banco votorantim - meeting with investors
TRANSCRIPT
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Meeting with Investors Banco VotorantimDecember, 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 ExchangeAct of 1934, as amended. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to business, financial, trend, strategy and otherforecasts, and are based on assumptions, data or methods that, although consideredreasonable by the company at the time, may turn out to be incorrect or imprecise, ormay not be possible to realize. The company gives no assurance that expectationsdisclosed in this presentation will be confirmed. Prospective investors are cautionedthat any such forward-looking statements are not guarantees of future performanceand involve risks and uncertainties, and that actual results may differ materially fromthose in the forward-looking statements, due to a variety of factors, including, but notlimited to, the risks of international business and other risks referred to in thecompanys filings with the CVM and SEC. The company does not undertake, andspecifically disclaims any obligation to update any forward-looking statements, whichspeak only for the date on which they are made.
Disclaimer
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Company Overview1Pulp and Paper Market2Financial and Operational Highlights3
Agenda
Final Remarks
4
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Company Overview
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A Winning Player
Port Terminal Pulp Unit
Trs Lagoas
Santos
AracruzPortocel
Caravelas
BelmonteVeracel
Jacare
Superior Asset Combination 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
Net Debt R$ billion 7.3
Net Debt/EBITDA (in Dollars) (2) X 2.5
Net Debt/EBITDA (in Reais) X 2.7
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.
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Fibrias 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
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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
Sales Mix by Region - Fibria
Europe39%
N.America
26%
Asia25%
Other10%
Region - 3Q14
Tissue55%
Printing &Writing
27%
Specialty18%
End Use - 3Q14
Highlights
30%20%
29% 29% 24% 18%26% 26% 30% 22% 28%
31% 30%19% 22% 26%
37%46%
46% 41%35% 44%
43% 41% 36% 42%43% 35% 36%
46% 42% 39%
22% 25%14% 20%
31% 28%20% 23% 25% 26%
21% 26% 26% 26% 27% 25%
11% 9% 11% 10% 10% 10% 11% 10% 9% 10% 8% 8% 8% 9% 9% 10%
4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
North America Europe Asia Other
Fibrias Commercial Strategy
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(1) Controlling group(2) Free Float 40.14% + Treasury 0.06%
VotorantimIndustrial S.A.
(1)29.42%
BNDESParticipaes (1)
30.38%
FreeFloat (2)
40.20%
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
FiscalCouncil
Board ofDirectors
20% independentmembers
Role of CEO andchairman is split
Personnel andRemuneration
Committee
StatutoryAudit
Committee
FinanceCommittee
SustainabilityCommittee
InnovationCommittee
GeneralMeeting
Listed on Novo Mercado , highest CG level at BM&FBovespa: Policies approved by the Board of Directors:
Shareholder Structure and Corporate Governance
30%independent
members
100%independent
members50% independent
members45% independent
members -
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Today, according to public information, there will be a 10% increase of thepulp market capacity between 2014 and 2016
SOFTWOOD(1)
25.5 MT
HARDWOOD(1)
31.1 MT
MARKET PULP(1)
56.6 MT+ =
2014-2016 (3):
New capacities: 6.0 mt
Announced Closures: (1.0) mt
Net: 5.0 mt
2014-2016 (2):
New capacities: 0.7 mt
Announced Closures: (0.4) mt
Net: 0.3 mt
2014-2016:
New capacities: 6.7 mt
Announced Closures: (1.4) mt
Net: 5.3 mt
(1) Source: PPPC Special Research Note May 2014 does not include Sulphite and UKP(2) Projects included: Paper Excellence (70kt); UPM Kymi (170kt); Klabin (200kt); Sodra Vr (275kt)| Closures: Birla AV Terrace Bay (350kt)(3) Projects included: Maranho (1.5mt); Montes del Plata (1.3 mt); Oji Nantong (700kt); Eldorado (200kt); CMPC Guaba II (1.3 mt); Klabin Ortigueira (1.0mt) | Closures: April Rizhao
(130kt); Arauco Valdivia (300kt); Old Town (200kt); Ence Huelva (400 kt).
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Global Market Pulp Demand
Demand growth rate
Hardwood (BHKP) vs. Softwood (BSKP) (000 ton)
Hardwood demand will continue to increase at a faster pace than Softwood
Source: PPPC
Source: PPPC. Excludes Sulphite and UKP market pulp.
NBSK vs. BHKP - Prices(1)
(1) Source: FOEX |Average spread in the last 5 years.
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
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
Hardwood Softwood
2013 - 2018 CAGR:Hardwood: +2.8%Softwood: +0.7%
000 ton 1998 2008 2018Growth1998-2008
Growth2008-2018
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
Paper Production Runnability with BHKP
Source: RISI conference, August 2014.
400
500
600
700
800
900
1000
1100
0
50
100
150
200
250
Spread Average spread BHKP NBSK
Average spread:US$112
Spread Nov/14:US$197
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Supply structural changes puts pressure on the industry
MARKET PULP CAPACITY RANKING 2014(000T) MAIN PROJECTS
Project Country Capacity Timing Fiber Status
CMPC Guaba II Brazil 1.3 Mt 2Q2015 BEKP Confirmed
Klabin Paran Brazil 1.5 Mt 2Q2016 BEKP/BSKP/Fluff
Confirmed
APP South Sumatra Indonesia 2.0 Mt 1Q2017 BHKP Confirmed
Fibria Trs Lagoas II Brazil 1.75 Mt - BEKP Unconfirmed
COST CURVE EVOLUTION
U S D
/ A
d t , 2 0 1 3 c o s t
l e v e
l
Cumulative Capacity Million t/a
Cost positionof marginal
producer
Source: Hawkins Wright , Poyry and Fibria Analysis (as of Aug. 2014).
0 2000 4000 6000
CanforENCE
EldoradoResolute Forest
DomtarMercer
SodraIlim
IPWeyerhaeuser
Metsa GroupPaper Excellence
Stora EnsoUPM-Kymmene
CMPCGeorgia Pacific
SuzanoArauco
APRIL
Fibria
Bleached Softwood Kraft Pulp (BSKP)
Bleached Hardwood Kraft Pulp (BHKP)
Unbleached Kraft Pulp (UKP)
Mechanical Pulp (MP)
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Gross capacity addition should not be counted as the only factorinfluencing 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
APPHainan
Veracel Nueva Aldea
Santa F
Mucuri
FrayBentos
KerinciPL3
TrsLagoas
Rizhao
APP Guangxi
ChenmingZhanjiang
Eldorado Montesdel Plata
Maranho
Guaba II
APP SouthSumatra (2)
Klabin
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 (Sep/14), Brian McClay(Nov/14) and RISI (Nov/14)(2) Partially integrated production
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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
STRONGWeighted average
technical age 12.3 years
Weighted averagecapacity 1,277,000 t/a
Aracruz
Trs La go 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 averagetechnical age 21 years
Weighted averagecapacity 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
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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
-830
2006 2007 2008 2009 2010 2011 2012 2013 2014-2016 Eas of Oct14
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Lowest Volatility Among Commodities
Change Nov/2014 vs. Nov/2013 (3)
38%
32% 30%26% 25%
21%16%
7%
Sugar Iron Ore WTI CrudeOil
Soy LME Metals Ibovespa Cattle FOEX PIXBHKP
Sugar Iron Ore Crude Oil SoyLME
MetalsIbovespa Cattle Pulp BHKP
Commoditiy Spot Price -7% -49% -21% -21% - - 28% -5%
S&P Sector Index (2) -7% -22% -17% -21% 2% 7% 28% -
FIBR3|FBR - - - - - - - 7%|-3%
Commodities Historical Volatility (US$) (1)
(1) Since 2009 | (2) Except Iron Ore (Average Vale, Rio Tinto and BHP) and LME Metals | (3) November, 26th
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Total Cash Cost of BHKP delivered to Europe (US$/t)
Source: Hawkins Wright (Outlook for Market Pulp, September 2014) | Fibrias 3Q14 considering a FX of R$/US$2.27.Gray bar includes cash expenses as Interest, CAPEX, SG&A and Taxes (Source: RISI and Fibria).
3Q14 net price:US$ 554/t
Positive WorkingCapital: US$5/t
SG&A
Capex
Interest
Among the industrys lowest cash cost producers
498 508 456 468 420 404 424 424 406342 315 311 297
235 221
71 4669 41 86 121 34 38 41
48 55 38 67111
6654
14224
Cash Cost (US$/t) Delivery (US$/t)
Income Tax1
Interest
Capacity(k tons): 1,775 660 595 570 1,570 1,045 2,415 335 625 340 7,450 = 31,3853,745 1,010 3,950 5,300
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Shipments of Eucalyptus Pulp (1)
(1) Source: PPPC World 20 December/2013
6%12%
-1%
23%
Total North America Western Europe China
+844 kt -37 kt
+674 kt +185 kt
2013 vs. 2012 10M2014 vs. 10M2013
+1,400 kt
+60 kt +255 kt+680 kt
+403 kt
11%
4% 5%
25%
12%
Total NorthAmerica
WesternEurope
China Other
Global Market BEKP Demand
Ktons 2013 2014E 2015E Total
P&W (woodfree) 385 150 576 1,111
Tissue 1,029 1,831 471 3,331
Cartonboard 2,128 1,616 180 3,958
Total 3,542 3,631 1,227 8,400
Paper Capacity increase in China
(1) Source: PPPC World 20 October/2014
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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 6 5
10
5
10
15
20
25
30
N.America
WestEurope
Japan Oceania EastEurope
LatAm China Africa
9 11 1316
26
1721 20
23
79 10
12
22
1620 19
2110
1012
14
21
17
2223 23
0
2.000
4.000
6.000
8.000
10.000
12.000
2005 2006 2007 2008 2009 2010 2011 2012 2013
Eucalyptus Hardwood Total
5.988
2.436
1.482 1.713
184 12747
6.403
3.037
1.593 1.592
141 26 130
1.000
2.000
3.000
4.000
5.0006.000
7.000
BHKP Total LatinAmerica
Indonesia Other* USA Canada WesternEurope
9M2013 9M2014
Latin America is theleading exporter of BHKP
to China, accounting toapproximately 47% ofChina's total imports in9M2014.
(Kg/capita/year)
(million t)(000s t) (kg/person/year)
Between 2005 and 2013,the Chinese market shareof eucalyptus shipmentsincreased by 14 p.p.(total market pulp: + p.p.)
* includes Russia, China, Thailand and New Zealand
05
1015202530
35
1991 1996 2001 2006 2009 2010 2011 2012 2013N.America W.Europe E.Europe L.AmericaMiddle East Japan China Asia FEOceania Africa
LTM Growth
Rate +4.2%
Benefiting From Chinas Growth
Chinas Hardwood Imports of BHKP by Country (1)
(1) PPPC Pulp China
(2) PPPC W20. Coverage for chemical market pulp is 80% of world capacity(3) RISI
(In percentage)
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No exposure eletricity shortage risks in spite of which the company
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No exposure eletricity shortage risks, in spite of which the companyhas benefited from the sale of its surplus energy
Energy sales and operational efficiency have contributed for cash production cost stability.(Utilities: 3Q14: R$ 34/t I 2Q14: R$ 36/t I 3Q13: R$ 12/t)
501 502
4 18 ( 23 ) 2
3Q13 MaintenanceDowntimes
Wood Utilities Other 3Q14
+ 0.2%
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FX and Pulp Price explain 80% of Fibrias EBITDA Margin
(1) Excludes Conpacel | (2) 2014 year end market consensus | (3) According to Focus Report (Brazilian Central Bank Oct/2014) | (4) According to Poyry full cost estimate - includes Manufacturing +Delivered costs to Rotterdam + Depreciation + ROCE of 9%
Each 10% depreciation of the Real increases EBITDA by approx. R$600 million
1,522
2,5261,964 2,253
2,796 2,708
2009 (1) 2010 (1) 2011 2012 2013 LTM 3Q14 2015
2.00 1.761.67
1.952.10
2.29 2.50 (3)
Exchange Rate Average (R$/US$)
EBITDA Margin
EBITDA (R$ million)
29%40% 34% 36% 40% 38%
Marginal producer cost (US$/t) (4)
Fibria net pulp price(US$/t)
MarketConsensus
456
670 639581
610 572 556
660627
676657
680 676912
1,1791,067 1,133
1,2811,310 1,390
Fibria net pulp price(R$/t)
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Fibria delivers one of the highest EBITDA/t and FCF/t of the industry
Free cash flow generation - 3Q14 LTM (R$ Million)
Free Cash Flow per ton - 3Q14 LTM (R$/ton) (1)
2,708
1,119(1,509)
(370)
317
(20) (7)
Adjusted EBITDA Capex Interest(paid/received) Working Capital Taxes Other Free Cash Flow
507
210(283)
(69)
59(4) (1)
Adjusted EBITDA Capex Interest(paid/received)
Working Capital Taxes Other Free Cash Flow
(1) Does not include: asset sales, expenses on bonds repurchase, expenses related to the REFIS on subsidiaries profits abroadand tax credits from theBEFIEX program.
C i l S Fib i h hi d h l l i
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Net Debt/EBITDA (x) (1)
Fibria Arauco CMPC Klabin Suzano
S&P BB+/Positive BBB-/Stable BBB+/Negative BBB-/Negative BB/Stable
Moodys Ba1/Positive Baa3/Stable Baa3/Negative - Ba2/Stable
Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Negative BB/Stable
(1) Fibrias historical data in BRL. | (2) Market consensus.
Capital Structure: Fibria has achieved the lowest leverage ratio amongits Latin American peers
2.4 2.3
2.72.6
4.8 4.5 4.54.2
1.7 1.72.4
2.72.9 3.13.1
3.73.6 3.7 3.6
14.813.2
11.711.1
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 2014
Fibria Suzano Klabin CMPC Arauco Eldorado
2
C i i f h li bili l l f i
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Continuation of the liability management plan, also focusing onimproving maturities
1,064384 530 750 554 634
2,0201,341
-
410
450 299506
422 128
149
1001,473
834 8291,255
976 762
2,168
1,441
26 4
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Cost of debt: 4.6%
Average maturity: 52 months
December 2013
Local CurrencyForeign Currency
September 2014Cost of debt: 3.7%Average maturity: 55 months
Local CurrencyForeign Currency
Land Deal
Bond buyback: Fibria 2020,2021 and VOTO IV
Fibria 2024 issuance
Bank loans renegotiations
Lower cost of debt
Smoother debt amortizationschedule
Estimated NPV of allinitiatives until the endof 2014: US$300 million
183 173 210335 332 369
178 153
59145
190 133
217 181 56
73 56228
363 343552 513 425
251 208
20 3
591
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
B t th i iti ti h t fi i h d Th t i i
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But the initiatives have not finished. There are certain ongoingnegotiations that will improve Fibrias debt profile even further
26
Repurchase of costly debt
Issuance of a Syndicated EPP (US$400 MM) Joint Bookrunners: BNP Paribas and Natixis (full commitment)
Tranche A: L + 1.30% p.a.| 5 year term loan with the amortization starting at the end of year 4.Cost reduction of 32.5 bps from our last comparable EPP.
Tranche B: L + 1.40% p.a. | 5-year Term Loan with a bullet repayment.Average term increase of 1 year and cost reduction of 22.5 bps from our last comparable EPP.
Tranche C: L + 1.55% p.a. | 6-year Term Loan with the amortization starting on Jan/2020.Average term increase of 1.5 years and cost reduction of 7.5 bps from our last comparable EPP.
514(cash)
627
(revolver)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Other ACC/ACE ECN BNDES Bond EPP
FCF 3Q14 LTM: US$489 mn
Amortization Schedule Pro-forma Dec/14 - US$ mn
A i t t d di i li d h f d d i g d bt
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A consistent and disciplined approach focused on reducing debtand its cost
Debt (US$ million) x Leverage (US$) Interest (US$ million) x Cost of Debt (US$)
Free Cash FlowIncrease
InterestReduction
Cost of DebtReduction
This dynamicscreates a virtuous
cycle
8.6
3.5
6.3
3.0
2009 2010 2011 2012 2013 Sept/2014
Gross Debt Net Debt
7.5
4.1 4.23.3
2.6 2.5473
414 408350
268217
2009 2010 2011 2012 2013 LTM 3T14
6.3 5.9 5.55.2 4.6 3.7
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New issuance better priced than Investment Grade issuers
Rating Maturity Volume T-Spread Coupon X Book Fibria Ba1 / BBB- / BB+ 2024 US$600 mn 275 bps 5.25% 11.5x
Braskem Baa3/BBB-/BBB- 2024 US$500 mn 340 bps 6.45% 11.0x
Petrobras Baa1/BBB/BBB 2024 US$2.5 bn 350 bps 6.28% 3.3x
Klabin BBB-/BBB- 2024 US$500 mn 269 bps 5.25% 6.0x
Samarco BBB-/BBB 2024 US$500 mn 288 bps 5.375% 3.6x
Rating Maturity Volume G-Spread YieldFibria Ba1 / BBB- / BB+ 2024 US$600 mn 289 bps 5.047%Braskem Baa3/BBB-/BBB- 2024 US$500 mn 362 bps 5.742%Klabin BBB-/BBB- 2024 US$500 mn 332 bps 5.490%Odebrecht Baa3/BBB-/BBB 2023 US$800 mn (1) 297 bps 5.017%Petrobras Baa1/BBB/BBB 2024 US$2.5 bn 368 bps 5.817%Gerdau Baa3/BBB-/BBB- 2023 US$750 mn 308 bps 5.130%Samarco BBB-/BBB 2024 US$ 500 mn 366 bps 5.848%
(1)Outstanding: US$102 mn
Secondary Market - As of Nov 28, 2014
Issuance
Cash Production Cost saw a annual increase
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Fibria Cash Production Cost (1) (R$/ton)
Consistentlycontrolling the
production cashcost at a levelbelow the
inflation pace
29
Cash Production Cost saw a annual increaseof 3.7% over the past 6 years
(1) Excludes Conpacel.
432 448471 473
505 518
2009 (2) 2010 (2) 2011 2012 2013 3Q14 LTM
CAGR: + 3.7%
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30
Fibria has the simplest and most transparent call in the industry
Negative Neutral PositivePulp 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
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31Final Remarks
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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
Fibria is seeking value creation for its shareholders with capital discipline
The maturity of synergies captured since Fibrias creation improved its
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593 593 605 584 648 649
900826 766 678 699
2009* 2010* 2011 2012 2013 3Q14 LTM
4,600
5,0545,184
5,299 5,271 5,251
2009* 2010* 2011 2012 2013 3Q14 LTM
The maturity of synergies captured since Fibrias creation improved itsoperating indicators
+14%
PRODUCTION VOLUME(000 t)BEST PRACTICES AND OPERATING STABILITY
Historical Value Inflation Effect**
-21%
CASH COST(R$/ton)
Historical Value Inflation Effect**
-28%
SG&A(R$ million)STRUCTURE AND PROCESS SIMPLIFICATION
1,522
2,5261,964
2,253
2,796 2,708
2009* 2010* 2011 2012 2013 3Q14 LTM
29%
40%34% 36%
40% 38%
EBITDA(R$ million) - EBITDA MARGIN(%)
* Excludes Conpacel | ** IPCA index considered to calculate the inflation effect
432 448 471 473505 518
656 624 596 549 545
2009* 2010* 2011 2012 2013 3Q14 LTM
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Key Highlights
Sound credit profile, with decreasing leverage ratios
Market leader with a highly profitable operation and cash costbelow industry average
Highly experienced and qualified management team
Highly recognized and awarded by industry specialists
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3Q14 Results
Cash Production Cost (R$/t)
Pulp Production and Sales (000 t) Net Revenue (R$ million)
EBITDA (R$ million) and EBITDA Margin (%)
1.3471.271
1.3451.301 1.334
1.372
3Q13 2Q14 3Q14
Production Sales
1.8411.694 1.746
3Q13 2Q14 3Q14
482 486 478501559
502
3Q13 2Q14 3Q14
Cash cost ex-scheduled downtimes Cash cost
762
594 613
3Q13 2Q14 3Q14
41%35% 35%
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Indebtedness
Net Debt (Million) Total Debt and Interest Expenses (Million)
Net Debt/EBITDA (US$)Net Debt/EBITDA (R$)
Debt Amortization Schedule (R$ million) Average Tenor (months) and Cost of US$ Debt (%p.a.)
3,02,3 2,7
2,9 2,4 2,5
8.2406.681 7.313
3.6953.033 2.984
Sep/13 Jun/14 Sep/14R$ US$
9.4878.457 8.574
4.254 3.840 3.498
Sep/13 Jun/14 Sep/14R$ US$
6349 50
- 18%
Interest (US$)
1.261
1.536
2.797
560888 842
1.353 1.2581.041
616511
49 6
1.449
Liquidity 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Pre-payment BNDES ECN ACC/ACE Voto IV Bonds
(cash)
(revolver)
Early redemptionbond 2019 4,5
3,8 4,03,8
54 5255 57
Sep/13 Jun/14 Sep/14 Dec/14
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Fibrias tax structure
Tax benefits (R$)Fiscal - annual adjustment
Benefit Amount Maturity
Goodwill(Aracruzacquisition)
Annual tax deduction:R$85 million (tax)
Remaining Balance Sep/14:R$1,2 bilion (base)
2018
Forestry Capex inMato Grosso doSul state
LTM 3Q14 tax deductionrelated to depletion: R$31
million
Undefined
Tax loss carry forward and tax credits
Benefit Amount
Tax losscarryforward
Balance up to Sept. 14: R$332million (base)
Accumulated taxcredits
Balance Sept./2014:-PIS/COFINS: R$556 million-withholding tax (IR and CSLL):R$604 million
-Befiex: R$537 million
Tax payment (cash basis)2009 2010 2011 2012 2013 LTM 3Q14
R$ 7 million R$ 16 million R$ 4 million R$ 15 million R$ 31 million R$ 20 million
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Liquidity Events: delivered as promised
1,361
5,715
1,045
850
836
1,403
1,268
1,851
1,625
EQUITY OFFERING FOREST SALE 2012 (1) FCF 2012 LAND DEAL FCF 2013 TOTAL
4.8 5.2 4.7 4.53.4 3.1 3.3 3.0 2.8 2.4 2.3 2.7
Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 Set/14
Net Debt/EBITDA (x) R$
(1) Losango and forestry assets and land in the south of Bahia State
2012 Bondprepayment
2013 Bondprepayment
Available
Sources (R$ Million) Uses (R$ Million)
2014 Bondprepayment
REFIS
Due to productivity gains in its forests, Fibria had the opportunity to
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p y g , pp yexplore this new ownership model
MAI* Pulp:(adt/ha/year)
10.6 10.912.1
15.0 15.0 15.0 15.0 15.0
2010 2015 2020 2025 2030 2035 2040 2045
FIBRIAS GAINS IN IMACEL DUE TO INVESTMENTS IN BIOTECHNOLOGY(TONS OF PULP/HA/YEAR)
2012 field trials = 11.9
Conservative assumption
*MAI: Mean annual increment
Actions: Genetic improvement Excellence in forestry management Superior industrial efficiency
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Leadership position
(1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note - May 2014
Recycled Fiber234 million t
49% 51%
60%
18% 82%
58% 42%
40%
35% 65%
29%71%
Fiber Consumption403 million t
Pulp169 million t
Chemical139 million t
Mechanical31 million t
Integrated Mills84 million t
Market Pulp56 million t
Hardwood29 million t
Other EucalyptusPulp producers:
13 million t
Softwood/Other27 million t
Acacia/Other10 million t
Eucalyptus19 million t
Industry Outlook (1)
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Global Paper Consumption
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
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 1996 2006Developed Markets: + 1.7%Emerging Markets : + 6.0%
85,291
117,611
15,548
37,474
P&WConsumption(000 tons) (1)
TissueConsumption(000 tons) (1)
114,507
CAGR 2007 2016Developed Markets: - 4.0%Emerging Markets : + 4.1%
CAGR 1996 2006Developed Markets: + 2.4%Emerging Markets : + 6.9%
CAGR 2007 2016Developed Markets: + 1.4%Emerging Markets : + 6.7%
26,877
Source: RISI
Chi l C i d b i i
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China: Internal Consumption and Urbanization
Chinas private consumption vs. exports(CNY trillion and annual % change) (1)
Chinese Urbanization Driver of Long-Term Growth(UN Population Projections, Millions) (2)
Sources: (1) The Economist. (2) RISI China Pulp Market Study .
Shift from exports to private consumption;
Positive effects on households income and rising standards of living.
A k l d G T P fi bili & S i bili
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Fibria was elected as 1st place in thepulp & paper sector in the corporategovernance and future's vision
categories
Fibria is one of the 5 Brazilian companiesnominees to the Best CorporateGovernanceAward from London.
Company of the year,among all industries,
according to ValorEconmico .
Valor 1000
XVII ANEFAC-FIPECAFI - SERASAEXPERIAN Prize
Fibria is among the mosttransparent public companiesin Brazil, recognized for the
quality of its 2012 financialstatements.
Fibria was ranked for the fifthconsecutive year (2010, 2011, 2012,2013 and 2014).
2014 Institutional Investor Latam Ranking -P&P Sector
Fibria was selected as one of the 10 bestcompanies in transparency.The only one in the pulp &
paper sector.
CDP Brasil 100 Climate Change 2013Reportpoca Negcios 360
International Recognition by CorporateGovernance Report
Fibria was elected as 2 nd place.The prize highlights thebusiness profitability,share profitability,liquidity, corporategovernance and sustainability.
The Best Companies to the ShareholdersPrize of Capital Aberto Magazine
Fibria is the only Latin America companyselected by RobecoSAM (responsible forDJSI) as one of the 10 worldwide leaders inSRI magazines The 10 Game Changers Changing the industry through
RobecoSAM - Sustainability InvestingMagazine
Selected to Dow Jones World andEmerging Markets SustainabilityIndices for 2014/15 of ForestryResources and Paper sector.
DJSI World and DJSI Emerging Markets
Acknowledgments: Governance, Transparency, Profitability & Sustainability