credit suisse - meeting with investors

8/20/2019 Credit Suisse - Meeting with investors

1/62


2/62

2

The information contained in this presentation may include statements whichconstitute 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 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

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.

Disclaimer


3/62

3

Company Overview1Pulp and Paper Market2

Financial and Operational Highlights3

Agenda

Final Remarks

4


4/62

4

Company Overview


5/62

5

A Winning Player

Port Terminal Pulp Unit

Três Lagoas

Santos

AracruzPortocel

Caravelas

BelmonteVeracel

Jacareí

Superior Asset Combination Main Figures – 3Q15 LTM

Pulp capacity million tons 5,268

Net revenues R$ billion 9,097

Total Forest Base(1) thousand hectares 967

Planted area(1) thousand hectares 539

Net Debt R$ billion 9,578

Net Debt/EBITDA (in Dollars)(2) X 1,58

Source: Fibria

(1) Including 50% of Veracel, excluding forest partnership areas and forest bases linked to the sales of Losango and forest assets in Southern Bahia State.(2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.


6/62

6

Fibria’s Units Industrial Capacity

* Veracel is a joint venture between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year


7/62

7

Worldwide presence

Strong global customer base

Long-term relationships

Focus on customers with stable business

Customized pulp products and services

Sound forestry and industrial R&D

Focus on less volatile end-use markets such as tissue

Efficient logistics set up

Low dependence on volatile markets such as China

Low credit risk

100% certified pulp (FSC and PEFC/Cerflor)

Sales Mix by End Use - Fibria Highlights

Fibria’s Commercial Strategy

Net Revenues by Region - Fibria

Region - 3Q15 End Use - 3Q15

44% 44% 42% 37%43% 43%

35% 36%46% 42% 39% 40%

47% 42% 42%

18%26%

26%30% 22%

29%31% 31%

19% 23% 27% 27%17% 24% 25%

29%20% 22% 25% 26%

21%25% 26% 26% 27% 24% 23% 26% 26% 25%

9% 9% 10% 9% 10% 8% 9% 8% 10% 9% 10% 10% 10% 9% 8%

1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13 1T14 2T14 3T14 4T14 1T15 2T15 3T15

Europe North America Asia Other

50%

36%

14%

Printing &

Writing

Specialties

42%

25%

25%

8%

Europe

North

Asia

LatAm

Tissue


8/62

8

Pulp Supply Agreement: Puma Project

Logistics and commercial

structure synergies;

Ensure sales volumes;

Ensure pulp market access with

Klabin brand.

Logistics and commercial

optimization and synergies;

Support customers’ growth and

enhance customers’ needs;

Potential development of new

customers.

▶ Agreement benefits:

Mutual value creation, with better servicing for both Companies customer’s base

▶ Pulp volumes:

• Minimum of 900 kt of hardwood for the first 4 years

• 75% of 900 kt for the fifth year (phase out 1)

• 50% of 900 kt for the sixth year (phase out 2)

▶ Selling price based on the average net price charged by Fibria at the Port of Paranaguá (FOB Paranaguá)

▶ Operational startup: Mar/2016

▶ Sales destination: Globally, except for South America


9/62

9

(1) Controlling group(2) Free Float 41.44% + Treasury 0.06%

VotorantimIndustrial S.A. (1)

29.42%

BNDESParticipações (1)

29.08%

FreeFloat (2)

41.50%

• 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

• SEC Registered ADR Level III program

• Indebtedness and Liquidity

• Market Risk Management

•

Risk Management• Corporate Governance

• Related Parties Transactions

• Anti-Corruption

• Information Disclosure

• Securities Trading

• Antitrust

• Genetically Modified Eucalyptus

• Dividend Policy

Fiscal

Council

Board of

Directors

20% independentmembers

Role of CEO andchairman is split

Personnel andRemuneration

Committee

StatutoryAudit

Committee

Finance

Committee

Sustainability

Committee

Innovation

Committee

General

Meeting

Listed on Novo Mercado, highest level at BM&FBovespa: Policies approved by the Board of Directors:

Shareholder Structure and Corporate Governance

30%independent

members

100%independent

members

50% independent

members

45% independent

members-


10/6210

Dividend Policy

Proposed dividends based on cash generation, taking into consideration the company’s strategic

planning and in line with its policies, notably the Indebtness and Risk Management policies.

Preserving Investment Grade.

Commitment to Corporate Governance best practices.

- Criteria:

Extraordinary dividend if Policy criteria are met.


11/6211Pulp and Paper Market


12/6212

Expected scenario for 2013 in Nov’2012

BHKP CAPACITY CHANGES

Realized scenario in 2013

1,270

100

-155

-410

-140

-60

605

1,310

Eldorado

UPM Fray Bentos

Sappi Cloquet

Jari

Cellulose du Maroc

Sodra Tofte

Net

BEKP demand growth*

1,275

320

555

-155

-410

1,585

1,080

Eldorado

Suzano Maranhão

Montes del Plata

Sappi Cloquet

Jari

Net

BEKP demand growth*

DELAYED

Unexpected

Closures

In 2013, we stressed the difference between the expected scenario

and the realized one...

*Source: PPPC Outlook for Eucalyptus Market Pulp November 2012 *Source: PPPC Outlook for Eucalyptus Market Pulp September 2014


13/6213

As a result we had better prices than expected

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2012 for 2013 prices)

BHKP Delivered to Europe (USD/t)

765

772

767

784

772

788

814

795

770

791

740

750

760

770

780

790

800

810

820

1Q13 2Q13 3Q13 4Q13 Annual 2013

Consultants average for 2013 Realized PIX/FOEX price


14/6214


The “better than expected scenario” happened again last year...

Realized scenario in 2014

1,770

-105

-85

-65

-120

-70

100

235

550

1,100

230

BEKP demand growth

Net

Ence Huelva

Old Town

APRIL Rizhao

Sodra Tofte

Sappi Cloquet

UPM

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

1,7341,380

2,660

-120

-115

560

830

1,275

230

BEKP demand growth**

Net

Sodra Tofte

Sappi Cloquet

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

Expected scenario for 2014 in Dec’13

More unexpectedmill closures

*Partly integrated to existing PM**Source: PPPC Outlook for Eucalyptus Market Pulp November 2013

*Approved license only for 500,000 t/y


15/6215

… and also better prices than initially projected

BHKP Delivered to Europe (USD/t)

782

737

696

718

733

768

752

729734

746

640

660

680

700

720

740

760

780

800

1Q14 2Q14 3Q14 4Q14 Annual 2014

Consultants average for 2014 Realized PIX/FOEX price

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2013 for 2014 prices)


16/6216

Then, what about 2015?

1005

-315

-65

115

85

30

200

750

265

750

400

BEKP demand growth**

Net

Possible closures*

Ence Huelva

April Rizhao

Sappi Cloquet

Old Town (Expera)

Portucel Cacia

Eldorado

CMPC Guaiba II

Oji Nantong

Montes del Plata

Suzano Maranhão

-400 to -800

1,415 to 1,815

Expected scenario for 2015 in Dec’14 Realized scenario in 2015

?


*Based on annual closures average (400,000 to 800,000 t/yr)**Source: PPPC Outlook for Eucalyptus Market Pulp September 2014


17/6217

Shipments of Eucalyptus Pulp

(1) Source: PPPC World 20 – January/2015

Global Market BEKP Demand

Paper Capacity increase in China

2014 2015 Total

FORECAST REALIZEDPREVIOUS

FORECAST

LATEST

FORECASTPREVIOUS LATEST

Woodfree 256 256 760 760 1,016 1,016

Tissue 1,390 1,278 727 1,365 2,117 2,643

Cartonboard 2,100 1,326 380 730 2,480 2,056

Total 3,746 2,860 1,867 2,855 5,613 5,715

Source: Fibria and Independent Consultants

1,106 kt

80 kt247 kt

593 kt

186 kt

9%

6%5%

19%

5%

Total North

America

Western

Europe

China Others

9M2015 vs. 9M2014(2)

(1) Source: PPPC World 20 – December/2014

2014 vs. 2013(1)

1,734 kt

92 kt

386 kt717 kt

537 kt

11%

5%

6%

20%13%

Total North

America

Western

Europe

China Others

(2) Source: PPPC World 20 – Sep/2015


18/6218

China GDP vs. Eucalyptus Shipments (base 100)

203

-

50

100

150

200

250

China GDP Eucalyptus Shipments

76

Source: Bloomberg and PPPC.


19/6219

Commodities Differentiation

China GDP breakdown

China commodity demand - basis 100

49% 49% 48% 49% 49% 50% 50% 52% 51% 53% 53%

44% 47% 48% 48% 48% 48% 48%46% 47% 45% 45%

8% 4% 4% 3% 3% 2% 2% 2% 2% 2% 2%

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E

Consumption Investment Net Exports

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E

Corn Soybeans Wheat Crude oil Iron ore Sugar BHKP

100

248

201194172

152

124115

Source: Itaú Macroeconomic Department and PPPC – Oct/15


20/6220

Technical Age and Scale in the Market Pulp IndustryFurther closures are expected due to lack of adequate investments in the industry…

Hardwood (BHKP) Market Pulp Softwood (BSKP) Market Pulp

STRONGWeighted average

technical age 12.3 years

Weighted average

capacity 1,277,000 t/a

Aracruz

Três Lago as

Veracel

Jacareí

0

500

1.000

1.500

2.000

2.500

3.000

051015202530

PM Capacity, 1000 t/a

Technical Age, years

WEAK

STRONGWeighted average

technical age 21 years

Weighted average

capacity 527,000 t/a

North American Pulp Mills Other Pulp Mills Closures Grade Switch On & Off

WEAK0

500

1.000

1.500

2.000

2.500

3.000

0102030

PM Capacity, 1000 t/a

Technical Age, years

More than 7.7 million tons of capacity above 25 years and with annual capacity below 500,000 t/y.

Old

Town

Ence

Huelva


21/6221

Source: PPPC and Fibria

Closures of Hardwood Capacity Worldwide

(000 ton)

Capacity closures DO happen

-910

-85

-1,260

-1,180

-540-500

-105

-1,085

-445

-750

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-2017 E(1)

(1) As of April 2015

G i ddi i h ld b d h l f


22/6222

Gross capacity addition should not be counted as the only factor

influencing pulp price volatility….(1)

List Price bottoming at US$650/t in 2011 and US$724/t in 2014

C a p a c i t y ( 0 0 0 t o n )

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

0

100

200

300

400

500

600

700

800

900

1.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Valdivia

APP

Hainan

Veracel Nueva Aldea

Santa Fé

Mucuri

Fray

Bentos

Kerinci

PL3

Três

Lagoas

Rizhao

APP Guangxi

Chenming

Zhanjiang

EldoradoMontes

del Plata

Maranhão

Guaíba II

APP South

Sumatra(2)

Klabin

Oji

Nantong

Horizonte II

B H K P p r i c e s - C I F E u r o p e

( U S $ / t o n )

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (July/15), Brian McClay (Sept./15) and RISI (May/15)

(2) Partially integrated production.


23/62

0

40

80

120

160

D e c - 9 9

J u n - 0 0

D e c - 0 0

J u n - 0 1

D e c - 0 1

J u n - 0 2

D e c - 0 2

J u n - 0 3

D e c - 0 3

J u n - 0 4

D e c - 0 4

J u n - 0 5

D e c - 0 5

J u n - 0 6

D e c - 0 6

J u n - 0 7

D e c - 0 7

J u n - 0 8

D e c - 0 8

J u n - 0 9

D e c - 0 9

J u n - 1 0

D e c - 1 0

J u n - 1 1

D e c - 1 1

J u n - 1 2

D e c - 1 2

J u n - 1 3

D e c - 1 3

J u n - 1 4

D e c - 1 4

J u n - 1 5

BHKP - FOEX Europe (base 100) CPI (base 100)

Source: Bloomberg – October 27, 2015

Market price closer to producer’s marginal cost

The marginal cost producers are based in Europe and North America

Flattish industry cost curve

Higher flexibility to adjust supply side during imbalanced market

Lower dependency on Asian market (~25%) compared to hard commodities (70%+)

Market end users are linked to consumer goods, such as tissue

Incipient pulp price futures market and low liquidity

2008-2009 Economic

crisis

In the last 15 years, pulp volatility has been just 8%...why?


24/6224

Lowest volatility among commodities

100 = January 1st, 2012

Low volatility of hardwood pulp price, even though new capacities have

come on stream in the period.

30

40

50

60

70

80

90

100

110120

130

140

150

160

170

180

190

200

210

220

J a n - 1 2

M a r - 1 2

M a y - 1 2

J u l - 1 2

S e p - 1 2

N o v - 1 2

J a n - 1 3

M a r - 1 3

M a y - 1 3

J u l - 1 3

S e p - 1 3

N o v - 1 3

J a n - 1 4

M a r - 1 4

M a y - 1 4

J u l - 1 4

S e p - 1 4

N o v - 1 4

J a n - 1 5

M a r - 1 5

M a y - 1 5

J u l - 1 5

S e p - 1 5

Iron Ore Soy Bean Crude Oil Sugar BHKP Price (FOEX Europe) Exchange Rate (USD - BRL)

124

207

74

62

4436

Source: Bloomberg - October, 26th 2015


25/62

The only commodity with lower volatility than FX

35%32% 31%

26%23% 23% 23%

15%

13%

6%

Sugar WTI CrudeOil

Nickel Soy Iron Ore LMEMetals

Ibovespa Cattle FX FOEX PIXBHKP

Historical Volatility of Commodities (US$)

Since 2009

25


26/6226

Financial and Operational Highlights

Each 5% depreciation of the Real increases EBITDA by around


27/6227

Each 5% depreciation of the Real increases EBITDA by around

R$403m (11%) and FCF by R$482 m (45%)

(1) Excludes Conpacel | (2) 2015 year-end market consensus | (3) According to Focus Report (Brazilian Central Bank – October 23, 2015)

1,522

2,5261,964

2,2532,796 2,791

4,620

2009(1) 2010(1) 2011 2012 2013 2014 LTM 3Q15 2015 E

Exchange Rate

Average (R$/US$)

EBITDA Margin

EBITDA (R$ million)

Fibria net pulp price

(US$/t)

Fibria net pulp price

(R$/t)

2.00 1.76 1.67 1.952.15 2.35

3.013.41(3)

456

670 639581

610 572 561 583

29% 40% 34% 36% 40%39% 51%

912

1,1791,067 1,133

1,311 1,344

1,6891,988

Market

Consensus(2)


28/62

248 116 263 373466(2)

1.122(4)

FCF (R$ million)(1)

3.86

FX

2Q14 3Q14 4Q14 1Q15 2Q15

3T14 3T15 %

Average FX 2.2745 3.5430 +56%

Free cash flow (R$ million) 116 1.122 +867%

Oct.

R$ million

FX sensitivity of Free Cash Flow

EBITDA

Margin35% 35% 45% 50% 50%

(1) Does not consider non recurring items | (2) Not considering dividends payment | (3) Ptaxas of Oct. 26, 2015 (4) Not considering H2 Project

28

(3)

3Q15

56%


29/6229

Free Cash Flow(1) – LTM 3Q15

R$ million

(1) Not considering dividend payment of R$149 million.

(2) Not considering capex related to the Horizonte 2 project.

(3) Includes other financial results.

4,620

2,297 2,150

(1,556) ( 345 ) (374) ( 71 ) 23 ( 147 )

Adjusted

EBITDA

Capex

(ex-H2 project)

Net Interest Working

Capital

Taxes Others FCF

(ex-H2 project)

Capex H2 FCF


30/62

30

ROE and ROIC (R$)

ROE = Adjusted EBIT(1)/ Equity before IAS 41(2)

0.8%

4.4%

7.1%5.40%

17.8%

2011 2012 2013 2014 LTM 3Q15

ROIC = Adjusted EBIT(3)/ Invested Capital before IAS 41(2)

Sept.

(1) Adjusted EBITDA – CAPEX – Net Interest – Taxes

(2) International accounting standards for biological assets.

(3) Adjusted EBITDA – CAPEX – Taxes

Sept.

FX 3.97

1.67Average

FX1.95 2.16 2.35 3.01

3.97

1.67Average

FX1.95 2.16 2.35 3.01

2.9%

6.8%

9.1%7.6%

17.7%

2011 2012 2013 2014 LTM 3Q15

FX


31/62

31

Cash Production Cost (R$/t) – 3Q15

502

697659

608

4142

16 45

349

8(38)

(51)

3Q14 Inflation FX Lower energy

price

Maintenance

downtimes

Non recurring

wood

Non recurring

input

consumption

Non recurring

fixed costs

Total Management

initiatives

Cash cost

3Q15

Total non

recurring

3Q15 recurring

cash cost

Management initiatives gains mostly offset the inflation impact

Cash Production Cost saw a annual increase of 4 7% over the past


32/62

Fibria Cash Production Cost (1) (R$/ton)

Consistently

controlling the

production

cash cost at alevel below

the inflation

pace.

32

Cash Production Cost saw a annual increase of 4.7% over the past

6 years

432 448 471 473

505 519569

2009 (2) 2010 (2) 2011 2012 2013 2014 LTM 3Q15

CAGR: + 4.7%

(1) Constant Currency (2) Excludes Conpacel

Capital Structure: Fibria has achieved the lowest leverage ratio among


33/62

33

Capital Structure: Fibria has achieved the lowest leverage ratio among

its Latin American peers

Net Debt/EBITDA (x)(1)

Fibria Arauco CMPC Klabin Suzano

S&P BBB-/Stable BBB-/Stable BBB-/Stable BBB-/Negative BB+/Stable

Moody’s Ba1/Positive Baa3/Stable Baa3/Negative - Ba2+/Stable

Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Stable -

(1) Fibria’s historical data in BRL.

2.4 2.3

2.72.7 2.9 2.2

2.1

4.84.5 4.5

4.1

3.3

1.7 1.7

2.4

3.0

4.2 4.5

6.2

2.93.1

3.13.4

3.83.6 3.7 3.63.2

3.1 3.1

14.8

13.2

11.7 11.18.9 7.7

6.4 5.0

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Fibria Suzano Klabin CMPC Arauco Eldorado

A consistent and disciplined approach focused on reducing debt


34/62

34

A consistent and disciplined approach focused on reducing debt

and its cost

Debt (US$ million) x Leverage (US$) Interest (US$ million) x Cost of Debt (US$)

Free Cash FlowIncrease

InterestReduction

Cost of DebtReduction

These dynamics

creates a virtuouscycle

(*) Considering the portion of debtin reais fully adjusted by the market swap curves of September. 30, 2015.

8.6

3.2

6.3

2.4

2009 2010 2011 2012 2013 2014 Sep/15

Gross Debt Net Debt

7.29

4.11 4.253.32

2.60 2.41

1.58

473414 408

350

268200

149

2009 2010 2011 2012 2013 2014 LTM

3Q15

6.3 5.95.5

5.24.6

3.4 3.3(1)


35/62

35

Recent funding transactions

113 120140 143 150 160

175

215

COPEC Raizen Ecopetrol Fibria Colbun Braskem Molymet Argos USA

LatAm Investment Grade Loan Spread over Libor (bps)

CRA (Certificate of Agribusiness

Receivables)

Reopening of the Syndicated Export

Prepayment

Upsized Amount: US$400m

Book of US$515m

Average term: 5 years

Average Cost: Libor 3M + 1.43% p.a.

Amount: R$675m

Tenor: 6 years bullet

Coupon: max 99% CDI

Avg. Term

(years) 4 5 5 5 6 5 5 5

( )


36/62

36

One of the best performances among Brazilian corporate issuers(1)

(1) G-spread on October 26, 2015

315 346350 371

385 432 436

507553

632 644

807

1073

BRF 2024 Fibria 2024 Embraer

2023/25

Globopar

2022/255

Brazil

2022/25

Suzano 2024 Vale 2022 Klabin 2024 Samarco

2024

Braskem

2024

Gerdau

2024

Petrobras

2024

Odebrecht

2023/25


37/62

37

Fibria has the simplest and most transparent call in the industry

Negative Neutral Positive

Pulp supply ✔

Closures/conversions ✔

Inefficient capacities in China ✔

Demand ✔

‣ Fiber and grade substitution ✔

‣

Tissue ✔

‣China ✔

Pulp price ✔

Brazil GDP ✔

Energy crisis ✔

FX ✔

Capex inflation ✔

Cost inflation ✔

Rating ✔

Tax ✔

Corporate Governance ✔


38/62

38Final Remarks

$


39/62

39

Proposed Extraordinary Dividend of R$ 2 billion

Timeline:

Call to EGM: October 22nd, 2015

EGM date: November 30th, 2015

Payment on: December, 2015

Drivers:

Strong cash generation

Cash position above minimum cash

Low leverage level

Low average cost of debt

Funding status of Horizonte 2 project

Capital discipline

Implementation of

Dividend Policy approved

Dividend yield* = 7%

* Considering dividend of R$149 million paid in May and the proposed payment of R$ 2 billion on Market Cap. on September 30th, 2015.


40/62

40

Fibria is able to create value for its shareholders with capital discipline

INDUSTRY

CONSOLIDATION ?

PULP

Growth with discipline

Best portfolio of projects

DIVIDENDS

BIO-ENERGY AND

OTHER OPPORTUNITIES

Complementary to pulp

Portocel

Land and forest

FREE CASH FLOW

WITHOUT JEOPARDIZING CREDIT

METRICS


41/62

41Horizonte 2 Project


42/62

42

• Follow the growth of strategic customers

• Developing new customers

• Distribution to new geographic markets

• Efficiency and competitiveness gains in logistics

• Higher quality in customer service

• Greater ability to capture new expansion market windows

• Strong M&A position

Competitiveness

Commercialpositioning

Long-term growthpotential

What is the importance of growth for Fibria?

• Wider fixed costs dilution

• Cost curve position improvement

• Greater bargaining power with suppliers


43/62

43

Why expand Três Lagoas?

• Brownfield Project, synergies with current

operations

• Modern plant, prepared for potentialexpansion

• Availability of wood and low average

distance from forest to mill

• Forest based on the optionality concept andprioritizing lease and partnership models

• Additional energy surplus of 120 MWh

Start-up: 4Q2017

Capacity: 1.75 million tons

ESTIMATED BHKP CAPACITY RANKING 2017 (000T)

Source: Poyry and Fibria Analysis (as of May 2015)

0 2000 4000 6000 8000

OthersKlabin

Domtar

Pulp Mill Holding

Lwart

Portucel Soporcel

Georgia-Pacific

Resolute

Verso

Nippon Paper

Mondi

Oji

MitsubishiMarubeni

IP

Altri

ENCE

Cenibra

Arauco

Stora Enso

UPM

Eldorado

APP

Suzano

RGE/APRILCMPC

Fibria 7,950

Current Capacity

New Capacity

New Capacity – Klabin Agreement

New Capacity – Horizonte II Project

P l l d ti ti Fib i i h th k t


44/62

44

Pulp sales destination: Fibria growing where the market grows

(1) Considers 2Q15 last twelve months. | (2) IncludesKlabin’s

sales volume

37%

36%

42%

25%

19%24%

4%9%

Total sales volume distributionafter H2 start up(2)

Current sales volume distribution(1)


45/62

45

Schedule

Startup

Utilities clearance

and commissioningL1 interconnections

during maintenance

downtime

Initial hiring of harvest

workers

Hiring of operational

team

Negotiations with

concession holders and

Port of Santos tendering

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

2015 2016 2017

Beginning of

infrastructure and

purchase of the TGs

Purchase of the

industrial plants

Beginning of

construction

Beginning of

assembly

Beginning of forest

machinery deliveries

Beginning of

harvest

Definition of outbound

logistics formats


46/62

46Forestry base

H2 Project will have the forest base ready for the start-up


47/62

47

H2 Project will have the forest base ready for the start-up

Forestry base required:

H1: 120,000 ha

H2: 174,000 ha

Total: 294,000 ha


48/62

48Logistics

Forestry Logistics


49/62

49

Low average distance from forest to mill

FOREST MILL

95 km

H1 + H2 consolidated

Outbound logistics


50/62

50

Fibria has logistical alternatives on a competitive basis

Ports Highways Railroads Waterways

Data Collection / Preliminary

Analysis Logistics Costs Opex - Rates Capex

Qualitative Modal conditions

Analysis

Mato Grosso

Mato

Grosso do

Sul

Goiás

Brasilia


51/62

51Financials

Even more competitive cash production cost


52/62

52

BHKP (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, July 2015) - FX considered by the consultant of R$/US$3.14.

H2 cash cost was estimated according to weighted average cost, after mill balance, converted by R$3.01. Includes energy sales.

457421

351 347

298 291

214190 171

China USA Iberia Canada Chile/Uruguay Indonesia Brazil Fibria 3Q15 LTM Fibria w/ H2

U t 70% f th i i itt d


53/62

53

Up to now, 70% of the expansion capex is committed

R$MILLION

% Index

R$ 5,548 72Inflationindices

EUR(1) 2,004 26 FX

USD(1)/SwedishKrona

154 2 FX

Total 7,7067 100

(1) Considering USD/BRL of 2.80 and EUR/BRL of 3.13, according tobudget.

Expansion Breakdown by currency(1) Expansion capex updated expected curve

7%

58%

30%

1% 4%

2015 2016 2017 2018 2019onwards

Funding for the H2 project


54/62

54

Sources (estimated amounts in R$ billion)

(1) Cash on hand above minimum cash balance at end of Jun-2015

(2) Working capital to be released in 2016 and 2017 in commercial deal with Klabin

Even with expansion capex at current levels of FX, leverage ratios can continue

to decrease

0.6

7.8

Q2 Excess

Cash(1)

BNDES CRA FDCO ECAs Banks Working

Capital(2)

Total

Rating agencies understand that the Project will not jeopardize

’


55/62

55

Fibria’s credit metrics

“We expect Fibria to continue benefiting from higher operating cash flows whichwould allow it to enlarge its Três Lagoas industrial complex while keeping its debt at

reasonable levels for a low investment-grade rating”

“Fitch’s base case, which assumes that the company builds a new pulp mill (TrêsLagoas II) starting in 2015 and uses net pulp prices of between USD575 and USD675

per ton during the construction period, results in net leverage reaching 3.5x (1). Netleverage would quickly decline to around 2.5x(1) once the mill becomes operationalin the second half of 2017”

(1) According to rating agency methodology

Project financials at a glance


56/62

56

Project financials at a glance

UNIT

Pulp production/year(1) k tons 1,750

Expansion capex(2) R$ billion 7.7

Sustaining capex(3) R$/t 193

Cash cost(4) R$/t 341

Energy surplus MWh 120

(2) Includes chemical leasing and investments in order to increase capacity to 1,850 kt/year.

(3) Estimated sustaining capex in perpetuity considering capacity of 1,850 kt/year.

(4) Estimated weighted average cost, after mil l balance. Includes energy sales.

(1) Creep capacity will increase production to 1,850 kt/year

We don’t think that such competitiveness is easily replicable, since the

i i b i l


57/62

Although some potential

brownfields are listed,

there are significant

challenges.

scenario is becoming more complex…

Land

Infrastructure/Logistics

Certified wood availability

Environmental requirements

Public funding constraints

Governance standards

Cost of capital

Credit rating


58/62

58Backup

Fibria’s tax structure


59/62

59

Fibria s tax structure

Tax benefits (R$)

Fiscal - annual adjustment

Benefit Amount Maturity

Goodwill(Aracruzacquisition)

Annual tax deduction:R$89 million (tax)

Remaining Balance set/15: R$0,899 billion (base)

2018

Forestry Capex inMato Grosso doSul state

2015 tax deduction related todepletion: R$ 24,4 million

Undefined

Tax loss carry forward and tax credits

Benefit Amount

Tax losscarryforward

Balance up to set. 15: R$ 369million (base)

Accumulated taxcredits

Balance set/2015:- PIS/COFINS: R$ 639 million

- Withholding tax (IR and CSLL):R$ 813 million

- Befiex: R$ 390 million

- Reintegra: R$ 78 million

Tax payment (cash basis)

2010 2011 2012 2013 2014 2015

R$ 16 million R$ 4 million R$ 15 million R$ 31 million R$ 29 million R$ 51 million


60/62

Global Market Pulp Demand


61/62

61

p

Demand growth rateHardwood (BHKP) vs. Softwood (BSKP) (000 ton)

Hardwood demand will continue to increase at a faster pace than Softwood

Source: PPPC report (Sept. 2015) Source: PPPC reports. Excludes Sulphite and UKP market pulp (Sept./15)

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

Hardwood Softwood

2014 - 2019 CAGR:

Hardwood: +2.5%

Softwood: +0.8%

000 ton 1999 2009 2019Growth1999-2009

Growth2009-2019

Hardwood 16.3 24.8 33.8 52% 36%

Eucalyptus 6.0 15.9 24.1 165% 52%

Softwood 19.0 21.4 24.9 13% 16%

Market Pulp 35.3 46.2 58.7 30% 27%

Paper Production – Runnability with BHKP

Source: RISI conference, August 2014.

Benefiting From China’s Growth


62/62

World Tissue Consumption, 1991-2013 (3)

Per Capita Consumption of Tissue by World Region (3)China's Share of Market Pulp (2)

24

15 15

12

7 65

1

N.

America

West

Europe

Japan Oceania East

Europe

LatAm China Africa

10% 10%

12%14%

21%

17%

22%23% 23% 23%

0

2

4

6

8

10

12

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Eucalyptus Hardwood Total % Compared to the global Market Pulp

(Kg/capita/year)

(million t) (kg/person/year)

Between 2005 and 2014,

the Chinese market share

of eucalyptus shipments

increased by 19 p.p. (total

market pulp: + p.p.)

0

5

10

15

20

25

30

35

1991 1996 2001 2006 2009 2010 2011 2012 2013

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

Middle East Japan China Asia FEOceania Africa

LTM Growth

Rate +4.2%

g

(1) PPPC P l Chi Fl h R t J 2015

(million t)

5.452

2.546

1.393 1.358

121 20 13

6.135

3.023

1.364 1.485

117 140 5

BHKP Total Latin

America (1)

Indonesia Others(2) USA Canada Western

Europe

8M2014

8M2015

Latin America is the

leading exporter of BHKP

to China, accounting to

approximately 49% ofChina's total imports in

8M15.

(‘000s t)

(1) includes South Africa and New Zealand. | (2) Includes China, Japan, Malaysia, Russia, Thailand and Vietnam.

China’s Hardwood Imports of BHKP by Country (1)

credit suisse - meeting with investors

Documents