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Newsletter Edition 4

June/2011 45 Forestry Competitiviness

Financial Covenants Renegotiation 3 0 - 40
25 25 25
Some of Fibria’s financing agreements are subject to covenants which establish
maximum indebtedness and leverage levels, as well as minimum debt service coverage 15 15 - 25
yea rs
ratio. 12- 15
1 0 - 1 2 years 8
7 - 15
The negotiation for the alignment of financial covenants with the last 3 creditors which 7- 8
years 5
6 years years
had different covenants from others has been completed. Therefore, all contracts have Brazil Indonesia South Africa Chile Portuga l / USA / Fi nland /
(e uca lyptus) Spain Ca nada Sweden

the same maximum leverage level, measured by Net Debt/EBITDA ratio. This ratio was
Harvesting cycle (avg. years)) Yield (m3/ha/year)
increased from 3.0x to 4.0x in the second quarter of 2011. For the following quarters,
the covenants have been negotiated in accordance with the Fibria’s business
Net Debt (R$ million) and Net
perspectives and Liability and Liquidity Management Policy. Debt/EBITDA (x)
Liability and Liquidity Management Policy 11,017 2.9
Pursuant to its commitment to transparency, on May 09th, Fibria announced the
approval of its Liability and Liquidity Management Policy. It establishes the range of 2.0x
to 2.5x Net Debt/EBITDA ratio as a leverage target which should not exceed 3.5x even at
the peak of its expansion cycles. This policy also aims to maintain the necessary liquidity
to meet Fibria’s operational cash conversion cycle and short term financial obligations. 2009 2010 1Q11 LTM*

* Considers the adjusted EBITDA of the last 12
Fibria Day months, including Conpacel and KSR results

On May 11th, Fibria held the first edition of the "Fibria Day" in New York. The meeting
represented an opportunity to bring together Fibria’s Top Management and investors,
analysts and journalists. EBITDA (R$ million)
EBITDA Margin (%)
Average BEKP Price (US$/t)
In this occasion, Fibria announced a US$ 800 million transaction split in two tranches: (i) Average Price 848 871

BEKP (US$/t) (1)
US$ 300 million Export Pre-Payment facility with 8-year tenor and (ii) US$ 500 million

revolving credit facility with 4 year availability period. EBITDA Margin
39% 40%


EBITDA (R$ million) 2,749


2009 2010 1Q11 LTM

Fibria IR Contact
(11) 2138-4565/