Subsequent events to the reporting date (Tables) - Business combinations - Fibria

12 Months Ended

Dec. 31, 2018

Events subsequent to the reporting date


	(amounts expressed
	in millions of Reais)
Cash consideration	27,797
Issuance of shares (Suzano)	9,438
Total consideration	37,235

Book value of Fibria's shareholders' equity	14,149
Elimination of the book value of existing goodwill, net of the deferred income taxes	(3,495)
Mandatory minimum dividends (Eliminated balance)	725
Book value of Fibria's shareholders' equity, net of goodwill	11,379

Adjustments to fair value
Inventories	2,179	(a)
Property, plant and equipment	9,445	(b)
Customer relationship	9,031	(c)
Port Assets	749	(d)
Possible contingent losses	(2,971)	(e)
Loans and Financing	(60)	(f)
Taxes recoverable	(236)	(g)
Other Net Assets and Liabilities	369	(h)
Deferred taxes, net	(547)	(i)

Total impact of fair value	17,959

Total preliminary goodwill	7,897

^(a)

Calculated considering the balance of finished products based on selling price, net of selling expenses and an accepted margin based on the results achieved in 2018.

^(b)

Determined based on the analysis of market data on comparable transactions and cost quantification, based on the estimate of replacement or replacement value of the assets.

^(c)

In order to determine the fair value adjustment in the customer portfolio, the income approach and the MPEEM (Multi Period Excess Earnings Method) method were used to measure the present value of the income that will be generated during the remaining useful life of the asset. Considering the 5-year history of Fibria's sales data and the churn rate that measures customer satisfaction and customer permanence in the portfolio, the adjustment was calculated using estimated discounted cash flows.

^(d)

Fibria has concession contracts and port assets to assist in port operations in Brazil. The fair value calculation of these assets was considered the income approach, the MPEEM (Multi Period Excess Earnings Method) method that measures the present value of the income that will be generated during the remaining useful life of the asset and method of direct cost differential.

^(e)

At the moment, in the business combination, for the calculation of the fair value of the contingencies, whose chances of loss were considered possible and remote by Fibria's Management, the amounts indicated were considered by the Management of Suzano and its external and independent advisors based on the analyzes of Fibria's external lawyers.

^(f)

Adjustment to fair value of loans and financing was calculated based on the fair value of the Bonds, based on the quotation of the security in the secondary market, and the adjustment to present value considering the market rate at the base date.

^(g)

For the measurement of the fair value of the taxes to be recovered, the amount to be recovered, brought to present value considering the expected Selic rate for the same period, was considered.

^(h)

In other net assets and liabilities, including supply contracts, accounts receivable and advances to suppliers, the income evaluation methodology, the present value and the direct cost differential were used.

⁽ⁱ⁾

Deferred income tax on fair value adjustments of assets in Veracel and Portocel.

Schedule of detailed information about Business Combination


		(expressed in
		millions of Reais)
		Fair value
Assets
Current
Cash and cash equivalents		1,795
Financial instruments		4,316
Derivative financial instruments		211
Trade accounts receivable		1,302
Inventories		6,187
Recoverable taxes		261
Other assets		213
Total Current Assets		14,285

Non-current
Financial Investments		173
Derivative Financial Instruments		455
Recoverable taxes		988
Advances to Suppliers		604
Judicial deposits		210
Deferred taxes		1,567
Other assets		227
		4,224

Investments		200
Biological assets		4,580
Property, plant and equipment		25,044
Right of Use		2,761
Intangible assets
Other intangible assets		309
Customer Portfolio		9,031
Software		21
Cultivars		143
Supplier contracts		172
Port assets		749
Added value of contracts-leases		44
Unallocated parcel-Goodwill		7,897
		50,951

Total Non-current assets		55,175

Total Asset		69,460


		(expressed in
		millions of Reais)
		Fair value
Liabilities
Current
Loans and financing		3,136
Derivative Financial Instruments		276
Lease Liabilities		349
Trade accounts payable		3,427
Payroll and charges		402
Taxes payable		129
Dividends payable		6
Other accounts payable		150
Total Current Liabilities		7,875

Non-current
Loans and financing		17,591
Lease Liabilities		2,412
Derivative Financial Instruments		126
Provision for contingencies, liquid		3,182
Deferrad taxes		558
Other accounts payable		369
Total Non-Current Liabilities		24,238

Total Liabilities		32,113

Equity
Shareholders ' equity		37,236

Non-controlling interest		111

Total equity		37,347

Total liabilities and shareholders' equity		69,460