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UBS Global Chemicals & Paper and Packaging Conference - NY
September, 2017
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 ExchangeAct of 1934, as amended. Such forward-looking statements involve a certain degree ofrisk 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 thecompany’s 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
3
Pulp and Paper Market2Financial and Operational Highlights3
Company Overview1
2017 Outlook – CAPEX and Cash Cost4Expansion Project – Horizonte 2
Back up65
4
Company Overview
5
Shareholder Structure and Corporate Governance
(1) Controlling group (2) Free Float 41.33% + Treasury 0.16%
Votorantim S.A. (1)
29.42%
BNDESParticipações (1)
29.08%
FreeFloat (2)
41.33%
► 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
Listed on Novo Mercado, highest level at BM&FBovespa:
Policies approved by the Board of Directors:
Fiscal Council
Board of Directors
20% independent members
Role of CEO andchairman is split
Personnel and Remuneration
Committee
Statutory Audit
Committee
Finance Committee
Sustainability Committee
Innovation Committee
30% independent
members
100% independent
members
50% independent members
45% independent members -
General Meeting
► Indebtedness and Liquidity
► Market Risk Management
► Risk Management
► Corporate Governance
► Related Parties Transactions
► Anti-Corruption
► Information Disclosure
► Securities Trading
► Antitrust
► Genetically Modified Eucalyptus
► Dividend Policy
► Sustainability
6
A Winning Player
Port Terminal Pulp Unit
Três Lagoas Unit and Horizonte 2 Project
Santos
AracruzPortocel
Caravelas
BelmonteVeracel
Jacareí
Superior Asset Combination Main Figures – 2Q17 LTM
Pulp capacity(1) million tons 5.300
Net revenues US$ billion 3.010
Total Forest Base(2) thousand hectares 1,056
Planted area(2) thousand hectares 633
Net Debt US$ billion 3.810
Net Debt/EBITDA (in Dollars)(3) X 3.75
Source: Fibria(1) Volume does not include Horizonte 2 project pulp capacity.(2) Including 50% of Veracel, excluding forest partnership areas and forest bases linked to the sales of Losango and forest assets in Southern Bahia State; As of December 31, 2016. (3) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.
7
Fibria’s Units Industrial Capacity
(1) Veracel is a joint operation between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year
Horizonte 2 – Mato Grosso do Sul – 1,950 thousand t/year
1
8
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
Lower dependence on volatile markets such as China
Efficient logistics set up
Low counterparty credit risk
100% certified pulp (FSC and PEFC/Cerflor)
Sales Mix by Region and by End Use - Fibria Highlights
Fibria’s Commercial Strategy
Net Revenues by Region - Fibria
Region – 2Q17 End Use – 2Q17
39% 41% 43%36% 34%
28% 24% 24%
22% 20%
24% 25% 24%32% 36%
9% 10% 9% 10% 10%
2013 2014 2015 2016 2Q17
Europe North America Asia LatAm
34%
20%
36%
10%
Europe
North America
Asia
LatinAmerica
49%
32%
19%
Tissue
Printing &
Writing
Specialties
9
Leadership Position
(1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC SRN May 2017
Recycled Fiber 244 million t
46% 54%
59%
18% 82%
59% 41%
41%
33% 67%
23%77%
Fiber Consumption414 million t
Pulp 170 million t
Chemical142 million t
Mechanical28 million t
Integrated Mills 83 million t
Market Pulp 59 million t
Hardwood32 million t
Other Eucalyptus Pulp producers:
17 million t
Softwood/Other 27 million t
Acacia/Other 9 million t
Eucalyptus23 million t
Industry Outlook(1)
10
Pulp Supply Agreement: Puma Project
► Pulp volumes:
► Minimum of 900 kt of hardwood for the first 4 years
► 75% of 900 kt for the fifth year (phase out 1)
► 50% of 900 kt for the sixth year (phase out 2)
► Selling price based on the average net price charged by Fibria at the Port of Paranaguá (FOB Paranaguá)
► Sales destination: Globally, except for South America
► Operational startup: Mar/2016
► Agreement benefits:
Puma Project
Mutual value creation, with better servicing for both Companies customers’ base
Logistics and commercial structure synergies;
Ensure sales volumes;
Ensure pulp market access with Klabin brand.
Logistics and commercial optimization and synergies;
Support customers’ growth and enhance customers’ needs;
Potential development of new customers.
Klabin’s sales volume (kt)
2Q16 3Q16 4Q16 2016 1Q17 2Q17
131 164 183 478 204 202
11
Pulp and Paper Market
12
2016 Global growth has “ONLY” been relying on China
2013 2014
2015 2016
5.3%
5.5%
-0.2%
19.0%
-300
0
300
600
900
1200
1500
Global NA WE China
3.3%
5.2% 2.0%5.2%
-300
0
300
600
900
1200
1500
Global NA WE China
3.3%
-3.5%
3.7%6.2%
-300
0
300
600
900
1200
1500
Global NA WE China
4.3%
-4.4% -2.6%
20.2%
-300
0
300
600
900
1200
1500
Global NA WE China
Source: PPPC Global 100
BHKP DEMAND (KT AND % CHANGE, Y-O-Y)
13
SO WHAT CAN WE EXPECT IN 2017 ?
BHKP CAPACITY CHANGES
FIBRIA EXPECTED SCENARIO FOR 2017 AT END OF 2016
1,350
800
-550
-60
-40
-55
-300
-100
100
300
1,000
500
BEKP demand growth¹
Net
Unexpected Closures,…
Navigator Cacia
Resolute Calhoun
Taiwan P&P
APRIL Rizhao
APRIL Kerinci
Metsa
Fibria TLS II
APP OKI
Klabin
1,350
-20
-195
-550
-40
-55
-420
-270
-390
100
300
1,000
500
BEKP demand growth¹
Net
Unexpected Closures,…
CMPC
Resolute Calhoun
Taiwan P&P
APRIL Jiangmen
APRIL Rizhao
APRIL Kerinci
Metsa
Fibria TLS II
APP OKI
Klabin
FIBRIA EXPECTED SCENARIO FOR 2017, TODAY:
APRIL -1,080(2)
OKI’s output in 2017 fully offset by APRIL’s conversions/integrations
Unexpected Closures,Conversions and Downtime
Unexpected Closures,Conversions and Downtime
(1) Fibria’s estimates (2) Kerinci integration to P&W | Rizhao conversion to DP and 20,000 tons of temporary downtime | Jiangmen integration to P&W
(‘000 t)
14
WE EXPECT A COMBINATION OF THE FOLLOWING FACTORS
Not only, a good « BEKP Demand/Net Capacity increase » ratio: ≈ 1.75, which is well above the last 3 years
But also, a more WIDESPREAD demand between the regions!
USA: a recovery of the demand for Eucalyptus mainly triggered by a few local HW closures (temporarily or not)
US$ strengthening / loss of competitiveness of local pulp producers (integrated or not)
Europe: a recovery of the HW demand due to increasing competitiveness of the European papermakers
Euro devaluation... US$/Euro parity !?
China: an on-going increase of the demand for Eucalyptus Pulp New paper capacities: 2.3 million tons/y of which:
Tissue = 600 kton/y UWF = 400 Kton/y
On-going substitution of non wood fibers and old pulp mills
15
Shipments of Hardwood and Eucalyptus Pulp
Global Market BEKP Demand
(1) Source: PPPC G100– Jul/2017 (2) Source: PPPC Global 100 – December/2016
CAGR BEKP 2012-2016(2)
2,073kt
109 kt
351 kt
1,275kt
338 kt
12%
6%5%
29%
7%
Total NorthAmerica
WesternEurope
China Others
BHKP downtimes (‘000 t)(3)
Hardwood inventories – in days(1)
7M17 vs.7M16(1)
862kt
-23 kt
753kt
234kt38 kt
-85 kt
377kt
Total NorthAmerica
West Europe China Others
BHKP BEKP
545kt
215kt
-102 kt
4%
5%
3%-1% -2% -2%
13%
5% 4%
12%
36
33
35
37
39
41
43
45
47
49
Mar
-13
May
-13
Jul-
13
Au
g-1
3O
ct-1
3D
ec-
13
Mar
-14
May
-14
Jul-
14
Sep
-14
No
v-1
4Ja
n-1
5M
ar-1
5M
ay-1
5Ju
l-1
5Se
p-1
5N
ov-
15
Jan
-16
Mar
-16
May
-16
Jul-
16
Sep
-16
No
v-1
6Ja
n-1
7M
ar-1
7M
ay-1
7Ju
l-1
7
Avg=40
0 100 200 300 400 500
1Q17
2Q17
3Q17
4Q17
Unescheduled Scheduled
Total: 987 th. t
(3) Source: ABTCP, RISI and Fibria
16
Technical Age and Scale in the Pulp IndustryFurther closures are expected due to lack of adequate investments in the industry…
Hardwood (BHKP) Producers – Integrated and Market Pulp Mills
Softwood (BSKP) Producers – Integrated and Market Pulp Mills
STRONG
Weighted average
technical age 12.3 years
Weighted average
capacity 1,350,000 t/a
Aracruz
Três Lagoas
Veracel
Jacareí
WEAK
STRONGWeighted average
technical age 21 years
Weighted average
capacity 534,000 t/a
North American Pulp Mills Other Pulp Mills
WEAK
More than 6.6 million tons of capacity above 25 years and with annual capacity below 500,000 t/y.
PM Capacity, 1000 t/a
0
500
1000
1500
2000
051015202530
Technical age, years
PM Capacity, 1000 t/a
0
100
200
300
400
500
600
700
800
900
1000
051015202530
Technical age, years
Source: Poyry
17Source: Poyry, PPPC, RISI and Public information.
Closures of Hardwood Market Pulp Capacity Worldwide(000 ton)
Capacity closures DO happen
-910
-85
-1,260-1,180
-540-500
-105
-1,085
-445
-315
-670
-1,410
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-2018(1)
(1) Closures/conversion/integration 2016: -25 kt Guangdong Dingfeng, -30 kt Verso Wickliffe, -200 kt APRIL Kenrinci, -80 kt Taiwan P&P, -110 kt Woodland, -20 kt BILT, -205 kt IP. (2) Closures/conversion/integration 2017 (-1,155 kt): -55 kt Taiwan P&P, -40 kt Resolute Calhoum, -250 kt APRIL RIZHAO, -390 kt APRIL Kenrinci, -420 kt APRIL Jiangmen. 2018 (-255 kt): -60 kt
Navigator, -125 kt Mondi, -70 kt APRIL RIZHAO.
(2)
Closures do not include temporary movements.(approx. 850 kt in 2017)
Potential Additional
Conversions
18
More Competitive Cash Cost with H2BHKP (US$/t)
452 437361 358
309 302
208 221158
5855
116
3262 56
61 52
61
40
37
6
6
134
90
38
38
439
339
USA China Canada Iberia Chile/Uruguay Indonesia Brazil Fibria 2Q17LTM
EstimatedFibria w/ H2 -
2021
Cash Production Cost (US$/t) Delivery CIF Europe
BHKP capacity (‘000 t)
1,140 1,875 1,110 2,285 4,795 3,830 16,265 TOTAL: 31,300
Interest
CapexIncome taxSG&A
WC=($52/t)
Sources: Hawkins Wright (Production Costs August 2017) and Fibria’s 2Q17 Earnings Release-FX considered at R$/US$ = 3.12 (Brazil and Fibria). Fibria with Horizonte 2 (H2) cash production cost was estimated according to weighted average cost, after mill balance, converted at R$/US$ = 3.12. Includes energy sales.
-US$ 100
19
New Capacity Investment PipelineNo major new capacity announced after OKI and H2 projects
Cap
acit
y A
dd
itio
ns
(‘0
00
to
n)(2
)
Pu
lp p
rice
s -
CIF
Eu
rop
e (U
S$/t
on
)(2)
(1) Partially integrated production.(2) Sources: Hawkins Wright, Poyry and Fibria Analysis. Pulp price estimates according to RISI (Sep/17)
783
888
1.000
0
0,5
1
1,5
2
2,5
0
200
400
600
800
1000
1200
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
BHKP BHKP adjusted by CPI
Valdivia
APP Hainan
Veracel
Nueva Aldea Santa
Fé
Mucuri
FrayBentos
KerinciPL3
Três Lagoas
Rizhao
APP Guangxi
ChenmingZhanjiang
Eldorado
Montes delPlata
Maranhão
Guaíba II
APP South Sumatra(1)
Klabin
OjiNantong
Horizonte 2
Metsa
7,400 kt 5,250 kt
In the last 15 years, pulp volatility has been just 8%...why?
20
► Market price closer to producer’s marginal cost
► The marginal cost producers are based in Europe and North America
► Flattish industry cost curve
► Higher flexibility to adjust supply side during imbalanced market
► Lower dependency on Asian market compared to hard commodities
► Market end users are linked to consumer goods, such as tissue
► Incipient pulp price futures market and low liquidity
Source: Bloomberg – Sep 1st, 2017
0
40
80
120
160
Mar
-00
Jun
-00
Sep
-00
De
c-0
0M
ar-0
1Ju
n-0
1Se
p-0
1D
ec-
01
Mar
-02
Jun
-02
Sep
-02
No
v-0
2Fe
b-0
3M
ay-0
3A
ug-
03
No
v-0
3Fe
b-0
4M
ay-0
4A
ug-
04
No
v-0
4Fe
b-0
5M
ay-0
5A
ug-
05
No
v-0
5Fe
b-0
6M
ay-0
6A
ug-
06
No
v-0
6Fe
b-0
7M
ay-0
7A
ug-
07
No
v-0
7Fe
b-0
8M
ay-0
8Ju
l-0
8O
ct-0
8Ja
n-0
9A
pr-
09
Jul-
09
Oct
-09
Jan
-10
Ap
r-1
0Ju
l-1
0O
ct-1
0Ja
n-1
1A
pr-
11
Jul-
11
Oct
-11
Jan
-12
Ap
r-1
2Ju
l-1
2O
ct-1
2Ja
n-1
3A
pr-
13
Jul-
13
Oct
-13
Jan
-14
Ap
r-1
4Ju
n-1
4Se
p-1
4D
ec-
14
Mar
-15
Jun
-15
Sep
-15
De
c-1
5M
ar-1
6Ju
n-1
6Se
p-1
6D
ec-
16
Mar
-17
Jun
-17
BHKP - FOEX Europe (base 100) CPI (base 100)
21
Lowest volatility among commodities¹
(1) Bloomberg – up to Sep 1st, 2017
Low volatility of hardwood pulp price, even thoughnew capacities have come on stream during the period.
20
50
80
110
140
170
200
230Ja
n-1
2Fe
b-1
2M
ar-1
2A
pr-
12
May
-12
Jun
-12
Jul-
12
Au
g-1
2Se
p-1
2O
ct-1
2N
ov-
12
Dec
-12
Jan
-13
Feb
-13
Mar
-13
Ap
r-1
3M
ay-1
3Ju
n-1
3Ju
l-1
3A
ug-
13
Sep
-13
Oct
-13
No
v-1
3D
ec-1
3Ja
n-1
4Fe
b-1
4M
ar-1
4A
pr-
14
May
-14
Jun
-14
Jul-
14
Au
g-1
4Se
p-1
4O
ct-1
4N
ov-
14
Dec
-14
Jan
-15
Feb
-15
Mar
-15
Ap
r-1
5M
ay-1
5Ju
n-1
5Ju
l-1
5A
ug-
15
Sep
-15
Oct
-15
No
v-1
5D
ec-1
5Ja
n-1
6Fe
b-1
6M
ar-1
6A
pr-
16
May
-16
Jun
-16
Jul-
16
Au
g-1
6Se
p-1
6O
ct-1
6N
ov-
16
Dec
-16
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7M
ay-1
7Ju
n-1
7Ju
l-1
7A
ug-
17
Iron Ore Soy Bean Crude Oil Sugar BHKP - FOEX Europe Exchange Rate (R$/US$)
135
169
615547
100 = January 1, 2012
37% 34% 34%28% 26% 25% 24% 23%
17%14%
6%
WTI Crude Oil Sugar Nickel Iron Ore Copper Soy Ibovespa LME Metals Cattle FX BHKP
(2) Since January 1, 2009 up to Sep 1st, 2017
Historical Volatility of Commodities (US$)2 – Lower than FX
78
22
Financial and Operational Highlights
23
Each 5% depreciation of the Real increases EBITDA by around R$454m and FCF by R$540m
815
1,488
1,173 1,1531,295 1,185
1,560
1,073 1,019
2009 2010 2011 2012 2013 2014 2015 2016 2Q17LTM
2017(e) 2018(e)
Exchange Rate
Average¹ (R$/US$)
EBITDA Margin³
EBITDA (US$ million)
Fibria net pulp price²(US$/t)
Fibria net pulp price(R$/t)
2.00 1.76 1.67 1.95 2.16 2.35 3.33 3.49 3.30 3.18 3.30
456
670 639 581 610 572 582
496 496560 528
29%
40%34% 36%
40% 39%
53%
43%41%
912 1,179 1,067 1,133 1,311 1,3441,951 1,731 1,638
1,781 1,742
(1) 2017 and 2018 according to Focus Report (Brazilian Central Bank – Sep 1, 2017) | (2) 2017 and 2018 according market consensus | (3) Not considering the effect of Klabin sales
24
Cash Production Cost (R$/t) – 2Q17
Cash production cost ex-downtimes (R$/t)Cash Production Cost (R$/t)
2Q17 vs 2Q16 Ex-downtimes
662 66017
(6)
22
(8)(23) (4)
2Q16 Inflation FX Non recurringwood
Lower chemicalsand energy
consumption
Energy sales Others 2Q17
Higher operationalefficiency
Utilities result:2Q16: R$ 4/t | 1Q17: R$ 9/t | 2Q17: R$ 27/t
662680
660
74
662
754
660
2Q16 1Q17 2Q17
Maintenance downtime impactCash production cost ex-downtimes
680
660
4 2
(7)
(21)
2
1Q17 Wood Inflation/FX Operationalefficiency
Energy sales Others 2Q17
-2.9%
308
Avgdistance
(km):328
25
Cash Production Cost in dollars
But lately, it has been influencedby non-recurring effects:
Wood Energy price Input consumption
Consistently controlling the cash production cost
Fibria’s Cash Production Cost(1) (USD/ton)
231
264281
242 234220
186 195215
2009 2010 2011 2012 2013 2014 2015 2016 2Q17LTM
1.99 1.76 1.67 1.95 2.16 2.35 3.33 3.49AverageFX
(BRL/USD)
(1) Excludes Conpacel
3.23
26
Net Results (US$ million) – 2Q17
1.071
(259)
(495)
(180)(122)
(544)
244
(233)
AdjustedEBITDA
FX debt MtMhedge
Net interest Deprec., amortiz. and
depletion
Income taxes Others Net result∆
Non-recurring effects
∆
(1) Includes other Exchange rate/monetary variations, other financial income/expense and other operating income/expenses. The higher effect in this quarter corresponds to the variation from the reappraisal of biological assets that totaled R$211 million.
(1)
27(1) Not considering capex related to Horizonte 2 project and pulp logistics projects.
Free Cash Flow (1) - 2Q17 and LTM (US$ million)
1.071
259 (510)
(273) (26) (9)
6
Adjusted EBITDA Capex(ex-H2 and logistics
projects)
Net interest Working capital Income taxes Others FCF
2Q17
Includes interest paid from H2, 2024 bond andCRA
3.277
1.428
(2,136)(557)
945
(101)
Adjusted EBITDA Capex(ex-H2 and logistics
projects)
Net interest Working capital Income taxes FCF
LTM 2Q17
28
473414 408
350268
200144
209
304
96143
108 78 45 39 39 59102
2009 2010 2011 2012 2013 2014 2015 2016 LTM 2Q17
11,36612,604
3,587 3,810
Mar/17 Jun/17
R$ US$
2Q17 Indebtedness
(1) Considering the portion of debt in reais fully adjusted by the market swap curves at the end of each period | (2) LTM EBITDA/LTM net interest
3.43.8 3.7
Interest gross expense Average cost in US$ (% p.a.)
Net debt (million) and leverage
Interest expense/revenue (US$ million) and interest coverage
Net debt/EBITDA (R$) Net debt/EBITDA (US$)
Interest on financial investments
6.3 5.95.5
5.24.6
3.4 3.3(1)
Cost of debt
Gross debt and cash position (million)
3.63
3.853.79
3.7518,329 18,788
5,785 5,679
Mar/17 Jun/17
Gross debt
R$ US$
6,963 6,184
2,198 1,869
Mar/17 Jun/17
Cash position
R$ US$
49
57 55
2Q16 1Q17 2Q17
CRA
H2
CRA
H2H2CRA
H2
CRA
Average maturity (in months)
Cost of debt in US$(1) and debt maturity
2.75.1 4.1 4.3
5.87.3 15.4 7.2
5.0
Interest coverage (x)(2)
6.3 5.95.5
5.24.6
3.4 3.3(1)
Cost of debt
CRA CRACRA CRA
29
Agribusiness Credit Receivable Certificates (CRAs)@June 30, 2017 CRA accounted for 21% of the total debt
The largest CRA issuer in Brazil (R$ 3,975 million; Av. cost 98%)
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
102%
104%
106%
R$ 675 million- (15/oct) R$ 880 million-1°tranche (16/jun)
R$ 470 million-2°tranche (16/jun)
R$ 374 million-1°tranche (16/aug)
R$ 326 million -2°tranche (16/aug)
R$ 1,250 million-(16/dec)
%CDI
R$ 675 million
Tenor: 6 yOct, 15
R$ 880 million
Tenor: 7 yJun, 16
R$ 470 million
Tenor: 7 yJun, 16
R$ 374 million
Tenor: 7 yAug, 16
R$ 326 million
Tenor: 4 yAug, 16
R$ 1,250 million
Tenor: 7 yDec, 16
Av. interest rate of financial investments(1)
(1) Refer to note 7 – cash and cash equivalents in 2Q17 Financial Statements
30
0,4
1,9
0.20.3
0.2
0.4
Pre-payment CRA BNDES FDCO ECA Working capital (4) Total
0.2 - 20170.1 - 2018
0.4
0.1
1Q17
3Q153Q15
2Q17
0.4
2.3
0.1 – 2018
Liquidity(1) and debt amortization schedule (US$ million)
Capex H2 (2):
(3) Capex to be executed (cash) related to Horizonte 2 project. | (4) Related to the agreement with Klabin
1,854
582
2,436
245
583
942798
643369
548708
106 35
702
Liquidez 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Pre-payment BNDES
NCE Bonds
Finnvera CRA and others
Cash on hand(1)
Revolver
Funding Horizonte 2 Project (US$ billion)
(1) Not including US$15 million related to MtM of hedging transactions. | (2) Financial execution of US$1,530 million (cash) capex up to June 2017. FX (R$/US$) – 2017 e 2018: 3.38.
Funds withdrawn until June 30, 2017 Contracted funds to be withdrawn
401 294
0.3
Horizonte 2 Project
US$2.2 bi
Excess of US$0.1 bi
Robust Liquidity – USD million(@June 30, 2017)
31
WAIVER ON 4.5X COVENANT WAS FULLY NEGOTIATEDHorizonte 2 start-up in 3Q17 boosts EBITDA and FCF generation
Leverage guidelines:
Range of 2.0x to 2.5x net debt/EBITDA
Maximum 3.5x net debt/EBITDA during expansion cycles
Highlights:
Covenants only triggered if Fibria loses the Investment Grade by 2 of the 3 rating agencies
During the most critical periods of expansion, 4.5x covenant was waived
(1) As stated on the Liquidity and Indebtedness Policy and Shareholders Agreement
NET DEBT/EBITDA (USD)
1.86 2.10
2.64
3.30
3.79 3.754.5 4.5
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2018 2019
Actual (in US$)
Covenant level Waiver
3.5x
2.0x – 2.5x
Indebtness andLiquidity limits (1)
32
Capital Structure
Net Debt/EBITDA (x)(1)
Fibria Arauco CMPC Klabin Suzano
S&P BBB-/Negative BBB-/Stable BBB-/Stable BB+/Stable BB+/Positive
Moody’s Ba1/Negative Baa3/Stable Baa3/Stable - Ba1/Negative
Fitch BBB-/Stable BBB/Negative BBB+/Negative BB+/Stable BB+/Positive
(1) Fibria’s historical data in BRL. The period in bold represents companies’ expansion capex execution.
3.8
2.7
4.9
3.4
3.3
8.1
5.0
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Fibria Suzano Klabin CMPC Arauco Eldorado
Maranhão
Puma
Guaíba IIMontes del Plata
Horizonte 2
33
One of the best performances among Brazilian corporate issuers(1)
(1) G-spread on Sep 1st, 2017
Historical G-spread (bps)
BBB-
BBB-
Rating Outlook
Negative
Stable
139 185 210 223 235 239 240 244 267 275 290
406
649
198 229 241 253 254 284
379
Issuance with maturity in 2024 Issuance with maturity in 2027
0
200
400
600
800
1000
1200
1400
2010 2011 2012 2013 2014 2015 2016 2017
Fibria 2020 - 7.5% Fibria 2021 - 6.75%
Fibria 2024 - 5.25% Fibria 2027 - 5.50%
34
ROE and ROIC (R$)
ROE = Adjusted EBIT(1)/ Equity before IAS 41(2) and ROIC = Adjusted EBIT(3)/ Invested Capital before IAS 41(2)
(1) Adjusted EBITDA – CAPEX – Net Interest – Taxes (2) International accounting standards for biological assets.(3) Adjusted EBITDA – CAPEX – Taxes
Average FX(R$/US$)
1.95 2.16 2.35 3.33
Average Net Pulp Price
(US$)
581 610 561 586
3.4%5.7% 6.2%
25.1%
9.8%
3.5%
9,4%
4.7%6.1% 5.6%
15.6%
6.9%
4.0%
9,0%
2012 2013 2014 2015 2016 2Q17LTM
2Q17Annualized
ROE ROIC
3.23
511
3.49
496
3.22
557
35
2017 OUTLOOK – CAPEX AND CASH COST
Fibria CAPEX 2017 – BRL million
36
(1) Converted at 2017 average FX - BRL/USD 3.24, according to Focus Report (Brazilian Central Bank – Jun 16th, 2017) (2) Includes R&D, IT, Health Safety and Environmental expenses
2,010
3,011
415
2017 CAPEXMaintenance
Logistics Projects Modernization H2 Others 2017 CAPEX TotalGuidance
5,213
1,595
5779
56
USD 620 mn(1) USD1,609 mn(1)
Forestry
Industry
(2)
Structural CAPEX – BRL million
37
(1) Converted at 2017 average FX - BRL/USD 3.24 - According to Focus Report (Brazilian Central Bank – Jun 16th, 2016) (2) November/2016 estimate. Includes modernization expenses
2,055
1,662
2,068
2017Guidance
Modernization Non-recurringwood purchase
Forestryequipments
Non-recurringprojects
Turbogeneratoroverhaul
Structuralcapex
H2 sustainingcapex
Structuralcapex with H2
USD632 M(1)
USD489 M(1)
USD608 M(1)
(2)
Cash Cost (USD/t) @2021BRL/USD 3.19
38
206
155 (26) (19) (2) (1) (3)
LTM 3Q16 Horizonte 2Project
Wood costreduction
Bleaching line B Maritime woodshipping project
Others 2021
FX Cash cost (US$/t)
3.00 164
3.10 159
3.19 155
3.30 150
3.50 142
FX Sensitivity
39
Expansion Project – Horizonte 2
40
• Follow the growth of strategic customers
• Developing new customers
• Distribution to new geographic markets
• Efficiency and competitiveness gains in logistics
• Higher quality in customer service
• Greater ability to capture new expansion market windows
• Strong M&A position
Competitiveness
Commercial positioning
Long-term growthpotential
What is the importance of growth for Fibria?
• Wider fixed costs dilution
• Cost curve position improvement
• Greater bargaining power with suppliers
41
HORIZONTE 2 PROJECT
41
Site Overview
(1) Industrial capex. (2) Approximate cash disbursement up to June 30, 2017.
Anticipated start-up:Already in Operation
Inside the fence(1)
Capex of US$ 979/t
69%(2)
of financial execution
(R$ 5.1 billion)
Energy Surplus130 MWh
Expansion Capex of US$ 2,247
million (US$ 1,152/t)
42
5,300 5,300 5,300 5,300 5,300 5,300
377
1,755 1,850 1,950 1,950 1,950900
900 900 900 900 900
2017 2018 2019 2020 2021 2022
Klabin's Puma Project ('000 t)(1)¹Horizonte 2 ('000 t)¹Current Production ('000 t)
Nominal Capacity (‘000 t)
6,577
7,955 8,050 8,150 8,150 8,150
(1) The volumes in 2017 and 2018 will depend on the learning curve of the plants. The agreement with Klabin may be renewed by mutual consent.
ESTIMATED MARKET BHKP CAPACITY RANKING 2017 (000T)
Source: RISI, Hawkins Wright, PPPC and Fibria (Nov 2016)
0 2000 4000 6000 8000
DomtarSoedraKlabin
International PaperLwarcel
ResoluteVerso
Georgia PacificWoodlandNavigator
MetsäOji
NipponIlim
MarubeniMondi
AltriEnce
CenibraStora Enso
AraucoEldorado
UPMCMPC
AprilSuzano
APPFibria 8,150
Current Capacity
New Capacity
New Capacity – Klabin Agreement
New Capacity – Horizonte II Project
43
Pulp sales destination: Fibria growing where the market grows
(1) Considers 2Q17 last twelve months. | (2) Includes Klabin’s sales volume
34%
40%
34%
39%
18%17%
8%10%
Total sales volume distributionafter H2 start up(2)
Current net revenue distribution(1)
44
Already planted
135,000 ha
To be planted
52,000 ha
Total
187,000 ha
Wood purchased
7.4 million m3
42,000 ha to be planted in 201710,000 ha to be planted in 2018
Average distance from forest to mill H1 + H2 up to 100 km
Horizonte 2 Forestry BaseForestry base secured as planned
45
LogisticsIntegrated logistics - outbound and shipping
Mato Grosso
Mato Grosso do Sul
Goiás
Brasília
Railway export corridor with high reliability and capacity
Less transit time from mill to the Port of Santos
Higher productivity per train
With T32, Fibria becomes the pulp player with the highest storage capacity in Port of Santos
Port Terminal 32
46
HORIZONTE 2 CAPEXDisbursement flexibility and reduction from 2015
CAPEX TIMELINE (R$ million)
R$ 7,526 mn
US$ 2,226 mn(1)
Total
US$ 61 mn 1,116mn 755 mn 294 mn
(1) FX @ 3.38
8,745
2,351
5,175
7,526
November, 2015 Savings,Contingencies
and indirect costs
FX Inflation Others June, 2017
USD 2,214
BRL/USD 3.95
To be disbursed
Executed
USD 2,226
BRL/USD 3.38
1,196
1,357
205
3,774
2,553
994
2015 2016 2017 2018
Capex to be disbursedCapex disbursed
47
FundingCost and maturity
Amortization Schedule(2) – 2Q17 Proforma with TLS II – US$ million
2,436
363578
1,011881
724
446643
778
17670
713
Caixa 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
BNDES Bond EPP ECN Outros CRA Finnvera Finame Development Agencies (FCO, Finep & FDCO) BNB Total
Cash(3)
Cash
Revolver
(1) Swap Bloomberg | (2) FX @Jun 30, 2017: 3.3082 | (3) Does not include MtM related to hedging transactions
Average Cost (US$ p.a)(1)
Average Maturity (years)
2Q17 2Q17 + H2
3.7%
4.6
3.6%
4.7
H2
3.1%
5.5
Others
1,854
582
48
Horizonte 2 project assumptions
UNIT R$ US$
Pulp production/year k tons 1,950 1,950
Expansion capex(1) $ billion 7.5 2.3
Expansion capex(1) $/t 3,841 1,164
Inside the fence expansion capex $/t 3,260 979
Sustaining capex(2) $/t 195 59
Cash production cost(3) $/t 337 107
Energy surplus MWh 130 130
Project approval FX R$/US$ 2.80 -
All in cash cost (estimated range)(4) $/t - 270 - 324
Pulp price(5) $/t - 560
Free Cash Flow (estimated) $/t - 236 - 290
Payback period (estimated) years - 4.0 - 5.0
(1) Includes chemical leasing (FX @ 3.30). (2) Estimated sustaining capex in perpetuity (FX @ 3.30). (3) Estimated weighted average cost, after mill balance. Includes energy sales (FX @ 3.12).(4) Cash cost + freight + SG&A + Sustaining Capex + Interest + taxes + working capital (FX @ 3.12)(5) 2017 market consensus.
49
Final Remarks
• Economies of scale
• Synergies with current operations
• Wood availability and low distance from forest to mill
• Fibria’s total energy surplus to be increased by 130 MWh
• Cash cost competitiveness
• Meet customers’ demand growth
• Attractive returns even in adverse scenarios of pulp price and BRL
• Solid financial profile
50
BACK UP
Maritime Wood Shipping Project
► Capex and Opex reduction;
► Increase in cargo handling due to increase in
stack height volume
► Reduction in heavy truck road traffic
► Capex: R$ 54 million (accomplished in 2016)
► Start-up: Sep/2017
► Saving OPEX: R$ 24 million/year
PROJECT DESCRIPTION (ARACRUZ UNIT)
Forestry operations productivity
Transportation
51
Third-party wood reductionNon-recurring impacts starting to decrease
Third party wood increase from previous forecast due to recent rain shortage at Aracruz Unit forest base and optimization of Três Lagoas forest base
The average distance will drop sharply generating an Opex reduction
52(1) Does not include Veracel but considers H2 Project forest base | (2) FX @ BRL/USD3.30.
NPV from peak to normalized level(2):CAPEX: BRL1.5 billion (USD 0.5 billion) | OPEX: BRL 1.0 billion (USD 0.3 billion)
Total NPV:BRL2.5 Bn or USD0.8 Bn
788Thir
d-p
arty
wo
od
¹ (%
)
225193 197 187 181 194
242
311 307 290239
190 173 170 167 166 164
0
50
100
150
200
250
300
350
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Average distance from forest to mill
Third-party wood
Average d
istance fro
mfo
rest to m
ill ¹ (km
)
68%34% 63% 73% 67% 75% 72%% Planting 84%
Third-party wood reduction
► Most part of the standing wood was already paid
► Despite the higher forest to mill distance, the wood from Losango is less expensive than the
available wood from around Espírito Santo and Bahia States
► Positive impact over industrial costs due to better productivity
Losango
53
Industrial: maintenance downtimes schedule change
► Regulatory Standard 13 (Boiler and Pressure Vessel Inspection) extended the maximum period between recovery boiler inspections from 12 to 15 months.
► Fibria was the first company to use the extended period benefit
► NPV: R$385 million
54
55
Global Market Pulp Demand
Hardwood demand will continue to increase at a faster pace than Softwood
Paper Production – Runnability with BHKP
Source: RISI conference, August 2014.
Demand growth rateHardwood (BHKP) vs. Softwood (BSKP) (000 ton)
Source: PPPC reports. Excludes Sulphite and UKP market pulp (Nov./16)
000 ton 2000 2010 2020Growth 2000-2010
Growth 2010-2020
Hardwood 16.2 25.1 35.6 55% 42%
Eucalyptus 6.6 15.9 25.2 140% 58%
Softwood 18.9 22.2 25.8 17% 16%
Market Pulp 35.1 47.3 61.4 35% 30%
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
Hardwood Softwood
Source: PPPC report (May 2017)
2016 - 2021 CAGR:Hardwood: +3.04%Softwood: +1.24%
56
China's Share of Market Pulp(2)
10% 10%12% 14%
21%
17%
22%23% 23% 24%
25% 26%
0
2
4
6
8
10
12
14
16
0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Eucalyptus Hardwood Total % Compared to the global Market Pulp
Benefiting From China’s Growth
(1) PPPC – Pulp China – Flash Report – May/2017(2) PPPC – W20. Coverage for chemical market pulp is 80% of world capacity (3) RISI
(million t)
Latin America is the leading exporter of BHKP to China, accounting to approximately 55% of China's total imports in 5M17
(‘000s t)
(1) includes South Africa and New Zealand. | (2) Includes China, Japan, Malaysia, Russia, Thailand and Vietnam.
China’s Hardwood Imports of BHKP by Country(1)
4,160
2,274
793 908
79 94 12
4,853
2,679
1,017
865100 125 67
BHKP Total LatinAmerica (1)
Indonesia Others(2) USA Canada WesternEurope
5M16 5M17
World Tissue Consumption, 1995-2016(3)
Per Capita Consumption of Tissue by World Region(3)
(Kg/capita/year)
(million t)
0
5
10
15
20
25
30
35
40
1995 2000 2005 2010 2011 2012 2013 2014 2015 2016N.America W.Europe E.Europe JapanChina Asia FE Middle East LatAmAfrica Oceania
Annual Growth Rate +3.7%
24,9
15,9 15,3
11,2
6,0 6,2 5,6
0,6
N.America
WestEurope
Japan Oceania EastEurope
LatAm China Africa
57
Growth rate Chinese GDP vs. Eucalyptus Shipments to China (Sept-09 = base 100)
Source: Bloomberg and PPPC – W20 report (Jul/2017)
-
50
100
150
200
250
300
China GDP Eucalyptus Shipments
284
76
58
Global Paper Consumption
CAGR 2000 – 2010Developed Markets: - 2.1%Emerging Markets : + 5.6%
P&W Consumption (000 tons)(1)
Tissue Consumption (000 tons)(1)
CAGR 2010 – 2020Developed Markets: - 3.1%Emerging Markets : + 0.9%
CAGR 2000 – 2010Developed Markets: + 1.5%Emerging Markets : + 6.6%
CAGR 2010 – 2020Developed Markets: + 1.4%Emerging Markets : + 5.9%
Source: RISI
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
E
20
16
E
20
17
E
20
18
E
20
19
E
20
20
E
Developed Markets Emerging Markets
99,977103,286117,611 109,758
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
E
20
16
E
20
17
E
20
18
E
20
19
E
20
20
E
Developed Markets Emerging Markets
20,979
30,357
41,712
59
Benefiting From China’s Growth
Ship
men
ts (
00
0 t
on
)
BH
KP
pri
ces
-C
IF C
hin
a (U
S$/t
on
)
(‘000s t)
China: Eucalyptus pulp shipments
2010
average:
250 ktons
2011
Average
379 ktons
2012
Average
370 ktons
2013
Average
439 ktons
2014
Average
504 ktons
2015
Average
531 ktons
2016
Average
612 ktons
Source: PPPC Global 100 may 2017
0
100
200
300
400
500
600
700
800
900
0
100
200
300
400
500
600
700
800
900
mai
-10
jun
-10
jul-
10
ago
-10
set-
10
ou
t-1
0n
ov-
10
dez
-10
jan
-11
fev-
11
mar
-11
mai
-11
jun
-11
jul-
11
ago
-11
set-
11
ou
t-1
1n
ov-
11
dez
-11
jan
-12
fev-
12
mar
-12
abr-
12
jun
-12
jul-
12
ago
-12
set-
12
ou
t-1
2n
ov-
12
dez
-12
jan
-13
fev-
13
mar
-13
abr-
13
mai
-13
jul-
13
ago
-13
set-
13
ou
t-1
3n
ov-
13
dez
-13
jan
-14
fev-
14
mar
-14
abr-
14
mai
-14
jun
-14
ago
-14
set-
14
ou
t-1
4n
ov-
14
dez
-14
jan
-15
fev-
15
mar
-15
abr-
15
mai
-15
jun
-15
jul-
15
set-
15
ou
t-1
5n
ov-
15
dez
-15
jan
-16
fev-
16
mar
-16
abr-
16
mai
-16
jun
-16
jul-
16
ago
-16
ou
t-1
6n
ov-
16
dez
-16
jan
-17
fev-
17
mar
-17
abr-
17
mai
-17
jun
-17
BHKP Price
Shipments
2017
Average
689 ktons
60
Global BHKP Market Pulp Supply Cost Curve
Source: Pöyry.
COST CURVE EVOLUTION
USD
/Ad
t, 2
01
3 c
ost
leve
l
Cumulative Capacity Million t/a
Cost position of marginal
producer
61
Tightening plantation wood and chip supply could add to the cash cost of Asian pulp mills
Source: Pöyry.
Cumulative Capacity Million t/a
USD
/Ad
t, 2
01
3 c
ost
leve
l
62
Growth in Asia is empowered by urbanization and increasing disposable income
Source: Pöyry.
63
The share of non-wood pulp will decline
Source: Pöyry.
64
Current Zero Cost Collars
(1) As of Sep 1, 2017.
Notional TotalUS$ 2,456 MM
3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
6.00
5.50
5.00
4.50
4.00
3.50
3.00
(1)
Carteira ZCC ¹
Strike Put Strike Call FWD
3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Notional (US$ million) 115 420 502 544 460 415
Strike put avg. 3.24 3.37 3.22 3.15 3.15 3.18
Strike call avg. 6.36 5.60 4.52 4.48 4.30 4.40
FWD 3.95 3.94 3.60 3.59 3.51 3.56
6.50
7.00
65
Hedge
GovernanceHedging Strategy
Debt Hedge:
▶ Maturity aligned with original debt (until 2023)
▶ No margin call
▶ No threshold
▶ Swap operations (currency and rate)
Operating Hedge:
▶ Net FX exposure protection in US$ up to Dec/18
▶ No leverage
▶ No margin call
▶ No threshold
▶ Current strategy:
▶ Zero Cost Collar (protecting a minimum EBITDA
margin)
▶ All Fibria operations are registered at CETIP
▶ Hedging Policy approved by the Board of Directors
and available at the Investor Relations website.
▶ Periodical follow up of the hedge portfolio by the
Finance Committee.
▶ Maximum % of exposed operational cash flow is
defined according to the FX risk management
policy.
▶ Governance, Risk and Compliance (GRC)
Department:
▶ Independent report to CEO and to the Statutory
Auditing Committee
▶ Responsible for monitoring policies compliance
▶ Independent from Treasury Department
66
Initiatives for Leverage Management
Amount
Net
Debt/EBITDA
reduction
(USD
million)(x)
Working Capital Release 95 0.09x
Accounts receivable (customers) 40 0.04x
Accounts payable (suppliers) 55 0.05x
Capex 96 0.10x
Forestry 31 0.03x
Capex H2 65 0.07x
Total 191 0.19x
Initiatives expected to be implemented in the short term
Initiatives under analysis
Amount
Net
Debt/EBITDA
reduction
(USD
million)(x)
Accounts payable
(suppliers)420 0.37x
Others 110 0.12x
Total 530 0.49x
Total: USD 721 million (0.68x)
90%
95%
100%
105%
110%
set-16 dez-16 mar-17 jun-17 set-17 dez-17 mar-18 jun-18 set-18
Real Euro CAD Peso Chileno RMB Rupia Peso Uruguaio
Bloomberg Forecast
EVOLUTION OF CURRENCIESFX devaluation is expected
67
67
** Bloomberg Forecast (Sep 5, 2017)
Sep/16 Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Mar/18 Jun/18 Sep/18
Chilean peso Uruguayan peso
Free cash flow(1)
Positive quarterly FCF in the last 5 years, even during appreciated FX
68
USD million
EBITDA Margin
Average FX
-7
125
29
77
194
84
113
53
329
4
111
51
103130
112
317
225
158
118 124135
80
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
(1) Excluding H2 Project, dividends, pulp logistics and land purchase effects.
1.77 1.96 2.03 2.06 2.00 2.07 2.29 2.27 2.37 2.23 2.27 2.55 2.87 3.07 3.45 3.84 3.90 3.51 3.25 3.26 3.15 3.22
30% 37% 37% 41% 39% 39% 41% 42% 41% 35% 35% 45% 50% 50% 56% 54% 52% 43% 43% 36% 37% 45%
69
Fibria’s tax structure
(1) Considering FX 3.3082 | (2) Considering average FX for the period
Description and Amount¹ Maturity
(a) Operating income As stated in the income statement
(-)(b) Goodwill (Aracruzacquisition)
- Annual tax deduction: US$ 27 million (tax)
- Remaining Balance Jun/17: US$ 0.133 billion (base)2018
(-)(c) Forestry Capex in MS state (net)
2017 tax deduction related to depletion: US$ 12.18 million Undefined
(+/-)(d) Exchange variation(cash)
---------- ----------
(+/-)(e) Other ---------- ----------
Tax base beforecompensations
(a) + (b) + (c) + (d) + (e)
(f) (-) Tax loss carryforward- Up to 30% of tax base before compensations
- Balance up to Jun/17: US$ 432 million (base)Undefined
(g) Tax base Tax base before compensations – tax loss carryforward (f) ----------
(h) Income tax Tax base (g) * 34% ----------
(i) (-) Federal tax credits
Balance Jun/2017:- PIS/COFINS: US$ 233 million
- Withholding tax (IR and CSLL): US$ 342 million- Reintegra: US$ 42 million
Undefined
Cash Tax Income Tax (h) – tax credits (i)
2010 2011 2012 2013 2014 2015 2016 2Q17
US$ 9 million US$ 2 million US$ 8 million US$ 14 million US$ 12 million US$ 23 million US$ 36 million US$ 6 million
TAX PAYMENT2 (cash basis)
70
Dividends
2017
April 28, 2017 May 18, 2017 Mid-November, 2017 Mid-December, 2017
GSM to approved dividend distribution (approved R$393 million)
Extraordinarydividendappraisal
Extraordinarydividendpayment(if approved)
► Proposed dividends based on cash generation, taking into consideration the company’s strategicplanning and in line with its policies, notably the Indebtness and Risk Management policies.
► Preserving Investment Grade.
Commitment to Corporate Governance best practices.
Extraordinary dividend if Policy criteria are met.
Dividendpayment of R$ 393 million