March 2013

Bank of America Merrill Lynch 2013 Brazil Conference

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 3 4

Fibria's Strategy

Pulp and Paper Market

Closing Remarks

Questions & Answers

Agenda

Fibrias Strategy

Fibrias Strategy

OPERATING EXCELLENCE

LIABILITY MANAGEMENT

GROWTH OPPORTUNITIES

Cost control Capex discipline Working capital improvement Free cash flow generation Productivity gains

Liquidity events and FCF of R$ 2.9 billion in 2012 Gross debt reduction Cost of debt reduction Leverage reduction Rating revised to BB+/Positive by Fitch (Feb/13) and BB+/Stable by S&P (Mar/13) Asset light

Pulp: growth with discipline Industry Consolidation Bio-Energy Other Opportunities (Portocel/Land and Forest)

Operating Excellence
Better results achieved by efficiency improvement
PRODUCTION AND SALES VOLUME (000 t) CASH COST (R$/ton)

4,909 5,054 5,184

5,141 5,299

5,357

518

503 471

448

473
2012 Inflation Effect**

2010* Production

2011 Sales

2012

2010*

2011 Historical Value

SG&A (R$ million)

EBITDA (R$ million) AND EBITDA MARGIN (%) 40%

4Q12 EBITDA: R$ 753 mn 41% margin

686

646 605 584 2,526

34%

36%

594

1,964

2,253

2010* Historical Value

2011

2012 Inflation Effect** 2010* 2011* 2012

* Excludes Conpacel | ** IPCA index considered to calculate the inflation effect

Liability Management
Net debt at the lowest level since Fibrias creation and leverage reduced to 3.4x
Net Debt/EBITDA (x) US$*

7.1 6.5 3.8 3.6

Net Debt/EBITDA (x) R$

3.1 2.9

3.4 3.2

4.2 3.8

4.8 4.2

5.2 4.8

4.7 4.2

4.5 4.2

3.4 3.3

Net Debt (R$ Billion)

18% debt reduction (in R$) 25% debt reduction (in US$)
- Dec/12 vs Dec/11: R$1.8 billion net debt reduction, despite the 9% FX impact. - Debt (in US$): > 90% of total

11.0

9.8 8.0

8.0

9.5

9.5 US$ 5.0

9.0

8.5

8.6

7.7 US$ 3.8

2009

2010

Mar/11

Jun/11

Sep/11

Dec/11

Mar/12

Jun/12

Sep/12

Dec/12

FX Rate(R$/US$)
Avg LTM EOP 2.00 1.74 1.76 1.67 1.73 1.63 1.69 1.56 1.65 1.85 1.67 1.88 1.70 1.82 1.96 2.02 2.02 2.03 1.95 2.04

*From June 30, 2012 on, net debt/EBITDA ratio for covenant purposes are calculated in US Dollars and the limit is 4.5x

Hedging Strategy
DERIVATIVES NOTIONAL(1) (US$ Million)

1,230 45

1,084 162 923 151 791 141 580 433 112 321 410 170 Dec/12

1,185 922 772 650

Sep/11

Dec/11

Mar/12 NDF

Jun/12 Zero cost collar

44%

Sep/12

% of exposure hedged

56%

53%

54%

18%

29%

The increase in Zero cost collar operations is linked to the reduced FX volatility This operation minimizes negative impacts in the event of a sudden depreciation of the Real

(1)

Includes Non Deliverable Forwards and US Dollar Option

Rating Fibria vs Peers

Fibria has been reducing consistently its leverage which reached 3.4x as of Dec/2012
Net Debt/EBITDA (x)
5.6 5.2 4.7 4.2 3.9 3.6 3.2 2.9 4.8 4.7 4.5

5.0 4.6

3.4 2.9 2.4

Mar/10

Jun/10

Set/10

Dec/10

Mar/11

Jun/11

Set/11

Dec/11

Mar/12

Jun/12

Set/12

Dec/12

Fibria S&P Moodys Fitch

(1)

Arauco BBB/Negative Baa3/Negative BBB/Stable

CMPC(1) BBB+/Negative Baa3/Negative BBB+/Stable

Klabin BB+/Positive BBB-/Stable

Suzano BB/Negative Ba2/Stable BB-/Stable

BB+/Stable Ba1/Stable BB+/Positive

2012 Results not available

Debt Profile
3,132

Debt Amortization Schedule at

Dec/2012 (R$ Million)

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

2013 Bond

2014

2015 Pre-Payment

2016

2017 BNDES

2018 ECN*

2019

2020

2021

Export Credit/Other
*ECN Export Credit Note

Cost of Debt Foreign Currency (% p.a.)

Debt by Currency

5.5% 5.2%

7%

93%
Local Currency Foreign Currency

Dec/11

Dec/12

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Liability Management
R$ 2.9 billion in free cash flow generation and liquidity events in 2012
2013E Capex: R$ 1.250 bn

(R$ Billion)
0.5

2.9

2.3

1.4

0.2

(1.1) (0.5)

0.2 (0.1)
Working Capital Taxes
(2)

0.8

EBITDA

CAPEX (1)

Interest

FCF

Equity Offering

Forest Sale

(3)

Losango Sale

(4)

Total

Liquidity

Cash position as of Dec/12: R$ 3.0 bn + R$ 1.0 bn revolver credit facility

Asset Light

Search opportunities for land monetization

(1) Includes advance to forest partner program | (2) IR/CS and other | (3) Forestry assets and land in the south of Bahia State | (4) Considers only the receipt of the first payment of R$470 million

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Growth
Fibria is seeking value creation for its shareholders with capital discipline

PULP
- Growth with discipline - Best portfolio of projects

INDUSTRY CONSOLIDATION ?

Potential Growth Prospects

BIO-ENERGY
- Complementary to pulp - Ensyn

OTHER OPPORTUNITIES
Portocel Land and forest

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Sustainability long term goals

Long Term Goals to be met by 2025

1. Reduce by one third the area necessary for pulp production
2. Double carbon sequestration 3. Promote environmental restoration of 40 thousand hectares of proprietary lands 4. Reduce by 91% the amount of solid industrial waste sent to landfills 5. Reach 80% approval of neighboring communities 6. Help the community to make 70% of projects self-sustainable in income generation, supported by the company
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A new added value projected

MAI* Pulp: (adt/ha/year) 12.1 10.6 10.9

15.0

2010
*MAI: Mean annual increment

2015

2020

2025

Expected results in the new forests planted in Fibrias own forests, adopting classical breeding + molecular markers technologies.

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Pulp and Paper Market

Global Paper Consumption

CAGR 1996 2006 Developed Markets: + 1.7% Emerging Markets : + 6.0%
85,291

117,611

CAGR 2007 2016 Developed Markets: - 4,0% Emerging Markets : + 4.1%

114,507

P&W Consumption (000 tons)(1)

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

Developed Markets

Emerging Markets

CAGR 1996 2006 Developed Markets: + 2.4% Emerging Markets : + 6.9%

26,877 15,548

CAGR 2007 2016 Developed Markets: + 1.4% Emerging Markets : + 6.7%

37,250

Tissue Consumption (000 tons)(1)

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

Developed Markets
(1) Source: RISI

Emerging Markets

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Global Market Pulp Demand

Hardwood demand will continue to increase at a faster pace than Softwood

Hardwood (BHKP) vs. Softwood (BSKP) (000 ton)

2011 - 2016 CAGR: Hardwood: +2.3% Softwood: +1.0%
35.000 30.000 25.000 20.000 15.000 10.000 5.000 0

Demand growth rate Growth 19962006

56%

000 ton

1996

2006

2016

Growth 20072016
27%

Hardwood

14.3

22.4

29.9

Eucalyptus

5.4

11.1

21.4

106%

67%

Softwood

16.4

22.0

24.1

35%

7%

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

30.8

44.4

54.0

Hardwood

Softwood

Source: PPPC

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Gross capacity addition should not be counted as the only factor influencing pulp price volatility
New Price Increase:
(as of Mar/13)

1.000 900
Eldorado

2,0 1,8
Guaba II

US$ 820/ton

800

BHKP prices - cif Europe (US$/ton)

700 600 500 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008
APP Hainan Nueva Aldea Santa F Valdivia Kerinci PL3 Fray Bentos Mucuri Veracel

Trs Lagoas

Montes del Plata

1,4 1,2 1,0

Chenming Zhanjiang APP Guangxi

0,8 0,6 0,4 0,2 0,0

2009

2010

2011

2012

2013

2014

2015

Source: Hawkins Wright

Greenfield capacity (000 ton)

18

Rizhao

Maranho

1,6

Capacity closures DO happen

Closures of Hardwood Capacity Worldwide 000 ton

0 -200 -400 -600 -800 -1000 -1200 -1400
2006 2007

-85

-105

-500 -540 -755 -910

- Jari, Brazil - Sappi Cloquet, USA

-1180 -1260
2008 2009 2010 2011 2012 2013E

Source: PPPC and Fibria

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Fibria: Competitive Position on the Cost Curve

564
72 126 492 435 484 43 86 422 44 450 35 434 36 377 47 330 64 314 52 318 63 62 260 227

289

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

Cash Cost (US$/t)

Delivery (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, December 2012) | Fibrias 2012 cash cost divided by FX considered in the report R$/US$ 2.08

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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 Softwood (BSKP) Market Pulp

North American Pulp Mills

Source: Pory

Other Pulp Pulp Mills

North American Pulp Mills

Other Pulp Pulp Mills

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China
Per Capita Consumption of Tissue by Region, 2012(1)
Kg/capita

World Tissue Consumption, 1991-2011(1)

35 30 25
Million tons

24.3

Average Growth Rate +3.8%a.a.

14.8

14.6 11.1 6.3 6.1

20 Growth Potential 15 10
4.4 2.2 L. America N&M East 0.8 Asia Far East

5
0.6

0
W. Europe Oceania N. America E. Europe Africa Japan China

1991 N.America Japan

1996

2001

2006 E.Europe Asia FE

2009 L.America Oceania

2010 NME Africa

2011

W.Europe China

(1) Source:

RISI

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China
Chinas Market Share of Market Pulp Shipments (%)(1)

8.000 26% 25% 6.000 21% 18% 4.000 14% 17% 2.000 12% 15% 16% 15% 19% 20% 26% 26% 25% 26%

Latin America is the main supplier of pulp to China

0 2005 2006 2007 2008 2009 2010 2011 2012

Eucaplyptus ('000 t)

Hardwood ('000 t)

(1) Source: PPPC Global 100 Report

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Closing Remarks

Fibrias Key Messages

Continuous focus on operating excellence

Free cash flow generation

Leverage reduction

Investment Grade Recovery

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Questions & Answers

Investor Relations
E-mail: ir@fibria.com.br Phone: +55 11 2138-4565 Website: www.fibria.com.br/ir

THANK YOU
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