Corporate Presentation

December, 2015

FIBRIA APP WITH THIS PRESENTATION IS AVAILABLE FOR DOWNLOAD AT APPLE STORE AND GOOGLE PLAY.

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
companys 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.

1
2 Pulp and Paper Market
3 Financial and Operational Highlights
4
Company Overview

Final Remarks

Agenda

Company Overview
4

A Winning Player
Superior Asset Combination

Belmonte
Veracel
Caravelas
Portocel
Aracruz

Main Figures 3Q15 LTM

Pulp capacity

million tons

5.300

Net revenues

R$ billion

9.097

Total Forest Base(1)

thousand hectares

967

Planted area(1)

thousand hectares

539

R$ billion

9.578

1.58

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

Trs Lagoas
Jacare
Santos

Port Terminal

Pulp Unit

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.

Fibrias 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

Fibrias Commercial Strategy

Sales Mix by End Use - Fibria

Highlights

End Use - 3Q15

Region - 3Q15
N.
America
25%

Tissue
50%

Europe
42%

Printing &
Writing

36%
Asia
25%

Specialties

LatAm
8%

14%

Net Revenues by Region - Fibria

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

9%

9%

8%

Low dependence on volatile markets such as China

29%

21%
20% 22% 25%
25% 26% 26% 27% 24% 23% 26% 26% 25%
26%

Low credit risk

26% 26%

100% certified pulp (FSC and PEFC/Cerflor)

18%

10%

9%

10%

30% 22%

8%

9%

29%

8%

31% 31%

10%

9%

10% 10% 10%

9%

19% 23% 27% 27% 17% 24% 25%

47% 42% 42%

46% 42%
44% 44% 42%
43% 43%
39% 40%
37%
35% 36%

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Europe

North America

Asia

Other

Pulp Supply Agreement: Puma Project

Puma Project
Pulp volumes:
Minimum of 900 kt of hardwood for the first 4 years
75% of 900 kt for the fifth year (phase out 1)
50% of 900 kt for the sixth year (phase out 2)

Selling price based on the average net price charged by

Fibria at the Port of Paranagu (FOB Paranagu)
Sales destination: Globally, except for South America
Operational startup: Mar/2016
Agreement benefits:
Logistics and commercial
structure synergies;

Logistics and commercial

optimization and synergies;

Ensure sales volumes;

Support customers growth and

enhance customers needs;

Ensure pulp market access with

Klabin brand.

Potential development of new customers.

Mutual value creation, with better servicing for both Companies customers base
8

Shareholder Structure and Corporate Governance

Votorantim
Industrial S.A. (1)

BNDES
Participaes (1)

Free
Float (2)

29.42%

29.08%

41.50%

General
Meeting
Fiscal
Council
Board of
Directors

Finance
Committee

Statutory
Audit
Committee

Personnel
and
Remuneratio
n Committee

Sustainability
Committee

Innovation
Committee

30%
independent
members

100%
independent
members

50%
independent
members

45%
independent
members

Listed on Novo Mercado,

highest level at BM&FBovespa:

Only 1 class of shares 100% voting rights

100% tag along rights (Brazilian corporate law

establishes 80%)

Policies approved
by the Board of Directors:

Board of Directors with minimum 20% independent

members

Financial Statements in International Standards IFRS

Adoption of Arbitration Chamber

SEC Registered ADR Level III program

20% independent
members
Role of CEO and
chairman is split

Indebtedness and Liquidity

Market Risk Management
Risk Management
Corporate Governance
Related Parties Transactions
Anti-Corruption
Information Disclosure
Securities Trading
Antitrust
Genetically Modified Eucalyptus
Dividend Policy
NEW

(1) Controlling group (2) Free Float 41.44% + Treasury 0.06%

Approval of Dividend Policy

Commitment to Corporate Governance best practices.

Proposed dividends based on cash generation, taking into consideration

the companys strategic planning and in line with its policies, notably the
Indebtness and Risk Management policies.
Preserving Investment Grade.

Extraordinary dividend if Policy criteria are met.

10

Pulp and Paper Market

11

The better than expected scenario has become a reality again in

2015
BHKP CAPACITY CHANGES
EXPECTED SCENARIO FOR 2015 IN DEC14
Suzano Maranho

750

Portucel Cacia

30

Old Town (Expera)

85

Sappi Cloquet
April Rizhao
Ence Huelva
Possible closures*
Net
BEKP demand growth**

500
200

Eldorado

200

Eldorado

265

CMPC Guaiba II

750

CMPC Guaiba II

750

Montes del Plata

Oji Nantong

265

Oji Nantong

400

Suzano Maranho

400

Montes del Plata

YEAR-TO-DATE SCENARIO IN 2015

Portucel Cacia

30

Old Town (Expera)

40
40

Ence Navia

115

115

Sappi Cloquet

-65

April Rizhao

-315

Ence Huelva

-400 to -800

Unexpected Downtimes
1,415 to 1,815

1095

*Based on annual closures average (400,000 to 800,000 t/yr)

**Source: PPPC Outlook for Eucalyptus Market Pulp December 2014

-190
-315
-385

Indonesia, China,
Uruguay and Brazil

Net

1450

Estimated BEKP demand growth**

1500

**Source: Fibria estimates based on PPPC Market Pulp World 20 (BEKP

9M15: + 1.105 kt )

12

 and so has been the price scenario

BHKP Delivered to Europe (USD/t)
804

808*
783*

781
750

738

735

726

721
709

1Q15

2Q15

3Q15

Consultants average at the end previous year

4Q15

Annual 2015

Realized PIX/FOEX price

* Average until 11/24/15

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2014 for 2015 prices)

13

But this time, demand has been the good surprise

BHKP CAPACITY CHANGES
EXPECTED SCENARIO FOR 2015 IN DEC14
Suzano Maranho

750

Portucel Cacia

30

Old Town (Expera)

85

Sappi Cloquet
April Rizhao
Ence Huelva
Possible closures*
Net
BEKP demand growth**

500
200

Eldorado

200

Eldorado

265

CMPC Guaiba II

750

CMPC Guaiba II

750

Montes del Plata

Oji Nantong

265

Oji Nantong

400

Suzano Maranho

400

Montes del Plata

YEAR-TO-DATE SCENARIO IN 2015

Portucel Cacia

30

Old Town (Expera)

40
40

Ence Navia

115

115

Sappi Cloquet

-65

April Rizhao

-315

Ence Huelva

-400 to -800

Unexpected Downtimes
1,415 to 1,815

1095

*Based on annual closures average (400,000 to 800,000 t/yr)

**Source: PPPC Outlook for Eucalyptus Market Pulp December 2014

-190
-315
-385

Indonesia, China,
Uruguay and Brazil

Net

1450

Estimated BEKP demand growth**

1500

**Source: Fibria estimates based on PPPC Market Pulp World 20 (BEKP

9M15: + 1.105 kt )

14

Good demand from all major markets

Hardwood and Eucalyptus Shipments (000 t and % change 9 months 2015 vs. 2014)

1.200

6.8%

8.6%

1.000
800

21.7%
19.2%

600
400
3.6%

200
-2.4%

5.9%

5.0%

6.9%

5.8%

-200
Global

NA

WE

BHKP

China

Rest of the world

BEKP

Source: PPPC World 20

15

Better worldwide macroeconomics are the key drivers

Real GDP % Annual Growth

7,7 7,7

3,6
3,4 3,3 3,4
3,1

0,9

6,8

6,3

2,8
2,4 2,6

2,2

1,5 1,6

7,3

1,5

-0,3
-0,8
World

Euro Area
2012

USA
2013

2014

2015

China

2016

Source: International Monetary Fund, World Economic Outlook Database, October 2015

16

But the special focus is on Europe

Real GDP % Annual Growth

7,7 7,7

3,6
3,4 3,3 3,4
3,1

0,9

6,8

6,3

2,8
2,4 2,6

2,2

1,5 1,6

7,3

1,5

-0,3
-0,8
World

Euro Area
2012

USA
2013

2014

2015

China

2016

Source: International Monetary Fund, World Economic Outlook Database, October 2015

17

But the special focus is on Europe

Hardwood and Eucalyptus Shipments (000 t and % annual growth and YTD)

400

6.0%

3.3%

3.7%

5.0%

200

0
-0.3%

-0.8%

-0.8%

-0.6%

-200
2012

2013

2014

BHKP

YTD 2015*

BEKP

*YTD: 9M15 vs. 9M14

Source: PPPC World 20

18

So, what can we expect for 2016?

BHKP CAPACITY CHANGES
EXPECTED SCENARIO FOR 2016 IN NOV15

Altri Celbi

Woodland

Altri Celbi

30

Old Town (Expera)

-40
-90

-55

Verso Wickliffe

APRIL Kerinci

-120

APRIL Kerinci
Possible closures*
385 to 985

Net
BEKP demand growth**

930

1500

*Based on annual closures average (200,000 to 800,000 t/yr)

**Source: PPPC Outlook for Eucalyptus Market Pulp May 2015 (930kt) and
Fibrias estimates

-40
-90

-55

-400 to -800

30

Woodland

Verso Wickliffe

Possible closures*

660

Klabin

660

Klabin

800

CMPC Guaiba II

800

CMPC Guaiba II

Old Town (Expera)

FIBRIAS EXPECTED SCENARIO FOR 2016

Net
BEKP demand growth**

-120
-200
985
1500

Positive Supply/Demand Balance!

19

Global Market BEKP Demand

Shipments of Eucalyptus Pulp
2014 vs. 2013(1)

10M2015 vs. 10M2014(2)

11%
1,734 kt

8%
20%
6%
5%

717 kt

386 kt

1,176 kt

13%

19%

537 kt

6%

80 kt

92 kt

Total

(1)

North
America

Western
Europe

China

Others

Source: PPPC World 20 December/2014

January/2015

Total
(2)

North
America

5%
247 kt

593 kt

Western
Europe

5%
186 kt

China

Others

Source: PPPC World 20 Oct/2015

Paper Capacity increase in China

2014

2015

Total

FORECAST

REALIZED

PREVIOUS
FORECAST

LATEST
FORECAST

PREVIOUS

LATEST

Woodfree

256

256

760

760

1,016

1,016

Tissue

1,390

1,278

727

1,365

2,117

2,643

Cartonboard

2,100

1,326

380

730

2,480

2,056

Total

3,746

2,860

1,867

2,855

5,613

5,715

Source: Fibria and Independent Consultants

20

China GDP vs. Eucalyptus Shipments (base 100)

250

203

200

150

100

76
50

China GDP

Eucalyptus Shipments

Source: Bloomberg and PPPC.

21

Commodities Differentiation
China GDP breakdown
8%

4%

4%

3%

3%

2%

2%

2%

2%

2%

2%

44%

47%

48%

48%

48%

48%

48%

46%

47%

45%

45%

49%

49%

48%

49%

49%

50%

50%

52%

51%

53%

53%

2008A

2009A

2010A

2011A

2012A

2013A

2014A

2015E

2016E

2017E

2018E

Consumption

Investment

Net Exports

China commodity demand - basis 100

Corn

Soybeans

Wheat

Crude oil

Iron ore

Sugar

BHKP
248
201
194
172
152
124
115

100
2008A

2009A

2010A

2011A

2012A

2013A

2014A

2015E

2016E

2017E

2018E

Source: Ita Macroeconomic Department and PPPC Oct/15

22

Technical Age and Scale in the Market Pulp Industry

Further closures are expected due to lack of adequate investments in the industry
Hardwood (BHKP) Market Pulp
3.000

Softwood (BSKP) Market Pulp

PM Capacity, 1000 t/a

3.000

Weighted average
technical age 12.3 years

PM Capacity, 1000 t/a

Weighted average
technical age 21 years

STRONG

2.500

STRONG

2.500
Aracruz

2.000

1.500

2.000

Weighted average
capacity 1,277,000 t/a

Trs Lagoas

1.500

Jacare

1.000

Veracel

1.000
Weighted average
capacity 527,000 t/a

Ence
Huelva

500

500

Old
Town

30

WEAK

20

10

0
30

WEAK

25

Technical Age, years

North American Pulp Mills

Other Pulp Mills

Closures

20
15
10
Technical Age, years

Grade Switch

On & Off

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

23

Capacity closures DO happen

Closures of Hardwood Capacity Worldwide

(000 ton)
-85

-105

-540

-445

-500

-750
-910
-1,085
-1,180
-1,260
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015-2017 E

(1)

Source: PPPC and Fibria

(1)

As of April 2015

24

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
APP South
Sumatra(2)

1.000

Horizonte II

900

1,6

Rizhao

Maranho

Trs
Lagoas

700
APP
Hainan

600
500

400

Santa F

1,4

Montes
del Plata Guaba II

Eldorado

Fray
Bentos
Mucuri
Veracel Nueva Aldea

Valdivia

1,8

1,2

Klabin

1,0
Chenming
Zhanjiang

Kerinci
PL3

Capacity (000 ton)

BHKP prices - CIF Europe (US$/ton)

800

2,0

0,8

APP Guangxi

300

0,6

Oji
Nantong

200

0,4

100

0,2

0,0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (July/15), Brian McClay (Sept./15) and RISI (May/15)
(2) Partially integrated production.

25

In the last 15 years, pulp volatility has been just 8%...why?

BHKP - FOEX Europe (base 100)

160

CPI (base 100)

120

80

40

Market price closer to producers marginal cost

The marginal cost producers are based in Europe and North America

Flattish industry cost curve

Higher flexibility to adjust supply side during imbalanced market
Lower dependency on Asian market (~25%) compared to hard commodities (70%+)
Market end users are linked to consumer goods, such as tissue
Incipient pulp price futures market and low liquidity
Source: Bloomberg November 26, 2015

Oct-15

May-15

Dec-14

Jul-14

Feb-14

Sep-13

Apr-13

Nov-12

Jun-12

Jan-12

Aug-11

Mar-11

Oct-10

May-10

Dec-09

Jul-09

Feb-09

Sep-08

Apr-08

Nov-07

Jan-07

Jun-07

Aug-06

Mar-06

Oct-05

May-05

Dec-04

Jul-04

Feb-04

Sep-03

Apr-03

Nov-02

Jun-02

Jan-02

Aug-01

Mar-01

Oct-00

May-00

Dec-99

Lowest volatility among commodities

100 = January 1, 2012

201

123

Nov-15

Sep-15

Oct-15

Jul-15

Aug-15

Jun-15

Apr-15

May-15

Jan-15

Feb-15
Mar-15

Nov-14

BHKP - FOEX Europe

Dec-14

Sep-14

Oct-14

Jul-14

Aug-14

Jun-14

Apr-14

May-14

Jan-14

Sugar

Feb-14
Mar-14

Nov-13

Dec-13

Sep-13

Oct-13

Jul-13

Crude Oil

Aug-13

Jun-13

Apr-13

May-13

Jan-13

Soy Bean

Feb-13
Mar-13

Nov-12

Dec-12

Sep-12

Oct-12

Jul-12

Iron Ore

Aug-12

Jun-12

Apr-12

May-12

Jan-12

73
64

Feb-12
Mar-12

230
220
210
200
190
180
170
160
150
140
130
120
110
100
90
80
70
60
50
40
30

44
32

Exchange Rate (R$/US$)

Low volatility of hardwood pulp price, even though

new capacities have come on stream during the period.
Source: Bloomberg November 26, 2015

27

The only commodity with lower volatility than FX

Historical Volatility of Commodities (US$)

35%

35%

34%
27%

26%

24%

24%

24%
16%

14%
6%

WTI
Crude Oil

Sugar

Nickel

Copper

Soy

Iron Ore

LME
Ibovespa
Metals

Cattle

FX

FOEX PIX
BHKP

Since 2009

28

Financial and Operational Highlights

29

Each 5% depreciation of the Real increases EBITDA by around

R$403m (11%) and FCF by R$482 m (45%)

Exchange Rate
Average (R$/US$)

2.00

1.76
670

Fibria net pulp price

(US$/t)

Fibria net pulp price

(R$/t)

1.67

1.95

639

581

2.16

610

2.35

572

3.01

573

584

(2)

456

1,179
912

1,133

1,067

1,311

1,344

1,725

51%
EBITDA Margin

3.39(3)

40%
29%

34%

36%

40%

1,980

56%

39%
4,620

2,526
1,522

1,964

2,253

2,796

2,791
1,551

EBITDA (R$ million)

2009(1)

2010(1)

2011

2012

2013

2014

LTM 3Q15

3Q15

(1) Excludes Conpacel | (2) 2015 market consensus | (3) According to Focus Report (Brazilian Central Bank November 20, 2015)

30

Free Cash Flow

R$ million
1,122(1)
746
399

303

221

-126

57

157

167

234

248

122

117

263

373 344

-12

-408

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

EBITDA Margin
39%

34%

33%

28%

30%

37%

37%

41%

39%

39%

41%

42%

41%

35%

35%

45%

50%

50%

56%

1.63

1.80

1.77

1.96

2.03

2.06

2.00

2.07

2.29

2.27

2.37

2.23

2.27

2.55

2.87

3.07

3.54

Average FX
1.67

1.60

(1) Before expansion capex

31

Free Cash Flow(1) LTM 3Q15

R$ million

4,620

(1,556)

Adjusted
EBITDA

(1)
(2)
(3)

Capex
(ex-H2 project)

( 345 )

Net Interest

2,297
(374)

( 71 )

23

Working
Capital

Taxes

Others

2,150
( 147 )

FCF
(ex-H2 project)

Capex H2

FCF

Not considering dividend payment of R$149 million.

Not considering capex related to the Horizonte 2 project.
Includes other financial results.

32

ROE and ROIC (R$)

ROE = Adjusted EBIT(1)/

Equity before IAS 41(2)

ROIC = Adjusted EBIT(3)/

Invested Capital before IAS 41(2)

31.7%

29.4%

17.8%

4.4%

7.1%

17.7%

6.8%

5.4%

Average
FX

(1)
(2)
(3)

2012

1.67

2013

1.95

2014

2.16

7.6%

2.9%

0.8%
2011

9.1%

LTM 3Q15

2.35

Annualized
3Q15

2011

3.54

Average
FX

3.01

2012

1.67

2013

1.95

2014

2.16

LTM 3Q15

2.35

Annualized
3Q15

3.01

3.54

Adjusted EBITDA CAPEX Net Interest Taxes

International accounting standards for biological assets.
Adjusted EBITDA CAPEX Taxes

33

Cash Production Cost (R$/t) 3Q15

697
34

502
41

3Q14

Inflation

42

FX

16

Lower energy
price

659
(38)
(51)

45

Maintenance
downtimes

Non recurring
wood

608

Non recurring
input
consumption

Non recurring
fixed costs

Total

Management
initiatives

Cash cost
3Q15

Total non
recurring

3Q15 recurring
cash cost

Management initiatives gains mostly offset the inflation impact

34

Cash Production Cost saw a annual increase of 4.7% over the past
6 years
Fibria Cash Production Cost (1) (R$/ton)

CAGR: + 4.7%

570
505
432

448

2009 (2) 2010 (2)

471

473

2011

2012

2013

519

2014

Consistently
controlling the
production
cash cost at a
level below
the inflation
pace.

LTM 3Q15

(1) Constant Currency (2) Excludes Conpacel

35

Net Results (R$ million) 3Q15

1.551

ZCC
swap

(2.202)

Adjusted
EBITDA
3T15

(1)

Exchange
variation
on debt

515

Other
exchange
variation

(362)

MtM
hedge

(209)

Hedge
settlement

current

(34)
(95)

Net
Interest

(601)

deffered

(484)

719

Deprec.,
amortiz. and
depletion

Income
Taxes

Others (1)

Net Income
(Loss)
3T15

Includes non-recurring expenses/non-cash and other financial income/expenses.

36

Capital Structure: Fibria has achieved the lowest leverage ratio among
its Latin American peers
Net Debt/EBITDA (x)(1)

14.8
13.2
11.7

4.8
3.6

4.5

11.1

8.9

4.5

6.2
7.7

3.6
3.23.4
3.1
2.9
3.0
2.7
3.1
2.7
2.4 2.3
2.4
1.7
1.7
4Q11

1Q12

2Q12

3Q12

4Q12

Fibria

1Q13

Suzano

2Q13

3Q13

Klabin

4Q13

1Q14

2Q14

CMPC

3Q14

4Q14

Arauco

3.1
2.9

2.2
1Q15

5.0

4.5
3.8 3.5
3.3
3.0
3.1
2.9

4.2

4.1

3.7

6.4

2Q15

2.1
3Q15

Eldorado

Fibria

Arauco

CMPC

Klabin

Suzano

S&P

BBB-/Stable

BBB-/Stable

BBB-/Stable

BBB-/Negative

BB+/Stable

Moodys

Baa3/Stable

Baa3/Stable

Baa3/Negative

Ba2+/Stable

Fitch

BBB-/Stable

BBB/Stable

BBB+/Stable

BBB-/Stable

BB/Positive

(1)

Fibrias historical data in BRL.

37

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$)

6.3

7.29

5.9

5.5
5.2

8.6

4.11

4.25
3.32

473
2.60

6.3

2.41

414

408

4.6

1.58

268

200
3.2

2009

2010

2011

2012

Gross Debt

2013

2014

3.3(1)

3.4

350

149

2.4

Sep/15

2009

2010

2011

2012

2013

2014

LTM
3Q15

Net Debt

Free Cash Flow

Increase

Interest
Reduction

Cost of Debt
Reduction

These dynamics
creates a virtuous
cycle

(*) Considering the portion of debt in reais fully adjusted by the market swap curves of September. 30, 2015.

38

Recent funding transactions

CRA (Certificate of Agribusiness

Receivables)

Reopening of the Syndicated Export

Prepayment

Amount: R$675m

Tenor: 6 years bullet

Coupon: max 99% CDI

Upsized Amount: US$400m

Book of US$515m

Average term: 5 years

Average Cost: Libor 3M + 1.43% p.a.

LatAm Investment Grade Loan Spread over Libor (bps)

215

Avg. Term
(years)

160

175

140

143

150

Raizen

Ecopetrol

Fibria

Colbun

Braskem

Molymet

Argos USA

113

120

COPEC

39

One of the best performances among Brazilian corporate issuers(1)

746
678
526

550

412
326

333

348

356

Fibria

BRF

Embraer

Globopar

(1) G-spread on November 25, 2015

363

Brazil

Klabin

Vale

Braskem

Gerdau

Petrobras

40

Investment Grade by all rating agencies

Leverage and average cost of debt in US$

Historical G-spread (bps)

7.29

6.3

5.9

1.400

5.5

5.2
4.11

1.200

4.6

4.25

1.000

3.4

3.32

3.3(1)
800

2.60
2.41

600
400

1.58

5.9

200
5.52009

2010
2011
2012
5.2
Leverage4.6

2013

2014

2010

set/15

Cost of debt

3.4

BBB-

2011
Fibria 2020

2012

2013

Fibria 2021

2014

2015

Fibria 2024

3.3(1)

BBB-

Baa3

Obtaining of Investment Grade from the three Rating agencies

41

Fibria has the simplest and most transparent call in the industry

Negative
Pulp supply

Neutral

Positive

Tissue

China

Closures/conversions
Inefficient capacities in China
Demand
Fiber and grade substitution

Pulp price
Brazil GDP

Energy crisis
FX
Capex inflation

Tax

Corporate Governance

Cost inflation
Rating

42

Final Remarks
43

Extraordinary Dividend of R$2 billion approved

DRIVERS
Strong cash generation

Low average cost of debt

Cash position above

minimum cash

Funding status of Horizonte 2 project

Low leverage level

Capital discipline

TIMELINE:
Record date: Nov 30th
Payment dates:
BM&FBovespa: Dec. 9, 2015.
NYSE: Dec. 16, 2015.

Dividend yield* = 7%

* Considering dividend of R$149 million paid in May and the proposed payment of R$ 2 billion on Market Cap. on September 30th, 2015.

44

Fibria is able to create value for its shareholders with capital discipline

FREE CASH FLOW

BIO-ENERGY AND

PULP

INDUSTRY
CONSOLIDATION ?

Growth with discipline

Best portfolio of projects

OTHER OPPORTUNITIES

DIVIDENDS

Complementary to pulp

Portocel

Land and forest

WITHOUT JEOPARDIZING CREDIT

METRICS
45

Horizonte 2 Project
46

What is the importance of growth for Fibria?

Competitiveness

Commercial
positioning

Long-term growth
potential

Wider fixed costs dilution

Cost curve position improvement

Greater bargaining power with suppliers

Follow the growth of strategic customers

Developing new customers

Distribution to new geographic markets

Efficiency and competitiveness gains in logistics

Higher quality in customer service

Greater ability to capture new expansion market windows

Strong M&A position

47

Why expand Trs Lagoas?

ESTIMATED BHKP CAPACITY RANKING 2017 (000T)

Brownfield Project, synergies with current

operations

Modern plant, prepared for potential

expansion

Availability of wood and low average

distance from forest to mill

Forest based on the optionality concept and

prioritizing lease and partnership models

Additional energy surplus of 120 MWh

Start-up: 4Q2017
Capacity: 1.75 million tons

7,950

Fibria
CMPC
RGE/APRIL
Suzano
APP
Eldorado
UPM
Stora Enso
Arauco
Cenibra
ENCE
Altri
IP
Marubeni
Mitsubishi
Oji
Mondi
Nippon Paper
Verso
Resolute
Georgia-Pacific
Portucel Soporcel
Lwart
Pulp Mill Holding
Domtar
Klabin
Others
0

2000

4000

6000

8000

Current Capacity

New Capacity Klabin Agreement

New Capacity

New Capacity Horizonte II Project

Source: Poyry and Fibria Analysis (as of May 2015)

48

Pulp sales destination: Fibria growing where the market grows

37%
42%
19%

24%

36%
25%

4%

9%

Total sales volume distribution

after H2 start up(2)
Current net revenue distribution(1)

(1) Considers 3Q15 last twelve months. | (2) Includes Klabins sales volume

49

Schedule

Purchase of the
industrial plants

Beginning of
infrastructure and
purchase of the TGs

Beginning of forest
machinery deliveries

Beginning of
construction

Negotiations with
concession holders and
Port of Santos tendering

Beginning of
harvest

Beginning of
assembly

Definition of outbound
logistics formats

Initial hiring of harvest

workers

Startup

Utilities clearance
and commissioning

L1 interconnections
during maintenance
downtime

Hiring of operational
team

2Q15

3Q15

2015

4Q15

1Q16

2Q16

3Q16

2016

4Q16

1Q17

2Q17

3Q17

4Q17

2017
50

Forestry base
51

H2 Project will have the forest base ready for the start-up

Forestry base required:

H1:

120,000 ha

H2:

174,000 ha

Total:

294,000 ha

52

Logistics
53

Forestry Logistics
Low average distance from forest to mill

FOREST

MILL

95 km

H1 + H2 consolidated

54

Outbound logistics
Fibria has logistical alternatives on a competitive basis

Data Collection / Preliminary

Analysis

Ports
Highways
Railroads
Waterways

Analysis
Logistics Costs
Opex - Rates
Capex
Qualitative
Modal conditions

Mato Grosso
Brasilia

Gois
Mato
Grosso do
Sul

55

Financials
56

Even more competitive cash production cost w/ H2

BHKP (US$/t)
BHKP
capacity
(000 t)

1,825

1,460

1,035

2,200

4,645

3,470

14,045

Total: 28,680

BHKP (US$/t)

515

507

68

86

440
102

447

China

421

USA

338

Canada

383
25

358

Iberia

Working capital
release: US$10/t

340

326

60

47

280

Chile/Uruguay

Cash Cost (US$/t)

342
13
83

Interest

58

35
49

Capex
Income Tax
SG&A

174

171

151

Brazil

Fibria 3Q15

Fibria w/ H2

232

279

Indonesia

Delivery CIF Europe

Source: Hawkins Wright (Price Forecast October 2015) and Fibrias 3Q15 Earnings Release - FX considered by the consultant at R$/US$3.86. H2
cash cost was estimated according to weighted average cost, after mill balance, converted at R$3.86. Includes energy sales.

57

Expansion CAPEX update

From US$2.5 bi to US$2.2 bi
CAPEX (R$ billion)

Timetable
60%

8.7
2%

7.7
0.2

26%

2.0

0.8

9%

1.7

19%

33%
72%

72%

3%

3%
Original

BRL

USD

EUR

2.5 bn

Revised

USD and others

2015

2016

2017

2018

1%
2019 and
thereafter

2.2 bn

FX and inflation partially offset by the negotiation with suppliers

58

Funding
Cost and maturity:

H2

3Q15

3Q15 + H2

Average Cost (US$ p.a)

3.3%

2.0%

2.8%

Average Maturity (years)

4.3

6.3

5.0

Amortization Schedule 3Q15 Proforma with TLS II US$ million

1,236
revolver

1,111

494

Cash (2)

742

104
Liquidity

2015

204

2016

66

1.320

481

321

2017

2018

BNDES
Capex H2

715

673

576

726

2019
Bond

66

2020
PPE

2021

139

119

2022

2023

NCE

2024

115

103

45

13

2025

2026

2027

2028

ACC/ACE

22

(1) Debt FX 3Q15: 3.9729 / FX considering new funding for the TLS II Project: 3.90 (2) Cash on hands: US$ 994 million

59

Rating agencies understand that the Project will not jeopardize

Fibrias credit metrics

We expect Fibria to continue benefiting from higher operating cash flows which
would allow it to enlarge its Trs Lagoas industrial complex while keeping its debt at
reasonable levels for a low investment-grade rating

Fitchs base case, which assumes that the company builds a new pulp mill (Trs
Lagoas II) starting in 2015 and uses net pulp prices of between USD575 and USD675
per ton during the construction period, results in net leverage reaching 3.5x(1). Net
leverage would quickly decline to around 2.5x(1) once the mill becomes operational
in the second half of 2017

(1) According to rating agency methodology

60

Project financials at a glance

UNIT

R$

US$

k tons

1,850

1,850

Expansion capex(1)

$ billion

8.7

2.2

Expansion capex(1)

$/t

4,702

1,189

Sustaining capex(2)

$/t

193

48

Cash cost(3)

$/t

341

85

MWh

120

120

Pulp production/year

Energy surplus

(1) Includes chemical leasing and investments in order to increase capacity to 1,850 kt/year.
(2) Estimated sustaining capex in perpetuity considering capacity of 1,850 kt/year.
(3) Estimated weighted average cost, after mill balance. Includes energy sales.

61

We dont think that such competitiveness is easily replicable, since the

scenario is becoming more complex
Land

Public funding constraints

Infrastructure/Logistics

Governance standards

Certified wood availability

Cost of capital

Environmental requirements

Credit rating

Although some potential

brownfields are listed,
there are significant
challenges.

Backup
63

Fibrias tax structure

TAX BENEFITS (R$)

Fiscal - annual adjustment
Benefit

Tax loss carry forward and tax credits

Amount

Goodwill
(Aracruz
acquisition)

Forestry Capex
in Mato Grosso
do Sul state

Maturity

Benefit

Amount

Tax loss
carryforward

Annual tax deduction:

R$89 million (tax)
Remaining Balance Sept/15:
R$ 0.899 billion (base)

2015 tax deduction related

to depletion: R$24.4 million

Balance up to set. 15: R$ 369

million (base)

2018

Balance set/2015:
- PIS/COFINS: R$639 million
Accumulated tax
credits

Undefined

- Withholding tax (IR and CSLL):

R$813 million
- Befiex: R$390 million
- Reintegra: R$78 million

TAX PAYMENT (cash basis)

2010

2011

2012

2013

2014

2015

R$ 16 million

R$ 4 million

R$ 15 million

R$ 31 million

R$ 29 million

R$ 51 million

64

Leadership Position
Industry Outlook(1)
Fiber Consumption
406 million t

59%

41%

Recycled Fiber
238 million t

Pulp
168 million t

18%

82%

Mechanical
30 million t

Chemical
138 million t

59%

41%

Integrated Mills
82 million t

Market Pulp
56 million t
54%

46%
Softwood/Other
26 million t

Hardwood
30 million t

33%

67%

Acacia/Other
10 million t

Eucalyptus
20 million t

74%
Other Eucalyptus
Pulp producers:
15 million t

26%

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

65

Global Market Pulp Demand

Hardwood demand will continue to increase at a faster pace than Softwood
Hardwood (BHKP) vs. Softwood (BSKP) (000 ton)

Demand growth rate

40.000
35.000

000 ton

1999

2009

2019

Growth
19992009

Growth
20092019

Hardwood

16.3

24.8

33.8

52%

36%

Eucalyptus

6.0

15.9

24.1

165%

52%

Softwood

19.0

21.4

24.9

13%

16%

Market Pulp

35.3

46.2

58.7

30%

27%

30.000
25.000
20.000
15.000

2014 - 2019 CAGR:

Hardwood: +2.5%
Softwood: +0.8%

10.000
5.000

Hardwood

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

Softwood

Source: PPPC report (Sept. 2015)

Source: PPPC reports. Excludes Sulphite and UKP market pulp (Sept./15)

Paper Production Runnability with BHKP

Source: RISI conference, August 2014.

66

Benefiting From Chinas Growth

Chinas Hardwood Imports of BHKP by Country (1)
(000s t)

World Tissue Consumption, 1991-2013 (3)

(million t)

Latin America is the

leading exporter of BHKP
to China, accounting to
approximately 54% of
China's total imports in
9M15.

9M2014

6.876
6.334

9M2015

3.087

3.680

LTM Growth
Rate +4.2%

30
25
20
15

1.5931.558

BHKP Total

(kg/person/year)

35

10

1.486 1.342

129 139

26 151

USA

Canada

Latin
Indonesia Others(2)
America (1)

5
13

Western
Europe

1991 1996 2001 2006 2009 2010 2011 2012 2013

N.America
Middle East
Oceania

(1) includes South Africa and New Zealand. | (2) Includes China, Japan, Malaysia, Russia, Thailand and Vietnam.

China's Share of Market Pulp (2)

25%
20%

Between 2005 and 2014,

the Chinese market share
of eucalyptus shipments
increased by 19 p.p. (total
market pulp: + p.p.)

22%

21%

23%

23%

W.Europe
Japan
Africa

E.Europe
China

L.America
Asia FE

Per Capita Consumption of Tissue by World Region (3)

23%

(million t)

12
10

17%

(Kg/capita/year)

24

8
15%

12%
10%

14%

15
6

10%

10%
4
5%

15
12
7

0%

5
1

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Eucalyptus

Hardwood

Total

% Compared to the global Market Pulp

N.
West Japan Oceania East LatAm
America Europe
Europe

China

Africa

(1) PPPC Pulp China Flash Report September 2015

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

67