corporativa dezembro engl
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Cor orate Presentation
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December, 2011
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Disclaimer
The information contained in this presentation may include statements which constitute forward-
looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such
forward-looking statements involve a certain degree of risk and uncertainty with respect tobusiness, financial, trend, strategy and other forecasts, and are based on assumptions, data or
methods that, although considered reasonable by the company at the time, may turn out to be
incorrect or imprecise, or may not be possible to realize. The company gives no assurance that
expectations disclosed in this presentation will be confirmed. Prospective investors are cautioned
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that any such forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from those in the forward-
looking statements, due to a variety of factors, including, but not limited to, the risks of
international business and other risks referred to in the company’s filings with the CVM and SEC.
The company does not undertake, and specifically disclaims any obligation to update any forward-
looking statements, which speak only for the date on which they are made.
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The Com an
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VCP and Aracruz Merged to Create Fibria
Shareholder StructureShareholder Structure
Votorantim Industrial
S.A. BNDESPar Free Float
29.34% 30.42(1) 40.24%(2)
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(1) Position as of November 30, 2011. BNDESPar has 21% linked to a Shareholder’s Agreement with Votorantim Industrial S.A. during the first 3 years and 11% during the following 2 years.(2) Free Float 40.17% + Treasury 0.07%
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Improved Corporate Governance
Shareholders’
Meeting
Shareholders’
Meeting
Fiscal CouncilFiscal CouncilBoard of
Directors
Board of
Directors
9 Members: 20% Independent
Chairman ≠ CEO
Board and CommitteesBoard and CommitteesImproved Corporate GovernanceImproved Corporate Governance
Listed on Novo Mercado, highest level of Corporate
Governance at BM&F Bovespa
– Only 1 class of shares →100% vo;ng rights
– 100% tag along rights (Brazilian corporate law establishes 80%)
– Board of Directors with minimum 20% independent members
– Financial Statements in International Standards – IFRS
– Adoption of Arbitration Chamber
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Executive OfficersExecutive Officers
Board Advisory
Committees(1)
Board Advisory
Committees(1)
Audit and Risks
Personnel and Remuneration
Finance
Sustainability
Listed in the most important sustainability indexes
Policies approved by the Board of Directors
– Liability and liquidity management
– Market risks
– Corporate governance
– Information disclosure
– Stock trading
(1) Members’ performance assessed by independent consulting firm
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A Winning Player
Main Figures(1)Main Figures(1)Superior Asset CombinationSuperior Asset Combination
Pulp capacity million tons 5.25
Net revenues R$ billion 6.0(1)
Total area thousand ha 1,076(2)
Planted area thousand ha 609(2)
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Port Terminal Pulp Unit
Net Debt R$ billion 9.5
Net Debt/EBITDA X 4.2
Três Lagoas
Santos
Aracruz
Portocel
Caravelas
Belmonte
Veracel
Jacareí
Source: Fibria(1) Last Twelve Months as of 3Q11.(2) As of September 30, 2011, including 50% of Veracel and excluding forest partnership areas (124 thousand ha).
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Fibria´s Units Industrial Capacity
Três Lagoas – Mato Grosso do Sul – 1.3 million t/year Jacareí – São Paulo – 1.1 million t/year
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Aracruz – Espírito Santo – 2.3 million t/year Veracel – Bahia – 1.1 million t/year
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Fibria’s Strate
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Clear Leadership Position
Market Pulp Capacity Ranking 2010(2) (000t)Market Pulp Capacity Ranking 2010(2) (000t)Industry Outlook (1)Industry Outlook (1)
Stora Enso
Sodra
CMPC
Georgia Pacific
APP
Arauco
APRIL
Fibria
Recycled Fiber
224 million t
20% 80%
57% 43%
Paper & Board
392 million t
Pulp
167 million t
Chemical
134 million t
Mechanical
33 million t
5,250
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0 1000 2000 3000 4000 5000 6000
Cenibra
Canfor
West Fraser
ENCE
IP
Mercer
Ilim
Domtar
UPM-Kymmene
Botnia/M-realSuzano
Bleached Softwood Kraft Pulp (BSKP)
Bleached Hardwood Kraft Pulp (BHKP)
Unbleached Kraft Pulp (UKP)
Mechanical
46% 54%
66% 34%
36% 64%
31%69%
Integrated Mills
85 million t
Market Pulp
46 million t
Hardwood
24 million t
Other Eucalyptus
Pulp producers:
11 million t
Softwood/Other
22 million t
Acacia/Other
8 million t
Eucalyptus
16 million t
(1) RISI and PPPC: considers 2010 demand(2) Hawkins Wright – January 2011 9
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Relevant Market Share and Competitive Position in the Cost Curve
Average Cash Cost of BHKP delivered to Europe(2) (US$/t)Average Cash Cost of BHKP delivered to Europe(2) (US$/t)Fibria’s Market Share (1)Fibria’s Market Share (1)
11%
21%
464 500 501 493423 456 426 359 316 310 273
120 70 39 4185 42 33
5769 51
55
200
400
600
800
1000
Mill Cash Delivery SG&A
Maintenance Capex
Financial Expenses
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Total Hardwood Market Pulp:
24.9 million t
49.8 million t
Total Eucalyptus Market Pulp:
15.8 million t
(1) PPPC– World Chemical Market Pulp Global 100 Report – December 2010 (World Demand by Grade)
(2) Source: Hawkins Wright as July 2011 Report and Fibria 3Q11
33%
10
10 million t
Hardwood Cash Cost (US$/t) vs Capacity ('000 t)
Capacity ('000s t)
200
300
400
500
600700
800
100
C a s h c o s t ( U S $ / t )
5000 10000 15000 20000 25000 30000
Bleached hardwood kraft
0
0
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Exchange Rates and Inflation Affect the Cost Structure
Real:90%
Canadian Dollar: 49%
Chilean Peso: 38%
Exchange Rate Currencies Evolution versus Dollar (Index: Jan’03 = 100)Exchange Rate Currencies Evolution versus Dollar (Index: Jan’03 = 100)
120
140
160
180
200
220
240
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Wood: cost of land and minimum wage growth above inflation
Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices
Chemicals / energy / water: global demand for commodities add pressure on main raw materials
Labor: cost in Brazil in dollar terms is higher than in some developed countries
Rupia: 0%
InflationInflation
60
80
100
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Global Presence
4141%%
Fibria’s Commercial StrategyFibria’s Commercial Strategy
Differentiation: Customized pulp products to specific paper grades
Sole supplier to key customers focused on eucalyptus pulp to the tissue market
The top 10 customers represent, on average, 70% of sales
Over 20 years of relationship with many of the main clients
Global contractsTissue
58%P&W
20%
Specialities
22%
End-Use – 3Q11
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Miami
Nyon Csomád
Hong Kong
São Paulo
2929%%
N.America
1010%%
L.America
Europe
2020%%
Asia
Fibria Sales Distribution Fibria OfficesSource: Fibria – 3Q11
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Focus on Premium End-Uses
Fibria'sFibria's PulpPulp
DestinationDestination
Fibria'sFibria's PulpPulp
DestinationDestination
20102010--20252025
DemandDemand Growth (CAGR)Growth (CAGR)
20102010--20252025
DemandDemand Growth (CAGR)Growth (CAGR)
Market PulpMarket Pulp
DestinationDestination
Market PulpMarket Pulp
DestinationDestination
24%
43%
4%
1%
58%
20%
Tissue
P&W
13Source: Fibria 3Q11 Earnings Results, PPPC, RISI and Fibria
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11%
8%
14%
3%
5%
-0.1%
3%22%
Others
Containerboard
Newsprint
Specialties
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Financial Hi hli hts
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3Q11 Performance
3Q11 Results
3Q11 2Q11 3Q10 3Q11 vs2Q11
3Q11 vs3Q10
Pulp Production (000t) 1,296 1,271 1,293 2% 0%
Pulp Sales (000t) 1,244 1,230 1,160 1% 7%
Net Revenue (R$ million) 1,449 1,459 1,581 -1% -8%
Pro Forma EBITDA1 (R$ million) 476 490 648 -3% -27%
EBITDA Margin (%) 33% 34% 41% -1 p.p. -8 p.p.
Financial Results (R$ million) (2,015) 277 248 - -
46%
29%
14%
11%
2Q11
Euro e North America
41%
27%
20%
12%
3Q10
Sales Mix
41%
29%
20%
10%
3Q11
15
648
490 476
3Q10 2Q11 3Q11
41%
34% 33%
Net Income (Loss) (R$ million) (1,114) 215 303 - -
Cash Cost (R$/t)
435
458446
459
513
481
3Q10 2Q11 3Q11
w/o downtime with downtime
Asia Others
Pro Forma EBITDA1 (R$ million) and EBITDA Margin (%)
3Q11 vs 3Q10
(w/o downtime):
+2.5%
Inflation: +7.3%
1 Excludes Conpacel and KSR results in 3Q10
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Market Context Evolution
1,80
1,90
2,00
May/2011:
Indebtedness and Liquidity
Management Policy Approval1
3Q11 FX (R$/US$):
Average: R$ 1.6360
Closing: R$1.8544
Exchange Rate (R$/US$)
Sep/2011:
Macroeconomic Worsening
3Q11 Dollar Appreciation : 19%
FOEX BHKP Europe: US$789/t
Sep
Average FX:
R$1.7399
1.8544
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1,40
1,50
1,60
1,70FX R US : R 1.6111
FOEX BHKP Europe: US$876/t
1 Indebtedness and Liquidity Management Policy: 2.0 and 2.5x Net Debt/EBITDA target, leverage cap: 3.5x during growth cycle.Policy available on: www.fibria.com.br/ir
Jul-Aug
Average FX:
R$1.5809
1.5345
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3,9
3,2
4,2
Debt
Short Term Debt (%) Net Debt/ EBITDA(2)(x)
19%
14%
9%
Key Indicators
(R$ million) 3Q11 2Q11 3Q10 3Q11 vs2Q11
3Q11 vs3Q10
Gross Debt 11,314 10,448 12,296 8% -8%
Cash1 1,772 2,496 2,184 -29% -19%
Net Debt 9,542 7,952 10,112 20% -6%
Debt
17
3Q10 2Q11 3Q11
17
3Q10 2Q11 3Q11
3181,000
599926 689 635
7,147
4Q11 2012 2013 2014 2015 2016 2017-2021
Debt Amortization Schedule (R$ million) Debt by Currency and Instrument (%)
Short term debt: 9%
Cash: 1.7x short term
debt
47%
25%
15%4%
9%
Debt by Instrument
Bond Pre payment
BNDES NCEOthers
8%
92%
Debt by Currency
Local currency
Foreign currency
1Includes the hedge fair value(2) LTM EBITDA excludes the results from Conpacel and KSR
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Liability Management
15.7
13.2 13.1
Promises delivered, now more ahead to goPromises delivered, now more ahead to go
NetDebt(R$ bi)
Net Debt/EBITDA (x)
7.8
7.2 7.26.5
5.6
4.73.9
3.6
3.2
4.2
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Fibria’20 Bond: US$ 750MM
7.5% 10NC5
Exchange Bond Fibria’19: 94%
to Fibria’20
Operational cash generation
Derivatives’ debt settlement:
US$ 2.6bn
Debt: lower cost longer tenor
11.0 10.9 10.810.2
9.9
7.9 7.9
9.5
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Sale of Guaíba: US$ 1.4bn
Fibria’19 Bond: US$ 1.0bn
9.25% 10NC5
Export pre-payment facilities:
US$ 1.175bn
Sale of Conpacel/KSR: R$ 1.5bn
Fibria’21 Bond Fibria’21: US$ 750MM 6.75% 10NC5
US$ 500MM Revolving facility + US$ 300MM EPP
Covenants: 4.0x YE2011
Tight cost and Capex control
2011 Capex reduced by R$ 201 million
Sale of Piracicaba: US$ 313MM
Commitment to investmentCommitment to investment
gradegrade levellevel
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Investor Relations
E-mail: [email protected]
Phone: +55 (11) 2138-4565
Website: www.fibria.com.br/ir