Corporate Presentation

September, 2012

Disclaimer

The information contained in this presentation may include statements which constitute forwardlooking 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 forwardlooking 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 forwardlooking statements, which speak only for the date on which they are made.

The Company

VCP and Aracruz Merged to Create Fibria

Shareholder Structure

Votorantim Industrial S.A.

BNDESPar 30.38%(1)

Free Float

29.42%

40.20%(2)

EQUITY OFFERING (April 2012)

-86 million shares issued -Unit price: R$15.83/share or US$8.43/ADR - VID and BNDESPar maintained their
previous position in the company
(1)

Position as of August 31, 2012. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years (until October 2012) and 11% during the following 2 years (from October 2012 to October 2014). (2) Free Float 40.14% + Treasury 0.06%

Improved Corporate Governance

Highlights
Listed on Novo Mercado, highest level of Corporate Governance at BM&F Bovespa
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

Board and Committees

Shareholders Meeting

Fiscal Council

Board of Directors

9 Members: 20% Independent Chairman CEO

Adoption of Arbitration Chamber

Listed in the most important sustainability indexes

Board Advisory Committees(1)

Audit and Risks Personnel and Remuneration Finance Sustainability Innovation

Policies approved by the Board of Directors

Liability and liquidity management Market risks Corporate governance Information disclosure Stock trading

Executive Officers

(1) Members performance assessed by independent consulting firm

A Winning Player
Superior Asset Combination Main Figures 2Q12 LTM

Pulp capacity Net revenues Total area Planting area(1)

Belmonte Veracel Caravelas Portocel Aracruz

million tons R$ billion thousand ha thousand ha R$ billion X X

5.25 5.6 1,066 603 8.5 4.2 4.7

Net Debt Net Debt/EBITDA (in Dollars)(2) Net Debt/EBITDA (in Reais)

Trs Lagoas Jacare Santos

Port Terminal

Pulp Unit

Source: Fibria (1) As of June 30, 2012, including 50% of Veracel, excluding forest partnership areas (114 thousand ha) and excluding the forest base linked to the sale of forest assets in Southern Bahia State (2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.

Fibrias Units Industrial Capacity

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 (50% JV)

Fibrias Strategy

Clear Leadership Position

Industry Outlook (1)

Paper & Board 402 million t

Market Pulp Capacity Ranking 2010(2) (000t)

Fibria APRIL Arauco

5,250

57% Recycled Fiber 228 million t

43% Pulp 174 million t

Georgia Pacific CMPC Sodra Suzano Paper Excellence Weyerhaeuser UPM-Kymmene

37% Market Pulp 53 million t 50% 50% Hardwood 27 million t

20% Mechanical 34 million t

80% Chemical 140 million t

63% Integrated Mills 87 million t

Stora Enso Domtar Ilim IP Mercer ENCE

63% Eucalyptus 17 million t

Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical

Softwood/Other 26 million t

37% Acacia/Other 10 million t

West Fraser Canfor

Metsa Fibre
Cenibra
30%

70% Other Eucalyptus Pulp producers: 12 million t

(1) (2)

1000

2000

3000

4000

5000

6000

Paper&Board, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note Feb 2012 considers 2011 demand Hawkins Wright Outlook for Market Pulp, July 2012

Relevant Market Share and Competitive Position in the Cost Curve

Fibrias Market Share (1)

Average Cash Cost of BHKP delivered to Europe(2) (US$/t)

SG&A Maintenance Capex Financial Expenses

1000 10% 19% 800

Mill Cash

Delivery

600
132 400 200 453

70 85 510 420

41

36 457

43 415

33 388

57 333

68 307

454

50 274

55 232

Total Market Pulp: 52.6 million t

Total Hardwood Market Pulp: 26.7 million t

30%

Hardwood Cash Cost (US$/t) vs Capacity (mt)

700 600
Cash cost (US$/t)

500 400 300 200 100

Total Eucalyptus Market Pulp: 17.2 million t

Low Cost producers: 15mt

6.0 mt of HW market pulp with total delivered cash cost above US$500/t

(1) (2)

PPPC Special Research Note Feb 2012 considers 2011 demand Source: Mill Cash and Delivery: Hawkins Wright March 2012 Report | SG&A, Maintenance Capex and Financial Expenses: Fibrias estimates | Fibria 2Q12 figures

0 1000 5000 10000 15000 000 tons 20000 25000 30000

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Exchange Rates and Inflation Affect the Cost Structure

Exchange Rate Currencies Evolution versus Dollar (Jan03 = 100)
230 210 190 170 150 130 110 Canadian Dollar: 48% Chilean Peso: 27% Real: 106%

90
70 50

Rupia: 2%

Cost Structure
Global producers have been impacted by: Wood: cost of land and minimum wage growth above inflation Chemicals / energy / water: global demand for commodities add pressure on main raw materials On top of that, Brazilian producers have also been impacted by: Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices Labor: cost in Brazil in dollar terms is higher than in some developed countries

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Global Presence
Fibrias 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 contracts

26%
N.America

Europe

43%

Nyon Miami

Csomd

20%
Asia

Hong Kong

L.America

11%

So Paulo

Source: Fibria 2Q12

Fibria Sales Distribution

Fibria Offices

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Focus on Premium End-Uses

Fibria's Pulp Destination

Printing&Writing 29%

Market Pulp Destination

43%

2010-2025 Demand Growth (CAGR)

1%

Tissue

56%

24%

4%

Specialities

15%

14%

3%

Newsprint

0%

Containerboard

8%

5%

Others

11%

3%

Source: Fibria 2Q12 Earnings Results, PPPC, RISI and Fibria

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Financial Highlights

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Quarter Highlights
EBITDA (R$ million) and EBITDA Margin (%)
34% 37% 30% 1H12 x 1H11: Production: +1%

Pulp Production and Sales

1,332
490 377 550 1,313 1,271 1,230 1,275 1,265

Sales: +4%

2Q11

1Q12

2Q12

2Q11

1Q12

2Q12

production (000 t)

sales (000 t)

Cash Cost without downtimes (R$/t)

-1.5% (R$7/t)
Inflation: +4.9% 462 455 444 Operating excellence more than offset inflation on cost

Pulp sales (%)

Mix per Region
Other 11% North America 26% Asia 20%

End Use

Specialties 15%

Europe 43%

Printig&W riting 29%

Tissue 56%

2Q11

1Q12

2Q12

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Debt
Debt (R$ million)
93% of debt in foreign currency
R$2.02 +30% 1.8 1.0 +6% 0.7 3.3 1.5 2020 Senior Notes Reclassification 1.0

Debt Amortization Schedule (R$ billion) Jun/12

Closing FX R$1.56

1.0

0.7

0.7

0.9

0.7

0.5

10.4 8.0

11.0 9.0

11.9 10.9 8.5

0.8 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Debt Profile and Liquidity

Jun-11 Gross Debt

Mar-12 Net Debt

Jun-12 Gross Debt after Bond Tender Offer*

69

66

61

Average maturity (months)

5.5

2020 Senior Notes Tender Offer (Jul/2012): Amount: US$514 million Coupon: 7.5% p.a.
2.1

5.4

5.2

Cost of debt foreign currency (% p.a.)

3.4

2.4
Cash (R$ billion)

1Q12
(1) Includes

2Q12

the 2020 Senior Notes tender offer of US$514 million in Jul/2012

2Q12 after tender offer*

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Investor Relations E-mail: [email protected] Phone: +55 (11) 2138-4565 Website: www.fibria.com.br/ir

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