FIBRIA CELULOSE October 22, 2014
DisclaimerThe information contained in this presentation may include statements which constitute forward-looking statements, as defined by 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 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 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 are valid only for the date on which they are made.
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Agenda
Key Highlights - 3Q14 4
Pulp Market 5
3Q14 Results 6
Cash Production Cost 7
Indebtedness 8
Net Result - 3Q14 9
Free Cash Flow 10
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Key Highlights Liability Management• Gross debt reduction of US$ 756 million LTM, equivalent to 18%;
• Year-on-year reduction of 21% in interest expenses in US$;
• Net Debt/Ebitda ratio at 2.5x in US$;
• Early redemption notice of bonds due 2019.
• Record sales volume of 1.372 million tons in the quarter, 5% higher year-on-year;
Pulp Market• Pulp sales reached 5.336 million tons LTM, 2% over the production volume in the same period;
• Pulp inventories at 50 days;
• 9% increase of BEKP global demand y-o-y (8M14 vs. 8M13).
• 3Q14:
Net Revenues: R$ 1,746 million | EBITDA: R$ 613 million | EBITDA Margin: 35% | FCF: R$ 117 million
• LTM:
Net Revenues: R$ 7,040 million | EBITDA: R$ 2,708 million | EBITDA Margin: 38% | FCF: R$ 1,119 million
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Pulp MarketShipments of Eucalyptus Pulp (1)
9% 8M14 vs. 8M13
Fibria's Pulp Inventories - in days (1)
+944 kt
2%
5%
+212 kt
26%
+524 kt
56 56
52
50 50
7%
+185 kt
+24 kt Total North America
Western
Europe
China Other
Sep/13 Dec/13 Mar/14 Jun/14 Sep/14
(1) Source: PPPC World 20 - August/2014
NBSK vs. BHKP - Price (3)
250
1100
(1) Source: Fibria
Sales Distribution 3Q14 - Fibria
200
150
100
50
Spread Sep/14: US$206
Average spread: US$108
1000
900
800
700
600
Europe
By region
North
America
26%
By end-use
Tissue Printing &
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Spread Average spread BHKP NBSK
500
400
39%
LatAm
10%
Asia
25%
55%
Writing
Specialties
18%
(3) Source: FOEX | Average spread in the last 5 years. 5
3Q14 ResultsPulp Production and Sales (000 t) Net Revenues (R$ million)
1,347
1,301
1,271
1,334
1,345
1,372
1,841
1,694 1,746
3Q13 2Q14 3Q14
Production Sales
3Q13 2Q14 3Q14
Cash Production Cost (R$/t)
EBITDA (R$ million) and EBITDA Margin (%)
482
501
559
486 478
502
41%
762
35% 35%
594 613
3Q13 2Q14 3Q14
Cash cost ex-scheduled downtimes Cash cost
3Q13 2Q14 3Q14
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Cash Production Cost (R$/t) - 3Q14
501 5024 18 ( 23 ) 2
3Q13 Maintenance
Downtimes
Wood Utilities Other 3Q14
+ 0.2%
Energy sales and operational efficiency have contributed for cash production cost stability.
(Utilities: 3Q14: R$ 34/t I 2Q14: R$ 36/t I 3Q13: R$ 12/t)
Cash-Cost and Cash COGS** (R$/t)
Inventories turnover
482
559
559
547
502
560
3Q13 2Q14 3Q14
Cash Production Cost Cash COGS
** Cash COGS: COGS excluding deprec./amort./depletion, accrual for losses on ICMS tax credits, freight and other. 7
Indebtdeness3.0
Net Debt (Million)
Net Debt/EBITDA (R$)
Net Debt/EBITDA (US$)
Total Debt and Interest Expenses (Million)
Interest (US$)
63
2.9
8,240
2.3 2.7
2.4 2.5
6,681 7,313
49 50
9,487 8,457 8,574
- 18%
3,695
3,033 2,984
4,254 3,840 3,498
Sep/13 Jun/14 Sep/14
R$ US$
Sep/13 Jun/14 Sep/14
R$ US$
Debt Amortization Schedule (R$ million) Average Tenor (months) and Cost of US$ Debt (% p.a.)
2,797
1,536
(revolver)
Early redemption bond 2019
1,353 1,258
1,449
4.5
3.8 4.0 3.8 (*)
55 57(*)
1,261
(cash)
560
888 842
1,041
616
511
49 6
54 52
Liquidity 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Pre-payment BNDES ECN ACC/ACE Voto IV Bonds
Sep/13 Jun/14 Sep/14 Dec/14
(Pro-forma)
(*) Based on market conditions at September 30, 2014.
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Net Results (R$ million) - 3Q14
613 562 (51)
∆ FX Debt
∆ MtM Debt hedge
(799)
13 (91)
Current
92
(359)
Differed
(475) | 339 | ||||||||
Adjusted | Non-recurring | EBITDA | ∆ FX Debt / | MtM | Net interest | Deprec., | Taxes | Other (1) | Net Profit |
EBITDA | effects/ non-cash | MtM hedge | operational hedge | amortiz. and depletion | (Loss) |
(1) Includes other exchange rate/monetary variations and other financial income/expenses.
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Free Cash Flow (1) - LTMR$ million
2,708
(1,509)
(370)
317
(20) (7)
1,119
Adjusted EBITDA Capex Interest
(paid/received)
Working Capital Taxes Other Free Cash Flow
(1)
R$/ton
507
(283)
59
(69)
(4) (1)
210
Adjusted EBITDA Capex Interest
(paid/received)
Working Capital Taxes Other Free Cash Flow
(1) Does not include: asset sales, expenses on bonds repurchase, expenses related to the REFIS on subsidiaries profits abroad and tax credits from the
BEFIEX program.
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Investor Relations:
Website: http://www.fibria.com.br/riwww.fibria.com.br/ri
E-mail: ir@fibria.com.br
Phone: +55 11 2138-4565
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