JP Morgan 7th Annual - Global Emerging Markets Corporate Conference

8/20/2019 JP Morgan 7th Annual - Global Emerging Markets Corporate Conference

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

JP Morgan 7th Annual - Global Emerging MarketsCorporate Conference

March, 2016


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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 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 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


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3

Company Overview1Pulp and Paper Market2Financial and Operational Highlights3

Agenda

Final Remarks

4


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4

Company Overview


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5

Shareholder Structure and Corporate Governance

(1) Controlling group (2) Free Float 41.44% + Treasury 0.06%

Votorantim

S.A.(1)

29.42%

BNDES

Participações(1)

29.08%

Free

Float(2)

41.50%

► Only 1 class of shares →100% voting rights

► 100% tag along rights (Brazilian corporate lawestablishes 80%)

► Board of Directors with minimum 20% independentmembers

► 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 approvedby the Board of Directors:

FiscalCouncil

Board ofDirectors

20% independentmembers

Role of CEO andchairman is split

Personneland

Remuneration Committee

StatutoryAudit

Committee

FinanceCommittee

SustainabilityCommittee

InnovationCommittee

30%independent

members

100%independent

members

50%independent

members

45%independent

members-

GeneralMeeting

► 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 NEW


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6

Pulp and Paper Market


7/657

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 - 4Q15 End Use - 4Q15

42% 37% 43% 43% 35% 36%46% 42% 39% 40%

47% 42% 42% 42%

26% 30% 22%29%

31% 31%19% 23% 27% 27% 17% 24% 25%

29%

22% 25% 26%21% 25% 26% 26% 27% 24% 23% 26% 26% 25%

20%

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

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

Europe North America Asia Other

50%

35%

15%

Printing &Writing

Specialties

TissueEurope

42%

N.America

29%

Asia20%

LatAm9%


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The “better than expected scenario” has become a reality again in2015…

BHKP CAPACITY CHANGES

EXPECTED SCENARIO FOR 2015 IN DEC’14 REALIZED SCENARIO IN 2015

1,095

-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

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

1230

1,450

-400-315

-190

115

40

40

30200

500

265

750

400


Net

Unexpected DowntimesEnce Huelva

April Rizhao

Sappi Cloquet

Ence Navia

Old Town (Expera)

Portucel Cacia

Eldorado

CMPC Guaiba II

Oji Nantong

Montes del Plata

Suzano Maranhão

Indonesia, China,Uruguay and Brazil

**Source: PPPC Market Pulp World 20


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…and so has been the price scenario

BHKP Delivered to Europe (USD/t)

735

721709

738

726

750

781

804 802

784

1Q15 2Q15 3Q15 4Q15 Annual 2015

Consultants average at the end previous year Realized PIX/FOEX price

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2014 for 2015 prices)


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Better worldwide macroeconomics are the key drivers… But thespecial focus is on Europe

Real GDP % Annual Growth

Source: International Monetary Fund, World Economic Outlook Database, January 2016

3,4

-0,8

2,2

7,7

3,3

-0,3

1,5

7,7

3,4

0,9

2,4

7,3

3,1

1,5

2,4

6,9

3,5

1,72,4

6,3

World Euro Area USA China

2012 2013 2014 2015 2016


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But the special focus is on Europe

Hardwood and Eucalyptus Shipments (000 t and % annual growth)

Source: PPPC World 20

-0.3%-0.8%

3.3%

3.8%

-0.8% -0.6%

6.0%5.0%

-200

0

200

400

2012 2013 2014 2015

BHKP BEKP


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So, what can we expect for 2016?

BHKP CAPACITY CHANGES

EXPECTED SCENARIO FOR 2016 IN NOV’15 FIBRIA’S EXPECTED SCENARIO FOR 2016

930

-120

-55

-90

-40

30

660

800


Net

Possible closures*

APRIL Kerinci

Verso Wickliffe

Woodland

Old Town (Expera)

Altri Celbi

Klabin

CMPC Guaiba II

-400 to -800

385 to 785

1500

*Based on annual closures average (400,000 to 800,000 t/yr)**Source: PPPC Outlook for Eucalyptus Market Pulp May 2015 (930kt) andFibria’s estimates

1500

985

-200

-120

-55

-90

-40

30

660

800


Net

Possible closures*

APRIL Kerinci

Verso Wickliffe

Woodland

Old Town (Expera)

Altri Celbi

Klabin

CMPC Guaiba II

Positive Supply/Demand Balance!


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Shipments of Eucalyptus Pulp

Global Market BEKP Demand

Paper Capacity increase in China

2014 2015 2016

FORECAST REALIZED PREVIOUSFORECASTLATEST

FORECASTLATEST

FORECAST

Woodfree 256 256 760 980 1,000

Tissue 1,390 1,278 1,365 965 568

Cartonboard 2,100 1,326 730 900 630

Total 3,746 2,860 2,855 2,845 2,198Source: Fibria and Independent Consultants

1,232 kt

90 kt330 kt

611 kt201 kt

7%

5%5%

14%

4%

Total NorthAmerica

WesternEurope

China Others

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

2015 vs. 2014 (2)

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

CAGR 2012-2015

3,787kt

387 kt 662 kt

1,980 kt

758 kt

8%

7% 3%

19%

6%

Total NorthAmerica

WesternEurope

China Others

(2) Source: PPPC World 20 – Dec/2015


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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 MarketPulp Mills

Softwood (BSKP) Producers – Integrated and MarketPulp Mills

STRONG

Weighted averagetechnical age 12.3 years

Weighted averagecapacity 1,350,000 t/a

Aracruz

Três La go as

Veracel

Jacareí

WEAK

STRONGWeighted averagetechnical age 21 years

Weighted averagecapacity 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

051015202530Technical age, years

PM Capacity, 1000 t/a

0

100

200

300

400

500

600

700

800

900

1000

051015202530Technical age, years


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Gross capacity addition should not be counted as the only factorinfluencing 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

)

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 (Dec/15), Brian McClay (Dec./15) and RISI (Jan/16)(2) Partially integrated production.

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

APPHainan

Veracel Nueva Aldea

Santa Fé

Mucuri

FrayBentos

KerinciPL3

TrêsLagoas

Rizhao

APP Guangxi

ChenmingZhanjiang

EldoradoMontesdel Plata

Maranhão

Guaíba II

APP SouthSumatra (2)

Klabin

OjiNantong

Horizonte II


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

► 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 – February 1 , 2016

0

40

80

120

160

D e c - 9

9

M a y - 0

0

O c t - 0

0

M a r - 0

1

A u g - 0 1

J a n - 0

2

J u n - 0

2

N o v - 0 2

A p r - 0 3

S e p - 0

3

F e b

- 0 4

J u l - 0 4

D e c - 0

4

M a y - 0

5

O c t - 0

5

M a r - 0

6

A u g - 0 6

J a n - 0

7

J u n - 0

7

N o v - 0 7

A p r - 0 8

S e p - 0

8

F e b

- 0 9

J u l - 0 9

D e c - 0

9

M a y - 1

0

O c t - 1

0

M a r - 1

1

A u g - 1 1

J a n - 1

2

J u n - 1

2

N o v - 1 2

A p r - 1 3

S e p - 1

3

F e b

- 1 4

J u l - 1 4

D e c - 1

4

M a y - 1

5

O c t - 1

5

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


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Lowest volatility among commodities

Source: Bloomberg – February 22, 2016

2535455565758595

105115125135145155165175185195205215225

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

J u l - 1 5

A u g - 1

5

S e p - 1

5

O c t - 1 5

N o v - 1

5

D e c - 1

5

J a n - 1

6

F e b

- 1 6

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

117

212

74

54

37

Low volatility of hardwood pulp price, even thoughnew capacities have come on stream during the period.

32

100 = January 1, 2012


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The only commodity with lower volatility than FX

Historical Volatility of Commodities (US$)

Since 2009 until feb/16

18

37%35% 34%

27% 26% 25% 24% 24%

16%14%

6%

WTICrude Oil

Sugar Nickel Copper Soy Iron Ore Ibovespa LMEMetals

Cattle FX FOEX PIXBHKP


19/6519Financial and Operational Highlights

h % d i i f h l i A b d


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Each 5% depreciation of the Real increases EBITDA by aroundR$403m (11%) and FCF by R$482 m (45%)

815

1,4881,173 1,153 1,295 1,185

1,560

2009 2010 2011 2012 2013 2014 2015

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 2.353.33

4.20(1)

456670 639 581 610 572 582 559(2)

29%40% 34% 36% 40%

39%

53%

912 1,179 1,067 1,1331,311 1,344

1,9512,348

(1) According to Focus Report (Br azilian Central Bank – February 19, 2016) I (2) 2016 market consensus

2016 E


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Cash Production Cost (US$/t) – 4Q15

186171

148

11

(56) 610

113

(14) (10)

4Q14 Inflation FX Lowerenergy price

Maintenancedowntime

Non recurringwood

Non recurringenergy

consumption

Cash cost4Q15

Total nonrecurring

Maintenancedowntime

4Q15 recurringcash cost

ex-downtime

Management initiatives gains partially offset the inflation impact


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Net Results (US$ million) – 2015

1,600

107

(909)(249)

(101)

-0,227

155

-

(567)178

AdjustedEBITDA FX Debt MtMHedge Net Interest Deprec., amortiz.and depletion

Taxes Others Net Income

Non-recurringeffects

∆∆(1)

Dividend proposal of US$90 million, representing 84% of net income.

(1) Includes other exchange rate/monetary variations, other financial income/expenses and other operating income/expenses.


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Free Cash Flow(1) – LTM 4Q15US$ million

1,600

859636

(484) (89)(151) (23) 6

( 223 )

AdjustedEBITDA

Capex(ex-H2 project &

land deal)

NetInterest

WorkingCapital

Taxes Others FCF(ex-H2 project &

land deal)

CapexH2 &

land deal

FCF(3)

(1) Notconsidering dividend payments, capex related to theHorizonte 2 Project and theland acquisition in December 2015.(2) Not considering dividendpayments.(3) Includes other financial results.


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ROE and ROIC (US$)

25

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

4.8%3.4%

5.7% 6.2%

25.1%

32.0%

2011 2012 2013 2014 2015 Annualized4Q15 US$

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

3.9%6.9%

9.2% 8.0%

22.8%

29.2%

2011 2012 2013 2014 2015 Annualized4Q15 US$

1.67 1.95 2.16 2.35 3.34 3.84 1.67 1.95 2.16 2.35 3.34AverageFX

3.84


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

(1) G-spread on February 25, 2016

450 450 474 477 489526 543

660

826

1.112

FIBRIA BRFOODS BRAZIL SUZANO EMBRAER GLOPAR KLABIN BRASKEM VALE GERDAU


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200

400

600

800

1.000

1.200

1.400

2010 2011 2012 2013 2014 2015

Fibria 2020 Fibria 2021 Fibria 2024

Interest expense, leverage and average cost of debt in US$ Historical G-spread (bps)

Strong Credit Quality

7.29

4.11 4.25

3.32

2.60 2.41

1.78

Leverage

6.3 5.95.5

5.24.6

3.4 3.3 (1)

Cost of debt

473414 408

350268

200141

2009 2010 2011 2012 2013 2014 2015

Interest Expense(US$ million)

BBB- BBB- Ba1


28/6528Horizonte 2 Project


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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: 4Q2017Capacity: 1.85 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/APRIL

CMPC

Fibria 7,950

Current Capacity

New Capacity

New Capacity – Klabin Agreement

New Capacity – Horizonte II Project

Even more competitive cash production cost w/ H2


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Even more competitive cash production cost w/ H2BHKP (US$/t)

Source: Hawkins Wright (Price Forecast December 2015) and Fibria’s 4Q15 Earnings Release - FX considered by the consultant at R$/US$3.87.H2 cash cost was estimated according to weighted average cost, after mill balance, converted at R$3.87. Includes energy sales.

447 419331 335

272 281174

160 142

35 60

62 1836 23

36 46

482 479

393353

308 304

210 354812025371

China USA Canada Iberia Chile/Uruguay Indonesia Brazil Fibria 2015 Fibria w/ H2

Cash Cost (US$/t) Delivery CIF Europe

BHKP (US$/t)

Interest

Capex

SG&AIncome Tax

2,025 1,445 1,030 2,210 4,595 3,520 14,065 Total: 28,890BHKP

capacity(000’ t)

Working Capital

Expansion CAPEX update


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Expansion CAPEX updateFrom US$2.5 bi to US$2.2 bi

0.65

0.32

0.05

0.20

2.5

2.2

Original Revised

BRL EUR USD and others

72%

26%

2%

72%

19%

9%

FX and inflation partially offset by the negotiation with suppliers

CAPEX (US$ billion)

3%

60%

33%

3%1%

2015 2016 2017 2018 2019 andthereafter

Timetable


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32

Funding

Amortization Schedule – 4Q15 Proforma with TLS II – US$ million

Cost and maturity:

4Q15 4Q15 + H2

Average Cost (US$ p.a)

Average Maturity (years)

3.3%

4.3

2.8%

5.0

H22.0%

6.3

(1) Considering swap transactions. | (2) Debt FX 3Q15: 3.9729 / FX considering new funding for the TLS II Project: 3.90

275 274

581

1.113

482

668

140 126

721

115 10345 13

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

BNDES Bond PPE NCE ACC/ACE CRA ECA Outros FDCO Total

Capex H2: 1,350 668


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33

Project financials at a glance

UNIT R$ US$

Pulp production/year k tons 1,850 1,850

Expansion capex (1) $ billion 8.7 2.2

Expansion capex (1) $/t 4,702 1,204

Sustaining capex (2) $/t 193 49

Cash cost (3) $/t 341 87

Energy surplus MWh 120 120

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

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

(3) Estimated weighted average cost, after mill balance. Includes energy sales.

Note: FX 2015: 3.9048


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34Final Remarks


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35

Fibria’s structural fundamentals drive the leading return metrics

► Less volatile commodity in US$

► Costs in BRL

► The highest forest productivityworldwide

► Operational excellence

► Unique customer base with steadysales volumes through long-termcontracts

► Low cost of debt

► Strong corporate governance

High ROE/ROIC in the long-term


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37

Fibria is able to create value for its shareholders with capital discipline

INDUSTRY

CONSOLIDATION ?

PULPGrowth with discipline

Best portfolio of projects

DIVIDENDS

BIO-ENERGY AND

OTHER OPPORTUNITIESComplementary to pulp

Portocel

Land and forest

FREE CASH FLOW

WITHOUT JEOPARDIZING CREDITMETRICS


38/65

38Backup


39/65


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40

Pulp sales destination: Fibria growing where the market grows

(1) Considers 4Q15 last twelve months. | (2) Includes Klabin’s sales volume

37%

36%

43%

24%

19%25%

4%8%

Total sales volume distributionafter H2 start up (2)

Current net revenue distribution (1)

Outbound logistics


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41

Outbound logisticsFibria has logistical alternatives on a competitive basis

PortsHighwaysRailroadsWaterways

Data Collection / PreliminaryAnalysis Logistics Costs

Opex - RatesCapex

QualitativeModal conditions

Analysis

Mato Grosso

MatoGrosso do

Sul

Goiás

Brasilia


42/65

Rating agencies understand that the Project will not jeopardize


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43

g g j j pFibria’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

Capital Structure: Fibria has achieved the lowest leverage ratio among


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44

p g gits Latin American peers

Net Debt/EBITDA (x)(1)

Fibria Arauco CMPC Klabin Suzano

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

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

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

(1) Fibria’s historical data in BRL.

2.1

2.7

6.3

3.5

2.9

4.2

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

Fibria Suzano Klabin CMPC Arauco Eldorado


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2. Forestry operations productivity


50/65

Possible Restrictions

Declivity

0: Higher than 35°1: Btw 24°and 35°

2: Btw 0° and 24°

ConservationAreas

0: Within CAs(1)

1: Within EPA (2) andEBZ(3)

2: Out of EPAs andEBZ

MunicipalRestrictions

0: Total restrictions1: Partial restrictions2: No restrictions

EPA Altitude

0: Higher than1800m1: Lower than1800m

Urban Zones

0: Urban Zones1: Outside urbanareas

Remnants of nativevegetation

0: Remnants areas1: Outside remnantsareas

Possible Impediments

Possible combinations

X 0, 1 and 2, removed;

4 e 8, high potential(1) ConservationAreas(2) EnvionmentalProtection Areas(3) Environmental Buffer Zones

2. Forestry operations productivityIdentifying opportunities based on these combinations

50



51/65

Roads

Transportation

SilvicultureHarvest

2. Forestry operations productivityCost and Capex KPI’s were also included in this geo-model

51



52/65

Mixed Harvest Mechanization (Hilly areas)

► Mixed cutting operation with highdemand for MO and high risk to safety;

► Harvest limitations in areas above24 degrees;

► Increase annual capacity to harvest inareas up to 35 degrees , previously "locked up" byharvesting capacity of manual staff;

► NPV: R$71 million► Capex: R$5 million► Operational since Aug 2015

PROJECT DESCRIPTION (JACAREÍ UNIT)

Harvest

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PIFF

► Freight cost reduction;► Increased load box for timber/woodchip

transport► Use of lightweight steel;

► Operational risk reduction (flipping);► Investment: R$33 million► NPV: R$139 million► Startup: 2015 / 2016

PROJECT DESCRIPTION (ARACRUZ, JACAREÍ AND TRÊS LAGOAS UNITS)

Timber transportation Woodchip transportation

y p p y

Transportation

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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$38 million

► NPV: R$95 million

► Startup: Jan/2017

PROJECT DESCRIPTION (ARACRUZ UNIT)

2. Forestry operations productivityTransportation

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10%

30%

50%

70%

90%100%

0%

20%

40%

60%

80%

100%

2015 2016 2017 2018 2019 2020

2. Structural change in forestry operations productivity

• Structural cost reduction of R$170 million per year (Capex + Opex) in 2020;

• NPV of approximately R$2 billion

• Seek opportunities for purchase / lease of more attractive areas, divest from unattractive land/forest, as well as the implementation of

technologies that will lead us to the structural cost

NPV Expected Curve

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3. Industrial: maintenance downtimes schedule change

► Regulatory Standard 13 (Boiler and Pressure Vessel Inspection) extended the maximum period betweenrecovery boiler inspections from 12 to 15 months.

► Fibria was the first company to use the extended period benefit

► NPV: R$385 million

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Mills

Aracruz A

Aracruz B

Aracruz C

Jacareí

Três Lagoas

Veracel

12 months 15 months

No maintenance downtime





2014 2015 2016 2017 2018

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Biological Sludge Dryness Process

3. Industrial: Biological Sludge Dryer

► Variable cost reduction associatedwith the disposal of sludge operationsin external landfill

► Capex: R$18 million► NPV: R$100 million► Startup: Dec./2016

PROJECT DESCRIPTION (JACAREÍ UNIT)

Operational Flow – Conditioning and biological sludge burn

• 00Effluent+SludgeAeration Tank

Biological

Sludge Tank

• 00Biomass Pile

Sludge Dryer

BiomassBoiler

Sludge drying and burn in biomass boiler

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Fibria’s tax structure


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Fibria s tax structure

Fiscal - annual adjustment

Benefit Amount Maturity

Goodwill(Aracruzacquisition)

Annual tax deduction:US$23 million (tax)

Remaining Balance Sept/15:US$ 0.213 billion (base)

2018

Forestry Capexin Mato Grossodo Sul state

2015 tax deduction relatedto depletion: US$9.4 million

Undefined

Tax loss carry forward and tax credits

Benefit Amount

Tax losscarryforward

Balance up to Dec./15: US$33million (base)

Accumulated taxcredits

Balance Dec./15:- PIS/COFINS: US$186 million

- Withholding tax (IR and CSLL):R$195 million

- Befiex: US$91 million

- Reintegra: US$23 million

2010 2011 2012 2013 2014 2015

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

TAX BENEFITS

TAX PAYMENT(cash basis)

(1)

(2)

(1) Considering FX 3.9048 | (2) Considering average FX for the period.

Leadership Position


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Recycled Fiber242 million t

46% 54%

59%

18% 82%

59% 41%

41%

30% 70%

25%75%

Fiber Consumption412 million t

Pulp169 million t

Chemical140 million t

Mechanical30 million t

Integrated Mills83 million t

Market Pulp57 million t

Hardwood31 million t

Other EucalyptusPulp producers:

16 million t

Softwood/Other26 million t

Acacia/Other9 million t

Eucalyptus21 million t

Industry Outlook (1)

Leadership Position

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

Global Market Pulp Demand


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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

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

Hardwood Softwood

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

000 ton 1999 2009 2019Growth1999-2009

Growth2009-2019

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.

Benefiting From China’s Growth


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World Tissue Consumption, 1991-2013 (3)

Per Capita Consumption of Tissue by World Region (3)China's Share of Market Pulp (2)

24

15 1512

7 6 5

1

N.America

WestEurope

Japan Oceania EastEurope

LatAm China Africa

10% 10%12% 14%

21%

17%

22%23% 23% 23%

0

2

4

6

8

10

12

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Eucalyptus Hardwood Total % Compared to the global Market Pulp

(Kg/capita/year)

(million t) (kg/person/year)

Between 2005 and 2014,the Chinese market shareof eucalyptus shipmentsincreased by 19 p.p. (totalmarket pulp: + p.p.)

0

5

10

15

20

25

30

35

1991 1996 2001 2006 2009 2010 2011 2012 2013N.America W.Europe E.Europe L.America

Middle East Japan China Asia FEOceania Africa

LTM GrowthRate +4.2%

g

(1) PPPC – Pulp China – Flash Report – September 2015(2) PPPC – W20. Coverage for chemical market pulp is 80% of world capacity(3) RISI

(million t)

8.724

4.301

2.154 2.029

166 59 15

9.185

4.898

2.041 1.849

201 189 8

BHKP Total LatinAmerica (1)

Indonesia Others(2) USA Canada WesternEurope

2014 2015

Latin America is theleading exporter of BHKPto China, accounting to

approximately 53% ofChina's total imports in2015.

(‘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)

Commodities Differentiation


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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

201194172152

124115

Source: Itaú Macroeconomic Department and PPPC – Oct/15


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Capacity closures DO happen


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Source: PPPC and Fibria

Closures of Hardwood Capacity Worldwide

(000 ton)

p y pp

-910

-85

-1,260-1,180

-540 -500

-105

-1,085

-445

-315

-580

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016-2017 E (1)

(1) As of January 2016 | 2016: -40kt Old Town (USA), -90kt Woodland (USA), -55kt Verso Wickliffe (USA), -120 April Kerinci (Indonesia) | 2017: -275kt Arauco Valdivia (Chile)

Growth rate Chinese GDP vs Eucalyptus Shipments to China


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

180

-

50

100

150

200

250

China GDP Eucalyptus Shipments

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JP Morgan 7th Annual - Global Emerging Markets Corporate Conference

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