fibria_dez11

8/3/2019 Fibria_dez11

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Corporate Presentation

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 to

business, 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 cautionedthat 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 companys 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.

2


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The Company


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VCP and Aracruz Merged to Create Fibria

Shareholder Structure

Votorantim Industrial

S.A.BNDESPar Free Float

29.34% 30.42(1) 40.24%(2)

(1) Position as of October 31, 2011. BNDESPar has 21% linked to a Shareholders 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% 4

Bovespa

60%

NYSE

40%

Average Daily Trading

Volume (LTM):

US$ 45 million

Level III


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Improved Corporate Governance

Shareholders

Meeting

Executive Officers

Board Advisory

Committees(1)

Fiscal CouncilBoard of

Directors

9 Members: 20% Independent

Chairman CEO

Audit and Risks

Personnel and Remuneration

Finance

Sustainability

Board and CommitteesImproved Corporate Governance

Listed on Novo Mercado, highest level of Corporate

Governance at BM&F Bovespa

Only 1 class of shares 100% voting 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

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

5


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A Winning Player

Port Terminal Pulp Unit

Main FiguresSuperior Asset Combination

Pulp capacity million tons 5.25

Net revenues(1) R$ billion 6.0

Total area(2) thousand ha 1,076

Planting area(2) thousand ha 609

Net Debt(3) R$ billion 9.5

Net Debt/EBITDA(3) x 4.2

Trs Lagoas

Santos

Aracruz

Portocel

Caravelas

Belmonte

Veracel

Jacare

Source: Fibria(1) Last Twelve Months as of September 30, 2011.

(2) As of September 30, 2011, including 50% of Veracel and excluding forest partnership areas (124 thousand ha).(3) As of September 30, 2011.


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Modern Plants Lead to a Competitive Position in the Cost Curve

7

Trs Lagoas Mato Grosso do Sul 1.3 million t/year JacareSo Paulo 1.1 million t/year

AracruzEsprito Santo 2.3 million t/year Veracel(1)Bahia 1.1 million t/year

(1) Veracel is a jointure venture between Fibria (50%) and StoraEnso (50%).


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Fibrias Strategy


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Clear Leadership Position

Market Pulp Capacity Ranking 2010(2) (000t)Industry Outlook (1)

0 1000 2000 3000 4000 5000 6000

Cenibra

Canfor

West Fraser

ENCEIP

Mercer

Ilim

Domtar

UPM-Kymmene

Botnia/M-real

Suzano

WeyerhaeuserStora Enso

Sodra

CMPC

Georgia Pacific

APP

Arauco

APRIL

Fibria

Bleached Softwood Kraft Pulp (BSKP)

Bleached Hardwood Kraft Pulp (BHKP)

Unbleached Kraft Pulp (UKP)

Mechanical

Recycled Fiber

224 million t

46% 54%

66%

20% 80%

57% 43%

34%

36% 64%

31%69%

Paper & Board

392 million t

Pulp

167 million t

Chemical

134 million t

Mechanical

33 million t

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 capacity(2) Hawkins Wright January 2011 9

5,250


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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)Fibrias Market Share (1)

11%

Total Hardwood Market Pulp:

24.9 million t

Total Market Pulp:

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 2Q11

21%

33%

10

10 million t

Hardwood Cash Cost (US$/t) vs Capacity ('000 t)

Capacity ('000s t)

200

300

400

500

600

700

800

100

Cashcost(US$/t)

5000 10000 15000 20000 25000 30000

Bleached hardwood kraft

0

464 500 501 493

423456

426 359 316 310 288

120 70 39 4185 42 33

5769 51 55

0

200

400

600

800

1000

Mill Cash Delivery SG&AMaintenance Capex

Financial Expenses


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Pulp Price

Historical Pulp Price FOEX BHKP Europe (R$/t)Historical Pulp Price FOEX BHKP Europe (US$/t)

0

100

200

300

400

500

600

700

800

900

1.000

May-98

Nov-98

May-99

Nov-99

May-00

Nov-00

May-01

Nov-01

May-02

Nov-02

May-03

Nov-03

May-04

Nov-04

May-05

Nov-05

May-06

Nov-06

May-07

Nov-07

May-08

Nov-08

May-09

Nov-09

May-10

Nov-10

May-11

Nov-11

4 months

5 months

3 months

3 months

US$673/t

Nov 22

0

500

1.000

1.500

2.000

2.500

May-98

Nov-98

May-99

Nov-99

May-00

Nov-00

May-01

Nov-01

May-02

Nov-02

May-03

Nov-03

May-04

Nov-04

May-05

Nov-05

May-06

Nov-06

May-07

Nov-07

May-08

Nov-08

May-09

Nov-09

May-10

Nov-10

May-11

Nov-11

Average:

R$1,284/t


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Exchange Rates and Inflation Affect the Cost Structure

Global producers have been impacted by:

Wood:cost of land and minimum wage growth above inflation

Chemicals / energy / water: global demand for commodities add pressure on main raw materials

On top of that, Brazilian producers have also been impacted by:

Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil pricesLabor: cost in Brazil in dollar terms is higher than in some developed countries

Real: 91%

Canadian Dollar: 49%

Rupia: -2%

Chilean Peso: 37%

Exchange Rate Currencies Evolution versus Dollar (Jan03 = 100)

Cost Structure

50

70

90

110

130

150

170

190

210

230

jan-03

mar-03

mai-03

jul-03

set-03

nov-03

jan-04

mar-04

mai-04

jul-04

set-04

nov-04

jan-05

mar-05

mai-05

jul-05

set-05

nov-05

jan-06

mar-06

mai-06

jul-06

set-06

nov-06

jan-07

mar-07

mai-07

jul-07

set-07

nov-07

jan-08

mar-08

mai-08

jul-08

set-08

nov-08

jan-09

mar-09

mai-09

jul-09

set-09

nov-09

jan-10

mar-10

mai-10

jul-10

set-10

nov-10

jan-11

mar-11

mai-11

jul-11

set-11

nov-11


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Global Presence

Miami

Nyon Csomd

Hong Kong

So Paulo

29%N.America

10%L.America

41%Europe

20%Asia

Fibria Sales Distribution Fibria OfficesSource: Fibria 3Q11

Fibrias Commercial Strategy

Differentiation: Customized pulp products to specific paper gradesSole 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%

Speciali

ties

22%

End Use 3Q11


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Focus on Premium End-Uses

Source: Fibria 3Q11 Earnings Results, PPPC, RISI and F ibria

Fibria's PulpDestination

2010-2025Demand Growth (CAGR)

14

Market PulpDestination

22%

58%

20%

Others

Containerboard

Newsprint

Specialities

Tissue

Printing&Writing

11%

8%

14%

24%

43%

3%

5%

0%

3%

4%

1%


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Innovation and Competitiveness


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Enhanced Forestry Techniques

Current Elite Clone

2 years old

New Elite Clone

2 years old


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Forest Competitiveness

45

25 25 25

15

8

5

Brazil

(eucalyptus)

Indonesia S.Africa Chile Portugal /

Spain

USA / Canada Finland /

Sweden

6 years7 - 8

years

7 - 15years

10 - 12years

12 - 15

years

15 - 25

years

30 - 40

years

Source: ABRAF, STCP, Poyry and Fibria.Note: Pulp trees differ depending on the country: Indonesia acacia, S.Africa tropical and temperate eucalyptus, Chile temperate eucalyptus, Portugal/Spain temperate eucalyptus,

USA/Canada aspen, Finland/Sweden betula.

Harvesting Cycle (avg. years) Yield (m3/ha/year)

6

8

10

11

14

70's 80's 90's 00's Next decade

(expected)

Air Dry Ton / ha / year

Genetic and Technological Development at Fibria Fibria : Forest Competitiveness


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State of the Art Facilities

18Source: PYRY

40 30 20 10

500

1,000

1,500

2,000

2,500

Technical age of the equipment (years)

Fibria (Veracel 50%)

Fibria (Jacare)

Fibria (Trs Lagoas)

Fibria (Aracruz)

Other Brazilian pulp mills

Indonesia

ChinaSouth Africa

ChileFrance/Spain

FinlandPortugalCanada

SwedenUSA

JapanRussia

Average mill capacity (000 tons)


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Pulp and Paper Market


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20

20

25

30

35

40

45

50

55

300

400

500

600

700

800

900

1000

Jan-08

A

pr-08

Jul-08

O

ct-08

Jan-09

A

pr-09

Jul-09

O

ct-09

Jan-10

A

pr-10

Jul-10

O

ct-10

Jan-11

A

pr-11

Jul-11

O

ct-11

Inventories FOEX BHKP Europe (US$)

Industry Outlook

World Printing&Writing paper shipments to capacityWorld chemical market pulp shipments to capacity

World pulp producers' average days of supply

90%

92%

90%

86%

96%

89%

95%

87%

96%

88%

83%

98%

87%

92%

102%

87%

92%

101%

88%87%

94%

82%

85%

100%

81%

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Fev-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

88%88%

84%

82%

88%87%

88%

86%

90%

85%

87%

91%91%

88%88%

82%

85%87%

85%85%

88%

84%

87%

90%

86%

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Fev-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Source: PPPC World 20 Total Chemical Market Pulp Source: PPPC Global 100 World Printing & Writing Report

Source: PPPC World 20

10

20

30

40

50

Out-06

Apr-07

Oct-07

Apr-08

Oct-08

Apr-09

Oct-09

Abr-10

Oct-10

Apr-11

Oct-11

days

39

20

Announced downtimes:

- Sodra (Sweden)

- UPM (Finland)

- Terrace Bay (Canada)

Producers days of supply x FOEX BHKP Europe (US$)


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Industry Outlook

China: Eucalyptus pulp shipments ('000 t)Market pulp: world demand growth (%)

Announced DowntimesEuropean Price (BHKP) x Commodity Index (CRB)

4%

-3% -3% -2%

4%

33%

Total North America Europe Latin America Japan China

10M2011 x 10M2010

Source: PPPC World 20 Chemical Market Pulp

Source: CRB (Commodity Research Bureau) Bloomberg | BHKP: FOEX

238

307

458

368

300

318310323

256233

299

247

153

242229

152

202 219

163

100

198

125

224

311

198

141

332

152138

222

161

232

283

200

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Average

305 ktons

Average

193 ktons

Average

206 ktons

EuropeanPrice(US$/t)

BH

KP

CommodityPriceIndex(CRB)

US$700/t

US$920/t

300

400

500

600

700

800

900

1.000

250

350

450

550

650

Nov-08 May-09 Nov-09 May-10 Nov-10 May-11 Nov-11

CRB BHKP List Price 21

Source: PPPC World 20 Chemical Market Pulp

Source: RISI

Nov 21, 2011: Sodra announces market driven downtime in

response to weakened demand for pulp.

Nov 22, 2011: UPM is preparing for downtime at several of

its Finnish paper plants. The firm will start negotiations

regarding possible temporary layoffs in 2012.

Nov 24, 2011: Terrace Bay Pulp (Canada) plans extended

shut at NBSK mill for explosion repairs, project work;

downtime to shed 40,000-80,000 tons.

Dec 07, 2011: APP to take downtime at Guangxi mill cutting

pulp supply by 30,000 tons


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Balanced Market Scenario for the Next 2 years

'000 tons'000 tons

BSKP1Supply 23.5 23.8 25.2 25.5 3.5%

Demand 21.4 22.3 23.0 23.0 1.6%

Ratio 91% 93% 92% 90%

BHKP1

Supply 28.1 28.6 29.9 30.5 3.3%

Demand 24.8 25.0 26.0 26.4 2.8%

Ratio 88% 87% 87% 87%

BEKP1Supply 17.0 17.6 18.9 19.8 6.1%Demand 15.9 15.9 16.6 17.5 4.9%

Ratio 93% 90% 88% 88%

2011 2012 2010/201220102009

% Annual growthForecast

Million tons

1

BSKP: Bleached Softwood Kraft Pulp | BHKP Bleached Hardwood Kraft Pulp | BEKP: Bleached Eucalyptus Kraft PulpSource: PPPC Special Research Note Nov 2011 and Fibria 22


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Financial Highlights


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3Q11 Performance

648

490 476

3Q10 2Q11 3Q11

41%

34% 33%

3Q11 Results

3Q11 2Q11 3Q10 3Q11 vs2Q113Q11 vs

3Q10

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 - -

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

46%

29%

14%

11%

2Q11

Europe North America

Asia Others

41%

27%

20%

12%

3Q10

Pro Forma EBITDA1 (R$ million) and EBITDA Margin (%)

3Q11 vs 3Q10

(w/o downtime):

+2.5%

Inflation: +7.3%

Sales Mix

41%

29%

20%

10%

3Q11

1 Excludes Conpacel and KSR results in 3Q10


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Market Context Evolution

1,40

1,50

1,60

1,70

1,80

1,90

2,00

May/2011:

Indebtedness and Liquidity

Management Policy Approval

1

FX (R$/US$): R$1.6111

FOEX BHKP Europe: US$876/t

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

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

Sep

Average FX:

R$1.7399

1.8544

1.5345


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Capex

2011 Capex Reduction

26

(R$ million) 2011E Current

Industrial Expansion 68

Forest Expansion 243

Subtotal Expansion 311

Safety/Environment 75

Forestry Renewal 602

Maintenance, IT, R&D and Modernization 356

Subtotal Maintenance 1,033

50% Veracel/Conpacel 96

Total Fibria 1,440 R$ 201 million reduction vs

original budget


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3,9

3,2

4,2

3Q10 2Q11 3Q11

Debt

Short Term Debt (%) Net Debt/ EBITDA2 (x)

27

19%

14%

9%

3Q10 2Q11 3Q11

166 711 302 571 324 415

6,718

152 299 297 355 365 220 429

4Q11 2012 2013 2014 2015 2016 2017-2021

Local Currency Foreign Currency

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 NCE

Others

8%

92%

Debt by Currency

Local currency

Foreign currency

Key Indicators

(R$ million) 3Q11 2Q11 3Q103Q11 vs

2Q113Q11 vs

3Q10

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%

1Includes the fair value of financial instruments of (R$ 332 million) as of Sep/2011.

Excluding this effect, the cash position was R$2,104 million.

Debt

2 LTM EBITDA excludes the results from Conpacel and KSR

318 1,000 599926 689 635

7,147


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Fibria in Summary

HIGHER SHAREHOLDERRETURNS

Larger scale

Global and strong

marketpositioning

Low coststructure

Solid financial

performanceSustainability

ROI

above WACC

Innovation Growth


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Investor Relations

E-mail: [email protected]

Phone: +55 (11) 2138-4565

Website: www.fibria.com.br/ir
mailto:[email protected]://www.fibria.com.br/irhttp://www.fibria.com.br/irmailto:[email protected]


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Backup


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China

China P&W Capacity Changes 2011-2013(3)Chinas Hardwood Imports ofBHKP by Country(1)

Company / Mill Effective Date '000 t

Shandong Huatai Paper Jan 2011 800

Nine Dragons Jul 2011 450

Zhumadian Baiyun Paper Apr 2011 250

China Metalurgical MeiliPaper Mar 2011 300

Sun Paper Ju 2011 350

Shandong Chenming Aug 2011 800

Shandong Chenming Q3 2011 450

April Q4 2011 450

Others 2011 810

Guangxi Tianyi Paper Mar 2012 130

Hengfeng Paper Sep 2012 125

April Q1 2013 450

Chengton Group 2013 600

Total P&W capacity changes in China 6,200

2011 = 4.7 mt

2012/2013 = 1.5mt

5,0

2,3

1,1 1,0

0,4 0,2 0,0

5,3

2,01,6

1,10,3 0,3

0,0

1,0

2,0

3,0

4,0

5,0

6,0

BHKP

Total

Latin

America

Others* Indonesia USA Canada Western

Europe

2010 10M 2011

* includes Russia, China, Thailand and New Zealand

China's Share of Market Pulp(2)

9% 11%13%

16%

26%

17%18%

7% 9%10%

12%

22%

16% 18%10%

10%

12%14%

21%

17%21%

0

2.000

4.000

6.000

8.000

10.000

2005 2006 2007 2008 2009 2010 10M2011

Eucaplyptus Hardwood Total (1) PPPC Chinese Market Pulp Demand(2) PPPC World 20 October 2011

(3) Source: TerraChoice Monthly Report Aug 2011

(Million tons)


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Tissue Market

World Tissue Consumption, 1991-2010(1)Per Capita Consumption of Tissue by Region, 2010 (1)

23,5

15,614,6

11,2

5,6 4,43,6 3,0

0,7 0,5

0

5

10

15

20

25

N.

America

W.

Europe

Japan

Oceania

L.America

E.

Europe

China

N&MEast

AsiaFarEast

Africa

(1) RISI

Huge potential

growth

0

5

10

15

20

25

30

35

1991 1996 2001 2006 2009 2010

N.America W.Europe E.Europe L.America NME

Japan China Asia FE Oceania Africa

Average

Growth Rate

+3.8%a.a.

Kg/capita Million tons


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Historical Ratings

Aracruz VCP (2007-08) / Fibria (2009 on)

2005 BBB- N.A.

2006 BBB- N.A.

2007 BBB- BBB

2008 BBB BBB

2009 BB BB

2010 N.A. BB

2011 N.A. BB

Last Report Date: November 2011 / Rating: BB / Outlook: Stable

Aracruz VCP (2007-08) / Fibria (2009 on)

2005 Baa3 N.A.

2006 Baa3 N.A.

2007 Baa2 Baa3

2008 Baa2 Baa3

2009 Ba2 Ba1

2010 N.A. Ba1

2011 N.A. Ba1

Last Report Date: February 2011 / Rating: Ba1 / Outlook: Positive

MoodysS&P


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Market Perception

Fibria2021 Rating

Moodys Ba1/positive

Fitch BB+/stable

S&P BB/ t bl

5,2

5,7

6,2

6,7

7,2

7,7

8,2

8,7

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Fibria'2021

80bps

Yield (%)

5,2

5,7

6,2

6,7

7,2

7,7

8,2

8,7

9,2

9,7

Oc

t-09

No

v-09

De

c-09

Jan-10

Feb-10

Ma

r-10

Ma

y-10

Jun-10

Ju

l-10

Au

g-10

Sep-10

Oc

t-10

No

v-10

De

c-10

Jan-11

Feb-11

Ma

r-11

Ap

r-11

Ma

y-11

Jun-11

Ju

l-11

Au

g-11

Sep-11

Oc

t-11

No

v-11

Fibria'2019 Fibria'2020 Fibria'2021

fibria_dez11

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