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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 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.
The Company
Shareholder Structure
Votorantim Industrial S.A. BNDES Participaes Free Float
29.42%
30.38%(1)
40.20%(2)
31%
NYSE
Level III
69%
BM&FBOVESPA
HIGHLIGHTS
Listed on Novo Mercado, highest level of Corporate Governance at BM&FBovespa:
Policies approved by the Board of Directors Liability and liquidity management Only 1 class of shares 100% voting rights Market risk Management 100% tag along rights (Brazilian corporate law establishes 80%) Risk Management Board of Directors with minimum 20% independent members Corporate governance Financial Statements in International Standards IFRS Information disclosure Adoption of Arbitration Chamber Stock trading Listed in the most important sustainability indexes
(1) Position as of June 30, 2013. Under the shareholders' agreement between BNDESPar and Votorantim Industrial, BNDESPar must hold at least 11% of the total capital between Oct/12 and Oct/2014. (2) Free Float 40.14% + Treasury 0.06%
A Winning Player
Superior Asset Combination Main Figures 1Q13
Pulp capacity
million tons
Net revenues
Total area (1) Planted area(1)
Belmonte Veracel Caravelas Portocel Aracruz Trs Lagoas Jacare Santos
R$ billion
thousand hectares thousand hectares R$ billion X X
Net Debt Net Debt/EBITDA (in Dollars)(2) Net Debt/EBITDA (in Reais)
Port Terminal
Pulp Unit
Source: Fibria (1) Including 50% of Veracel, excluding forest partnership areas and excluding the forest base linked to the sale of forest assets in Southern Bahia State and Losango. (2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.
* Veracel is a joint venture between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year
Fibrias Strategy
Leadership Position
Industry Outlook(1)
Paper & Board 405 million t
5,300
Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical
ENCE
Canfor
31%
1000
2000
3000
4000
5000
6000
Paper&Board, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note Feb 2013 considers 2012 demand Hawkins Wright Outlook for Market Pulp, January 2013
Speciatilies 19%
42%
Europe
22%
N.America
Nyon
Csomd
26%
Miami
Asia
Hong Kong
10%
L.America
So Paulo
Outbound Logistics
Forest
Integrated logistics solutions Low forest to mill average distance
Easy access to the most efficient transportation network: rail, barging and road
Portocel: specialized port for the pulp and paper industry Efficient Logistics Setup
Client
Port
Sea Freight
10
Paper Consumption
CAGR 1996 2006 Developed Markets: + 1.7% Emerging Markets : + 6.0%
85,291
117,611
114,507
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Developed Markets
Emerging Markets
37,474
Emerging Markets
RISI
Million tons
1996
2006
2016
Growth 20072016
27%
30.000
25.000 20.000 15.000 10.000 5.000
Hardwood
14.3
22.4
29.9
Eucalyptus
5.4
11.1
21.4
106%
67%
Softwood
2000 2002 2004 2006 2008 2010 2012 2014 2016
1996 1997 1998 1999 2001 2003 2005 2007 2009 2011 2013 2015
16.4 30.8
22.0 44.4
24.1 54.0
35%
7%
Market Pulp
Hardwood
Softwood
Source: PPPC
Gross capacity addition should not be counted as the only factor influencing pulp price volatility
1.000 900
Eldorado
2,0 1,8
Guaba II
800
700
Trs Lagoas APP Hainan Nueva Aldea Santa F Valdivia Kerinci PL3 APP Guangxi Chenming Zhanjiang Fray Bentos Mucuri
1,4
600
500 400
1,2
1,0 0,8
Veracel
300
200 100
0,6
0,4 0,2
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0,0
Rizhao
Maranho
1,6
-85
-105
-540
-500
-910
Source: PPPC and Fibria (1) Mills: Jari, Sappi Cloquet, Double A (Advanced Agro), Sodra Tofte and Ilim Group
15
551
119 432 42 498 86 421 45 459 36 439 36 382 47 328 65 320 52 314 69 271
305
51 254
Delivery (US$/t)
Source: Hawkins Wright (Outlook for Market Pulp, May 2013) | Fibrias 1Q13 cash cost divided by FX considered in the report R$/US$2.0096
Tissue Market
Per Capita Consumption of Tissue by Region, 2012(1)
Kg/capita
24.3
14.8
Growth Potential
20 15 10
5 0
1991 N.America Japan 1996 2001 2006 E.Europe Asia FE 2009 2010 2011 2012 W.Europe China L.America Oceania Middle East Africa
W. Europe
E. Europe
Oceania
Japan
China
(1) Source:
N. America
RISI
L. America
N&M East
Main Projects
Project Eldorado Arauco / Stora Suzano CMPC Guaba II Klabin Paran Fibria Trs Lagoas II APP South Sumatra Cenibra Belo Oriente II Country Brazil Uruguay Brazil Brazil Brazil Brazil Indonesia Brazil Capacity 1.5 Mt 1.3 Mt 1.5 Mt 1.3 Mt 1.5 Mt* 1.5 Mt 1.5 Mt 2.0 Mt 800 kt Timing 4Q2012 3Q2013 4Q2013 1Q2015 1Q2016 Status Launched Confirmed Confirmed Confirmed Confirmed Unconfirmed Unconfirmed Unconfirmed
Financial Highlights
1Q13 Results
PRODUCTION AND SALES VOLUME (000 t) NET REVENUES (R$ million)
1,510
1,186 1,263 1,274 1,853
+14%
1,449
1Q12 Production
4Q12 Sales
507
+9 p.p.
41% 30% 753 565 377 39%
455
444
1Q12
446 446
4Q12
463
21
Debt Profile
2,871
2013 Bond
2014
2015 Pre-payment
2016
2017 BNDES
2018 ECN
2019
2020
2021
Export Credit/Others
Debt by Currency
5.5% 5.2%
8%
92%
Local Currency Foreign Currency
Mar/12
Mar/13
21
Debt
NET DEBT(R$ million) and LEVERAGE (x)
5,2 4,8
4,7
8,965
4,2 8,462
1Q12
Closing FX (R$/US$) 1.82
2Q12
2.02
3Q12
2.03
4Q12
2.04
1Q13
2.01
-10%
11,031
10,768
9,898
R$1.1 billion reduction in gross debt in 12 months.
1Q12
4Q12
1Q13
22
565
(249)
(80) (60)
Adjusted EBTIDA CAPEX Interest Working Capital
167 (4)
Taxes
(5)
Other Free Cash Flow
- Free cash flow totaled R$167 million in 1Q13 - LTM free cash flow of R$782 million
Investor Relations
E-mail: ir@fibria.com.br Phone: +55 11 2138-4565 Website: www.fibria.com.br/ir
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