tao BofA 11 Mar.ppt MododeCompatibilidade

8/4/2019 tao BofA 11 Mar.ppt MododeCompatibilidade

1/26

1

Bank of America Merril Lynch Pan Latam Conference

March 2010


2/26

The information contained in this presentation may include statements which constituteforward-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 of1934, as amended. Such forward-looking statements involve a certain degree of riskand 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, orma not be ossible to realize. The com an ives no assurance that ex ectations

Disclaimer

2

disclosed 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 from

those 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 the

companys 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.


3/26

Agenda

The Company

Market Positioning

Pulp and Paper Market

3

Recent Events


4/26

4

The Company


5/26


6/26

Improved Corporate Governance

Board Advisory CommitteesBoard of Directors

Auditing

Personnel and Remuneration

Finance

Sustainability

Jos Luciano Penido Chairman of the Board

Raul Calfat Indicated by Votorantim

Wang Wei Chang Indicated by Votorantim

Joo Miranda Indicated by Votorantim

Alexandre DAmbrosio Indicated by Votorantim

Armando Mariante Carvalho Junior Indicated by BNDES

Eduardo Rath Fingerl Indicated by BNDES

Jos Armando de Figueiredo Campos Independent Member

Alexandre Gonalves Silva Independent Member

6

CEO

Board of

Directors

Executive Board

Ind. Ops &

Engineering

Francisco Valrio

Comm. & Intl

Logistics

Joo Felipe Carsalade

Paper,

Planning,

Procurement,

and Forestry

Ops. & Tech

Marcelo Castelli

Controllershi

p & Risk

Management

Evandro Coura

Human and

Org.

Development

Miguel Caldas

Treasury & IR

Marcos Grodetzky

Each officer with more than 20 years experience in the sector

Carlos A. Aguiar


7/26

7

Market Positioning


8/26

Competitive Strengths

Creation of a Winning Player

Pulp MillPaper Mill

BelmonteVeracelCaravelas

Portocel

Superior Asset Combination

Port Terminal

Leadership in MarketPulp

Scale and IntegratedOperations

Low ProductionCost DNA

8

Pulp production capacity: 5.4 MT / year

Paper production capacity: 358 kT / year

Total area: 1.0 million ha

(1)

|Eucalyptus plantation: 585 thousand ha(1)

4 plants and operation of 3 port terminals, including the only specialized woodpulp terminal in Brazil, owned by us

High yield in eucalyptus production (avg 45 m3/ha/year) and certified forests

Short harvest cycle: 6 years vs. 25-70 years in Southern U.S., Canadaand Scandinavia

AracruzPiracicabaJacareiSantos

Trs LagoasConpacel

Data as of Dec 30, 2009.(1)Does not include partnership program which represents 128 thousand ha.

Unique ForestryManagement:

Advanced ForestryTechniques and

Short Harvest Cycle

Forest to Port

Integration Trough

Efficient Logistics

Strong / ReliableCustomer Base

Modern IndustrialPlants


9/26

Market Share (1)

Undisputable Leadership in the Global Market Pulp

Pulp Production Capacity

Botnia

Sodra

CMPC

APRIL

Arauco

Fibria

2009E in ktons

5,400

Dominant Position in a Growing Market

1st

~ Twice

the size

TotalTotal Market Pul :

3%11%

9

0 1.000 2.000 3.000 4.000 5.000 6.000

Stora Enso

Cenibra

West Fraser

Mercer

ENCE

Georgia Pacific

I l im

IP

Domtar

Canfor

APP

Weyerhaeuser

Suzano

Tembec

BSKP BHKP U KP Mech.

Source: PYRY, 2007 / As for Market Pulp: Pulp and Paper Products Council (PPPC) 2009 and F ibria.(1) Market Share estimated considering 2009 nominal capacity.

Pulp:

188 million t

Total Hardwood Pulp:

25 million t

48.5 million t

Total Eucalyptus Pulp:

17 million t

22%

32%


10/26

2,44

2,18

276

322

249 151 266 177305

171 135 106 96

254 175207

303177

239103

119135 155 163

530497

456 454 443416 408

290 269 261 259

W oo d O th er s

Low Production Cost DNA

Unique Expertise Enabling the Lowest Cash Cost in the Market and High Profitability

Cash Cost (US$/t)

Cash Costs (2)Fibrias Margin vs. Macroeconomic Fundamentals (1)

(3)

Average Price

BEKP (US$/ton) (1)

583

641

705

783

565

680

10

1,95

1,84

2,00

1,74

(1) Source: Companies earnings releases, RISI and Brazilian Central Bank(2)

Source: Hawkins Wright Estimate for 4Q09(3) Fibria's 4Q09 figures

Hardwood Cash Cost (US$/t) vs. Capacity (kT)

Iberia

0

100

200

300

400

500

600

0 2.000 4.000 6.000 8.000 10.000 12.000

Iberia

259

Capacity (kT)

US$/ton

Exchange Rate

Average (RS/US$) (1)

1.0131.115

880

2.196

1.697

503

30%37%

28%

37%

34%

39%

2005 2006 2007 2008 2009 4Q09

EBITDA Margin

EBITDA (R$ million)


11/26

State-of-the-Art Production Facilities

Modern Plants

Advanced Technology and Production Process Lead to Lower Usage of Raw Materials, Reducing Costs

Streamlined and efficientoperations due to modernplants

Competitive Advantages

AracruzCapacity 2.3 mtTechnical age: 9

Trs LagoasCapacity 1.3 mtTechnical age: 0

Average PlantCapacity(000 tons)

2,500

2,000

LARGEST SINGLE

LINE PULP

PRODUCTION

FACILITY IN THE

WORLD

11

and Allowing for a Unique Track Record of Quality Products

Environmental-friendlyproduction process

Reduced emissions anddisposition of residues

Efficient use of chemicals

JacareCapacity 1.1 mtTechnical age: 5

1,500

1,000

500

40 30 20 10

Russia

Japan

USASweden

CanadaPortugal

FinlandFranceSpain

ChileSouthAfrica China

Brazil

Indonesia

Uruguay

Technical age of the equipment (years)

VeracelCapacity 1.1 mtTechnical age: 3

BEST YIELD PER

HECTARE OF THE

WORLD

Indonesia


12/26

Unique Brownfield Potential Growth

Fibria has the Best Sites Ready to Almost Duplicate Capacity

In million of tones

Historical and Planned Capacity Increase

1978: Start-up of mill "A" at Aracruz (Barra do Riacho)unit

1988: Acquisition of Celpav

1992: Acquisition of Papel Simo (Jacare unit)

1996: New pulp line at Jacare mill

1991: Start-up of mill "B" at Barra do Riacho unitBarra do Riacho IV

10.7

Best sites for additional capacity

1.5

5.3

12

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

Ara cruz VCP Fi bri a

2003: Expansion of Jacare mill

2003: Acquisition of Riocell (Guaiba Unit)

2005: Start-up of Veracel

2002: Start-up of mill "C" at Barra do Riacho unit

2007: Asset swap Luis Antnio for Trs Lagoas

2008: Establishment of Conpacel consortium

2009: Start-up of Trs Lagoas mill

5.4

Veracel II

Trs Lagoas II

Expansion

Losango I

Bro wn field Bro wn field G re en field Bro wn field

0.8

1.5

1.5


13/26

Long Term Relationship With Key Clients

Premium Paper Producers Value High Quality Pulp Customized Products

Global Footprint

Supplies customized pulp products to specific paper grades

Sole supplier to key customers focused on eucalyptus pulp to the tissue market

Top 10 main customers represent on average 65% of salesTissue

Specialty

Uses of Fibrias Pulp

Europe

24%

43%

33%

13

NY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.wor Which Implies in Less Volatility in Sales Volume Throughout Economic Cycles

1 Breakdown of sales destination in the last 12 months ending December 31, 2009.

P&W31%

Offices

North America

23%Asia

36%

Brazil

10%

Beijing

Switzerland

Sales

Destination (1)

Miami Hong Kong

Hungary


14/26

14

Pulp and Paper Market


15/26

Positive Commodity Cycle and Demand Recovery

World market pulp shipments to capacity World P&W paper shipments to capacity

85%

93%92%

94%

91%91%

89%

82%

86%

83%

79%

90%

77%

88%

92%

97%

86%

95%

92%93%

95%

90%

92%

90%

86%

93%

98%

93%

95%

88%

92%

89%

87%

97%

92%

85%

78%

76%

79%79%

77%

73%

79%79%78%

89%

87%86%

81%

10

2030405060

Jan-05

May-05

Sep-05

Jan-06

May-06

Sep-06

Jan-07

May-07

Sep-07

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

Jan-10

15

20

25

30

35

Jan-05

May-05

Sep-05

Jan-06

May-06

Sep-06

Jan-07

May-07

Sep-07

Jan-08

May-08

Sep-08

Jan-09

May-09

Sep-09

Jan-10

15

World pulp producers average days of supply European pulp consumers days of supply

Source: PPPC Source: Utipulp

Source: PPPC Source: PPPC

jan

/08

feb/08

mar/

08

apr/

08

may

/08

jun

/08

jul/08

aug

/08

sep

/08

oc

t/08

nov

/08

dec

/08

jan

/09

feb/09

mar/

09

apr/

09

may

/09

jun

/09

jul/09

aug

/09

sep

/09

oc

t/09

nov

/09

dec

/09

jan

/10

30 23

jan

/08

feb/08

mar/

08

apr/

08

may

/08

jun

/08

jul/08

aug

/08

sep

/08

oc

t/08

nov

/08

dec

/08

jan

/09

feb/09

mar/

09

apr/

09

may

/09

jun

/09

jul/09

aug

/09

sep

/09

oc

t/09

nov

/09

dec

/09


16/26

101146 132

6593

210

419

238

307

368

307 299247

233256

98

323307

186 181192

134

318

458

Jan/08

Feb/08

Mar/09

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09

Dec/09

Pulp Supply / Demand Expected to Rebalance in theMedium Term

Market Pulp: world demand growth China: Eucalyptus pulp shipments (000 t)

Average305 k tons

Average163 k tons

2%

-11% -11%

10%

-17%

55%

Tota l North

America

Europe Lat im

America

Japan China

16

60

70

80

90

100

110

120

130

140

Jan

/09

Fe

b/09

Mar/

09

Apr/

09

May

/09

Jun

/09

Ju

l/09

Aug

/09

Sep

/09

Oc

t/09

Nov

/09

Dec

/09

Jan

/10

Fe

b/10

BRL/USD FOEX BHKP List Price

BHKP List pulp price (FOEX) vs BRL/US$ Global market recovery

Demand

Paper demand recovery; China keeping up the pace.

Low consumers and producers inventories

Market downtimes;

Currency

Appreciation of local currencies against the US$.

Successive announcements of list price increases (as of Mar.10)

North America: US$870/t

Europe: US$840/t

Asia: US$800/t

+36%

-20%

2009 vs 2008


17/26

4.000

5.000

6.000

7.000

China's presence in the market pulp sector

China's Hardwood imports of BHKP by country China's share of market pulp (%)

+59%

5.000

6.000

7.000

8.000

9.000

10.000

BEKP

22%

Growth in 2009

2008

BHKP

Total Market Pulp

12%

14%

21%

oot

oot

Pulp shipments ('000 t) and market share (%)

17

0

1.000

2.000

3.000

BHKPTo

tal

Brazil

Indones

ia

Chile

Russ

ia

Uruguay

Cana

da

USA

Others

Ta

ilndia

Source: PPPC W20. Coverage for chemical market pulp is 80% of world capacity.Source: Hawkins Wright

+107%

+2%

+51%

+12%

+117%

+38% +151% +142% +2% 0

1.000

2.000

3.000

4.000

2005 2006 2007 2008 2009

9%11%

13%

16%

26%

7%9% 10%

12%

Brazil is the leading exporter of BHKP toChina, accounting to approximately 41% of China'stotal imports in 2009.

Between 2005 and 2009, Chinese market shareof eucalyptus shipments increased by17 p.p. (total market pulp: +11 p.p.)

10%10'

'


18/26

P&W Paper Capacity Changes

P&W paper capacity withdrawls 2009-2010 (1)

Company / Mill Effective Date 000's tonnes

Puyang Longfeng Jan 2009 350

Tralin, Gaotang Feb 2009 150

MCC Yinhe Paper Jul 2009 200

Guangxi Jindaxing Paper Q3 2009 200

Yeuyang Paper Oct 2009 200

Fujian Nanping Paper Oct 2009 200

2009 = 1.3 million t

China: P&W paper capacity changes 2009-2011(1)

Company Region/Date 000'stonnes

M Real Europe/2009 540

International Paper Europe/2009 250

Others Europe/2009 440

Domtar North America/2009 265

International Paper North America/2009 200

Others North America/2009 255


18

Yeuyang Paper 2010 200

APP, Hainan Island Q1 2010 1,200

Sun Paper/IP Q2 2010 350

Lee&Man 1H 2010 200

Jiangsu Oji Paper May 2010 400

China Metalurgical MeiliPaper Q1 2011 300

Shandong Huatai Paper Q1 2011 500

Shandong Chenming Q1 2011 1,250

Guangxi Huajin Group late 2011 340

Total P&W capacity changes in China 6,040



(1) Source: TerraChoice Dec 2009

Stora Enzo Europe/2010 520

Sappi Europe/2010 220

Others Europe/2010 80

Domtar North America/2010 200

International Paper North America/2010 340

Total P&W capacity withdrawls in Europe and

North America

3,300



19/26

19

4Q09 Financials


20/26


21/26

23%

36%10%

31%30%

22%8%

40%

Financial Performance

Pulp: sales volume ('000 t) Pulp: sales mix (000 t)

2008 2009

1.032

1.276

1.460

21

492

403

441

4Q08 3Q09 4Q09

Asia

Pulp Cash Cost (R$/t)Net revenue (R$ million)

Cash cost w/o

stoppages (R$/t)

BrazilNorth America Europe4Q08 3Q09 4Q09

1.593

1.402

1.698

4Q08 3Q09 4Q09

509

473

426433

451

4Q08 1Q09 2Q09 3Q09 4Q09


22/26

Financial Performance

CAPEX (R$ million)EBITDA (R$ million) and EBITDA margin (%)

546

426

503

34%

30%30% 469

896

116

135 235129

1.005

216

377

1.609

1.247

22

-30

-92 -193

-150

+53

+22+165

424

-79

-84

503

-41

-374

Adjusted

Ebitda

Non-

recurring

effects / non-

cash

Ebitda Income tax

expense

Exchange

Variation on

Debt

Derivatives Other

Exchange

Variation

Interest on

loan

Income on

financial

instruments

Other

financial

income

Minority

Interest

Other (*) Net income

4Q09

Net Income (R$ million)

(*) The amount is the sum of the Depreciation, Amortization and Exhaustion.

4Q08 3Q09 4Q094Q09 2009 2010E

O ther s Manteinenc e E xpansion

32


23/26

Debt Profile

Maturity Schedule of Total Debt (R$ million)

3.084

824

453

1.370

Local Currency Foreign Currency3.908

1.924

1.028

1.402

1.696

1.076910

1.741

23

1.471

262 272 326 289

766.

787811

508

99 45

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

36%

2%2%

10%50%

Pre Fixed Libor TJLP Currency basket CDI

Gross Debt by Index

3%

4%

3%

25%

12%

6%

15%

34%

Pre Payment Fami li es /OPA Bonds BNDES

Derivatives ACC/ACE NCE Others

Gross Debt by type

60%40%

Local Currency Foreign Currency

Gross Debt by currency

553

130348


24/26

24

Recent Events


25/26

Recent Events

Event Date

Acquisition by VCP of additional 28% of Aracruz common shares Jan 20

VCP Capital Increase Apr 14

VCP conversion of prefered into common shares Jun 12

Tender Offer for Aracruz common shareholders Jul 02

Incorporation proposal for the 0.1347 ratio Aug 24

25Source: Fibria

Shareholderes Agreement - VID and BNDES Oct 29

End of withdrawal rights period Nov 12

End of Aracruz trading Nov 17

Fibria trading start (Bovespa: FIBR3 / NYSE: FBR) Nov 18

Approval of the merger of Aracruz into Fibria Dec 22


26/26

26

Investor Relations Team:

Marcos Grodetzky IRO

Andr Gonalves IR General Manager

Fernanda Naveiro Vaz IR Consultant

Anna Laura Linkewitsch IR Specialist

Livia Baptista IR Analyst

tao BofA 11 Mar.ppt MododeCompatibilidade

Documents

Transcript of tao BofA 11 Mar.ppt MododeCompatibilidade