deutsche bank's 10th annual paper

8/13/2019 Deutsche Bank's 10th Annual Paper

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DB's 10th Annual Paper & Forest ConferenceFebruary 2014


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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

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.

Disclaimer

2


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FibriasStrategy


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A Winning Player

Source: Fibria

(1) Including 50% of Veracel, excluding forest partnership areas as well as the forest base linked to the sale of forest assets in

Southern Bahia State and Losango.

Pulp capacity million tons 5.3

Net revenues R$ billion 6.9

Total Forest base (1) thousand hectares 962

Planted area(1) thousand hectares 557

Net Debt R$ billion 7.8

Net Debt/EBITDA (USD) X 2.6

2013 FCF R$ billion 1.3

Superior Asset Combination Main Figures2013


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OPERATING EXCELLENCE LIABILITY MANAGEMENT GROWTH WITH DISCIPLINE

Cost control

Efficiency projectsaiming at reducing

Fibriascash cost

Operating stability

Capex discipline

Liquidity events

Gross debt reduction

Cost of debt reduction

Leverage reduction

Ready for organicgrowth (licenses andbasic engineering)

Continuous investmentin forest for capacitygrowth

Industrial project at theright moment for valuecreation

Since the beginning, Fibriasstrategy has focused on:


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593 593 605 584 648

2009* 2010* 2011 2012 2013

4,600

5,0545,184

5,299 5,259

2009* 2010* 2011 2012 2013

The maturity of synergies captured since Fibriascreation

improved its operating indicators

* Excludes Conpacel | ** IPCA index considered to calculate the inflation effect

+14%

432 448 471473 505

2009* 2010* 2011 2012 2013Historical Value Inflation Effect**

-13%578 556 534 507

Historical Value Inflation Effect**

-18%

793 737687 626

29%

40%34% 36%

40%

1,522

2,526

1,9642,253

2,796

2009* 2010* 2011 2012 2013

Production Volume (000 t)

Best Practices and Operating Stability Cash Cost (R$/ton)

EBITDA(R$ million) EBITDA MARGIN(%)SG&A (R$ million)

Structure and process simplification


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PULP

- Growth with discipline

- Best portfolio of projects

BIO-ENERGY

- Complementary to pulp

- Ensyn

INDUSTRY

CONSOLIDATION ?

OTHER OPPORTUNITIES

- Portocel

- Land and forest

PotentialGrowth

Prospects

8

Fibria is seeking value creation for its shareholders with capital

discipline


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Supply structural changes puts pressure on the industry

9

MARKET PULP CAPACITY RANKING 2013(000T) MAIN PROJECTS

Project Country Capacity Timing Fiber Status

Arauco / Stora Uruguay 1.3Mt 1Q2014 BEKP Confirmed

CMPC Guaba II Brazil 1.3 Mt 2Q2015 BEKP Confirmed

Klabin Paran Brazil 1.5 Mt 2Q2016BEKP/

BSKP/FluffConfirmed

Fibria Trs Lagoas II Brazil 1.5 Mt - BEKP Unconfirmed

APP South Sumatra Indonesia1.5 Mt -2.0

Mt- BHKP Unconfirmed

COST CURVE EVOLUTION

USD/Adt,2013co

stlevel

Cumulative Capacity Million t/a

Cost position

of marginal

producer

Source: Hawkins Wright , Poyry and Fibria Analysis

0 2000 4000 6000

Canfor

ENCE

Eldorado

Resolute Forest

Domtar

Mercer

Ilim

IP

Weyerhaeuser

Sodra

Stora Enso

Suzano

Metsa Group

Paper Excellence

UPM-Kymmene

Georgia Pacific

CMPC

Arauco

APRIL

Fibria

Celulose Branqueada Fibra Longa

(BSKP)Celulose Branqueada Fibra Curta

(BHKP)Celulose No Branqueada (UKP)


10/33Financial Highlights


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Indebtness

Net Debt (Million)

3.4 3.02.8

3.3 2.9 2.6

10,7689,487 9,773

5,2694,254 4,172

Dec/12 Sep/13 Dec/13

R$ US$

Debt Amortization Schedule (R$ million)Dec./13(1)

Gross Debt (Million)

7,7458,240 7,849

6,946

3,790 3,695 3,3512,965

Dec/12 Sep/13 Dec/13

R$ US$

Net Debt/EBITDA (US$)Net Debt/EBITDA (R$)

Dec/13(Pro forma)

2.5

2.3

After

Bond 2020

Repurchase

3,482

- 21%- 34%

1,471

903

1,924

4,298

1,474

834 8301,256

976762

2,169

1,441

26 5

Liquidity 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Pre-Payment BNDES ECN Trade Finance (ST) Finnvera Bond

Revolver

Land

sale (2)

Cash

(1) Does not consider the reclassification of the bond 2020 to the short term.(2) Pending payment related to the land sale.


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Fibria delivered the most significant leverage reduction in 2013

Net Debt/EBITDA (x)

3.93.6

2.9

3.2

4.2

4.85.2

4.7

4.53.4

3.1

3.33.0 2.8

4.74.7 5.0 5.1 5.1 5.2

2.42.6

2.9 3.0

3.2

3.7

3.1

4.1(1)

Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13

Fibria Arauco CMPC Klabin Suzano

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

Moodys Ba1/Positive Baa3/Negative Baa3/Negative - Ba2/Stable

Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Stable BB-/Positive

(1) 2013 projection by Citibank.

Ratings

12


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Positive Free Cash Flow (1)(R$ million)

13

2013: R$ 1,268 million

230

-402

-149-12

221 57 157

399

167234

122

746

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

1.641.59Average 1.80 1.77 2.03 2.06 2.282.071.96 2.00

FX(R$/US$)

2.281.67

2012: R$ 836 million2011: R$ -333 million

(1) Does not include: the capital gain on assets sales, Bonds repurchases and the tax payment (REFIS) over profit earnings abroad.


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538

244

(248) (88)

56

(6) (8)

Adjusted EBITDA Capex Net Interest Working

Capital

IR/CS Other Free Cash Flow

14

Free Cash Flowper ton

Fibria delivers one of the highest EBITDA/t and FCF/t of the industry

2013 Results (R$/ton)


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2.001.76 1.67

1.952.16

562

844 810751 791

FX and Pulp Price explain 80% of FibriasEBITDA Margin

15

Average Price

FOEX (US$/t)

Exchange Rate

Average (R$/US$)

EBITDA Margin

EBITDA (R$ million)

29%

40%

34% 36%40%

1,522

2,526

1,9642,253

2,796

2009 (1) 2010 (1) 2011 (1) 2012 2013

(1) Excludes Conpacel


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Cash Production Cost saw an increase of 17% over the past 5 years

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

432448

471 473

505

2009 (2) 2010 (2) 2011 2012 2013

CAGR: + 17%

Inflation in the period :

IPCA: +31%

FibriasCash Cost:

+17%

2014 Cash Production Cost:

Wood costs will represent the main

impact

Non recurring increase mainly due to

third party wood

Operating excellence actions focused

on keeping cash cost below inflation

In 2015 the wood impact will be

structurally eliminated

(1) Constant Currency (2) Excludes Conpacel

Target to have the cash cost increase

below inflation

16


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Maintenance CAPEX (R$ Million)

1,416

1,078

1,287

2011 2012 2013 Land Deal:Rural

Partnership

Non recurringwood

purchase

Inflation FX Rate Modernization Others 2014E

Approx.

18% increase

17


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Fibriastax structure

Tax benefits (R$ million)

Fiscal - annual adjustment

Benefit Amount Maturity

Goodwill(Aracruzacquisition)

Annual tax deduction ~~R$85 million

Remaining Balance Dec/13:R$ 1,35 billion (base)

2018

Forestry Capex inMato Grosso doSul state

2013s tax deduction relatedto depletion: R$29 million

Undefined

Tax loss carry forward and tax credits

Benefit Amount Uses

Tax losscarryforward (1)

Balance up to Dec.12:R$928 million

- Refis: R$ 494 million-Land Deal: R$ 218million- Other R$129 million- Remaining balance:R$ 87 million

Balance from Jan.13 toDec.13: R$ 3 million

- Land Deal: R$ 581million

Accumulatedtax credits

Balance Dec. 2013:Short Term: R$ 171 millionLong Term: R$ 588 million

Mainly:- PIS/COFINS- withholding tax (IR

and CSLL)

Federal taxes

Tax payment (cash basis)

18

2009 2010 2011 2012 2013

R$ 7 million R$ 16 million R$ 4 million R$ 15 million R$ 31 million

(1) The estimate of capital gain of the land deal is R$ 799 million

Remaining balance of

tax credits of R$ 87

million


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Pulp and Paper Market


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Today, according to public information, there will be a 9%

increase of the market pulp capacity between 2013 and 2015

(1) Source: PPPC Special Research Note November 2013does not include Sulphite and UKP

(2) Projects included: Ilim Group (490kt)| Closures: Resolute Forest (75kt) ; Domtar (125kt) ; Rayonier (280kt); Sodra Tofte (240kt)

(3) Projects included: Eldorado (1.5 mt); UPM Fray Bentos (100kt); Maranho (1.5mt); Montes del Plata (1.3 mt); Oji Nantong (700kt); Guaba II (1.3 mt) | Closures: Jari (410kt); Cellulose du

Maroc (140kt); Ilim Group (100kt); Double A (85kt); Sappi Cloquet (270kt); Sodra Tofte (180kt); April Rizhao (130kt)

SOFTWOOD(1)

25.0 MT

HARDWOOD(1)

30.3 MT

MARKET PULP(1)

55.3 MT+ =

2013-2015(3):

New capacities: 6.4 mt

Announced Closures: (1.3) mt

Net: 5.1 mt

2013-2015(2):



Net: (0.2) mt

2013-2015:



Net: 4.9 mt

20


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-250

0 0 0

-490-285

-910

-85

-555

-1615

-850

-500

-100

-1085

200

500

850

1575

535

1190

1945

2920

390

1790 1740

420

17301600

-2000

-1500

-1000

-500

0

500

1000

1500

2000

2500

3000

3500

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Closures New capacity

Hardwood (BHKP) Market Pulp Capacity Changes(1)BHKP Net Capacity Changes (1) and

PIX/FOEX BHKP in Europe(2)

* 2000: average price starts on 02/May/2000 | 2013: average price(1) (2)

-50

500

850

1575

45

9051035

2835

-165

175

890

-80

1630

515

0

100

200

300

400

500

600

700

800

900

-500

0

500

1000

1500

2000

2500

3000

20

00*

2

001

2

002

2

003

2

004

2

005

2

006

2

007

2

008

2

009

2

010

2

011

2

012

2

013

Net capacity changes PIX/FOEX Europe

No real good correlation between net capacity increases and prices


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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

Source: Pory & Fibria

22

0

500

1,000

1,500

2,000

2,500

3,000

051015202530

PM Capacity, 1000 t/a

Technical Age, years

STRONG

2013/IQ

Weighted average

technical age 14.2 years

Weighted average

capacity 1184 000 t/a

Aracruz

Trs L ago as

Veracel

Jacare

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 21.2 years

Weighted average

capacity 503 000 t/a

2013/IQ

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


23/33

Total delivered cash cost will also have an influence on bottom prices

23

Total Cash Costof BHKP

delivered to

Europe

(US$/t)

458 532 498 487 484

475 449 426 403359 324

301

308262

234

13458 76

55 52 57 81 97

4162

56 71 5988 69

556

115

4126

Cash Cost (US$/t) Delivery (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, December 2013) | Fibrias2013 considering a FX of R$/US$2.16.

592546

SG&A

Others

CAPEX

Interest

Working Capital


24/3324

China: Paper capacities expansion continues to go on

China corresponds to 2/3 of global tissue capacity expansion

Ktons 2012 2013 2014E 2015E Total

P&W (woodfree) 720 -25 0 550 1,245

Tissue 1,540 1,184 1,518 903 5,145

Cartonboard 2,210 2,428 1,300 300 6,238

Total 4,470 3,587 2,818 1,753 12,628

Source: Fibria and Independent Consultants


25/3325

(1)Source: PPPC World 20December/2013

6%

12%

-1%

23%

Total North America Western Europe China

+844kt

-37kt

+674kt+196kt

2013 vs. 2012

Shipments of Eucalyptus Pulp (1)


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FibriasCommercial Strategy

26

47%

33%

20%

FibriasPulp End Use2013 FibriasHistorical Sales Distribution - % of sales volume

Europe

96%

3%

1%

21%

44%

35%

North America

Asia

SpecialtiesTissue Printing & Writing

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

North America Europe Asia Others

Fibriassales delivered to the least volatile

consumer markets (tissue) which brings stability to

sales volume.

Fibria has a low dependence on China (less than

20% of total sales volume).


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Final Remarks


28/33

Fibria was elected as 1st place inthe pulp & paper sector in thecorporate governance andfuture's vision categories

Fibria is one of the 5 Braziliancompanies nominees to the BestCorporate GovernanceAward from London.

Acknowledgments in Governance, Transparency and Profitability

28

Company of the year,among all industries,according to ValorEconmico.

Valor 1000

XVII ANEFAC-FIPECAFI - SERASAEXPERIAN Prize

Fibria is among the mosttransparent publiccompanies in Brazil,

recognized for thequality of its 2012financial statements.

Fibria was ranked for the forthconsecutive year (2010, 2011,2012 and 2013).

In 2013 Fibria was ranked in fourcategories: CEO, CFO, IR Teamand IR Professional

2013 Institutional Investor LatamRanking - P&P Sector

Fibria was selected as one ofthe 10 best companies intransparency.The only one in

the pulp & papersector.

CDP Brasil 100 ClimateChange 2013 Report

poca Negcios 360

International Recognition byCorporate Governance Report

Fibria was elected as 2ndplace.The prize highlights thebusiness profitability,share profitability,liquidity, corporategovernance and sustainability.

The Best Companies to the Shareholders

Prize of Capital Aberto Magazine


29/3329

Fibria is the only Latin America company selectedby RobecoSAM(responsible for DJSI) as one of the10 worldwide leaders in SRI magazines The 10Game Changers Changing the industry throughsustainability.

RobecoSAM - Sustainability Investing Magazine

Selected to Dow Jones World and EmergingMarkets SustainabilityIndices for 2013/14 as theindustry leader of Forestry Resources and Papersector.

DJSI World and DSJI Emerging Markets

Acknowledgments in Sustainability

Fibria was selected again to ISE, the corporatesustainability Index of BM&F Bovespa.

ISE Corporate Sustainability Index (Bovespa)


30/33

THANK YOU

Investor Relations

E-mail: [email protected]

Phone: +55 11 2138-4565

Website: www.fibria.com.br/ir


31/33

Back up


32/33

1,370 1,347 1,358

1,510

1,3011,441

4Q12 3Q13 4Q13Production Sales

4Q13 Results

32

EBITDA (R$ million) and EBITDA Margin (%)Production Cash Cost (R$/t)

Pulp Production and Sales (000 t) Net Revenue (R$ million)

1,853 1,8411,958

4Q12 3Q13 4Q13

Record

446

501

466

4Q12 3Q13 4Q13

+5% 41% 41% 42%

753 762

823

4Q12 3Q13 4Q13

Record


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Net Results (R$ million)4Q13

823 (444)

(185)

810

(5)(118)

(506)

(713) (32)

Adjusted

EBITDA

Rev. (Exp.)

non-recurring /

non-cash

Debt Exchange

Variation /

MtM Hedge

Debt

MtM

Operational

Hedge

Net Interest Depreciation,

amortization

and depletion

IR/CS Other Net Profit (Loss)

Non-recurring impacts

(1) Include non-recurring expenses /non-cash, other exchange and currency variation and other financial incomes and expenditures.

(1)

Refis

Debt HedgeDebt exchange variation

Excluding the non-recurring

effects , profit would

reached approximately R$323 million at 4Q13.

deutsche bank's 10th annual paper

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