Value Chain

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We seek to broaden the meaning of our initiatives by promoting relationships with extended, real and relevant interfaces with our stakeholders. We embrace the future by seeking excellence in the entire production chain, from suppliers to customers, in an ethical and transparent manner, open to dialogue and focused on long-term partnerships that provide mutual benefits.

Suppliers

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39% of total purchases are from FSC® and forest products suppliers, 13% of total purchases are from external use and consumption materials and services suppliers, 12% of total purchases are from service providers, 11% of total purchases are from chemical suppliers and 7% of total purchases are from logistics suppliers. The other, corresponding to 18%, refers to acquisitions not considered critical to our business.

18.0% of purchases are from local suppliers, totaling R$ 129.6 million.

Average of 939 service providers.

883 evaluated by the Supplier Performance Index (IDF), 21.1% more than in 2017.

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The future we want

• Maintain the volume of corrugated cardboard purchased from our customers above 6 thousand tonscomparing to the total of 5.7 thousand tons in 2018.

Customers

We focus on generating and sharing value in relationships with our customers. That’s why we are dedicated to building dedicated teams of excellence and high performance. In 2018, we trained more than 100 internal leaders in theCustomer’s point of view concept, reaching 97% average satisfaction of the participants.

Customer’s point of view

This is the concept that guides our relationship. We stand side by side with our customers, so that our company is recognized as their preferred choice by offering innovative, differentiated and customized solutions that aim at cost reduction and exceptional performance.

Satisfaction rates achieved in 2018:

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Customers in the paper segment: 4.67 average satisfaction in the domestic market (-0.2% vs. 2017) and 4.40 in the external market (+ 2.3% vs. 2017).

Customers in theCorrugated Containerboard Packaging segment: 4.61 average satisfaction at the Corrugated Containerboard Packaging SC – Campina da AlegriaPlant (+4.3% vs. 2017), 4.48 at the de Corrugated Containerboard PackagingSP – Indaiatuba Plant (-1.3% vs. 2017) and 4,42 at the de Corrugated Containerboard Packaging SP – Vila Maria (-0.2% vs. 2017).

Customers in the resin segment: 4.36 average satisfaction in the domestic market (+3.3% vs. 2017)and 3.98 in the external market (-5.7% vs. 2017).

The future we want

• Strengthen expanded interface initiatives with customers

Communities

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Sustainable initiatives promoting the shared value generation, contributing to the achievement of the strategic objective towards the development of the surrounding communities during the 2018-2027 cycle.

100% of our operations have development programs in their local communities, whose goal is the development of children and youth on fronts such as education, the environment, citizenship and sports.Learn more about the projects:

Highlights:

137 employees dedicated more than 600 hours in volunteering in 2018.

R$ 224 thousand invested in social projects and donations.

More than 10,000 native seedlings produced in our forest nursery donatedenvironmental events and recovery of degraded areas.

We have obtained a Social Responsibility certificate and the Social Responsibility Trophy in the Industry category, granted by the Legislative House of Santa Catarina.

Marcelo Schumacher, employee of Paper unit SC – Campina da Alegria