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Corporate Presentation

January, 2012

Disclaimer

The information contained in this presentation may include statements which constitute forwardlooking 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 forwardlooking statements, due to a variety of factors, including, but not limited to, the risks of international business and other risks referred to in the companys filings with the CVM and SEC. The company does not undertake, and specifically disclaims any obligation to update any forwardlooking statements, which speak only for the date on which they are made.

The Company

VCP and Aracruz Merged to Create Fibria

Shareholder Structure

Votorantim Industrial S.A. 29.34%

BNDESPar 30.42(1)

Free Float 40.24%(2)

(1) (2)

Position as of December 31, 2011. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years and 11% during the following 2 years. Free Float 40.17% + Treasury 0.07%

Improved Corporate Governance

Improved Corporate Governance

Board and Committees

Listed on Novo Mercado, highest level of Corporate Governance at BM&F Bovespa


Only 1 class of shares 100% vo<ng 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

Shareholders Meeting

Fiscal Council

Board of Directors

9 Members: 20% Independent Chairman CEO

Listed in the most important sustainability indexes

Board Advisory Committees(1)


Audit and Risks Personnel and Remuneration Finance Sustainability

Policies approved by the Board of Directors


Liability and liquidity management Market risks Corporate governance Information disclosure Stock trading

Executive Officers

(1) Members performance assessed by independent consulting firm

A Winning Player
Superior Asset Combination Main Figures(1)

Pulp capacity Net revenues Total area Planted area


Belmonte Veracel Caravelas Portocel Aracruz

million tons R$ billion thousand ha thousand ha R$ billion X

5.25 6.0(1) 1,076(2) 609(2) 9.5 4.2

Net Debt Net Debt/EBITDA

Trs Lagoas Jacare Santos

Port Terminal

Pulp Unit

Source: Fibria (1) Last Twelve Months as of 3Q11. (2) As of September 30, 2011, including 50% of Veracel and excluding forest partnership areas (124 thousand ha).

Fibrias Units Industrial Capacity


Trs Lagoas Mato Grosso do Sul 1.3 million t/year Jacare So Paulo 1.1 million t/year

Aracruz Esprito Santo 2.3 million t/year

Veracel Bahia 1.1 million t/year

Fibrias Strategy

Clear Leadership Position

Industry Outlook (1)

Market Pulp Capacity Ranking 2010(2) (000t)


Fibria APRIL Arauco

Paper & Board 392 million t

5,250

57% Recycled Fiber 224 million t

43% Pulp 167 million t

APP Georgia Pacific CMPC Sodra Stora Enso Weyerhaeuser Suzano


34% Market Pulp 46 million t 46% 54% Hardwood 24 million t

20% Mechanical 33 million t

80% Chemical 134 million t

66% Integrated Mills 85 million t

Botnia/M-real UPM-Kymmene Domtar Ilim Mercer IP ENCE


64% Eucalyptus 16 million t

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

Softwood/Other 22 million t

36% Acacia/Other 8 million t

West Fraser Canfor Cenibra


31%

69%
Other Eucalyptus Pulp producers: 11 million t
(1) (2)

1000

2000

3000

4000

5000

6000

RISI and PPPC: considers 2010 demand Hawkins Wright January 2011

Relevant Market Share and Competitive Position in the Cost Curve

Fibrias Market Share (1)

Average Cash Cost of BHKP delivered to Europe(2) (US$/t)

Mill Cash
11% 21%

Delivery

1000 800 600 120 400 200 464 500 501 493 70 39 41 85 423 42 456 33 426 57 359

SG&A Maintenance Capex Financial Expenses

69 316

51 310

55 273

Total Market Pulp: 49.8 million t

Total Hardwood Market Pulp: 24.9 million t

33%

Hardwood Cash Cost (US$/t) vs Capacity ('000 t)


800 700 Cash cost (US$/t) 600 500 400 300 200 100 0 5000 (1) (2) PPPC World Chemical Market Pulp Global 100 Report December 2010 (World Demand by Grade) Source: Hawkins Wright as July 2011 Report and Fibria 3Q11 10000 15000 Capacity ('000s t) 20000 25000 30000 Bleached hardwood kraft

10 million t

Total Eucalyptus Market Pulp: 15.8 million t

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Exchange Rates and Inflation Affect the Cost Structure


Exchange Rate Currencies Evolution versus Dollar (Index: Jan03 = 100)
240 220 200 Real:90% 180 160 140 120 100 80 60 Rupia: 0% Canadian Dollar: 49% Chilean Peso: 38%

Inflation

Wood: cost of land and minimum wage growth above inflation Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices Chemicals / energy / water: global demand for commodities add pressure on main raw materials Labor: cost in Brazil in dollar terms is higher than in some developed countries 11

Global Presence
Fibrias Commercial Strategy
Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers focused on eucalyptus pulp to the tissue market The top 10 customers represent, on average, 70% of sales Over 20 years of relationship with many of the main clients Global contracts
P&W 20% Tissue 58% Specialities 22%

End-Use 3Q11

41% 29%
N.America Europe

Nyon Miami

Csomd

20%
Asia

Hong Kong

10%
L.America

So Paulo

Source: Fibria 3Q11

Fibria Sales Distribution

Fibria Offices

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Focus on Premium End-Uses

Fibria's Pulp Destination


P&W

Market Pulp Destination

20102010-2025 Demand Growth (CAGR)

20%

43%

1%

Tissue

58%

24%

4%

Specialties

22%

14%

3%

Newsprint

-0.1%

Containerboard

8%

5%

Others

11%

3%

Source: Fibria 3Q11 Earnings Results, PPPC, RISI and Fibria

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Financial Highlights

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3Q11 Performance
3Q11 Results
3Q11 Pulp Production (000t) Pulp Sales (000t) Net Revenue (R$ million) Pro Forma EBITDA1 (R$ million) EBITDA Margin (%) Financial Results (R$ million) Net Income (Loss) (R$ million) 1,296 1,244 1,449 476 33% (2,015) (1,114) 2Q11 1,271 1,230 1,459 490 34% 277 215 3Q10 1,293 1,160 1,581 648 41% 248 303 3Q11 vs 2Q11 2% 1% -1% -3% -1 p.p. 3Q11 vs 3Q10 0%

Sales Mix

3Q10 12%

2Q11 11% 41% 14% 46% 29% 20%

3Q11 10% 41%

7% -8% -27% -8 p.p. -

20% 27%

29% Europe Asia North America Others

Cash Cost (R$/t)


w/o downtime with downtime 3Q11 vs 3Q10 (w/o downtime): +2.5% Inflation: +7.3%

Pro Forma EBITDA1 (R$ million) and EBITDA Margin (%)


41% 34% 648 490 476 33%

513 481 459 435 458 446

3Q10

2Q11

3Q11
1

3Q10

2Q11

3Q11

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Excludes Conpacel and KSR results in 3Q10

Market Context Evolution


Exchange Rate (R$/US$)
2,00

Sep/2011: Macroeconomic Worsening 3Q11 Dollar Appreciation : 19% FOEX BHKP Europe: US$789/t
3Q11 FX (R$/US$): Average: R$ 1.6360 1.8544 Sep Average FX: R$1.7399

1,90

1,80

May/2011: Indebtedness and Liquidity Management Policy Approval1 FX (R$/US$): R$1.6111 FOEX BHKP Europe: US$876/t

Closing: R$1.8544

1,70

1,60

Jul-Aug Average FX: R$1.5809

1,50

1.5345

1,40

Indebtedness and Liquidity Management Policy: 2.0 and 2.5x Net Debt/EBITDA target, leverage cap: 3.5x during growth cycle. Policy available on: www.fibria.com.br/ir

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Debt
Key Indicators
3Q11 vs 2Q11 3Q11 vs 3Q10

Debt
Short Term Debt (%)
19%

(R$ million)

3Q11

2Q11

3Q10

Net Debt/ EBITDA(2) (x)

Gross Debt Cash1

11,314 1,772

10,448 2,496

12,296 2,184

8% -29%

-8% -19%

14% 9% 3,9 4,2

Net Debt

9,542

7,952

10,112

20%

-6% 3Q10 2Q11 3Q11


(2) LTM

3,2 3Q10 2Q11 3Q11

1Includes

the hedge fair value

EBITDA excludes the results from Conpacel and KSR

Debt Amortization Schedule (R$ million)

Debt by Currency and Instrument (%)


Debt by Currency Debt by Instrument 4% 15% 9% 47%

Short term debt: 9% Cash: 1.7x short term debt 7,147 8%

25% 92% 1,000 318 4Q11 2012 599 2013 926 689 2015 635 2016 2017-2021 Local currency Foreign currency Bond BNDES Others Pre payment NCE

2014

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Liability Management
Promises delivered, now more ahead to go

Net Debt/EBITDA (x)

7.8 7.2 7.2 6.5 5.6


Net Debt (R$ bi)

15.7 13.2 13.1 11.0 10.9

4.7 3.9 10.8 3.6 3.2 10.2 2.9 9.9 7.9 7.9
Commitment to investment grade level

4.2

9.5

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Sale of Guaba: US$ 1.4bn Fibria19 Bond: US$ 1.0bn 9.25% 10NC5 Export pre-payment facilities: US$ 1.175bn Fibria20 Bond: US$ 750MM 7.5% 10NC5 Exchange Bond Fibria19: 94% to Fibria20 Operational cash generation Derivatives debt settlement: US$ 2.6bn Debt: lower cost longer tenor Sale of Conpacel/KSR: R$ 1.5bn Fibria21 Bond Fibria21: US$ 750MM 6.75% 10NC5 US$ 500MM Revolving facility + US$ 300MM EPP Covenants: 4.0x YE2011 Tight cost and Capex control 2011 Capex reduced by R$ 201 million Sale of Piracicaba: US$ 313MM

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

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