BTG Pactual XVI CEO Conference Brasil 2015

8/9/2019 BTG Pactual XVI CEO Conference Brasil 2015

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2

The information contained in this presentation may include statements whichconstitute 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.

Disclaimer


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3

Company Overview1Pulp and Paper Market2

Financial and Operational Highlights3

Agenda

Final Remarks

4


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4

Company Overview


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5

A Winning Player

Port Terminal Pulp Unit

Três Lagoas

Santos

AracruzPortocel

Caravelas

BelmonteVeracel

Jacareí

Superior Asset Combination Main Figures – 4Q14 LTM

Pulp capacity million tons 5,300

Net revenues R$ billion 7.1

Total Forest Base(1) thousand hectares 961

Planted area(1) thousand hectares 560

Net Debt R$ billion 7.6

Net Debt/EBITDA (in Dollars)(2) X 2.4

Net Debt/EBITDA (in Reais) X 2.7

Source: Fibria

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


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6

Fibria’s Units Industrial Capacity

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


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7

Worldwide presence

Strong global customer base

Long-term relationships

Focus on customers with stable business

Customized pulp products and services

Sound forestry and industrial R&D

Focus on less volatile end-use markets such as tissue

Efficient logistics set up

Low dependence on volatile markets such as China

Low credit risk

100% certified pulp (FSC and PEFC/Cerflor)

Sales Mix by End Use - Fibria

Sales Mix by Region - Fibria

Europe

40%

N.

America

27%

Asia

23%

Other10%

Region - 4Q14

Tissue

56% Printing &

Writing

25%

Specialties

19%

End Use - 4Q14

Highlights

30%20%

29% 29% 24%18%

26% 26% 30% 22%28% 31% 30%

19% 22%26% 27%

37%46%

46% 41%

35% 44%

43% 41% 36%42%

43% 35% 36%46% 42%

39% 40%

22% 25%14% 20%

31% 28%20% 23% 25% 26%

21% 26% 26% 26% 27% 25% 23%

11% 9% 11% 10% 10% 10% 11% 10% 9% 10% 8% 8% 8% 9% 9% 10% 10%

4Q101Q112Q11 3Q114Q111Q12 2Q123Q124Q12 1Q132Q133Q13 4Q131Q142Q14 3Q144Q14

North America Europe Asia Other

Fibria’s Commercial Strategy


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8

(1) Controlling group(2) Free Float 40.14% + Treasury 0.06%

VotorantimIndustrial S.A.

(1)

29.42%

BNDESParticipações (1)

30.38%

FreeFloat (2)

40.20%

• 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

• SEC Registered ADR Level III program

• Indebtedness and Liquidity

• Market Risk Management

• Risk Management

• Corporate Governance

• Related Parties Transactions

• Anti-Corruption

• Information Disclosure

• Securities Trading

• Antitrust

• Genetically Modified Eucalyptus

Fiscal

Council

Board of

Directors

20% independentmembers

Role of CEO andchairman is split

Personnel andRemuneration

Committee

StatutoryAudit

Committee

Finance

Committee

Sustainability

Committee

Innovation

Committee

General

Meeting

Listed on Novo Mercado, highest CG level at BM&FBovespa: Policies approved by the Board of Directors:

Shareholder Structure and Corporate Governance

30%independent

members

100%independent

members

50% independent

members

45% independent

members-


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9Pulp and Paper Market


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Expected scenario for 2013 in Nov’2012

BHKP CAPACITY CHANGES

Realized scenario in 2013

1,270

100

-155

-410

-140

-60

605

1,310

Eldorado

UPM Fray Bentos

Sappi Cloquet

Jari

Cellulose du Maroc

Sodra Tofte

Net

BEKP demand growth*

1,275

320

555

-155

-410

1,585

1,080

Eldorado

Suzano Maranhão

Montes del Plata

Sappi Cloquet

Jari

Net

BEKP demand growth*

DELAYED

Unexpected

Closures

In 2013, we stressed the difference between the expected scenario

and the realized one...

*Source: PPPC Outlook for Eucalyptus Market Pulp November 2012 *Source: PPPC Outlook for Eucalyptus Market Pulp September 2014


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As a result we had better prices than expected

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2012 for 2013 prices)

BHKP Delivered to Europe (USD/t)

765

772

767

784

772

788

814

795

770

791

740

750

760

770

780

790

800

810

820

1Q13 2Q13 3Q13 4Q13 Annual 2013

Consultants average for 2013 Realized PIX/FOEX price


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The “better than expected scenario” happened again last year...

Realized scenario in 2014

1,770

-105

-85

-65

-120

-70

100

235

550

1,100

230

BEKP demand growth

Net

Ence Huelva

Old Town

APRIL Rizhao

Sodra Tofte

Sappi Cloquet

UPM

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

1,7341,380

2,660

-120

-115

560

830

1,275

230

BEKP demand growth**

Net

Sodra Tofte

Sappi Cloquet

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

Expected scenario for 2014 in Dec’13

More unexpectedmill closures

*Partly integrated to existing PM**Source: PPPC Outlook for Eucalyptus Market Pulp November 2013

*Approved license only for 500,000 t/y


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… and also better prices than initially projected

BHKP Delivered to Europe (USD/t)

782

737

696

718

733

768

752

729

734

746

640

660

680

700

720

740

760

780

800

1Q14 2Q14 3Q14 4Q14 Annual 2014

Consultants average for 2014 Realized PIX/FOEX price

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2013 for 2014 prices)


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Then, what about 2015?

1005

-315

-65

115

85

30

200

750

265

750

400

BEKP demand growth**

Net

Possible closures*

Ence Huelva

April Rizhao

Sappi Cloquet

Old Town (Expera)

Portucel Cacia

Eldorado

CMPC Guaiba II

Oji Nantong

Montes del Plata

Suzano Maranhão

-400 to -800

1,415 to 1,815

Expected scenario for 2015 in Dec’14 Realized scenario in 2015

?


*Based on annual closures average (400,000 to 800,000 t/yr)**Source: PPPC Outlook for Eucalyptus Market Pulp September 2014


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Shipments of Eucalyptus Pulp (1)

(1) Source: PPPC World 20 – December/2014

Global Market BEKP Demand

Paper Capacity increase in China

(1) Source: PPPC World 20 – December/2014

2013 2014 2015 Total

FORECAST REALIZEDPREVIOUS

FORECAST

LATEST

FORECAST

PREVIOUS

FORECAST

LATEST

FORECASTPREVIOUS LATEST

Woodfree -25 199 - 256 550 760 525 1,215

Tissue 1,184 833 1,518 1,390 903 727 3,605 2,950

Cartonboard 2,428 2,128 1,300 2,100 300 380 4,028 4,608

Total 3,587 3,160 2,818 3,746 1,753 1,867 8,158 8,773

Source: Fibria and Independent Consultants

2014 vs. 2013

+1,734 kt

+92 kt

+386kt+717 kt

+537 kt

11%

5%

6%

20%13%

Total North

America

Western

Europe

China Others

0

10

20

30

40

50

60

05 06 07 08 09 10 11 12 13 14

Days of Supply

Dec/14: 36 days

Nov./14: 38 days | Dec./13: 38 days

Producer Inventories – Hardwood (1)


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Global Market Pulp Demand

Demand growth rate

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

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

Source: PPPC

Source: PPPC. Excludes Sulphite and UKP market pulp.

NBSK vs. BHKP - Prices(1)

(1) Source: FOEX |Average spread in the last 5 years.

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

Hardwood Softwood

2013 - 2018 CAGR:

Hardwood: +2.8%

Softwood: +0.7%

000 ton 1998 2008 2018Growth1998-2008

Growth2008-2018

Hardwood 15.0 24.5 32.8 63% 34%

Eucalyptus 6.0 14.2 23.4 137% 63%

Softwood 17.6 21.6 24.8 23% 15%

Market Pulp 32.6 46.1 57.1

Paper Production – Runnability with BHKP

Source: RISI conference, August 2014.

400

500

600

700

800

900

1000

1100

0

50

100

150

200

Spread Average spread BHKP NBSK

Average spread:

US$ 109

Spread Dec./14:

US$191


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Technical Age and Scale in the Market Pulp IndustryFurther closures are expected due to lack of adequate investments in the industry…

Hardwood (BHKP) Market Pulp Softwood (BSKP) Market Pulp

STRONGWeighted average

technical age 12.3 years

Weighted average

capacity 1,277,000 t/a

Aracruz

Três Lago as

Veracel

Jacareí

0

500

1.000

1.500

2.000

2.500

3.000

051015202530

PM Capacity, 1000 t/a

Technical Age, years

WEAK

STRONGWeighted average

technical age 21 years

Weighted average

capacity 527,000 t/a

North American Pulp Mills Other Pulp Mills Closures Grade Switch On & Off

WEAK0

500

1.000

1.500

2.000

2.500

3.000

0102030

PM Capacity, 1000 t/a

Technical Age, years

More than 7.7 million tons of capacity above 25 years and with annual capacity below 500,000 t/y.

Old

Town

Ence

Huelva


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Source: PPPC and Fibria

Closures of Hardwood Capacity Worldwide

(000 ton)

Capacity closures DO happen

-910

-85

-1,260

-1,180

-540-500

-105

-1,085

-830

2006 2007 2008 2009 2010 2011 2012 2013 2014-2016 Eas of Dec.14


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

Source: Hawkins Wright (Outlook for Market Pulp, December 2014) | Fibria’s 4Q14 considering a FX of R$/US$2.54. | “Brazil ex-Fibria” 3Q14 considering FX of R$/US$2.27.

Gray bar includes cash expenses as Interest, CAPEX, SG&A and Taxes (Source: RISI and Fibria).

4Q14 net price:

US$ 552/t

W/K

Among the industry’s lowest cash cost producers

498 508456 468

420 404 424 424 406

342315 311 297

235186

71 46

69 41

86 121 34 3841

4855

38 67

111

61

51

119

3918

Cash Cost (US$/t) Delivery (US$/t)

SG&A

Capex

Interest

Income Tax

Interest

Capacity

(k tons):

1,775 705 580 570 1,660 1,055 2,315 335 545 330 7,480 = 31,4053,790 1,015 3,950 5,300


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Gross capacity addition should not be counted as the only factor

influencing pulp price volatility….(1)

List Price bottoming at US$650/t in 2011 and US$724/t in 2014

C a p a c i t y ( 0 0 0

t o n )

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

0

100

200

300

400

500

600

700

800

900

1.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Valdivia

APP

Hainan

Veracel Nueva Aldea

Santa Fé

Mucuri

Fray

Bentos

Kerinci

PL3

Três

Lagoas

Rizhao

APP Guangxi

Chenming

Zhanjiang

EldoradoMontes

del Plata

Maranhão

Guaíba II

APP South

Sumatra(2)

Klabin

Oji

Nantong

B H K P

p r i c e s - C I F E u r o p e

( U S $ / t o n )

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Dec/14), Brian McClay (Jan/14) and RISI (Dec/14)

(2) Partially integrated production


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Lowest volatility among commodities

Change 2014 vs. 2013(3)

Commodities Historical Volatility (US$)(1)

(1) Since 2009 | (2) Except Iron Ore (Average of: Vale, Rio Tinto and BHP) and LME Metals | (3) As of December, 31st

Sugar Iron Ore Crude Oil SoyLME

Metals

Ibovespa Cattle Pulp BHKP

Commoditiy Spot Price -12% -47% -46% -22% - - 23% -3%

S&P Sector Index(2) -12% -48% -43% -21% -8% -3% 21% -

FIBR3|FBR - - - - - - - 18% | 4%

35%30%

26%23% 23% 21%

15%

6%

Sugar WTI CrudeOil

Soy LME Metals Ibovespa Iron Ore Cattle FOEX PIXBHKP


22/4722Financial and Operational Highlights

N t l t i it h t i k i it f hi h th


23/4723

No exposure to eletricity shortage risks, in spite of which the

company has benefited from the sale of its surplus energy

466 472

26

8

( 22 ) ( 7 ) 1

4Q13 Wood FX Utilities Energy

Consumption

Others 4Q14

+ 1.3%

Improved results boosted by energy sales and operational efficiency.

(Utilities: 4Q14: R$37/t I 3Q14: R$34/t I 4Q13: R$16/t)

C h P d ti C t l i f 3 7% th t


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Fibria Cash Production Cost (1) (R$/ton)

Consistently

controlling the

production

cash cost at alevel below

the inflation

pace.

24

Cash Production Cost saw a annual increase of 3.7% over the past

6 years

432 448

471 473

505 519

2009 (2) 2010 (2) 2011 2012 2013 2014

CAGR: + 3.7%

(1) Constant Currency (2) Excludes Conpacel


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2,791

3,530

163

851

(112)

(696)

(504)

(380)

(1,874)

141(54)

Adjusted

EBITDA

Befiex Other non-

reccuring exp.

/non-cash

EBITDA FX Debt /

Hedge

Early prepaid

debt

Net Interest Deprec.,

amortiz.and

depletion

Taxes Others Net Income

Hedge

∆

FX Debt∆

Non-recurring

effects(1) Includes other exchange rate/monetary variations and other financial income/expenses.

Net Results (R$ million) – 2014

(1)

Mandatory dividends of R$37 million.


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Free Cash Flow (1) – 2014

R$ million

(1)

2,791

636989

( 1.591 )( 411 ) ( 136 ) ( 29 ) 12

353

Adjusted

EBITDA

Capex Interest

(paid/received)

Working

Capital

Taxes Others Free Cash Flow 4Q14 receivables Free Cash Flow

(Pro-forma)

Higher sales volume (+107 kt);

Change in cliente mix, with lower receivables forfaiting transactions;

FX effect.

Modernization (trucks);

R&D;

TLS 2 (feasibility study).

2014

Capex includes investment in modernization and higher % of third-party wood, decreasing as from 2016;

Debt service reduction;

Potencial improvement on working capital (customers and suppliers).

2015

(1) Does not include: asset sales, expenses on bonds repurchase and tax credits from the BEFIEX program.


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FX and Pulp Price explain 80% of Fibria’s EBITDA Margin

(1) Excludes Conpacel | (2) 2014 year end market consensus | (3) According to Focus Report (Brazilian Central Bank – Feb. 6th, 2015) | (4) According to Poyry – full cost estimate - includes Manufacturing+ Delivered costs to Rotterdam + Depreciation + ROCE of 9%

Each 10% depreciation of the Real increases EBITDA by approx. R$600 million

1,522

2,526

1,964 2,253

2,796 2,791

2009 (1) 2010 (1) 2011 2012 2013 2014 2015

2.001.76

1.671.95

2.102.29 2.73

(3)

Exchange Rate

Average (R$/US$)

EBITDA Margin

EBITDA (R$ million)

29%40% 34% 36% 40% 38%

Marginal producer cost

(US$/t)(4)

Fibria net pulp price

(US$/t) Market

Consensus

456

670639

581610 572 564

660627

676657

680 676

912

1,1791,067 1,133

1,281 1,310

1,540

Fibria net pulp price

(R$/t)

Capital Structure: Fibria has achieved the lowest leverage ratio among


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Net Debt/EBITDA (x)(1)

Fibria Arauco CMPC Klabin Suzano

S&P BB+/Positive BBB-/Stable BBB+/Negative BBB-/Negative BB/Stable

Moody’s Ba1/Positive Baa3/Stable Baa3/Negative - Ba2/Stable

Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Negative BB/Stable

(1) Fibria’s historical data in BRL. | (2) Market consensus.

Capital Structure: Fibria has achieved the lowest leverage ratio among

its Latin American peers

2.4 2.3

2.72.6

4.84.5 4.5

4.2

1.7 1.7

2.4

2.72.9 3.13.1

3.73.6 3.7 3.6

14.813.2

11.711.1

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 2014

Fibria Suzano Klabin CMPC Arauco Eldorado

2


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Indebtdeness

2.82.7 2.7

2.62.5

2.49,773

8,574 8,327

4,172 3,498 3,135

Dec/13 Sep/14 Dec/14

R$ US$

7,8497,313 7,549

3,351 2,984 2,842


R$ US$

Net Debt/EBITDA (US$)

Debt Amortization Schedule (US$ Million) Average Tenor (months) and Cost of Debt* in US$ (% p.a.)

293

600

893

363

223

364

459

632

375

93

223

600

Liquidity 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Pre-payment BNDES ECN ACC/ACE Voto IV Bonds

(cash)

(revolver)

5255 55


Interest (US$)

- 25%

Net Debt/EBITDA (R$)

(*) Considering the portion of debtin reais fully adjusted by the market swap curves at the end of

each period..

4.3

3.7

3.4

Net Debt (Million)

61

50 44

Total Debt and Interest Expenses (Million)

A consistent and disciplined approach focused on reducing debt


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30

A consistent and disciplined approach focused on reducing debt

and its cost

Debt (US$ million) x Leverage (US$) Interest (US$ million) x Cost of Debt (US$)

Free Cash FlowIncrease

InterestReduction

Cost of DebtReduction

This dynamics

creates a virtuouscycle

8.6

3.1

6.3

2.8

2009 2010 2011 2012 2013 2014

Gross Debt Net Debt

7.5

4.1 4.23.3

2.6 2.5473

414 408350

268200

2009 2010 2011 2012 2013 2014

6.3 5.95.5

5.2 4.63.4*

(*) Considering the portion of debtin reais fully adjusted by the market swap curves of Dec. 31, 2014.


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31

New issuance better priced than Investment Grade issuers

Rating Maturity Volume T-Spread Coupon X Book

Fibria Ba1 / BBB- / BB+ 2024 US$600 mn 275 bps 5.25% 11.5x

Braskem Baa3/BBB-/BBB- 2024 US$500 mn 340 bps 6.45% 11.0x

Petrobras Baa1/BBB/BBB 2024 US$2.5 bn 350 bps 6.28% 3.3x

Klabin BBB-/BBB- 2024 US$500 mn 269 bps 5.25% 6.0x

Samarco BBB-/BBB 2024 US$500 mn 288 bps 5.375% 3.6x

Rating Maturity Volume G-Spread Yield

Fibria Ba1 / BBB- / BB+ 2024 US$600 mn 337 5,14%

Braskem Baa3/BBB-/BBB- 2024 US$500 mn 483 6,58%

Klabin BBB-/BBB- 2024 US$500 mn 373 5,51%

Odebrecht Baa3/BBB-/BBB 2023 US$800 mn(1) 474 6,44%

Petrobras Baa1/BBB/BBB 2024 US$2.5 bn 546 7,22%

Gerdau Baa3/BBB-/BBB- 2023 US$750 mn 361 5,31%

Samarco BBB-/BBB 2024 US$ 500 mn 402 5,69%

(1)

Outstanding: US$102 mn

Secondary Market - As of Feb. 06, 2015

Issuance


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32

…and performing better than Investment Grade issuers

Source: Bloomberg - Feb. 06, 2015.

150

200

250

300

350

400

450

500

550

600

650

02/05/14 02/06/14 02/07/14 02/08/14 02/09/14 02/10/14 02/11/14 02/12/14 02/01/15 02/02/15

G S

p r e a d

Fibria 2024 Braskem 2024 Klabin 2024 Odebrecht 2023 Petrobras 2024


33/47

33

Fibria has the simplest and most transparent call in the industry

Negative Neutral Positive

Pulp supply ✔

Closures/conversions ✔

Inefficient capacities in China ✔

Demand ✔

‣ Fiber and grade substitution ✔

‣

Tissue ✔‣China ✔

Pulp price ✔

Brazil GDP ✔

Energy crisis ✔

FX ✔

Capex inflation ✔

Cost inflation ✔

Rating ✔

Tax ✔

Corporate Governance ✔


34/47

34Final Remarks


35/47

35

Max Value Project – Zero base budgeting

Each expense and capex

need to be explained, not

only the additional ones

▶ Budget developed primarily based on input

consumption indicators

▶ Only one discussion cycle, initially based on

budgetary guidelines

▶ Individual discussion for each expenditure package,

including Sustaining CAPEX and OPEX

▶ Discussion details based on the materiality of the

expense within the package

▶ Robust basis increasing the visibility of the rationale

for the proposed budget amounts

Zero Base Budgeting encourages a questioning and

challenging attitude of the status quo

The assumption for the new process is that the budget for next year is zero.


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36

Max Value Project – Zero base budgeting

33%

100%

43%

23%

Forestry Industrial Logistics/Other Total

15%

30%

50%

65%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2015 2016 2017 2018 2019

Note: (1) Technical Limit potential reflecting 2013 conditions; (2) Coverage of expenses with established Technical Limits (e.g. 374/3233=12%).Source: Fibria, ZBB team analysis.

Value achievement share by category NPV expected curve

Approx. R$1.5 billion NPV


37/47

37

Max Value Project – A hidden asset value

Market Price of own Land as of Sep/14:

R$3.9 billion

Fibria’s

Owned Land

Ha

(‘000)

Book Value

R$/ha

Market Value

R$/ha

Total 491 2,535 7,964

Land sold in 2013 – The Parkia Deal:

- 206k ha;

- Up to R$1.65 billion (~R$8k per ha).

Book Value of own Land as of Sep/14:

R$1.2 billionMarket Price of own Land as of Dec/14:

R$3.9 billion


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38

Max Value Project – Turning areas per hectare into square meter

• The targeted area represents only 0.6% of the land owned by Fibria;

• Real estate thinking: minimum value creation of R$500 million NPV.


39/47

39

PULP

- Growth with discipline

- Best portfolio of projects

BIO-ENERGY

- Complementary to pulp

- Ensyn

INDUSTRY

CONSOLIDATION ?

OTHER OPPORTUNITIES

- Portocel

- Land and forest

PotentialGrowth

Prospects

Fibria is seeking value creation for its shareholders with capital discipline

The maturity of synergies captured since Fibria’s creation improved its


40/47

40

593 593 605 584648 651

900826

766678 699

2009* 2010* 2011 2012 2013 2014

4,600

5,0545,184

5,299 5,271 5,274

2009* 2010* 2011 2012 2013 2014

The maturity of synergies captured since Fibria s creation improved its

operating indicators…

+15%

PRODUCTION VOLUME (000 t)BEST PRACTICES AND OPERATING STABILITY

Historical Value Inflation Effect**

-21%

CASH COST (R$/ton)

Historical Value Inflation Effect**

-21%

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

1,522

2,5261,964

2,253

2,796 2,791

2009* 2010* 2011 2012 2013 2014

29%

40%34% 36%

40% 39%

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

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

432 448471 473 505

519

656 624 596549 545

2009* 2010* 2011 2012 2013 2014


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Fib i ’


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Fibria’s tax structure

Tax benefits (R$)

Fiscal - annual adjustment

Benefit Amount Maturity

Goodwill(Aracruzacquisition)

Annual tax deduction:R$89 million (tax)

Remaining Balance Dec/14:R$1.1 billion (base)

2018

Forestry Capex inMato Grosso doSul state

2014 tax deduction related todepletion: R$37 million

Undefined

Tax loss carry forward and tax credits

Benefit Amount

Tax losscarryforward

Balance up to Dec. 14: R$451million (base)

Accumulated taxcredits

Balance Dec./2014:- PIS/COFINS: R$570 million

- Withholding tax (IR and CSLL):R$681 million

- Befiex: R$455 million

- Reintegra: R$37 million

Tax payment (cash basis)

2009 2010 2011 2012 2013 2014

R$ 7 million R$ 16 million R$ 4 million R$ 15 million R$ 31 million R$ 29 million

Due to productivity gains in its forests, Fibria had the opportunity to


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43

p y g pp y

explore this new ownership model

MAI* Pulp:(adt/ha/year)

10.6 10.9

12.1

15.0 15.0 15.0 15.0 15.0

2010 2015 2020 2025 2030 2035 2040 2045

FIBRIA’S GAINS IN IMACEL DUE TO INVESTMENTS IN BIOTECHNOLOGY (TONS OF PULP/HA/YEAR)

2012 field trials = 11.9

Conservative assumption

*MAI: Mean annual increment

Actions:• Genetic improvement

• Excellence in forestry management

• Superior industrial efficiency

L d hi iti


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44

Leadership position

(1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Global 100 Report December 2014

Recycled Fiber

238 million t

46% 54%

59%

18% 82%

59% 41%

41%

33% 67%

26%74%

Fiber Consumption

406 million t

Pulp

168 million t

Chemical

138 million t

Mechanical

30 million t

Integrated Mills

82 million t

Market Pulp

56 million t

Hardwood

30 million t

Other Eucalyptus

Pulp producers:

15 million t

Softwood/Other

26 million t

Acacia/Other

10 million t

Eucalyptus

20 million t

Industry Outlook(1)

Supply structural changes puts pressure on the industry


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45

Supply structural changes puts pressure on the industry

MARKET PULP CAPACITY RANKING 2014 (000T) MAIN PROJECTS

Project Country Capacity Timing Fiber Status

CMPC Guaíba II Brazil 1.3 Mt 2Q2015 BEKP Confirmed

Klabin Paraná Brazil 1.5 Mt 2Q2016BEKP/

BSKP/Fluff Confirmed

APP South Sumatra Indonesia 2.0 Mt 1Q2017 BHKP Confirmed

Fibria Três Lagoas II Brazil 1.75 Mt - BEKP Unconfirmed

COST CURVE EVOLUTION

U S D / A d t , 2 0 1 3 c o s t l e v e l

Cumulative Capacity Million t/a

Cost position

of marginal

producer

Source: Hawkins Wright , Poyry and Fibria Analysis (as of Dec. 2014).

0 2000 4000 6000

ENCE

Canfor

Resolute Forest

Sodra

IP

Domtar

Mercer

Eldorado

IlimWeyerhaeuser

Stora Enso

Metsa Group

Paper Excellence

Georgia Pacific

UPM-Kymmene

CMPC

Suzano

AraucoAPRIL

Fibria

Bleached Softwood Kraft Pulp (BSKP)

Bleached Hardwood Kraft Pulp (BHKP)

Unbleached Kraft Pulp (UKP)

Mechanical Pulp (MP)

Benefiting From China’s Growth


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46

World Tissue Consumption, 1991-2013 (3)

Per Capita Consumption of Tissue by World Region (3)China's Share of Market Pulp (2)

24

1515

12

7 65

1

N.

America

West

Europe

Japan Oceania East

Europe

LatAm China Africa

10% 10%12%

14%

21%

17%

22%23% 23% 23%

0

2

4

6

8

10

12

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Eucalyptus Hardwood Total % Compared to the global Market Pulp

8.298

3.500

2.039 2.292

245 161 60

8.772

4.246

2.154 2.136

162 59 15

BHKP Total Latin

America

Indonesia Others* USA Canada Western

Europe

2013 2014Latin America is the

leading exporter of BHKP

to China, accounting to

approximately 48% of

China's total imports in

2014.

(Kg/capita/year)

(million t)(‘000s t) (kg/person/year)

Between 2005 and 2014,

the Chinese market share

of eucalyptus shipments

increased by 19 p.p. (total

market pulp: + p.p.)

* includes Russia, China, Thailand and New Zealand.

0

5

10

15

20

25

30

35

1991 1996 2001 2006 2009 2010 2011 2012 2013

N.America W.Europe E.Europe L.America

Middle East Japan China Asia FEOceania Africa

LTM Growth

Rate +4.2%

Benefiting From China s Growth

China’s Hardwood Imports of BHKP by Country (1)

(1) PPPC – Pulp China

(2) PPPC – W20. Coverage for chemical market pulp is 80% of world capacity(3) RISI

(million t)

Global Paper Consumption


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Global Paper Consumption

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

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: + 1.7%

Emerging Markets : + 6.0%

85,291

117,611

15,548

37,474

P&W

Consumption

(000 tons)(1)

Tissue

Consumption

(000 tons)(1)

114,507

CAGR 2007 – 2016

Developed Markets: - 4.0%


CAGR 1996 – 2006



CAGR 2007 – 2016



26,877

Documents

BTG Pactual XVI CEO Conference Brasil 2015