Demonstra

Fibria Celulose S.A.
Consolidated Interim Financial Information at June 30, 2013 and Review Report of Independent Registered Public Accountant firm
Review Report of Independent Registered Public Accountant firm

To the Board of Directors and Shareholders Fibria Celulose S.A.
Introduction We have reviewed the accompanying consolidated interim accounting information of Fibria Celulose S.A., for the quarter ended June 30, 2013, comprising the balance sheet at that date and the statements of income, comprehensive income for the quarter and six-month periods then ended, and the statements of changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation of the consolidated interim accounting information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC) and International Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the consolidated interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim accounting information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34.
Other matters Statement of value added We have also reviewed the consolidated interim statement of value added for the six-month period ended June 30, 2013. This statement is the responsibility of the Company's management, and is required to be presented in accordance with standards issued by the Brazilian Securities Commission (CVM) and is considered supplementary information under IFRS, which do not require the presentation of the statement of value added. This statement has been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that it has not been prepared, in all material respects, in a manner consistent with the consolidated interim accounting information taken as a whole. So Paulo, July 22, 2013
PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5
Carlos Eduardo Guaran Mendona Contador CRC 1SP196994/O-2

Consolidated balance sheet at
In thousands of Reais
Assets Current Cash and cash equivalents (Note 6) Marketable securities (Note 7) Derivative financial instruments (Note 8) Trade accounts receivable, net (Note 9) Inventory (Note 10) Recoverable taxes (Note 11) Assets held for sale Other assets
June 30, 2013
December 31, 2012

(Restated)
January 1 , 2012
(Restated)
st
617,553 1,472,529 26,811 480,342 1,362,467 206,674 589,849 153,686 4,909,911
943,856 2,351,986 18,344 754,768 1,183,142 209,462 589,849 194,526 6,245,933
381,915 1,677,926 31,638 945,362 1,178,707 327,787 644,166 108,062 5,295,563
Non-current Derivative financial instruments (Note 8) Related parties receivables (Note 13) Deferred taxes (Note 12) Recoverable taxes (Note 11) Advances to suppliers Judicial deposits (Note 19) Other assets Investments (Note 14) Biological assets (Note 15) Property, plant and equipment (Note 16) Intangible assets (Note 17)
77,237 6,761 1,195,107 712,382 705,649 167,323 165,659 40,674 3,354,193 10,850,342 4,674,690 21,950,017
26,475 6,245 879,606 657,830 740,310 157,567 172,612 40,674 3,325,604 11,174,561 4,717,163 21,898,647 28,144,580
43,446 5,469 995,368 677,232 760,611 137,060 95,060 7,506 3,264,210 11,841,247 4,809,448 22,636,657 27,932,220
Total assets
26,859,928
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Consolidated balance sheet at
In thousands of Reais (continued)
Liabilities and shareholders' equity Current Loans and financing (Note 18) Trade payables Payroll, profit sharing and related charges Taxes payable Derivative financial instruments (Note 8) Liabilities related to assets held for sale Dividends payable Other payables
June 30, 2013
December 31, 2012

(Restated)
January 1 , 2012
(Restated)
st
794,471 538,271 107,837 44,483 92,641 470,000 1,874 125,226 2,174,803
1,138,005 435,939 128,782 41,368 54,252 470,000 2,076 204,833 2,475,255
1,092,108 373,692 134,024 53,463 163,534 1,520 142,367 1,960,708
Non-current Loans and financing (Note 18) Derivative financial instruments (Note 8) Taxes payable Deferred taxes (Note 12) Provision for contingencies (Note 19) Other payables
9,141,751 418,587 79,137 173,736 83,500 184,644 10,081,355
9,629,950 263,646 77,665 227,923 104,813 194,521 10,498,518 12,973,773
10,232,309 125,437 76,510 739,878 101,594 163,096 11,438,824 13,399,532
Total liabilities Shareholders' equity Capital Capital reserves Treasury shares Statutory reserves Other reserves Accumulated losses Equity attributable to the shareholders of the Company Equity attributable to non-controlling interests Total shareholders' equity Total liabilities and shareholders' equity
12,256,158
9,729,006 2,688 (10,346 ) 3,815,703 1,596,666 (573,878) 14,559,839 43,931 14,603,770 26,859,928
9,729,006 2,688 (10,346 ) 3,815,584 1,596,666
8,379,397 2,688 (10,346) 4,520,290 1,611,837
15,133,598 37,209 15,170,807 28,144,580
14,503,866 28,822 14,532,688 27,932,220
The accompanying notes are an integral part of these unaudited consolidated interim financial information. 5 of 52

Unaudited consolidated statement of income
In thousand of Reais, except for the income (loss) per share
June 30, 2013
June 30, 2012
Net revenue (Note 21) Cost of sales (Note 23) Gross profit Operating expenses Selling expenses (Note 23) General and administrative (Note 23) Equity in losses of associate Other operating expenses, net (Note 23)
3,118,592 (2,529,851) 588,741
2,764,774 (2,478,233) 286,541
(162,086) (138,341) 9,623 (290,804)
(150,413) (130,484) (187) 234,814 (46,270) 240,271 96,680 (403,355) (111,601) (624,844) (1,043,120) (802,849)
Income (loss) before financial income and expenses Financial income (Note 22) Financial expenses (Note 22) Results of derivative financial instruments (Note 22) Foreign exchange gains (Note 22)
297,937 59,636 (629,942) (148,844) (509,226) (1,228,376)
Income before taxes on income Taxes on income Current (Note 12) Deferred (Note 12) Losses for the period Attributable to Shareholders of the Company Non-controlling interests Losses for the period Basic and diluted losses per share - (in Reais) (Note 24)
(930,439)
(12,046) 372,924 (569,561)
(8,464) 277,124 (534,189)
(573,878) 4,317 (569,561) (1.037)
(536,969) 2,780 (534,189) (1.082)
The accompanying notes are an integral part of these unaudited consolidated interim financial information.
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Unaudited consolidated statement of comprehensive income
In thousand of Reais, except for the income (loss) per share
June 30, 2013
June 30, 2012
Losses for the period Other comprehensive losses for the period Total comprehensive losses for the period
(569,561)
(534,189)
(569,561)
(534,189)
Attributable to: Shareholders of the Company Non-controlling interests
(573,878) 4,317
(536,969) 2,780
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Unaudited statement of changes in shareholders' equity
In thousands of Reais, unless otherwise indicated
Capital As of January 1 , 2012 Impacted of the adoption - CPC 33(R1), net of deferred taxes As of January 1 , 2012 - adjusted Total loss Net income (loss) for the period Transactions with shareholders Capital increase Transaction costs As of June 30, 2012 As of January 1 , 2013 Impacted of the adoption - CPC 33(R1), net of deferred taxes As of January 1 , 2013 - adjusted Total income Net income (loss) for the period Reversal of dividends Capital increase of non-controlling interest Portocel As of June 30, 2013 9,740,777
st st st st
Capital Transaction costs of the capital increase
Other reserves Other comprehensive income 1,618,824
Statutory reserves Retained earnings (accumulated losses ) Noncontrolling interest 28,822
Capital reserve 2,688
Treasury shares (10,346 )
Legal 303,800
Investments 4,216,490
Total 14,510,853
Total 14,539,675
8,379,397
(6,987 ) 8,379,397 2,688 (10,346 ) 1,611,837 303,800 4,216,490
(6,987 ) 14,503,866 28,222
(6,987 ) 14,532,688
(536,969 ) 1,361,380 (11,771 ) 9,740,777 9,740,777 (11,771 ) (11,771 ) 2,688 2,688 (10,346 ) (10,346 ) 1,611,837 1,611,837 303,800 303,800 4,216,490 3,511,784 (536,969 )
(536,969 ) 1,361,380 (11,771 ) 15,316,506 15,148,769
2,780 3,336
(534,189 ) 1,364,716 (11,771 ) 15,351,444 15,185,978
34,938 37,209
(15,171 ) 9,740,777 (11,771 ) 2,688 (10,346 ) 1,596,666 303,800 3,511,784
(15,171 ) 15,133,598 37,209
(15,171 ) 15,170,807
(573,878 ) 119
(573,878 ) 119
4,317 2,405
(569,561 ) 119 2,405
(11,771 )
2,688
(10,346 )
1,596,666
303,800
3,511,903
(573,878 )
14,559,839
43,931
14,603,770
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Unaudited consolidated statement of cash flow
In thousand of Reais
June 30, 2013 Losses before taxes on income Adjusted by Depreciation, depletion and amortization Depletion of wood from forestry partnership programs Unrealized foreign exchange (gains) losses, net Change in the fair value of derivative financial instruments Equity in the losses of associate Losses on disposals of property, plant and equipment Interest and gains and losses on marketable securities Interest expenses Change in fair value of biological assets Financial charges on Eurobond partial repurchase transactions Impairment of recoverable ICMS Tax credits Reversal of provision for contingencies Provisions and other Decrease (increase) in assets Trade accounts receivable Inventory Recoverable taxes Other assets/advances to suppliers (Decrease) increase in liabilities Trade payables Taxes payable Payroll, profit sharing and related charges Other payables Cash provided by operating activities Interest received Interest paid Income taxes paid Net cash provided by operating activities Cash flow from investment activities Acquisitions of property, plant and equipment and forests Advances for wood acquisition from forestry partnership program Marketable securities, net Proceeds from sales of property, plant and equipment Advances received from the disposal of assets Derivative transactions settled (Note 8) Other Net cash provided by (used in) investment activities (930,439)
June 30, 2012 (802,849)
834,611 63,396 509,226 148,844 30,875 (47,881 ) 294,659 (36,100) 287,402 45,536 (10,331) (14,250) 16,417
857,716 48,773 624,844 111,601 187 8,273 (84,500) 351,285 (265,798) 38,345
37,683
312,585 (137,875 ) (79,385 ) (47,585)
265,381 (60,651) (55,068) 4,826
94,033 14,722 (20,946 ) (44,691) 1,282,823 84,679 (352,661 ) (15,987) 998,854
44,628 (17,709) (26,311) (17,221) 1,063,435 76,345 (326,397) (7,448) 805,935
(569,634) (28,735) 858,694 38,299 (14,741) 4 283,887
(474,971) (50,380) (563,067) 7,158 200,000 (36,422) 444 (917,238)
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Unaudited consolidated statement of cash flows
In thousand of Reais (continued)
Cash flow from financing activities Borrowing Repayments - principal amount Net of capital increase Premiums paid on partial Eurobonds repurchase transaction Other Net cash provided by (used in) financing activities Effects of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
980,824 (2,398,040 ) (188,206 ) 3,995 (1,601,427) (7,617) (326,303) 943,856 617,553
149,519 (364,831) 1,343,546 737 1,128,971 60,342 1,078,010 381,915 1,459,925
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Unaudited consolidated statement of value added
In thousand of Reais
June 30, 2013 Revenue Gross sales Provision for trade receivables Revenue relating to the construction of own assets and other
June 30, 2012
3,179,893 325 521,380 3,701,598
2,828,227 675,141 3,503,368
Inputs acquired from third parties Cost of sales Materials, energy, outsourced services and other
(1,817,772) (217,473) (2,035,245)
(1,672,806 ) (192,120 ) (1,864,926 ) 1,638,442
Gross value added Retentions Depreciation and amortization Depletion of wood from forestry partnership programs Net value added generated from operations Value added received through transfer Equity in the results of investees Finance income
1,666,353
(834,611) (63,396) 768,346
(857,716 ) (48,773 ) 731,953
350,071 350,071
(187 ) 728,372 728,185 1,460,138
Total value added for distribution Distribution of value added Personnel and social charges Direct compensation Benefits to employees Government Severance Indemnity Fund for Employees (FGTS) Taxes and contributions Federal State Municipal Interest, foreign exchange, rentals and leases Losses for the period Non-controlling interests Value added distributed
1,118,417
273,553 209,480 51,518 12,555 (228,169) (281,376) 39,332 13,875 1,642,594 (573,878) 4,317 1,118,417
266,033 203,497 48,080 14,456 (108,038 ) (163,736 ) 40,540 15,158 1,836,332 (536,969 ) 2,780 1,460,138
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Notes to the unaudited consolidated interim financial information at June 30, 2013
1 (a)
Operations and current developments General information Fibria Celulose S.A. is incorporated under the laws of the Federal Republic of Brazil, as a publicly-held company. Fibria Celulose S.A. and its subsidiaries are referred to in these financial statements as the "Company", "Fibria", or "we". We have the legal status of a share corporation, operating under Brazilian corporate law. Our headquarters and principal executive office is located in So Paulo, SP, Brazil. We are listed on the stock exchange of So Paulo (BM&FBOVESPA) and the New York Stock Exchange (NYSE) and we are subject to the reporting requirements of the Brazilian Comisso de Valores Mobilirios (CVM) and the United States Securities and Exchange Commission (SEC). Our activities are focused on the growth of renewable and sustainable forests and the manufacturing and sale of bleached eucalyptus kraft pulp. We operate in a single operational segment, which is the producing and selling of short fiber pulp. Our bleached pulp is produced from eucalyptus trees, resulting in a variety of high quality hardwood pulp with short fibers, which is generally used in the manufacture of toilet paper, uncoated and coated paper for printing and writing, and coated cardboard for packaging. We use different energy sources including thermal and electric, including black liquor, biomass derived from wood debarking, bark and scraps. Our business is affected by global pulp prices, which are historically cyclical and subject to significant volatility over short periods. The most common factors that affect global pulp prices are: (i) global demand for products derived from pulp, (ii) global production capacity and the strategies adopted by the main producers, and (iii) availability of substitutes for these products. All of these factors are beyond our control. In 2012, we established a strategic alliance with Ensyn Corporation ("Ensyn"), to leverage our forestry expertise and our competitive position in Brazil to develop alternatives with high value aggregated to complement our global leadership position and excellence in the production of pulp. We believe that the combination of our expertise and Ensyn's technology can generate a relevant business in the biofuel segment in the future.
(b)
Operational facilities and forest base The Company operates the following facilities as at June 30, 2013 to produce bleached eucalyptus kraft pulp with a total annual capacity of approximately 5.3 million tons:
Pulp production facility Aracruz Trs Lagoas Jacare Veracel (*) Annual production capacity - tons 2,340,000 1,300,000 1,100,000 560,000 5,300,000
Location (Brazil) Esprito Santo Mato Grosso do Sul So Paulo Bahia
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(*) Represents 50% of the annual production capacity of Veracel's pulp mill consistently with our portion of the results, representing 50% of the operations of Veracel in our consolidated statement of operations.
Fibria produces hardwood pulp from plantations of eucalyptus trees (referred to as forests), with an average extraction cycle of between six and seven years, which are located in six Brazilian States, consisting of approximately 967 thousand hectares, including reforested and protected areas, as follow (in thousands of hectares): Area of forest State So Paulo Minas Gerais Rio de Janeiro Mato Grosso do Sul Bahia Esprito Santo Total area
78,283 13,289 1,638 228,194 134,794 105,299 561,497
145,012 27,180 3,367 347,332 264,002 180,281 967,174
The forest base of the Losango project in the State of Rio Grande do Sul is excluded from the above table, as these assets qualify as assets held for sale, and are being presented as such, as detailed in item (d)(i) of Note 35 to the most recent annual financial statements. (c) Logistics The pulp produced for export is delivered to customers by means of sea vessels on the basis of long-term contracts with the owners of these vessels. Fibria has a long-term contract with the South Korean company STX Pan Ocean (STX) valid for a period of 25 years, with a dedicated fleet of 20 sea vessels, having the capacity to transport 54 thousand tons of pulp each. This contract had optimized the companys international logistics and ensures its operational stability and competitiveness. Four of these vessels have been delivered to us and are operating. STX is facing financial difficulties, which may impact the continuity of the contract signed with them. Independently of this possible impact, the exports of pulp and the related logistics costs should not be impacted, since the Company has contracts of affreightment with other logistics companies, which will be able to meet the export demand. The company operates in two ports, Santos and Barra do Riacho. The port of Santos is located on the coast of the State of So Paulo and seeps the pulp produced in the Jacare and Trs Lagoas plants. The port is operated under a concession from the Federal Government, through the Companhia Docas do Estado de So Paulo (CODESP). The port of Barra do Riacho is a port specializing in the transportation of pulp, and is located about three kilometers from the Aracruz unit, in the State of Esprito Santo, and seeps the pulp produced in the Aracruz and Veracel plants. This port is operated by Portocel - Terminal Especializado Barra do Riacho S.A . ("Portocel") - a company controlled by Fibria (which has a 51% interest in its share capital). Portocel operates with the authorization of the federal government, through a contract signed on November 14, 1995. 13 of 52

The concession period of one of the terminals at the port of Santos ends in 2017. However, we are looking for alternative means of shipping the pulp produced, in order to maintain our export capacity in the long term. (d) Current assets held for sale During the year 2012, the Company approved the sale of certain Cash Generating Units (CGUs) and of certain assets, as presented in the following table:
Classification for accounting purposes Assets held for sale Assets held for sale Date when classified for accounting purposes June 2011 March 2012 Date when the sale was consummated Not yet consummated (*) December 2012
CGU/Asset . Losango project assets . Forests and land located in the south of Bahia State
Reference Note 1(d)(i) Note 1(d)(ii)
(*) On December 28, 2012, the Company signed with CMPC Celulose Riograndense S.A. ("CMPC") the final sale and purchase agreement for the sale of these assets with a total sale price of R$ 615 million. The completion of the sale is subject to the granting of government approvals as described in the Note 1(d)(i).
(i)
Losango project assets On June 30, 2011, we decided to classify as held for sale the assets related to the Losango project assets, comprised of approximately 100 thousand hectares of land owned by Fibria and approximately 39 thousand hectares of planted eucalyptus and leased land, all located in the State of Rio Grande do Sul. On December 28, 2012, the Company and CMPC Celulose Riograndense Ltda. ("CMPC") signed the definitive Purchase and Sale Agreement for the sale of all Losango project assets. The transaction was approved by the Conselho Administrativo de Defesa Econmica (CADE), the competition authority, and on such this date the first installment of the purchase price, amounting to R$ 470 million, was paid to us. The second installment, in the amount of R$ 140 million, was deposited in an escrow account and will be released to us once additional government approvals are obtained. The final installment of R$ 5 million is payable to us upon the completion of the transfer of the existing land lease contracts for the assets, and the applicable government approvals. The sale and purchase agreement establishes a period of 48 months, renewable, at the option of CPMC, for an additional 48 months, to obtain the required government approvals. If this approval is ultimately not obtained, we are required to return to CMPC the first installment it paid to us, plus interest, and the escrow deposits made by CMPC will revert. We have recorded the amount of the first installment received as a liability under "Advances received in relation to assets held for sale". Since the completion of the sale is dependent on obtaining government approval, the assets continue to be classified as assets held for sale as at June 30, 2013, until the sale is completed. Upon their classification as assets held for sale, the carrying amounts of the assets held for sale (all of which are non-current) were comparable to its estimated fair value less the cost of sale, and no impairment losses were identified. 14 of 52

Since the completion of the sale is depending on such government approvals, the assets continue to be are still classified as assets held for sale as at June 30, 2013, until the sale is consummated completed. Upon classification as assets held for sale the carrying amount of the assets held for sale (all of which are non-current) was compared to its estimated fair value less cost of sale and no impairment loss was identified. The Losango assets did not generate any significant results in the semesters ended June 30, 2013 and 2012. (ii) Forests and land located in the south of Bahia On March 8, 2012, as part of our strategy to of strengthening our capital structure, we entered into a binding agreement with Fundo Florestas do Brasil (the "Fund"), through its subsidiary Caravelas Florestal S.A., for the sale of certain forests and land located in the south of the State of Bahia, consisting of 16,152 thousand hectares of eucalyptus forests for timber and pulp, with an average annual production of 660 cubic meters of wood. On June 29, 2012, Fibria signed a sale and purchase agreement for these assets, at a total amount of R$ 235 million. A cash payment of R$ 200 million was received as an advance on the same date. On December 7, 2012, the transaction was completed upon the purchaser signing an acceptance notice. As result of the due diligence process conducted by the purchaser, the sale price was adjusted to R$ 210 million. The remaining balance of R$ 10 million will be received by the Company during 2013 and is registered under "Other receivables" in current assets. The amount of R$ 19,551 was recognized in the statement of profit and loss in the last quarter of 2012, of which further details are presented in Note 35 to the most recent annual financial statements. (e) Change in the international corporate structure In November 2011, management approved, subject to certain conditions, a project for the corporate restructuring of our international activities. The transfer of the current commercial operational, logistical, administrative and financial operations of Fibria Trading International KFT to another subsidiary named Fibria International Trading GmbH was performed in July 1st, 2013. This international corporate reorganization and restructuring includes different stages, and its total completion is expected to be completed by around December 2015. However, the implementation of the steps of the planned total restructuring depends on approval from the local authorities of each country involved. 2 2.1 (a) Presentation of consolidated interim financial information and summary of significant accounting policies Consolidated interim financial information - basis of preparation Accounting policies used 15 of 52

The consolidated interim financial information has been prepared and is being presented in accordance with IAS 34 and CPC 21(R1) - Interim Financial Reporting issued by the International Accounting Standards Board (IASB) and the Accounting Statements Committee Standards (CPC), approved by the Brazilian Securities and Exchange Commission (CMV). The consolidated interim financial information should be read in conjunction with the financial statements for the year ended December 31, 2012, considering that its purpose is to provide an update on the activities, events and significant circumstances in relation to those presented in the annual financial statements. From January 1, 2013, the companies Veracel Celulose S.A., Asapir Produo Florestal e Comrcio Ltda. and VOTO Votorantim Overseas Trading Operations IV Limited meet the definition of joint operations under IFRS 11 and CPC 19(R2) - Joint Arrangements, and are classified accordingly, meaning that the balance of the assets, liabilities, revenue and expenses should be accounted for by the entities participating in the joint operation proportionally to their ownership stakes. The changes in the classification of the companies as joint operations did not impact the consolidated balances of the Company. The current accounting practices, which include the measurement principles for the recognition and valuation of the assets and liabilities, the calculation methods used in the preparation of this interim financial information and the estimates used, are the same as those used in the preparation of the most recent annual financial statements, except to the extent disclosed in Note 3. (b) Approval of the interim financial information The consolidated interim financial information was approved by Management on July 22, 2013. 2.2 Critical accounting estimates and assumptions Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates will seldom equal the related actual results. In the semester ended June 30, 2013, there were no significant changes in the estimates and assumptions which are likely to result in significant adjustments to the carrying amounts of assets and liabilities during the next financial year, compared to those disclosed in Note 3 to our most recent annual financial statements. 3 Adoption of new standards, amendments and interpretations issued by IASB and CPC A number of new standards and amendments to standards and interpretations were issued by the IASB and CPC, and are effective for annual periods beginning after January 1, 2013, as follow: IAS 1/CPC 26(R1) - Presentation of financial statements IAS 19/CPC 33(R1) - Employee benefits IAS 28/CPC 18(R2) - Investments in associates IFRS 11/CPC 19(R2) - Joint Arrangements IFRS 12/CPC 45 - Disclosure of interest in other entities 16 of 52

IFRS 9/CPC 38 - Financial instruments IFRS 10/CPC 36(R3) - Consolidated financial statements IFRS 13/CPC 46 - Fair value measurement As a result of the new standards, amendments and interpretations issued by the IASB and the CPC mentioned above, are applicable to us: IFRS 11/CPC 19(R2) - Joint Arrangements, with the effect described in Note 2.1 (a); and, IAS 19/CPC 33(R1) - Employee benefits, with the effect described below: IAS 19 / CPC 33(R1) Employee benefits Booking actuarial gains and losses using the corridor method, used to be a Company practice until December 31, 2012, and such actuarial gains and losses were recognized in the income statement if they exceeded the corridor carrying amount, and amortized over the remaining estimated average life of the people which have the benefit, considering that the actuarial gains and losses do not exceed the corridor amount; therefore, the gains and losses measured were not immediately recognized. As its method outcome the carrying amount recognized as liabilities differed from the estimated present carrying amounts of obligations by actuarial gains and losses carrying amounts are not yet recognized. The main impact of the adoption of this standard on the interim financial information for the semester ended June 30, 2013, with retrospective effect on the financial statements for the year ended December 31, 2012, and the respective opening balances as at January 1, 2012, are as follow: (a) to immediately recognize all actuarial gains and losses directly in Other comprehensive income, with the extinction of the corridor method for the recognition of actuarial gains and losses resulting from remeasurement, (b) to replace the interest costs and expected return on plan assets with a net interest amount calculated by applying the discount rate to the net defined benefit liability (asset), which should increase the cost of the plan. However, this situation did not have any impact on the Company, due the fact that we do not have any plan assets. The reconciliation of the adjusted actuarial obligations as at December 31, 2012 and the opening balance as at January 1, 2012, impacted by the adoption, are as follow: December 31, 2012 Present value of actuarial obligations from previous accounting practices Impact of the adoption of CPC 33(R1) Present value of actuarial obligations after adoption (*) January 1st, 2012
60,362 22,985 93,934
55,715 10,587 66,302
(*) The actuarial obligation is recorded as non-current Other payable, on the interim financial information at June 30, 2013 and in the December 31, 2012 financial statements and the opening balance as of January 1st, 2012.
As a result of the adjustments described above, the accounting balances of Deferred taxes classified as non-current assets, Other payables classified as non-current liabilities and Other reserves in shareholders equity as of December 31, 2012 and January 1st, 2012, regarding the comparative period for this interim financial information, were adjusted as follow:
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December 31, 2012 Original balance Non-current assets Deferred assets Non-current liabilities Other payables Shareholders equity Other reserves Adjustment Adjusted balance Original balance
January 1st, 2012 Adjustment Adjusted balance
868,192 160,949 1,618,824
11,414 33,572 (22,158)
879,606 194,521 1,596,666
991,768 152,509 1,618,824
3,600 10,587 (6,987)
995,368 163,096 1,611,837
Risk management The risk management policies and financial risk factors disclosed in the annual financial statements (Note 4) did not have any significant changes. The Companys financial liabilities which present liquidity risk are presented below by maturity (Note 4.1), exchange risk exposure (Note 4.2), capital risk management position, including indexes ratios of financial leverage (Note 4.3) and sensitivity analysis (Note 5).
4.1
Liquidity risk The table below classifies Fibria's financial liabilities into the relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table represent the contracted cash flow amounts, discounted and as such they differ from the amounts presented in the consolidated balance sheet.
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Less than one year At June 30, 2013 Loans and financing Derivative financial instruments Trade and other payables
Between one and two years
Between two and five years
Over five years
1,270,315 80,500 662,934 2,013,749
2,292,639 96,125 24,420 2,413,184
4,384,964 378,969 20,579 4,784,512
4,981,533 248,433 39,912 5,269,878
At December 31, 2012 Loans and financing Derivative financial instruments Trade and other payables
1,739,139 44,853 564,172 2,348,164
2,881,125 50,739 54,234 2,986,098
4,163,566 246,710 14,516 4,424,792
5,878,870 117,785 31,452 6,028,107
At January 1st, 2012 Loans and financing Derivative financial instruments Trade and other payables
1,636,635 134,886 516,061 2,287,582
2,723,403 6,321 47,197 2,776,921
3,919,605 104,913 14,516 4,039,034
7,916,925 16,099 35,081 7,968,105
4.2
Foreign exchange risk The following table presents the carrying amounts of the assets and liabilities denominated in foreign currency:
June 30, 2013 Assets in foreign currency Cash and cash equivalents (Note 6) Marketable securities (Note 7) Trade accounts receivable (Note 9) December 31, 2012 January 1st, 2012
602,763 49,915 452,363 1,105,041
891,046 432,706 714,142 2,037,894
318,926 916,391 1,235,317
Liabilities in foreign currency Loans and financing (Note 18) Trade payables Derivative financial instruments (Note 8)
7,390,244 122,745 407,180 7,920,169
8,542,851 105,194 273,079 8,921,124 (6,883,230)
9,230,592 35,676 213,887 9,480,155 (8,244,838)
Liability exposure
(6,815,128)
19 of 52

4.3
Capital risk management Management monitors indebtedness on the basis of a consolidated indebtedness ratio. This ratio is calculated as net debt divided by net income before interest, income taxes including social contribution, depreciation and amortization and other items as further described below ("Adjusted EBTIDA"). This is part of our strategy of reducing indebtedness and maintaining an appropriate level of leverage in accordance with our internal policies, as presented in the most recent annual financial statements in Note 4.2. Net debt represents total loans and financing, less cash and cash equivalents and marketable securities and the fair value of derivative financial instruments. The indebtedness ratios at June 30, 2013, December 31, 2012 and January 1st, 2012 were as follows (measured in Reais): June 30, 2013 Loans and financing (Note 18) Less - cash and cash equivalents (Note 6) Plus - derivative financial instruments (Note 8) Less - marketable securities (Note 7) Net debt Adjusted EBITDA (last twelve months) Indebtedness ratio 9,936,222 617,553 (407,180) 1,472,529 8,253,320 2,537,113 3.3 December 31, 2012 10,767,955 943,856 (273,079) 2,351,986 7,745,192 2,253,326 3.4 January 1st, 2012 11,324,417 381,915 (213,887) 1,677,926 9,478,463 1,981,031 4.8
The indebtedness ratio decreased from 3.4 on December 31, 2012 to 3.3 at June 30, 2013, due to increments of EBITDA and the raise of net debt as a consequence of the US Dollar appreciation of 8.4% in the first semester of 2013. From June 2012 debt-related financial covenants including the indebtedness ratio are measured in US Dollars, as further described in Note 23 to the most recent annual financial statements. Since the above ratios used for the periods presented are measured in Reais, there are likely to be differences between the ratios presented above and the ratios measured in compliance with the debt covenant requirements. The Company continues to focus on actions including reductions in fixed and variable costs, selling expenses, capital expenditure and improvements in working capital. We have also focused on actions that may result in additional liquidity of non-strategic assets. These actions are intended to strengthen the capital structure of the Company, resulting in improved Net Debt to Adjusted EBITDA ratios. 5 Sensitivity analysis The analysis below presents the sensitivity analysis of the effects of changes in the relevant risk factors to which the Company is exposed at the end of the semester. Management believes that it is a reasonably likely scenario that the exchange rate between the US Dollar and the Real will reach R$ 2.15, and that changes will be observed in the pulp price over a three-month period in line with current market expectations and historical changes in the prices of pulp. 20 of 52

Instruments denominated in foreign currency - mainly in US Dollars Loans and financing Cash, cash equivalents and marketable securities Derivative financial instruments Accounts receivables Accounts payable Total of estimated impact
Scenario Depreciation of 2,96% of the Real against the US Dollar compared to the Ptax rate as at June 30, 2013 - from R$ 2.15 to R$ 2.2156
Impact on income (expense) in Reais
209,642 (19,325) 90,648 (13,482) 3,634 271,117
As shown above, the depreciation of the Real against the US Dollar, considering the closing rate and the balance of financial instruments as at June 30, 2013, would lead to a reduction in the liabilities recognized in the balance sheet and a corresponding gain of approximately R$ 271,117. In this projected scenario, compared to the average exchange rate of R$ 2.15 observed during the period, net revenue would have increased by 5.6%, representing an approximate amount of R$ 173 million given the volume and sales prices for the semester ended June 30, 2013. According to CVM Decision No. 550/08, the following table presents the changes in the fair values of derivative financial instruments, loans and financing and marketable securities, in two adverse scenarios, that could generate significant losses for the Company. The probable scenario was stressed, considering additions of 25% and 50% to the probable scenario of R$ 2.15 per US Dollar:
Impact of appreciation of the Real against the US Dollar on the fair value Probable R$ 2.15 Derivative financial instruments Loans and financing Marketable securities Total impact Possible (25%) R$ 2.6875 Remote (50%) R$ 3.225
90,648 209,642 (19,325) 280,965
(642,659) (1,508,080) 139,014 (2,011,725)
(1,597,154) (3,225,802) 297,352 (4,525,604)
Cash and cash equivalents Average yield - % Cash and banks Foreign currency Fixed-term deposits CDB Cash and cash equivalents June 30, December 31, 2013 2012 617,553 52,810 891,046 617,553 943,856 January 1st, 2012 62,989 318,926 381,915
CDBs are highly liquid, readily convertible into a known amount of cash and subject to an immaterial risk of change of value if early redemption is requested. 21 of 52

During the semester ended June 30, 2013 there were no relevant changes in relation to the information presented in the most recent annual financial statements (Note 9). 7 Marketable securities Marketable securities include financial assets classified held for trading as follow: June 30, 2013 Brazilian federal government securities including under reverse repurchase agreements LFT LTN NTN-F Other Private securities including securities under reverse repurchase agreements Reverse repurchase agreements CDB CDB Box RDB - fixed interest rate In foreign currency Private securities including securities under reverse repurchase agreements Time deposits Marketable securities December 31, 2012 January 1st, 2012
242,581 114,032 345,527
268,984 111,907 186,374
208,602 149,730 4,666
336,041 383,463 970
766,281 584,734 1,000
1,282,236 31,750 942
49,915 1,472,529
432,706 2,351,986 1,677,926
Private securities are mainly composed of short-term investments in CDBs and reverse repurchase agreements, and carry interest based on the Interbank Deposit Certificate (CDI) interest rate. Government securities are composed of National Treasury Bills and Notes all issued by the Brazilian federal government. The average yield of marketable securities in the semester ended June 30, 2013 was 101.24% of the CDI (102.66% of the CDI as of December 31, 2012 and 102.47% of the CDI as at January 1, 2012). Securities in foreign currency mainly represent time deposits with maturities longer than 90 days and average remuneration of 0.99% p.a. During the semester ended June 30, 2013 there were no relevant changes to the operations presented in the most recent annual financial statements and detailed in Note 10 to these financial statements. The decrease in the balance during the semester ended June 30, 2013 was mainly related to the payments made by Fibria on loans and financing during the period, as described in Note 18(e) to this report.
22 of 52

Derivative financial instruments The following tables present the Companys derivative instruments, segregated by type, presenting both the asset and liability positions of the swap contracts, the fair value and paid by hedge strategy adopted, and also the maturity schedule based on their contractual maturities.
(a)
Derivative financial instruments by type

Reference value (notional) in US Dollars Type of derivative NDF (US$) (*) Swap JPY x US$ (JPY) Swap DI x US$ (US$) Swap LIBOR x Fixed (US$) Swap TJLP x US$ (US$) Swap Pre x US$ (US$) Zero cost collar (*) June 30, 2013 December 31, 2012 170,000 300,358 602,161 312,786 294,131 996,000 306,226 564,012 349,860 97,737 410,000 January 1st, 2012 921,900 45,000 233,550 227,891 416,478 41,725 162,000 June 30, December 31, 2013 2012 (26,432) (116,138) 17,415 (211,531) (60,650) (36,276) (407,180) Classified In current assets In non-current assets In current liabilities In non-current liabilities Total, net 26,811 77,237 (92,641) (418,587) (407,180) (78,345) (8,145) (148,123) (13,205) 1,171 (273,079) 18,344 26,475 (54,252) (263,646) (273,079) Fair value January 1st, 2012 (134,206) 27,804 11,373 (10,655) (92,165) (9,084) (6,954) (213,887) 31,638 43,446 (163,534) (125,437) (213,887)
(*) There was a reduction in the notional NDFs which were offset by the increase in the notional zero cost collar. Considering the current scenario for the volatility of the Dollar, these operations have remained more attractive than the NDFs.
23 of 52

(b)
Derivative financial instruments by type and broken down by the nature of the exposure (asset and liability exposure for swaps)
Reference value (notional) in currency of origin Type of derivative Future contracts - NDF Cash flow hedge (US$) Swap contracts Asset JPY fixed rate (JPY to USD) USD LIBOR (LIBOR to fixed) BRL fixed rate (BRL to USD) BRL TJLP (BRL to USD) BRL Pre (BRL to USD) Liability USD fixed rate (JPY to USD) USD fixed rate (LIBOR to fixed) USD fixed rate (BRL to USD) USD fixed rate (BRL TJLP to USD) USD fixed rate (BRL to USD) Total of swap contracts Options Cash flow hedge - zero cost collar 996,000 410,000 162,000 June 30, 2013 December 31, 2012 170,000 January 2012 921,900 1st, June 30, 2013 December 31, 2012 (26,432) Fair value January 1st, 2012 (134,206)
602,161 541,161 508,817 599,799 602,161 300,358 312,786 294,131
564,012 551,195 569,708 183,427 564,012 306,226 349,861 97,737
4,754,615 227,891 399,370 679,784 66,468 45,000 227,891 233,550 416,478
1,335,571 711,396 487,481 478,783 (1,318,156) (827,534) (699,012) (539,433) (370,904) (36,276) (407,180)
1,153,420 706,349 572,177 170,934 (1,161,565) (784,694) (720,300) (184,139) (247,818) 1,171 (273,079)
136,077 427,843 514,257 611,091 64,391 (108,273) (438,498) (502,884) (703,256) (73,475) (72,727) (6,954) (213,887)
41,725
(c)
Derivative financial instruments by type of economic hedge strategy

Fair value Type of derivative Operational hedges Cash flow hedges of exports Hedges of receivables from the sale of investments Hedges of debts Hedges of interest rates Hedges of foreign currency
June 30, 2013 December 31, 2012 January 1st, 2012
Value (paid) or received

June 30, 2013 December 31, 2012
(36,276)
(25,261)
(141,160)
(14,554)
(151,109)
17,415 (388,319) (407,180)
(8,145) (239,673) (273,079)
(10,655) (62,072) (213,887)
(5,297) 5,110 (14,741)
(8,743) 33,484) (126,368)
24 of 52

(d)
Fair value of derivative financial instruments by maturity date and counterparty The following tables present information about derivative financial instruments grouped by maturity and counterparty. The following table presents the fair values by month of maturity:
June 30, 2013 2013 January February March April May June July August September October November December 2014 (7,450) (11,646) (7,897) (7,440) (11,613) (9,023) (4,069) (6,809) (3,509) (4,683) (6,807) (7,402) (88,348) 2015 (5,222) (7,503) (4,929) (6,034) (8,188) (8,533) (5,321) (7,363) (12,523) (5,530) (7,483) (7,832) (86,461) 2016 (4,269) (5,489) (3,253) (3,922) (5,618) (6,671) (2,686) (4,273) (10,718) (2,794) (4,316) (5,378) (59,387) 2017 (3,093) (4,402) (3,169) (3,363) (4,524) (5,775) (422) (1,990) (43,201) (3,020) (1,993) (3,485) (78,437) 2018 (580) 1,817 (1,083) (837) 110 (1,206) (1,116) (13,884) (22,907) (1,232) (50) (1,276) (42,244) 2019 (1,316) 248 (1,381) (1,401) (962) (1,463) (1,495) (15,213) 2020 269 Total (21,930) (26,706) (21,712) (22,997) (30,795) (32,671) (17,749) (69,070) (90,785) (18,574) (25,525) (28,666) (407,180)
(2,640) (3,405) 2,073 (1,315) (4,876) (3,293) (13,456)
(16,133)
(22,983)
(15,864)
December 31, 2012 2013 January February March April May June July August September October November December (11,875) (10,120) (2,092) (3,195) (1,873) 93 (1,058) (1,965) 770 (1,459) (1,813) (1,320) (35,907) 2014 (2,652) (3,188) (1,856) (3,095) (3,590) (3,578) (3,453) (3,993) (2,111) (3,791) (4,189) (4,546) (40,042) 2015 (4,065) (4,586) (2,784) (4,511) (4,915) (5,154) (3,852) (4,176) (7,304) (3,980) (4,228) (4,465) (54,020) 2016 (4,067) (3,882) (2,403) (3,932) (3,952) (4,499) (3,077) (2,969) (6,637) (3,202) (3,051) (3,567) (45,238) 2017 (3,311) (2,976) (2,238) (3,420) (2,987) (3,674) (1,683) (1,231) (27,668) (1,722) (1,288) (1,818) (54,016) 2018 1,651 (80) 15 628 (116) (9,170) (15,716) 500 (22,288) (9,665) (11,903) 2019 1,096 279 (11,040) (12,195) 2020 292 Total (25,970) (21,713) (11,453) (18,138) (16,410) (16,928) (13,123) (46,739) (58,666) (14,154) (14,069) (15,716) (273,079)
25 of 52

January 1st, 2012 2012 January February March April May June July August September October November December (23,146) (16,878) (11,919) (17,225) (13,148) (1,991) (18,880) (18,824) (668) (6,905) (420) 1,484 (128,520) 2013 (447) (540) 1,045 (355) (565) 1,414 (1,520) (1,396) (48) (1,519) (1,289) (240) (5,460) 2014 25,680 (2,049) (1,874) (2,756) (2,571) (2,208) (2,796) (2,662) (2,461) (2,908) (2,854) (2,736) (2,195) 2015 (3,000) (2,966) (2,951) (3,228) (3,262) (3,055) (2,658) (2,695) (3,018) (2,897) (2,926) (2,769) (35,425) 2016 (2,820) (2,879) (2,980) (2,933) (2,932) (2,908) (2,548) (2,539) (2,290) (2,499) (2,476) (2,431) (32,235) 2017 (2,483) (2,475) (2,415) (2,764) (2,782) (2,675) (1,289) (1,286) 2,973 (1,281) (1,288) (1,222) (18,987) 2018 Total (6,216) (27,787) (21,008) (29,261) (25,260) (11,319) (29,691) (29,402) 3,233 (18,009) (11,253) (7,914) (213,887)
86 104 8,745
8,935
Notional and fair value by counterparty:

June 30, 2013 Notional in US Dollars
Banco Ita BBA S.A. Deutsche Bank S.A. Banco Safra S.A. Banco BNP Paribas Brasil S.A. Banco Santander Brasil S.A. Banco CreditAgricole Brasil S.A. HSBC Bank Brasil S.A. Banco Citibank S.A. Goldman Sachs do Brasil Banco Bradesco S.A. Morgan Stanley & CO. Banco Votorantim S.A. Banco ABC Brasil S.A. Rabobank Brasil S.A. Bank of America Merrill Lynch Banco Standard de Investimentos Standard Chartered Bank Banco Barclays S.A. Banco WestLB do Brasil BES Investimento do Brasil S.A. 370,065 261,450 215,358 292,000 233,688 232,378 186,336 204,584 68,950 121,971 35,347 35,309 25,000 25,000 198,000
December 31, 2012 Notional in US Dollars

243,261 143,450 221,226 125,000 248,918 213,950 154,601 138,181 123,250 85,000 58,912 42,086 50,000 35,000 15,000
January 1st, 2012 Notional in US Dollars

382,812 37,500 233,550 255,556 135,046 240,376 186,850 229,042
Fair value
(37,829) (5,807) (83,418) (9,734) (130,237) (2,252) (33,770) (61,372) (1,898) (31,716) (769) (7,637) (1,150) (20) 429
Fair value
(17,865) (2,033) (55,131) 853 (93,734) (3,844) (21,101) (39,734) (3,107) (23,214) (1,747) 200 (2,389) (6,821) (3,412)
Fair value
(49,975) (3,699) 11,372 (57,139) (22,460) (6,695) (17,507) (22,415)
96,400 14,500 57,500 124,500 45,500 10,000 2,049,132
(20,041) (1,791) (8,285) (10,959) (2,521) (1,772) (213,887)
2,505,436
(407,180)
1,897,835
(273,079)
The fair value does not necessarily represent the cash required to immediately settle each contract, as this disbursement will only be made on the date of maturity of each transaction, when the final settlement amount can be determined. The outstanding contracts at June 30, 2013 are not subject to margin calls or anticipated liquidation clauses resulting from mark-to-market variations. All operations are over-the-counter and registered with CETIP (a clearing house). The descriptions of the types of contracts and risks being hedged against are as follow: 26 of 52

(i)
Non-Deliverable Forwards (NDF) The Company did not enter into US Dollar forwards and there are no outstanding balance at June 30, 2013.
(ii)
LIBOR versus fixed rate swap The Company has plain-vanilla swaps of quarterly LIBOR against fixed rates, with the objective of hedging debt carrying interest based on LIBOR against any increase in the LIBOR rate.
(iii)
DI versus US Dollar swap The Company has plain vanilla swaps of the Interbank Deposit (DI) rate against the US Dollar, with the objective of converting our debt exposure in Reais subject to the DI rate into a debt in US Dollars at fixed interest. The swaps are matched to the debts in terms of the underlying amounts, maturity dates and cash flow.
(iv)
TJLP versus US Dollar swap The Company has plain vanilla swaps of the Long-term Interest Rate (TJLP) against the US Dollar with the objective of converting our debt exposure in Reais subject to interest based on the TJLP, to debt in US Dollars at fixed interest. The swaps are matched to the related debts in terms of underlying amounts, maturity dates and cash flow.
(v)
Zero cost collar The Company has a zero cost collar, which is an purchased option (put) to purchase US Dollars and a written option (call) to sell US Dollars, with no leverage. The difference between the strike price of the put (floor) and of the call (ceiling) options gives a floor and cap to the Dollar exchange rate, thereby forming a "Collar".
(vi)
Pre swap versus US Dollar swap The Company has plain vanilla swaps to transform fixed interest debt in Reais into a debt in US Dollars at fixed rates. The swaps are matched to the debts in terms of the underlying amounts, maturity dates and cash flow.
(vii)
Fair value measurement of derivative financial instruments The Company estimates the fair values of its derivative financial instruments, and acknowledges that these may differ from the amounts payable/receivable in the event of the early settlement of the instrument. This difference results from factors such as liquidity, spreads or the intention regarding early settlement by the counterparties, among other factors. The amounts estimated by management are also compared to the Mark-to-Market (MtM) prices provided as a reference by the banks (counterparties), and to estimates performed by an independent financial advisor. Management believes that the fair values estimated for those instruments, using the methods described below, reliably reflect their fair values. The methods used by the Company to measure the fair values of its derivative financial instruments reflect the methodologies commonly used by the market, and are based on widely tested theoretical 27 of 52

bases. The methodologies used to estimate the MtM prices and to record the values of financial instruments are defined in the manual developed by the Company's risk and compliance management area. A summary of the methodologies used for the purpose of determining the fair value by type of instrument is presented below. . Non-deliverable forwards - a projection of the future exchange rate is made, using the observable foreign currency coupon and the observed fixed yield curve in Reais at each maturity date. The difference between the forward exchange rate obtained using this method and the contractual forward exchange rate is determined. This difference is multiplied by the notional amount of each contract and discounted to its present value using the observed fixed yields in Reais. Swap contracts - the present value of both the asset and liability positions are estimated by discounting the forecast cash flow using the observed market interest rate for the currency in which the swap is denominated. The contracts fair value is the difference between the asset and liability amounts. The only exemption refers to TJLP versus US Dollar swaps, where the cash flow of the asset position (TJLP versus Pre swap) is projected using a straight yield of 5% during the period of the swap contract, as disclosed by BM&FBOVESPA. Options (Zero Cost Collar) - the fair value was calculated based on the Garman Kohlhagen model. Volatility information and interest rates are observable and were obtained from BM&FBOVESPA exchange information and used to calculate the fair values.
The yield curves used to calculate the fair values of financial instruments at June 30, 2013 are as follow:
Interest rate curves Brazil Vertex 1M 6M 1A 2A 3A 5A 10A Rate (p.a.) - % Vertex 1M 6M 1A 2A 3A 5A 10A United States Rate (p.a.) - % Vertex 1M 6M 1A 2A 3A 5A 10A Dollar coupon Rate (p.a.) - %
8.11% 8.92% 9.40% 10.26% 10.82% 11.23% 11.38%
0.19% 0.30% 0.35% 0.51% 0.82% 1.59% 2.81%
-21.68% -2.41% -0.36% 0.80% 1.41% 2.86% 4.81%
28 of 52

Trade accounts receivable

Domestic customers Intercompany Export customers
83,104 4,349 452,363 539,816
99,601 2,980 714,142 816,723 (61,955) 754,768
102,305 2,878 916,391 1,021,574 (76,212) 945,362
Allowance for doubtful accounts
(59,474) 480,342
During the semester ended June 30, 2013, we made credit assignments without recourse for certain customers, amounting to R$ 810,775 (R$ 686,619 at December 31, 2012 and R$ 306,787 at January 1, 2012) meaning that these amounts were not recognized as trade accounts receivable and are not included in the balance above. The combination of the sales volume, average pulp price and the effect of the exchange currency in the period, contributed to minimizing the decrease in the balance. 10 Inventory
Finished goods At plants/warehouses in Brazil Outside Brazil Work in process Raw materials Supplies Imports in transit Advances to suppliers
154,427 639,547 10,395 412,721 135,412 7,412 2,553 1,362,467
131,806 470,082 13,438 422,288 142,288 2,333 907 1,183,142
135,110 518,305 31,141 360,473 129,298 2,140 2,240 1,178,707
The balance increased by 15% or R$ 179,325, mainly due to carried by the high level of inventory of finished products (increase of 91 kilotons) in the first semester of 2013. 11 Recoverable taxes
Withholding tax and prepaid Income Tax (IRPJ) and Social Contribution (CSLL) Value-added Tax on Sales and Services (ICMS) on purchases of property, plant and equipment Recoverable ICMS and Excise Tax (IPI) Social Integration Program (PIS) and Social Contribution on Revenue (COFINS) Recoverable Provision for impairment of ICMS credits
219,260 17,838 770,689 531,095 (619,826) 919,056
187,941 16,140 715,904 526,410 (579,103) 867,292 657,830 209,462
208,993 19,520 614,274 669,805 (507,573) 1,005,019 677,232 327,787
Non-current Current
712,382 206,674
29 of 52

During the semester ended June 30, 2013 there were no relevant changes to our expectations regarding the recoverability of the tax credits presented in Note 14 to the most recent annual financial statements. 12 Taxes on income The Company and its subsidiaries based in Brazil are taxed based on their net income/losses for accounting purposes as adjusted for tax purposes. The subsidiaries outside of Brazil use the methods established by the respective local regulations. Income taxes have been calculated and recorded considering the applicable statutory tax rates enacted as at the date of the interim financial information. (a) Deferred taxes Deferred income tax and social contribution tax assets arise from tax losses and temporary differences related to (i) the effect of foreign exchange gains/losses, mainly on loans and financing (which for tax purposes are taxed/deductible on a cash basis), (ii) adjustments to the fair values of derivative financial instruments, (iii) provisions not currently deductible for tax purposes, (iv) investments in rural activity, and (vi) temporary differences arising from the adoption of CPCs/IFRS.
30 of 52

June 30, 2013 Tax losses Provision for contingencies Sundry provisions (impairment, operational and other) Results of derivative contracts recognized on a cash basis for tax purposes Exchange variation - recognized on a cash basis for tax purposes Tax amortization of goodwill Actuarial gains (losses) on medical assistance plan (SEPACO) Provision for losses on foreign deferred tax assets (*) Tax depreciation Reforestation costs already deducted for tax purposes Fair values of biological assets Effect of business combination - acquisition of Aracruz Tax benefit of goodwill not amortized for tax purposes Other provisions Total deferred taxes, net Deferred taxes - asset (net by entity) Deferred taxes - liability (net by entity) 809,795 62,466 396,847 138,441 634,130 114,272 11,414 (252,267) (10,205) (322,741) (219,859) (26,026) (313,105) (1,791) 1,021,371 1,195,107 173,736
December 31, 2012 587,211 65,578 401,113 92,847 470,825 113,178 11,414 (238,201) (11,391) (299,632) (239,094) (31,998) (268,376) (1,791) 651,683 879,606 227,923
January 1st, 2012 521,693 30,506 383,395 72,537 73,412 110,936 3,600 (200,711) (14,986) (284,020) (214,952) (45,212) (178,917) (1,791) 255,490 995,368 739,878
Changes in the net balances of deferred income tax are as follow:

June 30, 2013 December 31, 2012
At the beginning of the period Tax losses Provision for the impairment of foreign deferred tax assets Temporary differences relating to provisions Derivative financial instruments taxed on a cash basis Amortization of goodwill Reforestation costs Exchange gains/losses taxed on a cash basis Fair value of biological assets Actuarial losses on medical assistance plan (SEPACO) Other At the end of the period
651,683 222,584 (14,066 ) (7,376 ) 45,595 (43,635 ) (21,923 ) 163,304 19,234 5,971 1,021,371
251,890 28,558 (37,490) 52,790 20,310 (87,217) (12,018) 434,373 (24,141) 11,414 13,214 651,683
31 of 52

(b)
Reconciliation of income tax and social contribution benefit (expense)

June 30, 2013 Income before taxes on income Income tax and social contribution at statutory nominal rate - 34% Reconciliation to effective expense Non-taxable equity in the earnings (losses) of associates Differences in the tax rates of foreign subsidiaries Benefits to directors Other, mainly non deductible provisions Income Tax and Social Contribution benefits (expenses) for the year Effective rate - % (1,612) 54,487 (8,346) 360,878 38.8 (63) (5,281) 12,877 (11,842) 268,660 33.5 (930,439) 316,349 June 30, 2012 (802,849) 272,969
13
Significant transactions and balances with related parties Related parties The Company is governed by a Shareholders Agreement entered into between Votorantim Industrial S.A. ("VID"), which holds 29.42% of its shares, and BNDES Participaes S.A. ("BNDESPAR"), which holds 30.38% of the shares (together the "Controlling shareholders"). The Company's commercial and financial transactions with its subsidiaries, associates, companies of the Votorantim Group and other related parties are carried out at normal market prices and conditions, based on the usual terms and rates applicable to third parties. The balances and transactions with related parties are as follow:
(a)
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(i)
Balances recognized in assets and liabilities

Balances receivable (payable)
Nature Transactions with controlling shareholders Votorantim Industrial S.A. BNDES
June 30, December 31, 2013 2012

(299) (1,767,345) (1,767,644) (722) (1,747,272) (1,747,994)
January 1st, 2012

(63) (1,773,842) (1,773,905)
Rendering of services Financing
Transactions with associates Bahia Produtos de Madeira S.A. Transactions with Votorantim Group companies VOTO III Votener - Votorantim Comercializadora e Energia Banco Votorantim S.A. Votorantim Cimentos S.A. Votorantim Cimentos S.A. Votorantim Metais Votorantim Metais Companhia Brasileira de Alumnio (CBA)
Sales of wood
4,127
2,980
2,878
Eurobonds Energy supplier Financial investments Input supplier Sale of lands Chemical products supplier Leasing of lands Leasing of lands (1) 69,511 (49) 31,362 (103) (713) (34) 99,973 (388) 197,782 (11) 31,362 (228) (1,476) (33) 227,008 (1,518,006)
(117,767) (388) 176,156 (87) (214) (33) 57,667 (1,713,360)
Net Presented in the following lines In assets Marketable securities (Note 7) Trade accounts receivable (Note 9) Related parties - non-current Other assets - current In liabilities Loans and financing (Note 18) Suppliers
(1,663,544)
69,511 4,349 6,761 31,362 (1,767,345) (8,182) (1,663,544)
191,537 2,980 6,245 31,362 (1,747,272) (2,858) (1,518,006)
170,687 2,878 5,469 (1,891,609) (785) (1,713,360)
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(ii)
Transactions recognized in the statement of operations

Income (expense) June 30, June 30, 2013 2012
(4,909) (79,026) (83,935) (4,062) (87,912) (91,974)
Nature Transactions with controlling shareholders Votorantim Industrial S.A. Banco Nacional de Desenvolvimento Econmico e Social (BNDES) .
Transactions with associates Bahia Produtos de Madeira S.A.
Rendering of services Financing
Sales of wood
5,064
5.556
. Transactions with Votorantim Group companies VOTO III Votener - Votorantim Comercializadora de Energia Banco Votorantim S.A.
E.N. Servios de Materiais
Eurobond Energy supplier Investments

Material and services supplier (19,224) (4,076) (308) (2,254) (4,751) (218) (30,831)
7,296 (9,020) 8,832 (121) (153) (2,986) (3,477) (197) 174
Votorantim Cimentos S.A. Votorantim Metais Ltda. Votorantim Metais Ltda. Companhia Brasileira de Alumnio (CBA)
Leasing of lands Chemical products supplier Leasing of lands Leasing of lands
Comments on the main transactions and contracts with related parties The following is a summary of the nature and conditions of the transactions with related parties: Controlling shareholders The Company has a contract with VID related to services provided by the Votorantim Shared Services Center, which provides outsourcing of operational services relating to administrative activities, the personnel department, back office, accounting, taxes and the information technology infrastructures, which are shared by the companies of the Votorantim Group. The contract provides for the overall remuneration of R$ 9,767 and has a one-year term, to be renewed annually upon formal confirmation by the parties. Additionally, VID provides various services related to technical advice and training, including management improvement programs. These services are provided to the entire Votorantim Group, and the Company reimburses VID at cost for the expenses related to the services used. The Company has financing contracts with BNDES, the majority shareholder of BNDESPAR, for the purpose of financing investments in infrastructure, forestry, the acquisition of equipment and machines and research and development, as well as the expansion and modernization of its plants. There have been no changes in the contracts with BNDES since December 31, 2012, which were presented in Note 23(e) in the most recent annual financial statements. 34 of 52

Management believes that these transactions were contracted at terms equivalent to those which govern in transactions with independent parties, based on technical studies performed when these contracts were executed. Subsidiaries, joint operations and associates Fibria shares its administrative structure with its wholly-owned subsidiary Fibria - MS, and allocates these administrative expenses to the subsidiary at cost without any profit margin. These receivables have an average maturity of 90 days. The other operating subsidiaries have their own management, and no sharing of expenses is necessary. In June 2010 and May 2011, there were purchases of intercompany receivables from this subsidiary amounting to R$ 239,123 relating to export shipments, which were fully settled in 2012. Port services for the shipping of the products of the Aracruz plant are contracted from Portocel Terminal Especializado Barra do Riacho. Portocel is controlled by the Company, and Cenibra Celulose Nipo-Brasileira holds the remaining 49% interest in Portocel. The prices and conditions are identical for both shareholders. The Company has accounts receivable relating to the sale of pulp to its wholly-owned subsidiary Fibria Trading International KFT, which is responsible for the management, sale, operation, logistics, control of and accounting for products in Europe, Asia and North America. The pulp sales prices and payment terms for this subsidiary follow the strategic and finance plan of the Company and observe the transfer price limits under the tax regulations. In addition, the Company contracted intercompany export prepayments with this subsidiary, at the rate of quarterly LIBOR plus an average spread of 4.0% p.a., with quarterly payments of principal and interest and final maturity in 2018. On June 24, 2005, we entered into a loan contract with VOTO IV, which raised US$ 200,000 thousand, bearing interest at 8.5% p.a. and maturing in 2020. The Company has balances receivable from Asapir, corresponding to cash advances made for the purpose of ensuring that Asapir has working capital at levels considered adequate to carry out its operational activities. The Company has a receivables balance of R$ 4,127 from Bahia Produtos de Madeira S.A., corresponding to sales of wood, with a contract value of around R$ 9 million per year, with maturity in 2019, renewable for 15 years. Votorantim Group companies The Company has a contract to purchase energy from Votener - Votorantim Comercializadora de Energia Ltda. to supply power to our unit in Jacare. The total amount contracted is R$ 15,000, guaranteeing 115,700 megawatt-hours over five years, maturing in December 31, 2014. Should either party request the early termination of the contract, that party will be required to pay 50% of the remaining contract amount. In addition, the Company entered into a contract to purchase energy from Votener, expiring on December 31, 2014, to supply the Trs Lagoas and Aracruz units. Since these units already generate their own energy, the contract is intended to maximize the competitiveness of the energy matrix. The total amount contracted may change based on the needs and consumption of energy by those plants. The Company maintains investments in CDBs and securities purchased under resale agreements 35 of 52

("reverse repos") issued by Banco Votorantim S.A., with average remuneration of 103.40% of the CDI rate, daily liquidity from September 2013 and maturing in January 2015. The Company's cash management policy is intended to provide efficiency in investment returns and to maximize liquidity, based on market practices. The Company has also entered into derivative financial instruments with Banco Votorantim. The Shareholders Agreement limits intercompany investments to R$ 200 million for securities and R$ 100 million in notional value for derivative financial instruments. On January, 2012, the Company entered into a contract to purchase 98% sulfuric acid from Votorantim Metais, for R$ 18,500, in exchange for the supply of 36,000 metric tons of acid for two years through December 31, 2013. In the event of contract termination, no penalties are due and the parties should pay any outstanding invoices for goods provided prior to the termination. The Company has an agreement with Votorantim Cimentos for the supply of road construction supplies, such as rock and calcareous rock, with an approximate value of R$ 7,165. This agreement may be terminated at any time with prior notice of 30 days, without any contractual penalties. In December 2012, the Company entered into a contract with Votorantim Cimentos for the sale of land amounting to R$ 31,362 which matures in December 2013. The Company has land leasing agreements, covering approximately 22,400 hectares, with Votorantim Metais Ltda., which mature in 2019, totaling R$ 76,496. The Company has land leasing agreements, covering approximately 2,062 hectares, with Companhia Brasileira de Alumnio - CBA and Votorantim Cimentos, which mature in 2023, totaling R$ 4,062. In the semester ended June 30, 2013 and the other periods presented, no provision for impairment was recognized on assets with related parties. (b) Remuneration of officers and directors The remuneration expenses, including all benefits, are summarized as follow: June 30, 2013 Short-term benefits to officers and directors Rescission of contract benefits Benefit program - Phantom Stock Options 12,605 1,587 2,438 16,630 June 30, 2012 16,512 2,839
19,351
Short-term benefits include fixed compensation (salaries and fees, vacation pay and 13th month salary), social charges and contributions to the National Institute of Social Security (INSS), the Government Severance Indemnity Fund for Employees (FGTS) and the variable compensation program. The longterm benefits related to the variable compensation program. Short-term benefits to officers and directors do not include the amount of R$ 241 for the semester ended June 30, 2013 (R$ 550 for the semester ended June 30, 2012) regarding the compensation for the Audit, Risk, Compensation and Sustainability Committee members of. 36 of 52

The Company does not have any additional active post-employment plans and does not offer any other benefits, such as additional paid leave for time of service. 14 Investments
Investments in associates - equity method (a) Provision for impairment of investments (a) Other investments - fair value method (b)
6,913 (6,913) 40,674 40,674
6,913 (6,913) 40,674 40,674
7,506
7,506
(a)
Investments in associates
Our ownership Associate's information Profit and loss June 30, 2013 December 31, 2012 On equity January 1st, 2012 On profit and loss June 30, 2013 June 30, 2012
Equity Associate measured using equity ethod Bahia Produtos de Madeira S.A. Provision for impairment Bahia Produtos de Madeira S.A.
20,740
33.33
6,913
6,913
7,506
(187 )
(6,913)
(6,913) 7,506 (187 )
(b)
Other investments We hold 6% ownership of the capital of Ensyn, represented by shares. We performed an assessment of the rights related to these shares and concluded that we did not have significant influence over the management of Ensyn. Therefore, this investment cannot be considered as an investment in an associate. No significant changes in the fair value of our interest in Ensyn occurred between the date of our investment (October 2012) and June 30, 2013 and for that reason the carrying amount as at June 30, 2013 is equal to the cost of the investment.
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15
Biological assets The reconciliation of the book balances at the beginning and at the end of the period presented is as follows: June 30, 2013 At the beginning of the period Additions Depletion during the period Historical cost Fair value Change in fair value Disposal Transfer (i) At the end of the period 3,325,604 411,540 (282,270) (135,736) 36,100 (822) (223) 3,354,193 December 31, 2012 3,264,210 755,531 (502,691) (365,726) 297,686 (129,745) 6,339 3,325,604
(i) Includes transfers between biological assets, property, plant and equipment, and intangible assets, as well the transfer of PIS and COFINS tax credits.
According to our accounting policies, in the semester ended June 30, 2013 we performed a valuation of the biological assets at the fair value. In the following table we present the main inputs considered in estimating the fair value of biological assets:
June 30, 2013 Actual planted area (hectare) Average annual growth (IMA) - m3/hectare Net average sale price - R$/m3 Remuneration of own contributory assets - % Discount rate - % 441,272 40 54.89 5.6 6.5
December 31, 2012 446,168 41 53.86 5.6 6.5
The changes in the fair value of the biological assets in June 30, 2013 are presented as follows: June 30, 2013 Fair value of the forest renovations during the year Growing of plantation (IMA, area and age) Variations in price 25,250 (65,860) 76,710 36,100 The estimate of the fair values of biological assets as of June 30, 2013 was made by management, based on the same premises used in 2012. 38 of 52

16
Property, plant and equipment The rolling forward of the carrying amounts for the presented period is as follows:
Machinery, equipment and facilities 7,975,675 2,886 (14,509) (676,576) 115,201 7,402,677 8,942 (23.679) (336,185) 93,453 7,145,208 Advances to suppliers 205,783 3,061 Construction in progress 197,866 230,475
Land At January 1, 2012 Additions Disposals Depreciation Transfers and other (i) At December 31, 2012 Additions Disposals Depreciation Transfers and other (i) At June 30, 2013 1,853,243 32 (56,768) 19,179 1,815,686 (27,905) 316 1,788,097
Buildings 1,562,120 299 (5,201) (122,268) 54,809 1,489,759 131 (701) (60,463) 43,257 1.471.983
Other 46,560 950 (518) (15,389) 11,568 43,171 919 (12,979) (8,336) 23,252 46,027
Total 11,841,247 237,703 (76,996) (814,233) (13,160) 11,174,561 158,094 (86,981) (404,984) 9,652 10,850,342
63 208,907 11,175 (21,717)
(213,980) 214,361 136,927
(150,626) 198,365 200,662
(i) Includes transfers between the accounts biological assets, property, plant and equipment, intangible assets as well the transfer of PIS and COFINS tax credits.
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During the semester ended June 30, 2013 there have been no significant changes with respect to the information presented in the most recent annual financial statements and detailed in Note 19 to these financial statements. 17 Intangible assets The rolling forward of the carrying amounts for the period presented is as follows:
June 30, 2013 At the beginning of the period Amortization of databases, patents and suppliers Acquisition and disposal of software Other At the end of the period 4,717,163 (40,995 ) (5,538 ) 4,060 4,674,690 December 31, 2012 4,809,448 (83,124) (9,192) 31 4,717,163
Composed by Goodwill - Aracruz Systems development and deployment Acquired from business combination Databases Patents Relationships with suppliers Diesel and ethanol Chemical products Other
4,230,450 34,498 250,800 36,491 118,222 4,229 4,674,690
4,230,450 40,004 273,600 46,820 2,668 123,420 201 4,717,163
During the semester ended June 30, 2013 there have been no significant changes to the information presented in the most recent annual financial statements and detailed in Note 20 to these financial statements.
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18 (a)
Loans and financing Breakdown of the balance by type of loan

Current
Average annual charges % June 30, 2013 December 31, 2012 January 1st, 2012 June 30, 2013 December 31, 2012
Non- current
January 1st, 2012 June 30, 2013 December 31, 2012
Total
January 1st, 2012
Type/purpose In foreign currency BNDES - currency basket Export credits (Finnvera) Eurobonds - US$ Eurobonds - JPY Export credits (prepayment) Export credits (ACC/ACE) EIB Europe Inv. Bank Leasing
5.87 3.25 7.29 2.41 2.85
42,730 49,666 54,966 116,271 141,091
49,075 46,319 65,763 218,662 440,604
48,790 42,731 34,575 2,223 29,051 623,632 784 8,773 790,559
266,984 187,203 3,629,204 2,664,218 237,911
233,397 193,959 4,577,197 2,503,308 214,567
220,471 217,218 5,103,839 115,544 2,777,003 5,958
309,714 236,869 3,684,170 2,780,489 379,002
282,472 240,278 4,642,960 2,721,970 655,171
269,261 259,949 5,138,414 117,767 2,806,054 623,632 784 14,731 9,230,592
404,724
In Reais BNDES - TJLP FINAME Rural credit note NCE Midwest Region Fund (FCO and FINEP)
820,423
6,985,520
7,722,428
8,440,033
7,390,244
8,542,851
7.73 7.47 5.50 9.75 8.25
283,124 3,836 35,384 55,428 11,975 389,747 794,471
248,731 7,483 49,344 12,024 317,582 1,138,005 117,992 111,898 908,115 1,138,005
242,321 2,336 45,203 11,689 301,549 1,092,108 114,432 98,667 879,009 1,092,108
1,174,507 12,890 927,367 41,467 2,156,231 9,141,751 5,302 9,136,449 9,141,751
1,216,069 7,182 636,982 47,289 1,907,522 9,629,950 105,053 9,524,897 9,629,950
1,262,260 7,516 463,987 58,513 1,792,276 10,232,309 65,828 10,166,481 10,232,309
1,457,631 16,726 35,384 982,795 53,442 2,545,978 9,936,222 92,639 27,641 9,815,942 9,936,222
1,464,800 14,665 686,326 59,313 2,225,104 10,767,955 223,045 111,898 10,433,012 10,767,955
1,504,581 9,852 509,190 70,202 2,093,825 11,324,417 180,260 98,667 11,045,490 11,324,417
Interest Short-term borrowing Long-term borrowing
87,337 27,641 679,493 794,471
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The average rates were calculated based on the forward yield curve of benchmark rates to which the loans are indexed, weighted through the maturity date for each installment, including the issuing/contracting costs, when applicable. (b) Breakdown by maturity Non-current portion of the debt at June 30, 2013 by maturity:
2014 In foreign currency BNDES - currency basket Export credits (Finnvera) Eurobonds - US$ Export credits (prepayment) Export credits (ACC/ACE) 2015 2016 2017 2018 2019 2020 2021 2022 Total
22,842 23,367 371,824 237,911 655,944
42,422 46,735 269,980
32,201 46,735 418,929
44,183 46,735 615,010
41,830 23,631 454,977
27,035 140,108 432,789
28,668 1,951,073 100,709
24,897 1,538,023
2,906
266,984 187,203 3,629,204 2,664,218 237,911
359,137
497,865
705,928
520,438
599,932
2,080,450
1,562,920
2,906
6,985,520
In Reais BNDES - TJLP FINAME NCE Midwest Region Fund (FCO and FINEP)
166,008 2,480 20,029 5,822 194,339 850,283
309,553 4,959 107,004 11,643 433,159 792,296
168,960 3,225 98,425 11,643 282,253 780,118
155,182 2,059 320,446 11,643 489,330 1,195,258
115,767 167 295,014 409 411,357 931,795
80,163 43,225 307 123,695 723,627
88,498 43,224
79,899
10,477
1,174,507 12,890 927,367 41,467
131,722 2,212,172
79,899 1,642,819
10,477 13,383
2,156,231 9,141,751
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(c)
Breakdown by currency and interest rate Loans and financing are broken down into the following currencies: Currency June 30, December 31, 2013 2012 Real Dollar JPY Currency basket 2,545,978 7,080,530 309,714 9,936,222 Loans and financing broken down by interest rate are as follow: Interest rate June 30, December 31, 2013 2012 CDI TJLP Libor Currency basket Fixed 982,795 1,424,870 3,017,359 309,714 4,201,484 9,936,222 686,326 1,449,587 2,756,150 282,472 5,593,420 10,767,955 January 1st, 2012 509,190 1,504,491 2,929,970 269,261 6,111,505 11,324,417 2,225,104 8,260,379 282,472 10,767,955 January 1st, 2012 2,093,825 8,843,564 117,767 269,261 11,324,417
(d)
Rollforward June 30, 2013 At the beginning of the period Borrowing Interest expenses Foreign exchange Repayments - principal amount Interest paid Expense of transaction costs of Eurobonds redeemed early Other (*) At the end of the period (*) Includes the amortization of transactions costs. 10,767,955 980,824 294,659 524,539 (2,398,040) (352,661) 99,196 19,750 9,936,222 December 31, 2012 11,324,417 864,334 681,840 803,641 (2,410,719) (651,288) 88,759 66,971 10,767,955
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(e)
Relevant operations settled during the period Eurobonds In the first semester ended June 30, 2013, Fibria prepaid a total of US$ 655.6 million (equivalents to R$ 1,309,941) regarding to the Eurobonds Fibria 2020 and Fibria 2021 issued in May 2010 and March 2011, for which the original maturities were May 2020 and March 2021 with a fixed interest rate of 7.5% and 6.75% per year, respectively. As a result of the early redemption, we recognized financial expenses amounting to R$ 287,402, of which R$ 188,206 relating to the premiums paid in the repurchase transaction and R$ 99,196 relating to the proportional amortization of the transaction costs of the Eurobonds. Export credits (ACC) In the first quarter of 2013, Fibria paid a total of US$ 125 million (equivalents to R$ 255,111) in relation to export credits (ACC) with fixed interest rates of between 2.05% p.a. and 2.09% p.a. Over the same period, Veracel (Fibrias joint operation) paid a total of US$ 22.8 million (equivalents to R$ 45,766), of export credits (ACC), with fixed interest rates of between 2.07% p.a. and 4.75% p.a. Export credits (prepayments) In April 2013, the Company early repaid the amount of US$ 100 million (equivalents to R$ 199,390) regarding two export credits prepayments, which were contracted in October and November 2010, with maturity in October 2018 and fixed-interest rate of 5.3% p.a. Export Credit Note (NCE) In June 2013, the Company early repaid the amount of R$ 205,924 of the NCE with Banco Safra (which corresponds to 40% of the total) and signed and amendment for the remaining balance with a reduction on the cost of the contract from 100% of the CDI plus 1.85% p.a. to 100% of the CDI plus 0.85% p.a. and maturity in 2018.
(f)
Relevant operations contracted during the period Unused credit lines In April 2013, the Company obtained a revolving credit facility with Banco Bradesco, in the amount for R$ 300,000 with availability for five years and an interest rate of 100% of the CDI plus 1.5 p.a., when fully used. During the unused period, the Company will pay a commission in Reais of 0.05% p.a. quarterly. The Company did not use the credit yet. Export credits (prepayments) In April 2013, the Company, through Fibria Trading International KFT., entered into an export prepayment contract with three banks in the amount of US$ 100 million (equivalents to R$ 201,540), with maturity until 2018 and an initial interest rate of 1.63% p.a. over the quarterly LIBOR. Export Credit Note (NCE) In June 2013, the Company contracted, an NCE with Banco do Brasil in the amount of R$ 497,745, with final maturity in 2018 and interest at 105.85% of the CDI. 44 de 52

BNDES During the second quarter of 2013, BNDES funds in the amount of R$ 135,099 were released, with maturity dates between 2018 and 2022, subject to interest of TJLP plus 2.42% p.a. to 3.45% p.a. and UMBNDES (currency basket) plus 2.42% p.a. to 3.45% p.a. The resources will be used for projects in the forestry and industrial areas. (g) Covenants Some of the financing agreements of the Company contain covenants establishing maximum indebtedness and leverage levels, as well as minimum coverage of outstanding amounts. Covenants requirements On June 6, 2012, the Company concluded the renegotiation of the debt financial covenants, which resulted in the following changes: (a) covenants are now measured based on the consolidated information translated into US Dollars (as opposed to the consolidated financial information in Reais), and (b) the indebtedness ratio (Net debt to EBITDA) was increased to a maximum of 4.5x. The measurement of the ratios based on information translated into US Dollars reduces the effects of changes in exchanges rates compared to ratios based on information measured in Reais. A substantial portion of the debt of the Company is denominated in US Dollars and as a result the depreciation of the Real against the US Dollar has a significant impact on the ratio when it is measured in Reais. Under the prior computation criteria in the event of a depreciation of the Brazilian Real, the amount of net debt as at the end of the period would increase when measured in Reais. Under the revised criteria by translating the EBITDA from Reais to US Dollars at the average exchange rate for each quarter the impact of the depreciation of the Brazilian Real is mitigated. The following table presents the financial covenant ratios: December, 2012 and after Ratio of debt service coverage (i) - Minimum ratio Indebtedness ratio (ii)- Maximum ratio More than 1.00 Less than 4.50
(i) The ratio of debt service coverage is defined as (a) adjusted EBITDA (for the last four quarters) in accordance with the practices adopted in Brazil and adjusted translated into US Dollars at the average exchange rate for each quarter, plus the balance of cash, cash equivalents and marketable securities at the period-end translated into US Dollars at period-end exchange rates divided by (b) debt service payment requirements for the following four consecutive quarters plus interest paid during the past four quarters translated into US Dollars at the average exchange rate for each quarter. (ii) The indebtedness ratio is defined as (a) consolidated net debt translated into US Dollars at the period-end closing rate divided by (b) Adjusted EBITDA for the last four quarters translated into US Dollars at the average exchange rate for each quarter. The Company is in full compliance with the covenants established in the financial contracts at June 30, 45 de 52

2013, for which the debt service ratio totaled 3.2 and the indebtedness ratio totaled 3.0. The debt agreements that have debt financial covenants also include the following events of default: . . . . . Non-payment, within the stipulated period, of the principal or interest. Inaccuracy of any declaration, guarantee or certification provided. Cross-default and cross-judgment default, subject to an agreed minimum of US$ 50 million. Subject to certain allowable periods for resolution, breaches of any obligation under the contract. Certain events of bankruptcy or insolvency of the Company, its main subsidiaries or Veracel Celulose S.A.
19
Contingencies The Company is party to labor, civil and tax lawsuits at various court levels. The provisions for contingencies against probable unfavorable outcomes of claims in progress are established and updated based on management evaluation, as supported by the opinion of external legal counsel. Provisions and the corresponding judicial deposits are as follow:
June 30, 2013 Judicial deposits Nature of claims Tax Labor Civil Judicial deposits December 31, 2012 Judicial deposits January 1st, 2012
Provision
Net
Provision
Net
Provision
Net
125,126 55,412 8,679 189,217
145,100 114,514 13,103 272,717
19,974 59,102 4,424 83,500
123,791 47,703 6,520 178,014
162,222 108,014 12,591 282,827
38,431 60,311 6,071 104,813
119,572 47,819 821 168,212
173,823 88,834 7,149 269,806
54,251 41,015 6,328 101,594
The change in the provision for contingencies is as follows: June 30, 2013 At the beginning of the period Reversal New litigation Accrual of financial charges At the end of the period 282,827 (35,113) 4,929 20,074 272,717 December 31, 2012 269,806 (39,129) 8,923 43,227 282,827
See below the relevant changes in relation to lawsuits and discussions in the semester ended June 30, 2013:
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(i)
Income tax assessment - Normus In March 2013, Fibrias subsidiary Normus Empreendimentos e Participaes Ltda. received an income tax assessment from the Brazilian Federal Revenue Service (Receita Federal do Brasil) amounting to R$ 264,741, being R$ 124,222 of the principal and R$ 140,519 of penalties and interest. Despite the Company maintaining business transactions with countries with which Brazil has signed international double taxation treaties, the Brazilian Federal Revenue Service claimed Income Tax (Imposto de Renda) and Social Contribution (Contribuio Social sobre o Lucro Lquido) on the earnings of its foreign subsidiary for the year 2008. Based on the position of legal counsel, the assessment of loss was considered reasonably possible, such as the other income tax assessment involving Normus. We presented proceeding contesting, on which judgment is pending.
(ii)
Tax assessment (ICMS - So Paulo) Adherence to Special Program Installment In August 2009, the Company was notified by the State Treasury of the State of So Paulo, in the amount of R$ 21,841, including interest and penalties. The Company made a provision amounting R$ 29,178 for the assessment received in August 2009. This assessment refers to transactions in which we, as appointed by the customer, informed the Distrito Federal as a destination of the products, applying the tax rate of 7%. However, the products were removed and delivered to another branch of the same customer in the State of So Paulo. Thus, as there was not an interstate transaction, the State Treasury of So Paulo applied the internal tax rate for the State of So Paulo, 18% in place of the tax rate of 7% applied prior to the operation. Considering that the loss was classified as probable, in June 2013 the Company adhered to the Special Installment Program for the payment of the debt less penalties and interest, and paid the amount of R $ 14.8 million, on July 8, 2013 in a single installment.
(iii)
Class Action In November 2008, a securities class action lawsuit was filed against the Company and some of its current and former officers and directors on behalf of purchasers of the Company's ADRs between April 7 and October 2, 2008. The complaint alleges violations of the US Securities Exchange Act, asserting that the Company failed to disclose information in connection with, and losses arising from, certain derivatives transactions. During our Board of Directors meeting in December 2012, the Company ratified, the agreement under judicial mediation, where the Company and the other co-defendants agreed to pay the full amount of US$ 37.5 million (equivalent to R$ 76.6 million) to all holders of American Depositary Receipts (ADRs), from April 7 to October 2, 2008. The Company has an active Directors and Officers(D&O) insurance policy, which will cover the full disbursement mentioned above, with no material effect on the company. On March 28, 2013, Fibria paid an amount of US$ 37.5 million (equivalent to R$ 75.4 million) and was reimbursed under the D&O policy, as agreed by the Company and the other co-defendants in 2012.
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20 (a)
Employee benefits Medical assistance provided to retirees The Company entered into an agreement with the So Paulo State Pulp and Paper Industry Workers' Union to provide funding for a lifetime medical assistance plan (SEPACO) for all of the Company's employees, their dependents (until they come of age), and their spouses (for life). The Company's policy determines that the cost of the benefits should be allocated from the date of hiring to the date on which the employee becomes eligible to receive the medical assistance benefit. Following the adoption of IAS 19/CPC 33(R1) - Employee benefits, the corridor method for recognizing actuarial gains and losses is no longer permitted, and for that reason the Company should recognize immediately in the balance sheet the effects of the actuarial gains or losses in the period in which they occur, within Other comprehensive income. The outstanding balance of actuarial obligations for the semester ended June 30, 2013 was R$ 97,809.
21 (a)
Net revenue Reconciliation

June 30, 2013 Gross amount Sales taxes Discounts and returns (*) Net revenues (*) Mainly related to export customers' performance rebate. 3,680,567 (61,301) (500,674) 3,118,592 June 30, 2012 3,253,376 (63,453) (425,149) 2,764,774
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(b)
Information about products The following table presents the net revenue segregated by type of product, the volume and the respective destinations: June 30, 2013 Pulp Volumes (kilotons) Domestic market Foreign market June 30, 2012
219,813 2,235,843 2,455,656
262,508 2,315,772 2,578,280
Pulp revenue Domestic market Foreign market
231,494 2,851,357 3,082,851
226,722 2,506,970 2,733,692 1,060
Average price (in Reais per ton) Revenue Domestic market Foreign market Services
1,255
231,494 2,851,357 35,741 3,118,592
226,722 2,506,970 31,082 2,764,774
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22
Financial results June 30, 2013 Financial expenses Interest on loans and financing Loans commission Financial charges on the partial repurchase of Eurobonds Other June 30, 2012
(294,659) (20,476) (287,402) (27,405) (629,942)
(351,285) (36,136) (15,934) (403,355)
Financial income Financial investment earnings Other
53,148 6,488 59,636
87,879 8,801 96,680
Gains (losses) on derivative financial instruments Gains Losses
133,065 (281,909) (148,844)
298,377 (409,978) (111,601)
Gain (losses) on monetary and foreign exchange Loans and financing Other assets and liabilities
(524,539) 15,313 (509,226)
(711,119) 86,275 (624,844) (1,043,120)
Net financial result
(1,228,376)
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23
Expenses by nature June 30, 2013 Cost of sales Depreciation, depletion and amortization Freight Salaries and benefits to employees Variable costs (883,260) (345,595) (199,493) (1,101,503) (2,529,851) Selling expenses Salaries and benefits to employees Commercial expenses (*) Operational leasing Depreciation and amortization charges Other expenses June 30, 2012 (888,369) (315,924) (209,830) (1,064,110) (2,478,233)
(8,229) (142,979) (814) (3,445) (6,619) (162,086)
(10,527) (127,110) (622) (6,423) (5,731) (150,413)
General and administrative and directors fee expenses Salaries and benefits to employees Third-party services (consulting, legal and other) Depreciation and amortization charges Donations and sponsorship Other expenses
(53,612) (61,176) (11,302) (3,083) (9,168) (138,341)
(53,263) (58,379) (11,697) (2,820) (4,325) (130,484)
Other operating expenses, net Program of variable compensation to employees Changes in fair value of biological assets Other
(27,086) 36,100 609 9,623
(27,197) 265,798 (3,787) 234,814
(*) Includes handling expenses, storage and transportation expenses and sales commission, among other items.
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24 (a)
Earnings per share Basic
Continued operations June 30, 2013 Loss attributable to the shareholders of the Company Weighted average number of common shares outstanding Basic loss per share (in Reais) June 30, 2012
(573,878)
(536,969)
553,591,822 (1.037)
496,258,491 (1.082)
The weighted average number of shares in the presented periods are represented by the total number of shares which makes up the capital of the Company, a total of 553,934,646 shares for the semester ended June 30, 2013 and 2012, not including treasury shares, of which there were a total of 342,824 in the semester ended June 30, 2013 and 342,822 shares in the semester ended June 30, 2012. (b) Diluted The Company has no debt convertible into shares or share purchase options. Consequently, there are no potential common shares for dilution purposes. 25 Explanatory notes not presented According to the requirements for disclosure contained in Circular-Letter CVM/SNC/SEP/ No. 003/2011, we presented explanatory notes to the annual financial statements detailing estimates of the fair value of financial instruments (N0te 6), financial instruments by category (Note 7) credit quality of financial assets ( Note 8), financial and operational lease agreements (Note 21), advances to suppliers (Note 22), the tax amnesty and refinancing program (Note 25), long term commitments (Note 26), shareholder's equity (Note 27), benefits to employees (Note 28), and insurance (Note 33), impairment tests (Note 36), that we omitted in the June 30, 2013 interim financial information because the assumptions, operations and policies have not seen relevant changes compared to the position presented in the financial statements as at December 31, 2012. In addition, the Company no longer has reportable segments to present as at June 30, 2013, therefore the segment information Note was excluded.
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Earnings 2Q13
Earnings 2Q13
Free cash flow reached R$956 million in the LTM. Net debt to EBITDA in dollars reduced to 3.0x.
Key Figures Pulp Production Pulp Sales Unit 000 t 000 t 2Q13 1,291 1,269 1Q13 1,263 1,186 2Q12 1,275 1,265 2Q13 vs 1Q13 2% 7% 2Q13 vs 2Q12 1% 6M13 2,554 2,456 6M12 2,607 2,578 6M13 vs Last 12 6M12 months (LTM) -2% -5% 5,246 5,234
Net Revenues Adjusted EBITDA(1) EBITDA margin Net Financial Result(2) Net Income (Loss)
R$ million R$ million % R$ million R$ million
1,669 647 39% (1,162) (593)
1,449 565 39% (66) 24
1,491 550 37% (1,235) (524)
15% 15% 0 p.p. -
12% 18% 2 p.p. -6% 13%
3,119 1,211 39% (1,228) (570)
2,765 927 34% (1,043) (534)
13% 31% 5 p.p. 18% 7%
6,528 2,537 39% (1,881) (733)
Free Cash Flow (3)
R$ million
234
167
57
40%
306%
401
281
43%
956
Gross Debt (US$) Gross Debt (R$) Cash(4) Net Debt Net Debt/EBITDA LTM Net Debt/EBITDA LTM (US$)(5)
US$ million R$ million R$ million R$ million x x
4,485 9,936 1,683 8,253 3.3 3.0
4,915 9,898 2,382 7,516 3.1 3.1
5,878 11,882 3,420 8,462 4.7 4.2
-9% -29% 10% 0.2 x -0.1 x
-24% -16% -51% -2% -1.5 x -1.2 x
4,485 9,936 1,683 8,253 3.3 3.0
5,878 11,882 3,420 8,462 4.7 4.2
-24% -16% -51% -2% -1.5 x -1.2 x
4,485 9,936 1,683 8,253 3.3 3.0
(1) Adjusted by non-recurring and non-cash items | (2) Includes results from financial investments, monetary and exchange variation, mark-to-market of hedging and interest (3) Does not include the sale of assets | (4) Includes the hedge fair value | (5) For covenants purposes
2Q13 Highlights
New cash tender of Bonds maturing in 2020 amounting to US$486 million will provide annual savings of US$36 million in interest payments. 24% reduction in gross debt in dollars relative to 2Q12 (from US$5,878 million to US$4,485 million). In reais, gross debt remained stable at R$9,936 million (Mar/13: R$9,898 million) due to the dollars appreciation. Net Debt/EBITDA ratio in dollars of 3.0x, (metric used for covenant verification) compared to 3.1x in Mar/13 and 4.2x in Jun/12. The USD appreciation explains the leverage increase in reais from 3.1x in Mar/2013 to 3.3x in Jun/2013. The cost of dollar-denominated debt was reduced to 4.7% p.a. (1Q13: 5.2% p.a. | 2Q12: 5.4% p.a.). Scheduled maintenance downtimes concluded at the Aracruz A and B mills and Trs Lagoas units. Pulp production reached 1.3 million tons, stable compared to 1Q13 and 2Q12, respectively. LTM production reached 5.246 million tons. Pulp sales of 1.3 million tons, stable over 2Q12 and up 7% sequentially. LTM sales reached 5,234 million tons, corresponding to 100% of the production of the same period. Cash cost was at R$546/t, up 8% sequentially, largely due to the effect of scheduled maintenance downtimes. Y-o-Y, the increase was 8%. EBITDA totaled R$647 million, up 15% and 18% over 1Q13 and 2Q12, respectively, mainly due to higher pulp prices in dollars and average dollar appreciation against the real. LTM EBITDA totaled R$2,537 billion, up 13% as compared to 2012. EBITDA Margin of 39%, stable over 1Q13 and 2 p.p. higher year-on-year. EBITDA/t of R$509/t (US$246/t), an increase of 7% and 17% q-o-q and year-on-year, respectively. Fibrias free cash flow in the LTM totaled R$956 million (US$94/t), representing 7% free cash flow yield on 06/30/2013. Loss of R$593 million (1Q13: R$24 million | 2Q12: R$(524) million), due to accounting effects of a 10% dollar appreciation on foreign currency debt (R$650 million) and effects of the cash tender of bonds maturing in 2020 (R$224 million). Excluding these effects, net income for the quarter would have been approximately R$80 million.
Market Value June 30, 2013: R$13.7 billion | US$6.1 billion FIBR3: R$24.75 FBR: US$11.09 Outstanding Shares: 553,934,646 common shares
Conference Call/Webcast: July 24, 2013 Conference call and Webcast in Portuguese with simultaneous translation into English Tel: +55 11 4688-6361 | +1 786 924-6977 Webcast: www.fibria.com.br/ir
Investor Relations Guilherme Cavalcanti Andr Gonalves Roberto Costa Isabela Cerbasi ir@fibria.com.br | +55 (11) 2138-4565
The operating and financial information of Fibria Celulose S.A. for the second quarter of 2013 (2Q13) are presented in this document on a consolidated basis and expressed in Brazilian Reais (R$), unaudited and prepared in accordance with the requirements of the Brazilian Corporate Law. The results of Veracel Celulose S.A. are proportionally consolidated (50%) in this earnings release, thereby eliminating the effects of all intercompany transactions.
Earnings 2Q13
Contents
Executive Summary 4 Pulp Market...5 Production and Sales......8 Results Analysis...8 Financial Result...11 Net Income...13 Debt...14 CAPEX......16 Free Cash Flow...17 Capital Markets....17 Appendix I Revenues x Volume X Price......19 Appendix II Income Statement.....................20 Appendix III Balance Sheet..........................21 Appendix IV Cash Flow................................22 Appendix V EBITDA and adjusted EBITDA (CVM Instruction n 527/2012).23 Appendix VI Economic and Operating Information24
Earnings 2Q13
Executive Summary
Throughout the second quarter of 2013, internal and external factors led to an environment of uncertainty and volatility in global financial markets, impacting the Brazilian market, with an effect of a 16% devaluation of the Bovespa index in 2Q13. The more positive outlook of the U.S. economy, release of lower than expected economic indicators in China and the confirmation of weak activity in major European markets resulted in the appreciation of the dollar against the major currencies worldwide. This movement was more evident in Brazil, largely due to a less optimistic outlook on the country's economic growth in 2013, besides the challenge of controlling the inflation. As a result, the dollar went up from R$/US$2.01 at the end of March to R$/US$2.22 at the end of June, a 10% appreciation of the U.S. dollar against the real. The dollars appreciation had relevant effects on the operating and financial results, especially the increase in both net revenues and EBITDA, which were 13% and 31% higher, respectively, in the 6M2013 when compared to the same period in 2012. On the other hand, the exchange rate variation on the share of foreign currency debt was R$650 million, the main reason for the loss registered in this quarter. It is worth noting that this is primarily an accounting effect due to the Companys export profile, that holds more than 90% of its debt in dollars and, therefore, the currency appreciation raises the amount of debt upon conversion from dollars to reais. In addition to this effect on the debt, a more appreciated dollar will have positive impacts on operating income and free cash flow. Pulp production in 2Q13 was 1,291 thousand tons, up 2% as compared to 1Q13, despite the scheduled maintenance downtimes at Aracruz A and B mills and Trs Lagoas unit. Comparing to the 2Q12, production was up 1% due to higher number of mills performing maintenance downtimes in that quarter. Sales volume totaled 1,269 thousand tons, up 7% as compared to 1Q13 due to both higher pulp availability and seasonal factors of 1Q13. Year-on-year, the volume was stable, with a demand recovery in North America offsetting lower sales volume in the domestic market. In the last twelve months, Fibrias sales amounted to 5,234 thousand tons. Production cash cost was R$546/t, up 8% sequentially, largely due to the scheduled maintenance downtimes at the Aracruz A and B and Trs Lagoas units. Excluding the effects of the downtime, the cash cost was R$488/t, up 5% and 7% over 1Q13 and 2Q12, respectively. We remain focused on cost and expenses control and operating excellence, so that the increase stays under the inflation. For more information, see page 9.
In 2Q13, adjusted EBITDA totaled R$647 million with margin at 39%. Quarter-on-quarter, there was 15% increase, chiefly due to higher average net price in reais and higher sales volume. Year-on-year, the 18% rise in EBITDA and the 2 p.p. expansion in margin were driven by the 12% higher net pulp price in reais, in its turn as the result of the higher pulp price in dollars in the last 12 months, coupled with the average dollar appreciation of 5.3% against the real. LTM EBITDA totaled R$2,537 million, up 13% over the 2012 EBITDA of R$2,253 million, while margin was at 39%. In 2Q13, Fibrias free cash flow totaled R$234 million, as compared to R$167 million and R$57 million, in 1Q13 and 2Q12, respectively. The increase in cash flow was chiefly due to the higher EBITDA and initiatives to improve working capital, even with the partial early settlement of an Export Credit Note whose interest payment amounted to R$53 million (excluding such payment, free cash flow would have been R$287 million). Free cash flow totaled R$956 million in the LTM.
The financial result was negative R$1,162 million in 2Q13 against negative R$66 million in 1Q13. The variation is mainly explained by impacts of foreign exchange variation on dollar-denominated debt (due to the 10% appreciation of the closing dollar) and by the non-recurring financial and accounting effects related to the cash tender offer of part of the bonds maturing in 2020. Compared to 2Q12, the 6% lower expense is due to the larger effect of exchange rate changes on debt in that quarter (R$865 million), in turn explained by the appreciation of the U.S. dollar against the real in that period (11%) over a higher balance of total debt (2Q12: US$5,878 million | 2Q13: US$4,485 million).
4
Earnings 2Q13
It should be noted that financial expenses fell 9% and 23% quarter-on-quarter and year-on-year, respectively, even with the 10% dollar appreciation against the real, demonstrating the Company's efforts to reduce expenses with servicing the debt. With respect to hedging instruments, the remaining NDF (Non-Deliverable Forwards) matured in the period, and the company focused its position in dollar options (zero cost collar) and swap contracts, in line with the financial strategy and within the parameters of Market Risk Policy available on the Fibria`s Investor Relations website
(http://fibria.infoinvest.com.br/static/enu/politicas-manuais-regimentos.asp?idioma=enu).
In May 2013, Fibria announced a cash tender offer of part of the 2020 bonds issued by Fibria Overseas Finance Limited, a wholly owned subsidiary of Fibria, with a coupon of 7.5% p.a. This operation is in line with Fibrias strategy of reducing its gross debt and will provide the Company with annual savings of approximately US$36 million as of the second quarter of 2013, equal to nearly US$215 million at net present value. Expenses related to the cash tender offer of the bonds had negatively impacted the financial results in approximately R$224 million. Fibria also partially settled an Export Credit Note in the amount of R$206 million, which cost (100% CDI + 1.85% p.a) was higher than the average cost of Companys debt. Upon completion of these transactions, the average cost of debt on foreign currency came down from 5.2% p.a. in 1Q13 to 4.7% p.a. in 2Q13. Despite of the reduction on the debt principal, gross debt in reais remained stable due to the 10% exchange rate variation on the portion of the debt in dollars (93%), as previously mentioned. In dollars, however, the debt management initiatives allowed the debt to drop from US$4,915 million in 1Q13 to US$4,485 in 2Q13, a 9% decline, and the net debt/EBITDA ratio in dollars was 3.0x, the lowest level since the Fibrias creation. Yean-on-year, the 24% reduction attests Fibrias focus on debt reduction and the continuous pursuit of investment grade. As a result of these factors, Fibria recorded a loss of R$593 million in 2Q13, compared to net income of R$24 million in 1Q13 and a loss of R$524 million in 2Q12. Excluding the effects of the 10% appreciation of the dollar on foreign currency debt (R$650 million) and the cash tender offer of bonds maturing in 2020 (R$224 million), the net result of the quarter would have been a profit of around R$80 million.
Pulp Market
In the first 5 months of 2013, sales of eucalyptus pulp presented growth of 3% compared to the same period of 2012 according to the Pulp and Paper Products Council (PPPC) data. Deserves highlight the positive results presented by the United States and China.
The significant growth in North Americas demand this year has been driven by the increased capacity of tissue paper in the U.S. coupled with the conversion of Sappis partially integrated hardwood pulp line during the quarter, which, in addition to removing approximately 270 thousand tons of market pulp available for sale, has generated an extra demand of 180 thousand tons to feed the printing and writing paper machine that are still in operation at the plant. In China, the 9.0% increase in eucalyptus pulp shipments year-to-date is also the result of investments in new capacities that are leading to a gradual increase in pulp demand. About 4.4 million tons of printing and writing paper, tissue, and cartonboard deriving from new capacities came onstream in 2012. In addition, 3.6 million tons of new paper machines are expected to be installed in 2013.
Earnings 2Q13
Eucalyptus Pulp Sales Growth by Region (% Growth - 5 months 2013 vs. 2012)
15%
15% 10% 5% 0% -5%

Total
9%
3%
3%
-2%
North America China Others Western Europe
Source: PPPC World 20
On the supply side, maintenance downtime played a key role in 2Q13, removing nearly 420 thousand tons of hardwood pulp, globally. Additional supply restrictions caused by technical issues in some producers (which removed approximately 35 thousand tons of market pulp) and logistical problems resulting from strikes and congestion in ports also impacted pulp shipment, especially at the beginning of the quarter. The chart below shows the estimated impact of hardwood maintenance downtimes for 2013:
Maintenance Downtimes - BHKP ('000 ton) 250 209 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 133 99 73 91 31 42 40 122 237
Source: Fibria and Independent Consultants
Earnings 2Q13
Volumes of hardwood pulp producers inventories maintained a sequence of declines throughout 2Q13, despite the inventories fluctuation in sales days of supply as posted by PPPC. According to PPPC, hardwood pulp producers inventories ended March in 41 days, dropping 3 days to 38 days in April, before going up 1 day in May, reaching 39 days. This variation results from the PPPC calculation methodology used to determine inventories in days of supply, which divides closing inventories in tons in the end of the month by the average daily shipments of the last 3 months.
Inventories January - May ('000 ton/ n of days)
4.000 3.500 3.000 2.500 2.000
41
43 41 41 41 39 38
-1.8% -0.1%
39 37 35 33
1.500 1.000 500 0 jan/13 feb/13 mar/13 apr/13 may/13
31 29 27 25
Inventories at month end

Source: PPPC and Fibria
Total shipments
Days of supply
Inventories level in days of supply at the end of May was in line with the historical average, according to the Special Research Note recently published by PPPC. Currently, the balanced level of the hardwood pulp producers inventories is 39 days, an increase of 10 days since 2000. This increase in average of pulp producers inventory levels is due to a change in market structure consisting of a few key factors, including: (1) increase in the hardwood pulp capacity in Latin America, (2) increase in both distance and reach of the pulp geographical distribution with the increasing importance of China in the market in recent years; (3) transfer of inventories held by consumers to producers. The good market fundamentals, with controlled inventory levels and steady demand, enabled the hardwood PIX/FOEX in Europe to grow by USD$20 per ton during the quarter, reaching USD$820 per ton. A list price increase valid as from the beginning of May was announced, which was partially implemented during the months of May and June, mainly due to a reduced seasonal demand in Asia and the dollar appreciation. A strong increase in pulp shipments in mid-August is expected, as a result of the demand resumption in both European and Asian markets. The next maintenance downtime peak scheduled for September (which will remove approximately 237 thousand tons from the market) coupled with the growing demand will allow a promising market environment during the second half of 2013.
Earnings 2Q13
Production and Sales
Production ('000 t) Pulp Sales Volume ('000 t) Domestic Market Pulp Export Market Pulp Total sales 101 1,168 1,269 118 1,068 1,186 132 1,133 1,265 -15% 9% 7% -24% 3% 488 4,746 5,234 2Q13 1,291 1Q13 1,263 2Q12 1,275 2Q13 vs 1Q13 2% 2Q13 vs 2Q12 1% Last 12 months 5,246
Scheduled maintenance downtimes at the Aracruz A and B mills and Trs Lagoas unit were held in 2Q13. Both occurred according to the Companys annual plan and budget and have been successfully completed. Despite the larger impact of the scheduled maintenance downtimes, pulp production reached 1,291 thousand tons in 2Q13, up by 2% when compared to 1Q13. Comparing to the 2Q12, the volume produced was up 1% due to higher number of mills performing maintenance downtimes in that quarter. Comparing 6M13 to 6M12, production was 2% lower due to the greater impact of the scheduled downtime at the Trs Lagoas Unit, totally concentrated in the first half of 2013. Pulp inventory totaled 781 thousand t (53 days), 2% higher than 1Q13 - 764 thousand t (51 days) and in line with 2Q12 inventories - 779 thousand t (52 days). The calendar below shows the scheduled maintenance downtimes for Fibrias units in 2013. 3Q13 will be impacted by the Jacarei Unit downtime only. There are no scheduled maintenance downtimes for Fibrias units in 4Q13.
Fibria's Maintenance Downtimes Schedule 2013 Mill Aracruz "A" Aracruz "B" Aracruz "C" Jacare Trs Lagoas Veracel Jan Feb Mar May Jun Jul Aug
Pulp sales totaled 1,269 thousand t, up 7% sequentially, due to increased inventories and seasonality in 1Q13. When compared to 2Q12, sales were stable. In the last twelve months, Fibria sold 5,234 thousand tons, representing 100% of its production in the period. Sales to Europe accounted for 43% of total sales, followed by North America at 28%, Asia at 21% and Latin America at 8%.
Results Analysis
Net Revenues (R$ million) Domestic Market Pulp Export Market Pulp Total Pulp Portocel Total 2Q13 108 1,543 1,651 18 1,669 1Q13 124 1,308 1,432 18 1,449 2Q12 121 1,354 1,475 16 1,491 2Q13 vs 1Q13 -13% 18% 15% -2% 15% 2Q13 vs 2Q12 -11% 14% 12% 9% 12% Last 12 months 513 5,942 6,455 72 6,528
Earnings 2Q13
Net revenue from pulp totaled R$1,651 million in 2Q13, up 15% as compared to 1Q13, due to the higher sales volume and higher pulp price in reais, for its part explained by the higher price in dollar and the dollar's 4% average appreciation against the real. Year-on-year, the 12% increase in revenue from pulp was driven by the 12% rise in the average net price in reais, itself derived from the 5% average foreign exchange appreciation in the period and the increase in the pulp price in dollars. LTM net revenue totaled R$6,528 million, up 6% over 2012 revenue. The cost of goods sold (COGS) of R$1,337 million was 12% higher compared to 1Q13, mainly as a result of the increased sales volume and the increased production cash cost. Year-on-year, the 7% increase was also chiefly due to increased production cash cost and the effect of foreign exchange on logistics costs. The cash cost of pulp production in 2Q13 was R$546/t, up 8% as compared to 1Q13, mainly due to the scheduled maintenance downtimes at Aracruz A and B mills and Trs Lagoas Unit. Also contributing to this result was the higher cost of wood, chiefly explained by the larger forest-to-mill distance (2Q13: 179 km | 1Q13: 167 km). Compared to 2Q12, the 8% increase was mainly due to the higher cost of wood (higher transportation costs), higher expenditure on chemicals and energy (mainly due to energy price effect), in addition to the impact of the downtime in Trs Lagoas Unit occurred in in 2Q13 (in 2012, the event occurred in both 2Q12 and 3Q12). Excluding the downtime effect, the cash cost was R$488/t, being 5% and 7% higher than 1Q13 and 2Q12, respectively. It should be noted that in the last twelve months, inflation according to the Extended Consumer Price Index (IPCA) was 6.7% and appreciation of the dollar against the real reached 5%. Fibria continues pursuing its goal of keeping control of the cash cost increase at lower pace than inflation rate. The table below shows the evolution of the cash cost of production and the explanations for the main variations in the quarter and year:
Pulp Cash Cost 1Q13 Maintenance Downtime Wood cost (higher forest-mill distance - 2Q13: 179 km | 1Q13: 167 km) Higher expenditure on chemicals and energy (consumption) Exchange rate Others 2Q13
R$/t 507 15 13 10 3 (1)
Cash Cost (R$/t)

505 507 546
2Q12
546
1Q13
2Q13
Pulp Cash Cost 2Q12 Wood (higher transportation costs) Higher expenditure on chemicals and energy (price) Maintenance Downtime Exchange rate Others 2Q13
R$/t 505 14 12 9 4 2 546
Cash Cost ex-Downtime (R$/t)

455 463 488
2Q12
1Q13
2Q13
Earnings 2Q13
Production Cash Cost 2Q12
Other Fixed Personnel 4% 6% Maintenance 16% Maintenance 17% Wood 41% Other Variable 2% Fuel 11% Chemicals 20%
Production Cash Cost 2Q13

Personnel 6% Other Fixed 3%
Wood 41%
Other variable 2% Fuel 10% Chemicals 21% Variable costs
Fixed costs
In 2Q13, sales expenses totaled R$91 million, up 29% compared to 1Q13, due to higher expenses with terminals (mostly domestic), higher sales volume and sales mix. As compared to 2Q12, sales expenses were 14% up, due to higher expenses with terminals and to the exchange rate effect (appreciation of 5.3% of average dollar against the real). It is important to highlight that the ratio sales expenses net revenue was stable (5%) comparing with both periods. Administrative expenses totaled R$73 million, up 10% and 6% quarter-on-quarter and year-on-year, respectively, chiefly due to higher expenses with indemnities. Other operating revenues (expenses) totaled R$12 million in 2Q13, compared to an expense of R$2 million in 1Q13, due in large part to the fair value of biological assets of R$36 million. As compared to 2Q12 (R$248 million revenue), the decline in revenue is explained by the R$266 million variation in the fair value of biological assets (CPC 29) in that quarter.
EBITDA (R$ million) and EBITDA Margin (%) 39% 37% 550 565 434 39% EBITDA/t (R$/t) 647 476 509
2Q12
1Q13
2Q13
2Q12
1Q13
2Q13
Adjusted EBITDA totaled R$647 million in 2Q13 with margin at 39%. When comparing to the 1Q13, EBITDA increased by 15%, mainly explained by the increase in the average net price in reais, driven by the dollars 4% appreciation against the real, higher pulp prices in dollars and higher sales volume. Year-on-year, EBITDA was up 18% with EBITDA margin expanding 2 p.p. This
10
Earnings 2Q13
result was due to 12% higher average net pulp price in reais, in turn explained by the 5% dollar appreciation against the real and rise in the pulp price in dollars. The graph below shows the key variations in the quarter:
EBITDA 2Q13 x 1Q13 (R$ million)

115 106 565 550 (15) (111) (20) (7) 13 646 1 647
1Q13 Adjusted Non-recurring 1Q13 EBITDA EBITDA effects / noncash
Volume
Price/FX
COGS
Selling
G&A
Other oper. expenses
EBITDA 2Q13 Non-recurring Adjusted effects / non- EBITDA 2Q13 cash
Financial Result
(R$ million) Financial Income (including hedge result) Interest on financial investments Hedging(1) Financial Expenses Interest - loans and financing (local currency) Interest - loans and financing (foreign currency) Monetary and Exchange Variations Foreign Exchange Variations - Debt Foreign Exchange Variations - Other Other Financial Income / Expenses(2) Net Financial Result
(1) (2)
2Q13 (180) 20 (200) (140) (46) (94) (595) (650) 55 (247) (1,162)
1Q13 84 33 51 (154) (45) (109) 86 125 (39) (82) (66)
2Q12 (173) 45 (218) (182) (48) (134) (864) (981) 117 (16) (1,235)
2Q13 vs 1Q13 -39% -9% 2% -14% -
2Q13 vs 2Q12 4% -56% -23% -4% -30% -31% -34% -53% -6%
6M2013 (96) 53 (149) (294) (91) (203) (509) (525) 16 (329) (1,228)
6M2012 (24) 87 (111) (352) (98) (254) (624) (711) 87 (43) (1,043)
6M2013 vs 6M 2012 -39% 34% -16% -7% -20% -18% -26% -82% 18%
Change in the marked to market (2Q13: R$ (407) million | 1Q13: R$ (210) million) added to received and paid adjustments. Includes financial charges from 2020 Senior Notes Tender Offer in 2Q13
Financial revenue from interest on marketable securities was R$20 million, down 39% quarter-on-quarter, mainly due to reduction in cash, which, for its part, was used for the debt settlement (principal and interest). Year-on-year, the 56% fall is primarily explained by reduced returns due to the lower CDI rate by the end of June (2Q13: 7.72% p.a. | 2Q12: 8.38% p.a.) and the 37% reduction in cash balance invested in domestic currency. Hedge operations resulted in a negative R$200 million, R$159 million of which from the negative variation in the fair value of debt hedge instruments (see chapter on derivatives - page 12). It is important to highlight that the cash effect of derivative transactions in 2Q13 was negative in R$3 million. Financial expenses with interest on loans and financing totaled R$140 million in 2Q13, down by 9% quarter-on-quarter mainly as a result of the reduction in the principal amount of gross debt related to the amortizations and prepayments held in period, totaling R$1,378 million. Compared to 2Q12, the 23% reduction (R$42 million) was mainly due to the debt reduction, which occurred between these periods. These results demonstrate the Company's commitment to reduce its high cost debt, in order to improve free cash flow generation. Foreign exchange losses on dollar-denominated debt, which represents 93% of gross debt, were R$650 million, compared to income of R$125 million in 1Q13. This revenue reversal was due to the 10% appreciation of the closing dollar (R$2.2156) against the real in the period, compared to the dollar devaluation by 1.5% in the previous quarter. In the year-on-year
11
Earnings 2Q13
comparison, there was a 34% reduction in this expense, when the dollar appreciation against the real was 10.9% and the debt amount was higher (US$5,878 million). Other financial revenue (expense) totaled an R$247 million expense, up R$165 million sequentially, primarily due to financial and accounting effects incurred in the early settlement of bonds maturing in 2020, held in the period. This operation is in line with Fibrias strategy of reducing its gross debt and will provide the Company with annual savings of approximately US$36 million as of the second quarter of 2013, equal to US$215 million at net present value. The same factor explains the year-onyear variation. On June 30, 2013 the marked-to-market financial derivatives position was negative at R$407 million (being negative R$36 million of operating hedge and negative R$371 million of debt hedge), as opposed to the negative marked R$210 million on March 31, 2013, totaling a negative variation of R$197 million. This fair value result is primarily explained by the closing dollar appreciation on 06/30/2013 (R$2.2156) as compared to 03/31/2013 (R$2.0138), which generated a negative effect especially on the swaps liability legs. Cash disbursement, from operations that matured in the period, was R$3 million. Thus, the net impact on financial result was negative at R$200 million. The table below shows the hedge positions at the end of June:
Swaps
Maturity
Notional jun/13 mar/13 $ 533 R$ 546 R$ 539 R$ 172
Fair Value jun/13 R$ 1,336 R$ R$ R$ 711 487 479 mar/13 R$ 1,074 R$ R$ R$ 706 529 159
Receive US Dollar Libor (1) Brazilian Real CDI (2) Brazilian Real TJLP (3) Brazilian Fixed (4) Receive Total (a) Pay US Dollar Fixed (1) US Dollar Fixed (2) US Dollar Fixed (3) US Dollar Fixed (4) may/19 aug/20 jun/17 dec/17 $ 602 $ 300 $ 313 $ 294 $ 533 $ 303 $ 331 $ 92 R$ (1,318) R$ (1,078) R$ R$ R$ (828) R$ (699) R$ (539) R$ (760) (671) (172) may/19 aug/20 jun/17 dec/17 $ 602 R$ 541 R$ 509 R$ 600
R$ 3,013
R$ 2,468
Pay Total (b) Net (a+b) Forward Contract Short USD Position NDF (Dlar) $ $ 20
R$ (3,384) R$ (2,680) R$ (371) R$ (212)
R$
R$
(1)
Forward Total (c)
R$
R$
(1)
Option US Dollar Option Option Total (d) up to 15M $ 996 $ 785 R$ R$ (36) R$ (36) R$ 4 4
Net (a+b+c+d)
R$
(407) R$
(210)
12
Earnings 2Q13
In line with the exchange hedging strategy announced in previous quarters, the notional value of NDFs was eliminated, offset by the increased notional value of dollar options (zero cost collar). Zero cost collar operations have become more attractive than NDFs in the current foreign exchange scenario, especially with the dollar's volatility, as it allows the Company to lock in an exchange rate at the same time that it minimizes negative impacts should the dollar increase sharply. The instrument consists in securing against an excessive devaluation of the dollar and do not imply in losses to the contained appreciation of the dollar at a given level of exchange rate. On the contracted exchange rate range, Fibria does not pay for and does not receive the adjustment. At the same time that the company is protected in these scenarios this characteristic allows to capture greater benefits in export revenues in the event that the dollar appreciates. These instruments have a maximum term of 18 months, covering 40% of the exchange exposure and have as sole purpose to protect cash flow exposure. The derivative instruments used by the Company to hedge its debt (swaps) seek to transform debt in reais to debt in dollars, or to protect existing debt agains sharp fluctuations in interest rates. Thus, all swap asset legs are matched with the flows of the respective hedged debts. The fair value of these operations corresponds to the net present value of expected flows until maturity (average 52 months) and therefore, it has higher fair value and reduced cash impact. All the financial instruments, both to cash flow hedge and debt hedge, were contracted in accordance with the parameters in the Market Risk Management Policy and are conventional without leverage or stipulations for margin calls, duly registered with the Securities Clearinghouse (CETIP), and cash adjustments are only recognized upon the contracts maturity and amortizations. The Companys Governance, Risk and Compliance area is responsible for the verification and control of positions involving market risk and independently reports directly to the CEO and to other areas and bodies involved in the process, ensuring policy applicability. Fibrias Treasury is responsible for the implementation and management of financial operations. In order to illustrate the exchange rate impact on the results and cash flow, assuming the closing exchange rate for the quarter (R$2.22) was equal to the LTM average (R$2.03), the impact would have been of R$457 million in additional EBITDA. On this scenario, the net debt to EBITDA ratio in Reais would have been 2.8x. This analysis is intended to show that Fibrias operating result on appreciated dollar scenario has greater effects that compensates more the negative mark-to-market operational hedge. Zero cost collar instruments protect 40% of the currency exposure while LTM net revenues had 91% exposure to foreign markets.
Net Income
In 2Q13, Fibria posted losses of R$593 million, against profit of R$24 million quarter-on-quarter. The variation was mostly due to the negative financial results, in turn due to the 10% dollar appreciation against the R$650 million debt and the accounting and financial effect of the R$224 million cash tender offer during the quarter. Excluding the effects of exchange rate variation and the cash tender, net income for the quarter would have been a profit of approximately R$80 million. As compared to 2Q12, despite the improved operating and financial results, the loss was 13% higher, as a result of the R$266 million positive effect in the fair value of biological assets in that quarter.
13
Earnings 2Q13
647
Net Income (R$ million)
(810)
Debt Hedge (Swap).
(224) (40) (140) (466)
389
51 (593)
2Q13 Adjusted EBITDA
Exchange Rate Variation on Debt and MtM Variation Debt Hedge (Swap)(1)
Expenses related to 2020's senior notes tender offer(2)
Operational Hedge
Interest on loan
Depreciation, Depletion and Amortization
Income Tax
Other(3)
2Q13 Net income
(1) The fair value does not represent the obligation of payment or immediate receipt, once the effect should occur on the contractual verification or maturity of each operation. (2) From the total amount of R$ 224 million, R$ 146 million represents the premium paid to the bondholders (3) Includes financial income, other monetary and exchange variations, other financial income/expenses, non recurring/non cash expenses
Debt
Unit Gross Debt Gross Debt in R$ Gross Debt in US$ Average maturity Short-term debt Cash in R$ Cash in US$ Fair value of derivative instruments Cash
(2) (1)
Jun/13 9,936 696 9,241 57 8% 1,434 656 (407) 1,683 8,253 3.3 3.0
Mar/13 9,898 792 9,106 62 8% 1,196 1,396 (210) 2,382 7,516 3.1 3.1
Jun/12 11,882 800 11,082 61 18% 2,259 1,450 (289) 3,420 8,462 4.7 4.2
Jun/13 vs Mar/13 -12% 1% -5 20% -53% 94% -29% 10% 0.2 -0.1
Jun/13 vs Jun/12 -16% -13% -17% -4 -10 p.p. -37% -55% 41% -51% -2% -1.4 -1.2
R$ million R$ million R$ million months % R$ million R$ million R$ million R$ million R$ million x

(3)
Net Debt Net Debt/EBITDA (in R$) Net Debt/EBITDA (in US$)
(1) Includes BRL to USD swap contracts. The original debt in dollars was R$7,390 million (74% of the total debt) and debt in reais was R$2,546 million (26% of the debt) (2) Includes the fair value of derivative instruments (3) For covenant purposes
The gross debt balance on June 30, 2013 was R$9,936 million, stable when compared to 1Q13, due to the 10% dollar appreciation against the real over the debt, which portion in dollars remained at 93% of the total, therefore impacting on its raise upon conversion from dollars to reais. Gross debt in dollars, however, was 9% and 24% lower quarter-on-quarter and year-onyear, respectively. The company went on with its debt management initiatives. In the quarter, the amount of R$1,378 million related to debt whose rates were considered unattractive was settled in advance. Out of this total, R$974 million were related to bonds maturing in 2020 (Eurobonds) indexed to a 7.5% p.a. rate, which will provide annual savings of US$36 million in interest payments. Additionally, R$199 million was related to export pre-payment contracts indexed to a 5.3% p.a. rate, and R$206 million referred to the Export Credit Note (ECN) indexed to 100% CDI plus 1.85% p.a. The graph below presents the gross debtrelated transactions in the quarter:
14
Earnings 2Q13
Gross Debt (R$ million)
962
9,898
650
92
9,936
140 (1,806)
Gross Debt Mar/13
Loans
Principal/Interest Payment
Interest Accrual
Foreign Exchange Variation
Others
Gross Debt Jun/13
The average cost of bank debt in domestic currency in Jun/13 was 8.4% p.a., (compared to 7.7% p.a in Mar/13 and 9.0% p.a. in Jun/12), and the cost in dollars was 4.7% p.a., (Mar/13: 5.2% p.a. | Jun/12: 5.4% p.a.) 0.5 p.p. lower than 1Q13 mainly as a result of the partial cash tender of bonds maturing in 2020, whose coupon is 7.5% p.a. The remaining balance of these bonds was R$1,664 million in Jun/13, with the yield being traded at 6.1% at the end of 2Q13. The Company will keep looking for opportunities to reduce higher cost debt. The graphs below show Fibrias debt by instrument, index and currency (including debt swaps):
Gross Debt by Type 7% 27%
Gross Debt by Index 6% 3% 16%
Gross Debt by Currency 7%
10% 19%
37%
Pre-Payment BNDES Others Bond ECN
74%
93%
Libor TJLP
Pre Fixed Others Local currency Foreign currency
The average maturity of the total debt was 57 months in Jun/13, compared with 62 months in Mar/13 and 61 months in Jun/12. The five months reduction in the quarterly comparison is mainly explained by the early settlement of bonds maturing in 2020. The graph below shows the amortization schedule of Fibrias total debt:
Amortization Schedule (R$ million)
2,212 132 1,141 792 504 193 311 2013 391 750 2014 433 359 2015 780 282 498 2016 706 2017 1,195 489 1,643 80 932 411 520 2018 724 124 600 2019 2020 2021 2,080 1,563 13 2022
15
Foreign Currency
Local Currency
Earnings 2Q13
Fibrias cash position on June 30 was R$1,683 million, including the negative R$407 million mark-to-market of hedge instruments. Excluding the mark-to-market effect, of this total, 69% was invested in domestic currency, in fixed-income and public bonds and the remainder, in short- and medium-term investments abroad. The Companys cash position is 2.1x its short term debt (principal and interest), reinforcing its capacity to fulfill its obligations for the next 12 months. Since May 2011, the company has a revolving credit facility in the total amount of US$500 million with four years availability term (from the contract) and 3-month Libor plus 1.55% p.a. quarterly cost when used. In the period of non-use, the Company will pay 35% of the agreed cost. This resource, although not used, helps to improve company's liquidity. In April 2013, a new line of credit was contracted with total value of R$300 million, 5-year term and 100% CDI cost plus 1.5% p.a., when used (in the "stand by" period the cost in reais will be 0.5% p.a.). Therefore, in addition to the current cash position of R$1,683 million, the company also has approximately R$1,400 million of contracted funds not yet used, from these "stand by credit facilities," which have immediate liquidity. The graph below shows Fibrias debt evolution since Jun/12:
Net Debt / EBITDA (x)

(R$) (US$) 4.7 4.2 4.5 4.2 3.4 3.3 3.1 3.1 3.3 3.0 8,253
8,462
8,557
7,745 7,516
Jun/12
Sep/12
Dec/12
Mar/13
Jun/13
Net Debt (R$ million)
CAPEX
(R$ million) Industrial Expansion Forest Expansion Subtotal Expansion Safety/Environment Forestry Renewal Advance for wood purchase (partnership program) Maintenance, IT, R&D, Modernization Subtotal Maintenance 50% Veracel Total Capex 2Q13 15 15 6 198 21 81 307 28 350 1Q13 24 24 3 153 8 46 210 14 248 2Q12 1 13 14 14 177 24 31 246 18 278 2Q13 vs 1Q13 -38% -37% 113% 30% 164% 77% 46% 97% 41% 2Q13 vs 2Q12 15% 8% -54% 12% -12% 162% 25% 53% 26% 6M13 39 39 9 351 29 127 517 42 598 6M12 3 33 36 26 312 51 69 458 32 526 6M13 vs 6M12 18% 9% -64% 13% -43% 84% 13% 30% 14% Last 12 months 1 72 73 31 693 55 222 1,002 75 1,150
16
Earnings 2Q13
Capital expenditures (CAPEX) in the quarter totaled R$350 million, up R$102 million (41%) and R$72 million (26%) quarter-onquarter and year-on-year, respectively, mostly due to increased expenses with forest maintenance, forest purchases and industrial maintenance. It should be noted that LTM CAPEX totaled R$1,150 million and the approved 2013 R$1,244 million budget is maintained.
Free Cash Flow

(R$ million) Adjusted EBITDA (-) Capex including advance for wood puchase (-) Interest (paid)/received (-) Income tax (+/-) Working Capital (+/-) Others Free Cash Flow (1)(2)
(1) (2)
2Q13 647 (350) (188) (12) 151 (14) 234
1Q13 565 (249) (80) (4) (60) (5) 167
2Q12 550 (278) (174) (5) (33) (1) 57
6M13 1,211 (598) (268) (16) 91 (19) 399
6M12 927 (525) (250) (7) 138 (2) 280
Last 12 months 2,537 (1,151) (537) (24) 189 (58) 956
Do es no t include the sale o f assets and the equity acquisitio n o f Ensyn Do es no t include the payment o f the expenses related to 2020's senio r no tes tender o ffer
The positive R$151 million in working capital in 2Q13 as compared to negative R$60 million in 1Q13 and R$33 million in 2Q12 is chiefly due to the receivable discount operations that proved to be adequate in terms of costs for the Company and postponement of suppliers. The working capital line and increased EBITDA explains the main variations in Fibrias free cash flow (FCF) compared to both analyzed periods. It is important to note that the interest line increased by 8% as compared to 2Q12 due to the anticipated debt liquidation, highlighting the partial early NCE settlement (as of debt chapter) whose interest disbursement was R$53 million. This ECN has interest payments on the installments and not on the balance. The amount paid refers to the period between Sep/10 and Jun/13, calculated on the R$206 million settlement. Excluding this effect, the interest payment in the period would have been R$135 million (22% lower than 2Q12) and, therefore, the free cash flow would have been R$287 million. In 2Q13, the FCF was R$234 million and in the LTM it totaled R$956 million.
Capital Markets
Equity
Average Daily Trading Volume (US$ million)
Daily average: US$ 36.7 million 50 3 2 1 0 Apr-13 May-13 BM&FBovespa NYSE Jun-13 0 Apr-13 May-13 BM&FBovespa NYSE Jun-13
100
7 6 5 4
Average Daily Trading Volume (million shares)

Daily average: 3.3 million shares
17
Earnings 2Q13
The average daily trading volume of Fibrias shares was approximately 3,3 million, up 18% quarter-on-quarter. The average daily financial volume in 2Q13 was US$36,7 million, 14% more when compared to 1Q13, being US$18.9 million traded on the BMF&Bovespa and US$17.8 million on the NYSE.
Fixed Income
June 30, 2013 7.5 6.1 5.5 2.5 March 30, 2013 6.7 5.4 5.0 1.8 June 30, 2012 7.5 6.7 6.6 1.6 Jun/13 vs. Mar/13 0.8 p.p. 0.7 p.p. 0.5 p.p. 0.6 p.p. Jun/13 vs Jun/12 -0.1 p.p. -0.7 p.p. -1.1 p.p. 0.8 p.p.
Yield Fibria 2019 Fibria 2020 Fibria 2021 Treasury 10 Years
Unit % % % %
Price Fibria 2019 Fibria 2020 Fibria 2021
Unit USD/k USD/k USD/k
June 30, 2013 108.8 107.9 107.6
March 30, 2013 113.6 112.2 111.5
June 30, 2012 109.6 104.6 100.8
Jun/13 vs. Mar/13 -4% -4% -4%
Jun/13 vs Jun/12 -1% 3% 7%
18
Earnings 2Q13
Appendix I Revenues x Volume X Price*
2Q13 vs 1Q13 Sales (Tons) 2Q13 Pulp Domestic Sales Foreign Sales Total 101,531 1,167,735 1,269,267 118,282 1,068,108 1,186,389 107,898 1,543,238 1,651,137 123,596 1,308,119 1,431,715 1,063 1,322 1,301 1,045 1,225 1,207 (14.2) 9.3 7.0 (12.7) 18.0 15.3 1.7 7.9 7.8 1Q13 Net Revenue (R$ 000) 2Q13 1Q13 Average Price (R$/Ton) 2Q13 1Q13 2Q13 vs 1Q13 (%) Tons Revenue Avge Price
2Q13 vs 2Q12
Sales (Tons) 2Q13 2Q12
Net Revenue (R$ 000) 2Q13 2Q12
Average Price (R$/Ton) 2Q13 2Q12
2Q13 vs 2Q12 (%) Tons Revenue Avge Price
Pulp Domestic Sales Foreign Sales Total 101,531 1,167,735 1,269,267 132,413 1,132,737 1,265,150 107,898 1,543,238 1,651,137 120,857 1,354,226 1,475,083 1,063 1,322 1,301 913 1,196 1,166 (23.3) 3.1 0.3 (10.7) 14.0 11.9 16.4 10.5 11.6
6M13 vs 6M12
Sales (Tons) 6M13 6M12
Net Revenue (R$ 000) 6M13 6M12
Average Price (R$/Ton) 6M13 6M12
6M13 vs 6M12 (%) Tons Revenue Avge Price
Pulp Domestic Sales Foreign sales Total 219,813 2,235,843 2,455,656 262,508 2,315,772 2,578,280 231,494 2,851,357 3,082,851 226,722 2,506,970 2,733,692 1,053 1,275 1,255 864 1,083 1,060 (16.3) (3.5) (4.8) 2.1 13.7 12.8 21.9 17.8 18.4
W
19
Earnings 2Q13
Appendix II Income Statement
INCOME STATEMENT - CONSOLIDATED (R$ million) 2Q13 R$ Net Revenue Domestic Sales Foreign Sales Cost of sales Cost related to production Freight Operating Profit Selling and marketing General and administrative Financial Result Other operating (expenses) income Operating Income Current Income taxes expenses Deffered Income taxes expenses Net Income (Loss) Net Income (Loss) attributable to controlling equity interest Net Income (Loss) attributable to non-controlling equity interest Depreciation, amortization and depletion EBITDA Equity Fair Value of Biological Assets Fixed Assets disposals Accruals for losses on ICMS credits Tax Credits/Reversal of provision for contingencies EBITDA adjusted 1,669 126 1,543 (1,337) (1,157) (180) 332 (91) (73) (1,162) 12 (983) (1) 390 (593) (596) 2 466 646 (36) 39 23 (25) 647 % 100% 8% 92% -80% -69% -11% 20% -5% -4% -70% 1% -59% 0% 23% -36% -36% 0% 28% 39% 0% -2% 2% 1% -1% 39% 565 1Q13 R$ 1,449 141 1,308 (1,192) (1,027) (166) 257 (71) (66) (66) (2) 52 (11) (17) 24 22 2 432 550 (8) 23 % 100% 10% 90% -82% -71% -11% 18% -5% -5% -5% 0% 4% -1% -1% 2% 2% 0% 30% 38% 0% 0% -1% 2% 0% 39% 550 2Q12 R$ 1,491 138 1,353 (1,249) (1,093) (156) 243 (80) (69) (1,235) 248 (893) (5) 374 (524) (526) 2 448 790 (266) 5 20 % 100% 9% 91% -84% -73% -14% 16% -5% -5% -83% 17% -60% 0% 25% -35% -35% 0% 30% 53% -18% 0% 1% 37% 2Q13 vs 1Q13 2Q13 vs 2Q12 (%) (%) 15% -11% 18% 12% 13% 9% 29% 29% 10% -643% -91% 0% 8% 17% 0% -1% 15% 12% -9% 14% 7% 6% 16% 37% 14% 6% -6% -95% 10% -81% 4% 13% 13% 0% 4% -18% 10% 18%
Income Statement - Consolidated (R$ million) 6M13 R$ Net Revenue Domestic Sales Foreign Sales Cost of sales Cost related to production Freight Operating Profit Selling and marketing General and administrative Financial Result Other operating (expenses) income LAIR Current Income taxes expenses Deffered Income taxes expenses Net Income (Loss) Net Income (Loss) attributable to controlling equity interest Net Income (Loss) attributable to non-controlling equity interest Depreciation, amortization and depletion EBITDA Equity Fair Value of Biological Assets Property, Plant and Equipment disposal Accruals for losses on ICMS credits Tax Incentive EBITDA adjusted 3,119 267 2,851 (2,530) (2,184) (346) 589 (162) (138) (1,228) 10 (930) (12) 373 (570) (574) 4 898 1,196 (36) 31 45 (25) 1,211 AV% 100% 9% 91% -81% -70% -11% 19% -5% -4% -39% 0% -30% 0% 12% -18% -18% 0% 29% 38% 0% -1% 1% 1% -1% 39% (266) 8 38 927 R$ 2,765 259 2,506 (2,478) (2,162) (316) 287 (150) (130) (1,043) 235 (803) (8) 277 (534) (537) 3 906 1,146 6M12 AV% 100% 9% 91% -90% -78% -11% 10% -5% -5% -38% 8% -29% 0% 10% -19% -19% 0% 33% 41% 0% -10% 0% 1% 34% 6M 13 vs 6M 12 (%) 13% 3% 14% 2% 1% 9% 105% 8% 6% 18% -96% 16% 42% 35% 7% 7% 55% -1% 4% -86% 268% 17% 31%
20
Earnings 2Q13
Appendix III Balance Sheet
BALANCE SHEET (R$ million) ASSETS CURRENT Cash and cash equivalents Securities Derivative instruments Trade accounts receivable, net Inventories Recoverable taxes Assets avaiable for sale Others NON CURRENT Derivative instruments Deferred income taxes Recoverable taxes Fostered advance Others Investments Property, plant & equipment , net Biological assets Intangible assets Jun/13 4,910 618 1,473 27 480 1,362 207 590 154 3,030 77 1,195 712 706 340 41 10,850 3,354 4,675 Mar/13 5,418 859 1,732 22 583 1,296 200 590 136 2,587 31 827 680 719 330 41 11,007 3,307 4,697 Dez/12 6,246 944 2,352 18 755 1,183 209 590 195 2,640 26 880 658 740 336 41 11,175 3,326 4,717 LIABILITIES CURRENT Short-term debt Derivative Instruments Trade Accounts Payable Payroll and related charges Tax Liability Dividends and Interest attributable to capital payable Liabilities related to the assets held for sale Others NON CURRENT Long-term debt Accrued liabilities for legal proceedings Deferred income taxes , net Tax Liability Derivative instruments Others SHAREHOLDERS' EQUITY - Controlling interest Issued Share Capital Capital Reserve Statutory Reserve Equity valuation adjustment Treasury stock Non controlling interest TOTAL SHAREHOLDERS' EQUITY TOTAL ASSETS 26,860 27,057 28,145 TOTAL LIABILITIES Jun/13 2,175 794 93 538 108 44 2 470 125 10,081 9,142 84 174 79 419 185 14,560 9,729 3 3,242 1,597 (10) 44 14,604 26,860 Mar/13 1,987 819 32 412 86 38 2 470 129 9,876 9,079 110 200 79 230 178 15,155 9,729 3 3,837 1,597 (10) 39 15,194 27,057 Dez/12 2,475 1,138 54 436 129 41 2 470 205 10,499 9,630 105 228 78 264 195 15,134 9,729 3 3,816 1,597 (10) 37 15,171 28,145
21
Earnings 2Q13
Appendix IV Cash Flow
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOW (R$ million) 1Q13 INCOME (LOSS) BEFORE TAXES ON INCOME Adjusted by (+) Depreciation, depletion and amortization (+) Unrealized foreign exchange (gains) losses, net (+) Change in fair value of derivative financial instruments (+) Fair value of biological assets (+) (Gain)/loss on disposal of property, plant and equipment (+) Interest and gain and losses in marketable securities (+) Interest expense (+) Financial charges of Eurobons "Fibria 2020" partial repurchase transaction (+) Impairment of recoverable ICMS (+) Provisions and other (+) Tax Credits (+) Reversal of provision for contingencies Decrease (increase) in assets Trade accounts receivable Inventories Recoverable taxes Other assets/advances to suppliers Increase (decrease) in liabilities Trade payable Taxes payable Payroll, profit sharing and related charges Other payable Cash provided by operating activities Interest received Interest paid Income taxes paid NET CASH PROVIDED BY OPERATING ACTIVITIES Cash flows from investing activities Acquisition of property, plant and equipment and forest Advance for wood acquisition from forestry partnership program Marketable securities, net Proceeds from sale of property, plant and equipment Derivative transactions settled Advance received related to assets held for sale Installments paid for acquisition of Ensyn Others NET CASH USED IN INVESTING ACTIVITIES Cash flows from financing activities Borrowings Repayments - principal amount Premium paid in the Eurobonds "Fibria 2020" repurchase transaction Other NET CASH USED IN FINANCING ACTIVITIES Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 962 (1,590) (146) 7 (767) (1) (241) 859 618 19 (808) (42) (3) (835) (6) (85) 944 859 13 (122) 1,344 (3) 1,232 71 838 622 1,460 981 (2,398) (188) 4 (1,601) (8) (326) 944 618 150 (365) 1,344 1 1,129 60 1,078 382 1,460 (0) (57) (329) (21) 279 17 (2) (241) (8) 580 22 (12) 0 341 (254) (24) (687) 3 (44) 200 3 (802) (570) (29) 859 39 (15) 0 284 (475) (50) (563) 7 (36) 200 0 (917) 28 (217) (12) 583 56 (136) (4) 415 39 (214) (5) 336 85 (353) (16) 998 76 (326) (7) 806 113 18 22 (19) (20) (3) (43) (26) 70 4 14 (21) 94 15 (21) (45) 45 (18) (26) (17) 150 (57) (48) (28) 163 (80) (31) (20) (44) (28) (15) (13) 313 (138) (79) (48) 265 (61) (55) 5 466 596 200 (36) 39 (21) 140 224 23 8 (10) (14) 432 (87) (51) (8) (27) 154 63 23 8 448 865 218 (266) 5 (43) 182 20 13 898 509 149 (36) 31 (48) 295 287 45 16 (10) (14) 906 625 112 (266) 8 (85) 351 38 38 (983) 4Q12 52 1Q12 (893) 6M13 (930) 6M12 (803)
22
Earnings 2Q13
Appendix V - Breakdown of EBITDA and adjusted EBITDA (CVM Instruction 527/2012)
Adjusted EBITDA (R$ million) Income (loss) of the period (+/-) Financial results, net (+) Taxes on income (+) Depreciation, amortization and depletion EBITDA (-) Fair Value of Biological Assets (+/-) Non-recurring sale of property, plant and equipment (+) Impairment of recoverable ICMS (-) Tax credits/reversal of provision for contingencies EBITDA Ajustado
2Q13 (593) 1,162 (389) 466 646 (36) 39 23 (25) 647
1Q13 24 66 28 432 550 (8) 23 565
2Q12 (524) 1,235 (369) 448 790 (266) 5 20 550
EBITDA is not a Brazilian or an international measure. It represents net income (loss) of the period before net finance income (expense), income taxes and depreciation, amortization and depletion. We present our Adjusted EBITDA according to CVM Instruction n 527 of October 4, 2012, adjusted by the impairment of recoverable ICMS, non-recurring sale of property, plant and equipment, fair value of biological assets and tax credits (reversal of provision for contingencies), in order to provide a better information about our ability to pay debt, carry out investments and meet our working capital needs. Both measures should not be considered as substitutes for net income before financial results, profit-sharing and income taxes or as better liquidity measures than the operational cash flow for the periods above.
23
Earnings 2Q13
Appendix VI Economic and Operating Data
Exchange Rate (R$/US$) Closing Average 2Q13 2.2156 2.0666 1Q13 2.0138 1.9966 4Q12 2.0435 2.0569 3Q12 2.0306 2.0288 2Q12 2.0213 1.9618 1Q12 1.8221 1.7672 2Q13 vs 1Q13 10.0% 3.5% 2Q13 vs 2Q12 9.6% 5.3% 1Q13 vs 4Q12 -1.5% -2.9% 3Q12 vs 2Q12 0.5% 3.4% 2Q12 vs 1Q12 10.9% 11.0%
Pulp sales distribution, by region Europe North America Asia Brazil / Others
2Q13 43% 28% 21% 8%
1Q13 42% 22% 26% 10%
2Q12 43% 26% 20% 11%
2Q13 vs 1Q13 2 p.p. 5 p.p. -5 p.p. -2 p.p.
2Q13 vs 2Q12 0 p.p. 1 p.p. 1 p.p. -3 p.p.
Last 12 months 40% 27% 24% 9%
Pulp list price per region (US$/t) North America Europe Asia
Jun-13 900 850 750
May-13 900 850 750
Apr-13 870 820 720
Mar-13 870 820 720
Feb-13 850 800 700
Jan-13 850 800 700
Dec-12 830 780 670
Nov-12 830 780 670
Oct-12 830 780 670
Sep-12 860 800 700
Aug-12 860 800 700
Jul-12 860 800 700
Financial Indicators Net Debt / Adjusted EBITDA (LTM*) Total Debt / Total Capital (gross debt + net equity) Cash + EBITDA (LTM*) / Short-term Debt
*LTM: Last tw elve months
Jun/13 3.3 0.4 5.3
Mar/13 3.1 0.4 5.9
Jun/12 4.7 0.4 4.2
Reconciliation - net income to cash earnings (R$ million) Net Income (Loss) before income taxes (+) Depreciation, depletion and amortization (+) Foreign exchange and unrealized (gains) losses, net (+) Fair value of financial instruments (+) Fair value of biological assets (+) Loss (gain) on disposal of Property, Plant and Equipment (+) Interest on Securities, net (+) Interest on loan accrual (+) Financial charges on 2020 senior notes tender offer (+) Accruals for losses on ICMS credits (+) Provisions and other (+) Tax Credits (+) Reversal of provision for contingencies Cash earnings (R$ million) Outstanding shares (million) Cash earnings per share (R$)
2Q13 (983) 466 596 200 (36) 39 (21) 140 224 23 8 (10) (14) 632 554 1.1
1Q13 52 432 (87) (51) (8) (27) 154 63 23 8 560 554 1.0
2Q13 (893) 448 865 218 (266) 5 (43) 182 20 13 550 554 1.0
24

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Fibria Celulose S.A.

Review Report of Independent Registered Public Accountant firm

PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5

Carlos Eduardo Guaran Mendona Contador CRC 1SP196994/O-2

Fibria Celulose S.A.

June 30, 2013

December 31, 2012

617,553 1,472,529 26,811 480,342 1,362,467 206,674 589,849 153,686 4,909,911

943,856 2,351,986 18,344 754,768 1,183,142 209,462 589,849 194,526 6,245,933

381,915 1,677,926 31,638 945,362 1,178,707 327,787 644,166 108,062 5,295,563

Fibria Celulose S.A.

June 30, 2013

December 31, 2012

794,471 538,271 107,837 44,483 92,641 470,000 1,874 125,226 2,174,803

1,138,005 435,939 128,782 41,368 54,252 470,000 2,076 204,833 2,475,255

1,092,108 373,692 134,024 53,463 163,534 1,520 142,367 1,960,708

9,141,751 418,587 79,137 173,736 83,500 184,644 10,081,355

9,629,950 263,646 77,665 227,923 104,813 194,521 10,498,518 12,973,773

10,232,309 125,437 76,510 739,878 101,594 163,096 11,438,824 13,399,532

9,729,006 2,688 (10,346 ) 3,815,584 1,596,666

8,379,397 2,688 (10,346) 4,520,290 1,611,837

15,133,598 37,209 15,170,807 28,144,580

14,503,866 28,822 14,532,688 27,932,220

Fibria Celulose S.A.

June 30, 2013

June 30, 2012

3,118,592 (2,529,851) 588,741

2,764,774 (2,478,233) 286,541

(162,086) (138,341) 9,623 (290,804)

297,937 59,636 (629,942) (148,844) (509,226) (1,228,376)

(12,046) 372,924 (569,561)

(8,464) 277,124 (534,189)

(573,878) 4,317 (569,561) (1.037)

(536,969) 2,780 (534,189) (1.082)

Fibria Celulose S.A.

June 30, 2013

June 30, 2012

Attributable to: Shareholders of the Company Non-controlling interests

Fibria Celulose S.A.

Capital Transaction costs of the capital increase

Other reserves Other comprehensive income 1,618,824

Statutory reserves Retained earnings (accumulated losses ) Noncontrolling interest 28,822

Capital reserve 2,688

Treasury shares (10,346 )

(6,987 ) 8,379,397 2,688 (10,346 ) 1,611,837 303,800 4,216,490

(6,987 ) 14,503,866 28,222

(536,969 ) 1,361,380 (11,771 ) 15,316,506 15,148,769

(534,189 ) 1,364,716 (11,771 ) 15,351,444 15,185,978

(15,171 ) 9,740,777 (11,771 ) 2,688 (10,346 ) 1,596,666 303,800 3,511,784

(15,171 ) 15,133,598 37,209

(569,561 ) 119 2,405

Fibria Celulose S.A.

June 30, 2012 (802,849)

312,585 (137,875 ) (79,385 ) (47,585)

265,381 (60,651) (55,068) 4,826

94,033 14,722 (20,946 ) (44,691) 1,282,823 84,679 (352,661 ) (15,987) 998,854

44,628 (17,709) (26,311) (17,221) 1,063,435 76,345 (326,397) (7,448) 805,935

(569,634) (28,735) 858,694 38,299 (14,741) 4 283,887

(474,971) (50,380) (563,067) 7,158 200,000 (36,422) 444 (917,238)

Fibria Celulose S.A.

980,824 (2,398,040 ) (188,206 ) 3,995 (1,601,427) (7,617) (326,303) 943,856 617,553

149,519 (364,831) 1,343,546 737 1,128,971 60,342 1,078,010 381,915 1,459,925

Fibria Celulose S.A.

June 30, 2012