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November 26th 2012

The New York Stock Exchange

1 2 3 4

Fibria's Strategy and Operations


Marcelo Castelli Chief Executive Officer

Corporate Governance and Finance


Guilherme Cavalcanti Chief Financial Officer

Pulp and Paper Market


Henri Philippe Van Keer Chief Commercial Officer

Ensyn
Marcelo Castelli Chief Executive Officer

Agenda

Fibria's Strategy and Operations


Marcelo Castelli Chief Executive Officer

Fibrias 2012 Key Messages

OPERATING EXCELLENCE

LIABILITY MANAGEMENT

GROWTH WITH DISCIPLINE

Cost control Capex discipline Working capital improvement Free cash flow generation

Liquidity events and FCF of R$ 2.6 billion Gross debt reduction Cost of debt reduction Leverage reduction Rating outlook revised by S&P to BB/Positive

Brownfield projects on hold Ensyn equity acquisition: portfolio diversification

Focus on Investment Grade Recovery


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Four operational sites with different locations, but similar challenges


Fibrias Forest Average Yield: 41m3/hectare/year Fibrias Average Forest-Mill Distance: 177km

Unit

Certification

Industrial Capacity

Aracruz Trs Lagoas Jacare Veracel


TOTAL
* To be certified

FSC/Cerflor FSC/Cerflor FSC/Cerflor* FSC/Cerflor

2.3 million t/year 1.3 million t/year 1.1 million t/year 0.5 million t/year (50% JV)

5.2 million t/year

Base date: 2012


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Fibria has operations reaching many cities and countless communities

APPROXIMATELY 1 MILLION HECTARES


State
Mato Grosso do Sul Bahia Esprito Santo So Paulo Minas Gerais Other Total

Planted Area (000 ha)


228.7 129.7 106.3 80.0 13.2 1.7 559.5

Preservation Area ( 000 ha)


99.7 107.6 57.4 57.7 12.8 1.5 336.7

Other Purposes (000 ha)


19.1 15.7 16.2 9.8 1.2 0.2 62.2

Total (000 ha)


347.5 253.0 179.9 147.4 27.2 3.4 958.4

Base date: 2012. Includes 50% of Veracel and excludes forest partnership areas and forest base linked to the sale of forest assets in Southern Bahia and Losango.
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Forestry planning is a long-term process in which the environment has a significant impact on the biological asset

MANAGEMENT BASIS

3
WEATHER
MGT
Forestry Strategy MAI*

PROGNOSIS

Historical Data

A B C

TREE

SITE
Year

Clonal Selection

Character & classes

1
Qualitative

2
Year

FORESTRY CYCLE

INVENTORY 100% INVENTORY 100%

1
Planting or Sprouting

6
Harvesting

FINAL INVENTORY

Renewed annually: 1/6

Sample 60%
*MAI: Mean annual increment 7

Sustainability long term goals

Long Term Goals to be met by 2025


Reduce by one third the area necessary for pulp production Double carbon sequestration Promote environmental restoration of 40 thousand hectares of proprietary lands Reduce by 91% the amount of solid industrial waste sent to landfills Reach 80% approval of neighboring communities Help the community to make 70% of projects self-sustainable in income generation,
supported by the company
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A new added value projected

MAI* Pulp: (adt/ha/year) 12.1 10.6 10.9

15.0

2010
*MAI: Mean annual increment

2015

2020

2025

Expected results in the new forests planted in Fibrias own forests, adopting classical breeding + molecular markers technologies.
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Operating stability plays a key role on Fibrias operational competitiveness

Increasing Production

Cost Reduction
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Efficiency projects aim to reduce Fibrias cash cost


Jacare Energy Master Plan
Improved energy efficiency Reduction on natural gas and steam consumption Cash Cost Impact Reduction of R$ 3.3 / ton at Fibria Start up: April, 2013

Aracruz Revit A
New Bleaching Line Mill A Cash Cost Impact Reduction of R$ 4.1 / ton at Fibria Increase production by debottlenecking Start up: April, 2011

Boiler - Heat Recovery Steam Generator

Bleaching Line

Brown Pulp Cleaning

Investments 2011/2012: R$12.9 million

Investments 2010/2011: R$110 million

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Better results achieved by efficiency improvement


PRODUCTION VOLUME (000 t) BEST PRACTICES AND OPERATING STABILITY CASH COST (R$/ton) TARGET TO FULLY ABSORB FX AND INFLATION 523
5,054 4,600 5,184 5,228

509
448

495
471 473

432

2009*

2010*

2011

3Q12 LTM

2009*

2010*
Historical Value

2011

3Q12 LTM

Inflation Effect**

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

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


40%

718 593

675 594

29%

34%

33%

636
2,526

605

605
1,522

1,964

1,890

2009*
Historical Value

2010*

2011

3Q12 LTM

2009*

2010*

2011

3Q12 LTM

Inflation Effect**

* Excludes Conpacel | ** IPCA index considered to calculate the inflation effect 12

Estimated CAPEX: Focus on maintenance and keeping it close to historical levels


Historical Average(1) 2010 to 3Q12 LTM: R$ 1,186mn Focus on the Historical Average(1) 2013 to 2016: target average of R$ 1,100mn 2012 x 2013 The CAPEX increase is explained by:

1,416

2013 Estimate R$ 1,200mn R$ 1,250mn 1,152

991(2)

13%

49%

38%
Inflation and FX Rate Nonrecurring increase of forestry renovation at Aracruz Unit Industrial maintenance (seasonal effects)

2010

2011
CAPEX

3Q12 LTM

2013E

2014E

2015E

2016E

Forest Partnership

R$/ton 196

273

220

(1) Includes advance for wood purchase in partnership programs. (2) Excludes Conpacel.
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Forest of the Future Project: Monitoring, Productivity & Precision

Situation: Increased costs of forestry inputs and operational control


Project Examples:

Potential Fertilization

Automated Control-Precision

Unmanned Aerial Vehicle

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Forest of the Future Project: Headcount Mechanization & Technology

Situation: Minimum wage increase and scarce labor


Project Examples:

Hilly Areas Soil Preparation

Harvesting Hilly Areas

Aerial Fertilization

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Curve of capture: expected savings due to projects included in Forest of the Future

OPEX Harvesting
Expected saving

2011
0,5%

>2014
82,7%

100,0%

6,4%

66,7%

CAPEX Silviculture
Expected saving

40,8%

2011
0,9%

>2014
11,9%

7,5%

2011

2012

2013

2014

2015

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Corporate Governance and Finance


Guilherme Cavalcanti Chief Financial Officer

Shareholder Structure and Corporate Governance


Votorantim Industrial S.A. BNDES Participaes Free Float

29.42%

30.38%(1)

40.20%(2)

26% NYSE 74% BM&FBOVESPA

Average Daily Trading Volume (LTM): US$ 30 million

HIGHLIGHTS
Listed on Novo Mercado, highest level of Corporate Governance at BM&FBovespa:
Only 1 class of shares 100% voting rights 100% tag along rights (Brazilian corporate law establishes 80%) Board of Directors with minimum 20% independent members Financial Statements in International Standards IFRS Adoption of Arbitration Chamber

Policies approved by the Board of Directors Liability and liquidity management Market risks Corporate governance Information disclosure Stock trading

(1) Position as of October 31, 2012. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years (until October 2012) and 11% during the following 2 years (from October 2012 to October 2014). (2) Free Float 40.14% + Treasury 0.06%

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Hedging Policy Unchanged Adapting Hedging Strategy


HEDGING STRATEGY DERIVATIVES NOTIONAL(1) (US$ Million)

Main goals:
Minimum cash: protect our short-term debt amortization + cash conversion cycle Avoid EBITDA margin reduction below a set level
1,230 1,084 923 791 433

HEDGING POLICY Guidelines:


No leverage Limits per counterpart Derivative instrument linked to the effective exposure

3Q11
% of exposure hedged

4Q11
53%

1Q12
54%

2Q12
44%

3Q12
18%

56%

Macroeconomic fundamentals indicate a floor for FX rate @ R$2.00 In this context, Fibria reviewed its Hedging Strategy to become more exposed to the Dollar

Maximum hedging limits:


Currency: up to 75% of the 12 month exposure

All contracts registered in DTC


(1)

Includes Non Deliverable Forwards and US Dollar Option

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2012 Liquidity Events: Delivered as Promised

R$ Million
436 615 235 1,361 2,211 2,647

EQUITY OFFERING

FOREST SALE*

LOSANGO SALE

SUBTOTAL

FCF 9M12

TOTAL

* Forestry assets and land in the south of Bahia State


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Focus on Free Cash Flow Generation

Free Cash Flow 9M12 (R$ Million)


1,500

(812)

(362) (4) 114


436

EBITDA

CAPEX*

INTEREST PAID / RECEIVED

TAX

WORKING CAPITAL

FREE CASH FLOW 9M2012

* Includes CAPEX and Forest Partnership


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Leverage Reduction
Net Debt/EBITDA (x) US$*

7.1 6.5 3.8 3.6


Net Debt/EBITDA (x) R$

3.1 2.9

3.4 3.2

4.2 3.8

4.8 4.2

5.2 4.8

4.7 4.2

4.5 4.2

3.5** 3.4**

Market Consensus

Net Debt (R$ Billion)

11.0

9.8 8.0 8.0

9.5

9.5

9.0

8.5

8.6

2009

2010

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12**

Almost R$1 billion net debt reduction despite the 9.5% FX impact (3Q12 vs. 3Q11) on the dollar denominated debt (> 90% of total debt)

FX Rate(R$/US$)
Average LTM End of Period 2.00 1.74 1.76 1.67 1.73 1.63 1.69 1.56 1.65 1.85 1.67 1.88 1.70 1.82 1.96 2.02 2.02 2.03

*From June 30 2012 on, net debt/EBITDA ratio for covenant purposes are calculated in US Dollars and the limit is 4.5x ** Market consensus comprising 12 estimates from financial institutions 22

Adequate Debt Profile

Debt Amortization Schedule at


Sep/2012 (R$ Million)
485 2012 753 2013 2014 1,181 709 2015 662 2016 2017 981 783 2018

3,270

1,521 610 2019 2020 2021

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

Average Maturity (Months)

Debt by Currency

Debt by Type

7%

6% 17%

5%

5.5% 5.2%

75 65
93%
Local Currency Foreign Currency Bond BNDES Others

45%

27%
Pre-Payment NCE

3Q11

3Q12

3Q11

3Q12

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Pulp and Paper Market Outlook


Henri Philippe Van Keer
Chief Commercial Officer

Global Paper Consumption


CAGR 1996 2006 Developed Markets: + 1.7% Emerging Markets : + 6.0%
85,291

117,611

CAGR 2007 2016 Developed Markets: - 4,0% Emerging Markets : + 4.1%

114,507

P&W Consumption (000 tons)(1)

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

Developed Markets

Emerging Markets

CAGR 1996 2006 Developed Markets: + 2.4% Emerging Markets : + 6.9%


26,877 15,548

CAGR 2007 2016 Developed Markets: + 1.4% Emerging Markets : + 6.7%

37,250

Tissue Consumption (000 tons)(1)

199619971998199920002001200220032004200520062007200820092010201120122013201420152016

Developed Markets
(1) Source: RISI

Emerging Markets
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Global Market Pulp Demand

Hardwood demand will continue to increase at a faster pace than Softwood

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


2011 - 2016 CAGR: Hardwood: +2.3% Softwood: +1.0%
35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Demand growth rate Growth 19962006


56%

000 ton

1996

2006

2016

Growth 20072016
27%

Harwood

14.3

22.4

29.9

Eucalyptus

5.4

11.1

21.4

106%

67%

Softwood Market Pulp

16.4 30.8

22.0 44.4

24.1 54.0

35%

7%

Hardwood

Softwood

Source: PPPC 26

Global Pulp Demand and Paper Capacity


Global Paper Net Capacity Change Tissue (million t)
Emerging Markets
2012 Hawkins Wright Brian McClay 2,512 2,416 2013 950 1,003

Global Market Pulp Demand(1) 9M 2012 vs 9M 2011

Developed Markets
2012 160 180 2013 360 352

17% Total 2% 3%

3,982 3,951

-4%

-4% -9%

Printing&Writing (million t)
Emerging Markets 2012
Hawkins Wright Brian McClay PPPC 2,835 2,478 1,260

Developed Markets 2012


-2,400 -2,355 -2,575

Total

Total

North Europe Latin Japan America America

China

2013
680 347 1,180

2013
50 -490 -140 1,165 -20 -275

(1) Source : PPPC World 20 Sep/2012 27

NBSK vs. BHKP FOEX Price Spread CIF Europe (US$/t)


Main Questions: Softwood availability in the future? Certified Softwood availability in the future? Medium/long term, only Softwood substitution by Harwood will be sustainable Hardwood and Softwood prices will be more and more disconnected

250

200

150

100

50

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Gross capacity addition should not be counted as the only factor influencing pulp price volatility

1000 900

2,0 1,8 1,6 1,4 1,2 1,0


Chenming Zhanjiang APP Guangxi

BHKP prices - cif Europe (US$/ton)

800 700 600 500 400 300 200 100 0 jan/02


APP Hainan Nueva Aldea Fray Bentos Mucuri Veracel

Rizhao Trs Lagoas

Eldorado

Maranho

Montes del Plata

Santa F Valdivia Kerinci PL3

0,8 0,6 0,4 0,2 0,0

jan/03

jan/04

jan/05

jan/06

jan/07

jan/08

jan/09

jan/10

jan/11

jan/12

jan/13

jan/14

Source: Hawkins Wright 29

Greenfield capacity (000 ton)

Capacity closures DO happen


Closures of Hardwood Capacity Worldwide 000 ton
0 -200 -400 -600 -800 -1000 -1200 -1400
2006 2007

-85

-105

-500 -540

-755 -910

-1180 -1260
2008 2009 2010 2011 2012 2013E

Source: PPPC and Fibria 30

Fibria: Competitive Position on the Cost Curve

637 66 23 548

627 20 15 592

624 80 27 517

596 552 103 68 425 39 68 445 550 108 40 402 546 95 47 404 518 98 50 370

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

Total Delivered Cash Cost CIF + SG&A

Interest

CAPEX

Source: Total Delivered Cash Cost, includes SG&A: Hawkins Wright (Outlook for Market Pulp, July 2012) and Fibria 3Q12 Interest and Capex: RISI (World Pulp & Recovered Paper 5-year Forecast, August 2012) Companies financial information: Canada Canfor, Fibrek and Domtar) |Spain Ence

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Technical Age and Scale in the Market Pulp Industry


Further closures are expected due to lack of adequate investments in the industry....

Hardwood (BHKP) Market Pulp

Sotfwood (BSKP) Market Pulp

North American Pulp Mills


Source: Pory

Other Pulp Pulp Mills

North American Pulp Mills

Other Pulp Pulp Mills

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Fibrias Commercial Strategy


Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers: Top 5 clients represent 63% of total sales Long term contracts Competitive logistics set up
Tissue 56%

Fibrias End Use


Printing & Writing 33% Speciatilies 11%

Tissue

50% 32% 18%

26%
N.America

P&W Specialties Nyon Miami

41%
Europe

Tissue

26% 61% 12%

Csomd

23%
Asia

P&W Specialties

Tissue P&W Specialties

98% 0% 2%

Hong Kong

10%
L.America

Tissue P&W Specialties So Paulo

43% 56% 1%

Fibria Sales Distribution Fibria Offices

Source: Fibria 3Q12 33

Ensyn
Marcelo Castelli Chief Executive Officer

Fibrias continuous investigation on bioenergy identified Ensyn as the most promising opportunity for partnership

Priority 1

PYROLYSIS AS A PROMISING TECHNOLOGY


Mature technology Good CAPEX/t ratio Good yield in biomass conversion Potentially economical attractiveness

Technological Maturity

P-Oil

Priority 2

ENSYN AS THE BEST OPPORTUNITY


Smaller scale of the plants resulting in lower CAPEX and optimized costs in biomass transport Competitive costs as compared to other fuel players Flexibility of final uses: industrial oil, power generation, co-refining and possible upgrade to final fuels Strategy based on partnerships with players with broad experience in different links of the value chain

Economic Attractiveness Economic Attractiveness


Technology A Technology B Pyrolysis Technology D
Relative Market Size

Technology E Technology F

Source: Fibria Bio-Strategy Project 35

The biooil produced by Ensyn is flexible enough to use in various markets with significant potential
RAW MATERIAL Flexibility in the use of raw materials Non-food raw materials

RTP(2) PROCESS
Commercially proven technology Non-catalytic process with high conversion to fuels Solid intellectual property CAPEX per unit lower than those of competitors RTP equipment engineering & supply, with process guarantees, by Envergent Technologies (1)

REPLACEMENT FUEL OIL Renewable Product


Eligibility for regulatory incentives of the RFS2 program in the category of cellulosic fuels for co-refining and upgrading (C-RINs)

CONSUMER MARKETS Consumer market flexibility


Consumer market in the U.S. alone of more than USD1 trillion

Planted Forests

Forest Residues

Sawmill Residues

Agricultural Residues

2013-2014

(1) Envergent is a JV between Ensyn and UOP, a Honeywell company, the worlds leading supplier of refinery technology. | (2) RTP: Rapid Thermal Processing TM Source: Ensyn and Fibria Analysis 36

Ensyn estimates for returns on RTP Units in Canada and United States are very attractive
CASH MARGIN (USD/BOE)
Maximum Margin with Incentives

CAPEX (USD MM) AND PRODUCTION (BOE)

239
139
C-RINs Value

194
Base margin

55 45
Production Cost

100
RFO Market Value

Oil Barrel Value

400 tons per day of dry biomass

~750 BOE per day = 230 k BOE/year = 22 millions of gallons per year

Capex from USD 60 to 100 MM, depending on the existing infrastructure

RETURN WITHOUT LEVERAGE PRE-TAX

RETURN WITH 50% OF LEVERAGE PRE-TAX

64% 45% 32% 18%


Without C-RINs 50% of C-RINs 100% of C-RINs

45% 22%
Without C-RINs 50% of C-RINs 100% of C-RINs

Proxy of returns in Brazil = ??


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Fibrias investment on Ensyn capital is a move that opens a strategic option to Fibria
EQUITY INVESTMENT ONLY Entry in the company capital with IPO estimated for 2013 Potential equity appreciation EQUITY + JV INVESTMENT Maintains upside of the potential equity appreciation Allows structuring of JV in Brazil with exclusivity (*) JV IN BRAZIL ONLY Constitution of nonexclusive JV in Brazil to operate RTP plants with biomass provided by Fibria

JV LEVERAGING ON KEY COMPETENCIES OF EACH PARTNER

Advantage of feedstock cost

Excellence in biomass logistics

Access to technology

Access to the market

* By the exclusivity agreement signed, exclusivity rights held by Ensyn to build and operate RTP plants in Brazil for certain applications will be fully transferred to the JV.
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In sum, the partnership with Ensyn presents a solid and promising business model

PRODUCT

Renewable fuel production from non-food biomass High returns with low investment per unit. Potential for gains with regulatory incentives Technology protected and commercially proven, with two industrial units in operation Major market potential in North America and worldwide Relationships with major industry players: UOP, Chevron, others Major expansion plan both in North America and other regions (Asia, South America) Strategic alliance based on competencies with potential to create a relevant biofuel business in the future

ECONOMIC MODEL

TECHNOLOGY

CONSUMER MARKET STRATEGIC PARTNERSHIPS GROWTH

JV IN BRAZIL
Source: Ensyn and Fibria Analysis

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