1

FIBRIA APP IS AVAILABLE FOR DOWNLOAD AT APPLE STORE AND GOOGLE PLAY

WELCOME TO THE 3RD FIBRIA INVESTOR TOUR

2

DISCLAIMER

3

The information contained in this presentation may include statements which constituteforward-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 respectto business, financial, trend, strategy and other forecasts, and are based on assumptions, dataor 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 beconfirmed.

Prospective investors are cautioned that any such forward-looking statements are notguarantees 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 thecompany’s filings with the CVM and SEC.

The company does not undertake, and specifically disclaims any obligation to update anyforward-looking statements, which speak only for the date on which they are made.

Fibria’s Team

4

Marcelo Castelli, CEO

Aires Galhardo, Forestry

Guilherme Cavalcanti, CFO & IRO

Henri Philippe, Comercial & International Logistics

Paulo Silveira, Industrial & Engineering

Executive Officers

Paulo Gaia, General Manager

Industrial Operations

Caio Zanardo, General Manager

Forestry Operations

André Gonçalves - General Manager

Camila Nogueira

Roberto CostaRaimundo Guimarães

Investor Relations

Geraldo Magella - Manager

Patricia Bahry

Nanci Contarini

Corporate Communication

Technology Center

Fernando Bertolucci, General Manager

Cesar Bonine, Manager

Gabriel Dehon, Manager

Paulo Pavan, Manager

Robert Sartorio, Manager

Accounting

Arvelino Cassaro, Manager

Treasury

Marcelo Habibe, General Manager

David Alegre, Manager

Governance, Risks and Compliance

Everson Bassinelo, General Manager

M&A

Vinicius Nonino, Officer

Supply Chain

Wellington Giacomin, Officer

AGENDA

5

• 08:30 a.m. – Registration

• 09:00 a.m. – Financial Strategy |Guilherme Cavalcanti

• 09:45 a.m. – Operational Risk Management – Industrial - Fibria Case|FM Global

• 10:30 a.m. – Forestry Capex | Aires Galhardo

• 11:15 a.m. – Climate Change | Fernando Bertolucci

• 12:00 p.m. – Q&A

• 01:40 p.m. – Lunch

• 02:50 p.m. – Departure for the Igaratá watershed (1:40h)

• 04:30 p.m. – Arrival and visit to the Igaratá watershed

• 06:00 p.m. – Departure for São Paulo

Financial StrategyGuilherme Cavalcanti - CFO

6

THE MATURITY OF SYNERGIES CAPTURED SINCE FIBRIA’S

CREATION IMPROVED ITS OPERATING INDICATORS…

7

PRODUCTION VOLUME (000 t)BEST PRACTICES AND OPERATING STABILITY

CASH COST (R$/ton)

SG&A (R$ million)STRUCTURE AND PROCESS SIMPLIFICATION

EBITDA (R$ million) - EBITDA MARGIN (%)

4,600

5,0545,184

5,299 5,271 5,253

2009* 2010* 2011 2012 2013 2Q14 LTM

432 448 471 473 505 519

656 624 596549 545

2009* 2010* 2011 2012 2013 2Q14 LTM

Historical Value Inflation Effect**

593 594 605 584648 645

900826 766 678 699

2009* 2010* 2011 2012 2013 2Q14 LTM

Historical Value Inflation Effect**

1,522

2,526

1,964 2,253

2,796 2,857

2009* 2010* 2011 2012 2013 2Q14 LTM

29%

40%34% 36%

40% 40%

* Excludes Conpacel | ** Inflation effect calculated by the IPCA (Consumer Price Index)

+14% -21%

-28%

NO EXPOSURE TO THE RISK OF ELECTRICITY SHORTAGES,

IN SPITE OF WHICH THE COMPANY HAVE BENEFITED

FROM THE SALE OF SURPLUS ENERGY

8

Utilities results boosted by energy sales(2Q14: R$ 36/t I 1Q14: R$ 18/t I 2Q13: R$ 14/t)

546

559

14

13

5 4

(27) 4

2Q13 Maintenance

downtimes

Wood FX Maintenance Utilities Others 2Q14

LTM inflation (IPCA): 6.5%

LTM average FX: 7.9%

+ 2.2%

STRONG FLEXIBILITY AND STRUCTURAL ENERGY

GENERATION SURPLUS OF 60 MW

9RB: Recovery Boiler (Total: 7) | PB: Power Boiler (Total: 6) | TG: Turbo Generator (Total: 13)

Aracruz

RB

RB

RB

PB

PB

TG

TG

TG

TG

TG

TG

CAPITAL STRUCTUREFIBRIA HAS THE LOWEST LEVERAGE RATIO AMONG ITS LATIN

AMERICAN PEERS

10

Net Debt/EBITDA (x)(1)

Fibria Arauco CMPC Klabin Suzano

S&P BB+/Positive BBB-/Stable BBB-/Stable BBB-/Stable BB/Negative

Moody’s Ba1/Positive Baa3/Negative Baa3/Negative - Ba2/Stable

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

(1) Fibria’s historical data in BRL. | (2) Market consensus.

2.4 2.3 2.4

4.84.5

4.0

1.7 1.7

2.6

2.9 3.1

3.83.6 3.7

3.2

14.813.2

11.7

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 2014

Fibria Suzano Klabin CMPC Arauco Eldorado

2

CONTINUATION OF THE LIABILITY MANAGEMENT PLAN,

ALSO FOCUSING ON IMPROVING MATURITIES…

11

December 2013

June 2014

Cost of debt: 3.8%

Average maturity: 52 months

Land Deal

Bond buyback: Fibria 2020,

2021 and VOTO IV

Fibria 2024 issuance

Bank loans renegotiations

Lower cost of debt

Smoother debt amortization

schedule

NPV of all initiatives:US$270 million

1,064

384 530 750 554 634

2,020

1,341

-

410

450 299

506422 128

149

100

1,473

834 829

1,255

976 762

2,168

1,441

264

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Cost of debt: 4.6%

Average maturity: 52 months

Local CurrencyForeign Currency

Local CurrencyForeign Currency

855

314 451831 778 790

371 31811

1,302

213

459 318

524437

133

174 135

37 6

1,068

773 769

1,3551,215

923

545 453

48 6

1,302

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

… BUT THE INITIATIVES HAVE NOT FINISHED, THERE ARE

CERTAIN ONGOING NEGOTIATIONS THAT WILL IMPROVE

FIBRIA´S DEBT PROFILE EVEN FURTHER

12

Revolver

Liquidity 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Others ACC/ACE ECN BNDES Bond Pre-payment

Cash

R$1 billion

Average Term

From: 52 months | to: 54 months

Average Cost

From: 3.8% | to: 3.7%

A CONSISTENT AND DISCIPLINED APPROACH FOCUSED

ON REDUCING DEBT AND ITS COST

13

Gross Debt (R$ million) x Leverage Interest (R$ million) x Leverage

14,985

8,4578,606

3,840

6.3

3.6

4.8

3.42.8 2.3

Debt (R$) Debt (US$) Leverage (x)

946

528473

230

6.35.9

5.55.2

4.6

3.8

Interest (R$) Interest (US$) Cost of Debt (%)

Free Cash Flow Increase

Reduction in interest

Reduction in Cost of Debt

This creates a

virtuous cycle

2009 2010 2011 2012 2013 Jun/14 2009 2010 2011 2012 2013 2Q14LTM

NEW ISSUANCE BETTER PRICED THAN

INVESTMENT GRADE ISSUERS

14

As of Sep 01, 2014

Rating Maturity Volume T-Spread Coupon

Fibria Ba1 / BBB- / BB+ 2024 US$ 600 MM 275 bps 5.25%

Braskem Baa3/BBB-/BBB- 2024 US$ 500 MM 340 bps 6.45%

Petrobras Baa1/BBB/BBB 2024 US$ 2.5 bi 350 bps 6.28%

BNDES Baa2/BBB-/ 2024 US$ 500 MM 362 bps 6.32%

Klabin BBB-/BBB- 2024 US$ 500 MM 269 bps 5.25%

Odebrecht Baa3/BBB/BBB 2029 US$ 500 MM 263 bps 5.25%

Secondary Market

Rating Maturity Volume T-Spread Yield

Fibria Ba1 / BBB- / BB+ 2024 US$ 600 MM 277 bps 5.158%

Braskem Baa3/BBB-/BBB- 2024 US$ 500 MM 300 bps 5.353%

Klabin BBB-/BBB- 2024 US$ 500 MM 287 bps 5.289%

Odebrecht Baa3/BBB-/BBB 2029 US$ 500 MM 251 bps 5.103%

Petrobras Baa1/BBB/BBB 2024 US$ 2.5 bi 254 bps 4.908%

Gerdau Baa3/BBB-/BBB- 2023 US$ 750 MM 260 bps 4.873%

GROSS CAPACITY ADDITION SHOULD NOT BE REGARDED

AS THE ONLY FACTOR INFLUENCING PULP PRICE

VOLATILITY…(1)

15

List Price bottoming at US$650/t in 2011 and US$726/t in 2014

BH

KP

pric

es

-c

ifEu

rop

e (

US$

/to

n)

Gre

en

fie

ld c

ap

ac

ity (

00

0 t

on

)

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Jul/2014) and Brian McClay (Jul/14)

(2) Partially integrated production

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

VeracelNueva Aldea

Santa Fé

Mucuri

FrayBentos

KerinciPL3

Três Lagoas

Rizhao

APP Guangxi

ChenmingZhanjiang

EldoradoMontes del Plata

Maranhão

Guaíba II

APP South Sumatra(2)

Klabin

CAPACITY CLOSURES DO HAPPEN

16

Closures of Hardwood Capacity Worldwide (000 ton)

-910

-85

-1,260

-1,180

-540-500

-105

-1,085-1,030

2006 2007 2008 2009 2010 2011 2012 2013 2014-2016 E

as of

Aug14

Source: PPPC and Fibria

LOWEST VOLATILITY AMONG COMMODITIES

17

Commodities Historical Volatility (US$)(1)

38%

32%30%

26% 25%

21%

26%

7%

Sugar Iron Ore WTI Crude

Oil

Soy LME Metals Ibovespa Cattle FOEX PIX

BHKP

(1) Since 2009

562

844810

751791

752

FX AND PULP PRICE EXPLAIN 80% OF FIBRIA’S

EBITDA MARGIN

18

1,522

2,526

1,964 2,253

2,796 2,857

2009 (1) 2010 (1) 2011 (1) 2012 2013 2Q14 LTM

29%

40%34% 36%

40% 40%

EBITDA(R$ million)

EBITDA Margin

Average PriceFOEX (US$/t)

2.00 1.76 1.67

1.95 2.16

2.30

Exchange Rate Average (R$/US$)

Each 10% depreciation of the Real increases EBITDA by 24%

FIBRIA DELIVERS ONE OF THE INDUSTRY’S

HIGHEST EBITDA/T AND FCF/T

19

Free cash flow - 2Q14 LTM (R$ Million)

2,857

1,125(1,409)

(386)

111

(20) (28)

Adjusted EBITDA Capex Interest

(paid/received)

Working Capital Taxes Others Free Cash Flow

Free Cash Flow per ton - 2Q14 LTM (R$/ton)

544

214 (268) (74)

21

(4) (5)

Adjusted EBITDA Capex Interest

(paid/received)

Working Capital Taxes Others Free Cash Flow

AMONG THE INDUSTRY’S LOWEST CASH COST

PRODUCERS

20Source: Hawkins Wright (Outlook for Market Pulp, July 2014) | Fibria’s 2Q14 considering a FX of R$/US$2.23.

Gray bar includes cash expenses as Interest, CAPEX, SG&A and Taxes (Source: RISI and Fibria).

531 493 490 457408 444 420 442 424

340 322 344 315258 251

4870 43 69

122 35 86 40 43

42 55 49 68113

70

50

141

20

Cash Cost (US$/t) Delivery (US$/t)

628 614 6032Q14 net price

US$ 559/t

Positive Working

Capital: US$44/t

SG&A

Capex

Interest

Interest

Capacity(k tons):

660 595 1,775 585 565 355 1,005 2,410 1,960 1,095 7,450 = 31,930330 3,680 4,165 5,300

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

EXCHANGE RATE DRIVERS

21

International Market

• Recovery of the US economy.

• Carry-trade: Selic (11% p.a.) versus Fed Funds (0.25% p.a.) + Brazilian Central Bank Swaps.

Domestic Market

• Balance of payments: current account deficit financed by capital account.

• Deterioration of the public accounts: reduction in the primary surplus.

• Crisis in Argentina: reduction in Brazilian exports.

• Decline in industrial production

BRL DEPRECIATION IS A MARKET CONSENSUS THAT CAN

BE CONFIRMED THROUGH THE BROADER SPREAD

BETWEEN FX CALL/PUT OPTIONS

22

Put x Call x Spot

1,50

2,00

2,50

3,00

3,50

4,00

Jan/12 Oct/12 Dec/12 Feb/13 Apr/13 Jun/13 Aug/13 Oct/13 Dec/13 Apr/14 Jun/14 Aug/14

Put option Call Option BRL spot

NDF notional reduction and increase in zero cost collar operations followed by a BRL depreciation

REAL EXCHANGE RATE HAS NOT REFLECTED DOMESTIC

/FOREIGN INFLATION DIFFERENTIAL OVER TIME(Base 100 = Jan 2002)

23

217

94

0

30

60

90

120

150

180

210

240

jan

/02

ab

r/0

2ju

l/02

ou

t/0

2ja

n/0

3a

br/

03

jul/

03

ou

t/0

3ja

n/0

4a

br/

04

jul/

04

ou

t/0

4ja

n/0

5a

br/

05

jul/

05

ou

t/0

5ja

n/0

6a

br/

06

jul/

06

ou

t/0

6ja

n/0

7a

br/

07

jul/

07

ou

t/0

7ja

n/0

8a

br/

08

jul/

08

ou

t/0

8ja

n/2

00

9a

br/

09

jul/

09

ou

t/0

9ja

n/1

0a

br/

10

jul/

10

ou

t/10

jan

/11

ab

r/1

1ju

l/11

ou

t/1

1ja

n/1

2a

br/

12

jul/

12

ou

t/1

2ja

n/1

3a

br/

13

jul/

13

ou

t/1

3ja

n/1

4a

br/

14

jul/

14

IPCA BRL/USD

FIBRIA HAS THE SIMPLEST AND MOST

TRANSPARENT CALL IN THE INDUSTRY

24

Negative Neutral Positive

Pulp supply ✔

Closures/conversions ✔

Inefficient capacities in China ✔

Demand ✔

Mature markets ✔

China ✔

Pulp price ✔

Brazil GDP ✔

Energy crisis ✔

FX ✔

Capex inflation ✔

Cost inflation ✔

Rating ✔

Corporate Governance ✔

ROE and ROIC

25

RETURNS MAY CONCEAL

MISLEADING INFORMATION, SOME

OF WHICH WE WILL TRY TO ADDRESS

When dealing with return metrics like ROE

and ROIC, it is advisable to be aware of the

following:

26

• Brazilian and US peers are not comparable:

- USGAAP does not call for revaluation of biological assets;

• Within the commodity sector, there are differences related

to the accounting treatment of certain information under

IFRS (e.g. biological assets in the mining sector vs forestry

products);

- IAS 41 states that biological assets should be measured at

the fair value;

• Business combination (IFRS 3) had an additional impact

on companies that have undertaken M&A transactions

since 2009 – Fibria's Case.

- IFRS 3 considers the fair value of the assets acquired.

WHEN LOOKING AT BLOOMBERG, ROE DUPONT

ANALYSIS SAYS THAT....

Net Margin

48.9%

9.6%

-14.8%-11.3% -10.1%

7.3%

2009 2010 2011 2012 2013

2014LTM

Net Margin = Net profit / Net revenues

Asset Turnover

23.2%

20.1% 20.1%

22.0%

25.2%

27.0%

2009 2010 2011 2012 2013

2014LTM

Asset Turnover = Net revenues / Average Assets

Total Leverage

2.14

2.05

1.941.89

1.851.78

2009 2010 2011 2012 2013

2014LTM

Total Leverage = Average Assets/ Average Equity

ROE

24.4%

4.0%

-5.8% -4.7% -4.7%

3.5%

2009 2010 2011 2012 2013

2014LTM

ROE = Net Profit / Average Equity

27

WHY SHOULD YOU NOT USE NET

PROFIT OR OPERATION PROFIT AS A

PROXY FOR FIBRIA’S ROE AND ROIC?

There were others, but the main

accounting/non-cash items that led Fibria to

present net loss in recent years are:

28

• FX translation of dollar denominated debt at BRL

financial statements

• Depreciation, depletion and amortization

IMPACT OF THE FX VARIATION ON NET INCOME

(ACCOUNTING ONLY) HAS DRIVEN THE NET LOSS IN THE LAST

FEW YEARSSince the Company is not subject to any material refinancing risk, the exchange rate variation on dollar denominated debt has an even minor relevance

29

R$ million 2010 2011 2012 2013 2014LTM1

Operating Profit 1,589 730 937 1,535 1,584

Net Financial Result (364) (1,869) (1,696) (2,054) (1,064)

Foreign Exchange Variation - Debt 331 (1,036) (804) (910) 5

Bond Repurchases/Other (261) (176) (247) (429) (579)

Interest (732) (660) (683) (576) (528)

Net Income (Loss) 529 (868) (698) (698) 522

2010 2011 2012 2013 Jun/14

Year End Exchange Rate 1.67 1.88 2.04 2.34 2.20

1 - As of June 30, 2014

CAPEX (INDUSTRIAL AND FORESTRY) VS. DEPRECIATION,

DEPLETION AND AMORTIZATION

30

1,416

1,078

1,2871,409

1,884 1,848 1,862 1,863

2011 2012 2013 2Q14LTM

CAPEX Depreciation, Depletion and Amortization

(R$ MILLION)

CAPEX (INDUSTRIAL AND FORESTRY) VS. DEPRECIATION,

DEPLETION AND AMORTIZATION(R$ MILLION)

31

1.416

1.078

1,2871.409

1.884 1.848 1,862 1.863

2011 2012 2013 UDM 2Q14

CAPEX Depreciation, Depletion and Amortization

Industrial: R$330 million

Forestry: R$957 million

In the following slides we will show the main factors behind the reconciliation of the

capex and depreciation, depletion and amortization in the 2013 income statement

FORESTRY CAPEX VS. DEPLETIONR$ million (2013)

32

957

631

580

(65)

165

102

(20)

329

97

66893

975

Forestry Capex

2013(1)

Expansion(2) Sustaining Forestry

Capex 2013

Fair value - IAS 41

(Biological Asset)(3)

Other Total Depletion

2013(3)

Forestrymanagement

Forestrypurchase

Forestry Partnership

Historical

Depletion

IAS 41 and

IFRS 3Depletion

ForestryPartnershipDepletion

1. Includes Forestry Partnership - According to notes 18 and 22 (Additions – 2013 Financial Statements)

2. According to 4Q13 Earnings Release – Capital Expenditures

3. According to note 18 and 22 (2013 Financial Statements)

INDUSTRIAL CAPEX VS. DEPRECIATION

/AMORTIZATION

R$ million (2013)

33

1. According to note 19 (2013 Financial Statements)

2. According to 4Q13 Earnings Release (Capital Expenditures)

3. According to 2013 cash cost breakdown – 14% for maintenance

330 322

908

(8)

380

190 17

Industrial Capex

2013(1)

Expansion(2) Sustaining Capex

2013

Maintenance

OPEX(3)

IFRS 3 Depreciation Other Total Depreciation/

Amortization 2013

WHY SHOULD YOU NOT USE NET INCOME OR OPERATING

PROFIT FOR THE ROE AND ROIC CALCULATION?

34

We recommend using a proxy for the net income or operating profit that

eliminates the already mentioned non-cash items, resulting in a metric that would

capture a cash approach

ROEAdj. Ebitda – Total Capex –

Interest – Taxes

Shareholders Equity

ROICAdj. Ebitda – Total Capex –

Interest – Taxes

Invested Capital

Worth mentioning that any capital gains from land sales would be captured by operatingprofit (EBIT), so when using “Adj. EBITDA – Capex”, we are not capturing the return on land

sale, as in the case of Parkia deal in 2013 (capital gain before taxes: R$ 800 million)

Land sold to Parkia represented 38% of Fibria’s own land in December, 2013.

Invested Capital = Account receivable + Inventories + current liabilities + fixed assets + Biological Assets

SUBSTITUTING NET INCOME AND ADJUSTING EQUITY TO

GIVE A CASH-BASED RETURN ON EQUITY

35

Adj. EBITDA – CAPEX – Interest – Taxes(R$ million)

-558

918

121

640

1,020 1,042

2009 2010 2011 2012 2013 2014 LTM

Including capital

gains from the land

sale in 2013, ROE

for that year would

have been 15%

Shareholders Equity (R$ million)

8,109 10,571 10,880 10,417 10,035 10,254

2.520

4.669 4.089 3.760 3.447 3.213

2009 2010 2011 2012 2013 2014 LTM

Shareholder Equity Before IFRS IFRS 3

ROE = (Adj. Ebitda – CAPEX – Interest - Taxes) / Equity before IFRS

-6.9%

8.7%

1.1%

6.1%

10.2% 10.2%

2009 2010 2011 2012 2013 2014 LTM

CASH ROE, BEFORE IFRS

36

ROE = Net Income / EquityROE = (Adj. Ebitda – CAPEX – Interest - Taxes) /

Equity before IFRS

24.4%

4.0%

-5.8%-4.7% -4.7%

3.5%

2009 2010 2011 2012 2013

LTM

2014

-6.9%

8.7%

1.1%

6.1%

10.2% 10.2%

2009 2010 2011 2012 2013

LTM

2014

...AND THE SAME APPLIES TO THE ROIC

37

Invested Capital = Account receivable

+ Inventories + current liabilities + fixed

assets + Biological Assets

37

Adj. EBITDA – CAPEX – Interest – Taxes(R$ million)

Invested Capital (R$ million)

-558

918

121

640

1,020 1,042

2009 2010 2011 2012 2013 2014LTM

Including capital

gains from the land

sale in 2013, ROIC

for that year would

have been 11%

ROIC = (Adj. Ebitda – CAPEX – Interest - Taxes) / Capital Employed before IFRS

-2.9%

5.1%

0.8%

4.2%

7.2% 7.3%

2009 2010 2011 2012 2013 2014LTM

19,21617,951 15,227 15,068 14,106 14,265

2,133 2,0361,940 1,833 1,573 1,532

1,512 1,263931 874 693 695

2009 2010 2011 2012 2013 2014 LTM

Invested Capital Before IFRS IFRS 3 IAS 41

CLOSING REMARKS

38

• Net income should be considered as a reference for dividend purposes

only, not for return metrics;

• Most of the difference between capex and depreciation/depletion

explained by accounting factors generated by IFRS;

• Positive evolution of Fibria’s ROE and ROIC in recent years.

Operational Risk Management The FM Global approach

FM GLOBAL BY THE NUMBERS

40

~3,000 total clients

310 clients in Brazil

178 years

31 years in Brazil

US$ 5.6 Bn premium p.a.

US$ 10.3 Bn surplus

AA Fitch

A+ AM Best

THE FM GLOBAL DIFFERENCE

41

ENGINEERING1800 field engineers

Single

focus on

Property

Mutual

OwnershipMembership

credits

Administration

and Claims

RESEARCH CAMPUS - FM GLOBAL

42

NORTH AND SOUTH AMERICA MARKET SHARE

4343

Pulp Capacity Recovery Units Paper Capacity

69%

FM Global Others

65%

FM Global Others

64%

FM Global Others

WHAT DO THESE COMPANIES HAVE IN COMMON?

44

A CLEARLY DEFINED PATH TO HPR

45

1. Process commitment

2. Management interest

3. Investment commitment

4. Engineering support

5. Continuous improvement

FM GLOBAL RELATIONSHIP TENURE (IN YEARS)

127

123

113

111

90

76

65

12

31%

25%

20%

24%

0 - 5 years 5 -10 years 10 -15 years > 20 years

FM Global Client Average

46

HPR – HIGHLY PROTECTED RISK

47

PREVENTION HPRPROTECTION

CAPACITY

US$ 15 million HPR location: US$1 billion

RISK POTENTIAL

48

Initial risk

Magnitude($)

Pro

ba

bili

ty

Maximum Foreseeable Loss

(MFL)

Prevention

Protection

HPR

49

Production

Time

$

$

Normal Activities

Loss

Disruption

Production

Adequate protection(HPR)

HPR BENEFIT

50

0,8 1,55,1

22,0

Average Loss Cost (US$ million) Average days to resume production

HPR Non HPR

Source: FM Global clients history 2000 - 2010

51

And if there is a loss?

PULP AND PAPER LOSSES – BY PERIL

52Source: Loss history – 10 years | FM Global clients

35%

22%

12%

9%

8%

8%6%

Mechanical breakdown

Fire

Natural Catastrophe

Other

Collapse

Pressude vessel

Electrical failure

Fibria and FM Global partnership

ACCOMPLISHMENTS

12 Years of Partnership

275 Recommendations completed

252 Field Engineering Visits

10 Visits per year with Fibria’s Management

52

MEMBERSHIP CREDIT ($USD MILLION)

54

237

316355

380420

465

2001 2004 2007 2010 2013 2014

Fibria

Membership

Credit

$ 2,440,000

55

How close is Fibria to being fully HPR?

56

HPR BENEFITS

57

• Maintain strong revenue streams

• Superior risk management

• Reduce production volatility

• Promote operational stability

• Meet customer needs and reliability

• Preserve reputation

PROTECT FINANCIAL RESULTS

IMPROVE COMPETITIVENESS

FORESTRY CAPEXAires Galhardo – Forestry Operations

58

CAPITAL EXPENDITURE

59

Maintenance

Fertilizer

PesticidesForestry protection

Soil preparation

Seedling

159%

224%

35%

44%

53%

63%

72%

Planting or

sprouding

Harvesting

and

logistics

Opex

The information contained herein is for the exclusive use of Fibria Celulose SA, and may not be transferred without authorization from the Company.

Base date: July, 2014. It does not include depreciation.

CAPITAL EXPENDITURE

60

Maintenance

Fertilizer

PesticidesForestry protection

Soil preparation

Seedling

159%

224%

35%

44%

53%

63%

72%

Planting or

sprouding

Harvesting

and

logistics

Opex

The information contained herein is for the exclusive use of Fibria Celulose SA, and may not be transferred without authorization from the Company.

Base date: July, 2014. It does not include depreciation.

FIBRIA INFLATIONFOCUS ON ALWAYS REMAINING BELOW THE

IPCA/INCAF

61

Index 2007=100

100

120

140

160

2007 2008 2009 2010 2011 2012 2013 2014 RF

• Labor

• Fertilizers

• Pesticides

• Fuel

• etc…

INCAF - Brazilian Wood Cost Index

FIBRIA - Fibria Wood Cost Index

IPCA - Brazilian Inflation

MAINTENANCE CAPEX(R$ MILLION)

1,416

1,078

1,208

1,520

2011 2012 3Q13 LTM Land Deal:

Rural

Partnership

Non recurring

wood

purchase

Inflation FX Rate Modernization Others 2014E

62

NON RECURRING WOOD IMPACTS ON CASH

COST AND CAPEX

63

The wood impact should take 2-2.5 years when then it will become again to normal levels

Aracruz Unit:

• Non recurring increase in third party wood due to: 1) Limited investments in 2008-2009 due to financial crisis 2) Higher volumes of matured wood from partnership program3) Physiological disturbance in southern Bahia (controlled impact)

Três Lagoas Unit:

• Increase in higher mill to forest distance under partnership program contracts in Mato Grosso do Sul, in order to supply the original start-up of Três Lagoas II (2014).

Jacareí Unit:

• 2-year increase in partnership program in São Paulo.

WOOD PURCHASING

64

0%

5%

10%

15%

20%

25%

30%

35%

40%

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

In 2008/2009, in an effort to reduce costs, we

emphasized the cutting of our own wood and

stopped purchasing contracted forest fostering wood.

• 35% of third party wood supply in 2015

• This percentage will start reducing in 2016 reaching

a long-term third party wood rate of 8%

MAINTENANCE CAPEX(R$ MILLION)

1,416

1,078

1,208

1,520

2011 2012 3Q13 LTM Land Deal:

Rural

Partnership

Non recurring

wood

purchase

Inflation FX Rate Modernization Others 2014E

65

FORESTRY CAPEX – FIBRIA STRATEGY TO SEEK

OUT BASE PARTNERSHIPS FOR WOOD SUPPLY

66

0,0

0,5

1,0

1,5

2011 2012 2013 RF2014

R$

millio

n

Operating Cost Wood Purchases/Leasing Parkia Roads Sustaining Other

OPERATING COSTSSTABILITY THROUGH IMPROVED MANAGEMENT

AND INNOVATION

67

Effective investment per

hectare remains in line with

the strategy of controlling

inflation

R$/ha

1,006 960 995 1,052

100.0% 95.4% 98.9% 104.6%

2011 2012 2013 RF2014

R$/ton

96 94 98 101

FOREST OF THE FUTURE2014 ACHIEVEMENT OF 83% OF THE CUMULATIVE CURVE

68

A NEW OUTLOOK A NEW MANAGEMENT MODEL

69

NEW SELF-PROPELLED PESTICIDE APPLICATION

TECHNOLOGY

70

• 30% of area cleaning operating

cost in Bahia

• 85 % machines for this operation

• 62 % of personnel in this

operation

• Annual CAPEX savings of R$ 4.6 million

• NPV - R$ 35.6 million

COMBINED ACTIVITIESOPTIMIZATION OF THE MAINTENANCE AND LOGISTICS

SUPPORT STRUCTURE

71

Tillage FertilizationBasin

Irrigation

Pre-

emergent

Annual CAPEX Savings R$ 1.8 million

NPV - R$ 16 million

SUSTAINING FORESTRY

72

This account also peaked in these years due to the replacement of machines

at Três Lagoas

In an effort to reduce the impact, we introduced the Skidder model in 2014,

reducing the fleet from 5 Clambuncks to 3 Skidders

4.18

2.64

75

120

Before After

Cost (R$/m³) Productivity (m³/h)

73

FIBRIA FORESTRY IMPLEMENT PROJECT (FFIP)

FIBRIA FORESTRY IMPLEMENT PROJECT (FFIP) REQUIRED PATENT

74

• Reduce the structural weight of the implement by 15%

• Increase the volumetric capacity of the cargo box by 10%, through the use of differentiated materials

• Savings of R$2.80/m³

54.649.7

56.562.1

Conventional FFIP

#trips/month/truck Cargo box/truck

ALIGNMENT

75

• Average Projected Annual Increase at 7 years,

base Commercial Volume with Bark

• MAI7 INV: MAI Inventory – Last measurement projects

• Only plantations over 2 years old are measured (< 2012)

Tip

Bark

Stump

Parameters (references):

• MAI7tot (cc)*: 100%

• MAI7com (cc)*: 95%

• MAI7com (sc)**: 84%

• Bark: 11 – 12%

Forecast Chart

Analyzed Variable

Age (years)

MAI: Mean Annual Increment Pulp Planting

*With bark ** Without bark

FIBRIA MAI

76

40

33

36

39

42

45

FIBRIA MAI7

2007 2008 2009 2010 2011 2012 average

m³

cc

/ha

.ye

ar

Harvest Year

MANAGEMENT OF COMPLEXITY WITH

COMPETITIVE DIFFERENTIAL

77

Integrated Strategic Planning

UN’sMax value

FIbriaM&A

GAP/Surpluswood

SupplyStrategy

ForestryManagemen

t

FOCUS ON STAKEHOLDERS

Digestor

FOCUS ON THE CLIENT

What / when to

harvest?

What / when and

how to transport ?

Where / what type

of management to

adopt?Clones/IMACEL

Road Plan

Supply Plan Harvest PlanTransport

PlanSilviculture

PlanNursery Plan

Long

Mid

Short

78

• 3 production units

• 27,000 plots of land

• 500,000 hectares of planted

area

• 3 transport modes +

transhipment of wood (hubs

and deposits)

Base Multipurpose Forestry Matrix

• Proof of IMACCEL gains

• Enhancement of land flows

• Insertion of biomass module and the possibility of sending wood to the

biomass unit

Maximize the Company’s value

Minimize CAPEX

Minimize OPEX

Partnership withcompanies

Managementrecommendation

Acquisitions anddivestments

Operational strategydefinition

New businessesanalysis

LONG TERM PLANNING Be prepared for market dynamics

WE REMAIN CONFIDENT IN MAINTAINING

FORESTRY COSTS BELOW INFLATION

79

FORESTRY HARVEST LOGISTICS

Increase operational productivity through new

technology

Forestry Nano-Planning –Using spatial variability in our

favor to maximize the productivity of each site

Use of larger marchines Lighter trucks with greater load capacity

Maintain operational excellence

OPERATIONAL PROCESSES

The next phase of the “Forest of the Future” will be proposed for 2015 to 2018

CLIMATE CHANGE AND ITS EFFECTS ON EUCALYPTUS PLANTATIONS: Turning adversity into a competitive advantage

Fernando Bertolucci – Technology Center

Climate ChangeAn overview

The Fibria ApproachDimensions of analysis, resources and tools

Impacts of climate change on

eucalyptus plantations

Actions to improve adaptation and

the mitigation of risks

81

Climate ChangeAn overview

The Fibria ApproachDimensions of analysis, resources and tools

Impacts of climate change on

eucalyptus plantations

Actions to improve adaptation and

the mitigation of risks

82

CLIMATE CHANGE - an overview

Main Observed Indicators of a Changing Global Climate

Northern Hemisphere Spring Snow CoverA

Figuras © IPCC 2013

Artic Summer Sea Ice ExtentB

Change in Global Average Upper Heat ContentC Global Average Sea Level ChangeD

84

CLIMATE CHANGE - an overview

Simulation: average of several models for different scenarios by 2100

© IPCC 2013 Pictures

Changes in average temperature in relation to current

Changes in average rainfall in relation to current

Least drastic scenario Most drastic scenario

85

CLIMATE CHANGE - an overview

Global warming is

an unequivocal

fact:

the surface of the earth has been successively warmer over the past

three decades than it has during any decade

since 1850

Concentrations of

CO2 have

increased 40%since pre-industrial

times

There is a clear

human impact on

the climate

86

CLIMATE CHANGE - an overview

86

The impacts are clear: Ex. Mountain Pine Beetle

A necessary condition for natural

pest (larvae) control: -30°C

temperature for at least five

calendar days

Milder winters, previously

uncommon:

• Expansion of pests

• Epidemics, unprecedented damage

Area affected (USA/CANADA):

over 20 million ha.

87

HOW HAS FIBRIA

APPROACHED

THIS ISSUE?

UNDERSTANDING THE BASICS

88

Physiological Processes Robust Databases

UNDERSTANDING THE BASICS

89

Phenotype (F) Genotype (G) Environment (A) GxE

SP

MS

ES and BA

“Open-air laboratories” ($$)

• Sensors and equipment

• Specialized field teams

• Partnerships with Universities

and Research Institutes

23,000 “planting blocks”:

• Very diverse environments

• Different growth potentials

• Specific needs

MONITORINGSTUDIES

DIMENSIONS OF ANALYSIS

90

TREE(TECHS)

PLANTATION(FLUX TOWERS)

LANDSCAPE(WATERSHEDS)

Different Scales

RESOURCES AND TOOLS USED - TREE LEVEL

91

TECHS: Tolerance of Eucalyptus Clones to Hydric and Thermal Stress

25 COMPANIES / 8 UNIVERSITIES

CONNECTION BETWEEN FORESTRY, ECOPHYSIOLOGY AND BREEDING

7 climate types

Annual rainfall: 800 to 2600mm

EXCLUSION OF RAIN:

+ variability

RESOURCES AND TOOLS USED - TREE LEVEL

92

Stomatal

conductance

Measurements

photosynthesisRespiration

Gas exchange

Leaf water

potential

Sap flow

Leaf area

index

Leaf area index

Leaf and tree

transpiration

RESOURCES AND TOOLS USED

93

PLANTATION LEVEL

Flow towers

• Second-by-second measurements of climate and plant growth

• Balances of carbon, water and energy, as well as the efficient use of these resources #

• Modeling the processes that control growth

# Eddy-covariance methodology

RESOURCES AND TOOLS USED

94

LANDSCAPE LEVEL

Watershed Studies (validated):

• Monitoring of the main components of the water, carbon and nutrient cycles

RunoffWater tableRainwater interception

RESOURCES AND TOOLS USED: SUMMARY

95

Flow Towers (Eucalyptus, Cerrado, Grassland)6

Intensely Monitored Watersheds7

Fibria Autmatic Weather Stations55

APPLYING EXPERTISE

96

VALUE ADDED TO BUSINESS

MODELING

Adaptado de PMS Instrument Company

Humidity

TemperatureRadiation

Wind

Transpiration

Leaf area

Photosynthesis

Growth

Nutrition

Humidity

FertilityTexture

Temperature

Soil type

Environmental conditions

Gross primaryproduction

LAI

CO2

Interceptedlight

Photosynthesis

Light interception

T, VPD,H2O, N

Net primaryproduction

Respiration

Climate

and soil

condition

Stem RootsLeaves

FROM UNDERSTANDING PHENOMENA TO GROWTH MODELS (SIMULATIONS)

3-PGPhysiological Principles Predicting Growth

Climate ChangeAn overview

The Fibria ApproachDimensions of analysis, resources and tools

Impacts of climate change on

eucalyptus plantations

Actions to improve adaptation and

the mitigation of risks

97

IMPACTS OF CLIMATE CHANGE

98

Changes in weather patterns

Variation in rainfall patterns in Espírito Santo (1968 to 2010)

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

196

8

196

9

197

0

197

1

197

2

197

3

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

rainfall (mm)

Reduced rainfall and increased amplitude (extreme weather)

IMPACTS OF CLIMATE CHANGE

99

Reduced rainfall vs. forest productivity

Productivity Simulation

Historical Average 2003 (dry year)

CLIMATE CHANGE IMPACTS

100

The impact of increased CO2

Several Studies

Ex.:

• The Hawkesbury Forest Experiment

• University of Western Sydney (Australia)

Effects of increased atmospheric CO2 on plants:

• Stimulation of photosynthetic activity – increased carbohydrates, accelerating the growth of the crowns and stems, leading to greater productivity.

• Reduction in stomatal conductance – less use of water positive impact on the amount of water that flows into rivers and streams, as well as recharging the water table.

CLIMATE CHANGE IMPACTS

101

Compensation for the increase in CO2

HISTORICAL PRODUCTIVITY PRODUCTIVITY 2030 PRODUCTIVITY 2050

Meteorological and eco-physiologicalmodels (simulations) indicate potential productivity

gains in areas currently used by Fibria

Note: 3 global models (HAD, CSIRO, PCM); change in precipitation, VPD and temperature, 4 IPCC scenarios (A1, B1, A2, B2)

Climate ChangeAn overview

The Fibria ApproachDimensions of analysis, resources and tools

Impacts of climate change on

eucalyptus plantations

Actions to improve adaptation and

the mitigation of risks

102

ADAPTATION AND RISK MITIGATION ACTIONS

103

• Areas with environmental restrictions, especially with limitations on the availability

of water, will be needed to meet the future demand for wood (a global issue)

• In this context, considering its 20 years of research into the issue, Fibria has

intensified its actions to adapt to this new situation, turning a potential problem

into an opportunity to generate a competitive advantage

ADAPTATION AND RISK MITIGATION ACTIONS

104

1 2

3 4

5 6

Detailed soil and climatic classification and mapping of all of our planting areas

Evaluation of traditional genetic material (urograndis) under water stress - clonal tests and

experiments in climatic extremes

Introduction of species with a tolerance to water

stress

Environmental change simulations and evaluations of the risks of Eucalyptus pests and diseases

Mapping and monitoring of exotic pests and disease

Genetic transformation of Eucalyptus for greater tolerance to climatic extremes

ADAPTATION AND RISK MITIGATION ACTIONS

105

Ex.: CLONAL TEST IN MONTEZUMA MG (650 mm of rainfall per year) – 5

years old

Clone A Clone D

Clone IMA4m3/ha.yr

A 43.6

B 40.3

C 39.7

D 39.5

E 38.1

F 37.3

G 37.1

H 34.8

FINAL MESSAGE: THE POSSIBILITIES FOR OUR FUTURE

106

A NEW BALANCE DEPENDS ON RESPECT FOR NATURAL RESOURCES

Technological Level x Wood productivity (m3/ha.year)

0

10

20

30

40

50

60

70

Historical Actual Potential

DEFINING FACTORSClimate

(water, temperature, sunlight and CO2)

LIMITING FACTORSSoil, nutrients, genotypes,

management

REDUCING FACTORSWeeds,

Pestsand diseases

20 YEARS OF KNOWLEDGE:

• Predictability:

anticipating the future

• Mitigation of limiting

factors

• Produce more with less

Wo

od

pro

du

ctiv

ity(

m3/h

a.y

ear)

Technological Level

MANY OF THESE RESULTS CAME FROM OUR

“OPEN-AIR LAB”

107

THE WATERSHED PROJECT (since early 90’s)

• Plant Ecophysiology

• Hydrogeology

• Meteorology

• Water Balance

• Carbon Allocation

• Soil Erosion

• Flora

• Fauna

• Forest modelling

Integrating scientific areas of study!

WATERSHED PROJECT

• Develop forestry management techniques and practices to increase forest

productivity and reduce possible environmental impacts

• Answer controversial questions about Fibria's Eucalyptus plantations involving

different stakeholders

• Develop and enhance process-based models to predict and estimate forest

growth taking into account environmental factors

• Promote environmental education and sustainable conscious of surrounding

communities

• Maintain operational licenses and certifications

108

Main Objectives

WATERSHED PROJECT

• Total area = 150 ha

• Previous land use: pasture

• Natural vegetation: Atlantic rainforest

• Climate: tropical – summer wet season and winter dry season.

• Current land use:

– E. grandis x E. urophylla hybrids (5th cycle) (65% of the land) with two plantation ages

– Rainforest regenerating (30%)

– Roads (5%)

109

Main Objectives

WATERSHED PROJECT

110

Site Map and Tour

WATER

TABLE

TREE

TRANSPIRATION

SOIL

EROSION

CARBON

BALANCE

SOIL

EROSION

1

2

3

111

Fibria Investor Tour

September 16, 2014

D

• DIP: Deinked Pulp. Paper pulp produced by deinking of recovered paper.

H

• Hardwood pulp: is based on short fibre wood species with broad leaves, typicallyeucalyptus, birch aspen and mixed hardwoods. The hardwoods are simply harderthan the softwoods because the fibres are shorter. Shorter fibre makes for densercellulose fibres, but also for weaker cellulose. Thus, hardwood is well suited forcopy paper, while softwood is required for lightweight printing papers and strongpackaging papers. Among the bleached market kraft pulps, 55% is softwood pulpand 45% is hardwood pulp.

L

• LBKP: Leaf bleached kraft pulp, also known as BHKP.

M

• Mechanically processed pulp: (also known as "high-yield" pulp) is characterized bythe fact that a very high percentage (normally in the range of 85 to 95 percent) ofthe original wood components are retained in the final product. The mechanicalprocesses include groundwood, refiner mechanical, thermo mechanical andchemi-thermomechanical. They are products with high bulk, opacity andabsorbency, some qualities that are particularly advantageous in certain useapplications, like in the production of newsprint and in publication grades ofprinting and writing paper. Dissolving pulp is highly purified chemical pulp ofspecial quality, with a very high alpha-cellulose content (usually 90% or more),intended primarily for conversion into chemical derivatives of cellulose and usedmainly in the manufacture of viscose staple fibre, solvent spin fibre an filament.These pulps are always bleached. They are used principally as the source ofcellulose in the manufacture of such products as manmade fibers, plastics,lacquers, rayon, acetate and explosives. Pulp is produced for internalconsumption (integrated pulp) or for external sales (market pulp). Of the totalglobal capacity of 215mn tonnes/year, 48mn tonnes (about 255) are market pulp.For statistical purposes, all pulp which crosses an international border is defined asmarket pulp, even if it is being transferred between mills belonging to a singlecompany. Bleached chemical pulp (BCP, most of it bleached kraft pulp or BKP) isthe main pulp type and accounts for nearly 90% of all market pulp capacity(42.5mn tonnes/year). The integrated capacity of bleached kraft pulp is about53mn tonnes, bringing the total global capacity of bleach kraft to roughly 95mntonnes per year. Pulp can be categorized according to what type of woodspecies is used, or more specifically, the length of the wood fibres. Softwood pulpis based on long fibre wood species. These are typically trees with needles, suchas pine and spruce. Pine is the main raw material for chemical softwood pulp,while spruce is excellent for the production of mechanical pulps used inpublication papers.

GLOSSARYB

• BCP: Bleached chemical pulp (includes bleached kraft pulp and all sulphite pulp,including unbleached sulphite). Also known as "white pulp".BCTMP: Bleachedchemi-thermomechanical pulp (Market BCTMP is produced mainly in Canadaand New Zealand).

• BEKP: Bleached eucalyptus kraft pulp (Market BEKP is produced mainly in LatinAmerica and Iberia. Some is also produced in Norway and Thailand).

• BHKP: Bleached hardwood kraft pulp (all grades, including BEKP, birch, SMHW,NMHW).

• Birch: Bleached birch kraft pulp. Birch is the principal hardwood grade producedin the Nordic countries. Some is also produced in Canada, although for statisticalpurposes Canadian birch is categorized as northern mixed hardwood - NMHW.

• BKP: Bleached kraft pulp (includes all softwood and hardwood kraft pulp.)

• BSKP: Bleached softwood kraft pulp (all grades).

• BSP: Bleached sulphite pulp.

c

• Chemically processed pulp: which accounts for approximately 55% of totalglobal pulp production, can be broken down further into sulphate pulp (kraftpulp) or sulphite pulp. The name "kraft" is derived from the German word for"strong". The method involves cooking (digesting) wood chips in an alkalinesolution for several hours during which time the chemicals attack the lignin in thewood. The dissolved lignin is later removed leaving behind the cellulose fibres.Sulphite is an old and obsolete production process, and most of the chemicalpulp today is produced through the sulphate production process. Chemical pulpcan be further categorized into bleached and unbleached. Unbleached Kraftpulp is dark brown in color, so before it can be used in many papermakingapplications it must undergo a series of bleaching processes.

• CMP: Chemi-mechanical pulp. It is the pulp of ligno-cellulose materials, that arepreviously treated with chemical reagents, obtained by defibration at anatmospheric pressure.

• CTMP: Chemi-thermomechanical pulp. A category of pulp which is produced bya process in which wood chips are treated with chemicals prior to heating andrefining. Unbleached CTMP is mainly used in integrated paper mills. BleachedCTMP, dried and sold as market pulp, has grown significantly in importance and isnow widely used in the production of many grades of paper, including woodfreepapers.

GLOSSARYN

• NBKP: Needle bleached kraft pulp, also known as BSKP.

• NBSK: Northern bleached softwood kraft pulp, the industry's benchmark grade ofpulp. Market NBSK is produced mainly in Canada and the Nordic countries.Some NBSK is also produced in north-western USA and in Russia .

• NMHW: Northern mixed hardwood (kraft) pulp. Sometimes known as NBHK,northern bleached hardwood kraft.

P

• Pulp: is the main raw material used in the production of virgin-fibre paper andpaperboard. Fibres are long structures, formed by a microscopic size plant cell,not wide but long, hollow and with walls that vary in width.

• Pulpwood: is wood used to produce pulp that is used in the manufacture oflumber or plywood. Paper can also be produced using non-wood fibres, likestraw, bagasse or bamboo. Recycled paper and paperboard uses recoveredpaper and board instead of virgin fibre. Pulp can be classified by the productionprocess used to separate the three main components of the wood: cellulose,water and lignin. Lignin acts as the cementing agent in wood, binding thecellulose fibres together. This process can be chemical (wood cooked withchemicals), mechanical (wood ground with physical force), or a combination.

R

• RMP: Refiner Pulp. Pulp produced by subjecting wood chips and/or residues toatmospheric or open-discharge refining.

S

• Semi-chemical pulp: High-yield pulp produced by a mild chemical treatment ofthe raw material followed by a mechanical defibrating operation, where thelignin is only partially removed.

• SGW: Stone Groundwood Pulp. Pulp produced by grinding wood logs or bolts(usually 4 feet in length) into relatively short fibres.

• SMHW: Southern mixed hardwood (kraft) pulp (produced exclusively in thesouthern United States .)

• Sources: Celulose Online, Bracelpa, PPPC and Merrill Lynch.

• Semi-chemical pulp: High-yield pulp produced by a mild chemical treatment ofthe raw material followed by a mechanical defibrating operation, where thelignin is only partially removed.

T

• TCF: Totally chlorine free. Pulp bleached without the use of any chlorine orchlorinated chemical compounds.

• TMP: Thermomechanical Pulp. A high-yield pulp produced by a process in whichwood particles are softened by pre-heating under pressure prior to a pressurizedrefining stage. TMP is generally used at mills producing newsprint and mechanicalprinting papers. Many older mills have replaced their groundwood and sulphitepulping operations with TMP.

U

• UKP: Unbleached kraft pulp.

• USP: Unbleached sulphite pulp.