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Investor Presentaiton

BUSINESS STAGES 1 Seedling nursery Located in the city of Andradina (SP), the Eldorado Brasil forestry nursery occupies a built area of 159,000 m² and has a produc- tion capacity of approximately 28 million seedlings a year. Eldorado also acquires seedlings from the market. While maintaining high levels of quality and efficiency, the nursery has also been steadily re- ducing production costs. The target for 2017 is to reach a production cost 8.5% lower than the market price. 2 044 Planting Eldorado ended 2016 with 239,000 hectares of eucalyptus forest in Mato Grosso do Sul, with 40,000 hectares planted in 2016. In a differentiated format, the company combines its own plant- ing areas with areas leased from partners on 14-year contracts, the equivalent to two production cycles. 3 4 Timber transportation In 2016, the timber transportation sector was totally insourced. An average of 5.6 million m3 of tim- ber is transported to the storage patio at the Três Lagoas plant per year. During the year, the aver- age distance between the planted areas and the industrial complex was around 274 km, optimizing costs and reducing environmental impacts. 5 Industrial process In the Três Lagoas pulp mill, the wood chips are cooked, producing an unbleached pulp. This brown- stock then undergoes a specific bleaching chemical treatment. After this, the pulp is dried and cut into sheets, which are stacked in bales and units. In 2016, the plant reached a production record of 1,638,000 metric tons. 6 Harvest With a highly trained team and state-of-the-art equipment, the harvest area fells the timber and removes the bark and branches from the trees for use as soil fertilizer. Already highly mecha- nized, a project in partnership with Eldorado suppliers aims at further elevating the level of excellence in the harvest process and reducing costs for the company. Logistics In the last stage of the process, the units are transported to the company-owned port terminal in Santos (SP), inaugurated in 2015, or to other ports around the country. With 90% of production destined for the overseas market, Eldorado pulp is exported to more than 50 countries either in bulk shipments or in containers.
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