May 2015

Corporate Presentation

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 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
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.

The Company

Shareholder Structure

Votorantim
Industrial S.A.
(1)

29.42%

BNDES
Participaes (1)

30.38%

Free
Float (2)

General
Meeting

40.20%
Fiscal
Council
20% independent
members
Role of CEO and
chairman is split

Board of
Directors

Listed on Novo Mercado, highest level at BM&FBovespa:

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

Finance
Committee

Statutory
Audit
Committee

Personnel and
Remuneration
Committee

Sustainability
Committee

Innovation
Committee

30%
independent
members

100%
independent
members

50% independent
members

45% independent
members

Policies approved by the Board of Directors:

Indebtedness and Liquidity
Market Risk Management
Risk Management
Corporate Governance

Financial Statements in International Standards IFRS

Related Parties Transactions

Adoption of Arbitration Chamber

Anti-Corruption

SEC Registered ADR Level III program

(1) Controlling group
(2) Free Float 40.14% + Treasury 0.06%

Information Disclosure
Securities Trading
Antitrust
Genetically Modified Eucalyptus

A Winning Player
Superior Asset Combination

Belmonte
Veracel
Caravelas
Portocel
Aracruz

Main Figures 1Q15 LTM

Pulp capacity

million tons

5,300

Net revenues

R$ billion

7.4

Total Forest Base(1)

thousand hectares

968

Planted area(1)

thousand hectares

561

R$ billion

9.0

2.3

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

Trs Lagoas

Jacare
Santos

Port Terminal

Pulp Unit

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

Fibrias Units Industrial Capacity

Trs Lagoas Mato Grosso do Sul 1,300 thousand t/year

Aracruz Esprito Santo 2,340 thousand t/year

Jacare So Paulo 1,100 thousand t/year

Veracel Bahia 560 thousand t/year *

* Veracel is a joint venture between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year

Fibrias Strategy

Leadership Position
Market Pulp Capacity Ranking 2014(2) (000t)

Industry Outlook(1)
Fiber Consumption
406 million t

59%

41%

Recycled Fiber
238 million t

Pulp
168 million t

18%

82%

Mechanical
30 million t

Chemical
138 million t

59%

41%

Integrated Mills
82 million t

Market Pulp
56 million t
54%

46%
Softwood/Other
26 million t

Hardwood
30 million t

33%

67%

Acacia/Other
10 million t

Eucalyptus
20 million t

74%
Other Eucalyptus
Pulp producers:
15 million t
(1)
(2)

5,300

Fibria
APRIL
Arauco
Suzano
CMPC
UPM-Kymmene
Georgia Pacific
Paper Excellence
Metsa Group
Stora Enso
Weyerhaeuser
Ilim
Eldorado
Mercer
Domtar
IP
Sodra
Resolute Forest
Canfor
ENCE
0
26%

Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Global 100 Report December 2014
Hawkins Wright Outlook for Market Pulp, December 2014

2000

4000

6000

Bleached Softwood Kraft Pulp (BSKP)

Bleached Hardwood Kraft Pulp (BHKP)
Unbleached Kraft Pulp (UKP)
Mechanical Pulp (MP)

Fibrias Commercial Strategy

Differentiation: Customized pulp products to specific paper grades

Sole supplier to key customers

Long term contracts

Competitive logistics set up

Fibrias Pulp End Use

Printing &
Writing
31%

Tissue
51%

Speciatilies
18%

42%
Europe

23%

Lustenau

N.America

25%
Asia

Miami

Hong Kong

10%
L.America

So Paulo

Fibrias Sales Distribution

Fibria s Offices

Source: Fibria 1Q15 LTM

Door to Door Operations

Pulp mill
Outbound
Logistics

Forest
Integrated logistics solutions
Low forest to mill average distance

Easy access to the most efficient

transportation network:
rail, barging and road

Portocel: specialized port for the

pulp and paper industry
Efficient Logistics Setup

Client

Port

Sea Freight

10

Pulp and Paper Market

Paper Consumption
CAGR 1996 2006
Developed Markets: + 1.7%
Emerging Markets : + 6.0%

117,611

CAGR 2007 2016

Developed Markets: - 4.0%
Emerging Markets : + 4.1%

114,507

85,291

P&W
Consumption
(000 tons)(1)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Developed Markets

Emerging Markets

CAGR 2007 2016

Developed Markets: + 1.4%
Emerging Markets : + 6.7%

CAGR 1996 2006

Developed Markets: + 2.4%
Emerging Markets : + 6.9%

37,474

26,877
15,548

Tissue
Consumption
(000 tons)(1)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Developed Markets
(1) Source:

RISI

Emerging Markets

Global Market Pulp Demand

Hardwood demand will continue to increase at faster pace than Softwood

Hardwood (BHKP) vs. Softwood (BSKP) (000 ton)

Demand growth rate

2014 - 2019 CAGR:

Hardwood: +2.5%
Softwood: +0.8%

000 ton

1999

2009

2019

Growth
19992009

Growth
20092019

Hardwood

16.3

24.8

33.6

52%

35%

Eucalyptus

6.0

15.9

23.9

165%

50%

Softwood

19.0

21.4

24.8

13%

16%

Market Pulp

35.3

46.2

58.5

40.000
35.000
30.000
25.000
20.000
15.000
10.000
5.000

Hardwood

Source: PPPC

Softwood

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

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

APP South
Sumatra(2)

1.000

1,8

BHKP prices - CIF Europe (US$/ton)

800

1,6

Rizhao

Maranho

Trs
Lagoas

700
APP
Hainan

600
500
400

Eldorado

Fray
Bentos
Mucuri
Veracel Nueva Aldea
Santa F

Valdivia

1,4

Montes
del Plata Guaba II

1,2

Klabin

1,0
Chenming
Zhanjiang

Kerinci
PL3

Capacity (000 ton)

900

2,0

0,8

APP Guangxi

300

0,6

Oji
Nantong

200

0,4

100

0,2

0,0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

(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

14

Capacity closures DO happen

Closures of Hardwood Capacity Worldwide

(000 ton)
-85

-105

-540

-445

-500

-750
-910
-1,085
-1,180
-1,260
2006

Source: PPPC and Fibria

(1)

As of April 2015

2007

2008

2009

2010

2011

2012

2013

2014

2015-2017 E

(1)

Among the industrys lowest cash cost producers

Total Cash Cost of BHKP delivered to Europe (US$/t)
Capacity
(k tons):

1,925

1,610

1,030

3,785

4,695

2,015

13,930

5,300

= 28,990

1Q15 net price:

US$ 560/t

70

W/K

87

Interest

105

44

453

64

72
419
351

China

Capex

27

USA

Canada

312

Indonesia

Cash Cost (US$/t)

286

Chile/Uruguay

Income Tax
SG&A
55

329

Iberia

207

199

Brazil

Fibria

Delivery (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, April 2015) | Fibrias 1Q15 considering a FX of R$/US$2.8737. | Brazil 2014 considering FX of R$/US$3.05.
Gray bar includes cash expenses as Interest, CAPEX, SG&A and Taxes (Source: RISI and Fibria).

Tissue Market
Per Capita Consumption of Tissue by Region, 2013(1)
Kg/capita/year

World Tissue Consumption, 1991-2013(1)

Million tons

35

LTM Growth of
+4.2%

30
30

25
24

25

20

Growth
Potential

20
15

15

15

15

10
12

10

5
1

0
N.
West Japan Oceania East LatAm
America Europe
Europe

(1) Source:

RISI

China

Africa

1991

1996

2001

2006

2009

2010

2011

2012

2013

N.America

W.Europe

E.Europe

L.America

Middle East

Japan

China

Asia FE

Oceania

Africa

Pulp Projects Backlog

Even though there is an extensive pulp projects backlog, there are important question marks regarding
new projects
Main Questions About Capacity

Minimum required return for new projects

Closures due to increasing costs worldwide, reduction of maintenance capex (higher technical age of recovery boilers) and
exchange rates
Fiber substitution: Softwood x Hardwood and Recycled x Virgin Fiber

Main Projects
Project

Country

Capacity

Timing

Status

CMPC Guaba II

Brazil

1.3 Mt

2Q2015

Confirmed

Klabin Paran

Brazil

1.5 Mt*

2Q2016

Confirmed

APP South Sumatra

Indonesia

1.5 Mt 2.0 Mt

4Q2016

Confirmed

Fibria Trs Lagoas II

Brazil

1.75 Mt

4Q2017

Confirmed

* 1.1 million tonnes of hardwood and 400 thousand tonnes of softwood

Financial Highlights

1Q15 Results
Net Revenue (R$ million)

Pulp Production and Sales (000 t)

1,381

1,410

2,001

1,997

4Q14

1Q15

1,291

1,277

1,229

1,188

1Q14

4Q14
Production

1Q15

1Q14

Sales

EBITDA (R$ million) and EBITDA Margin (%)

Cash Production Cost (R$/t)

524 549

1,642

548 572

472 472

42%

45%

906

50%

1007

679

1Q14

4Q14

Cash cost ex-scheduled downtimes

1Q15
Cash cost

1Q14

4Q14

1Q15

Indebtedness

Debt (US$ million) x Leverage (US$)

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

7.5
4.1

8.6

4.2

6.3
3.3

2.6

2.7

2.3

473

6.3

5.9
414

5.5
408

5.2

4.6

3.4

3.5

200

178

2014

1Q15
LTM

350
268

2.9 2.8

2009

2010

2011
Gross Debt

2012

2013

2014

Mar/15

2009

2010

2011

2012

2013

Net Debt

Free Cash Flow

Increase

Interest
Reduction

Cost of Debt
Reduction

This dynamics
creates a virtuous
cycle

(*) Considering the portion of debt in reais fully adjusted by the market swap curves of Mar. 31, 2015.

21

Debt Profile
Average Term: 54 months
Average Cost: 3.8% p.y.

Debt
Amortization
Schedule at

657

623
438

545
(revolver)

363

339

Mar/2015
(US$ Million)

241

(cash)

600

205
84

113

Liquidity

2015

2016
Pre-payment

Cost of Debt
Foreign Currency (% p.a.)

2017
BNDES

2018

2019
ECN

2020
ACC/ACE

2021
Voto IV

19

2022

2023

2024

Bond

Debt by Currency

6%

4.1%
3.8

Mar/14

Mar/15

94%
Local Currency
Foreign Currency

22

Net Results (R$ million) 1Q15

1,007
FX Debt

MtM

hedge
swap

ZCC

(1,685)
(123)

(44)

179

(85)

(22)

(566)

Others (1)

Net Income
(Loss)

deffered
current

(448)
Adjusted
EBITDA

(1)

FX Debt /

MtM

MtM Debt
Hedge

Operational
Hedge

Swap/ZCC
settlements

Net
Interest

Deprec.,
amortiz. and
depletion

643
Income
Taxes

Other FX and
monetary
variations

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

23

Investor Relations
E-mail: ir@fibria.com.br
Phone: +55 11 2138-4565
Website: www.fibria.com.br/ir