Bofa Merrill Lynch Brazil Conference

7/29/2019 Bofa Merrill Lynch Brazil Conference

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Bank of America Merrill Lynch 2013 Brazil ConferenceMarch 2013


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2

The information contained in this presentation may include statements which

constitute forward-looking statements, within the meaning of Section 27A of the U.S.

Securities Act of 1933, as amended, and Section 21E of the U.S. Securities ExchangeAct of 1934, as amended. Such forward-looking statements involve a certain degree of

risk and uncertainty with respect to business, financial, trend, strategy and 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 expectationsdisclosed 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 thecompanys 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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Agenda

Fibria's Strategy1

Pulp and Paper Market2

Questions & Answers

4

Closing Remarks3


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Fibrias Strategy


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5

OPERATING

EXCELLENCE

Cost control

Capex discipline

Working capitalimprovement

Free cash flow generation

Productivity gains

LIABILITY

MANAGEMENT

Liquidity events and FCF of R$

2.9 billion in 2012

Gross debt reduction

Cost of debt reduction

Leverage reduction

Rating revised to BB+/Positive

by Fitch (Feb/13) and

BB+/Stable by S&P (Mar/13)

Asset light

GROWTH

OPPORTUNITIES

Pulp: growth with discipline

Industry Consolidation

Bio-Energy

Other Opportunities

(Portocel/Land and Forest)

Fibrias Strategy


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40%

34%36%

6

Operating Excellence

Better results achieved by efficiency improvement

5,054 5,1845,299

4,9095,141

5,357

2010* 2011 2012

594 605 584

2010* 2011 2012

686646

Historical Value Inflation Effect**

* Excludes Conpacel | ** IPCA index considered to calculate the inflation effect

PRODUCTION AND SALES VOLUME (000 t)

SG&A (R$ million)

448 471 473

2010* 2011 2012

518503

Historical Value Inflation Effect**

CASH COST (R$/ton)

2,526

1,9642,253

2010* 2011* 2012

EBITDA (R$ million) AND EBITDA MARGIN (%)

Production Sales

4Q12 EBITDA:

R$ 753 mn

41% margin


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7

Liability Management

Net debt at the lowest level since Fibrias creation and leverage reduced to 3.4x

6.5

3.6 2.9 3.2

4.24.8 5.2 4.7 4.5

3.4

7.1

3.83.1 3.4

3.8

4.24.8

4.2 4.23.3

11.0 9.8

8.08.0

9.5 9.59.0 8.5 8.6

7.7

2009 2010 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

US$

5.0

*From June 30, 2012 on, net debt/EBITDA ratio for covenant purposes are calculated in US Dollars and the limit is 4.5x

FX Rate(R$/US$)

- Dec/12 vs Dec/11:

R$1.8 billion net

debt reduction,

despite the 9% FX

impact.

- Debt (in US$):

> 90% of total

Net Debt (R$ Billion)

Net Debt/EBITDA (x) R$

Net Debt/EBITDA (x) US$*

1.691.762.00Avg LTM 1.73 1.65 1.67 1.70 1.96 2.02 1.95

1.67 1.561.74EOP 1.63 1.85 1.88 1.82 2.02 2.03 2.04

US$

3.8

25% debt reduction (in US$)

18% debt reduction (in R$)


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DERIVATIVES NOTIONAL(1) (US$ Million)

The increase in Zero cost collar operations is linked to the reduced FX volatility

This operation minimizes negative impacts in the event of a sudden depreciation of the Real

18%54% 44%56% 53%% of exposure

hedged

(1) Includes Non Deliverable Forwards and US Dollar Option

Hedging Strategy

29%

1,185922

772650

321170

45

162151

141

112 410

1,230

1,084

923 791

433

580

Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12

NDF Zero cost collar


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Rating Fibria vs Peers

5.6

4.7

3.93.6

2.9

3.2

4.2

4.8

5.2

4.7

4.5

3.4

5.0

2.4

2.9

4.6

Mar/10 Jun/10 Set/10 Dec/10 Mar/11 Jun/11 Set/11 Dec/11 Mar/12 Jun/12 Set/12 Dec/12

Fibria has been reducing consistently its leverage which reached 3.4x as of Dec/2012

Net Debt/EBITDA (x)

Fibria Arauco CMPC(1) Klabin Suzano

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

Moodys Ba1/Stable Baa3/Negative Baa3/Negative - Ba2/Stable

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

(1) 2012 Results not available


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10

Debt

Amortization

Schedule atDec/2012

(R$ Million)

Cost of Debt

Foreign Currency (% p.a.)Debt by Currency

7%

93%

Local Currency

Foreign Currency

5.5%

5.2%

Dec/11 Dec/12

Debt Profile

1,138 1,075724 677

998810

654

3,132

1,560

2013 2014 2015 2016 2017 2018 2019 2020 2021

Bond Pre-Payment BNDES ECN* Export Credit/Other

*ECN Export Credit Note


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11

Liability Management

R$ 2.9 billion in free cash flow generation and liquidity events in 2012

2.3

0.8

2.9

(1.1)(0.5)

0.2

(0.1)

1.40.2

0.5

CAPEX Interest Working

Capital

Taxes Equity

Offering

Forest

Sale

Losango

Sale

(1) Includes advance to forest partner program | (2) IR/CS and other | (3) Forestry assets and land in the south of Bahia State | (4) Considers only the receipt of the first payment of R$470 million

(R$ Billion)

EBITDA FCF Total(1)(2) (4)(3)

Asset Light Search opportunities for land monetization

Liquidity Cash position as of Dec/12: R$ 3.0 bn + R$ 1.0 bn revolver credit facility

2013E Capex:

R$ 1.250 bn


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PULP

- Growth with discipline

- Best portfolio of projects

BIO-ENERGY

- Complementary to pulp

- Ensyn

INDUSTRY

CONSOLIDATION ?

OTHER OPPORTUNITIES

- Portocel

- Land and forest

Potential

GrowthProspects

12

GrowthFibria is seeking value creation for its shareholders with capital discipline


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13

Sustainability long term goals

Long Term Goals to be met by 2025

1. Reduce by one third the area necessary for pulp production

2. Double carbon sequestration

3. Promote environmental restoration of 40 thousand hectares of proprietary lands

4. Reduce by 91% the amount of solid industrial waste sent to landfills

5. Reach 80% approval of neighboring communities

6. Help the community to make 70% of projects self-sustainable in income generation, supported by the

company


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A new added value projected

10.6 10.9

12.1

15.0

2010 2015 2020 2025

MAI* Pulp:

(adt/ha/year)

Expected results in the new forests planted in Fibrias own forests, adopting classical breeding + molecular markers technologies.

*MAI: Mean annual increment


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Pulp and Paper Market


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16

Global Paper Consumption

(1) Source: RISI

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

37,250

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


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Global Market Pulp Demand

000 ton 1996 2006 2016Growth1996-2006

Growth2007-2016

Hardwood 14.3 22.4 29.9 56% 27%

Eucalyptus 5.4 11.1 21.4 106% 67%

Softwood 16.4 22.0 24.1 35% 7%

Market Pulp 30.8 44.4 54.0

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

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Hardwood Softwood

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

2011 - 2016 CAGR:

Hardwood: +2.3%

Softwood: +1.0%

Source: PPPC


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Source: Hawkins Wright

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

BH

KPprices-cifEuro

pe(US$/ton)

Greenfieldcapacity(000ton)

Valdivia

APP

Hainan

VeracelNueva Aldea

Santa F

Mucuri

Fray

Bentos

Kerinci

PL3

Trs

Lagoas

Rizhao

APP Guangxi

Chenming

Zhanjiang

Eldorado

Montes del

Plata

MaranhoGuaba II

Gross capacity addition should not be counted as the only

factor influencing pulp price volatility

New Price

Increase:(as of Mar/13)

US$ 820/ton


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19

Capacity closures DO happen

-910

-85

-1260

-1180

-540-500

-105

-755

-1400

-1200

-1000

-800

-600

-400

-200

0

2006 2007 2008 2009 2010 2011 2012 2013E

Source: PPPC and Fibria

Closures of Hardwood Capacity Worldwide

000 ton

- Jari, Brazil

- Sappi Cloquet, USA


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Fibria: Competitive Position on the Cost Curve

Total Cash Costof BHKP

delivered to

Europe

(US$/t)

492

435 484422

450 434

377

330314 318

260227

72126 43

86 44 35

36

47 64 52

6362

Cash Cost (US$/t) Delivery (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, December 2012) | Fibrias 2012 cash cost divided by FX considered in the report R$/US$ 2.08

564

289


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Technical Age and Scale in the Market Pulp IndustryFurther closures are expected due to lack of adequate investments in the

industry....

North American Pulp Mills Other Pulp Pulp Mills

Hardwood (BHKP) Market Pulp Softwood (BSKP) Market Pulp

North American Pulp Mills Other Pulp Pulp Mills

Source: Pory


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China

24.3

14.8 14.6

11.1

6.3 6.14.4

2.2 0.8 0.6

N.America

W.Europe

Japan

Oceania

E.Europe

L.America

China

N&MEast

AsiaFarEast

Africa

0

5

10

15

20

25

30

35

1991 1996 2001 2006 2009 2010 2011

N.America W.Europe E.Europe L.America NME

Japan China Asia FE Oceania Africa

Average

Growth Rate

+3.8%a.a.

Average

Growth Rate

+3.8%a.a.

Kg/capita Million tons

Per Capita Consumption of Tissue by Region, 2012(1) World Tissue Consumption, 1991-2011(1)

(1) Source: RISI

Growth

Potential

Growth

Potential


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China

12%15%

17%

19%

26%

20%

26% 25%

14%

15%

16%

18%

25%

21%

26%26%

0

2.000

4.000

6.000

8.000

2005 2006 2007 2008 2009 2010 2011 2012

Eucaplyptus ('000 t) Hardwood ('000 t)

Latin America is

the main

supplier of pulpto China

(1) Source: PPPC Global 100 Report

Chinas Market Share of Market Pulp Shipments (%)(1)


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Closing Remarks


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Investment Grade Recovery

Continuous focus on operating excellence

Free cash flow generation

Leverage reduction

Fibrias Key Messages


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Questions & Answers


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THANK YOU

Investor Relations

E-mail: [email protected]

Phone: +55 11 2138-4565

Website: www.fibria.com.br/ir

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