Fibria's 1q14 Net revenues were R$ billion. Total Forest Base was 962 hectares, excluding the sale of forest assets in Southern Bahia State and Losango. Net Debt was R$ billion 7. Net Debt / EBITDA (in dollars) (2) x 2.
Fibria's 1q14 Net revenues were R$ billion. Total Forest Base was 962 hectares, excluding the sale of forest assets in Southern Bahia State and Losango. Net Debt was R$ billion 7. Net Debt / EBITDA (in dollars) (2) x 2.
Fibria's 1q14 Net revenues were R$ billion. Total Forest Base was 962 hectares, excluding the sale of forest assets in Southern Bahia State and Losango. Net Debt was R$ billion 7. Net Debt / EBITDA (in dollars) (2) x 2.
May 2014 2 The information contained in this presentation may include statements which constitute forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to business, financial, trend, strategy and other forecasts, and are based on assumptions, data or methods that, although considered reasonable by the company at the time, may turn out to be incorrect or imprecise, or may not be possible to realize. The company gives no assurance that expectations disclosed in this presentation will be confirmed. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements, due to a variety of factors, including, but not limited to, the risks of international business and other risks referred to in the companys filings with the CVM and SEC. The company does not undertake, and specifically disclaims any obligation to update any forward-looking statements, which speak only for the date on which they are made. Disclaimer 3 Company Overview 1 Pulp and Paper Market 2 Financial and Operational Highlights 3 Agenda Final Remarks 4 4 Company Overview 5 A Winning Player Port Terminal Pulp Unit Trs Lagoas Santos Aracruz Portocel Caravelas Belmonte Veracel Jacare Superior Asset Combination Main Figures 1Q14 LTM Pulp capacity million tons 5.300 Net revenues R$ billion 7.1 Total Forest Base (1) thousand hectares 962 Planted area (1) thousand hectares 558 Net Debt R$ billion 7.0 Net Debt/EBITDA (in Dollars) (2) X 2.4 Net Debt/EBITDA (in Reais) X 2.4 Source: Fibria (1) Including 50% of Veracel, excluding forest partnership areas and excluding the forest base linked to the sale of forest assets in Southern Bahia State and Losango. (2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars. 6 Fibrias Units Industrial Capacity * Veracel is a joint venture between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year 7 Worldwide presence Strong global customer base Long-term relationships Focus on customers with stable business Customized pulp products and services Sound forestry and industrial R&D Focus on less volatile end-use markets such as tissue Efficient logistics set up Low dependence on volatile markets such as China Low credit risk 100% certified pulp (FSC and PEFC/Cerflor) Sales Mix by End Use - Fibria Sales Mix by Region - Fibria Europe 39% N. A. 28% Asia 25% Others 8% LTM 1Q14 Tissue 53% P&W 29% Specialty 18% LTM 1Q14 Highlights 30% 20% 29% 29% 24% 18% 26% 26% 30% 22% 28% 31% 30% 19% 37% 46% 46% 41% 35% 44% 43% 41% 36% 42% 43% 35% 36% 46% 22% 25% 14% 20% 31% 28% 20% 23% 25% 26% 21% 26% 26% 26% 11% 9% 11% 10% 10% 10% 11% 10% 9% 10% 8% 8% 8% 9% 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 North America Europe Asia Others Fibrias Commercial Strategy 8 (1) Controlling group (2) Free Float 40.14% + Treasury 0.06% Votorantim Industrial S.A. (1) 29.42% BNDES Participaes (1) 30.38% Free Float (2) 40.20% Only 1 class of shares 100% voting rights 100% tag along rights (Brazilian corporate law establishes 80%) Board of Directors with minimum20% independent members Financial Statements in International Standards IFRS Adoption of Arbitration Chamber SEC Registered with ADRs Indebtedness and liquidity Market risk management Risk management Corporate governance Information disclosure Stock trading Fiscal Council Board of Directors 20% independent members Role of CEO and chairman is split Innovation Committee Statutory Audit Committee Finance Committee Sustainability Committee Personnel and Remuneration Committee General Meeting Listed on Novo Mercado, highest CG level at BM&FBovespa: Policies approved by the Board of Directors: Shareholder Structure and Corporate Governance 9 Fibria was elected as 1st place in the pulp & paper sector in the corporate governance and future's vision categories Fibria is one of the 5 Brazilian companies nominees to the Best Corporate Governance Award from London. Company of the year, among all industries, according to Valor Econmico. Valor 1000 XVII ANEFAC-FIPECAFI - SERASA EXPERIAN Prize Fibria is among the most transparent public companies in Brazil, recognized for the quality of its 2012 financial statements. Fibria was ranked for the forth consecutive year (2010, 2011, 2012 and 2013). In 2013 Fibria was ranked in four categories: CEO, CFO, IR Team and IR Professional 2013 Institutional Investor LatamRanking - P&P Sector Fibria was selected as one of the 10 best companies in transparency. The only one in the pulp & paper sector. CDP Brasil 100 Climate Change 2013 Report poca Negcios 360 International Recognition by Corporate Governance Report Fibria was elected as 2 nd place. The prize highlights the business profitability, share profitability, liquidity, corporate governance and sustainability. The Best Companies to the Shareholders Prize of Capital Aberto Magazine Fibria is the only Latin America company selected by RobecoSAM (responsible for DJSI) as one of the 10 worldwide leaders in SRI magazines The 10 Game Changers Changing the industry through sustainability. RobecoSAM - Sustainability Investing Magazine Selected to Dow Jones World and Emerging Markets Sustainability Indices for 2013/14 as the industry leader of Forestry Resources and Paper sector. DJSI World and DJSI Emerging Markets Acknowledgments: Governance, Transparency, Profitability & Sustainability 10 Pulp and Paper Market 11 Today, according to public information, there will be a 11% increase of the pulp market capacity between 2014 and 2016 SOFTWOOD (1) 25.5 MT HARDWOOD (1) 31.1 MT MARKET PULP (1) 56.6 MT + = 2014-2016 (3) : New capacities: 6.0 mt Announced Closures: (0.13) mt Net: 5.9 mt 2014-2016 (2) : New capacities: 0.7 mt Announced Closures: (0.35) mt Net: 0.35 mt 2014-2016: New capacities: 6.7 mt Announced Closures: (0.5) mt Net: 6.2 mt (1) Source: PPPC Special Research Note May 2014 does not include Sulphite and UKP (2) Projects included: Paper Excellence (70kt); UPM Kymi (170kt); Klabin (200kt); Sodra Vr (275kt)| Closures: Birla AV Terrace Bay (350kt) (3) Projects included: Maranho (1.5mt); Montes del Plata (1.3 mt); Oji Nantong (700kt); Eldorado (200kt); CMPC Guaba II (1.3 mt); Klabin Ortigueira (1.0mt) | Closures: April Rizhao (130kt) 12 844kt 196kt -37kt 674kt Total North America Western Europe China +6% 2013 vs. 2012 +12% +23% -1% 400 500 600 700 800 900 1000 1100 0 50 100 150 200 250 j u l / 0 8 o u t / 0 8 j a n / 0 9 a b r / 0 9 j u l / 0 9 o u t / 0 9 j a n / 1 0 a b r / 1 0 j u l / 1 0 o u t / 1 0 j a n / 1 1 a b r / 1 1 j u l / 1 1 o u t / 1 1 j a n / 1 2 a b r / 1 2 j u l / 1 2 o u t / 1 2 j a n / 1 3 a b r / 1 3 j u l / 1 3 o u t / 1 3 j a n / 1 4 a b r / 1 4 Spread Avg. Spread BHKP NBSK Global Pulp Market Demand Demand growth rate Hardwood (BHKP) vs. Softwood (BSKP) (000 ton) Hardwood demand will continue to increase at a faster pace than Softwood Source: PPPC Source: PPPC (1) Source: PPPC World 20 December/2013 Shipments of Eucalyptus Pulp (1) NBSK vs. BHKP - Prices (1) (1) Source: FOEX 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 Hardwood Softwood 2013 - 2018 CAGR: Hardwood: +2.8% Softwood: +0.7% 000 ton 1998 2008 2018 Growth 1998- 2008 Growth 2008- 2018 Hardwood 15.0 24.5 32.8 63% 34% Eucalyptus 6.0 14.2 23.2 137% 63% Softwood 17.6 21.6 24.8 23% 15% Market Pulp 32.6 46.1 57.1 13 Supply structural changes puts pressure on the industry MARKET PULP CAPACITY RANKING 2013 (000T) MAIN PROJECTS Project Country Capacity Timing Fiber Status Arauco / Stora Uruguay 1.3Mt 1Q2014 BEKP Confirmed CMPC Guaba II Brazil 1.3 Mt 2Q2015 BEKP Confirmed Klabin Paran Brazil 1.5 Mt 2Q2016 BEKP/ BSKP/Fluff Confirmed APP South Sumatra Indonesia 2.0 Mt 4Q2016 BHKP Confirmed Fibria Trs Lagoas II Brazil 1.75 Mt - BEKP Unconfirmed COST CURVE EVOLUTION U S D / A d t ,
2 0 1 3
c o s t
l e v e l Cumulative Capacity Million t/a Cost position of marginal producer Source: Hawkins Wright , Poyry and Fibria Analysis 0 2000 4000 6000 Canfor ENCE Eldorado Resolute Forest Domtar Mercer Ilim IP Weyerhaeuser Sodra Stora Enso Suzano Metsa Group Paper Excellence UPM-Kymmene Georgia Pacific CMPC Arauco APRIL Fibria Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical 14 Source: Hawkins Wright , Poyry and Fibria Analysis Gross capacity addition should not be counted as the only factor influencing pulp price volatility B H K P
p r i c e s
- c i f E u r o p e
( U S $ / t o n )
G r e e n f i e l d
c a p a c i t y
( 0 0 0
t o n )
0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8 2,0 0 100 200 300 400 500 600 700 800 900 1.000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Valdivia APP Hainan Veracel Nueva Aldea Santa F Mucuri Fray Bentos Kerinci PL3 Trs Lagoas Rizhao APP Guangxi Chenming Zhanjiang Eldorado Montes del Plata Maranho Guaba II 15 Capacity closures DO happen -910 -85 -1.260 -1.180 -540 -500 -105 -1.085 -130 -1400 -1200 -1000 -800 -600 -400 -200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014-2015 Source: PPPC and Fibria Closures of Hardwood Capacity Worldwide 000 ton 16 Technical Age and Scale in the Market Pulp Industry Further closures are expected due to lack of adequate investments in the industry Hardwood (BHKP) Market Pulp Softwood (BSKP) Market Pulp 0 500 1.000 1.500 2.000 2.500 3.000 0 5 10 15 20 25 30 PM Capacity, 1000 t/a Technical Age, years STRONG 2013/IQ Weighted average technical age 14.2 years Weighted average capacity 1184 000 t/a Aracruz Trs Lagoas Veracel J acare 0 500 1.000 1.500 2.000 2.500 3.000 0 5 10 15 20 25 30 PM Capacity, 1000 t/a Technical Age, years WEAK STRONG Weighted average technical age 21.2 years Weighted average capacity 503 000 t/a 2013/IQ North American Pulp Mills Other Pulp Mills Closures Grade Switch On & Off WEAK 17 and when other expenses are plugged, we see no one but Fibria is generating positive free cash flow in the industry Total Cash Cost of BHKP delivered to Europe (US$/t) 528 493 502 453 479 464 388 406 426 316 304 306 286 261 229 48 40 71 70 47 42 112 36 42 50 41 45 56 67 68 57 113 44 Cash Cost (US$/t) Delivery (US$/t) Source: Hawkins Wright (Outlook for Market Pulp, March2014) | Fibrias 1Q14 LTM considering a FX of R$/US$2.25. 519 SG&A Others CAPEX Interest Working Capital = +11 Capacity (k tons): 660 595 1,775 585 565 355 1,005 2,410 1,960 1,095 12,750 = 31,930 330 3,680 4,165 FOEX Net price 809 18 China: Paper capacities expansion continues to go on China corresponds to 2/3 of global tissue capacity expansion Ktons 2013 2014E 2015E Total P&W (woodfree) 385 150 576 1,111 Tissue 1,029 1,831 471 3,331 Cartonboard 2,128 1,650 180 3,958 Total 3,542 3,631 1,227 8,400 Source: Fibria and Independent Consultants 19 World Tissue Consumption, 1991-2013 (3) Per Capita Consumption of Tissue by World Region (3) China's Share of Market Pulp (2) 24 15 15 12 7 6 5 1 0 5 10 15 20 25 30 N. America West Europe Japan Oceania East Europe LatAm China Africa 9 11 13 16 26 17 21 20 23 7 9 10 12 22 16 20 19 21 10 10 12 14 21 17 22 23 23 0 2.000 4.000 6.000 8.000 10.000 12.000 2005 2006 2007 2008 2009 2010 2011 2012 2013 Eucaplyptus Hardwood Total 1.889 760 556 439 60 53 21 1.922 805 516 525 57 10 9 0 500 1.000 1.500 2.000 2.500 BHKP Total Latin America Others* Indonesia USA Canada Western Europe 1Q2013 1Q2014 Latin America is the leading exporter of BHKP to China, accounting to approximately 42% of China's total imports in 1Q2014. (Kg/capita/year) (million t) (000s t) (kg/person/year) Between 2005 and 2013, the Chinese market share of eucalyptus shipments increased by 14 p.p. (total market pulp: + p.p.) * includes Russia, China, Thailand and New Zealand 0 5 10 15 20 25 30 35 1991 1996 2001 2006 2009 2010 2011 2012 2013 N.America W.Europe E.Europe L.America Middle East Japan China Asia FE Oceania Africa LTM Growth Rate +4.2% Benefiting From Chinas Growth Chinas Hardwood Imports of BHKP by Country (1) (1) PPPC Pulp China (2) PPPC W20. Coverage for chemical market pulp is 80% of world capacity (3) RISI (In percentage) 20 Internal Consumption and Urbanization Chinas private consumption vs. exports (CNY trillion and annual % change) (1) Chinese Urbanization Driver of Long-Term Growth (UN Population Projections, Millions) (2) Sources: (1) the Economist. (2) RISI China Pulp Market Study. Shift from exports to private consumption; Positive effects on households income and rising standards of living. 21 Financial and Operational Highlights 22 The maturity of synergies captured since Fibrias creation improved its operating indicators +15% 4,600 5,054 5,184 5,299 5,271 5,272 2009* 2010* 2011 2012 2013 1Q14 LTM PRODUCTION VOLUME (000 t) BEST PRACTICES AND OPERATING STABILITY Historical Value Inflation Effect** -21% CASH COST (R$/ton) Historical Value Inflation Effect** -17% SG&A (R$ million) STRUCTURE AND PROCESS SIMPLIFICATION 1,522 2,526 1,964 2,253 2,796 2,910 2009* 2010* 2011 2012 2013 1Q14 LTM 29% 40% 34% 36% 40% 41% EBITDA (R$ million) - EBITDA MARGIN (%) * Excludes Conpacel | ** IPCA index considered to calculate the inflation effect 432 448 471 473 505 515 656 624 596 549 545 2009* 2010* 2011 2012 2013 1Q14 LTM 593 593 605 584 648 659 900 826 766 678 699 2009* 2010* 2011 2012 2013 1Q14 LTM 23 Net Debt (Million) 1,475 1,484 2,959 1,288 777 773 1,386 1,230 943 650 1,367 26 5 1,356 Liquidity 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Pre-payment BNDES NCE ACC/ACE/Other Voto IV Bond Pro Forma (cash) (revolving) 3.1 2.8 2.4 3.1 2.6 2.4 9,898 9,773 8,445 4,915 4,172 3,732 Mar/13 Dec/13 Mar/14 R$ US$ 7,516 7,849 6,969 3,732 3,351 3,080 Mar/13 Dec/13 Mar/14 R$ US$ Net Debt/EBITDA (US$) Net Debt/EBITDA (R$) - 24% Debt Amortization Schedule (R$ million) - 11% Indebtedness Gross Debt (Million) 24 Fibria delivered the most significant leverage reduction in the LTM Net Debt/EBITDA (x) (1) 7.2 6.3 5.6 4.7 3.9 3.6 2,9 3.2 4.2 4.8 5.2 4.7 4.5 3.4 3.1 3.3 3 2.8 2.4 2.5 2.0 3.3 3.0 4.2 4.8 4.8 5.7 4.7 5.0 5.0 5.1 5.1 5.2 4.8 2.2 2.2 2.1 2.0 2.4 2.5 2.3 2.5 2.3 2.4 2.2 2.4 2.4 2.6 1.7 1.1 1.9 1.8 1.9 2.0 2.3 2.5 2.8 2.9 3.3 3.4 2.9 3.0 2.8 2.9 1.7 1.4 1.6 1.8 2.7 2.2 2.7 3.4 4.1 4.6 4.3 3.7 3.1 3.8 Sep/09 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Fibria Arauco CMPC Klabin Suzano S&P BB+/Positive BBB-/Stable BBB-/Stable BBB-/Stable BB/Negative Moodys Ba1/Positive Baa3/Negative Baa3/Negative - Ba2/Stable Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Stable BB-/Positive (1) Fibrias historical data in BRL. Ratings 25 Liquidity Events: delivered as promised 1,361 5,715 1,045 850 836 1,403 1,268 1,851 1,625 EQUITY OFFERING FOREST SALE 2012 (1) FCF 2012 LAND DEAL FCF 2013 TOTAL 4.8 5.2 4.7 4.5 3.4 3.1 3.3 3.0 2.8 2.4 Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Net Debt/EBITDA (x) R$ (1) Losango and forestry assets and land in the south of Bahia State 2012 Bond prepayment 2013 Bond prepayment Available Sources (R$ Million) Uses (R$ Million) 2014 Bond prepayment REFIS 26 Interest expense and cost on foreign currency debt Fonte: Fibria e Bloomberg 143 126 133 137 123 125 123 122 126 120 134 120 117 109 94 93 87 85 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 6.3 6.8 6.0 6.0 5.9 6.3 5.8 5.5 5.5 5.5 5.4 5.2 5.2 5.2 4.7 4.5 4.6 4.1 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 27 Fibria 2024 New Bond Issuance Principal: US$ 600 millon Issuance Date: May/2014 Coupon: 5.25% a.a. Bookbuilding: 11.5x Spread over T10Y: 275.0 bps Issuance US$ 600 million Highlights - SEC registered; - IG document; - Increased debt profiles; - Fibria 2021 early redemption of US$430 million (78% of the total). Remaining outstanding : US$118 million. Fibria 2024 - For liability management purposes only; - Savings of US$ 5.5 MM in interest per year. 28 560 214 (258) (99) 25 (6) (8) Adjusted EBITDA Capex Net Interest Working Capital IR/CS Other Free Cash Flow Fibria delivers one of the highest EBITDA/t and FCF/t of the industry (1) Does not include: the capital gain on assets sales, Bonds repurchases and the tax payment (REFIS) over profit earnings abroad 2,910 1,111 (1,340) (516) 132 (30) (45) Adjusted EBITDA Capex Net Interest Working Capital IR/CS Other Free Cash Flow Free cash flow generation (1) - 1Q14 LTM (R$ Million) Free Cash Flow per ton - 1Q14 LTM (R$/ton) 29 2.00 1.76 1.67 1.95 2.16 2.25 562 844 810 751 791 787 FX and Pulp Price explain 80% of Fibrias EBITDA Margin Average Price FOEX (US$/t) Exchange Rate Average (R$/US$) EBITDA Margin EBITDA (R$ million) 29% 40% 34% 36% 40% 41% 1,522 2,526 1,964 2,253 2,796 2,910 2009 (1) 2010 (1) 2011 (1) 2012 2013 1Q14 LTM (1) Excludes Conpacel 30 Maintenance CAPEX (R$ Million) 1,416 1,078 1,287 1,520 2011 2012 2013 Land Deal: Rural Partnership Non recurring wood purchase Inflation FX Rate Modernization Others 2014E Approx. 18% increase Cash Production Cost saw an increase of 17% over the past 5 years Cash Production Cost (1) (R$/ton) 432 448 471 473 505 2009 (2) 2010 (2) 2011 2012 2013 CAGR: + 4% 2014 Cash Production Cost: Wood costs will represent the main impact Non recurring increase mainly due to third party wood Operating excellence actions focused on keeping cash cost below inflation In 2015 the wood impact will be structurally eliminated (1) Excludes Conpacel Target to have the cash cost increase below inflation 31 32 Final Remarks 33 PULP - Growth with discipline - Best portfolio of projects BIO-ENERGY - Complementary to pulp - Ensyn INDUSTRY CONSOLIDATION ? OTHER OPPORTUNITIES - Portocel - Land and forest Potential Growth Prospects Fibria is seeking value creation for its shareholders with capital discipline 34 Key Highlights Sound credit profile, with decreasing leverage ratios Market leader with a highly profitable operation and cash cost below industry average Highly experienced and qualified management team Highly recognized and awarded by industry specialists 35 Back up 36 Hedge Hedging Strategy Debt Hedge: - Swap operations (currency and rate) - Maturity aligned with original debt - No margin call Operating Hedge: - Net FX exposure protection in US$ in up to 18 months - Current strategy: Zero Cost Collar - No leverage - No margin call - 03/31/2014 data: - Notional: US$ 932 million - 41% of protected net exposure - Maturity: up to 12 months All Fibria operations are registered at CETIP Governance Hedging Policy approved by the Board of Directors and available at the Investor Relations website. Periodical follow up of the hedge portfolio by the Finance Committee Maximum % of exposed operational flow is defined according to the FX risk management policy. Governance, Risk and Compliance (GRC) Team: - Report to CEO - Responsible for monitoring policies compliance - Independent from Treasury ZeroCostCollar x NDF Payoff 37 Fibrias tax structure Tax benefits (R$) Fiscal - annual adjustment Benefit Amount Maturity Goodwill (Aracruz acquisition) Annual tax deduction: ~R$89 million (tax) Remaining Balance Dec./13: R$1.29 billion (base) 2018 Forestry Capex in Mato Grosso do Sul state 2014s tax deduction related to depletion: R$ 5,5 million (tax) Undefined Tax loss carry forward and tax credits Benefit Amount Tax loss carryforward Balance up to Mar./14: R$631 million (base) Accumulated tax credits Balance Mar./2014: -PIS/COFINS: R$533 million - withholding tax (IR and CSLL): R$231 million Actual tax payment (cash basis) 2009 2010 2011 2012 2013 R$7 million R$16 million R$4 million R$15 million R$31 million 38 Due to productivity gains in its forests, Fibria had the opportunity to explore this new ownership model MAI* Pulp: (adt/ha/year) 10.6 10.9 12.1 15.0 15.0 15.0 15.0 15.0 2010 2015 2020 2025 2030 2035 2040 2045 FIBRIAS GAINS IN IMACEL DUE TO INVESTMENTS IN BIOTECHNOLOGY (TONS OF PULP/HA/YEAR) 2012 field trials = 11.9 Conservative assumption *MAI: Mean annual increment Actions: Genetic improvement Excellence in forestry management Superior industrial efficiency 39 Leadership position (1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note - May 2014 Recycled Fiber 234 million t 49% 51% 60% 18% 82% 58% 42% 40% 35% 65% 29% 71% Fiber Consumption 403 million t Pulp 169 million t Chemical 139 million t Mechanical 31 million t Integrated Mills 84 million t Market Pulp 56 million t Hardwood 29 million t Other Eucalyptus Pulp producers: 13 million t Softwood/Other 27 million t Acacia/Other 10 million t Eucalyptus 19 million t Industry Outlook (1) 40 Global Paper Consumption 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Developed Markets Emerging Markets 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Developed Markets Emerging Markets CAGR 1996 2006 Developed Markets: + 1.7% Emerging Markets : + 6.0% 85,291 117,611 15,548 37,474 P&W Consumption (000 tons) (1) Tissue Consumption (000 tons) (1) 114,507 CAGR 2007 2016 Developed Markets: - 4.0% Emerging Markets : + 4.1% CAGR 1996 2006 Developed Markets: + 2.4% Emerging Markets : + 6.9% CAGR 2007 2016 Developed Markets: + 1.4% Emerging Markets : + 6.7% 26,877 Source: RISI 41 Cash Production Cost 1Q14 507 466 549 1Q13 4Q13 1Q14 Cash Production Cost (R$/t) 463 466 524 1Q13 4Q13 1Q14 Cash Production Cost ex-downtimes (R$/t) 1Q14 vs. 1Q13: - Higher transportation costs - Exchange rate - Higher fixed costs - Higher input consumption - Third party wood (1Q13: 8% I 1Q14: 11%) Management initiatives seeking to maintain the cash cost increase belowthe inflation.