14. Investments


		Joint Venture
		Ibema
Balance at December 31, 2016		873
Equity method		5,872
Other		19
Balance at December 31, 2017		6,764
Equity method		7,574
Balance at December 31, 2018		14,338

The financial information of joint venture in 2018 and 2017 are shown below:


	Joint Venture
	Ibema
	12/31/2018		12/31/2017
Equity interest %	49.9	%	49.9	%
Total assets	335,029		334,827
Total liabilities	317,572		334,009
Adjusted equity (a)	17,458		818
Net income for the year	16,415		9,790

^(a)

Adjusted for unrealized profits with parent company.

14.1. Business Combination

Suzano incurred costs related to the acquisition described in the following notes 14 i) and ii) of these assets, which were included in the statement of income for the period when incurred.

Net assets and intangibles were evaluated by Management and an independent appraisers was hired to assist in determining the fair values. The Income Approach methodology was used to determine the fair value of the assets and liabilities of Facepa and PCH Mucuri, which is based on the preparation of the future cash flow discounted to present value. This method considers that the fair value of an asset is related to the present value of the net cash flows generated by the asset in the future.

(i)Facepa

On March 1, 2018, the Company acquired direct and indirect control of 92.84% of the shares of Facepa - Fábrica de Papel da Amazônia S.A.

The net assets acquired are presented below, and the accounting numbers are very close to the estimated fair value numbers:


Facepa Fabrica de Papel da Amazônia S.A.

		3/1/2018
Asset
Current
Cash and cash equivalents		12,743
Trade accounts receivable		49,315
Inventories		20,162
Recoverable taxes		13,710
Other assets		2,011

Total current assets		97,941

Non-current
Recoverable taxes		425
Judicial deposits		1,341
Other assets		290
Investment		423
Property, plant and equipment		77,431
Intangible		211

Total non-current assets		80,121

Total assets		178,062
		3/1/2018
Liabilities
Current
Trade accounts payable		21,814
Loans and financing		5,277
Taxes payable		8,087
Advances to suppliers		595
Dividends payable		1,717
Trade accounts payable with transaction		9,762
Other liabilities		1,214

Total current liabilities		48,466

Non-Current
Loans and financing		21,399
Labor provision		1,350
Other liabilities		418

Total non-current liabilities		23,167

Total net		106,429

Total liabilities		178,062

The assets identified in the valuation, based on their estimated fair values, are presented as follows:


		Values

Net assets of Facepa		106,429
Net assets acquired of AGFA (a)		589

Intangible - Trademarks		21,598
Intangible - Customer relationship		28,505
Intangible - Non-Compete		3,374
Property, plant and equipment		49,814

Total net assets at fair value		210,310
Total consideration transferred / to be transferred		307,876
Non-controlling interest (b)		15,016

Goodwill on business combination		112,582

^(a)

As mentioned in Note 1.1 b) iii), AGFA is a non-operating company and was acquired in the Facepa transaction, considering 100% of the shares. The balance of the net assets refer to accounts receivable with Facepa and balance in bank account.

^(b)

The non-controlling interest’s was proportionate share of the acquired entity’s net identifiable assets.

As of December 31, 2018, the non-controlling interest, net of amortization and depreciation equivalent to R$ 13,807.

Goodwill, which corresponds to 36.6% of the consideration transferred, is attributable mainly to the expectation of future profitability due to the operational synergies related to the tissue segment.

If the acquisition had occurred on January 1, 2018, consolidated pro-forma revenue and loss for the period ended 30 September 2018 would have been R$ 271,413 (unaudited) and R$ 3,759 respectively (unaudited). This information regarding net revenue and loss was obtained through the aggregation of the amounts of the acquiring and acquired Companies

(ii)PCH Mucuri

On February 19, 2018, the Company acquired control of 100.00% of the shares of PCH Mucuri.

The net assets acquired are presented below, and the accounting numbers are very close to the fair value numbers:


Mucuri Energética S.A.

		2/19/2018
Asset
Current
Cash and cash equivalents		8,692
Trade accounts receivable		2,663
Recoverable taxes		111
Prepaid expenses		17

Total current assets		11,483

Non-current
Judicial deposits		1,682
Financial investments		2,472
Property, plant and equipment		110,459
Intangible		118

Total non-current assets		114,731

Total assets		126,214
		2/19/2018
Liabilities
Current
Trade accounts payable		255
Loans and financing		5,439
Taxes payable		540
Sectoral provisions		12,328
Other liabilities		73

Total current liabilities		18,635

Non-current
Loans and financing		47,808
Provision for contingency		12,050

Total non-current liabilities		59,858

Total net asset		47,721

Total liabilities		126,214

The net assets evaluated based on their fair values are shown below:


		Values

Net assets acquired		47,721

Total net assets at fair value		47,721
Total consideration transferred		48,028

Goodwill on business combination		307

If the acquisition had occurred on 1 January 2018, consolidated pro-forma revenue and loss for the period ended 30 September 2018 would have been R$ 19,040 (unaudited) and R$ 110,907 (unaudited) respectively. This information regarding net revenue and profit was obtained through the aggregation of the amounts of the acquiring and acquired companies and does not represent the actual amounts consolidated for the period.

The net revenue and profit that impacted the consolidation are R$ 15,803 and R$ 1,915, respectively.