In 2Q19, capital investments totaled R$1,377 million, 11% lower than in 2Q18, mainly due to lower spending on expansion and modernization. Compared to 1Q19, the reduction was mostly due to lower expenses with forest maintenance. Investments in Land and Forests totaled R$387 million and aimed at capturing gains from current operations, as well as creating alternatives for business growth.

For 2019, the Company has revised the total estimated Capex from R$ 6.4 billion to R$ 5.9 billion. The reduction in the guidance reflects the same expenditures with forestry resulting from the lower volume of harvested wood due to lower production volume in 2019, as well as the Company’s financial discipline to manage its leverage by reducing R$500 million in the lines of Sustaining and Land and Forestry capex.

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