The PwC 24th Annual Global

Forest & Paper Industry Conference

The Brazilian Pulp and Paper Industry

José Luciano Penido Chairman of the Board of Fibria and Bracelpa Co-Chair of the SFPI Working Group (WBCSD)

Vancouver May 11th

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MAIN INDICATORS

Planted areas (eucalyptus, pines and others) 6,973,000 ha

Preserved forest area 4,048,000 ha 58% Gross result of production US$35.0 billion Taxes paid US$5.0 billion

Exports US$8.6 billion Jobs generated 4,695,422

Direct 640,426 Indirect 1,452,680

Revenue Effect 2,602,316

Source : ABRAF

Brazilian Planted Forests 2010

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Use of Land in Brazil

Brazil 851 % of the Total Land

Total of Preserved Areas and Other Uses * 529 62.2%

Total Arable Land 315 37.0%

- Arable land per crop 72 8.5%

Soybean 22 2.6%

Corn 14 1.7%

Sugarcane 9 1.0%

Coffee 2 0.2%

Cotton 1 0.1%

Orange 1 0.1%

- Pasture 172 20.2%

- Available land 71 8.3%

Planted forests 7 0.8%

Source: IBGE, CAN, Conab, Min. of Agriculture and the Brazilian Association of Forest Plantation Producers (ABRAF)

* These areas include: the Amazon Forest, environmental protection zones, preservation areas, cities, lakes and rivers.

Million ha - 2009

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|

CO2 Sequestration Brazilian Planted Forests

1billiontonsof

CO2/year

7.0millioncharcoal|:mber

hectarespulpandpaper

Source: ABRAF

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New Brazilian Cycle of Investment Pulp and Paper Industry 2010-2020

Investments (2010 – 2020) US$ 20 billion

2010 2020 %

Planted Area (millions of hectares) 2.2 3.2 45%

PRODUCTION (million metric tons)

- Pulp 14 22 57%

- Paper 9.8 12.7 30%

EXPORTS (US$ billion)

Pulp/Paper 6.8 13.0 91%

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Industry Challenges

  Global Paper Production may increase 1.5% per year until 2020. 25 MT of additional market pulp is needed to meet this demand. Southern Cone countries are potential suppliers that may meet this pulp demand.

  The Industry should improve and increase IMPF (Intensively-Managed Planted Forests) in a

broader market sense: pulp and paper, timber, energy, charcoal, and new uses for biomass like cellulosic ethanol.

  Significant portion of the expansion of the forest base will be developed by forest wood partners (small and medium-size properties). Forest Certification Systems must facilitate the process for area or group certification of small and medium –size landowners

  The recognition of carbon sequestration in forests is important in fostering the development

of the Sustainable Forest Products Industry into the new Low Carbon Economy. The Industry aims to trade forest carbon via the UNFCCC.

  Tree Biotechnology must be included in “New Dialogues” in the near future. Forest Certification Systems should lead these talks, along with The Forests Dialogue.

Thank you for your attention!