June 2013

Corporate Presentation

Disclaimer

The information contained in this presentation may include statements which constitute 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.

The Company

Shareholder Structure
Votorantim Industrial S.A. BNDES Participações Free Float

29.42%

30.38%(1)

40.20%(2)

31%

NYSE
Level III

69%

BM&FBOVESPA

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

HIGHLIGHTS
Listed on Novo Mercado, highest level of Corporate Governance at BM&FBovespa:
• • • • •

Policies approved by the Board of Directors • Liability and liquidity management Only 1 class of shares →100% voting rights • Market risk Management 100% tag along rights (Brazilian corporate law establishes 80%) • Risk Management Board of Directors with minimum 20% independent members • Corporate governance Financial Statements in International Standards – IFRS • Information disclosure Adoption of Arbitration Chamber • Stock trading Listed in the most important sustainability indexes

(1) Position as of May 31, 2013. Under the shareholders' agreement between BNDESPar and Votorantim Industrial, BNDESPar must hold at least 11% of the total capital between Oct/12 and Oct/2014. (2) Free Float 40.14% + Treasury 0.06%

A Winning Player
Superior Asset Combination Main Figures – 1Q13

Pulp capacity

million tons

5.300 1.4 967 562 7.5 3.1 3.1

Net revenues
Total area (1) Planted area(1)
Belmonte Veracel Caravelas Portocel Aracruz Três Lagoas Jacareí Santos

R$ billion
thousand hectares thousand hectares R$ billion X X

Net Debt Net Debt/EBITDA (in Dollars)(2) Net Debt/EBITDA (in Reais)

Port Terminal

Pulp Unit

Source: Fibria (1) Including 50% of Veracel, excluding forest partnership areas and excluding the forest base linked to the sale of forest assets in Southern Bahia State and Losango. (2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.

Fibria’s Units Industrial Capacity
Três Lagoas – Mato Grosso do Sul – 1,300 thousand t/year Jacareí – São Paulo – 1,100 thousand t/year

Aracruz – Espírito Santo – 2,340 thousand t/year

Veracel – Bahia – 560 thousand t/year *

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

Fibria’s Strategy

Leadership Position
Industry Outlook(1)
Paper & Board 405 million t

Market Pulp Capacity Ranking 2013(2) (000t)
Fibria APRIL Arauco Georgia Pacific CMPC UPM-Kymmene Sodra

5,300

58% Recycled Fiber 236 million t

42% Pulp 169 million t

18% Mechanical 31 million t

82% Chemical 138 million t

Suzano Paper Excellence Weyerhaeuser Stora Enso Domtar Ilim IP
52% Hardwood 28 million t

61% Integrated Mills 84 million t 48% Softwood/Other 26 million t

39% Market Pulp 54 million t

Mercer Metsa Fibre Eldorado West Fraser

Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical

36% Acacia/Other 10 million t

64% Eucalyptus 18 million t

ENCE
Canfor
31%

69% Other Eucalyptus Pulp producers: 12 million t
(1) (2)

0

1000

2000

3000

4000

5000

6000

Paper&Board, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note Feb 2013 – considers 2012 demand Hawkins Wright – Outlook for Market Pulp, January 2013

Fibria’s Commercial Strategy
• • • • Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers Long term contracts Competitive logistics set up
Tissue 51%

Fibria’s Pulp End Use
Printing & Writing 30%

Speciatilies 19%

42%
Europe

22%
N.America

Nyon

Csomád

26%
Miami
Asia

Hong Kong

10%
L.America

São Paulo

Fibria’s Sales Distribution Fibria ‘s Offices

Source: Fibria – 1Q13

Door to Door Operations
Pulp mill

Outbound Logistics
Forest
Integrated logistics solutions Low forest to mill average distance

Easy access to the most efficient transportation network: rail, barging and road

Portocel: specialized port for the pulp and paper industry Efficient Logistics Setup

Client

Port

Sea Freight

10

Pulp and Paper Market

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%

37,474

Tissue 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
(1) Source:

Emerging Markets

RISI

Global Market Pulp Demand
Hardwood demand will continue to increase at faster pace than Softwood

Hardwood (BHKP) vs. Softwood (BSKP) (000 ton)
2011 - 2016 CAGR: Hardwood: +2.3% Softwood: +1.0%
35.000

Demand growth rate
Growth 19962006
56%

Million tons

1996

2006

2016

Growth 20072016
27%

30.000
25.000 20.000 15.000 10.000 5.000

Hardwood

14.3

22.4

29.9

Eucalyptus

5.4

11.1

21.4

106%

67%

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

16.4 30.8

22.0 44.4

24.1 54.0

35%

7%

0

Market Pulp

Hardwood

Softwood

Source: PPPC

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

1.000 900
Eldorado

2,0 1,8
Guaíba II

800

BHKP prices - cif Europe (US$/ton)

700

Três Lagoas APP Hainan Nueva Aldea Santa Fé Valdivia Kerinci PL3 APP Guangxi Chenming Zhanjiang Fray Bentos Mucuri

Montes del Plata

1,4

600
500 400

1,2
1,0 0,8

Veracel

300
200 100

0,6
0,4 0,2

0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0,0

Source: Hawkins Wright

Greenfield capacity (000 ton)
14

Rizhao

Maranhão

1,6

Capacity closures DO happen…

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

-85

-105

-540

-500

-910

-965 -1180 -1260
2008 2009 2010 2011 2012 2013E (1)

Source: PPPC and Fibria (1) Mills: Jari, Sappi Cloquet, Double A (Advanced Agro), Sodra Tofte and Ilim Group

15

Fibria: Competitive Position on the Cost Curve

551
119 432 42 498 86 421 45 459 36 439 36 382 47 328 65 320 52 314 69 271

324
70 254

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

Cash Cost (US$/t)

Delivery (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, May 2013) | Fibria’s 1Q13 cash cost divided by FX considered in the report R$/US$2.0096

Tissue Market
Per Capita Consumption of Tissue by Region, 2012(1)
Kg/capita

World Tissue Consumption, 1991-2012(1)
35 30 25 Average Growth Rate +3.5%a.a.
Million tons

24.3

14.8

14.6 11.1 6.3 6.1

Growth Potential

20 15 10

4.4 2.2 0.8 Asia Far East 0.6 Africa

5 0
1991 N.America Japan 1996 2001 2006 E.Europe Asia FE 2009 2010 2011 2012 W.Europe China L.America Oceania Middle East Africa

L. America

Oceania

N. America

(1) Source:

RISI

W. Europe

N&M East

E. Europe

Japan

China

Pulp Projects Backlog
Even though there is an extensive pulp projects backlog, there are important question marks regarding new projects
Main Questions About Capacity

• •

Minimum required return for new projects
Closures due to increasing costs worldwide, reduction of maintenance capex (higher technical age of recovery boilers) and exchange rates Fiber substitution: Softwood x Hardwood and Recycled x Virgin Fiber

Main Projects
Project Eldorado Arauco / Stora Suzano CMPC Guaíba II Klabin Paraná Fibria Três Lagoas II APP South Sumatra Cenibra Belo Oriente II Country Brazil Uruguay Brazil Brazil Brazil Brazil Indonesia Brazil Capacity 1.5 Mt 1.3 Mt 1.5 Mt 1.3 Mt 1.5 Mt* 1.5 Mt 1.5 Mt – 2.0 Mt 800 kt Timing 4Q2012 3Q2013 4Q2013 1Q2015 1Q2016 Status Launched Confirmed Confirmed Confirmed Confirmed Unconfirmed Unconfirmed Unconfirmed

* 1.1 million tonnes of hardwood and 400 thousand tonnes of softwood

Financial Highlights

1Q13 Results
PRODUCTION AND SALES VOLUME (000 t) NET REVENUES (R$ million)

1,313 1,332 1,370

1,510
1,186 1,263 1,274 1,853

+14%
1,449

1Q12 Production

4Q12 Sales

1Q13 1Q12 4Q12 1Q13

CASH COST (R$/t)

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

507

- Cash cost exdowntimes: +4% - LTM inflation: +6.6%

+9 p.p.
41% 30% 753 565 377 39%

455
444
1Q12

446 446
4Q12

463

1Q13 Cash Cost 1Q12 4Q12 1Q13

Cash Cost ex maintenance downtimes

21

Debt Profile
2,871

Debt Amortization Schedule at
Mar/2013 (R$ Million)

1,437 1,068 671 725 677 994 807 648

2013 Bond

2014

2015 Pre-payment

2016

2017 BNDES

2018 ECN

2019

2020

2021

Export Credit/Others

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

Debt by Currency

5.5% 5.2%

8%

92%
Local Currency Foreign Currency

Mar/12

Mar/13

21

Debt
NET DEBT(R$ million) and LEVERAGE (x)

5,2 4,8

4,7

Net Debt/EBITDA (R$) (x)

4,5 4,2 8,557 3,4 3,3 7,745

Net Debt/EBITDA (US$) (x)

8,965

4,2 8,462

3,1 3,1 7,516

1Q12
Closing FX (R$/US$) 1.82

2Q12
2.02

3Q12
2.03

4Q12
2.04

1Q13
2.01

GROSS DEBT (R$ million)

-10%
11,031

10,768
9,898
R$1.1 billion reduction in gross debt in 12 months.

1Q12

4Q12

1Q13

22

Free Cash Flow (R$ million) – 1Q13

565

(249)
(80) (60)
Adjusted EBTIDA CAPEX Interest Working Capital

167 (4)
Taxes

(5)
Other Free Cash Flow

- Free cash flow totaled R$167 million in 1Q13 - LTM free cash flow of R$782 million

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

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