BofAML - Emerging Markets Corporate Conference

8/16/2019 BofAML - Emerging Markets Corporate Conference

1/84

BofAML - Emerging Markets Corporate ConferenceJune, 2016


2/84

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 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

company’s 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.

Disclaimer


3/84

3

Pulp and Paper Market2Financial and Operational Highlights3

Agenda

Company Overview

1

Expansion Project – Horizonte 24Dividends5Cost reduction initiatives andindustry statistics6


4/84

4

Company Overview


5/84

5

A Winning Player

Port Terminal Pulp Unit

Três Lagoas

Santos

AracruzPortocel

Caravelas

BelmonteVeracel

Jacareí

Superior Asset Combination Main Figures – 1Q16 LTM

Pulp capacity million tons 5.300

Net revenues US$ billion 2.930

Total Forest Base(1) thousand hectares 969

Planted area(1) thousand hectares 568

Net Debt US$ billion 2.897

Net Debt/EBITDA (in Dollars)(2) X 1.86

Source: Fibria

(1) Including 50% of Veracel, excluding forest partnership areas and forest bases linked to the sales of Losango and forest assets in Southern Bahia State; As of December 31, 2015.(2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.


6/84

6

Fibria’s Units Industrial Capacity

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


7/84

7

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 - 1Q16 End Use - 1Q16

42% 37%43% 43%

35% 36%46% 42% 39% 40%

47% 42% 42% 42% 46%

26%30% 22%

29%31% 31%

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

29% 17%

22% 25% 26%21%

25% 26% 26% 27% 24% 23% 26% 26% 25%20%

25%

10% 9% 10% 8% 9% 8% 10% 9% 10% 10% 10% 9% 8% 9% 12%

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Europe North America Asia Other

48%38%

14%

Printing &Writing

Specialties

TissueEurope46%

N.America

17%

Asia25%

LatAm12%


8/84

8

Pulp Supply Agreement: Puma Project

► Pulp volumes:► Minimum of 900 kt of hardwood for the first 4 years

► 75% of 900 kt for the fifth year (phase out 1)

► 50% of 900 kt for the sixth year (phase out 2)

► Selling price based on the average net price charged byFibria at the Port of Paranaguá (FOB Paranaguá)

► Sales destination: Globally, except for South America

► Operational startup: Mar/2016

► Agreement benefits:

Puma Project

Mutual value creation, with better servicing for both Companies customer’s base

Logistics and commercial

structure synergies;

Ensure sales volumes;

Ensure pulp market access with

Klabin brand.

Logistics and commercial

optimization and synergies;

Support customers’ growth and

enhance customers’ needs;

Potential development of new customers.


9/84

9Pulp and Paper Market


10/8410

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

2015…

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

1,232

1,450

-400

-315

-190

115

40

40

30

200

500

265

750

400


Net

Unexpected Downtimes

Ence 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


11/8411

… and so has been the price scenario

BHKP Delivered to Europe (USD/t)

735

721

709

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)


12/8412

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

1.7

2.4

6.3

World Euro Area USA China

2012 2013 2014 2015 2016


13/8413

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


14/8414

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

1,200

*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

1,200

1,165

-200

-120

-55

-90

-40

180

30

660

800


Net

Possible closures*

APRIL Kerinci

Verso Wickliffe

Woodland

Old Town (Expera)

APP South Sumatra

Altri Celbi

Klabin

CMPC Guaiba II

Positive Supply/Demand Balance!


15/8415

Shipments of Eucalyptus Pulp

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

Global Market BEKP Demand

Paper Capacity increase in China

2014 2015 2016

FORECAST REALIZEDPREVIOUSFORECAST

LATESTFORECAST

LATESTFORECAST

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 2,198

Source: Fibria and Independent Consultants

3M16 vs. 3MQ15(2)

(2) Source: PPPC Global 100 – March/2016

2M16 vs. 2M15(1)

100kt

-57kt

32kt

153kt

-28kt

285kt

7kt

73kt

202kt

3kt

Total NorthAmerica

WesternEurope

China Others

BHKP BEKP

1%

6%

-7% 2%1%

4%

7%13%

1% 0.2%

128kt

40kt

84kt

-7kt 11kt

216kt

64kt

114kt

12kt 26kt

Total NorthAmerica

WesternEurope

China Others

BHKP BEKP

(1) Source: PPPC Global 100 – February/2016

3%

7%

8%26%

6%

10%

-1%1% 1% 4%

6%


16/8416

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 average

technical age 12.3 years

Weighted average

capacity 1,350,000 t/a

Aracruz

Três Lago as

Veracel

Jacareí

WEAK

STRONGWeighted averagetechnical age 21 years

Weighted average

capacity 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

051015202530

Technical age, years

PM Capacity, 1000 t/a

0

100

200

300

400

500

600

700

800

900

1000

051015202530

Technical age, years


17/8417

Source: PPPC and Fibria

Closures of Hardwood Capacity Worldwide

(000 ton)

Capacity closures DO happen

-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)


18/8418

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

BHKPcapacity(000’ t)

Source: Hawkins Wright (Price Forecast April 2016) and Fibria’s 1Q16 Earnings Release -FX considered by the consultant at R$/US$3.54. H2 cash cost wasestimated according to weighted average cost, after mill balance, converted at R$/US$3.54. Includes energy sales.

460 428375 347

299 295217 183

131

87

55100

2549 60

5851

57

547

483 475

372

348 355

275

40

36

4

100

79

16

16

19

19

414

342

USA China Canada Iberia Indonesia Chile/Uruguay Brazil Fibria 1Q16 LTM Estimated Fibriaw/ H2 - 2021

Cash Cost (US$/t) Delivery CIF Europe

BHKP (US$/t)

Capex

1,130 2,075 1,095 2,290 3,420 4,915 15,275 Total: 30,200BHKP

capacity(000’ t)

SG&AIncome tax

InterestWK


19/8419

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 )

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

APP

Hainan

Veracel Nueva Aldea

Santa Fé

Mucuri

Fray

Bentos

Kerinci

PL3

Três

Lagoas

Rizhao

APP Guangxi

Chenming

Zhanjiang

Eldorado

Montes

del Plata

Maranhão

Guaíba II

APP South

Sumatra(2)

Klabin

Oji

Nantong

Horizonte II

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 (Feb/16) and RISI (Feb/16)(2) Partially integrated production.


20/84

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 – May 31st, 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

M a r - 1 6

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


21/8421

Lowest volatility among commodities

Source: Bloomberg – May 31st, 2016

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

2030405060708090

100110120130140150160170180190200210220

230

J a n - 1 2

M a r - 1 2

M a y - 1 2

J u l - 1 2

S e p - 1 2

N o v - 1 2

J a n - 1 3

M a r - 1 3

M a y - 1 3

J u l - 1 3

S e p - 1 3

N o v - 1 3

J a n - 1 4

M a r - 1 4

M a y - 1 4

J u l - 1 4

S e p - 1 4

N o v - 1 4

J a n - 1 5

M a r - 1 5

M a y - 1 5

J u l - 1 5

S e p - 1 5

N o v - 1 5

J a n - 1 6

M a r - 1 6

M a y - 1 6

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

105

193

90

75

3650

100 = January 1, 2012


22/84

The only commodity with lower volatility than FX

Historical Volatility of Commodities (US$)

Since January 1, 2009 up to May 31st, 2016

22

35%33%

32%

27%24% 24% 24% 23%

16% 14%

6%

Sugar WTI CrudeOil

Nickel Iron Ore Soy Copper LMEMetals

Ibovespa Cattle FX BHKP


23/8423Financial and Operational Highlights

E h 5% d i ti f th R l i EBITDA b d


24/8424

Each 5% depreciation of the Real increases EBITDA by aroundR$420m and FCF by R$550m

815

1,488

1,173 1,1531,295

1,185

1,560 1,558

2009 2010 2011 2012 2013 2014 2015 1Q16 LTM 2016 (e)

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 2.162.35

3.33 3.59 3.65(1)

456

670 639 581 610 572582 577 518(2)

29%

40%34% 36%

40% 39%

53% 53%

912 1,179 1,067 1,133 1,3111,344

1,951 2,071 1,891

(1) According to Focus Report (Br azilian Central Bank – May 27th, 2016) I (2) 2016 market consensus


25/84


26/84

Fibria Cash Production Cost(1) (US$/ton)

Consistentlycontrolling the

cashproduction

cost

26

Cash Production Cost in dollars saw a decrease over the past 7 years

231

264281

242

234 220

186 182

2009 (2) 2010 (2) 2011 2012 2013 2014 2015 1Q16LTM

(1) Constant Currency. (2) Excludes Conpacel


27/8427

Net Results (US$ million) – 1Q16

322

251

223

72

(24)

(114)

(188)(41)

AdjustedEBITDA

FX Debt MtMHedge

NetInterest

Deprec., amortiz.and

depletion

Taxes Others Net Income∆∆ (1)

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

Non-recurringeffects

current

deferred


28/84

Free Cash Flow(1)

28(1) Before expansion capex

US$ million

EBITDA Margin

Average FX

-256

-77

-7

125

29 77

194

84113

53

329

4

11151

103130

112

317225

158

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

34% 33% 28% 30% 37% 37% 41% 39% 39% 41% 42% 41% 35% 35% 45% 50% 50% 56%

1.60 1.63 1.80 1.77 1.96 2.03 2.06 2.00 2.07 2.29 2.27 2.37 2.23 2.27 2.55 2.87 3.07 3.54

54%

3.84

52%

3.90


29/8429

Free Cash Flow(1) – 1Q16 LTM

US$ million

(1) Not considering dividend payments, capexrelated to theHorizonte 2 Project andthe land acquisition in December 2015. Considers 1Q16 averageFX 3.5897.

(2) Not considering dividendpayments.

(3) Includes other financial results.

(4) Considering themarket cap. on March 31, 2015 correspondingto R$23.3 billion (US$7.3 billion).

1,555

863

403

(498)( 78 )

( 93 ) ( 20 ) ( 3 )

(460)

AdjustedEBITDA

Capex(ex-H2 project& land deal)

NetInterest

WorkingCapital

Taxes Others FCF(ex-H2 project& land deal)

CapexH2 &

land deal

FCF


30/84

30

ROE and ROIC (R$)

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

3.4%5.7% 6.2%

25.1% 25.3%

2012 2013 2014 2015 1Q16

6.9%9.2% 8.0%

22.8% 23.4%

2012 2013 2014 2015 1Q16

AverageFX

(R$/US$) 1.95 2.16 2.35 3.33 3.59 1.95 2.16 2.35 3.33 3.59AverageNet Price

(US$)

581 610 561 586 576 581 610 561 586 576

AverageFX

(R$/US$)

AverageNet Price

(US$)

Capital Structure: Fibria has achieved the lowest leverage ratio among


31/84

31

Capital Structure: Fibria has achieved the lowest leverage ratio amongits 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/Stable - Ba2/Positive

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

(1) Fibria’s historical data in BRL.

1.9

2.3

5.9

3,13,1

4.0

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Fibria Suzano Klabin CMPC Arauco Eldorado


32/84

32

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

(1) G-spread on May 25th, 2016

313 333 348 354 370 370 374

504 509

728751

BRFOODS FIBRIA EMBRAER BRAZIL GLOPAR SUZANO KLABIN BRASKEM VALE PETROBRAS GERDAU


33/84

33

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 1.86

Leverage(x)

6.3 5.95.5

5.24.6

3.4 3.3 3.4

473414 408

350268

200141 139

2009 2010 2011 2012 2013 2014 2015 1Q16

LTM

Interest Expense(US$ million)

Cost of debt (%)

BBB- BBB- Ba1


34/84

34

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

INDUSTRY

CONSOLIDATION ?

PULP

Growth with discipline

Best portfolio of projects

DIVIDENDS

BIO-ENERGY AND

OTHER OPPORTUNITIES

Complementary to pulp

Portocel

Land and forest

FREE CASH FLOW

WITHOUT JEOPARDIZING CREDITMETRICS


35/84

35BACK UP


36/84

36Expansion Project – Horizonte 2


37/84

37

• Follow the growth of strategic customers

• Developing new customers

• Distribution to new geographic markets

• Efficiency and competitiveness gains in logistics

• Higher quality in customer service

• Greater ability to capture new expansion market windows

• Strong M&A position

Competitiveness

Commercialpositioning

Long-term growthpotential

What is the importance of growth for Fibria?

• Wider fixed costs dilution

• Cost curve position improvement

• Greater bargaining power with suppliers


38/84

38

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 130 MWh

Start-up: 4Q2017

Capacity: 1.95 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

Lwart

Portucel Soporcel

Georgia-Pacific

Resolute

Verso

Nippon Paper

Mondi

Oji

MitsubishiMarubeni

IP

Altri

ENCE

Cenibra

Arauco

Stora Enso

UPM

Eldorado

APP

Suzano

RGE/APRILCMPC

Fibria 8,150

Current Capacity

New Capacity

New Capacity – Klabin Agreement

New Capacity – Horizonte II Project


39/84

39

Pulp sales destination: Fibria growing where the market grows

(1) Considers 1Q16 last twelve months. | (2) Includes Klabin’s sales volume

37%

36%

43%

24%

19%24%

8%9%

Total sales volume distributionafter H2 start up(2)

Current net revenue distribution(1)


40/84

40

Project schedule – on time, on budget

Startup

Utilities clearanceand commissioningL1 interconnections

during maintenancedowntime

Hiring of operationalteam

Negotiations withconcession holders and

Port of Santos tendering

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

2015 2016 2017

Beginning ofinfrastructure and

purchase of the TGs

Purchase of theindustrial plants

Beginning of construction

Beginning of assembly

Beginning of forest

machinery deliveries

Beginning ofharvest

Definition of outboundlogistics formats

Initial hiring of harvestworkers

i j i i


41/84

41

Horizonte 2 project – site overview

Fib i ’ d i l


42/84

42

Fibria’s production volumes

5,188 5,231 5,184 5,299 5,259 5,274 5,185

5,300 5,300 5,300 5,300 5,300

660

900 900 900 900 900

1,740 1,850 1,950 1,950 1,950

7,940 8,0508,150 8,150 8,150

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Current Production ('000 t) Klabin's Puma Project('000 t)(1) Horizonte 2 ('000 t)(1)

(1)

The volumes in 2016, 2017 and 2018 will depend on the learning curve of the plants. The agreement with Klabin may be renewed by mutual consent.

F t B


43/84

43

Forestry Base

Forestry base required:

H1: 120,000 ha

H2: 187,000 ha

Total: 307,000 ha

Average distance from forest to mill H1 + H2 -> up to 100 km (1st cycle)2nd cycle average distance should decrease due to less need for 3rd party wood

Logistics


44/84

44

Logistics

Mato Grosso

Mato

Grosso doSul

Goiás

Brasilia

Port Terminal 32

Capex


45/84

45

Update for the current FX level

1.80 1.84

0.65 0.45

0.050.10

2.52.4

Original Revised

BRL EUR USD and others

72%

26%

2%

77%

19%

4%

CAPEX (US$ billion)(1)

(1) FX: R$ 3.65/US$ | (2) As of April, 2016

There are opportunities for capex postponement, WITHOUT delay inthe project startup

Physical progress(2) = 32.5%Disbursed capex(2) = 15%

Capex


46/84

46

3%

60%

33%

3% 1%

2015 2016 2017 2018 2019 andthereafter

2%

50%

36%

9%3%

2015 2016 2017 2018 2019 andthereafter

7%

45%37%

7%4%

2015 2016 2017 2018 2019 andthereafter

Flexibility in the Timetable, without changing the start up date

2%

53%

41%

3% 1%

2015 2016 2017 2018 2019 andthereafter

Current

Original (May, 2015) Nov, 2015

Possible Scenario

= 93%

= 86%

Funding


47/84

47

gCost and maturity

Amortization Schedule (2) – 1Q16 Proforma with TLS II – US$ million

1Q16 1Q16 + H2

Average Cost (US$ p.a)(1)

Average Maturity (years)

3.4%

4.2

2.8%

4.7

H2

2.1%

5.8

(1) Considering swap curves. | (2) Debt FX 1Q16: 3.5589 / FX considering new funding for the TLS II Project: 3.5589

177289

529

951

440

641

161 147

742

135 123 10076

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

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

Funding


48/84

48

Sources – US$ million

(1) Working capital to be released in 2016 and 2017 in commercial deals with Klabin and shipping agreements. Main impacts over accounts payable and receivables.

0.6

0.20.2

0.4

0.4

0.6

2.4

BNDES CRA FDCO ECAs Export

pre-payment

Working capital

release(1)

Total

All funding is officially approved. BNDES, FDCO and ECAs will bewithdrawn according to capex execution

Investment Grade reaffirmed with stable outlook, despite the


49/84

49

sovereign downgrade

“Its robust performance should provide enough resources to fund the equity portionof its new pulp mill, Horizonte 2, and would help it to reduce leverage towards theend of 2017, when the new mill starts operations. We expect leverage metrics to

remain slightly under pressure this year due to the debt load from the investment. Butthese metrics should gradually decline in 2017 and 2018.”

“Leverage to Temporarily Increase: Fitch projects net leverage to remain below 2.5xduring the construction of the Três Lagoas mill, quickly declining to below 1.5x by the

end of 2018.”

(1) According to rating agency methodology

April, 2016

Feb, 2016

Fibria’s Cash cost (US$/t) – 2021 @ R$/USD 3 54


50/84

50

Fibria s Cash cost (US$/t) – 2021 @ R$/USD 3.54

183

13130

17 2 1 2

LTM 1Q16 Horizonte 2 Project Wood cost

reduction

Bleaching line B Maritime wood

shipping project

Others 2021

FX Sensitivity

FX Cash cost (US$/t)

3.20 144

3.40 136

3.54 131

3.65 128

3.90 120

Horizonte 2 project assumptions


51/84

51

(1) Includes chemical leasing and investments in order to increase capacity to 1,950 kt/year ([email protected]).(2) Estimated sustaining capex in perpetuity (FX @ 3.65).(3) Estimated weighted average cost, after mil l balance. Includes energy sales (FX @ 3.54).(4) Cash cost + freight + SG&A + Sustaining Capex + Interest + taxes (FX @ 3.54)

(5) 2016 market consensus.

UNIT R$ US$

Pulp production/year k tons 1,950 1,950

Expansion capex(1) $ billion 8.7 2.4

Expansion capex(1) $/t 4,481 1,229

Sustaining capex(2) $/t 206 58

Cash production cost(3) $/t 326 92

Energy surplus MWh 130 130

Project approval FX R$/US$ 2.80 -

All in cash cost (estimated range)(4) $/t - 250-300

Pulp price(5) $/t - 523

Free Cash Flow (estimated) $/t - 223-273

Payback period (estimated) years - 4.5-5.5

Horizonte 2 project assumptions

Final Remarks


52/84

52

Final Remarks

• Economies of scale

• Synergies with current operations

• Wood availability and low distance from forest to mill

• Fibria’s total energy surplus to be increased by 130 MWh

• Cash cost competitiveness

• Meet customers’ demand growth

• Attractive returns even in adverse scenarios of pulp price and BRL

• Solid financial profile


53/84

53Dividends

Policies approved by the Board of Directors


54/84

54

►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

Policies approved by the Board of Directors

Approval of Dividend Policy


55/84

55

Approval of Dividend Policy

►Proposed dividends based on cash generation, taking into considerationthe company’s strategic planning and in line with its policies, notably the

Indebtness and Risk Management policies.

►Preserving Investment Grade.

Commitment to Corporate Governance best practices.

Extraordinary dividend if Policy criteria are met.

Dividends


56/84

56

Dividends

Dividend yield as of Dec, 31, 2015 = 7.5% (R$) | 8.3% (US$)Dividend yield as of Dec, 31, 2014 = 11.6% (R$) | 8.7% (US$)

OGM: Dividend

distribution approval:

minimum compulsory

+ additional

April 28, 2015 May 14, 2015

Dividend Paymentof

US$49 million

EGM: Interim Dividend

Payment Approval

Nov. 30, 2015 Dec. 9, 2015

Dividend Paymentof

US$532 million

Oct. 22, 2015

Dividend Policy

Approval

April 27, 2016

Dec. 17, 2015

Dividend

distribution

proposal of US$78

million(2)

approved by the

Board of Directors

OGM approved

dividend distribution

of US$80 million(1)

(1.1% of dividend yield

as of Dec, 31, 2015).

Mid-May, 2016

Dividend payment of

US$80 million.

2015

2016

Mid-November, 2016

Extraordinary

dividend

appraisal

Mid-December, 2016

Extraordinary

dividend payment

(if approved)

(1) Considering March 7, 2016 FX – R$/US$3.7714

Dividends vs. Leverage


57/84

57

Dividends vs. Leverage

148

2,000

2.30

1.95

1.58

1.781.86

0,00

0,50

1,00

1,50

2,00

2,50

1Q15 2Q15 3Q15 4Q15 1Q16

Dividends (R$ million) Leverage (x)

Historical Dividend Yield(1)


58/84

58

Historical Dividend Yield

(1) Source: Bloomberg – Financial Analysis - Multiples

Considering

Market Capas of December,31st, 2015

Best dividend yields of 2015 among Brazilian corporate issuers


59/84

59

Best dividend yields of 2015 among Brazilian corporate issuers

Source: Economática – the dividend yield calculation considers share price at the beginning of 2015

Dividends pershare (R$)

Dividend Yield(%)

Cesp 4.85 20.78

Fibria 3.88 11.60

Santander BR 0.46 9.81

Qualicorp 1.89 7.02MRV 0.39 5.55

BBSeguridade 1.68 5.53

TelefBrasil 2.73 5.32

Natura 1.48 4.67

Braskem 0.61 4.64

CSN 0.41 4.48


60/84

60

Cost reduction initiatives and industry statistics

Structural Competitiveness


61/84

61

p

1. Third-party wood reduction

2. Forestry operations productivity

3. Industrial

NPV: US$0.4 billion

NPV: US$0.6 billion

NPV: US$0.1 billion

Total : US$1.1 billion



62/84

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

p y

Wood supply recovering to normal condition

► Peaking in 2016;

► Returning to 2012’s levels by the end of 2017;

► NPV of R$1.4 billion from peak to normalized level.

Estimated level for

2015

Third-party wood decrease will benefitopex and capex

62



63/84

► Most part of the standing wood was already paid

► Despite the higher forest to mill distance, the wood from Losango is less expensive than the

available wood from around Espírito Santo and Bahia States

► Positive impact over industrial costs due to better productivity

Losango

63



64/84

The distribution costs by classes help us to apply resources

in order to optimize wood production

10%

20%

40%

20%

10%10%

36%33%

15%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

01 - Diamond 02 - Gold 03 - Silver 04 - Bronze 05 - Lead

Current effective area Future effective area

y p p y

CLASSIFYING THE FOREST BASE BY CATEGORIES

Structural change improving competitiveness

64



65/84

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) and

EBZ(3)

2: Out of EPAs and

EBZ

MunicipalRestrictions

0: Total restrictions

1: Partial restrictions

2: No restrictions

EPA Altitude

0: Higher than1800m

1: Lower than

1800m

Urban Zones

0: Urban Zones

1: Outside urban

areas

Remnants of native

vegetation

0: Remnants areas

1: Outside remnants

areas

Possible Impediments

Possible combinations

X 0, 1 and 2, removed;

4 e 8, high potential(1) ConservationAreas

(2) EnvionmentalProtection Areas

(3) Environmental Buffer Zones

Identifying opportunities based on these combinations

65



66/84

Roads

Transportation

SilvicultureHarvest

Cost and Capex KPIs were also included in this geo-model

66



67/84

Mixed Harvest Mechanization (Hilly areas)

► Mixed cutting operation with high

demand for MO and high risk to safety;

► Harvest limitations in areas above

24 degrees;

► Increase annual capacity to harvest in

areas up to 35 degrees , previously "locked up" by

harvesting capacity of manual staff;

► NPV: R$71 million

► Capex: R$5 million

► Operational since Aug 2015

PROJECT DESCRIPTION (JACAREÍ UNIT)

Harvest

67



68/84

PIFF

► Freight cost reduction;

► Increased load box for timber/woodchiptransport

► Use of lightweight steel;

► Operational risk reduction (flipping);

► Investment: R$33 million


► Startup: 2015 / 2016

PROJECT DESCRIPTION (ARACRUZ, JACAREÍ AND TRÊS LAGOAS UNITS)

Timber transportation Woodchip transportation

Transportation

68



69/84

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



► Startup: Jan/2017

PROJECT DESCRIPTION (ARACRUZ UNIT)

Transportation

69

2 St t l h i f t ti d ti it


70/84

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

70

3 Ind strial maintenance do ntimes sched le change


71/84

3. Industrial: maintenance downtimes schedule change

► Regulatory Standard 13 (Boiler and Pressure Vessel Inspection) extended the maximum period between

recovery boiler inspections from 12 to 15 months.

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


71

3 Industrial: Biological Sludge Dryer


72/84

Biological Sludge Dryness Process

3. Industrial: Biological Sludge Dryer

► Variable cost reduction associated

with the disposal of sludge operations

in external landfill



► Startup: Dec./2016

PROJECT DESCRIPTION (JACAREÍ UNIT)

Operational Flow –

Conditioning and biological sludge burn

•00Effluent+Sludge

Aeration Tank

Biological

Sludge Tank

•00Biomass Pile

Sludge Dryer

Biomass

Boiler

Sludge drying and burn in biomass boiler

72

Fibria’s tax structure


73/84

73

Description and Amount Maturity

(a) Operating income As stated in the income statement

(-)(b) Goodwill (Aracruz

acquisition)

- Annual tax deduction: US$ 23 million (tax)

- Remaining Balance mar/16: US$ 0.216 billion (base) 2018

(-)(c) Forestry Capex in MSstate (net)

2016 tax deduction related to depletion: US$ 5.7 million Undefined

(+/-)(d) Exchange variation(cash)

---------- ----------

(+/-)(e) Other ---------- ----------

Tax base beforecompensations

(a) + (b) + (c) + (d) + (e)

(f) (-) Tax loss carryforward- Up to 30% of tax base before compensations

- Balance up to mar/16: US$ 50 million (base)

Undefined

(g) Tax base Tax base before compensations – tax loss carryforward (f) ----------

(h) Income tax Tax base (g) * 34% ----------

(i) (-) Federal tax credits(3)Balance mar/2016:

-PIS/COFINS: US$ 168 million

-Advanced tax payment (IR and CSLL): US$ 240 million

Undefined

Cash Tax Income Tax (h) – tax credits (i)

2010 2011 2012 2013 2014 2015 1Q16

US$ 9 million US$ 2 million US$ 8 million US$ 14 million US$ 12 million US$ 23 million US$ 1 million

TAX PAYMENT (cash basis)

(1) Considering FX 3.5589 | (2) Considering average FX for the period | (3) The company also has Reintegra credit, which impacts COGS – US$ 26 million

Leadership Position


74/84

74(1) FiberConsumption, Recycled Fiberand Pulp: RISI | Market Pulp, Hardwoodand Eucalyptus: PPPC Global 100 ReportDecember2015

Recycled Fiber

242 million t

46% 54%

59%

18% 82%

59% 41%

41%

30% 70%

25%75%

Fiber Consumption

412 million t

Pulp

169 million t

Chemical

140 million t

Mechanical

30 million t

Integrated Mills

83 million t

Market Pulp

57 million t

Hardwood

31 million t

Other Eucalyptus

Pulp producers:

16 million t

Softwood/Other

26 million t

Acacia/Other

9 million t

Eucalyptus

21 million t

Industry Outlook(1)

Global Market Pulp Demand


75/84

75

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


76/84

76

World Tissue Consumption, 1991-2013 (3)

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

24

15 15

12

7 65

1

N.

America

West

Europe

Japan Oceania East

Europe

LatAm China Africa

10% 10%12% 14%

21%

17%

22%23% 23%

24%25%

0

2

4

6

8

10

12

14

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Eucalyptus Hardwood Total % Compared to the global Market Pulp

(Kg/capita/year)

(million t) (kg/person/year)

Between 2005 and 2015,

the Chinese market share

of eucalyptus shipments

increased by 20 p.p. (total

market pulp: + p.p.)

0

5

10

15

20

25

30

35

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

LTM GrowthRate +4.2%

(1) PPPC – Pulp China – Flash Report – March 2016

(2) PPPC – W20. Coverage for chemical market pulp is 80% of world capacity

(3) RISI

(million t)

2.215

1.095

503 530

47 40 1

2.368

1.292

453 525

49 43 8

BHKP Total Latin

America (1)

Indonesia Others(2) USA Canada Western

Europe

1Q15 1Q16

Latin America is the

leading exporter of BHKP

to China, accounting to

approximately 55% ofChina's total imports in

1Q16.

(‘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)

Growth rate Chinese GDP vs. Eucalyptus Shipments to China


77/84

77

yp p(Sept-09 = base 100)

Source: Bloomberg and PPPC.

74

206

-

50

100

150

200

250

China GDP Eucalyptus Shipments

Commodities Differentiation


78/84

78

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

201194172

152

124115

Source: Itaú Macroeconomic Department and PPPC – Oct/15

Global Paper Consumption


79/84

79

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

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 1996 – 2006Developed Markets: + 1.7%Emerging Markets : + 6.0%

85,291

117,611

15,548

37,474

P&WConsumption(000 tons)(1)

TissueConsumption(000 tons)(1)

114,507

CAGR 2007 – 2016Developed Markets: - 4.0%Emerging Markets : + 4.1%



26,877

Source: RISI

Global Market BEKP Demand


80/84

80

Shipments of Eucalyptus Pulp

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

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

CAGR 2012-2015

3,787kt

387 kt662 kt

1,980 kt

758 kt

8%

7%3%

19%

6%

Total North America Western Europe China Others



81/84

81

S h i p m e n t s ( 0 0 0 t o n )

0

100

200

300

400

500

600

700

800

900

1000

0

100

200

300

400

500

600

700

800

900

m a i - 1 0

j u n - 1 0

j u l - 1 0

a g o - 1 0

s e t - 1 0

o u t - 1 0

o u t - 1 0

n o v - 1 0

d e z - 1 0

j a n - 1 1

f e v - 1 1

m a r - 1 1

a b r - 1 1

m a i - 1 1

j u n - 1 1

j u l - 1 1

a g o - 1 1

s e t - 1 1

o u t - 1 1

n o v - 1 1

d e z - 1 1

j a n - 1 2

f e v - 1 2

m a r - 1 2

a b r - 1 2

m a i - 1 2

j u n - 1 2

j u l - 1 2

a g o - 1 2

s e t - 1 2

o u t - 1 2

n o v - 1 2

d e z - 1 2

j a n - 1 3

f e v - 1 3

m a r - 1 3

a b r - 1 3

m a i - 1 3

j u n - 1 3

j u l - 1 3

a g o - 1 3

s e t - 1 3

o u t - 1 3

n o v - 1 3

d e z - 1 3

j a n - 1 4

f e v - 1 4

m a r - 1 4

a b r - 1 4

m a i - 1 4

j u n - 1 4

j u l - 1 4

a g o - 1 4

s e t - 1 4

o u t - 1 4

n o v - 1 4

d e z - 1 4

j a n - 1 5

f e v - 1 5

m a r - 1 5

a b r - 1 5

m a i - 1 5

j u n - 1 5

j u l - 1 5

a g o - 1 5

s e t - 1 5

o u t - 1 5

n o v - 1 5

d e z - 1 5

j a n - 1 6

f e v - 1 6

m a r - 1 6

a b r - 1 6

m a i - 1 6

B H K P p r i c e s - C I F C h i

n a ( U S $ / t o n )

(‘000s t)

China: Hardwood pulp shipments

2010

Average:

412 ktons

2011

Average

582 ktons

2012

Average

605 ktons

2013

Average

679 ktons

2014

Average

736 ktons

2015

Average

772 ktons

2016

Average

771 ktons

Source: PPPC Global 100



82/84

82

S h i p m e n t s ( 0 0 0 t o n )

0

100

200

300

400

500

600

700

800

0

100

200

300

400

500

600

700

800

900

m a i - 1 0

j u n - 1 0

j u l - 1 0

a g o - 1 0

s e t - 1 0

o u t - 1 0

o u t - 1 0

n o v - 1 0

d e z - 1 0

j a n - 1 1

f e v - 1 1

m a r - 1 1

a b r - 1 1

m a i - 1 1

j u n - 1 1

j u l - 1 1

a g o - 1 1

s e t - 1 1

o u t - 1 1

n o v - 1 1

d e z - 1 1

j a n - 1 2

f e v - 1 2

m a r - 1 2

a b r - 1 2

m a i - 1 2

j u n - 1 2

j u l - 1 2

a g o - 1 2

s e t - 1 2

o u t - 1 2

n o v - 1 2

d e z - 1 2

j a n - 1 3

f e v - 1 3

m a r - 1 3

a b r - 1 3

m a i - 1 3

j u n - 1 3

j u l - 1 3

a g o - 1 3

s e t - 1 3

o u t - 1 3

n o v - 1 3

d e z - 1 3

j a n - 1 4

f e v - 1 4

m a r - 1 4

a b r - 1 4

m a i - 1 4

j u n - 1 4

j u l - 1 4

a g o - 1 4

s e t - 1 4

o u t - 1 4

n o v - 1 4

d e z - 1 4

j a n - 1 5

f e v - 1 5

m a r - 1 5

a b r - 1 5

m a i - 1 5

j u n - 1 5

j u l - 1 5

a g o - 1 5

s e t - 1 5

o u t - 1 5

n o v - 1 5

d e z - 1 5

j a n - 1 6

f e v - 1 6

m a r - 1 6

a b r - 1 6

m a i - 1 6

B H K P p r i c e s - C I F C h i n a ( U S $ / t o n )

(‘000s t)

China: Eucalyptus pulp shipments

2010

average:

250 ktons

2011

Average

379 ktons

2012

Average

370 ktons

2013

Average

439 ktons

2014

Average

504 ktons

2015

Average

538 ktons

2016

Average

567 ktons

Source: PPPC Global 100

Global BHKP Market Pulp Supply Cost Curve


83/84

83Source: Pöyry.

COST CURVE EVOLUTION

U S D / A d t ,

2 0 1 3 c o s t l e v e l

Cumulative Capacity Million t/a

Cost positionof marginal

producer

Current Zero Cost Collars


84/84

Notional (Total):US$ 1,395 million

2T16 3T16 4T16 1T17 2T17 3T17 4T17 1T18 2T18

ZCC (Notional em USD MM) 50 185 295 216 174 135 190 105 45

Forward* 3,57 3,64 3,73 3,82 3,90 3,98 4,06 4,14 4,21

Put 3,25 3,31 3,36 3,52 3,57 3,64 3,67 3,62 3,64

Call 7,04 6,30 6,62 5,80 6,22 7,17 7,12 5,50 5,73

Documents

BofAML - Emerging Markets Corporate Conference