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Investor Presentaiton

10 PRESENTATION ELDORADO BRASIL 2016 SUSTAINABILITY REPORT 11 MESSAGE FROM THE CEO ALTURA 5,60m Analyzing 2016, we can clearly see the progress Eldorado Brasil has made, which strengthen the com- pany's successful trajectory. Driven by innovation, competitiveness and sustainability pillars guiding the corporate activities -, we raised excellence in the forestry area, from the seedling nursery in An- dradina (SP), through the eucalyptus plantations to the transportation of timber to the Três Lagoas plant. These efforts resulted in gains in productivity, reduced costs and improved practices and processes in caring for the environment and developing surrounding commu- nities. In the industrial unit, the same pillars steer our work, aimed always at continuous improvement and enabling our production record (1,638,000 metric tons of pulp), while reducing energy and water consumption, as well as greenhouse gas (GHG) emissions. Innovatively, we also enhanced relations with customers, ensuring product quality, permanent contact with the specialized pre-sale and post-sale teams and faster deliver- ies. Here it is worth mentioning the consolidation of the operations of the Eldorado port terminal in Santos (SP), as well as the increased use of containers for exporting our pulp. Aligned with another company pil- lar, establish the permanent people valuing, we continued the process of insourcing our work force. We are certain that this is essential to strengthen organizational culture. With employees who are highly trained and valued and who think like owners, the work environment at Eldorado will be healthier and more promising for all. These factors, set forth in the com- ing pages of this sustainability re- port, were fundamental in enabling us to face a series of challenges in 2016, a year marked by the negative fluctuation of pulp prices and the appreciation of the real against the dollar. The results we have achieved so far show that our strategy is on the right track, which, considering the sector's potential for expansion, aims at maintaining and enhancing the high levels of excellence and productivity already reached, making Eldorado a bench- mark in the global pulp market. Part of this strategy is based on the Vanguarda 2.0 project, which en- tails the inauguration of our second industrial plant in Três Lagoas in 2020, with a production capacity of 2.5 million metric tons a year. In 2016, the project progressed with the conclusion of infrastructure works and launching a new timber storage patio. Eldorado's future depends on con- stant improvement on all business fronts. In addition to investments in maintaining excellence in our forestry, industrial, commercial and logistics operations, the company is determined to evolve in manage- ment and governance. The structur- ing of a dedicated compliance area is under analysis, which will further strengthen the existing processes. We are also committed to the re- sponsible use of natural resources and to generating value for employ- ees, neighboring communities and society as a whole. José Carlos Grubisich CEO
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