Corporate Presentation Corporate Presentation: March, 2012

Corporate Presentation
March, 2012
Disclaimer
The information contained in this presentation may include statements which constitute forwardlooking 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 forwardlooking statements, due to a variety of factors, including, but not limited 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, and specifically disclaims any obligation to update any forwardlooking statements, which speak only for the date on which they are made.
The Company
VCP and Aracruz Merged to Create Fibria
Shareholder Structure
Votorantim Industrial S.A. 29.34%
BNDESPar 30.42%(1)
Free Float 40.24%(2)
(1) (2)
Position as of February 29, 2012. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years and 11% during the following 2 years. Free Float 40.17% + Treasury 0.07%
Improved Corporate Governance
Improved Corporate Governance
Board and Committees
Listed on Novo Mercado, highest level of Corporate Governance at BM&F Bovespa

Only 1 class of shares 100% vo;ng 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
Shareholders Meeting
Fiscal Council
Board of Directors
9 Members: 20% Independent Chairman CEO
Listed in the most important sustainability indexes
Board Advisory Committees(1)

Audit and Risks Personnel and Remuneration Finance Sustainability
Policies approved by the Board of Directors

Liability and liquidity management Market risks Corporate governance Information disclosure Stock trading
Executive Officers
(1) Members performance assessed by independent consulting firm
A Winning Player
Superior Asset Combination Main Figures(1)
Pulp capacity Net revenues Total area Planted area

Belmonte Veracel Caravelas Portocel Aracruz
million tons R$ billion thousand ha thousand ha R$ billion X
5.25 5.8(1) 1,080(2) 612(2) 9.5 4.8
Net Debt Net Debt/EBITDA
Trs Lagoas Jacare Santos
Port Terminal
Pulp Unit
Source: Fibria (1) 2011. (2) As of December 31, 2011, including 50% of Veracel and excluding forest partnership areas (117 thousand ha).
Fibrias Units Industrial Capacity

Trs Lagoas Mato Grosso do Sul 1.3 million t/year Jacare So Paulo 1.1 million t/year
Aracruz Esprito Santo 2.3 million t/year
Veracel Bahia 1.1 million t/year
Fibrias Strategy
Clear Leadership Position
Industry Outlook (1)
Market Pulp Capacity Ranking 2010(2) (000t)

Fibria APRIL Arauco
Paper & Board 392 million t
5,250
57% Recycled Fiber 224 million t
43% Pulp 167 million t
APP Georgia Pacific CMPC Sodra Stora Enso Weyerhaeuser Suzano

37% Market Pulp 50 million t 50% 50% Hardwood 25 million t
20% Mechanical 33 million t
80% Chemical 134 million t
63% Integrated Mills 84 million t
Botnia/M-real UPM-Kymmene Domtar Ilim Mercer IP ENCE

63% Eucalyptus 16 million t
Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical
Softwood/Other 25 million t
37% Acacia/Other 9 million t
West Fraser Canfor Cenibra

32%
68% Other Eucalyptus Pulp producers: 11 million t

(1) (2)
1000
2000
3000
4000
5000
6000
RISI and PPPC (nov 2011): considers 2010 demand Hawkins Wright January 2011
Relevant Market Share and Competitive Position in the Cost Curve
Fibrias Market Share (1)
Average Cash Cost of BHKP delivered to Europe(2) (US$/t)
Mill Cash
10% 19%
Delivery
1000 800 600 120 400 200 464 500 501 493 70 39 41 85 423 42 456 33 426 57 359
SG&A Maintenance Capex Financial Expenses
69 316
51 310
55 246
Total Market Pulp: 52.6 million t
Total Hardwood Market Pulp: 26.7 million t
29%
Hardwood Cash Cost (US$/t) vs Capacity ('000 t)

800 700 Cash cost (US$/t) 600 500 400 300 200 100 0 5000 (1) (2) PPPC World Chemical Market Pulp Global 100 Report December 2011 (World Demand by Grade) Source: Hawkins Wright as July 2011 Report and Fibria 4Q11 10000 15000 Capacity ('000s t) 20000 25000 30000 Bleached hardwood kraft
10 million t
Total Eucalyptus Market Pulp: 17.2 million t
10
Exchange Rates and Inflation Affect the Cost Structure

Exchange Rate Currencies Evolution versus Dollar (Jan03 = 100)
230 210 190 170 150 130 110 90 70 50 Jan-03 Apr-03 Jul-03 Oct-03 Feb-04 May-04 Aug-04 Dec-04 Mar-05 Jun-05 Sep-05 Jan-06 Apr-06 Jul-06 Nov-06 Feb-07 May-07 Aug-07 Dec-07 Mar-08 Jun-08 Oct-08 Jan-09 Apr-09 Jul-09 Nov-09 Feb-10 May-10 Sep-10 Dec-10 Mar-11 Jun-11 Oct-11 Jan-12 Rupia: -3% Canadian Dollar: 51% Chilean Peso: 31% Real: 78%
Cost Structure
Global producers have been impacted by: Wood: cost of land and minimum wage growth above inflation Chemicals / energy / water: global demand for commodities add pressure on main raw materials On top of that, Brazilian producers have also been impacted by: Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices Labor: cost in Brazil in dollar terms is higher than in some developed countries
11
Global Presence
Fibrias Commercial Strategy
Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers focused on eucalyptus pulp to the tissue market The top 10 customers represent, on average, 70% of sales Over 20 years of relationship with many of the main clients Global contracts
P&W 22% Specialities 24% Tissue 54%
2011 End Use
42%
25%
N.America Europe
Nyon Miami
Csomd
23%
Asia
Hong Kong
10%
L.America
So Paulo
Source: Fibria
Fibria Sales Distribution
Fibria Offices
12
Focus on Premium End-Uses
Fibria's Pulp Destination

Printing&Writing 22%
Market Pulp Destination

43%
20102010-2025 Demand Growth (CAGR)

1%
Tissue
54%
24%
4%
Specialities
24%
14%
3%
Newsprint
0%
Containerboard
8%
5%
Others
11%
3%
Source: Fibria 4Q11 Earnings Results, PPPC, RISI and Fibria
13
Financial Highlights
14
Quarter Highlights
4Q11 Results
4Q11 Pulp production (000t) Pulp sales (000t) Net revenues (R$ MM) Pro Forma EBITDA1 (R$ MM) EBITDA margin (%) Financial results (R$ MM) Net income (loss) R$ MM)
1
Pulp Production and Sales

4Q10 1,330 1,254 1,564 606 39% 35 162 4Q11 vs 3Q11 0% 13% -4% -18% -5 p.p. 4Q11 vs 4Q10 -2% 12% -11% -36% -11 p.p. -
103% 97% 5,054 4,909
3Q11 1,296 1,244 1,449 476 33% (2,015) (1,114)
99%
Sales x Production
1,299 1,408 1,399 390 28% (142) (358)
5,184 5,141
Sales Mix 2011 Europe North Am Asia Others 42% 25% 23% 10%
4,600 4,754
2009
2010 production (000 t)
2011 sales (000 t)
Excludes Conpacel and KSR results in 4Q10
Cash Cost (R$/t)
Operating Excellence (000 t)

73% of Conpacels volume offset by additional production
+4%
2011 vs 2009: +9% Inflation: +13%
5,231 130 5,054 -177 471
5,184
481 443 425 432
448
4Q10
3Q11
4Q11
2009
2010
2011
2010 with Conpacel
Conpacel
2010 w/o Conpacel
Operating excellence
2011
15
Synergies
Net Present Value of Synergies (R$ billion)
Others 2% Industrial 27%
Supply Chain 21%
Estimated 4.5 3.4 2.7 2.3 0.5 2009 2010 2011
Actual 4.2 4.3 4.5

Tax 11% SG&A 16% Forestry 23%
2012
2013
2014
3 years ahead of schedule for our synergy capture goal of R$4.5 billion at NPV driven by: Additional production in the existing units Cost control (cash cost below inflation) Maintenance Capex reduced for 2012 >>> best practices adopted on the forest and industrial fronts
16
Debt
Key Figures
5.6 (R$ million) 4Q11 3Q11 4Q10 4Q11 vs 3Q11 4Q11 vs 4Q10 4.7 3.9 3.6 Gross Debt Cash1 11,324 1,846 11,314 1,772 12,022 2,205 0% 4% -6% -16% 1Q10
1.80 1.78
the hedge fair value of R$214 million negative. Cash and cash equivalents position was R$2,060 million.
1 Includes 2 Last
Net Debt/EBITDA2 (x)
4.2 2.9 3.2
4.8
2Q10
1.79 1.80
3Q10
1.75 1.69
4Q10
1.70 1.67
1Q11
1.67 1.63
2Q11
1.60 1.56
3Q11
1.63 1.85
4Q11
1.80 1.88
FX (R$/US$) average close
Net Debt
9,478
9,542
9,817
-1%
-3%
twelve months adjusted EBITDA
Debt Amortization Schedule (R$ million)
Highlights
Foreign currency
Local currency
6,519
1,092 609 2012 2013
937 2014
697 2015
643 2016
827 2017 2018-2021
- Cash position = R$ 1.8 bi - Cash position equivalent to 1.6x short term debt - Debt maturing in 2012 = R$ 1.1bi - Average debt maturity = 73 months - Covenants renegotiation successfully concluded without waiver
fee
17
Actions to Improve Free Cash Flow
R$ million EBITDA CAPEX
2011(1) 1,964 (1,240)
2012 Focus on cost and expenses control and reduction Competitiveness Project 2012 approved CAPEX of R$ 1.0 billion
Dividends
(264)
Interest (net)
(383)
Focus on liability management
Tax Working capital Free Cash Flow

(1) Does not include liquidity events
(4) (178) (105) Focus on continuous improvement (clients and suppliers)
18
Investor Relations E-mail: ir@fibria.com.br Phone: +55 (11) 2138-4565 Website: www.fibria.com.br/ir
19

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Corporate Presentation

VCP and Aracruz Merged to Create Fibria

Votorantim Industrial S.A. 29.34%

Free Float 40.24%(2)

Improved Corporate Governance

Improved Corporate Governance

Board and Committees

Listed on Novo Mercado, highest level of Corporate Governance at BM&F Bovespa

9 Members: 20% Independent Chairman CEO

Listed in the most important sustainability indexes

Board Advisory Committees(1)

Policies approved by the Board of Directors

(1) Members performance assessed by independent consulting firm

Pulp capacity Net revenues Total area Planted area

million tons R$ billion thousand ha thousand ha R$ billion X

5.25 5.8(1) 1,080(2) 612(2) 9.5 4.8

Net Debt Net Debt/EBITDA

Trs Lagoas Jacare Santos

Fibrias Units Industrial Capacity

Aracruz Esprito Santo 2.3 million t/year

Veracel Bahia 1.1 million t/year

Clear Leadership Position

Industry Outlook (1)

Market Pulp Capacity Ranking 2010(2) (000t)

Paper & Board 392 million t

57% Recycled Fiber 224 million t

43% Pulp 167 million t

APP Georgia Pacific CMPC Sodra Stora Enso Weyerhaeuser Suzano

20% Mechanical 33 million t

80% Chemical 134 million t

63% Integrated Mills 84 million t

Botnia/M-real UPM-Kymmene Domtar Ilim Mercer IP ENCE

37% Acacia/Other 9 million t

West Fraser Canfor Cenibra

68% Other Eucalyptus Pulp producers: 11 million t

Relevant Market Share and Competitive Position in the Cost Curve

Fibrias Market Share (1)

Average Cash Cost of BHKP delivered to Europe(2) (US$/t)

SG&A Maintenance Capex Financial Expenses

Total Market Pulp: 52.6 million t

Total Hardwood Market Pulp: 26.7 million t

Hardwood Cash Cost (US$/t) vs Capacity ('000 t)

Total Eucalyptus Market Pulp: 17.2 million t

Exchange Rates and Inflation Affect the Cost Structure

2011 End Use

Fibria Sales Distribution

Focus on Premium End-Uses

Fibria's Pulp Destination

Market Pulp Destination

20102010-2025 Demand Growth (CAGR)

Source: Fibria 4Q11 Earnings Results, PPPC, RISI and Fibria

Pulp Production and Sales

103% 97% 5,054 4,909

3Q11 1,296 1,244 1,449 476 33% (2,015) (1,114)

1,299 1,408 1,399 390 28% (142) (358)

2010 production (000 t)

2011 sales (000 t)

Excludes Conpacel and KSR results in 4Q10

Cash Cost (R$/t)