FIBRIA CELULOSE October, 2015
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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 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.
2
3
- Company Overview
- Pulp and Paper Market
- Financial and Operational Highlights
- Final Remarks
Agenda
Company Overview
4
Superior Asset Combination
Main Figures - 2Q15 LTM
Pulp capacity | million tons | 5,300 |
Net revenues | R$ billion | 8.0 |
Total Forest Base(1) | thousand hectares | 967 |
Planted area(1) | thousand hectares | 563 |
Net Debt | R$ billion | 8.2 |
Net Debt/EBITDA (in Dollars)(2) | X | 1.95 |
Belmonte Veracel
Caravelas
Portocel Aracruz
Três Lagoas
Jacareí Santos
Port Terminal Pulp Unit
Source: Fibria
Including 50% of Veracel, excluding forest partnership areas and forest bases linked to the sales of Losango and forest assets in Southern Bahia State.
For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.
Fibria's Units Industrial CapacityVeracel is a joint venture between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year
Fibria's Commercial StrategySales Mix by End Use - Fibria
Highlights
Region - 2Q15 End Use -2Q15
North 24%
Worldwide presence
Strong global customer base
Europe
42%
Asia
Tissue 49%
Printing & Writing
36%
Long-term relationships
Focus on customers with stable business
LatAm
8%
26%
Specialties
15%
Customized pulp products and services
Sound forestry and industrial R&D
Focus on less volatile end-use markets such as tissue
Net Revenues by Region - Fibria
9% 9% 10% 9% 10% 8% 9% 8% 10% 9% 10% 10% 10% 9%
20% 22% 25% 26% 21% 25% 26% 26% 27% 24% 23% 26%26%
Efficient logistics set up
Low dependence on volatile markets such as China
Low credit risk
29%
18%
26% 26%
30%22%
29%
31% 31% 19% 23% 27% 27% 17%24%
100% certified pulp (FSC and PEFC/Cerflor)
44% 44%
43%
43%
46%
42% 39% 40% 47%42%
42%
37%
36%
35%
1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13 1T14 2T14 3T14 4T14 1T15 2T15
Europe North America Asia Other
Pulp Supply Agreement: 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 Paranaguá (FOB Paranaguá)
▶ Sales destination: Globally, except for South America
▶ Operational startup: Mar/2016
▶ Agreement benefits:
Logistics and commercial
structure synergies;
Ensure sales volumes;
Ensure pulp market access with Klabin brand.
Logistics and commercial optimization and synergies;
Support customers' growth and enhance customers' needs;
Potential development of new customers.
Mutual value creation, with better servicing for both Companies customer's base
Shareholder Structure and Corporate GovernanceVotorantim Industrial S.A. (1)
29.42%
BNDES
Participações (1)
29.08%
Free Float (2)
41.50%
Fiscal
Council
General Meeting
20% independent members
Role of CEO and chairman is split
Board of Directors
Finance
Committee
30%
independent members
Statutory Audit Committee
100%
independent members
Personnel and Remuneration Committee
50% independent members
Sustainability
Committee
45% independent members
Innovation Committee
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Listed on Novo Mercado, highest level at BM&FBovespa: Policies approved by the Board of Directors:
Indebtedness and Liquidity
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
Controlling group
Free Float 41.44% + Treasury 0.06%
Market Risk Management
Risk Management
Corporate Governance
Related Parties Transactions
Anti-Corruption
Information Disclosure
Securities Trading
Antitrust
Genetically Modified Eucalyptus
Pulp and Paper Market
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In 2013, we stressed the difference between the expected scenario and the realized one...BHKP CAPACITY CHANGES
Expected scenario for 2013 in Nov'2012
Realized scenario in 2013
Suzano Maranhão 320
Montes del Plata 555
Eldorado
Sappi Cloquet
Jari
-155
-410
1,275
DELAYED
Eldorado UPM Fray Bentos
Sappi Cloquet
Jari
-155
-410
100
1,270
Cellulose du Maroc -140
Sodra Tofte -60
Unexpected Closures
Net BEKP demand growth*
1,585
1,080
Net BEKP demand growth*
605
1,310
As a result we had better prices than expectedBHKP Delivered to Europe (USD/t)
820
814
810
800
790
788
795
784
791
780
770
765
772
767
770
772
760
750
740
1Q13 2Q13 3Q13 4Q13 Annual 2013
Consultants average for 2013 Realized PIX/FOEX price
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