19th Santander Annual LatAm CEO Conference

8/10/2019 19th Santander Annual LatAm CEO Conference

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19th Annual Santander LatAm CEO ConferenceJanuary, 2015

FIBRIA APP WITH THIS PRESENTATION IS AVAILABLE FOR DOWNLOAD AT APPLE STORE AND GOOGLE PLAY.


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2

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


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3

Company Overview1Pulp and Paper Market2

Financial and Operational Highlights3

Agenda

Final Remarks

4


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4

Company Overview


5/43

5

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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6

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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7

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

Europe

39%

N.

America

26%

Asia

25%

Other10%

Region - 3Q14

Tissue

55%

Printing &

Writing

27%

Specialty

18%

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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8

(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 StandardsIFRS

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

Genetically Modified Eucalyptus

Fiscal

Council

Board of

Directors

20% independentmembers

Role of CEO andchairman is split

Personnel andRemuneration

Committee

StatutoryAudit

Committee

Finance

Committee

Sustainability

Committee

Innovation

Committee

General

Meeting

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

members

50% independent

members

45% independent

members-


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9Pulp and Paper Market


10/4310

Today, according to public information, there will be a 10% increase of the

market pulp 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: (0.8) mt

Net: 5.2 mt

2014-2016(2):



Net: 0.3 mt

2014-2016:



Net: 5.5 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); Ence Huelva (400 kt).


11/4311

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

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

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$ 114

Spread Dec./14:

US$ 191


12/4312

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 2Q2016BEKP/

BSKP/FluffConfirmed

APP South Sumatra Indonesia 2.0 Mt 1Q2017 BHKP Confirmed

Fibria Trs Lagoas II Brazil 1.75 Mt - BEKP Unconfirmed

COST CURVE EVOLUTION

USD

/Adt,2013costlevel

Cumulative Capacity Million t/a

Cost positionof marginal

producer

Source: Hawkins Wright , Poyry and Fibria Analysis (as of Dec. 2014).

0 2000 4000 6000

ENCE

Canfor

Resolute Forest

Sodra

IP

Domtar

Mercer

Eldorado

Ilim

Weyerhaeuser

Stora Enso

Metsa Group

Paper Excellence

Georgia Pacific

UPM-Kymmene

CMPC

Suzano

Arauco

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 factor

influencing pulp price volatility.(1)

List Price bottoming at US$650/t in 2011 and US$724/t in 2014

Capacity(000

ton)

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

APP

Hainan

Veracel Nueva Aldea

Santa F

Mucuri

Fray

Bentos

Kerinci

PL3

Trs

Lagoas

Rizhao

APP Guangxi

Chenming

Zhanjiang

EldoradoMontes

del Plata

Maranho

Guaba II

APP South

Sumatra(2)

Klabin

Oji

Nantong

BHKP

prices-CIFEurope

(US$/ton)

(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


14/4314

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 average

capacity 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 average

technical age 21 years

Weighted average

capacity 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

More than 7.7 million tons of capacity above 25 years and with annual capacity below 500,000 t/y.

Old

Town

Ence

Huelva


15/4315

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 Dec.14


16/4316

Lowest Volatility Among Commodities

Change Dec./2014 vs. Dec./2013(3)

35%

21%

29%26%

23% 23%

15%

7%

Sugar Iron Ore WTI Crude

Oil

Soy LME Metals Ibovespa Cattle FOEX PIX

BHKP

Commodities Historical Volatility (US$)(1)

(1) Since 2009 | (2) Except Iron Ore (Average of: Vale, Rio Tinto and BHP) and LME Metals | (3) December, 31st

Sugar Iron Ore Crude Oil SoyLME

Metals

Ibovespa Cattle Pulp BHKP

Commoditiy Spot Price -12% -47% -46% -22% - - 21% -3%

S&P Sector Index(2) -12% -34% -43% -21% -8% -3% 21% -

FIBR3|FBR - - - - - - - 18% | 4%


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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 Working

Capital: 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 46

69 41 86 12134 38 41

4855 38 67

11166

54

142

24

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%

0%

Total North

America

Western

Europe

China Others

+844 kt

-37 kt

+674 kt

+185 kt

+11 kt

2013 vs. 2012 11M2014 vs. 11M2013

+1,523 kt

+60 kt +319 kt+688 kt

+454 kt

11%

4%6%

22%

12%

Total NorthAmerica

WesternEurope

China Others

Global Market BEKP Demand

Paper Capacity increase in China

(1) Source: PPPC World 20 November/2014

2013 2014 2015 Total

FORECAST REALIZEDPREVIOUS

FORECAST

LAST

FORECAST

PREVIOUS

FORECAST

LAST

FORECASTPREVIOUS LATEST

Woodfree -25 199 - 256 550 760 525 1,215

Tissue 1,184 833 1,518 1,390 903 727 3,605 2,950

Cartonboard 2,428 2,128 1,300 2,100 300 380 8,158 8,773

Total 3,587 3,160 2,818 3,746 1,753 1,867 8,158 8,773

Source: Fibria and Independent Consultants


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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 65

1

N.

America

West

Europe

Japan Oceania East

Europe

LatAm China Africa

9 11 1316

26

1721 20

23

79 10

12

22

1620 19

2110

1012

14

21

17

2223

23

2005 2006 2007 2008 2009 2010 2011 2012 2013 11M2014

Eucalyptus Hardwood Total

7.468

3.082

1.869 2.085

226 151 55

7.914

3.792

1.9581.592

144 41 14

BHKP Total Latin

America

Indonesia Others* USA Canada Western

Europe

11M2013 11M2014Latin America is the

leading exporter of BHKP

to China, accounting toapproximately 48% of

China's total imports in

11M2014.

(Kg/capita/year)

(million t)(000s t) (kg/person/year)

Between 2005 and 2013,

the Chinese market share

of eucalyptus shipments

increased by 14 p.p.

(total market pulp: + p.p.)

* includes Russia, China, Thailand and New Zealand.

0

5

10

15

20

2530

35

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

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)

23

2125


20/4320Financial and Operational Highlights

N l i i h i k i i f hi h h


21/4321

No exposure eletricity shortage risks, in spite of which the company

has 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 Maintenance

Downtimes

Wood Utilities Other 3Q14

+ 0.2%

C h P d i C l i f 3 7% h


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

Consistently

controlling the

production

cash cost at a

level below

the inflation

pace.

22

Cash Production Cost saw a annual increase of 3.7% over the past

6 years

(1) Excludes Conpacel.

432 448

471 473

505 518

2009 (2) 2010 (2) 2011 2012 2013 3Q14 LTM

CAGR: + 3.7%


23/4323

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 Jan.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

2,526

1,9642,253

2,796 2,708

2009 (1) 2010 (1) 2011 2012 2013 LTM 3Q14 2015

2.001.76

1.671.95

2.102.29 2.72

(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)Market

Consensus

456 670

639581

610 572 567

660627

676657

680 676

912

1,1791,067 1,133

1,281 1,310

1,542

Fibria net pulp price

(R$/t)


24/4324

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.


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C ti ti f th li bilit t l l f i


26/4326

Continuation of the liability management plan, also focusing on

improving maturities

1,064

384 530750 554 634

2,020

1,341

-

410

450 299

506422 128

149

100

1,473

834 829

1,255

976 762

2,168

1,441

264

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 2014

Cost 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 amortization

schedule

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 56

228

363 343

552 513 425

251 208

20 3

591

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

But the initiatives have not finished There are certain ongoing


27/4327

But the initiatives have not finished. There are certain ongoing

negotiations that will improve Fibrias debt profile even further

Repurchase of costly debt

Issuance of a Syndicated EPP (US$500 million)

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$ million

A consistent and disciplined approach focused on reducing debt


28/4328

A consistent and disciplined approach focused on reducing debt

and 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 5.95.5

5.2 4.6 3.7


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29

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 Yield

Fibria Ba1 / BBB- / BB+ 2024 US$600 mn 316 bps 5.198%

Braskem Baa3/BBB-/BBB- 2024 US$500 mn 450 bps 6.387%

Klabin BBB-/BBB- 2024 US$500 mn 354 bps 5.635%

Odebrecht Baa3/BBB-/BBB 2023 US$800 mn(1) 394 bps 5.986%

Petrobras Baa1/BBB/BBB 2024 US$2.5 bn 533 bps 7.106%

Gerdau Baa3/BBB-/BBB- 2023 US$750 mn 384 bps 5.709%

Samarco BBB-/BBB 2024 US$ 500 mn 456 bps 6.335%

(1)

Outstanding: US$102 mn

Secondary Market - As of Jan. 08, 2015

Issuance


30/43

30

Fibria has the simplest and most transparent call in the industry

Negative Neutral Positive

Pulp 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


31/43

31Final Remarks


32/43

32

Max Value Project Zero base budgeting

Each expense and capex

need to be explained, not

only the additional ones

Budget developed primarily based on input

consumption indicators

Only one discussion cycle, initially based on

budgetary guidelines

Individual discussion for each expenditure package,

including Sustaining CAPEX and OPEX

Discussion details based on the materiality of the

expense within the package

Robust basis increasing the visibility of the rationale

for the proposed budget amounts

Zero Base Budgeting encourages a questioning and

challenging attitude of the status quo

The assumption for the new process is that the budget for next year is zero.


33/43

33

Max Value Project Zero base budgeting

33%

100%

43%

23%

Forestry Industrial Logistics/Other Total

15%

30%

50%

65%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2015 2016 2017 2018 2019

Note: (1) Technical Limit potential reflecting 2013 conditions; (2) Coverage of expenses with established Technical Limits (e.g. 374/3233=12%).Source: Fibria, ZBB team analysis.

Value achievement share by category NPV expected curve

Approx. R$1.5 billion NPV


34/43

34

Max Value Project A hidden asset value

Market Price of own Land as of Sep/14:

R$3.9 billion

Fibrias

Owned Land

Ha

(000)

Book Value

R$/ha

Market Value

R$/ha

Total 491 2,535 7,964

Land sold in 2013 The Parkia Deal:

- 206k ha;

- Up to R$1.65 billion (~R$8k per ha).

Book Value of own Land as of Sep/14:

R$1.2 billion Market Price of own Land as of Sep/14:R$3.9 billion


35/43

35

Max Value Project Turning areas per hectare into square meter

The targeted area represents only 0.6% of the land owned by Fibria;

Real estate thinking: minimum value creation of R$500 million NPV.


36/43

36

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


37/43

37

593 593 605 584648 649

900826

766678 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 Fibria s creation improved its

operating 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 448471 473 505

518

656 624 596549 545

2009* 2010* 2011 2012 2013 3Q14 LTM


38/43

38Back up


39/43


40/43

40

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

Due to productivity gains in its forests, Fibria had the opportunity to


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p y g , pp y

explore this new ownership model

MAI* Pulp:(adt/ha/year)

10.6 10.9

12.1

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

L d hi i i


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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 Fiber

234 million t

49% 51%

60%

18% 82%

58% 42%

40%

35% 65%

29%71%

Fiber Consumption

403 million t

Pulp

169 million t

Chemical

139 million t

Mechanical

31 million t

Integrated Mills

84 million t

Market Pulp

56 million t

Hardwood

29 million t

Other Eucalyptus

Pulp producers:

13 million t

Softwood/Other

27 million t

Acacia/Other

10 million t

Eucalyptus

19 million t

Industry Outlook(1)

Gl b l P C ti


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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 2006

Developed Markets: + 1.7%

Emerging Markets : + 6.0%

85,291

117,611

15,548

37,474

P&W

Consumption

(000 tons)(1)

Tissue

Consumption

(000 tons)(1)

114,507

CAGR 2007 2016

Developed Markets: - 4.0%


CAGR 1996 2006



CAGR 2007 2016



26,877

19th Santander Annual LatAm CEO Conference

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