Q10

� Sale of non strategic forestry assets:

− R$ 334 million (gross value) in cash in 2Q10

� Acquisition of Futuragene in the UK concluded

� Investment announced in pellets production for energy : Suzano Renewable Energy

09/09

Investor Relationswww.suzano.com.br/ri+55 11 [email protected]