January 2015

Corporate Presentation

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.
(1)

29.42%

BNDES
Participaes (1)

30.38%

Free
Float (2)

General
Meeting

40.20%
Fiscal
Council
Board of
Directors

Listed on Novo Mercado, highest CG level at BM&FBovespa:

Finance
Committee

Statutory
Audit
Committee

Personnel and
Remuneration
Committee

Sustainability
Committee

Innovation
Committee

30%
independent
members

100%
independent
members

50% independent
members

45% independent
members

Policies approved by the Board of Directors:

Only 1 class of shares 100% voting rights

Indebtedness and Liquidity

100% tag along rights (Brazilian corporate law establishes 80%)

Market Risk Management

Board of Directors with minimum 20% independent members

Risk Management

Financial Statements in International Standards IFRS

Corporate Governance

Adoption of Arbitration Chamber

Related Parties Transactions

SEC Registered ADR Level III program

Anti-Corruption
Information Disclosure

(1) Controlling group

(2) Free Float 40.14% + Treasury 0.06%

20% independent
members
Role of CEO and
chairman is split

Securities Trading

A Winning Player
Superior Asset Combination

Belmonte
Veracel
Caravelas
Portocel
Aracruz
Trs Lagoas

Main Figures 3Q14 LTM

Pulp capacity

million tons

5,300

Net revenues

R$ billion

7.0

Total Forest Base(1)

thousand hectares

970

Planted area(1)

thousand hectares

562

R$ billion

7.3

Net Debt/EBITDA (in Dollars)(2)

2.5

Net Debt/EBITDA (in Reais)

2.7

Net Debt

Jacare
Santos

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.

Fibrias Units Industrial Capacity

Trs Lagoas Mato Grosso do Sul 1,300 thousand t/year

Aracruz Esprito Santo 2,340 thousand t/year

Jacare So Paulo 1,100 thousand t/year

Veracel Bahia 560 thousand t/year *

* 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
Market Pulp Capacity Ranking 2014(2) (000t)

Industry Outlook(1)

5,300

Fibria

Fiber Consumption
403 million t

APRIL
Arauco

58%

Suzano

42%

Recycled Fiber
234 million t

Pulp
169 million t

Georgia Pacific
CMPC

18%

82%

Mechanical
31 million t

Chemical
139 million t

UPM-Kymmene
Stora Enso
Paper Excellence
Metsa Group
40%

Weyerhaeuser

Market Pulp
55 million t

IP

60%
Integrated Mills
84 million t

Ilim
Sodra

51%

49%
Softwood/Other
27 million t

Bleached Softwood Kraft Pulp (BSKP)

Mercer

Hardwood
28 million t

Bleached Hardwood Kraft Pulp (BHKP)

Domtar
Resolute

35%

65%

Eldorado

Acacia/Other
10 million t

Eucalyptus
18 million t

ENCE

71%
Other Eucalyptus
Pulp producers:
13 million t
(1)
(2)

Unbleached Kraft Pulp (UKP)

Mechanical

Canfor
29%

1.000

Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note - November 2013
Hawkins Wright Outlook for Market Pulp, August 2014

2.000

3.000

4.000

5.000

6.000

Fibrias Commercial Strategy

Differentiation: Customized pulp products to specific paper grades

Sole supplier to key customers

Long term contracts

Competitive logistics set up

Fibrias Pulp End Use

Printing &
Writing
30%

Tissue
51%

Speciatilies
19%

40%
Europe

25%

Lustenau

N.America

26%
Asia

Miami

Hong Kong

9%
L.America

So Paulo

Fibrias Sales Distribution

Fibria s Offices

Source: Fibria 3Q14 LTM

Door to Door Operations

Pulp mill
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

Pulp and Paper Market

Paper Consumption
CAGR 1996 2006
Developed Markets: + 1.7%
Emerging Markets : + 6.0%

117,611

CAGR 2007 2016

Developed Markets: - 4.0%
Emerging Markets : + 4.1%

114,507

85,291

P&W
Consumption
(000 tons)(1)

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

CAGR 2007 2016

Developed Markets: + 1.4%
Emerging Markets : + 6.7%

CAGR 1996 2006

Developed Markets: + 2.4%
Emerging Markets : + 6.9%

37,474

26,877
15,548

Tissue
Consumption
(000 tons)(1)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Developed Markets
(1) Source:

RISI

Emerging Markets

Global Market Pulp Demand

Hardwood demand will continue to increase at faster pace than Softwood

Hardwood (BHKP) vs. Softwood (BSKP) (000 ton)

Demand growth rate

2013 - 2018 CAGR:

Hardwood: +2.8%
Softwood: +0.7%
35.000

Million tons

1998

2008

2018

Growth
1998-2008

Growth
2008-2018

Hardwood

15.0

24.5

32.8

63%

34%

Eucalyptus

6.0

14.2

23.4

137%

63%

Softwood

17.6

21.6

24.8

23%

15%

Market Pulp

32.6

46.1

57.1

30.000
25.000
20.000
15.000
10.000
5.000

Hardwood

Source: PPPC

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

Softwood

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
APP South
Sumatra(2)

1.000
900

1,8
1,6

Rizhao

Maranho

Trs
Lagoas

700
APP
Hainan

600
500

400

Eldorado

Montes
del Plata

1,4
Guaba II

Fray
Bentos
Mucuri
Veracel Nueva Aldea
Santa F

Valdivia

1,2

Klabin

1,0
Chenming
Zhanjiang

Kerinci
PL3

Capacity (000 ton)

800

BHKP prices - CIF Europe (US$/ton)

2,0

0,8

APP Guangxi

300

0,6

200

0,4

100

0,2

0,0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Sep/14), Brian McClay (Nov/14) and RISI (Nov/14)
(2) Partially integrated production

14

Capacity closures DO happen

Closures of Hardwood Capacity Worldwide

(000 ton)
-85

-105

-540

-500

-830
-910
-1,085
-1,180
-1,260
2006

2007

2008

2009

2010

2011

2012

2013

2014-2016 E
as of Oct14

Source: PPPC and Fibria

15

Total delivered cash cost will also have an influence on bottom prices
Total Cash Cost of BHKP delivered to Europe (US$/t)

Capacity
(k tons):

1,775

660

595

570

1,570

1,045

2,415

335

625

3,745

340

1,010

3,950

7,450

5,300

3Q14 net price:

US$ 554/t

Interest
71

46

69

41

86

121

34

38

24
41

142

48
498

508

456

468

420

404

424

424

Custo Caixa (US$/t)

406

342

55

38

67

315

311

297

= 31,385

Interest
Capex

Income Tax
SG&A

111

54
66

235

Positive Working
221 Capital: US$5/t

Entrega (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, September 2014) | Fibrias 3Q14 considering a FX of R$/US$2.27.
Gray bar includes cash expenses as Interest, CAPEX, SG&A and Taxes (Source: RISI and Fibria).

16

Tissue Market
Per Capita Consumption of Tissue by Region, 2013(1)
Kg/capita

World Tissue Consumption, 1991-2013(1)

Million tons

35

LTM Growth of
+4.2%

30
30

25
24

25

20

Growth
Potential

20
15

15

15

15

10
12

10

5
1

0
N.
West Japan Oceania East LatAm
America Europe
Europe

(1) Source:

RISI

China

Africa

1991

1996

2001

2006

2009

2010

2011

2012

2013

N.America

W.Europe

E.Europe

L.America

Middle East

Japan

China

Asia FE

Oceania

Africa

Pulp Projects Backlog

Even though there is an extensive pulp projects backlog, there are important question marks regarding
new projects
Main Questions About Capacity

Minimum required return for new projects

Closures due to increasing costs worldwide, reduction of maintenance capex (higher technical age of recovery boilers) and
exchange rates
Fiber substitution: Softwood x Hardwood and Recycled x Virgin Fiber

Main Projects
Project

Country

Capacity

Timing

Status

CMPC Guaba II

Brazil

1.3 Mt

2Q2015

Confirmed

Klabin Paran

Brazil

1.5 Mt*

2Q2016

Confirmed

APP South Sumatra

Indonesia

1.5 Mt 2.0 Mt

4Q2016

Confirmed

Fibria Trs Lagoas II

Brazil

1.75 Mt

Unconfirmed

* 1.1 million tonnes of hardwood and 400 thousand tonnes of softwood

Financial Highlights

3Q14 Results
Net Revenue (R$ million)

Pulp Production and Sales (000 t)

1.347
1.301

3Q13

1.334

1.345

1.372

1.271

1.841

2Q14

1.694

1.746

2Q14

3Q14

3Q14

Production

3Q13

Sales

EBITDA (R$ million) and EBITDA Margin (%)

Cash Production Cost (R$/t)

41%
482 501

3Q13

559
486

2Q14

Cash cost ex-scheduled downtimes

478 502

35%

35%

762
594

613

2Q14

3Q14

3Q14
Cash cost

3Q13

20

Indebtedness

Debt (US$ million) x Leverage (US$)

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

7.5
6.3
4.1

8.6

4.2

3.3

2.6

6.3

2.5
3.5

2009

2010

2011
Gross Debt

2012

2013

473

5.9
414

5.5
408

5.2

4.6

350
268

3.0

Sept/2014

2009

2010

2011

3.7

2012

2013

217

LTM 3T14

Net Debt

Free Cash Flow

Increase

Interest
Reduction

Cost of Debt
Reduction

This dynamics
creates a virtuous
cycle

21

Debt Profile
Average Term: 55 months
Early redemption
bond 2019

2.797

Debt
Amortization
Schedule at
Sep/2014
(R$ Million)

Average Cost: 3.7% p.y.

1.536
(revolver)

1.353
888
1.261

1.258

842

1.449
1.041
616

560

511

(cash)

Liquidity

2014

2015

Pre-payment

2016
BNDES

Cost of Debt
Foreign Currency (% p.a.)

2017

2018
ECN

2019

2020

2021

ACC/ACE

49

2022

2023

Voto IV

2024

Bonds

Debt by Currency

7%

4.5%
4.0%
93%

Sep/13

Sep/14

Local Currency
Foreign Currency

22

Net Result (R$ million) 3Q14

613

562
(51)
FX Debt

MtM
Debt
hedge

(799)

13

Current

(91)

(359)

92
Differed

Adjusted
EBITDA

(1)

Non-recurring
effects/
non-cash

EBITDA

FX Debt /
MtM hedge

MtM
operational
hedge

Net interest

(475)

339

Deprec.,
amortiz. and
depletion

Taxes

Other

(1)

Net Profit
(Loss)

Includes other exchange rate/monetary variations and other financial income/expenses.

23

Investor Relations
E-mail: ir@fibria.com.br
Phone: +55 11 2138-4565
Website: www.fibria.com.br/ir