BofA Merrill Lynch - Meeting with investors

8/20/2019 BofA Merrill Lynch - Meeting with investors

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

Meeting with investors – BofA Merrill LynchJuly, 2015


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2

The information contained in this presentation may include statements whichconstitute forward-looking statements, within the meaning of Section 27A of the U.S.

Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange

Act of 1934, as amended. Such forward-looking statements involve a certain degree of

risk and uncertainty with respect to business, financial, trend, strategy and other

forecasts, and are based on assumptions, data or methods that, although considered

reasonable by the company at the time, may turn out to be incorrect or imprecise, or

may not be possible to realize. The company gives no assurance that expectations

disclosed in this presentation will be confirmed. Prospective investors are cautioned

that any such forward-looking statements are not guarantees of future performance

and involve risks and uncertainties, and that actual results may differ materially from

those in the forward-looking statements, due to a variety of factors, including, but not

limited to, the risks of international business and other risks referred to in the

company’s filings with the CVM and SEC. The company does not undertake, and

specifically disclaims any obligation to update any forward-looking statements, which

speak only for the date on which they are made.

Disclaimer


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3

Company Overview1Pulp and Paper Market2

Financial and Operational Highlights3

Agenda

Final Remarks

4


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4

Company Overview


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5

A Winning Player

Port Terminal Pulp Unit

Três Lagoas

Santos

AracruzPortocel

Caravelas

BelmonteVeracel

Jacareí

Superior Asset Combination Main Figures – 2Q15 LTM

Pulp capacity million tons 5,300

Net revenues R$ billion 8.0

Total Forest Base(1) thousand hectares 967

Planted area(1) thousand hectares 563

Net Debt R$ billion 8.2

Net Debt/EBITDA (in Dollars)(2) X 2.0

Source: Fibria

(1) Including 50% of Veracel, excluding forest partnership areas and forest bases linked to the sales of Losango and forest assets in Southern Bahia State.(2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.


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6

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


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7

Worldwide presence

Strong global customer base

Long-term relationships

Focus on customers with stable business

Customized pulp products and services

Sound forestry and industrial R&D

Focus on less volatile end-use markets such as tissue

Efficient logistics set up

Low dependence on volatile markets such as China

Low credit risk

100% certified pulp (FSC and PEFC/Cerflor)

Sales Mix by End Use - Fibria Highlights

Fibria’s Commercial Strategy

Net Revenues by Region - Fibria

Region - 2Q15 End Use - 2Q15

44% 44% 42% 37%43% 43%

35% 36%46% 42% 39% 40%

47% 42%

18%26%

26%30% 22%

29%31% 31%

19% 23% 27% 27%17% 24%

29%20% 22% 25% 26%

21%25% 26% 26% 27% 24% 23% 26% 26%

9% 9% 10% 9% 10% 8% 9% 8% 10% 9% 10% 10% 10% 9%

1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13 1T14 2T14 3T14 4T14 1T15 2T15

Europe North America Asia Other

49%

36%

15%

Printing &

Writing

Specialties

42%

24%

26%

8%

Europe

North

Asia

LatAm

Tissue


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8

Pulp Supply Agreement: Puma Project

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.

▶ Agreement benefits:

Mutual value creation, with better servicing for both Companies customer’s base

▶ 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)

▶ Operational startup: Mar/2016

▶ Sales destination: Globally, except for South America


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9

(1) Controlling group(2) Free Float 40.31% + Treasury 0.06%

VotorantimIndustrial S.A. (1)

29.42%

BNDESParticipações (1)

30.21%

FreeFloat (2)

40.37%

• Only 1 class of shares →100% voting rights

•

100% tag along rights (Brazilian corporate law establishes 80%)• Board of Directors with minimum 20% independent members

• Financial Statements in International Standards – IFRS

• Adoption of Arbitration Chamber

• SEC Registered ADR Level III program

• Indebtedness and Liquidity

• Market Risk Management

• Risk Management

• Corporate Governance

• Related Parties Transactions

• Anti-Corruption

• Information Disclosure

• Securities Trading

• Antitrust

• Genetically Modified Eucalyptus

Fiscal

Council

Board of

Directors

20% independentmembers

Role of CEO andchairman is split

Personnel andRemuneration

Committee

StatutoryAudit

Committee

Finance

Committee

Sustainability

Committee

Innovation

Committee

General

Meeting

Listed on Novo Mercado, highest level at BM&FBovespa: Policies approved by the Board of Directors:

Shareholder Structure and Corporate Governance

30%independent

members

100%independent

members

50% independent

members

45% independent

members-


10/5410Pulp and Paper Market


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Expected scenario for 2013 in Nov’2012

BHKP CAPACITY CHANGES

Realized scenario in 2013

1,270

100

-155

-410

-140

-60

605

1,310

Eldorado

UPM Fray Bentos

Sappi Cloquet

Jari

Cellulose du Maroc

Sodra Tofte

Net

BEKP demand growth*

1,275

320

555

-155

-410

1,585

1,080

Eldorado

Suzano Maranhão

Montes del Plata

Sappi Cloquet

Jari

Net

BEKP demand growth*

DELAYED

Unexpected

Closures

In 2013, we stressed the difference between the expected scenario

and the realized one...

*Source: PPPC Outlook for Eucalyptus Market Pulp November 2012 *Source: PPPC Outlook for Eucalyptus Market Pulp September 2014


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As a result we had better prices than expected

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2012 for 2013 prices)

BHKP Delivered to Europe (USD/t)

765

772

767

784

772

788

814

795

770

791

740

750

760

770

780

790

800

810

820

1Q13 2Q13 3Q13 4Q13 Annual 2013

Consultants average for 2013 Realized PIX/FOEX price


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The “better than expected scenario” happened again last year...

Realized scenario in 2014

1,770

-105

-85

-65

-120

-70

100

235

550

1,100

230

BEKP demand growth

Net

Ence Huelva

Old Town

APRIL Rizhao

Sodra Tofte

Sappi Cloquet

UPM

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

1,7341,380

2,660

-120

-115

560

830

1,275

230

BEKP demand growth**

Net

Sodra Tofte

Sappi Cloquet

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

Expected scenario for 2014 in Dec’13

More unexpectedmill closures

*Partly integrated to existing PM**Source: PPPC Outlook for Eucalyptus Market Pulp November 2013

*Approved license only for 500,000 t/y


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… and also better prices than initially projected

BHKP Delivered to Europe (USD/t)

782

737

696

718

733

768752

729

734746

640

660

680

700

720

740

760

780

800

1Q14 2Q14 3Q14 4Q14 Annual 2014

Consultants average for 2014 Realized PIX/FOEX price

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2013 for 2014 prices)


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Then, what about 2015?

1005

-315

-65

115

85

30

200

750

265

750

400

BEKP demand growth**

Net

Possible closures*

Ence Huelva

April Rizhao

Sappi Cloquet

Old Town (Expera)

Portucel Cacia

Eldorado

CMPC Guaiba II

Oji Nantong

Montes del Plata

Suzano Maranhão

-400 to -800

1,415 to 1,815

Expected scenario for 2015 in Dec’14 Realized scenario in 2015

?


*Based on annual closures average (400,000 to 800,000 t/yr)**Source: PPPC Outlook for Eucalyptus Market Pulp September 2014


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Shipments of Eucalyptus Pulp

(1) Source: PPPC World 20 – January/2015

Global Market BEKP Demand

Paper Capacity increase in China

2014 2015 Total

FORECAST REALIZEDPREVIOUS

FORECAST

LATEST

FORECASTPREVIOUS LATEST

Woodfree 256 256 760 760 1,016 1,016

Tissue 1,390 1,278 727 1,365 2,117 2,643

Cartonboard 2,100 1,326 380 730 2,480 2,056

Total 3,746 2,860 1,867 2,855 5,613 5,715

Source: Fibria and Independent Consultants

790 kt

99 kt 130 kt319 kt 242 kt

10%

12% 4%

17%11%

Total North

America

Western

Europe

China Others

6M2015 vs. 6M2014(2)

(1) Source: PPPC World 20 – December/2014

2014 vs. 2013(1)

1,734 kt

92 kt

386 kt717 kt

537 kt

11%

5%

6%

20%13%

Total North

America

Western

Europe

China Others

(2) Source: PPPC World 20 – Jun/2015


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Commodities Differentiation

China GDP breakdown

China commodity demand - basis 100

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

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

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

204190

166153

124120

Source: Itaú Macroeconomic Department and PPPC – May/15


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

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

STRONGWeighted average

technical age 12.3 years

Weighted average

capacity 1,277,000 t/a

Aracruz

Três Lago as

Veracel

Jacareí

0

500

1.000

1.500

2.000

2.500

3.000

051015202530

PM Capacity, 1000 t/a

Technical Age, years

WEAK

STRONGWeighted average

technical age 21 years

Weighted average

capacity 527,000 t/a

North American Pulp Mills Other Pulp Mills Closures Grade Switch On & Off

WEAK0

500

1.000

1.500

2.000

2.500

3.000

0102030

PM Capacity, 1000 t/a

Technical Age, years

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

Old

Town

Ence

Huelva


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Source: PPPC and Fibria

Closures of Hardwood Capacity Worldwide

(000 ton)

Capacity closures DO happen

-910

-85

-1,260

-1,180

-540-500

-105

-1,085

-445

-750

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-2017 E (1)

(1) As of April 2015


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Gross capacity addition should not be counted as the only factor

influencing pulp price volatility….(1)

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

C a p a c i t y ( 0 0 0 t o n )

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

0

100

200

300

400

500

600

700

800

900

1.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Valdivia

APP

Hainan

Veracel Nueva Aldea

Santa Fé

Mucuri

Fray

Bentos

Kerinci

PL3

Três

Lagoas

Rizhao

APP Guangxi

Chenming

Zhanjiang

EldoradoMontes

del Plata

Maranhão

Guaíba II

APP South

Sumatra(2)

Klabin

Oji

Nantong

Horizonte II

B H K P p r i c e s - C I F E u r o p e

( U S $ / t o n )

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Apr/15), Brian McClay (May/15) and RISI (Dec/14)

(2) Partially integrated production


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Lowest volatility among commodities

30

40

50

60

70

80

90100

110

120

130

140

150

160

170

180

J a n - 1 2

F e b - 1 2

M a r - 1 2

A p r - 1 2

M a y - 1 2

J u n - 1 2

J u l - 1 2

A u g - 1 2

S e p - 1 2

O c t - 1 2

N o v - 1 2

D e c - 1 2

J a n - 1 3

F e b - 1 3

M a r - 1 3

A p r - 1 3

M a y - 1 3

J u n - 1 3

J u l - 1 3

A u g - 1 3

S e p - 1 3

O c t - 1 3

N o v - 1 3

D e c - 1 3

J a n - 1 4

F e b - 1 4

M a r - 1 4

A p r - 1 4

M a y - 1 4

J u n - 1 4

J u l - 1 4

A u g - 1 4

S e p - 1 4

O c t - 1 4

N o v - 1 4

D e c - 1 4

J a n - 1 5

F e b - 1 5

M a r - 1 5

A p r - 1 5

M a y - 1 5

J u n - 1 5

Iron Ore Soy Bean Crude Oil Sugar BHKP - FOEX Europe Exchange Rate (USD/BRL)

122

166

88

53

61

42

100 = January 1st, 2012

Source: Bloomberg – June 30th, 2015

Low volatility of hardwood pulp price, even though new capacities have

come on stream in the period.


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Brazilian macroeconomic data evolution

11 1115 13 10

-3 -6 -7 -7 -1 -1 3

13

25

34

45 4640

25 2520

30

19

2 -4 2

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Trade Balance - R$ billion

(1) From Jan/15 to Jun/15.

-8 -8 -8 -2

3 08

2 4

31

87

3

47 49

59

19

-6

11

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Balance of Payments - R$ billion

(1)


23/5423Financial and Operational Highlights


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FX and Pulp Price explain 80% of Fibria’s EBITDA Margin

(1) Excludes Conpacel | (2) 2014 year end market consensus | (3) According to Focus Report (Brazilian Central Bank – Jul. 24th, 2015) | (4) According to Poyry – full cost estimate - includesManufacturing + Delivered costs to Rotterdam + Depreciation + ROCE of 9%

Each 10% depreciation of the Real increases EBITDA by approx. R$770 million

1,522

2,526

1,964 2,253

2,796 2,791

2009 (1) 2010 (1) 2011 2012 2013 2014 2015

Exchange Rate

Average (R$/US$)

EBITDA Margin

EBITDA (R$ million)

29%40%

34% 36% 40%39%

Marginal producer cost

(US$/t)(4)

Fibria net pulp price

(US$/t)

Market

Consensus

456

670639

581610 572 563

660627

676657

680 676

912

1,1791,067 1,133

1,281 1,310

1,745

Fibria net pulp price

(R$/t)

2.00 1.76 1.67 1.952.10 2.29

3.10(3)


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559583

3527

12 5( 58 ) 3

2Q14 Wood FX Utilities Chemicals and

Energy

Maintenance

Downtimes

Others 2Q15

+ 4%

Cash Production Cost (R$/t) – 2Q15

C h P d ti C t l i f 3 7% th t


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

Consistently

controlling the

production

cash cost at alevel below

the inflation

pace.

26

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

6 years

432 448

471 473

505 519

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

CAGR: + 3.7%

(1) Constant Currency (2) Excludes Conpacel


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Net Results (R$ million) – 2Q15

1,157

614

248

146 ( 54 )( 85 )

( 478 )

( 394 )

( 64 )

Adjusted

EBITDA

FX Debt /

MtM Debt

Hedge

MtM

Operational

Hedge

Hedge

Settlement

Net Interest Deprec.,

amortiz. and

depletion

Income Taxes Others Net Income

(Loss)

FX Debt

∆

deffered

∆

MtM

hedge

∆

swap

ZCC

∆

(1)

Includes non-recurring expenses/non-cash, other FX variation expenses and other financial income/expenses.

(1)

current

2Q15 2Q15


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Free Cash Flow(1) – 2Q15

1,157

466

317

( 430 )

( 93 )

( 128 )( 38 ) ( 2 )

( 149 )

Adjusted EBITDA Capex Interest(paid/received)

Working Capital Taxes Others Free Cash Flow Dividends Free Cash Flow(1)

R$ million

(2)

Evolution on return metrics ROE = 9.0% | ROE = 13.4%(3)

2Q14 2Q15

ROIC = 10.1% | ROIC = 13.9%

(1) Does not include non-recurring items. | (2) Not considering dividends payment. | (3) Cash basis. For detailed information,, see 2Q15 Results Earnings Release (page 17).


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Indebtdeness

Net Debt (Million)

2.34

2.88

2.232.43 2.30 1.95

8,4579,352 9,015

3,8402,915 2,906

Jun/14 Mar/15 Jun/15R$ US$

Gross Debt and Interest Expenses (Million)

6,681

8,991 8,197

3,033 2,803 2,642

Jun/14 Mar/15 Jun/15

R$ US$

Net Debt/EBITDA (US$)

Debt Amortization Schedule (US$ Million) Average Tenor (months) and Cost of Debt* in US$ (% p.a.)

50 35 33

Interest (US$)

- 24%

Net Debt/EBITDA (R$)

(*) Considering the portion of debtin reais fully adjusted by the market swap curves at the end

of each period.

52 54 52

Jun/14 Mar/15 Jun/15

3.5 3.5 3.6

- 35%

Cash on hand : US$ 470 million

264

554

818

186 213

350447

626

369

9021

3

600

Liquidity 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Pre-payment BNDES ECN ACC/ACE Voto IV Bond

(cash)

(revolver)

Capital Structure: Fibria has achieved the lowest leverage ratio among


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30

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-/Stable BBB-/Stable BBB-/Negative BBB-/Negative BB/Stable

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

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

(1) Fibria’s historical data in BRL.

2.4 2.3

2.72.7 2.9

2,2

4.84.5 4.5

4.13.9

1.7 1.72.4

3.0

4.2 4.5

2.93.1

3.1 3.4 3.6

3.6 3.7 3.6 3.2

14.8

13.2

11.7 11.18.9 7.7

6.4

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1T15 2T15

Fibria Suzano Klabin CMPC Arauco Eldorado

A consistent and disciplined approach focused on reducing debt


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A consistent and disciplined approach focused on reducing debt

and its cost

Debt (US$ million) x Leverage (US$) Interest (US$ million) x Cost of Debt (US$)

Free Cash FlowIncrease

InterestReduction

Cost of DebtReduction

This dynamics

creates a virtuouscycle

8.6

2.9

6.3

2.6

2009 2010 2011 2012 2013 2014 Jun/15

Gross Debt Net Debt

7.5

4.1 4.23.3

2.6 2.4 2.0 473414 408

350

268200

161

2009 2010 2011 2012 2013 2014 LTM

6.3 5.95.5

5.2 4.63.4 3.6*

(*) Considering the portion of debtin reais fully adjusted by the market swap curves of June. 30, 2015.


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32

Principal: US$ 600 million

Issuance Date: May/2014

Coupon: 5.25% a.a.

Bookbuilding: 11.5x

Spread over T10Y: 275.0 bps

Highlights

- SEC registered;

- IG Documentation;

- Stretch Debt maturities;

- Fibria 2021 early redemption of US$430 million (78%

of the total).

Fibria 2024

Data as of Aug 07, 2014:

Rating Maturity Volume T-Spread Coupon

Fibria Ba1 / BBB- / BBB- 2024 US$ 600 MM 275 bps 5.25%

Braskem Baa3/BBB-/BBB- 2024 US$ 500 MM 340 bps 6.45%

Petrobras Ba2/BBB-/BBB- 2024 US$ 2,5 bi 350 bps 6.28%

BNDES Baa2/BBB 2024 US$ 500 MM 362 bps 6.32%

Klabin BBB-/BBB- 2024 US$ 500 MM 269 bps 5.25%

Odebrecht Baa3/BBB/BBB 2029 US$ 500 MM 263 bps 5.25%

New issuance better priced than Investment Grade issuers


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33

113140 140

143 150160

175

225

COPEC Ecopetrol Raizen Fibria Colbun Braskem Molymet TGI (O&G)

LatAm Investment Grade Loans Spread over Libor (bps) (1)

Avg. Term 4 years 5 years 4 years 5 years 6 years 5 years 5 years 5 years

(1) As of July 2015

…and performing better than Investment Grade issuers

Secondary G-Spread to Maturity (bps) (1)

245296 298 315 327

345 360 365379

419487

529

614 617

724

0

100

200

300

400

500

600

700

800

Globopar 22 Bras il 25 Embraer 23 Fibria 24 Bras il Foods24

Suzano 21 Vale 22 Klabin 24 Votorantim24

Samarco 24 Gerdau 24 Petrobras 24 Eletrobras21

Braskem 24 Odebrecht25


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34

Fibria has the simplest and most transparent call in the industry

Negative Neutral Positive

Pulp supply ✔

Closures/conversions ✔

Inefficient capacities in China ✔

Demand ✔

‣ Fiber and grade substitution ✔

‣

Tissue ✔‣China ✔

Pulp price ✔

Brazil GDP ✔

Energy crisis ✔

FX ✔

Capex inflation ✔

Cost inflation ✔

Rating ✔

Tax ✔

Corporate Governance ✔


35/54

35Final Remarks


36/54

36

PULP

- Growth with discipline

- Best portfolio of projects

BIO-ENERGY

- Complementary to pulp

- Ensyn

INDUSTRY

CONSOLIDATION ?

OTHER OPPORTUNITIES

- Portocel

- Land and forest

PotentialGrowth

Prospects

Fibria is seeking value creation for its shareholders with capital discipline


37/54

37Horizonte 2 Project


38/54

38

• 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

Commercialpositioning

Long-term growthpotential

What is the importance of growth for Fibria?

• Wider fixed costs dilution

• Cost curve position improvement

• Greater bargaining power with suppliers


39/54

39

Why expand Três Lagoas?

• Brownfield Project, synergies with currentoperations

• Modern plant, prepared for potentialexpansion

• Availability of wood and low average

distance from forest to mill

• Forest based on the optionality concept andprioritizing lease and partnership models

• Additional energy surplus of 120 MWh

Start-up: 4Q2017

Capacity: 1.75 million tons

ESTIMATED BHKP CAPACITY RANKING 2017 (000T)

Source: Poyry and Fibria Analysis (as of May 2015)

0 2000 4000 6000 8000

OthersKlabin

Domtar Pulp Mill Holding

LwartPortucel Soporcel

Georgia-PacificResolute

VersoNippon Paper

MondiOji

MitsubishiMarubeni

IPAltri

ENCECenibraArauco

Stora EnsoUPM

EldoradoAPP

SuzanoRGE/APRILCMPC

Fibria 7,950

Current Capacity

New Capacity

New Capacity – Klabin Agreement

New Capacity – Horizonte II Project


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40

Pulp sales destination: Fibria growing where the market grows

(1) Considers 1Q15 last twelve months.

32%

45%

42%

25%

19%23%

4%10%

H2 sales volume distribution

Current sales volume distribution(1)


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41

Window of opportunity for H2 project in 2017

Operating Rate not considering any project entering in 2017/2018 (theoretical scenario)

2015 2016 2017 2018 2019 2020 2021

New capacities (000 t) 2,208 2,150 2,300 2,300 900 2,100 1,700

Confirmed 2,208 2,150 2,050 800

Potential 250 1,500 900 2,100 1,700

Closures (000 t) (600) (600) (600) (600) (600) (600) (600)

Operating Rate considering H2

90.0%88.6%

90.3%

93.6%95.3% 94.0% 93.9%

2015 2016 2017 2018 2019 2020 2021

90.0% 88.6% 89.7%89.5%

91.1% 90.0% 90.0%

2015 2016 2017 2018 2019 2020 2021Source: Fibria assumptions. Confirmed projects considers: Klabin Ortigueira, APP South Sumatra and Metsa Äänekoski


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Equipmentpurchase

Investmentapproval

Beginning of civilwork

Start-up

Schedule

May/15 Jun/15 4Q15 4Q17


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43Forestry base

H2 Project will have the forest base ready for the start up


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44

H2 Project will have the forest base ready for the start-up

Forestry base required:

H1: 120,000 ha

H2: 174,000 ha

Total: 294,000 ha


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45Logistics

Forestry Logistics


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46

Low average distance from forest to mill

FOREST MILL

95 km

H1 + H2 consolidated

Outbound logistics


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47

Fibria has logistical alternatives on a competitive basis

SantosPort

Mill

Pulp flow: From Mill to the Port

International Logistics

•

Logistics andcommercial optimization

• Greater bargainingpower with suppliers

ALL railroad - meter gauge

ALL railroad - broadgauge

MRS railroad - broadgauge

North-South railroad

Waterway

Highway


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48Financials

Even more competitive cash production cost


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49

Source: Hawkins Wright (Outlook for Market Pulp, April 2015) - FX considered by the consultant of R$/US$3.05.

H2 cash cost was estimated according to weighted average cost, after mill balance, converted by R$3.05. Includes energy sales.

BHKP (US$/t)

453419

351329

312 286

207173 158

China USA Canada Iberia Indonesia Chile/Uruguay Brazil Fibria 1Q15 LTM Fibria w/ H2

d i l f i


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Industrial + forestry expansion capex

Expansion Breakdown Expansion capex expected curve

R$ MILLION R$/T(2)

Industrial andlogistics

6,695 3,826

Forestry (includesforestry equipment)

632 361

Other(1) 379 217

Total 7,706 4,4047%

45%

37%

7%4%

2015 2016 2017 2018 2019onwardsIndustrial capex breakdown by currency:

BRL - 72%EUR – 26%USD and Swedish Krona – 2%

(1) Includes chemical plant leasing and investments to increase capacity to 1,850 kt/year.(2) The calculation considers 1,750 kt/year of capacity.

Funding sources: Company’s cash generation and financing


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instruments

Risk mitigation strategies in case ofBRL appreciation:

- Pre-funding on favorable FXscenarios

- Cash flow hedging strategy mainlywith Zero Cost Collar

INSTRUMENTESTIMATED AVERAGE

MATURITY

BNDES(2) 6.1 years

FDCO 8.5 years

ECAs 6.5 years

Banks 5 years

Bond Market 10 years

Estimated average cost in US$ of3.0% p.a.(1) and average term of

the new debt of 7.3 years

Total amount of debt financingand the proportion of each

instrument will depend on theCompany’s cash generation

during the construction period

(1) Adjusted by the Market swap curves as of May 14th, 2015. Source: Bloomberg

(2) Considering 50% of TJLP, 25% of SELIC + spread and 25% CRA.

Rating agencies understand that the Project will not jeopardize


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Fibria’s credit metrics

“We expect Fibria to continue benefiting from higher operating cash flows whichwould allow it to enlarge its Três Lagoas industrial complex while keeping its debt at

reasonable levels for a low investment-grade rating”

“Fitch’s base case, which assumes that the company builds a new pulp mill (TrêsLagoas II) starting in 2015 and uses net pulp prices of between USD575 and USD675

per ton during the construction period, results in net leverage reaching 3.5x

(1)

. Netleverage would quickly decline to around 2.5x(1) once the mill becomes operationalin the second half of 2017”

(1) According to rating agency methodology

Project financials at a glance


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Project financials at a glance

UNIT

Pulp production/year(1) k tons 1,750

Expansion capex(2) R$ billion 7.7

Sustaining capex(3) R$/t 193

Cash cost(4) R$/t 341

Energy surplus MWh 120

(2) Includes chemical leasing and investments in order to increase capacity to 1,850 kt/year.

(3) Estimated sustaining capex in perpetuity considering capacity of 1,850 kt/year.

(4) Estimated weighted average cost, after mil l balance. Includes energy sales.

(1) Creep capacity will increase production to 1,850 kt/year

Final Remarks


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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 120 MWh

• Cash cost competitiveness

• Meet customers’ demand growth

• Attractive returns even in scenarios with appreciated BRL

• Solid financial profile

BofA Merrill Lynch - Meeting with investors

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