Corporate Presentation

February, 2013

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

Shareholder Structure

Votorantim Industrial S.A. 29.42%

BNDESPar 30.38(1)

Free Float 40.20%(2)

Level III
NYSE 31%
Bovespa 69%

EQUITY OFFERING (April 2012)

- 86 million shares issued - Unit price: R$15.83/share or US$8.43/ADR - VID and BNDESPar maintained their
previous stake in the company

Average Daily Trading Volume (LTM): US$ 30 million

(1)

Position as of January 31, 2012. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years (until October 2012) and 11% during the following 2 years (from October 2012 to October 2014). (2) Free Float 40.14% + Treasury 0.06%

Improved Corporate Governance

Highlights
Listed on Novo Mercado, highest level of Corporate Governance at BM&FBovespa
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

Board and Committees

Shareholders Meeting

Fiscal Council

Board of Directors

9 Members: 20% Independent Chairman CEO

Adoption of Arbitration Chamber

Listed in the NYSE Policies approved by the Board of Directors

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

Level III Board Advisory Committees(1)

Audit and Risks Personnel and Remuneration Finance Sustainability Innovation

Executive Officers

Listed in the BM&Fbovespa Sustainability Index

(1) Members performance assessed by independent consulting firm

A Winning Player

Superior Asset Combination

Main Figures 2012

Pulp capacity

million tons

5.250 6.2 970 563 7.7 3.3 3.4

Net revenues
Total area (1) Planted area(1)
Belmonte Veracel Caravelas Portocel Aracruz Trs Lagoas Jacare Santos

R$ billion
thousand ha thousand ha R$ billion X X

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

Port Terminal

Pulp Unit

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

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 (50% JV)

Fibrias Strategy

Clear Leadership Position

Industry Outlook(1)
Paper & Board 402 million t

Market Pulp Capacity Ranking 2012(2) (000t)

Fibria APRIL Arauco

5,250

57% Recycled Fiber 228 million t

43% Pulp 174 million t

Georgia Pacific CMPC Sodra

80% Chemical 140 million t

20% Mechanical 34 million t

Suzano Paper Excellence Weyerhaeuser UPM-Kymmene

37% Market Pulp 53 million t

63% Integrated Mills 87 million t 50% Softwood/Other 26 million t

Stora Enso Domtar Ilim

50% Hardwood 27 million t

IP Mercer ENCE West Fraser

63% Eucalyptus 17 million t

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

37% Acacia/Other 10 million t

Canfor

Metsa Fibre
Cenibra
30%

70% Other Eucalyptus Pulp producers: 12 million t

(1) (2)

1000

2000

3000

4000

5000

6000

Paper&Board, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note Feb 2012 considers 2011 demand Hawkins Wright Outlook for Market Pulp, July 2012

Relevant Market Share and Competitive Position in the Cost Curve

Fibrias Market Share (1)

1000
10% 19%

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

Mill Cash Delivery SG&A Maint Capex Interest Exp

800 600 70 400 200 0 489 427 124 86 422 40 456 41 425 33 33 388 53 323

61 303

52 269

411

66 216

Total Market Pulp: 52.6 million t

Total Hardwood Market Pulp: 26.7 million t

30%

Hardwood Cash Cost (US$/t) vs Capacity (mt)

700 600 Cash Cost (US$/t) 500 400 300 200 100 0 1000 5000 10000 15000 000 tons 20000 Low Cost producers: 15mt 6.0 mt of HW market pulp with total delivered cash cost above US$500/t

Total Eucalyptus Market Pulp: 17.2 million t

(1) (2)

PPPC Special Research Note Feb 2012 considers 2011 demand Source: Mill Cash and Delivery: Hawkins Wright July 2012 Report | SG&A, Maintenance Capex and Financial Expenses: Fibrias estimates | Fibria 4Q12 figures

25000

30000

10

Exchange Rates and Inflation Affect the Cost Structure

Exchange Rate Currencies Evolution versus Dollar (Jan03 = 100)
230

210
190 170 150 130 110 90 70 50

Real: 100%

Canadian Dollar: 50% Chilean Peso: 26%

Rupia: 3%

Cost Structure
Global producers have been impacted by: Wood: cost of land and minimum wage growth above inflation Chemicals / energy / water: global demand for commodities add pressure on main raw materials On top of that, Brazilian producers have also been impacted by: Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices Labor: cost in Brazil in dollar terms is higher than in some developed countries

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Global Presence
Fibrias Commercial Strategy
Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers Long term contracts Competitive logistics set up

25%
N.America

Europe

41%

Nyon Miami

Csomd

24%
Asia

Hong Kong

L.America

10%

So Paulo

Source: Fibria 2012

Fibria Sales Distribution

Fibria Offices

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Pulp and Paper Market

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76,499

1993 1994

Paper Consumption

(1) Source:

RISI

1995
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

CAGR: +1.9%

2006
2007 2008 2009 2010 2011 2012

P&W Consumption (000 tons)(1)

109,791

15,548

1993

1994
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

CAGR: +3.8%

2005
2006 2007 2008 2009 2010 2011 2012

Tissue Consumption (000 tons) (1)

31,766

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Tissue Market
Per Capita Consumption of Tissue by Region, 2010(1)
Kg/capita

World Tissue Consumption, 1991-2011(1)

35 30
Million tons

25 20

23,5

Average Growth Rate +3.8%a.a.

15,6

25
14,6 11,2

15 10

Huge potential growth

5,6 4,4

20 15 10

5 0 L. America Oceania

3,6

3,0 0,7 0,5

5 0
1991 1996 2001 2006 E.Europe Asia FE 2009 L.America Oceania 2010 NME Africa 2011 N.America Japan W.Europe China

N&M East

(1) Source:

RISI

Asia Far East

E. Europe

N. America

W. Europe

Africa

Japan

China

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Market Pulp Demand

Hardwood demand will continue to increase at faster pace than Softwood
Hardwood (BHKP) vs Softwood (BSKP) (000 tons) BHKP vs BEKP vs BSKP Demand Growth (1996 = 100)

35.000 30.000 25.000

2011 -2016 CAGR: Hardwood: +2.3% Softwood: +1.0% Eucalyptus: +4.6%

450 400 350 300

+296%

20.000 15.000 10.000

250 200 150 100

+108% 47%

5.000
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

50
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 BHKP BEKP BSKP
Source: PPPC

BHKP

BSKP

BEKP

BHKP: Bleached Hardwood Kraft Pulp BSKP: Bleached Softwood Kraft Pulp BEKP: Bleached Eucalyptus Kraft Pulp

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Pulp Projects Backlog

Even though there is an extensive pulp projects backlog, there are important question marks regarding new projects
Main Questions About Capacity
Minimum required return for new projects
Closures due to increasing costs worldwide, reduction of maintenance capex (higher technical age of recovery boilers) and exchange rates Fiber substitution: Softwood x Hardwood and Recycled x Virgin Fiber

Main Projects
Project Eldorado Arauco / Stora Suzano Fibria Trs Lagoas II CMPC Guaba II Klabin Paran APP South Sumatra Suzano Piau Cenibra Belo Oriente II Country Brazil Uruguay Brazil Brazil Brazil Brazil Indonesia Brazil Brazil Capacity 1.5 Mt 1.3 Mt 1.5 Mt 1.5 Mt 1.5 Mt ~1.0 Mt 1.5 Mt 2.0 Mt 1.5 Mt 800 kt Timing 4Q2012 2Q2013 4Q2013 3Q2014 4Q2014 2015 2015/16 2Q2016 2016 Status Confirmed Confirmed Confirmed Unconfirmed Unconfirmed Unconfirmed Unconfirmed Unconfirmed Unconfirmed

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FOEX (US$/t) x Net Increases/Closures x Delivered Cash Cost

900

400

235
800 125 55 700

275 195

255 115 200

0 -45 -45

600 -240

-200
500 -265 -255 -400 400 -500 300 -800 -400 -600

200

100 -1125 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

-1000

-1200

Net Closures*

BHKP Europe List Price US$

Canada East delivered cash cost (US$)

Source: Hawkins Wright * Net closures: Canada, USA and Western Europe

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Financial Highlights

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4Q12 Results
Pulp Sales Volume (000 t)
5,357
Record Sales in 2012

Net Revenues (R$ million)

1,853 1,556 1,349
Europe: 41% North Am: 25% Asia: 24% Others: 10%

1,408

1,268

1,510

4Q11

3Q12

4Q12

2012 4Q11 3Q12 4Q12

Cash Cost(2) (R$/t)

EBITDA (R$ million) and EBITDA Margin (%)

41% 446 28% 390 37% 753 573

443

491

4Q11
(2) Cash Cost including downtimes

3Q12

4Q12

4Q11

3Q12

4Q12 20

Debt
Key Figures
(R$ million) Gross Debt Cash(1) Net Debt Net Debt/EBITDA (R$) Net Debt/EBITDA (US$)(2)
(1) Includes (2) Ratio

Debt Amortization Schedule (R$ million) Dec/2012

4Q11 11,324 1,846 9,478 4.8 4.2 4Q12 vs 3Q12 -2% 26% -9% -1.1 -0.9 4Q12 vs 4Q11 -5% 64% -18% -1.4 -0.9

4Q12 10,768 3,023 7,745 3.4 3.3

3Q12 10,955 2,398 8,557 4.5 4.2

3,132

1,560 1,138 1,075 724 677 998 810 654

2013

2014

2015

2016

2017

2018

2019

2020

2021

the hedge fair value considered for covenants verification

Debt Profile
Cost of Debt Foreign Currency (% p.a.) 5.5% 5.2% Average Maturity (Months) Debt by Currency
7%

Debt by Type
6%
17% 8% 43%

73 63
93%
Local Currency Foreign Currency

26% Bond BNDES Others Pre-Payment NCE

Dec/11

Dec/12

Dec/11

Dec/12

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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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