Corporate Presentation Setembro 2T10

8/4/2019 Corporate Presentation Setembro 2T10

1/23

1

Corporate PresentationSeptember 2010


2/23


3/23

Agenda

The Company

Market Positioning

Pulp and Paper Market

3

2Q10 Financials

Corporate Restructuring


4/23

4

The Company


5/23

VCP and Aracruz merged to create Fibria

Shareholder Structure

VotorantimIndustrial S.A.

BNDESPar Free Float

29.34% 30.42% (1) 40.17%

Treasury

0.07%

5

Veracel CeluloseS.A.

50.0%50.0%

Conpacel

(1) Position as of August 31, 2010. BNDESPar has 21% linked to a shareholders agreement with VID during the first 3 years, and 10.9% during the following 2 years.


6/23

Improved Corporate Governance

Board Advisory CommitteesBoard of Directors

Audit and Risks

Personnel and Remuneration

Alexandre Gonalves Silva Indicated by Votorantim

Alexandre Silva DAmbrosio Indicated by Votorantim

Armando Mariante Carvalho Junior Indicated by BNDES

Eduardo Rath Fingerl Indicated by BNDES

6

Finance

Sustainability

Joo Miranda Indicated by Votorantim

Jos Armando de Figueiredo Campos Independent Member

Jose Luciano Penido Chairman of the Board

Raul Calfat Indicated by Votorantim

Wang Wei Chang Indicated by Votorantim


7/23

7

Market Positioning


8/23

Creation of a Winning Player

Competitive Strengths

Pulp Mill

Paper 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., Canada

and Scandinavia

AracruzPiracicabaJacareiSantos

Trs LagoasConpacel

Data as of June 30, 2010.

(1)Does not include partnership program which represents 127 thousand ha.

Unique ForestryManagement:

Advanced ForestryTechniques and

Short Harvest Cycle

Forest to PortIntegration TroughEfficient Logistics

Strong / ReliableCustomer Base

Modern IndustrialPlants


9/23

1.5

Unique Brownfield Potential Growth

Fibria has the Best Sites Ready to Almost Duplicate Capacity

Historical and Planned Capacity Increase

Aracruz IV

Best sites for additional capacity (mt)

AracruzCapacity 2.3 mtTechnical age: 9

Average Plant Capacity(000 tons)

2.500

2.000Trs Lagoas

i

5.3

9

Veracel II

Trs Lagoas II

Losango I

Brownfield Brownfield Greenfield Brownfield

Source: Fibria

1.500

1.000

500

40 30 20 10

Russia

Japan

USASweden

CanadaPortugal

FinlandFranceSpain

ChileSouthAfrica

China

Brazil

Indonesia

Uruguay

Technical age of equipment (years)

.Technical age : 0

JacareCapacity 1.1 mt

Technical age : 5

VeracelCapacity 1.1 mt

Technical age : 3

Capacity 1979 - 2009 CAGR: 3.6% Expansion

0.8

1.5

1.5


10/23

Undisputable Leadership in the Global Market Pulp

Pulp Production Capacity

2009E in ktons

5,400

Dominant Position in a Growing Market

1o

~ TwiceThe size

10Source: PYRY, 2007 / As for Market Pulp: Pulp and Paper Products Council (PPPC) 2009 and Fibria.(1) Market Share estimated considering 2009 nominal capacity.


11/23

2,44

2,18

Low Production Cash Cost DNA

Cash Costs (2)Fibria's Margin vc Macroeconomic Fundamentals (1)

583

641

705

783

565

920

Average PriceBHKP (US$/ton) (1)

149

314

225185

242 250 246

168129 105

296

119

201239

176 139 118

127

118 145

433 426 424 418445

389364

295

247 250

11

1,951,84

2,00

1,80

(2) Source: Hawkins Wright Estimate 2Q10 (3) Fibria 2Q10 Cash cost without downtimes

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

US$/ton

Capacidade (kT)

Exchange Rate Average(RS/US$)(1)

1.013 1.115880

2.196

1.697

730

35%

38%

34%

37%

28%

40%

2005* 2006* 2007* 2008 Pro

Forma

2009 2Q10

(1) Average Price: FOEX | Exchange rate: Brazilian Central Bank

EBITDA Margin

EBITDA (R$ million)

Wood Others

Iberia

0

100

200

300

400

500

600

0 2.000 4.000 6.000 8.000 10.000 12.000

Iberia

250


12/23

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 sales

P&W

Tissue

Specialty

Uses of Fibrias Pulp 2Q10

Europe

53%26%

21%

12

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 2Q10.

North America27%

Asia24%

Brazil11%

Beijing

Switzerland

SalesDestination (1)

Miami Hong Kong

Hungary

Subsidiaries Representative officesHeadquarters


13/23

13

Pulp and Paper Market


14/23

Positive Commodity Cycle and Demand Recovery

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

91%89%

82%

86%

83%

79%

90%

77%

88%

92%

97%

86%

95%

92%93%

95%

90%

92%

90%

86%

98%

91%

95%

87%87%

92%

89%

87%

97%

92%

85%

78%76%

79%79%77%

73%

79%79%78%

89%87%

86%

81%79%

88%87%

86%87%87%

14

Jun-0

8

Ju

l-08

Aug-0

8

Sep-0

8

Oc

t-08

Nov-0

8

Dec-0

8

Jan-0

9

Fe

b-0

9

Mar-

09

Apr-

09

May-0

9

Jun-0

9

Ju

l-09

Aug-0

9

Sep-0

9

Oc

t-09

Nov-0

9

Dec-0

9

Jan-1

0

Fe

b-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

Jun-0

8

Ju

l-08

Aug-0

8

Sep-0

8

Oc

t-08

Nov-0

8

Dec-0

8

Jan-0

9

Fe

b-0

9

Mar-

09

Apr-

09

May-0

9

Jun-0

9

Ju

l-09

Aug-0

9

Sep-0

9

Oc

t-09

Nov-0

9

Dec-0

9

Jan-1

0

Fe

b-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

World pulp consumers' days of supplyWorld pulp producers' average days of supply

Source: PPPC Global 100

Source: PPPC Global 100 Source: PPPC Global 100

Source: PPPC Global 100

1915

20

25

30

35

Mar-

05

Oc

t-05

May-0

6

Dec-0

6

Ju

l-07

Fe

b-0

8

Sep-0

8

Apr-

09

Nov-0

9

Jun-1

0

25

10

20

30

40

50

60

Mar-

05

Oc

t-05

May-0

6

Dec-0

6

Ju

l-07

Fe

b-0

8

Sep-0

8

Apr-

09

Nov-0

9

Jun-1

0


15/23

Pulp Supply x Demand Balance Expected to Remain Tight

China: Eucalyptus pulp shipments ('000 t)Market pulp: world demand growth

246264

196204161

128151

268

495

296

356

518

412

340355350363

293266

331

280

210

276267

191235251

1%

12%10%

19%16%

-26%

Average

235ktons

Average

347 ktons Average

238 ktons

15

Apr-

0

May-0

8

Jun-0

Ju

l-0

Aug-0

Sep-0

Ou

t-0

Nov-0

Dec-0

Jan-0

Fe

b-0

9

Mar-

09

Apr-

0

May-0

9

Jun-0

Ju

l-0

Aug-0

Sep-0

Oc

t-0

Nov-0

Dec-0

Jan-1

Fe

b-1

0

Mar-

10

Apr-

1

May-1

0

Jun-1

Announced list pulp priceEurope list price

Source: Fibria

Source: PPPC Global 100 Source: PPPC Global 100

Source: FOEX

Total North America Europe Latin America Japan China

6M2010 x 6M2009

Successive announcements of list price increases (as ofAugust/2010)

North America: US$900/t

Europe: US$870/t

Asia: US$800/t

840

920

350

450

550

650

750

850

950

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Jul/10


16/23

16

2Q10 Financials


17/23

2Q10 Performance

Pulp sales mixKey figures

2Q10 1Q10 2Q09 2Q10vs1Q102Q10

vs2Q09

Pulp Production (1000t) 1,208 1,314 1,334 -8% -9%

Pulp Sales (1000t) 1,253 1,322 1,349 -5% -7%

Paper Producton (1000t) 79 77 94 3% -16%

Paper sales (1000t) 87 83 104 6% -16%

Net Revenue (R$ million) 1,809 1,675 1,471 8% 23%

Adjusted EBITDA (R$ million) 730 637 389 15% 87%

EBITDA Margin % 40% 38% 26% 2 p.p. 14 p.p.

21%

32%

37%

9%

2Q09

27%

39%

23%

11%

1Q10

North America Europe Asia Brazil/Others

27%

38%

24%

11%

2Q10

17

EBITDA (R$ million) and EBITDA Margin (%)Cash cost (R$/t)

389

637

730

2Q09 1Q10 2Q10

Financial Income (R$ million) (315) (341) 1.369 - -

Net Income (R$ million) 130 9 920 1,341% -86%

26%

38% 40%

418

499

440

1Q10 2Q10 2010E

449

2Q10 w/

downtimesSource: Fibria


18/23

Debt

Debt indicators

(R$ million) 2Q10 1Q10 2Q092Q10 vs

1Q102Q10 vs

2T09

Gross Debt 13,209 13,540 16,145 -2% -18%

Cash 2,364 2,684 2,953 -12% -20%

Net Debt 10,846 10,856 13,192 - -18%

47

6270

2Q09 1Q10 2Q10

(1)Does not include the debt to former Aracruz shareholders

Average maturity(1) (months)

7.2

5.6

.4,7

Jun-09 Mar-10 Jun-10

Net Debt / EBITDA(2) (x)

(2)Last 12 months EBITDA

18

Debt amortization schedule (R$ billion) Debt by currency and type

1.6

4.6

2.1

1.41.7 1.7

1.1

1.9

1.1

1.9

0.91.3

1.8

1.2

5.1

2009 2010 2011 2012 2013 2014 2015 2016-2020

Jun-09 Jun-10

29%

71%

Gross debt by currency

Local Foreign

(1) Amortizationschedule as of Jun/2009(2) Amortizationschedule as of Jun/2010

(1) (2)

37%

27%

13%

14%

3%6%

Gross debt by type

Pre-payment Bonds

Former Aracruz shareholders BNDES

NCE Others

Short-term debt:

from 34% in Jun/09

to16% in Jun/10


19/23

Synergies

Net Present Value of the synergies (R$ billion)

2 3

3,4

4,24,3

4,52Q10 status:108% of the

projected curve

27%21%

2%

Industrial

Supply Chain

Others

2.0

19

Accumulated Estimated

0.5

1.4

dec/09 2Q10 dec/10 2011 2012 2013 2014

23%16%

11%

ForestrySG&A

Tax0.5


20/23

Growth

5.4

0.8

1.5

1.5

1.5 10.7

Veracel IITrs Lagoas II

Losango

Aracruz IV

Capacity expansion (million t) Status of expansion projects

Trs Lagoas II

Capacity: 1.5 million tons

Forest base:

- Need: 150,000 ha-TLS I surplus: 30,000 ha

- Leasing: 45,000 ha in 2010

20

Fibria 2010 Brownfield Brownf ield Greenfield Brownfield Fibria 2025

20

Social-environmental licensing process initiated

Feasibility study to start in 2011

Startup slated for 2014

Veracel II

Capacity: 1.5 million tons

Negotiations with partner in progress


21/23

21



22/23


Event Date

Acquisition by VCP of additional 28% of Aracruz common shares Jan 20, 2009

VCP Capital Increase Apr 14, 2009

VCP conversion of prefered into common shares Jun 12, 2009

Tender Offer for Aracruz common shareholders Jul 02, 2009

Incorporation proposal for the 0.1347 ratio Aug 24, 2009

22

,

Shareholderes Agreement - VID and BNDES Oct 29, 2009

End of withdrawal rights period Nov 12, 2009

End of Aracruz trading Nov 17, 2009

Fibria trading start (Bovespa: FIBR3 / NYSE: FBR) Nov 18, 2009

Approval of the merger of Aracruz into Fibria Dec 22, 2009

Migration to Novo Mercado listing segment at BM&FBovespa May 20, 2010


23/23

2323

Investor Relations Team:

Joo Elek IRO

Andr Gonalves General Manager

Fernanda Naveiro Vaz

Anna Laura Linkewitsch

Roberto Costa

Email: [email protected]

Documents

Corporate Presentation Setembro 2T10