January, 2011
Disclaimer
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 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 forward-looking statements, which speak only for the date on which they are made.
Agenda
1
The Company
2
Market Positioning
3
3Q10 Financials
4
Fibria's 1st Year
5
Corporate Restructuring
The Company
Shareholder Structure
BNDESPar
Treasury
Free Float
29.34%
30.42%1
0.07%
40.17%
50.0%
50.0%
Veracel
Conpacel
Position as of December 31, 2010. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years and 10.9% during the following 2 years.
Shareholders Committee
Board of Directors
9 Members: 20% Independent Chairman: Jos Luciano Penido CEO: Carlos Aguiar
Board Advisory Committees Policies approved by the Board: - Corporate Governance - Information Disclosure - Stocks Trading Adoption of international accounting practices (IFRS)
Audit and Risks Personnel and Remuneration Finance Sustainability
Executive Officers
Market Positioning
A Winning Player
Superior Asset Combination Competitive Strengths
Forest to Port Integration Through Efficient Logistics Unique Forestry Management: Advanced Forestry Techniques and Short Harvest Cycle
Pulp production capacity: 5.4 million t/year Paper production capacity: 358 thousand t/year Total area: 1.0 million ha (1) / Eucalyptus plantation: 585 thousand ha (1) 4 pulp plants, 2 paper plants and operation of 3 port terminals High yield in eucalyptus production (avg 45 m3/ha/year) and certified forests Short harvest cycle: 6 years vs. 25-70 years in Scandinavia
1 Data
as of September 30, 2010. Does not include partnership program which represents 124 thousand ha.
5,400
Bleached Hardwood Kraft Pulp (BHKP) Bleached Softwood Kraft Pulp (BSKP) Unbleached Kraft Pulp (UKP) Mechanical
34%
1.000
2.000
3.000
4.000
5.000
6.000
(1) Market Share estimated considering 2010 estimated demand. (2) PYRY
Wood
393 296 266
118 133
Others
255
151
2493
147
243 155
238
284
104
102
22% 32%
10 million t
1 Market Share estimated considering 2009 nominal capacity 2 Source: Hawkins Wright Estimate 2Q10 3 Fibria 3Q10 Cash cost without downtimes
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Global Footprint
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, 65% of sales Over 20 years of relationship with many of the main clients Global contracts
P&W Specialty
18%
Tissue
25%
57%
Europe 41%
Hong Kong
Brazil 12%
Headquarters
Subsidiaries
Representative offices
NY004GAK_1.wor NY004GAK_1.wor
1
11
Modern Plants
Aracruz
Capacity: 2.300 Technical age: 9
Trs Lagoas II Trs Lagoas Capacity: 1.5 million t Forest base need: 150 thousand ha - TLS I surplus: 30 thousand ha Social-environmental licensing process initiated Startup expected for 2014
2.000
1.500
Jacare
Capacity: 1.100 Technical age : 5
1,500
(1)
10,650
1,500
Aracruz IV Losango
1,500
Trs Lagoas II Veracel II
Russia
USA
40
30
20
10
Veracel (1)
Capacity: 550 Technical age : 3
Brownfield
Greenfield
Expansion
12
3Q10 Financials
13
3Q10 Performance
Key figures
3Q10 Pulp Production (000 t) Pulp Sales (000 t) Paper Production (000 t) Paper Sales (000 t) 1,334 1,195 79 105 2Q10 1,208 1,253 79 87 3Q09 1,428 1,276 93 110 3Q10 vs 2Q10 10% -5% 20% 3Q10 vs 3Q09 -7% -6% -15% -5%
Net Revenue (R$ million) Adjusted EBITDA (R$ million) EBITDA Margin (%) Financ. Income (R$ million) Net Income (R$ million)
22%
27%
Europe
Brazil/Others
426
1Q10
Source: Fibria
2Q10
2Q10 w/ downtimes
2Q10
3Q10
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Debt
Debt indicators
Average maturity(2) (months)
75
(R$ million)
3Q10
2Q10
3Q09
70 52
4,7 3,9
Jun 10
(3) LTM
Sep 10
(1) Includes
(2) Does
EBITDA
5%
2.8 2.0 1.4 0.8 0.4 0.6 1.5 0.8 1.6 1.0 1.1 1.1 2.2
6% 36%
26%
14%
2009
2010
2011
2012
2013
4
2014
2015
2016-2020
Sep 09
(4)Amortization
Sep 10
Local
Foreign
15
Synergies
Net Present Value of Synergies (R$ billion)
Taxes
11% 16%
SG&A
23%
Forest
4.3
4.5
2.3
2012
2013
2014
16
17
Operating Excellence
Financial Turnaround
- EBITDA margin increased to 40% - One of the lowest cash costs in the industry:
US$249/t
- Synergies: R$2.4 billion (NPV) captured - Personnel, system and process integration
Liquidity event: Guaba Unit sale Access to capital markets Early settlement of derivatives debt Reduce leverage Extended debt maturities
Corporate Governance
Expansion
Migration to Novo Mercado segment Corporate Governance, Information Disclosure and Securities Trading policies approved by the Board Adoption of international accounting practices (IFRS) Included in the DJSI and ISI sustainability indexes Best IR program in the sector in Latin America by Institutional Investor Magazine 2010
Trs Lagoas II: start up slated for 2014 Veracel II: Negotiations with partner in progress
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Corporate Restucturing
19
Corporate Restructuring
Event Acquisition by VCP of additional 28% of Aracruz common shares VCP Capital Increase VCP conversion of prefered into common shares Tender Offer for Aracruz common shareholders Incorporation proposal for the 0.1347 ratio Merger of Aracruz shares into VCP approval Shareholderes Agreement - VID and BNDES End of withdrawal rights period End of Aracruz trading Fibria trading start (Bovespa: FIBR3 / NYSE: FBR) Approval of the merger of Aracruz into Fibria Migration to Novo Mercado listing segment at BM&FBovespa
Date Jan 20, 2009 Apr 14, 2009 Jun 12, 2009 Jul 02, 2009 Aug 24, 2009 Aug 24, 2009 Oct 29, 2009 Nov 12, 2009 Nov 17, 2009 Nov 18, 2009 Dec 22, 2009 May 20, 2010
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Investor Relations Team: Website: www.fibria.com.br/ir E-mail: ir@fibria.com.br Tel.: +55 (11) 2138-4565
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