Morgan Stanley 14th Annual Latam Conference

September, 2011

Disclaimer

The information contained in this presentation may include statements which constitute forwardlooking 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 forwardlooking 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 forwardlooking statements, which speak only for the date on which they are made.

The Company

VCP and Aracruz Merged to Create Fibria

Shareholder Structure

Votorantim Industrial S.A. 29.34%

BNDESPar 30.42(1)

Free Float 40.24%(2)

NYSE 40% Bovespa 60%

Average Daily Trading Volume (LTM): US$ 45 million

(1) (2)

Position as of August 31, 2011. BNDESPar has 21% linked to a Shareholders Agreement with Votorantim Industrial S.A. during the first 3 years and 10.9% during the following 2 years. Free Float 40.17% + Treasury 0.07%

Improved Corporate Governance

Improved Corporate Governance

Board and Committees

Listed on Novo Mercado, highest level of Corporate Governance at BM&F Bovespa

Only 1 class of shares 100% vo ng rights 100% tag along rights (Brazilian corporate law establishes 80%) Board of Directors with minimum 20% independent members Financial Statements in International Standards IFRS Adoption of Arbitration Chamber

Shareholders Meeting

Fiscal Council

Board of Directors

9 Members: 20% Independent Chairman CEO

Listed in the most important sustainability indexes

Board Advisory Committees(1)

Audit and Risks Personnel and Remuneration Finance Sustainability

Policies approved by the Board of Directors

Liability and liquidity management Market risks Corporate governance Information disclosure Stock trading

Executive Officers

(1) Members performance assessed by independent consulting firm

A Winning Player
Superior Asset Combination Main Figures(1)

Pulp capacity Paper capacity(3) Net revenues Total area

Belmonte Veracel Caravelas Portocel Aracruz

million tons million tons R$ billion thousand ha thousand ha R$ billion X

5.25 0.16 6.2 1,062(2) 599(2) 7.9 3.2

Planted area Net Debt Net Debt/EBITDA

Trs Lagoas Piracicaba Jacare Santos

Port Terminal

Pulp Unit

Paper Unit

Source: Fibria (1) Last Twelve Months as of 2Q11. (2) As of June 30, 2011, including 50% of Veracel and excluding forest partnership areas (124 thousand ha). (3) Fibria has signed a term sheet granting exclusivity to OJI Paper Co., to negotiate the possible sale of the Piracicaba Paper Unit.

Modern Plants Lead to a Competitive Position in the Cost Curve

Trs Lagoas Mato Grosso do Sul 1.3 million t/year Jacare So Paulo 1.1 million t/year

Aracruz Esprito Santo 2.3 million t/year

Veracel Bahia 1.1 million t/year

Fibrias Strategy

Clear Leadership Position

Industry Outlook (1)

Market Pulp Capacity Ranking 2010(2) (000t)

Fibria APRIL Arauco

Paper & Board 392 million t

5,250

57% Recycled Fiber 224 million t

43% Pulp 167 million t

APP Georgia Pacific CMPC Sodra Stora Enso Weyerhaeuser Suzano

34% Market Pulp 46 million t 46% 54% Hardwood 24 million t

20% Mechanical 33 million t

80% Chemical 134 million t

66% Integrated Mills 85 million t

Botnia/M-real UPM-Kymmene Domtar Ilim Mercer IP ENCE

64% Eucalyptus 16 million t

Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical

Softwood/Other 22 million t

36% Acacia/Other 8 million t

West Fraser Canfor Cenibra

31%

69%
Other Eucalyptus Pulp producers: 11 million t
(1) (2)

1000

2000

3000

4000

5000

6000

RISI and PPPC: considers 2010 demand Hawkins Wright January 2011

Relevant Market Share and Competitive Position in the Cost Curve

Fibrias Market Share (1)

Average Cash Cost of BHKP(2) (US$/t)

Mill Cash Cost Delivery Cost

11%

22%

586 104

549 54

540 55

519 95

509 47

497 52

454 37 371 65 352 73 329 53 276 322 55 267

482

495

485

424

462

445

417 306 279

Total Market Pulp: 48.5 million t

Total Hardwood Market Pulp: 25 million t

31%

Hardwood Cash Cost (US$/t) vs Capacity ('000 t)

800 700 Cash cost (US$/t) 600 500 400 300 200 100 0 (1) (2) PPPC Global 100: Market Share estimated considering 2010 demand Source: Hawkins Wright as of April 2011 and Fibria 1Q11 5000 10000 15000 Capacity ('000s t) 20000 25000 30000 Bleached hardwood kraft

10 million t

Total Eucalyptus Market Pulp: 17 million t

10

Exchange Rates and Inflation Affect the Cost Structure

Exchange Rate Currencies Evolution versus Dollar (Index: Jan03 = 100)
230 210 190 170 150 130 110 90 70 50 Rupia: 4% Canadian Dollar: 59% Chilean Peso: 52%

Real:116%

Inflation
Wood: cost of land and minimum wage growth above inflation Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices Chemicals / energy / water: global demand for commodities add pressure on main raw materials Labor: cost in Brazil in dollar terms is higher than in some developed countries 11

Global Presence
Fibrias Commercial Strategy
Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers focused on eucalyptus pulp to the tissue market The top 10 customers represent, on average, 70% of sales Over 20 years of relationship with many of the main clients Global contracts
P&W 23% Tissue 58% Speciali ties 19%

End-Use 2Q11

46% 29%
N.America Europe

Nyon Miami

Csomd

14%
Asia

Hong Kong

11%
L.America

So Paulo

Source: Fibria 2Q11

Fibria Sales Distribution

Fibria Offices

12

Focus on Premium End-Uses

Fibria's Pulp Destination

Market Pulp Destination

2010-2025 Demand Growth (CAGR)

Source: Fibria 2Q11 Earnings Results, PPPC, RISI and Fibria

13

Innovation and Competitiveness

14

Enhanced Forestry Techniques

Current Elite Clone 2 years old

New Elite Clone 2 years old

15

Forest Competitiveness
Fibria : Forest Competitiveness
45 14

Genetic and Technological Development at Fibria

30 - 40 years

11 10

25

25

25

15

15 - 25 years

7 - 15 years 6 years 7-8 years

10 - 12 years

12 - 15 years

8 5 6

Brazil (eucalyptus)

Indonesia

S.Africa

Chile

Portugal / Spain

USA / Canada

Finland / Sweden

70's

80's

90's

00's

Next decade (expected)

Harvesting Cycle (avg. years)

Yield (m3/ha/year)

Air Dry Ton / ha / year

Source: ABRAF, STCP, Poyry and Fibria. Note: Pulp trees differ depending on the country: Indonesia acacia, S.Africa tropical and temperate eucalyptus, Chile temperate eucalyptus, Portugal/Spain temperate eucalyptus, USA/Canada aspen, Finland/Sweden betula.

16

State of the Art Facilities

Average mill capacity (000 tons)

2,500 Fibria (Aracruz) 2,000

1,500 Fibria (Trs Lagoas) Fibria (Jacare) Indonesia 1,000 Fibria (Veracel 50%)

Other Brazilian pulp mills 500 Russia 40 USA Japan 30 Portugal Finland Canada France/ Spain Sweden 20 Chile South Africa China 10

Technical age of the equipment (years)

Source: PYRY

17

17

Trs Lagoas II and Veracel II

Trs Lagoas II

Veracel II

Social and environmental license granted on Aug 18th Forestry Base : - Total area: 230,000 ha - Planted area: 150,000 ha

Forestry Base: - Total area: 220,000 ha - Planted area: 120,000 ha

Environmental Licensing in progress Status:

Trs Lagoas I surplus: 30,000 ha of effective planting Leasing: 70,000 ha of effective planting Change on the forestry base model: leased areas increased to 70%

Negotiation between partners in satisfactory progress

Possible Start up: from 2014 on

18

Pulp and Paper Market

19

Industry Outlook

World chemical market pulp shipments to capacity

102% 95% 92% 90% 90% 86% 96% 95% 96% 98% 94% 92% 89% 87% 88% 83% 87% 92% 87% 88%87% 82% 82% 83% 101%

World Printing&Writing paper shipments to capacity

91% 91% 89% 88% 88% 88% 90% 88% 87% 86% 88%88% 87% 85% 85% 82% 87%87% 86%

93% 92%

84% 82%

81%

Nov-09

Nov-10

Dec-10

Apr-10

Dec-09

Sep-09

Feb-10

Sep-10

Apr-11

Oct-09

Oct-10

Fev-11

Jan-10

Jun-10

Jan-11

Jun-11

Jul-09

Jul-10

Mar-10

May-10

Mar-11

May-11

Aug-09

Aug-10

Jul-11

Nov-09

Nov-10

Dec-09

Dec-10

Oct-09

Oct-10

Jan-10

Jun-09

Jun-10

Mar-11

Mar-10

May-10

Aug-09

Aug-10

Apr-10

Sep-09

Source: PPPC World 20 Total Chemical Market Pulp

Source: PPPC Global 100 World Printing & Writing Report

World pulp producers' average days of supply

50 40 30 20 10 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11
35

World pulp consumers' days of supply

days

days

39

30

25

20

Feb-10

Sep-10

Apr-11

Fev-11

19
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11

15

Jun-11

Jul-09

Jul-10

Jan-11

Source: PPPC World 20

Source: Utipulp

20

Industry Outlook
Market pulp: world demand growth (%)
7M2011 x 7M2010 30%

China: Eucalyptus pulp shipments ('000 t)

458 368 307 238 Average 305 ktons 318 323 300 310 299 256 233 247 Average 193 ktons 242 229 202 219 152 163 332 Average 192 ktons 311 224 198 141

4% 1% -4% Total North America Europe -3%

198 125

222 152 138 161

3%

153 100

Source: PPPC World 20 Chemical Market Pulp

European List Price (BHKP) x Commodity Index (CRB)

650
US$840/t

US$920/t

1.000 900 800 700 600 500 400 300

European List Price (US$/t) BHKP

Commodity Price Index (CRB)

550 450 350 250 Nov-08 Nov-09 May-09 May-10 Nov-10 May-11 Aug-08 Aug-09 Aug-10 Aug-11 Feb-09 Feb-10 Feb-11

CRB

BHKP List Price Source: Fibria

Source: CRB (Commodity Research Bureau) Bloomberg | BHKP: FOEX

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Source: PPPC World 20 |
(1)

Latin America

Japan

China

Average does not consider December 2008 data

Announced list pulp price

List price (as of Sep/2011):

North America: US$900/t Europe: US$820/t Asia: US$730/t

21

Balanced Market Scenario for the Next 2 years

Forecast Million tons

Supply

% Annual growth

2009
23.5 '000 tons 21.4 91% 28.1 24.8 88% 17.0 15.9 93%

2010
23.8 22.3 93% 28.6 25.0 87% 17.6 15.9 90%

2011
25.0 23.0 92% 30.0 26.5 88% 18.8 17.1 91%

2012
25.3 23.3 92% 30.6 27.4 90% 19.6 18.3 94%

2010/2012
3.2% 2.1%

BSK

Demand Ratio

Supply

2.9% 4.7%

BHK

Demand Ratio

Supply

5.4% 7.4%

BEKP

Demand Ratio

Source: PPPC and Fibria

22

Financial Highlights

23

2Q11 Performance

Key Indicators
2Q11 Pulp Production (000 t) Pulp Sales (000 t) Paper Production (000 t) Paper Sales (000 t) 1,271 1,230 31 31 1Q11 1,319 1,259 29 36 2Q10 1,164 1,214 31 29 2Q11 vs 1Q11 -4% -2% 9% -15% 2Q11 vs 2Q10 9% 1% 2% 5%

Pulp Sales Mix

2Q10
11% 38% 24% 25%

1Q11
9% 14% 46%

2Q11
11% 46%

Net Revenue (R$ million) Pro Forma EBITDA (R$ million) EBITDA Margin (%) Financial Income (R$ million) Net Income (R$ million)

1,459 490 34% 277 215

1,548 607 39% 11 389

1,628 672 41% (310) 130

-6% -19% -5 p.p. -45%

-10% -27% -7 p.p. 66%

27% Europe

20% North America Asia

29%

Brazil/Others

Cash Cost without downtimes(R$/t)

EBITDA (R$ million) and EBITDA Margin (%)

41% 462 672 607 39% 34%

448

446 490

2Q10

1Q11

2Q11

2Q10

1Q11

2Q11

24

Competitiveness Project

Actions for increased operating efficiency

Action

2011

2012

2013

Pulp Production ('000 t)

Production gain: +9% 1,271

2011 Capex reduction of R$201 million New bleaching line of Plant A Aracruz Unit Higher operating stability Optimization of wood transportation by barges Aracruz Unit Energy Matrix Jacare Unit Global Sourcing
448

1,164

2Q10

2Q11

Cash Cost without downtimes (R$/t)

+3% (lower than Brazilian inflation: 462 +6.5%)

Rail Extension Trs Lagoas Unit Long-term international logistics contract (STX) Future Forestry Project
2Q10 2Q11

25

Capex

2011 Capex Reduction

(R$ million)

2011E Current

Industrial Expansion Forest Expansion Subtotal Expansion

68 243 311

Safety/Environment

75

Forestry Renewal Maintenance, IT, R&D and Modernization Subtotal Maintenance 50% Veracel/Conpacel Total Fibria

602 356 1,033 96 1,440

R$ 201 million reduction vs original budget

26

Debt

Debt Indicators
Short Term Debt (%)
(R$ million) Gross Debt Cash(1) Net Debt 2Q11 10,448 2,496 7,952 1Q11 10,256 2,297 7,959 2Q10 13,209 2,364 10,846 2Q11 vs 1Q11 2% 9% 0% 2Q11 vs 2Q10 -21% 6% -27% 2Q10
(1) Includes

Net Debt/ EBITDA(2) (x)

16% 14% 12%

4.7 3.2 2.9

1Q11

2Q11
(2) LTM

2Q10

1Q11

2Q11

the MTM of the hegding instruments

EBITDA includes the results from Conpacel and KSR

Debt Amortization Schedule (R$ billion)

6.6

Debt by currency and instrument (%)

Debt by Currency Debt by Instrument
44% 16%

Short term debt: 14% of total debt

1.9 1.0 0.9 0.8 1.3 0.6 1.8 0.8 1.2 0.6

5.1

16%

84% 2016-2021 Domestic Foreign

7% 4% 23%
Bonds Former Aracruz Shareholders NCE

6%

2011

2012

2013 Jun/10

2014

2015

Jun/2011

BNDES Pre-Payment Others

27

Liability Management
Promises delivered, now more ahead to go

Net Debt/EBITDA (x)

7.8 7.2 7.2 6.5 5.6

Net Debt (R$ bi)

15.7 13.2 13.1 11.0 10.9

4.7 3.9 10.8 3.6 3.2 10.2 2.9 9.9 7.9 7.9
Commitment to investment grade level

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11
Sale of Conpacel/KSR R$1.5bn Fibria21 Bond Fibria21: US$ 750MM 6.75% 10NC5 US$ 500MM Revolving facility + US$ 300MM EPP Covenants: 4.0x YE2011 Tight cost and CAPEX control 2011 Capex reduced by R$201 million Piracicaba Unit: indicative price of US$ 313MM

Sale of Guaba US$ 1.4bn Fibria19 Bond: US$ 1.0bn 9.25% 10NC5 Export pre-payment facilities: US$ 1.175bn

Fibria20 Bond: US$ 750MM 7.5% 10NC5 Exchange Bond Fibria19: 94% to Fibria20 Operational cash generation Derivatives debt settlement: US$ 2.6bn Debt: lower cost longer tenor

28

Market Perception
Yield (%)
9,7 9,2 8,7 8,2 7,7 7,2 6,7 6,2 5,7 5,2 7 6,8 6,6 6,4 6,2 6 5,8 5,6 5,4 5,2 Fibria'2021
80bps

Fibria'2019

Fibria'2020

Fibria'2021

Fibria2021 Moodys Fitch S&P

Rating Ba1/positive BB+/stable BB/stable 29

Historical Ratings
S&P
Aracruz VCP (2007-08) / Fibria (2009-10) Aracruz

Moodys
VCP (2007-08) / Fibria (2009-10)

2005

BBB-

N.A.

2005

Baa3

N.A.

2006

BBB-

N.A.

2006

Baa3

N.A.

2007

BBB-

BBB

2007

Baa2

Baa3

2008

BBB

BBB

2008

Baa2

Baa3

2009

BB

BB

2009

Ba2

Ba1

2010

N.A.

BB

2010

N.A.

Ba1

2011

N.A.

BB

2011

N.A.

Ba1

Last Report Date: February 2011 / Rating: BB / Outlook: Positive

Last Report Date: February 2011 / Rating: Ba1 / Outlook: Positive

30

Fibria in Summary

ROI above WACC

Larger scale

Global and strong market positioning

Innovation

HIGHER SHAREHOLDER RETURNS

Growth

Solid financial performance

Sustainability

Low cost structure

31

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

32

Backup

33

China
Chinas Hardwood Imports of BHKP by Country (1)
6,0
5,0

China P&W Capacity Changes 2011-2013(2)

2010

6M 2011
(Million tons)

5,0 4,0 3,0 2,0 1,0 0,0 BHKP Total Latin America
3,1 2,3 1,1

Company / Mill Shandong Huatai Paper Nine Dragons

Effective Date Jan 2011 Jul 2011 Apr 2011 Mar 2011 Ju 2011 Aug 2011 Q3 2011 Q4 2011 2011 Mar 2012 Sep 2012 Q1 2013 2013

'000 t 800 450 250 300 350 800 450 450 810 130 125 450 600 6,200
2012/2013 = 1.5mt 2011 = 4.7 mt

1,1 1,0

1,0 0,7 0,4 0,1 0,2 0,2 0,0

Zhumadian Baiyun Paper China Metalurgical Meili Paper Sun Paper Shandong Chenming

Others* Indonesia

USA

Canada

Western Europe

* includes Russia, China, Thailand and New Zealand

Shandong Chenming April

(1)

China's Share of Market Pulp

10.000 8.000 6.000 4.000 2.000 0 2005 2006 2007 2008 Hardwood
10% 10% 10% 13% 12% 16% 14% 12%

Others Guangxi Tianyi Paper

21% 17%

Hengfeng Paper April Chengton Group

22% 26%

20% 16% 17%

Total P&W capacity changes in China

9%7%

11% 9%

17% 17%

2009 Total

2010

7M 2011

Eucaplyptus
(1) PPPC

(2) Source: TerraChoice Monthly Report Aug 2011

34

Tissue Market
Per Capita Consumption of Tissue by Region, 2010(1)
Kg/capita

World Tissue Consumption, 1991-2010(1)

Million tons

25 20

23,5

35 30 25

Average Growth Rate +3.8%a.a.

15,6

15 10

14,6 11,2

Huge potential growth

5,6 4,4

20 15 10

5 0

3,6

3,0 0,7 0,5

5
Africa

L. America

N&M East

Asia Far East

Oceania

W. Europe

Japan

N. America

E. Europe

China

0
1991 N.America Japan 1996 W.Europe China 2001 E.Europe Asia FE 2006 2009 NME Africa 2010 L.America Oceania

(1)

RISI

35