SWEDISH-BRAZILIAN CHAMBER OF COMMERCE Fact Pack Pulp & Paper sector in Brazil Swedish Trade Council Brazil April, 2005

Rio de Janeiro Porto Alegre Curitiba São Paulo Belo Horizonte Recife Fortaleza Belém Manaus Brasilia Brazil – Basic Facts Political system: President : States: Largest cities: Exchange rates : (Jan2005) Life expectancy: Urbanization: Democracy Luis Inácio Lula da Silva 26: Brasília (capital), São Paulo, Rio de Janeiro, Curitiba, Porto Alegre, Belo Horizonte USD 1.00 = R$ 2.90 SEK 1.00 = R$ years 82% Brazil Km 2 - 5th largest country in the world in area (19 times larger than Sweden) million inhabitants (5th after China, India, USA and Indonesia) - 40 million consumers with Swedish purchasing power or stronger - 47% of total GDP in South-America - The Swedish-Brazilian companies invested over USD 3.3 billion over the last five years and plan investments for the coming five-year period of more than USD 3.1 billion

Market Overview - Brazil Source: BRACELPA (Brazilian Association of Pulp and Paper) Estimate: Bracelpa Preliminary Report pulp & paper production units - located in 16 federal states The sector employs around persons Pulp production increased 3,6% last year Brazil is the 7 th largest pulp producer in the world: 9.4 million tons in 2004 Brazil is the largest global producer and exporter of eucalyptus pulp The industry exported pulp and paper at a value of 3.1 billion USD and imported for 0.6 billion USD in 2004 The industry uses only planted raw material: eucalyptus and pine 1.5 million hectares of planted forest - and the same area of preserved forest 3 million tons of paper are recycled per year 220 pulp & paper production units - located in 16 federal states The sector employs around persons Pulp production increased 3,6% last year Brazil is the 7 th largest pulp producer in the world: 9.4 million tons in 2004 Brazil is the largest global producer and exporter of eucalyptus pulp The industry exported pulp and paper at a value of 3.1 billion USD and imported for 0.6 billion USD in 2004 The industry uses only planted raw material: eucalyptus and pine 1.5 million hectares of planted forest - and the same area of preserved forest 3 million tons of paper are recycled per year

Numbers in 1000 (T) The paper production estimate is more than 8.0 million tons in 2004 Source: BRACELPA (Brazilian Association of Pulp and Paper) Estimate: Bracelpa Preliminary Report Production Imports ExportsApparent Consumption Consumption per capita 2003 : ~ 38,2 kg Consumption per capita 2003 : ~ 38,2 kg

Brazils pulp sector is strong and a growth of 3,6% is expected in 2004, reaching more than 9.3 million tons. Numbers in 1000 (T) Production Imports ExportsApparent Consumption Source: BRACELPA (Brazilian Association of Pulp and Paper) Estimate: Bracelpa Preliminary Report 2004

SWEDISH-BRAZILIAN CHAMBER OF COMMERCE Source: BRACELPA (Brazilian Association of Pulp and Paper) Sector Investment Program Brazilian Pulp & Paper Double the export of pulp Maintain the Brazilian share of the international paper market Fully supply the expanded domestic demand and reduce imports of paper Crucial condition: assurance of raw material supplies, and respecting environmental and social values Double the export of pulp Maintain the Brazilian share of the international paper market Fully supply the expanded domestic demand and reduce imports of paper Crucial condition: assurance of raw material supplies, and respecting environmental and social values

SWEDISH-BRAZILIAN CHAMBER OF COMMERCE Source: BRACELPA (Brazilian Association of Pulp and Paper) Sector Investment Program Brazilian Pulp & Paper 2003 – 2012 (continued) Total Investment Trade Balance Additional tax generation New job´s generated (1000) New projects/ Investment plans Billion USD