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Morgan Stanley 13th Annual Latin America Conference
September 13-15, 2010 London
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Disclaimer
The information contained in this presentation may include statements which constituteforward-looking statements, within the meaning of Section 27A of the U.S. Securities Actof 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 anduncertainty with respect to business, financial, trend, strategy and other forecasts, andare based on assumptions, data or methods that, although considered reasonable by thecompany at the time, may turn out to be incorrect or imprecise, or may not be possible torealize. The company gives no assurance that expectations disclosed in this presentation
2
will be confirmed. Prospective investors are cautioned that any such forward-lookingstatements 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 businessand other risks referred to in the companys filings with the CVM and SEC. The companydoes not undertake, and specifically disclaims any obligation to update any forward-
looking statements, which speak only for the date on which they are made.
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Agenda
The Company
Market Positioning
Pulp and Paper Market
4
8
15
3
2Q10 Financials
Synergies
Corporate Restructuring
22
26
28
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4
The Company
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VCP and Aracruz merged to create Fibria
Shareholder Structure
VotorantimIndustrial S.A.
BNDESPar Free Float
29.34% 30.42%1 40.17%
Treasury
0.07%
5
Veracel
50.0%50.0%
Conpacel
1 Position as of August 31, 2010. 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.
NYSE"FBR"42%
BOVESPA"FIBR3"
58%
Average Trading Volume (2Q10):
US$68 million / day
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Improved Corporate Governance
Migration to BMF&Bovespa'sNovo Mercado Listing Segment:
- 100% tag along rights
- Independent members in the Board
- One class of share: 1 share = 1 vote
Policies approved by the
Board of Directors:- Corporate Governance
- Information Disclosure
- Stocks Trading
Accessibility to Managementby Financial Communities
6
Listed in the Most ImportantSustainability Indexes:
DJSI / ISE
Adoption of InternationalAccounting Practices
Investor Relations Awards:- Top 5 in Financial Disclosure (Latam)
- Top 5 in Best Corporate Sustainability
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Improved Corporate Governance
9 Members: 20% Independent
Chairman: Jos Luciano Penido
Board and Committees
Board ofDirectors
ShareholderMeeting
Fiscal Council
7
CEO: Carlos Aguiar
Audit and Risks
Personnel and Remuneration
Finance
Sustainability
BoardAdvisory
Committees
ExecutiveOfficers
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8
Market Positioning
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Creation of a Winning Player
Competitive StrengthsSuperior Asset Combination
Leadership in Market
PulpScale and Integrated
Operations
Low ProductionCost DNA
Caravelas
BelmonteVeracel
Port Terminal
Pulp Mill
Paper Mill
9
Pulp production capacity: 5.4 million t / year Paper production capacity: 358 thousand t / year Total area: 1.0 million ha1|Eucalyptus plantation: 585 thousand ha1
4 pulp plants; 2 paper plants and operation of 3 port terminals High yield in eucalyptus production (avg 45 m3/ha/year) and certified forests
Short harvest cycle: 6 years vs. 25-70 years in Scandinavia
1 Data as of June 30, 2010. Does not include partnership program which represents 125 thousand ha.
Unique Forestry
Management:Advanced ForestryTechniques and
Short Harvest Cycle
Forest to PortIntegration TroughEfficient Logistics
Strong / ReliableCustomer Base
Modern IndustrialPlants
Trs Lagoas
Conpacel
SantosJacarePiracicaba Aracruz
Portocel
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1.500
Unique Brownfield Potential Growth
Modern Plants
Aracruz IV
Best sites for additional capacity ('000 t)
AracruzCapacity: 2.300Technical age: 9
Average Plant Capacity(000 t)
2.500
2.000TrsLagoas
5.300
Planned Capacity Increase
10
Veracel II(1)
Trs Lagoas II
Losango I
Brownfield Brownfield Greenfield Brownfield
(1) Fibrias 50% stake at VeracelSource: Fibria
1.500
1.000
500
40 30 20 10
RussiaJapan
USASweden
CanadaPortugal
FinlandFranceSpain
ChileSouthAfrica China
Brazil
Indonesia
Uruguay
Technical age of equipment (years)
.Technical age : 0
JacareCapacity: 1.100
Technical age : 5
Veracel (1)
Capacity: 550Technical age : 3
Fibria's Pulp Capacity 1979 - 2009 CAGR: 3.6% Expansion
750
1.500
1.500
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Fibria has the best sites ready to duplicate capacity
5,400750
1,500
1,500
1,500 10,650
Veracel IITrs Lagoas II
Losango
Aracruz IV
Capacity expansion ('000 t) Status of expansion projects
Trs Lagoas II
Capacity: 1.5 million tons
Forest base:
- Need: 150,000 ha-TLS I surplus: 30,000 ha
- Leasing: 45,000 ha in 2010
11
Fibria 2010 Brownfield Brownfield Greenfield Brownfield Fibria 2025
Social-environmental licensing process initiated
Feasibility study to start in 2011
Startup slated for 2014
Veracel II
Capacity: 1.5 million tonsNegotiations with partner in progress
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Tembec
Botnia
Sodra
CMPC
APRILArauco
Fibria
Leadership in the Global Market Pulp Sector
Pulp Production Capacity
2009 ('000 t)
1st
~ Twicethe size
5,400
Market Share1
3%11%
12
0 1.000 2.000 3.000 4.000 5.000 6.000
Stora Enso
Cenibra
West FraserMercer
ENCE
Georgia Pacific
Ilim
IP
Domtar
Canfor
APP
Weyerhaeuser
Bleached Hardwood Kraft Pulp (BHKP)
Bleached Softwood Kraft Pulp (BSKP)Unbleached Kraft Pulp (UKP)
Mechanical
Source: PYRY, 2007 / As for Market Pulp: Pulp and Paper Products Council (PPPC) 2009 and Fibria.1 Market Share estimated considering 2009 nominal capacity
Total Pulp:188 million t
Total Hardwood Pulp:25 million t
Total Market Pulp:48.5 million t
Total Eucalyptus Pulp:17 million t
22%
32%
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Low Production Cash Cost DNA
Cash Cost1 US$/t
284 310
320225
199152 113
238 161
118133
151 155
468437
436 423
475
416 393
296266 255 2502
Hardwood Cash Cost (US$/t) vs Capacity ('000 t)
300
400
500
600
US$/ton
Iberia
13
155238
178232
178
133 104 95
Wood Others
Iberia
1 Source: Hawkins Wright Estimate 2Q10
2 Fibria 2Q10 Cash cost without downtimes
0
100
200
0 2.000 4.000 6.000 8.000 10.000 12.000
250
Capacity ('000 t)
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Long Term Relationship With Key Clients
Global Footprint
Supplies customized pulp products to specific paper grades
Sole supplier to key customers focused on eucalyptus pulp to the tissue market
Top 10 main customers represent on average 65% of sales
P&W
Tissue
Specialty
Uses of Fibrias Pulp 2Q10
Europe38%
Switzerland
53%26%
21%
14
NY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.wor
1 Sales destination as of 2Q10.
North America
27%Asia24%
Brazil11%
Beijing
SalesDestination1
Miami Hong Kong
Hungary
Subsidiaries Representative officesHeadquarters
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15
Pulp and Paper Market
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Shipments to Capacity Ratios and Inventories
World P&W paper shipments to capacityWorld market pulp shipments to capacity
88%
82%
88%
82%
78%
90%
79%
90%92%
95%
86%
93%
90%91%92%
89%89%89%
86%
94%96%
92%
85%
93%
85%
08
08
08
08
08
08
09
09
09
09
09
09
09
09
09
09
09
09
10
10
10
10
10
10
10
92%90%
87%
95%
91%
85%
79%
76%
79%80%80%78%
82%83%81%
89%88%88%
84%82%
88%89%
88%86%
85%
8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 9 910
10
10
10
10
10
10
16
Ju
l-
Aug-
Sep-
Oc
t-
Nov-
Dec-
Jan-
Fe
b-
Mar-
Apr-
May-
Jun-
Ju
l-
Aug-
Sep-
Oc
t-
Nov-
Dec-
Jan-
Fe
b-
Mar-
Apr-
May-
Jun-
Ju
l-
Ju
l-
Aug-
Sep-
Oc
t-
Nov-
Dec-
Jan-
Fe
b-
Mar-
Apr-
May-
Jun-
Ju
l-
Aug-
Sep-
Oc
t-
Nov-
Dec-
Jan-
Fe
b-
Mar-
Apr-
May-
Jun-
Ju
l-
World pulp consumers' days of supplyWorld pulp producers' average days of supply
Source: PPPC Global 100 Chemical Market Pulp Source: PPPC Global 100 P&W
Source: PPPC Global 100 Total Chemical Pulp Producers' stock
20
15
20
25
30
35
Apr-0
5
Nov-0
5
Jun-0
6
Jan-0
7
Aug-0
7
Mar-0
8
Oct-0
8
May-0
9
Dec-0
9
Jul-1
0
29
10
20
30
40
50
Apr-0
5
Nov-0
5
Jun-0
6
Jan-0
7
Aug-0
7
Mar-0
8
Oct-0
8
May-0
9
Dec-0
9
Jul-1
0
days
days
Source: PPPC Global 100 Total Chemical Pulp Consumers' stock
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Industry Outlook
China: Eucalyptus pulp shipments ('000 t)Market pulp: world demand growth (%)
264196 204
161128
151
268
495
296
356
518
412
340355 350
363
293266
331
280210
276267
191235251
203
-08
-08
l-08
-08
-08
t-08
-08
-08
-09
-09
r-09
r-09
-09
-09
l-09
-09
-09
t-09
-09
-09
-10
-10
r-10
r-10
-10
-10
l-10
0%
9% 10%
18%15%
-27%Total North America Europe Latin America Japan China
Average
240 ktons
Average
347 ktons Average
233 ktons
17
Ma
Ju J
u
Au
Se
Ou
No
De
Ja
Fe
Ma
Ap
Ma
Ju J
u
Au
Se
Oc
No
De
Ja
Fe
Ma
Ap
Ma
Ju J
u
Announced list pulp priceEuropean List Price (BHKP) x Commodity Index (CRB)
Source: Fibria
Source: PPPC Global 100 World Chemical Market Pulp Source: PPPC Global 100
7M2010 x 7M2009
List price (as of September/2010):
North America: US$900/t Europe: US$870/t Asia: US$800/t
Source: CRB (Commodity Research Bureau) Bloomberg | BHKP: FOEX
US$840/tUS$920/t
300
400
500
600
700800
900
1.000
250
350
Jan-0
8
Mar-
08
May-0
8
Ju
l-08
Sep-0
8
Nov-0
8
Jan-0
9
Mar-
09
May-0
9
Ju
l-09
Sep-0
9
Nov-0
9
Jan-1
0
Mar-
10
May-1
0
Ju
l-10
CRB BHKP List Price
European
ListPrice
(US$/t)
BHKP
Commo
dity
Price
Inde
x(CRB)
Aug-1
0
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24.8
28.3
1.6
1.40.2 0.3
30.1
28.0
1.3
0.6 0.3 -0.1
Asia4.5% p.a.
Europe5% p.a.
USA
2% p.a.
Others
2% p.a.
Expected Supply x Demand Balance1 Market Pulp BHKP (million t)
Rizhao(3Q10/2011) FibriaTLS (2010)
JBSEldorado(4Q12)
Others2
Pulp Supply x Demand Balance Expected to Remain Tight
18
2009 BHKPDemand
Asia Europe USA Others 2012 BHKPDemand
2009 BHKPDemand
Asia Europe USA Others 2012 BHKPDemand
2009 BHKPDemand
2009 BHKPSupply
OR3:94%
OR3:89%
2012 BHKPDemand
2012 BHKPSupply
1 Source: PPPC / Fibria2 Capacity changes3 OR: Operating rate
+3.5 MT +2.1 MT
Demand Supply
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P&W Capacity Changes
Company / Mill Effective Date '000 t
Puyang Longfeng Jan 2009 350
Tralin, Gaotang Feb 2009 150
MCC Yinhe Paper Jul 2009 200
Yeuyang Paper Oct 2009 200
Fujian Nanping Paper Oct 2009 200
Yeuyang Paper 2010 200
Fujian Nanping March 2010 100
Sun Paper/IP March 2010 350
2009 = 1.1 million t
Company Region/Date '000 t
M Real Europe/2009 320
International Paper Europe/2009 250
Others Europe/2009 455
International Paper North America/2009 200
Others North America/2009 230
Stora Enso Europe/2010 210
2009 = 1.5 million t
P&W paper capacity withdrawals 2009-20101 China: P&W paper capacity changes 2009-20131
19
Guangxi Yongkai Sugar April 2010 200
APP, Hainan Island May 2010 1,200
Lee&Man 1H 2010 200
Jiangsu Oji Paper Q32010 400
Shandong Huatai late 2010 150
Guangxi Jindaxing December 2010 200
Guangxi Yongkai Sugar 2011 200
China Metalurgical Meili Paper Q1 2011 300
Shandong Huatai Paper Q1 2011 500
Shandong Chenming Q1 2011 1,250
Guangxi Huajin Group late 2011 340
Sun Paper Q1 2011 300
Nine Dragons late 2011 450
April early 2012 450
April early 2013 450
Total P&W capacity changes in China 8,400
2010 = 3.1 million t
2011 = 3.3 million t
Others Europe/2010 80
Domtar North America/2010 415
International Paper North America/2010 340
Others North America/2010 280
Total P&W capacity withdrawals in Europeand North America
3,000
2010 = 1.5 million t
1 Source: TerraChoice July 2010
2012-13 = 0.9 million t
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Chinas Presence in the Market Pulp Sector
+59%
+107%3.000
4.000
5.000
6.000
7.000
2008 2009 Growth
China's Hardwood imports of BHKP by country1 China's share of market pulp (%)2
26%
22%10%
12%
14%
21%
6.000
8.000
10.000Eucaplyptus Hardwood Total
000t
000t
Pulp Shipments (000) and Market Share (%)
20
+2%
+51%+12%
+117%+38%
+151%+142% +2%
0
1.000
2.000
BHKPTotal
Brazil
Indonesia
Chile
Russia
Uruguay
Canada
USA
Others
Thailand
Brazil is the leading exporter of BHKP toChina, accounting to approximately 41% ofChina's total imports in 2009.
Between 2005 and 2009, the Chinese marketshare of eucalyptus shipments increased by17 p.p. (total market pulp: +11 p.p.)
2 Source: PPPC W20. Coverage for chemical market pulp is 80% of world capacity.
9% 11%13%
16%
7% 9%10% 12%
0
2.000
.
2005 2006 2007 2008 2009
1 Source: Hawkins Wright
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10
15
20
25
30
China Paper&Board Production and Consumption1 Per Capita Consumption of Tissue by World Region2
Kg / capita
20
30
40
50
60
70
40
60
80
100
120
Benefiting From Chinas Growth
in million tons kg/person/yr
21
0North
AmericaWest
EuropeJapan Oceania LatAm East
EuropeChina Africa
1 Source: China Paper Association.
0
10
0
20
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Consumption Production Per Capita
Chinese consumption of high quality tissue paper has a huge potential upside, as GDP per capitaincreases.
2 Source: RISI
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22
2Q10 Financials
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2Q10 Performance
Pulp sales mixKey figures
2Q10 1Q10 2Q09 2Q10vs1Q102Q10
vs2Q09
Pulp Production (1000t) 1,208 1,314 1,334 -8% -9%
Pulp Sales (1000t) 1,253 1,322 1,349 -5% -7%
Paper Producton (1000t) 79 77 94 3% -16%
Paper sales (1000t) 87 83 104 6% -16%
Net Revenue (R$ million) 1,809 1,675 1,471 8% 23%
Adjusted EBITDA (R$ million) 730 637 389 15% 87%
EBITDA Mar in % 40% 38% 26% 2 . . 14 . .
21%
32%
37%
9%
2Q09
27%
39%
23%
11%
1Q10
North America Europe Asia Brazil/Others
27%
38%
24%
11%
2Q10
23
EBITDA (R$ million) and EBITDA Margin (%)Cash cost (R$/t)
389
637
730
2Q09 1Q10 2Q10
. . . .
Financial Income (R$ million) (315) (341) 1.369 - -
Net Income (R$ million) 130 9 920 1,341% -86%
26%
38% 40%
418
499
440
1Q10 2Q10 2010E
449
2Q10 w/odowntimes
Source: Fibria
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Debt
Debt indicators
(R$ million) 2Q10 1Q10 2Q09 2Q10 vs
1Q102Q10 vs
2T09
Gross Debt 13,209 13,540 16,145 -2% -18%
Cash 2,364 2,684 2,953 -12% -20%
Net Debt 10,846 10,856 13,192 - -18%
4762
70
2Q09 1Q10 2Q10
(1)Does not include the debt to former Aracruz shareholders
Average maturity(1) (months)
7.2
5.64.7
Jun-09 Mar-10 Jun-10
Net Debt / EBITDA(2) (x)
(2)Last 12 months EBITDA
24
Debt amortization schedule (R$ billion) Debt by currency and type
1.6
4.6
2.1
1.41.7 1.7
1.1
1.9
1.1
1.9
0.91.3
1.8
1.2
5.1
2009 2010 2011 2012 2013 2014 2015 2016-2020
Jun-09 Jun-10
71% 29%
Gross debt by currency
Foreign Local
1 Amortization schedule as of Jun/20092 Amortization schedule as of Jun/2010
1 2
37%
27%
13%
14%
3%6%
Gross debt by type
Pre-payment Bonds
Former Aracruz shareholders BNDES
NCE Others
Short-term debt:
from 34% in Jun/09
to16% in Jun/10
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Financial Turnaround
Liability Management
Achievements 2Q09 2Q10
Leverage (Net Debt / EBITDA) 7.2x 4.7x
Cost of Foreign Debt 7.1% p.a. 6.0% p.a.
Average Maturity (months) 47 70
Collateral Debt (% of total debt) 43% 16%
Access to Capital Markets Amount
Eurobond Fibria 2019 @ 9.25% p.a. US$ 1 bi
Eurobond Fibria 2020 @ 7.5% p.a. US$ 750 mi
Pre Export Payment @ 3month Libor + 4.00% p.a.(tranche 1) US$ 750 mi
Pre Export Payment @ 3month Libor + 4.25% p.a. (tranche 2) US$ 425 mi
25
Derivatives debt US$ 2.6 bi -
Net Debt R$ 13.2 bi R$ 10.8 bi
Pre Export Payment @ 3month Libor + 2.8% p.a. US$ 600 mi
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26
Synergies
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Synergies
Net Present Value of the synergies (R$ billion)
3,4
4,24,3 4,52Q10 status:
108% of theprojected curve
27%21%
2%Industrial
- Cost reduction ofchemicals and energy
Supply Chain
- Reduction of shipping cost
- Optimization of logistics
Others
2.0
27
Accumulated Estimated
0.5
1.4
,
dec/09 2Q10 dec/10 2011 2012 2013 2014
23%16%
11% - Production increase
Forestry
- Reduction of forestry costs
- Best practices in R&D
SG&A
Tax
0.5
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28
Corporate Restructuring
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Corporate Restructuring
Event Date
Acquisition by VCP of additional 28% of Aracruz common shares Jan 20, 2009
VCP Capital Increase Apr 14, 2009
VCP conversion of prefered into common shares Jun 12, 2009
Tender Offer for Aracruz common shareholders Jul 02, 2009
Incorporation proposal for the 0.1347 ratio Aug 24, 2009
29
,
Shareholderes Agreement - VID and BNDES Oct 29, 2009
End of withdrawal rights period Nov 12, 2009
End of Aracruz trading Nov 17, 2009
Fibria trading start (Bovespa: FIBR3 / NYSE: FBR) Nov 18, 2009
Approval of the merger of Aracruz into Fibria Dec 22, 2009
Migration to Novo Mercado listing segment at BM&FBovespa May 20, 2010
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Investor Relations Team:
Joo Elek IROAndr Gonalves General Manager
Fernanda Naveiro Vaz
Anna Laura Linkewitsch
Roberto Costa
Phone: +55 11 2138-4565
Email: [email protected]
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