corportiva set2011 eng

8/4/2019 Corportiva Set2011 ENG

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Corporate Presentation

September, 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

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 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.

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The Company


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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)

(1) Position as of August 31, 2011. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years and 10.9% during the following 2 years.(2) Free Float 40.17% + Treasury 0.07%

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Improved Corporate Governance

Shareholders

Meeting

Shareholders

Meeting

Executive OfficersExecutive Officers

Board Advisory

Committees(1)Board Advisory

Committees(1)

Fiscal CouncilFiscal CouncilBoard of

Directors

Board of

Directors

9 Members: 20% Independent

Chairman CEO

Audit and Risks

Personnel and Remuneration

Finance

Sustainability

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% vong 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

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A Winning Player

Port Terminal Pulp Unit Paper Unit

Main Figures(1)Main Figures(1)Superior Asset CombinationSuperior Asset Combination

Pulp capacity million tons 5.25

Paper capacity million tons 0.16

Net revenues R$ billion 6.2

Total area thousand ha 1,062(2)

Planted area thousand ha 599(2)

Net Debt R$ billion 7.9

Net Debt/EBITDA X 3.2Trs Lagoas

Santos

Piracicaba

Aracruz

Portocel

Caravelas

Belmonte

Veracel

Jacare

Source: Fibria(1) Last Twelve Months as of 2Q11.(2) As of June 30, 2011, including 50% of Veracel and excluding forest partnership areas (124 thousand ha).


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Modern Plants Lead to a Competitive Position in the Cost Curve

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

Aracruz Esprito Santo 2.3 million t/year Veracel Bahia 1.1 million t/year


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Fibrias Strategy


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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)

0 1000 2000 3000 4000 5000 6000

Cenibra

Canfor

West Fraser

ENCE

IP

Mercer

Ilim

Domtar

UPM-Kymmene

Botnia/M-realSuzano

Weyerhaeuser

Stora 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 demand(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(2) (US$/t)Average Cash Cost of BHKP(2) (US$/t)Fibrias Market Share (1)Fibrias Market Share (1)

11%

Total Hardwood Market Pulp:

25 million t

Total Market Pulp:

48.5 million t

Total Eucalyptus Market Pulp:

17 million t

(1) PPPC Global 100: Market Share estimated considering 2010 demand

(2) Source: Hawkins Wright as of April 2011 and Fibria 1Q11

22%

31%

482 495 485424 462 445 417

306 279 276 267

104 54 5595 47 52

37

65 73 53 55

586549 540 519 509

497 454

371 352 329 322

Mill Cash Cost Delivery Cost

10

10 million t

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

Capacity ('000s t)

200

300

400

500

600700

800

100

Cashcost(US$/t)

5000 10000 15000 20000 25000 30000

Bleached hardwood kraft

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Exchange Rates and Inflation Affect the Cost Structure

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

Real:116%

Canadian Dollar: 59%

Chilean Peso: 52%

Rupia: 4%

Exchange Rate Currencies Evolution versus Dollar (Index: Jan03 = 100)Exchange Rate Currencies Evolution versus Dollar (Index: Jan03 = 100)

InflationInflation

50

70

90

110

130

150

170

190

210

230


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Global Presence

Miami

Nyon Csomd

Hong Kong

So Paulo

29%

N.America

11%L.America

46%Europe

14%Asia

Fibria Sales Distribution Fibria OfficesSource: Fibria 2Q11

Fibrias Commercial StrategyFibrias 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

23%

Speciali

ties

19%

End-Use 2Q11


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Focus on Premium End-Uses

Source: Fibria 2Q11 Earnings Results, PPPC, RISI and Fibria

Fibria's Pulp

Destination

Fibria's Pulp

Destination

2010-2025

Demand Growth (CAGR)

2010-2025

Demand Growth (CAGR)

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Market Pulp

Destination

Market Pulp

Destination


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Financial Highlights


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46%

20%

25%

9%

1Q11

Europe North America Asia Brazil/Others

2Q11 Performance

Pulp Sales MixPulp Sales MixKey IndicatorsKey Indicators

EBITDA (R$ million) and EBITDA Margin (%)EBITDA (R$ million) and EBITDA Margin (%)Cash Cost without downtimes(R$/t)Cash Cost without downtimes(R$/t)

2Q11 1Q11 2Q10 2Q11 vs1Q112Q11 vs

2Q10

Pulp Production (000 t) 1,271 1,319 1,164 -4% 9%

Pulp Sales (000 t) 1,230 1,259 1,214 -2% 1%

Paper Production (000 t) 31 29 31 9% 2%

Paper Sales (000 t) 31 36 29 -15% 5%

Net Revenue (R$ million) 1,459 1,548 1,628 -6% -10%

Pro Forma EBITDA (R$ million) 490 607 672 -19% -27%

EBITDA Margin (%) 34% 39% 41% -5 p.p. -7 p.p.

Financial Income (R$ million) 277 11 (310) - -Net Income (R$ million) 215 389 130 -45% 66%

46%

29%

14%

11%

2Q11

38%

27%

24%

11%

2Q10

448 446

462

2Q10 1Q11 2Q11

672

607

490

2Q10 1Q11 2Q11

41% 39%34%

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Competitiveness Project

Actions for increased operating efficiencyActions for increased operating efficiency

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1,164

1,271

2Q10 2Q11

Pulp Production ('000 t)

448

462

2Q10 2Q11

Cash Cost without downtimes (R$/t)

+3% (lower than

Brazilian inflation:

+6.5%)

Production gain:+9%

Action 2011 2012 2013

2011 Capex reduction of R$201 million

New bleaching line of Plant A Aracruz Unit

Higher operating stability

Optimization of wood transportation by barges

Aracruz Unit

Energy Matrix Jacare Unit

Global Sourcing

Rail Extension Trs Lagoas Unit

Long-term international logistics contract (STX)

Future Forestry Project


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Debt

Debt IndicatorsDebt Indicators

(R$

million)2Q11 1Q11 2Q10

2Q11 vs

1Q11

2Q11 vs

2Q10

Gross Debt 10,448 10,256 13,209 2% -21%

Cash(1) 2,496 2,297 2,364 9% 6%

Net Debt 7,952 7,959 10,846 0% -27%

16%

12%14%

2Q10 1Q11 2Q11

Short Term Debt (%) Net Debt/ EBITDA(2)(x)

4.7

2.9

3.2

2Q10 1Q11 2Q11

Debt by currency and instrument (%)Debt by currency and instrument (%)Debt Amortization Schedule (R$ billion)Debt Amortization Schedule (R$ billion)

1.9

0.91.3

1.8

1.2

5.1

1.0 0.80.6

0.8 0.6

6.6

2011 2012 2013 2014 2015 2016-2021

Jun/10 Jun/2011

(2) LTM EBITDA includes the results from Conpacel and KSR

Short term debt:

14% of totaldebt 16%

84%

Debt by Currency

Domestic Foreign

44%

16%

6%

23%4%

7%

Debt by Instrument

Bonds BNDES

Former Aracruz Shareholders Pre-PaymentNCE Others

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(1) Includes the fair value of the derivatives.


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Fibria20 Bond: US$ 750MM 7.5%

10NC5

Exchange Bond Fibria19: 94% to

Fibria20

Operational cash generation

Derivatives debt settlement:

US$ 2.6bn Debt: lower cost longer tenor

Liability Management

15.7

13.2 13.1

11.0 10.9 10.810.2

9.9

7.9 7.9

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Promises delivered, now more ahead to goPromises delivered, now more ahead to go

Sale of Guaba US$ 1.4bn

Fibria19 Bond: US$ 1.0bn 9.25%

10NC5

Export pre-payment facilities: US$

1.175bn

Sale of Conpacel/KSR R$1.5bn

Fibria21 Bond Fibria21: 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

Piracicaba Unit: indicative price of US$ 313MM

Commitment to investment grade level

NetDebt(R$ bi)

Net Debt/EBITDA (x)

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7.8

7.2 7.26.5

5.6

4.73.9

3.6

2.93.2


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Investor Relations

E-mail: [email protected]

Phone: +55 (11) 2138-4565

Website: www.fibria.com.br/ir

corportiva set2011 eng

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