ApresentaoUBS_GS_Dec09

8/4/2019 ApresentaoUBS_GS_Dec09

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UBS Sixth Annual LAT/EMEA Investor Conference

December 2009


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The information contained in this presentation may include statements which constituteforward-looking statements, within the meaning of Section 27A of the U.S. SecuritiesAct of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of1934, as amended. Such forward-looking statements involve a certain degree of riskand uncertainty with respect to business, financial, trend, strategy and other forecasts,and are based on assumptions, data or methods that, although considered reasonableby the company at the time, may turn out to be incorrect or imprecise, or may not bepossible to realize. The company gives no assurance that expectations disclosed in

this presentation will be confirmed. Prospective investors are cautioned that any suchforward-looking statements are not guarantees of future performance and involve risksand uncertainties, and that actual results may differ materially from those in theforward-looking statements, due to a variety of factors, including, but not limited to, therisks of international business and other risks referred to in the companys filings withthe CVM and SEC. The company does not undertake, and specifically disclaims anyobligation to update any forward-looking statements, which speak only for the date onwhich they are made.

Disclaimer


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Agenda

The Company

Market Positioning

Pulp Market

3Q09 Financials

Recent Events


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The Company


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Market Positioning


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CompetitiveStrengths

Creation of a Winning Player

Pulpproductioncapacity:5.4MT/year(1)

Paperproductioncapacity:313kT /year(1)

Eucalyptusplantation:604thousandha(1)

4plantsandoperationof3portterminals,includingtheonlyspecializedwoodpulpterminalinBrazil,ownedbyus

Highyieldineucalyptusproduction(4055m3/ha/year)andcertifiedforests

Shortharvestcycle:6yearsvs.2570yearsinSouthernU.S.,CanadaandScandinavia

PulpMillPaperMill

BelmonteVeracelCaravelas

PortocelAracruz

PiracicabaJacareiSantos

Trs LagoasConpacel

SuperiorAssetCombination

PortTerminal

DataasofNov.30,2009.1 Note:ExcludingGuaba.

LeadershipinMarketPulp

ScaleandIntegratedOperations

UniqueForestryManagement:AdvancedForestryTechniquesand

ShortHarvestCycle

ForesttoPort

IntegrationTrough

EfficientLogistics

LowProductionCostDNA

Strong/ReliableCustomerBase

ModernIndustrialPlants


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MarketShare(1)

Undisputable Leadership in the Global Market Pulp

PulpProductionCapacity

0 1.000 2.000 3.000 4.000 5.000 6.000

Stora Enso

Cenibra

West Fraser

Mercer

ENCEGeorgia Pacific

Ilim

IP

Domtar

Canfor

APP

Weyerhaeuser

Suzano

Tembec

CMPC

Botnia

Sodra

APRIL

Arauco

Fibria

BSKP BHKP UKP Mech.

2009Einktons

Source:PYRY,2007/AsfromMarketPulp:PulpandPaperProductsCouncil (PPPC)2009andAracruz.Note:Capacityabovementione doesnot includetheGuaba unit.1 MarketShareestimatedconsidering2009nominalcapacity.

5,400

Dominant Position in a Growing Market

1st

~Twicethesize

5,19,7 13,8

16,1

33,443,1

49,5 49,1

1995 2003 2007 2008BEKP Total Market Pulp

PulpDemand(inktons)

CAGR9508:9%

CAGR9508:3%

Growth0708:16%

Growth0708:(1%)

3%

11%

22%

34%

Total

Pulp:

188millionMT

TotalHardwood

Pulp:

25millionMT

TotalMarket

Pulp:

49millionMT

TotalEucalyptus

Pulp:

16millionMT


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253 296

139 177305

244 221157 123 93 82

233 159

279 239103

163 184

98 122 141 124

486455 418 416 408 407 405

255 245 234 206

Wood Others

Low Production Cost DNA

Unique Expertise Enabling the Lowest Cash Cost in the Market and High Profitability

1Source:Companies earningsreleases,HawkinsWrightandBanco CentraldoBrasil.2 Source:HawkinsWright,July2009.Note:EBITDAMarginconsidersAracruz andVCPcombined.

CashCost2Q09(US$/t)

HardwoodCashCost(US$/t)vs.Capacity(kT)2Q09

CashCosts(2)

2,35

2,933,07

2,93

2,43

2,18

1,951,84

2,08

2001 2002 2003 2004 2005 2006 2007 2008 LTM

6M09

45% 48%

50%

47%

43%42% 41%

36%

30%

EBITDAMargin(%)

Avg.BEKPPulpPrices(US$/ton)

Avg.FXRate(R$/US$)

Iberia

0

100

200

300

400

500

600

0 2.000 4.000 6.000 8.000 10.000 12.000

Iberia

206

479 468510

531

594648

711

778

611

Fibrias Marginvs.MacroeconomicFundamentals(1)

Capacity(kT)

US$/ton


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State-of-the-Art Production Facilities

ModernPlants

Advanced Technology and Production Process Lead to Lower Usage of Raw Materials,Reducing Costs

andAllowingforaUniqueTrackRecordofQualityProducts

Streamlinedandefficientoperationsduetomodernplants

Environmentalfriendly

productionprocess

Reducedemissionsanddispositionofresidues

Efficientuseofchemicals

CompetitiveAdvantages

AracruzCapacity2.3mtTechnicalage:9

Trs LagoasCapacity1.3mtTechnicalage:0

JacareCapacity1.1mtTechnicalage:5

AveragePlantCapacity(000tons)

2,500

2,000

1,500

1,000

500

40 30 20 10

Russia

Japan

USASweden

CanadaPortugalFinland

FranceSpain

ChileSouthAfrica China

Brazil

Indonesia

Uruguay

Technicalageoftheequipment(years)

LARGESTSINGLE

LINEPULP

PRODUCTION

FACILITYINTHE

WORLD

1 LasttwelvemonthsendingJune30,2009.

VeracelCapacity1.1mtTechnicalage:3

BESTYIELDPER

HECTARE OFTHE

WORLD

Indonesia


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1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Expected

Aracruz VCP Fibria

Unique Brownfield Potential Growth

Fibria has the Best Sites Ready to Almost Duplicate Capacity

Inmillionoftones

HistoricalandPlannedCapacityIncrease

1978:Startupofmill"A"atAracruz (Barra doRiacho)unit

1988:AcquisitionofCelpav 1992:AcquisitionofPapel Simo (Jacare unit) 1996:NewpulplineatJacare mill 1991:Startupofmill"B"atBarra doRiacho unit 2003:ExpansionofJacare mill 2003:AcquisitionofRiocell (Guaiba Unit) 2005:StartupofVeracel 2002:Startupofmill"C"atBarra doRiacho unit 2007:AssetswapLuisAntnio forTrs Lagoas 2008:EstablishmentofConpacel consortium 2009:StartupofTrs Lagoas mill

5.4

1,5

1,5

1,5

0,7

5,2

Veracel II

Trs Lagoas II

Expansion

BarradoRiacho IV

Losango I

10.6

Bestsitesforadditionalcapacity

Br ow nf iel d B row nfi el d Gr ee nfi el d Br own fiel d


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Efficient and Reliable Logistics Network

Efficient Supply Chain to the Customers

Average

of

145

km

from

forests

to

pulp

mills

Portocel portterminalintheStateofEsprito Santo,islocatedonly1.5kmfromBarra doRiacho plant

Longtermrelationshipwithleadingpapermanufacturersallowsforlowerfreightcost

EfficientandCompetitiveLogistics(1)CompetitiveTransportation(ForestMill Ports)

Base100=March2006Aracruz

(BarradoRiacho)

Jacare

Conpacel

Veracel

Trs Lagoas

Road

Rail

Road

Rail

10%Road90%Barge

1 Bloomberg.

0

100

200

300

400

Mar-06

Jun-0

6

Sep-0

6

Dec-0

6

Mar-07

Jun-0

7

Sep-0

7

Dec-0

7

Mar-08

Jun-0

8

Sep-0

8

Dec-0

8

Mar-09

Jun-0

9

Baltic Dry Index

Fibria's inland/ocean freight, insurance and other


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Pulp Market


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Positive Commodity Cycle and Demand Recovery

Worldmarketpulpshipmentstocapacity WorldP&Wpapershipmentstocapacity

Worldpulpproducers averagedaysofsupply Europeanpulpconsumers daysofsupply

Source: PPPC Source: Utipulp

25

10

20

30

40

50

60

J

an-0

4

M

ay-0

4

S

ep-0

4

J

an-0

5

M

ay-0

5

S

ep-0

5

J

an-0

6

M

ay-0

6

S

ep-0

6

J

an-0

7

M

ay-0

7

S

ep-0

7

J

an-0

8

M

ay-0

8

S

ep-0

8

J

an-0

9

M

ay-0

9

S

ep-0

9

23

15

20

25

30

35

J

an-04

M

ay-04

S

ep-04

J

an-05

M

ay-05

S

ep-05

J

an-06

M

ay-06

S

ep-06

J

an-07

M

ay-07

S

ep-07

J

an-08

M

ay-08

S

ep-08

J

an-09

M

ay-09

S

ep-09

93%

98%

93%95%

88%

92%

89%87%

97%

92%

85%

78%76%

79%77%

73%

79%

89%

78%79%79%

Jan-0

8

Mar-

08

May-0

8

Ju

l-08

Sep-0

8

Nov-0

8

Jan-0

9

Mar-

09

May-0

9

Ju

l-09

Sep-0

9

85%

93%94%

91%

89%

82%

86%

83%

79%

90%

77%

88%

92%

86%

95%93%

95%

92%

97%

92% 91%

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09


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Listpulpprice(RISI)vs BRL/US$

Pulp Supply / Demand Expected to Rebalance in theMedium Term

MarketPulp:worlddemandgrowth China:Eucalyptuspulpshipments(000t)

Globalmarketrecovery

Demand

Paperdemandrecovery; Chinakeepingupthepace.

Lowconsumersandproducersinventories

Marketdowntimes;

Currency AppreciationoflocalcurrenciesagainsttheUS$.

Successiveannouncements oflistpriceincreases(asofNov.09)

NorthAmerica: US$730/t.

Europe: US$700/t; Asia: US$660/t;

101

146186181192

13213498

6593

210

419

238

307

368

307318307323

256

458

Jan/08

Feb/08

Mar/09

Apr/08

May/08

Jun/08

Jul/08

Aug/08

Sep/08

Oct/08

Nov/08

Dec/08

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Average

320

k tons

Average: 163

k tons

-13%-21% -23%

-10%

-23%

62%

-14% -15%

5,5%

-21%

76%

-0,2%

Total North America Western

Europe

Latin America Japan China

Jan 2009 vs. Jan 2008 9M09 vs. 9M08

+27%

-26%

60

70

80

90

100

110

120

130

Jan

.09

Fe

b.0

9

Mar.

09

Apr.

09

May

.09

Jun

.09

Ju

l.09

Aug

.09

Sep

.09

Oc

t.09

Nov

.09

Europe Lis t Price BRL/USD


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3Q09 Financials


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Paper Market

Papermarketrecovery

Market

Imports more attractive with the US$ devaluation; Demand starting to grow again, but apparent

consumption is still below 2008 levels.Fibria Performance

Sales volume and revenue mix: focus on specialtypapers;

Seasonality: positive impact on sales volume

Paper:SalesandRevenuemix

Paper:Salesvolume(000t)

122

104

110

3Q08 2Q09 3Q09

Sales Volume

50% 49%

20% 21%

28% 30% 30%

49%

24%

3Q08 2Q09 3Q09

Revenues

38% 38%

19% 19%

41% 43% 43%

38%

21%

3Q08 2Q09 3Q09

Specialty/Other

Coated

Uncoated


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Financial Performance

PulpCashCost(R$/t)Netrevenue(R$million)

Pulp:salesvolume(000t) Pulp:salesmix(000t)

Cash cost w/o

stoppages (R$/t)

3Q09

21%

36%11%

30%

North America Asia Brazil Europe

3Q08

38%

16%10%

37%

509

473

426 433

487

422403

521

3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 2Q09 3Q09

1.402

1.471

1.407

3Q092Q093Q08

946

1.3491.276

3Q08 2Q09 3Q09


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Financial Performance

CAPEX9M09:R$1,232millionEBITDA(R$million)andEBITDAmargin(%)

NetIncome(R$million)

-148

-188

-178

181

+47

+52+875

327-99-77

426-204

-325

Adjusted

Ebitda

Non-

recurring

effects / non-

cash

Ebitda Income tax

expense

Exchange

Variation on

Debt

Derivatives Other

Exchange

Variation

Interest on

loan

Income on

financial

instruments

Other

financial

income

Minority

Interest

Other (*) Net income

3Q09

(*) The amount is the sum of the Depreciation, Amortization and Exhaustion.

426389

498

35%

26%30%

3Q092Q093Q08

41%

59%

69%31%

25%

17%

13%

5%

7%

14%

10%

7%

1Q09 2Q09 3Q09

Expansion Forestry Maintenance Other

576

387

269


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221 FX of September 30, 2009 R$ / US$ 1.7781

2 Does not include Sellers Financing

3T09 Cash position R$ 2.6 bi R$ 4.8 bi

Average Maturity 37 months 47 months

Average Cost 2 7.42% p.a. 7.50% p.a.

US$/ BRL 62%/38% 62%/38%

Subordination structure

Original After plan Cash

No Collateral

With Collateral

Receivables

56%

1%

43%

79%

1%

20%

Indebtedness

MaturitySchedule1

4,8

2,8

1,4 1,5

0,9 0,8

0,10,4

4,2

1,81,61,1

1.0

1,41,7

1,1

1,2

0,9

0,60,1

0,4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4,8

2,8

1,4 1,5

0,9 0,8

0,10,4

4,2

1,81,61,1

1.0

1,41,7

1,1

1,2

0,9

0,60,1

0,4

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

EffectsoftheLiabilityManagementPlan

Before the plan x After the plan


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Recent Events


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Recent Events

Dec.09*Fibria listing at Novo Mercado level of Corporate Governance

Nov18Fibria trading start (Bovespa: FIBR3 / NYSE: FBR)

Nov17End of Aracruz trading

Nov12End of withdrawal rights period

Oct29Shareholderes Agreement - VID and BNDES

Aug24Merger of Aracruz shares into VCP approval

Aug24Incorporation proposal for the 0.1347 ratio

Jul02Tender Offer for Aracruz common shareholders

June

12VCP conversion of prefered into common shares

Apr14VCP Capital Increase

Jan20Acquisition by VCP of additional 28% of Aracruz common shares

Date/estimateEvent

*Estimate


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Investor Relations Team:

Marcos Grodetzky IRO

Andr Gonalves IR Manager

Fernanda Naveiro IR Consultant

Anna Laura Linkewitsch IR Specialist

Livia Baptista IR Analyst

Documents

ApresentaoUBS_GS_Dec09