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Corporate PresentationJuly 2010
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Disclaimer
The information contained in this presentation may include statements which constituteforward-looking statements, within the meaning of Section 27A of the U.S. Securities Actof 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, asamended. Such forward-looking statements involve a certain degree of risk anduncertainty with respect to business, financial, trend, strategy and other forecasts, andare 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 torealize. The company gives no assurance that expectations disclosed in this presentation
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will be confirmed. Prospective investors are cautioned that any such forward-lookingstatements are not guarantees of future performance and involve risks anduncertainties, 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 ofinternational 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 toupdate any forward-looking statements, which speak only for the date on which they aremade.
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Agenda
The Company
Market Positioning
Pulp and Paper Market
3
1Q10 Financials
Corporate Restructuring
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The Company
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VCP and Aracruz merged to create Fibria
Shareholder Structure
VotorantimIndustrial S.A.
BNDESPar Free Float
29.34% 30.42% (1) 40.17%
Treasury
0.07%
5
Veracel CeluloseS.A.
50.0%50.0%
Conpacel
(1) Position as of June 30, 2010. BNDESPar has 21% linked to a shareholders agreement with VID during the first 3 years, and 10.9% during the following 2 years.
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Improved Corporate Governance
Board Advisory CommitteesBoard of Directors
Audit and Risks
Personnel and Remuneration
Alexandre Gonalves Silva Indicated by Votorantim
Alexandre Silva DAmbrosio Indicated by Votorantim
Armando Mariante Carvalho Junior Indicated by BNDES
Eduardo Rath Fingerl Indicated by BNDES
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Finance
Sustainability
Joo Miranda Indicated by Votorantim
Jos Armando de Figueiredo Campos Independent Member
Jose Luciano Penido Chairman of the Board
Raul Calfat Indicated by Votorantim
Wang Wei Chang Indicated by Votorantim
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Market Positioning
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Creation of a Winning Player
Competitive Strengths
Pulp Mill
Paper Mill
BelmonteVeracelCaravelas
Portocel
Superior Asset Combination
Port Terminal
Leadership in MarketPulp
Scale and IntegratedOperations
Low ProductionCost DNA
8
Pulp production capacity: 5.4 MT / year
Paper production capacity: 358 kT / year
Total area: 1.0 million ha
(1)
|Eucalyptus plantation: 585 thousand ha(1)
4 plants and operation of 3 port terminals, including the only specialized woodpulp terminal in Brazil, owned by us
High yield in eucalyptus production (avg 45 m3/ha/year) and certified forests
Short harvest cycle: 6 years vs. 25-70 years in Southern U.S., Canada
and Scandinavia
AracruzPiracicabaJacareiSantos
Trs LagoasConpacel
Data as of March 31, 2010.
(1)Does not include partnership program which represents 127 thousand ha.
Unique ForestryManagement:
Advanced ForestryTechniques and
Short Harvest Cycle
Forest to PortIntegration TroughEfficient Logistics
Strong / ReliableCustomer Base
Modern IndustrialPlants
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1.5
Unique Brownfield Potential Growth
Fibria has the Best Sites Ready to Almost Duplicate Capacity
Historical and Planned Capacity Increase
Aracruz IV
Best sites for additional capacity (mt)
AracruzCapacity 2.3 mtTechnical age: 9
Average Plant Capacity(000 tons)
2.500
2.000Trs Lagoas
i
5.3
9
Veracel II
Trs Lagoas II
Losango I
Brownfield Brownfield Greenfield Brownfield
Source: Fibria
1.500
1.000
500
40 30 20 10
Russia
Japan
USASweden
CanadaPortugal
FinlandFranceSpain
ChileSouthAfrica
China
Brazil
Indonesia
Uruguay
Technical age of equipment (years)
.Technical age : 0
JacareCapacity 1.1 mt
Technical age : 5
VeracelCapacity 1.1 mt
Technical age : 3
Capacity 1979 - 2009 CAGR: 3.6% Expansion
0.8
1.5
1.5
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Undisputable Leadership in the Global Market Pulp
Pulp Production Capacity
2009E in ktons
5,400
Dominant Position in a Growing Market
1o
~ TwiceThe size
10Source: PYRY, 2007 / As for Market Pulp: Pulp and Paper Products Council (PPPC) 2009 and Fibria.(1) Market Share estimated considering 2009 nominal capacity.
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Low Production Cash Cost DNA
Cash Costs (2)Fibria's Margin vc Macroeconomic Fundamentals (1)
155
243 238 284 310
178232
178133
320
225199
152 113
238161
118
133151 132
468437 436 423
475
416393
296266 255 232(3)
583
641
705
783
565
769
2,44
2,18
1 95 2,00
Average PriceBHKP (US$/ton) (1)
Exchan e Rate Avera e
11
Iberia
(2) Source: Hawkins Wright Estimate 2T10
Hardwood Cash Cost (US$/t) vs Capacity (kT)
0
100
200
300
400
500
600
0 2.000 4.000 6.000 8.000 10.000 12.000
US$/ton
Iberia
232
Capacidade (kT)
,1,84 1,80(RS/US$)
(1)
1.013 1.115880
2.196
1.697
637
35%
38%
34%
37%
28%
38%
2005* 2006* 2007* 2008 Pro
Forma
2009 1T10
(1) Average Price - FOEX | Exchange rate: Brazilian Central Bank
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Long Term Relationship With Key Clients
Premium Paper Producers Value High Quality Pulp Customized Products
Global Footprint
Supplies customized pulp products to specific paper grades
Sole supplier to key customers focused on eucalyptus pulp to the tissue market
Top 10 main customers represent on average 65% of sales
Tissue
Specialty
Uses of Fibrias Pulp 1Q10
Europe
12
NY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.wor Which Implies in Less Volatility in Sales Volume Throughout Economic Cycles
1 Breakdown of sales destination in 1Q10.
North America27%
Asia23%
Brazil11%
Beijing
Switzerland
SalesDestination (1)
Miami Hong Kong
Hungary
Subsidiaries Representative officesHeadquarters
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Pulp and Paper Market
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Positive Commodity Cycle and Demand Recovery
World P&W paper shipments to capacityWorld market pulp shipments to capacity
91%91%
89%
82%
86%
83%
79%
90%
77%
88%
92%
97%
86%
95%
92%93%
95%
90%92%
90%
86%
98%
91%
95%
87%88%
92%
89%87%
97%
92%
85%
78%76%
79%79%77%
73%
79%79%78%
89%87%
86%
81%79%
88%87%
86%
14
May-0
8
Jun-0
8
Ju
l-08
Aug-0
8
Sep-0
8
Oc
t-08
Nov-0
8
Dec-0
8
Jan-0
9
Fe
b-0
9
Mar-
09
Apr-
09
May-0
9
Jun-0
9
Ju
l-09
Aug-0
9
Sep-0
9
Oc
t-09
Nov-0
9
Dec-0
9
Jan-1
0
Fe
b-1
0
Mar-
10
Apr-
10
May-1
0
May-0
Jun-0
Ju
l-0
Aug-0
Sep-0
Oc
t-0
Nov-0
Dec-0
Jan-0
Fe
b-0
9
Mar-
09
Apr-
0
May-0
Jun-0
Ju
l-0
Aug-0
Sep-0
Oc
t-0
Nov-0
Dec-0
Jan-1
Fe
b-1
0
Mar-
10
Apr-
1
European pulp consumers' days of supplyWorld pulp producers' average days of supply
Source: Utipulp
Source: PPPC Source: PPPC
27
10
20
30
40
50
60
Fe
b-0
5
Sep-0
5
Apr-
06
Nov-0
6
Jun-0
7
Jan-0
8
Aug-0
8
Mar-
09
Oc
t-09
Ma
-10
Source: PPPC
20
15
20
25
30
35
Fev-0
5
Sep-0
5
Apr-
06
Nov-0
6
Jun-0
7
Jan-0
8
Aug-0
8
Mar-
09
Oc
t-09
Ma
-10
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Pulp Supply x Demand Balance Expected to Remain Tight
China: Eucalyptus pulp shipments ('000 t)Market pulp: world demand growth
181192
13213498
6593
210
419
238
307
458
368
307318307323
256233
299
247
153
242229
152
202
1%
14%12%
19%
10%
-29%
Average
169 ktons
Average
305 ktonsAverage
195 ktons
15
Apr-
0
May-0
8
Jun-0
Ju
l-0
Aug-0
Sep-0
Ou
t-0
Nov-0
Dec-0
Jan-0
Fe
b-0
9
Mar-
09
Apr-
0
May-0
9
Jun-0
Ju
l-0
Aug-0
Sep-0
Oc
t-0
Nov-0
Dec-0
Jan-1
Fe
b-1
0
Mar-
10
Apr-
1
May-1
0
Announced list pulp priceEurope list price
Source: Fibria
Source: PPPC Source: PPPC
Source: FOEX
Total North America Europe Latin America Japan China
5M2010 x 5M2009
Successive announcements of list price increases (as ofJune/2010)
North America: US$950/t
Europe: US$920/t
Asia: US$850/t
840
920
350
450
550
650
750
850
950
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Jul/10
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1Q10 Financials
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1Q10 Performance
Pulp sales mixKey figures
1T10 4T09 1T09 1T10vs4T091T10
vs1T09
Pulp production ('000t) 1,314 1,395 1,032 -6% 27%
Pulp sales ('000t) 1,322 1,460 1,164 -9% 14%
Paper production ('000t) 77 88 94 -13% -19%
Paper sales ('000t) 83 111 94 -25% -12%
Net revenues (R$ miliion) 1,675 1,698 1,429 -1% 17%
EBITDA (R$ million) 637 503 378 27% 69%
26%
29%
38%
8%27%
39%
23%
11%22%
34%
32%
12%
1T09 4T09 1T10
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EBITDA (R$ million) and EBITDA Margin (%)Cash cost (R$/t)
EBITDA margin (%) 38% 30% 26% 8 pp 12pp
Financial result (R$ million) (341) (157) (185) - -
Net income (R$ million) 9 35 1,267 -74% -99%
urope razs aor mer ca
473
451
418
1T09 4T09 1T10
-7%
378
503
637
1T09 4T09 1T10
26%30%
38%
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Indebtedness
Average maturity (months)*Debt indicators
(R$ million) 1T10 4T09 1T09 1T10vs4T091T10
vs1T09
Gross debt 13,540 14,661 18,687 -8% -28%
Cash position 2,684 3,968 2,954 -32% -9%
Net debt 10,856 10,693 15,733 2% -31%
Net debt / EBITDA
49
60 62
18
Debt by currency and by typeDebt amortization schedule (R$ billion)
(x) . . . - . x . x
1T09 4T09 1T10
*Does not include the debt from ex Aracruz shareholders
0,8
4,3
2,8
1,4 1,51,6
1,2
2,12,3
2,1
1
1,4
1,8
1,2
3,9
2009 2010 2011 2012 2013 2014 2015 2016-2020
Mar/10Sep/09
62%
38%34%
20%17%
13%
7%2%4%
3%
Pr Pagamento Aquisio da AracruzBonds BNDES
Derivativos ACC/ACENCE OutrosLocal Foreign
By currency By type
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Synergies
3,4
4,24,3
4,5
Status 1Q10:
102% of theprojected curve Others
Synergy curve NPV (R$ billion)
19
0,45
2,3
dec/09 1T10 dec/10 2011 2012 2013 2014
Accumulated Estimated
0,49
27%
23%16%
11%
21%
2% Industrial
Floresry
SG&A
Supply chain
Taxes
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Growth
Expansion projects to benefit fromgrowth in pulp demana
. . .
7.8x
6.3x
5.6x
Net debt / EBITDALiability management
20
LTM-Mar 09 LTM-Dec 09 LTM-Mar 10 Further delevveraging of the
Company
e urn o nves men gra e
Veracel II
1.5 million ton capacity
Negotiation with partner in progress
Trs Lagoas II
1.5 million ton capacity
Required planted area: 145,000 ha
Start of industrial and environmental licensing in 2Q10
Purchase and leasing of land started (50% own and 50%leasing)
Startup forecast: 2015 / 2016
LTM: Last 12 months
Status of the expansion projects
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Corporate Restructuring
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Corporate Restructuring
Event Date
Acquisition by VCP of additional 28% of Aracruz common shares Jan 20, 2009
VCP Capital Increase Apr 14, 2009
VCP conversion of prefered into common shares Jun 12, 2009
Tender Offer for Aracruz common shareholders Jul 02, 2009
Incorporation proposal for the 0.1347 ratio Aug 24, 2009
22
,
Shareholderes Agreement - VID and BNDES Oct 29, 2009
End of withdrawal rights period Nov 12, 2009
End of Aracruz trading Nov 17, 2009
Fibria trading start (Bovespa: FIBR3 / NYSE: FBR) Nov 18, 2009
Approval of the merger of Aracruz into Fibria Dec 22, 2009
Migration to Novo Mercado listing segment at BM&FBovespa May 20, 2010
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Investor Relations Team:
Carlos Aguiar IRO
Andr Gonalves IR General Manager
Fernanda Naveiro Vaz IR Consultant
Anna Laura Linkewitsch IR Specialist
Roberto Costa IR Specialist
Email: [email protected]
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