Investor Presentaiton

14 ELDORADO With a sustainable forestry management model and a production plant focused on efficiency and quality, the company achieved a production record in 2016 and is now preparing for a new growth cycle (G4-3, G4-4, G4-5, G4-6, G4-7, G4-8, G4-9, G4-10 and G4-15) NEW INDUSTRY MODEL Founded in 2010, with the corner- stone of the industrial plant laid in Três Lagoas (Mato Grosso do Sul) on June 15, Eldorado Brasil is a joint stock corporation (business corporation) specialized in produc- ing eucalyptus pulp. In 2016, its fourth operation year, the company had its highest pro- duction and sales volumes ever, helping consolidate its position as a global benchmark in the industry. The company ended 2016 with 4,780 employees, advancing in the insourcing process initiated the previous year by hiring its own teams for the forestry, timber transportation, security and clean- ing areas, among others. Eldorado also continued to prioritize prac- tices aimed at developing and retaining employees. In 2016, the seedling nursery located in Andradina (SP) reached a quality index of 94% while reduc- ing production costs by 7%. By using company-owned and leased lands in Mato Grosso do Sul for planting eucalyptus, the company has been investing in obtaining its own forestry base as a means of driving excellence. During the year, approximately 70% of the timber processed at the Três Lagoas facil- ity came from company-owned forests certified by the Forest Stewardship Council. Another advance in the period was the 55 km reduction in the average forest radius, helping drive productivity and efficiency in forestry operations. In the industrial park, which runs clean processes for energy genera- tion, water withdrawal, effluent and waste generation, investments in technology and operational excellence contributed to the pro- duction record. The volume totaled 1,638,000 metric tons of pulp, 2.6% higher than in 2015. The company uses a flexible logis- tics model, with its own port termi- nal in Santos (SP) and the capacity to operate in terminals in other regions in the country. For exports, Eldorado has been investing in container transportation, which is more competitive than break bulk shipments. With customers in more than 50 countries, the company supplies the printing and writing, tissue (comfort and personal hygiene), packaging and special paper seg- ments. In addition to its commer- cial office in São Paulo, Eldorado has three other offices manned by specialized teams located strategi- cally in the United States, Austria and China. In 2016, sales reached 1,665,000 metric tons, an increase of 6.6% over 2015. To provide a sustainable response to the increased demand for pulp, influenced particularly by growth in consumption in the emerging countries and in the tissue and special papers segments, Eldorado is advancing in its Vanguarda 2.0 project, with a projected invest- ment of R$ 10 billion that will en- able an annual production of 2.5 million metric tons. 1.64 million metric tons, the compa- ny's record production in 2016, an increase of 2.6% ELDORADO BRASIL 2016 SUSTAINABILITY REPORT 15 Eldorado <-ALTURA 5,60mMAKA PERNIT

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