Apresentação do PowerPoint - Fibria Presentation UBS.pdf · UBS LatAm Fixed Income Trip ......

UBS LatAm Fixed Income TripFebruary, 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

Agenda

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 41.44% + Treasury 0.06%

Votorantim S.A. (1)

29.42%

BNDESParticipações (1)

29.08%

FreeFloat (2)

41.50%

► 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

Remuneratio

n 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 – 2016

Pulp capacity(1) million tons 5.300

Net revenues US$ billion 2.758

Total Forest Base(2) thousand hectares 969

Planted area(2) thousand hectares 568

Net Debt US$ billion 3.509

Net Debt/EBITDA (in Dollars)(3) X 3.30

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

* Veracel is a joint venture 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

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 – 2016 End Use – 2016

39% 41% 43%36%

28% 24% 24%

22%

24% 25% 24%32%

9% 10% 9% 10%

2013 2014 2015 2016

Europe North America Asia LatAm

48% 34%

18%

Printing & Writing

Specialties

Tissue

Europe36%

N. America

22%

Asia32%

LatAm10%

9

Leadership Position

(1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Global 100 Report December 2015

Recycled Fiber 242 million t

46% 54%

59%

18% 82%

59% 41%

41%

30% 70%

25%75%

Fiber Consumption412 million t

Pulp 169 million t

Chemical140 million t

Mechanical30 million t

Integrated Mills 83 million t

Market Pulp 57 million t

Hardwood31 million t

Other Eucalyptus Pulp producers:

16 million t

Softwood/Other 26 million t

Acacia/Other 9 million t

Eucalyptus21 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 customer’s 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)

2016 4T16 3T16 2T16

478 183 164 131

11

Pulp and Paper Market

12

What happened in 2016 ? … Compared to our Forecast

BHKP CAPACITY CHANGES

**Source: Fibria’s estimates **Source: Total year Fibria estimates and PPPC G100 BEKP demand growth Jan-Nov 2016

FIBRIA’S EXPECTED SCENARIO FOR 2016 YEAR-TO-DATE SCENARIO IN 2016

1,119

870

-350

-100

-90

-40

20

30

600

800

BEKP demand growth**

Net

Unexpected Closures,Conversions and Downtime

APRIL Kerinci

Woodland

Old Town (Expera)

Ence Navia

Altri Celbi

Klabin

CMPC Guaiba II

1,3001,500

985

-200

-120

-55

-90

-40

30

660

800


Net


APRIL Kerinci

Verso Wickliffe

Woodland

Old Town (Expera)

Altri Celbi

Klabin

CMPC Guaiba II

China, Uruguay, Chile,

Spain and Brazil

Actually... 2016 has been even more “balanced” than previous 2 years !

13

Ratio: Demand Growth /

Net Capacity Increase

2012 2013 2014 2015 2016

Eucalyptus Demand Growth

(Kt)

Hardwood Net Capacity

Increase (Kt)

370

1,305 1,619

1,088

1,300

30

605

1,770

1,450

870

Source: PPPC - Global 100 (historical demand), Outlook for Eucalyptus Market Pulp Oct 2016 and Fibria’s estimates

12.33 2.16 0.91 0.75 1.50

Yet…Prices performance has been much worse than forecasted!

14

BHKP DELIVERED TO EUROPE (USD/T)

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2015 for 2016 prices)

758

764756 757 759765

696

671

655

697

1Q16 2Q16 3Q16 4Q16 Annual 2016

Consultants' average end 2015 for 2016 Realized PIX/FOEX

In our view, there is one major reason for this “lousy” market price scenario: 2016 Global growth has “ONLY” been relying on China

BHKP DEMAND (KT AND % CHANGE, Y-O-Y)

15Source: PPPC Global 100

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

SO WHAT CAN WE EXPECT IN 2017 ? …SAME AS 2016 ?

BHKP CAPACITY CHANGES

16** Fibria’s estimates | Source: PPPC - Global 100 (historical demand), Outlook for Eucalyptus Market Pulp Oct 2016 and Fibria’s estimates

FIBRIA EXPECTED SCENARIO FOR 2017 IN THE END 2016 SCENARIO IN 2017

Ratio: Demand

Growth / Net

Capacity

Increase

2012 2013 2014 2015

Eucalyptus

Demand Growth

(Kt)

Hardwood Net

Capacity Increase

(Kt)

2016

370

1,305 1,619

1,088

1,300 1,350

30

605

1,770

1,450

870 770

2017

12.33 2.16 0.91 0.75 1.50 1.751,350

770

-550

-60

-40

-80

-300

-100

100

300

1,000

500


Net


Navigator Cacia

Resolute Calhoun

Taiwan P&P

APRIL Rizhao

APRIL Kerinci

Metsa

Fibria TLS II

APP OKI

Klabin

17

We don’t think so !Because, we expect a combination of the following factors:

USA: a recovery of the

demand for Eucalyptus

mainly triggered by a

few local HW closures

(temporarily or not)

U$ 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... U$/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

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!

18

100%

70%

75%

80%

85%

90%

95%

100%

105%

Feb

-13

Ap

r-1

3

Jun

-13

Au

g-1

3

Oct

-13

De

c-1

3

Feb

-14

Ap

r-1

4

Jun

-14

Au

g-1

4

Oct

-14

De

c-1

4

Feb

-15

Ap

r-1

5

Jun

-15

Au

g-1

5

Oct

-15

De

c-1

5

Feb

-16

Ap

r-1

6

Jun

-16

Au

g-1

6

Oct

-16

De

c-1

6

Min.

Shipments of Hardwood and Eucalyptus Pulp

Global Market BEKP Demand

2016 vs. 2015(1)

(1) Source: PPPC Global 100– December/2016

1,247kt

-158 kt

1,350kt

325 kt

42 kt

303kt

Total NorthAmerica

WesternEurope

China Others

BHKP BEKP

1,655kt

1,543kt

-270 kt

-233kt

8%

2% -3% -3%

15%

24%

4% 6%


4%

-5%

Operating Rate (shipments to capacity) - Hardwood (2)


CAGR BEKP 2012-2016(3)

2,763 kt

145 kt467 kt

1,700 kt

451 kt

16%

8%7%

40%

10%

Total NorthAmerica

WesternEurope

China Others

36

Days of Supply - Hardwood (2)

19

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

20

Source: PPPC. RISI and Public information as of November, 1st

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

-985

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016-2018 (1)

(1) Realized closures: as of September 2016 | 2016: -90kt Woodland (USA), -100kt April Kerinci (Indonesia), -40kt Old Town (Expera) | 2017: Resolute Calhoun: -40kt, -400kt April Kerinci and Rizhao (Indonesia), -80kt Taiwan P&P, -60kt Navigator Cacia | 2017/2018: -275kt Arauco Valdivia (Chile)

Closures do not include temporary movements. Unexpected downtimes/closure in 2016 totaled 350kt (not included in the chart above).

Potential Additional

Conversions

Competitive Cash Production Cost

21

Source: Hawkins Wright (Production Costs December 2016) and Fibria’s 4Q16 Earnings Release-FX considered by the consultant at BRL/USD = 3.19.

Fibria with Horizonte 2 (H2) cash cost was estimated according to weighted average cost, after mill balance, converted at BRL/USD=3.19. Includes energy sales.

456 427

343 339295 279

217 211155

5254

108

3056

57

52 49

58

508481

451

369 351 336

26943

37

6

6

126

92

35

35

441

383

USA China Canada Iberia Chile/Uruguay Indonesia Brazil Fibria 2016 EstimatedFibria w/ H2 -

2021Cash Cost (US$/t) Delivery CIF Europe

Capex

SG&AIncome tax

Interest

WC=($29/t)

BHKP (USD/t)

BHKP

capacity

(‘000 t)

1,130 1,105 2,075 2,290 4,915 3,420 15,275 TOTAL: 30,210

22

Gross capacity addition should not be counted as the only factorinfluencing pulp price volatility….(1)

Cap

acit

y A

dd

itio

ns

(00

0 t

on

)

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

BHKP BSKP

Valdivia

APP Hainan

VeracelNueva Aldea

Santa Fé

Mucuri

FrayBentos

KerinciPL3

Três Lagoas

Rizhao

APP Guangxi

ChenmingZhanjiang

Eldorado

Montes del Plata

Maranhão

Guaíba II

APP South Sumatra(2)

Klabin

OjiNantong

Horizonte 2

Pu

lp p

rice

s -

CIF

Eu

rop

e (U

S$/t

on

)

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Apr/16), Brian McClay (Jun/16) and RISI (Apr/16)(2) Partially integrated production.(3) Source: Bloomberg

Spread Europe Price @Jan 31st, 2017: US$151/t(3)

In the last 15 years, pulp volatility has been just 8%...why?

23

► 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 (~25%) compared to hard commodities (70%+)

► Market end users are linked to consumer goods, such as tissue

► Incipient pulp price futures market and low liquidity

Source: Bloomberg – January 31st, 2017

0

40

80

120

160

De

c-9

9M

ar-0

0Ju

n-0

0Se

p-0

0D

ec-

00

Mar

-01

Jun

-01

Sep

-01

De

c-0

1M

ar-0

2Ju

n-0

2Se

p-0

2D

ec-

02

Mar

-03

Jun

-03

Sep

-03

De

c-0

3M

ar-0

4Ju

n-0

4Se

p-0

4D

ec-

04

Mar

-05

Jun

-05

Sep

-05

De

c-0

5A

pr-

06

Jul-

06

Oct

-06

Jan

-07

Ap

r-0

7Ju

l-0

7O

ct-0

7Ja

n-0

8A

pr-

08

Jul-

08

Oct

-08

Jan

-09

Ap

r-0

9Ju

l-0

9O

ct-0

9Ja

n-1

0A

pr-

10

Jul-

10

Oct

-10

Jan

-11

Ap

r-1

1Ju

l-1

1O

ct-1

1Ja

n-1

2A

pr-

12

Jul-

12

Oct

-12

Jan

-13

Ap

r-1

3Ju

l-1

3O

ct-1

3Ja

n-1

4A

pr-

14

Jul-

14

Oct

-14

Jan

-15

Ap

r-1

5Ju

l-1

5O

ct-1

5Ja

n-1

6A

pr-

16

Jul-

16

Oct

-16

Jan

-17

BHKP - FOEX Europe (base 100) CPI (base 100)

24

Lowest volatility among commodities

Source: Bloomberg – January 31st, 2017

Low volatility of hardwood pulp price, even though

new capacities have come on stream during the period.

20

50

80

110

140

170

200

230

Jan

-12

Feb

-12

Ma

r-1

2A

pr-

12

Ma

y-1

2Ju

n-1

2Ju

l-1

2A

ug

-12

Se

p-1

2O

ct-

12

No

v-1

2D

ec

-12

Jan

-13

Feb

-13

Ma

r-1

3A

pr-

13

Ma

y-1

3Ju

n-1

3Ju

l-1

3A

ug

-13

Se

p-1

3O

ct-

13

No

v-1

3D

ec

-13

Jan

-14

Feb

-14

Ma

r-1

4A

pr-

14

Ma

y-1

4Ju

n-1

4Ju

l-1

4A

ug

-14

Se

p-1

4O

ct-

14

No

v-1

4D

ec

-14

Jan

-15

Feb

-15

Ma

r-1

5A

pr-

15

Ma

y-1

5Ju

n-1

5Ju

l-1

5A

ug

-15

Se

p-1

5O

ct-

15

No

v-1

5D

ec

-15

Jan

-16

Feb

-16

Ma

r-1

6A

pr-

16

Ma

y-1

6Ju

n-1

6Ju

l-1

6A

ug

-16

Se

p-1

6O

ct-

16

No

v-1

6D

ec

-16

Jan

-17

Iron Ore Soy Bean Crude Oil Sugar BHKP - FOEX Europe Exchange Rate (R$/US$)

101

168

87

6054

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

2Since January 1, 2009 up to January 31st, 2017

Historical Volatility of Commodities (US$) 2 – Lower than FX

86

25

Financial and Operational Highlights

26

Each 5% depreciation of the Real increases EBITDA by aroundR$420m and FCF by R$550m

815,0

1,488

1,173 1,1531,295 1,185

1,560

1,073

2009 2010 2011 2012 2013 2014 2015 2016 2017 (e)

Exchange Rate Average (R$/US$)

EBITDA Margin

EBITDA (US$ million)

Fibria net pulp price(US$/t)

Fibria net pulp price(R$/t)

2.00 1.76 1.67 1.95 2.16 2.35 3.33 3.49 3.40(1)

456,0

670,0 639,0 581,0 610,0 572,0 582

496 490(2)

29%

40%34% 36%

40% 39%

53%

43%

912 1,179 1,067 1,133 1,311 1,3441,951 1,731 1,666

(1) According to Focus Report (Brazilian Central Bank – January 31th, 2017) I (2) 2017 market consensus

27

Cash Production Cost (R$/t) – 4Q16

618680

581

649

2015 2016

With downtimes Without downtimes

620 624 648

4Q15 3Q16 4Q16

Cash Production Cost (R$/t)Cash Production Cost Ex-downtimes (R$/t)

+4.5%

658

737 727 42

35

(12)

10 4

(10)

4Q15 Highermaintenancedowntimes

impact

Inflation FX Lower energyprice

Wood Total Managementgains

4Q16

External factors

28

Cash Production Cost in dollars saw a decrease over the last years

But lately, it has been

influenced

by 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

186195

2009(2) 2010(2) 2011 2012 2013 2014 2015 2016

1.99 1.76 1.67 1.95 2.16 2.35 3.33 3.49Average

FX (BRL/USD)

(1) Excludes Conpacel

Net Results (US$ million) –2016

29

1,073

477

488

201(118)

(569)

(396)

(202)

AdjustedEBITDA

FX Debt MtMhedge

Net interest Deprec., amortiz. and

depletion

Income Taxes Others Net income∆∆

deferred

current

Non-recurring effects

(1) Includes other Exchange rate/monetary variations, other financial income/expense and other operating income/expenses

(1)

Minimum proposed dividend of R$393 million(2)

(2) Equivalent to minimum annual dividend of 25% of net income, adjusted by the changes in reserves

30(1) Does not consider Horizonte 2 Project and pulp logistics projects. (2) Includes other financial results.

Free Cash Flow (1) (US$ million)

1.073

542

(583) (126)(30) ( 8 )

Adjusted EBITDA 2016 Capex(ex-H2 and logistics projects)

Net interest Working Capital Income Taxes Others FCF 2016

216

Klabin effectH2 funding

interest

244

104

(187)

(58) (5)

109

Adjusted EBITDA 4T16 Capex(ex-H2 and logistics

projects)

Net interest Working Capital Income Taxes FCF 4T16

4Q16

2016

31

ROE and ROIC (R$)

ROE = Adjusted EBIT(1)/ Equity before IAS 41(2) 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

AverageFX

(R$/US$)1.95 2.16 2.35 3.33 3.49 1.95 2.16 2.35 3.33 3.49

AverageNet Pulp

Price(US$)

581 610 561 586 496 581 610 561 586 496

AverageFX

(R$/US$)

AverageNet Pulp

Price(US$)

3.4%5.7% 6.2%

25.1%

8.9%

2012 2013 2014 2015 2016

6.9%9.2%

8.0%

22.8%

9.0%

2012 2013 2014 2015 2016

32

Indebtdeness

Gross Debt and Cash Position (million) Net Debt (Million) and Leverage

Interest Expense/Income (US$ million) and Cost of Debt in US$(1)

473414 408

350

268

200144

209

96143

10878

45 39 39 59

2009 2010 2011 2012 2013 2014 2015 2016

6.3 5.95.5 5.2

4.6

3.4 3.3 3.6

Interest Expense (Gross)Average cost in US$ (% p.a.) Interest on Financial Investments

6.3 5.95.5

5.24.6

3.4 3.3(1)

Cost of debt

(1) Considering the portion of debt in reais fully adjusted by the market swap curves at the end of each period | (2) Total weighted average cost of 97.8% of the CDI

2.062.33

3.06

1.78

2.643.30

11,015 10,620 11,435

2,821 3,272 3,509

Dec/15 Sep/16 Dec/16

R$ US$

Net debt/EBITDA (R$) Net debt/EBITDA (US$)

1,730

4,717

443 1,447

Dec/15 Dec/16

Cash position

R$ US$

12,744

16,153

3,2644,956

Dec/15 Dec/16

Gross debt

R$ US$

H2

CRA(2)

33

0.4

1.6

0.20.3

0.1

0.1

0.2

0.8

Export Prepayment CRA BNDES FDCO ECA Working capitalrelease (2)

Total

0,3 - 20170,1 - 2018

0.3

0.1

0,2 - 2017

3Q153Q15

0,1 - 2017

0.3

2.4

0,1 – 2017

Robust Liquidity – USD million(@December 31, 2016)

1,442

541

349559

919786

629356

534691

8928

714

Liquidity 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Pré-pagto. BNDES

NCE ACC/ACE

Voto IV Bonds

Finnvera CRA e Outros

Cash on hand(1)

Revolver

2,683

Capex H2 (2):

(1) Capex to be executed on Horizonte 2 Project | (2) Related to the agreement with Klabin

Horizonte 2 Funding (US$ billion)

(1) Not including US$18 million related to MtM of hedging transactions. | (2) Financial execution of US$1,248 million capex until December, 2016.

Funds withdrawn until Dec 31, 2016. Contracted funds to be withdraw

886 61

Bond 2027 on Jan 11th, 2017: US$700 million |

coupon of 5.5% p.a.

0.4

Horizonte 2 Project

US$2.2 bn

Excess of US$0.2 bn

34

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)

35

Waiver on 4.5x Covenant was Fully NegotiatedHorizonte 2 start up in 4Q17 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

NET DEBT/EBITDA (USD)

1.86 2.10

2.64

4.5 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 and

Liquidity limits (1)

(1) As stated on the Liquidity and Indebtedness Policy and Shareholders Agreement

36

Capital Structure: Fibria has achieved the lowest leverage ratio among its Latin American peers

Net Debt/EBITDA (x)(1)

Fibria Arauco CMPC Klabin Suzano

S&P BBB-/Negative BBB-/Stable BBB-/Stable BB+/Stable BB+/Stable

Moody’s Ba1/Negative Baa3/Stable Baa3/Stable - Ba2/Stable

Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Negative BB+/Positive

(1) Fibria’s historical data in BRL.

3.12.4

5.1

3.43.6

8.1

4.2

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Fibria Suzano Klabin CMPC Arauco Eldorado

37

One of the best performances among Brazilian corporate issuers(1)

(1) G-spread on January 27th, 2017

Historical G-spread (bps)

BBB-

BBB-

Rating Outlook

Negative

Stable

0

200

400

600

800

1000

1200

1400

2010 2011 2012 2013 2014 2015 2016

Fibria 2020 - 7.5% Fibria 2021 - 6.75% Fibria 2024 - 5.25%

229 246 248 268 271 280 282 297 334 334 353 396

996

271 278 280 307,8

444

VALE BRAZIL EMBRAER FIBRIA BRFOODS RAÍZEN GLOPAR BRASKEM SUZANO KLABIN GERDAU PETROBRAS ELDORADO BRAZIL EMBRAER RAÍZEN FIBRIA PETROBRAS

Issuance with maturity in 2024 Issuance with maturity in 2027

38

2017 OUTLOOK – CAPEX AND CASH COST

Fibria CAPEX 2017– BRL million

39

(1) Converted at 2017 average FX - BRL/USD 3.40, according to Focus Report (Brazilian Central Bank – Jan 31th, 2017)

2,145 57

3,011

2017 CAPEX MaintenanceGuidance (including

modernization)

Logistics Projects H2 2017 CAPEX Total Guidance

5,213

USD630 mn(1)

USD1,533 mn(1)

Cash Cost update (USD/t) @2021BRL/USD 3.19

40(1) Converted at 3Q16 LTM FX at BRL/USD 3.19

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

41

Expansion Project – Horizonte 2

42

• 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 growth

potential

What is the importance of growth for Fibria?

• Wider fixed costs dilution

• Cost curve position improvement

• Greater bargaining power with suppliers

43

Fibria’s nominal capacity

5,300 5,300 5,300 5,300 5,300 5,300

900 900 900 900 900 900

300

1,740 1,850 1,950 1,950 1,950

2017 2018 2019 2020 2021 2022

Horizonte 2 ('000 t)(1)

Klabin's Puma Project ('000 t)(1)

Current Production ('000 t)

ESTIMATED MARKET BHKP CAPACITY RANKING 2017 (000T)

6,500

7,940 8,050 8,150 8,150 8,150

Source: RISI, Hawkins Wright, PPPC and Fibria (Nov 2016)

0 2000 4000 6000 8000

Domtar

Soedra

Klabin

International Paper

Lwarcel

Resolute

Verso

Georgia Pacific

Woodland

Navigator

Metsä

Oji

Nippon

Ilim

Marubeni

Mondi

Altri

Ence

Cenibra

Stora Enso

Arauco

Eldorado

UPM

CMPC

April

Suzano

APP

Fibria 8,150

Current Capacity

New Capacity

New Capacity – Klabin Agreement

New Capacity – Horizonte II Project

(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.

44

Pulp sales destination: Fibria growing where the market grows

(1) Considers 4Q16 last twelve months. | (2) Includes Klabin’s sales volume

37%

36%

36%

32%

19%22%

8%10%

Total sales volume distribution

after H2 start up(2)

Current net revenue distribution(1)

45

Horizonte 2 Project

Site Overview(1)

57%of financial execution

- cash disbursement

(BRL 3.2 billion)

77%overall completed

Energy Surplus

130 MWh

Start-up

beginning of

4Q17

Expansion

Capex of

USD2,254 M (USD1,156/t)

(1) @Fibria Day

46

Already planted since project approval

125,000 ha

To be planted

62,000 ha

Total

187,000 ha

Wood purchased

5.0 million m3

7,000 ha to be planted in 2016

55,000 ha to be planted in 2017 and 2018

Average distance from forest to mill H1 + H2 up to 100 km

Horizonte 2 Forestry BaseForestry base secured as planned

47

Logistics

Mato Grosso

Mato Grosso do

Sul

Goiás

Brasilia

Port Terminal 32

48

CapexFlexibility in the Timetable, without changing the startup date

TOTAL CAPEX (BRL BILLION) CAPEX EXECUTION TIMETABLE (BRL MILLION)

292

4,0263,011

200

2015 2016 2017 2018

8.745 7.529

Nov. 2015Forecast

CurrentForecast

3%

50%

39%

- BRL 1,216 mn

USD 2.396 bn(1) USD 80 mn USD 886 mn USD 61 mn

(1) FX = 3.65 BRL/USD on previous forecast. FX = 3.40 BRL/USD on current forecast. (2) Average FX according to capex execution.

USD 2.213 bn(1)

3.33FX(2) 3.40 3.28

8%

3.49

USD 1,168 mn

49

8.7

4.3

3.2

7.5

November, 2015 Savings,Contingencies

and indirect costs

FX Inflation Others December, 2016

To be

disbursed

Executed

USD 2,214 USD 2,213

BRL/USD 3.95 BRL/USD 3.40

BRL/

USD

3.39

BRL/

USD

3.46

Historical Horizonte 2 Project Capex (USD billion)

50

FundingCost and maturity

Amortization Schedule (2) – 4Q16 Proforma with TLS II + Bond 2027 (700 MM) – US$ million

Average Cost (US$ p.a)(1)

Average Maturity (years)

(1) Swap Bloomberg | (2) FX considering new funding for the TLS II Project: 3.2591

2,147

541

2,688

349569

1,001869

712

438616

773

17268

728

Caixa 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

BNDES Bond EPP ECN ACC/ACE CRA BNB Finnvera Finame Development Agencies (FCO, Finep & FDCO)

Revolver

Cash on

hand

4T16 4T16 + H2

3,6%

4,3

3,5%

4,5

4T16 + H2 + Bond

3,7%

5,1

H2

2,9%

6,2

51

Horizonte 2 project assumptions

(1) Includes chemical leasing and to increase capacity to 1,950 kt/year (FX BRL/USD @3.32)

(2) Estimated sustaining capex in perpetuity (FX BRL/USD @ 3.30)

(3) Estimated weighted average cost, after mill balance. Includes energy sales (FX BRL/USD @3.30)

UNIT R$ US$

Pulp production/year k tons 1,950 1,950

Expansion capex(1) $ billion 7,492 2,254

Expansion capex(1) $/t 3,854 1,156

Sustaining capex(2) $/t 208 63

Cash production cost(3) $/t 340 103

Energy surplus MWh 130 130

Project approval FX BRL/USD 2.80 -

All in cash cost (estimated range)(4) $/t - 270-320

Net pulp price(5) $/t - 490

Free Cash Flow (estimated) $/t - 170-220

Payback period (estimated) years - 5.3-6.8

(4) Cash cost + freight + SG&A + Sustaining Capex + Interest + taxes (FX BRL/USD @3.30)

(5) 2017 market consensus.

52

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

53

BACK UP

54

Green Bond 2027

55

Bond Offering Summary

Issuer Fibria Overseas Finance Ltd.

Guarantor Fibria Celulose S.A.

Issue Format SEC Registered

Ratings BBB- (neg) / BBB- (stb)

Ranking Senior Unsecured

Use of Proceeds Eligible Green Projects

Issue Amount US$700 million

Securities Offered 5.5% Senior Notes due 2027

Book US$3.5 billion

Listing New York Stock Exchange (NYSE)

Book US$3.5 billion

56

– Fibria sustainably manages forested areas toFSC® and PEFC standards, to include:

• Production and acquisition of eucalyptusseedlings

• Preparation of soil for the plantation of seedlingsincluding subsoiling and harrowing activity

• Plantation of seedlings

• Protection and maintenance of planted seedlingsup to harvest

– Environmental Benefit / Impact: Withmanagement to these standards, Fibria is contributingto:

• Carbon sequestration;

• Water quality and cycle regulation;

• Erosion control, soil protection and nutrientcycling;

• Natural areas protection

Pro

du

ctiv

ity

ind

ex /

ye

ar

Note: Fibria has long-term targets (1) to reduce by one third the

amount of land required for pulp production and (2) double carbon

sequestration from the atmosphere. These projects will help to

contribute to this end.

Fibria’s Forest Management

Neighboringareas

FSC License Codes FSC-C100042, FSC-C100704, FSC-C110130

Sustainable Forest Management

Source: Information previously disclosed in public Fibria reports

57

– Fibria invests in projects to restore natural vegetationcover in degraded land, to include:• Acquisition of new native Brazilian seedlings

• Planting native Brazilian seedlings in degraded land

• Creation of ecological corridors and mosaics ineucalyptus plantations so they can serve as wildlife andflora habitat conservation

• Studies that evaluate and monitor the conservation ofHCV areas

– Environmental Benefit / impact: Fibria’s effort to restorenative forest areas has increased forest coverage andbiodiversity, led to improvements in ecosystem services,including:• Carbon sequestration

• Availability and quality of water

• Erosion control, soil protection and nutrientcycling

• Habitat provision

Note: This category contributes to Fibria’s long-term targets to (1) double

carbon sequestration and (2) to promote the environmental restoration of 40

thousand hectares between 2012 and 2025. Since 2012, 13.9 thousand

hectares of environmental restoration has occurred, 35% of the target. 2,402

hectares were restored in 2015 alone. The goal for 2016 will be to restore

2,603 hectares.

Before (2012)

After (2016)

Restoration of Native Trees and Conservation of Biodiversity


58

– Conversion of Production Plant Waste to Soil AcidityCorrective

• At Fibria’s Jacarei and Três Lagoas mills, there is asystem in place to collect byproducts of the industrialprocess and convert this material into a soil aciditycorrective, to be used in Fibria’s forest areas

• The process collects ash, grits, dregs and lime mud fromthe production process and the transformed productreplaces the use of calcium carbonate

– Environmental Benefit & Impact: Fibria’s process totransform the mill byproducts in soil acidity corrective hasresulted in:

• ~30% reduction in waste sent to external landfills fromthe mill sites

Note: Fibria has a long-term target to increase eco-efficiency, by reducing in 91% the quantity of industrial waste

disposed in own or third-party landfills. This project will contribute to meeting the company’s long term goal to reduce

the amount of solid waste sent to landfill to 5kg/adt, by 2025.

Waste Management


59

– Water Recycling and Re-use at Aracruz Mill

Fibria has a range of projects at the Aracruz Millthat reduce water usage

• Reduce the consumption of sealing water ofvacuum pumps of the dryer;

• Reuse water in the hydraulic units of the pressesand baling units;

• Reuse of the cooling water of furnaces in theWater Treatment Plant currently released aseffluent;

• Connect the cooling tower to the causticizingtower, so that water expelled from the coolingtower is then used in the causticizing tower

– Environmental Benefit & Impact: The various water efficiency projects are designed to achieve:

• 310 m3/h reduction in the water withdrawn from the total intake water to the industrial operation.

• This reduction is equivalent to 3.9% in industrial water intake at the mill

Water Efficiency


60

Cost reduction initiatives and industry statistics

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

61(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 million) | OPEX: BRL 1.0 billion (USD 0.3 million)

Total NPV:

BRL2.5 Bn or USD0.8 Bn

788Th

ird

-par

ty w

oo

d (

%)

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

Averag

e distan

ce from

forest to

mill (km

)

68%34% 63% 73% 67% 75% 67%% Planting

35%

283 km

► 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

Third-party wood reduction

Losango

68

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

76

64

Global Market Pulp Demand

Demand growth rateHardwood (BHKP) vs. Softwood (BSKP) (000 ton)

Hardwood demand will continue to increase at a faster pace than Softwood

Source: PPPC report (Sept. 2015) Source: PPPC reports. Excludes Sulphite and UKP market pulp (Sept./15)

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

Hardwood Softwood

2014 - 2019 CAGR:Hardwood: +2.5%Softwood: +0.8%

000 ton 1999 2009 2019

Growth

1999-

2009

Growth

2009-

2019

Hardwood 16.3 24.8 33.8 52% 36%

Eucalyptus 6.0 15.9 24.1 165% 52%

Softwood 19.0 21.4 24.9 13% 16%

Market Pulp 35.3 46.2 58.7 30% 27%

Paper Production – Runnability with BHKP

Source: RISI conference, August 2014.

65

World Tissue Consumption, 1995-2015(3)

Per Capita Consumption of Tissue by World Region(3)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

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nov.2016

Eucalyptus Hardwood Total % Compared to the global Market Pulp

(Kg/capita/year)

(million t) (kg/person/year)

Between 2005 and 2015, the Chinese market share of eucalyptus shipments increased by 20 p.p. (total market pulp: + p.p.)

0

5

10

15

20

25

30

35

40

1995 2000 2005 2010 2011 2012 2013 2014 2015N.America W.Europe E.Europe JapanChina Asia FE Middle East LatAmAfrica Oceania

Annual Growth Rate +3.7%

Benefiting From China’s Growth

(1) PPPC – Pulp China – Flash Report – October 2016(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 10M16.

(‘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)

7.651

4.058

1.740 1.522

169 156 6

8.465

4.647

1.583 1.855

170 159 51

BHKP Total LatinAmerica (1)

Indonesia Others(2) USA Canada WesternEurope

10M15

10M16

25

15 15

11

6 65

1

N.America

WestEurope

Japan Oceania EastEurope

LatAm China Africa

66

Growth rate Chinese GDP vs. Eucalyptus Shipments to China (Sept-09 = base 100)

Source: Bloomberg and PPPC – W20 report (dez/2016)

75

273

-

50

100

150

200

250

300

China GDP Eucalyptus Shipments

67

Commodities Differentiation

China GDP breakdown

China commodity demand - basis 100

49% 49% 48% 49% 49% 50% 50% 52% 51% 53% 53%

44% 47% 48% 48% 48% 48% 48% 46% 47% 45% 45%

8% 4% 4% 3% 3% 2% 2% 2% 2% 2% 2%

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E

Consumption Investment Net Exports

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E

Corn Soybeans Wheat Crude oil Iron ore Sugar BHKP

100

248

201194172

152

124115

Source: Itaú Macroeconomic Department and PPPC – Oct/15

68

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

69

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

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

0o

ut-

10

no

v-1

0d

ez-1

0ja

n-1

1fe

v-1

1m

ar-1

1ab

r-1

1m

ai-1

1ju

n-1

1ju

l-1

1ag

o-1

1se

t-1

1o

ut-

11

no

v-1

1d

ez-1

1ja

n-1

2fe

v-1

2m

ar-1

2ab

r-1

2m

ai-1

2ju

n-1

2ju

l-1

2ag

o-1

2se

t-1

2o

ut-

12

no

v-1

2d

ez-1

2ja

n-1

3fe

v-1

3m

ar-1

3ab

r-1

3m

ai-1

3ju

n-1

3ju

l-1

3ag

o-1

3se

t-1

3o

ut-

13

no

v-1

3d

ez-1

3ja

n-1

4fe

v-1

4m

ar-1

4ab

r-1

4m

ai-1

4ju

n-1

4ju

l-1

4ag

o-1

4se

t-1

4o

ut-

14

no

v-1

4d

ez-1

4ja

n-1

5fe

v-1

5m

ar-1

5ab

r-1

5m

ai-1

5ju

n-1

5ju

l-1

5ag

o-1

5se

t-1

5o

ut-

15

no

v-1

5d

ez-1

5ja

n-1

6fe

v-1

6m

ar-1

6ab

r-1

6m

ai-1

6ju

n-1

6ju

l-1

6ju

l-1

6ag

o-1

6se

t-1

6o

ut-

16

no

v-1

6d

ez-1

6ja

n-1

7

BHKP Price

Shipments

70

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

71

Tightening plantation wood and chip supply could add to the cash cost of Asian pulp mills

Source: Pöyry.

72

Current Zero Cost Collars

Notional (Total):

USD 1,760

Million

*forward curve Dec/2016.

ZCC Position 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Total

Notional (USD MM) 391 334 395 330 215 55 40 - 1,760

Strike médio put (avg.) 3.29 3.34 3.3 3.46 3.43 3.48 3.49 - 3.36

Strike médio call (avg.) 5.04 5.26 5.35 6.03 5.04 5.38 5.35 - 5.36

FWD (BRL/USD)EoP 3.31 3.38 3.46 3.52 3.58 3.64 3.71 3.77 3.55

FREE CASH FLOW(1)

Positive quarterly FCF in the last 5 years, even during appreciated FX

73

USD million

EBITDA Margin

Average FX

-77

-7

125

29

77

194

84113

53

329

4

111

51

103130

112

317

225

158118 124

105

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

(1) Excluding H2 Project, dividends, pulp logistics and land purchase effects.

1.63 1.80 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

33% 28% 30% 37% 37% 41% 39% 39% 41% 42% 41% 35% 35% 45% 50% 50% 56% 54% 52% 43% 43% 36%

74

Fibria’s tax structure

(1) Considering FX 3.2591 | (2) Considering average FX for the period

Description and Amount Maturity

(a) Operating income As stated in the income statement

(-)(b) Goodwill (Aracruzacquisition)

- Annual tax deduction: US$ 27 million (tax)

- Remaining Balance Dec/16: US$ 0.175 billion (base)2018

(-)(c) Forestry Capex in MS state (net)

2016 tax deduction related to depletion: US$ 31 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 Dec/16: US$ 245 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 Dec/2016:- PIS/COFINS: US$ 234 million

- Withholding tax (IR and CSLL): US$ 303 million- Reintegra: US$ 27 million

Undefined

Cash Tax Income Tax (h) – tax credits (i)

2010 2011 2012 2013 2014 2015 2016

US$ 9 million US$ 2 million US$ 8 million US$ 14 million US$ 12 million US$ 23 million US$ 36 million

TAX PAYMENT(2) (cash basis)

75

Dividends

76

►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

Policies approved by the Board of Directors

77

Approval of Dividend Policy

►Proposed dividends based on cash generation, taking into considerationthe company’s strategic planning 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.

78

Dividends

(1) Considering March 7, 2016 FX – R$/US$3.7714

2016

April 27, 2016 Mid-May, 2016 Mid-November, 2016

GSM approved dividend

distribution of USD80 million(1)

(1.1% of dividend yield as at

Dec. 31, 2015).

Dividend payment

of USD 80 million.

Extraordinary

dividend

appraisal

(not approved)

2017

April, 2017 Mid-May, 2017 Mid-November, 2017 Mid-December, 2017

OGM to approved

dividend

distribution

Dividend payment

to occur from May

onwards

Extraordinary

dividend

appraisal

Extraordinary

dividend

payment

(if approved)

Apresentação do PowerPoint - Fibria Presentation UBS.pdf · UBS LatAm Fixed Income Trip ......

Documents

Transcript of Apresentação do PowerPoint - Fibria Presentation UBS.pdf · UBS LatAm Fixed Income Trip ......