Corporate Presentation June, 2011

Transcription

1 Corporate Presentation June,

2 Disclaimer The information contained in this presentation may include statements which constitute forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to business, financial, trend, strategy and other forecasts, and are based on assumptions, data or methods that, although considered reasonable by the company at the time, may turn out to be incorrect or imprecise, or may not be possible to realize. The company gives no assurance that expectations disclosed in this presentation will be confirmed. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements, due to a variety of factors, including, but not limited to, the risks of international business and other risks referred to in the company s 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. 2

3 Agenda 1 The Company 2 Market Positioning 3 1Q11 Financials 4 Fibria s Highlights 5 Corporate Restructuring 3

4 The Company 4

5 VCP and Aracruz merged to create Fibria Shareholder Structure Votorantim Industrial S.A. BNDESPar Free Float 29.34% 30.42% (1) 40.24% (2) 50.0% 51.0% Veracel Portocel (1) Position as of May 31, BNDESPar has 21% linked to a Shareholder s Agreement with Votorantim Industrial S.A. during the first 3 years and 10.9% during the following 2 years. (2) Free Float 40.17% + Treasury 0.07% 5

6 Improved Corporate Governance Improved Corporate Governance Board and Committees Migration to BMF & Bovespa's Novo Mercado listing segment Best IR program in the sector in Latin America by Institutional Investor Magazine Listed in the most important sustainability indexes: DJSI / ISE Fiscal Council Shareholders Committee Board of Directors 9 Members: 20% Independent Chairman: José Luciano Penido CEO: Carlos Aguiar 100% Independent Board Advisory Committees Policies approved by the Board: - Corporate Governance - Information Disclosure - Stocks Trading Adoption of international accounting practices (IFRS) Executive Officers Audit and Risks Personnel and Remuneration Finance Sustainability 6

7 Market Positioning 7 7

8 A Winning Player Superior Asset Combination Competitive Strengths Pulp Unit Paper Unit Port Terminal Leadership in Market Pulp Scale and Integrated Operations Belmonte Veracel Caravelas Modern Industrial Plants Low Production Cost DNA Três Lagoas Portocel Conpacel Piracicaba Jacareí Santos Aracruz Forest to Port Integration Through Efficient Logistics Strong / Reliable Customer Base Pulp production capacity: 5.2 million t/year Paper production capacity: 163 thousand t/year Total area: 1.0 million ha (1) / Eucalyptus plantation: 571 thousand ha (1) Unique Forestry Management: Advanced Forestry Techniques and Short Harvest Cycle 4 pulp units, 1 paper unit and operation of 3 port terminals High yield in eucalyptus production (avg 45 m 3 /ha/year) and certified forests Short harvest cycle: 6 years vs years in Scandinavia ) Data as of March 31, It does not include Conpacel and partnership program which represents 124 thousand ha. 8

9 Leadership in the Global Market Pulp Sector Industry Outlook (1) Pulp Production Capacity (2) Recycled Fiber 224 million t Paper & Board 392 million t 57% 43% Mechanical 33 million t Pulp 167 million t 20% 80% Integrated Mills 85 million t Chemical 134 million t 66% 34% Softwood/Other 22 million t Market Pulp 46 million t 46% 54% Acacia/Other 8 million t Hardwood 24 million t 36% 64% 69% Other Eucalyptus Pulp producers: 11 million t Eucalyptus 16 million t 31% ('000 t) 1st Fibria APRIL 5,250 Arauco APP Georgia Pacific CMPC Sodra Stora Enso Weyerhaeuser Suzano Botnia/M-real UPM-Kymmene Domtar Ilim Mercer Bleached Softwood Kraft Pulp (BSKP) IP Bleached Hardwood Kraft Pulp (BHKP) ENCE West Fraser Unbleached Kraft Pulp (UKP) Canfor Corporation Mechanical Cenibra (1) RISI and PPPC: considers 2010 demand (2) Hawkins Wright January

10 Relevant Market Share and Low Operations Cost DNA Fibria's Market Share (1) Average Cash Cost of BHKP (2) (US$/t) 3% 11% Wood 298 Others Total Pulp: 188 million t Total Market Pulp: 48.5 million t 21% Hardwood Cash Cost (US$/t) vs Capacity ('000 t) 31% milliont Total Hardwood Pulp: 25 million t Total Eucalyptus Pulp: 17 million t Cash cost (US$/t) Bleached hardwood kraft (1) PPPC Global 100: Market Share estimated considering 2010 demana (3) Source: Hawkins Wright Estimated Dec 2010 (3) Fibria 1Q11 Cash Cost Capacity ('000s t) 10

11 Long Term Relationship With Key Clients Global Footprint Customized pulp products to specific paper grades Sole supplier to key customers focused on eucalyptus pulp to the tissue market Uses of Fibria s Pulp 1Q11 The top 10 customers represent, on average, 65% of sales Specialty Over 20 years of relationshipwith many of the main clients 22% 49% Tissue Global contracts P&W 29% Europe 46% Switzerland North America 20% Hungary Asia 25% Beijing Miami Hong Kong Sales Destination (1) Brazil 9% Headquarters Subsidiaries Representative offices (1) Sales destination as of 1Q11 NY004GAK_1.wor 11

12 1Q11 Financials 12

13 1Q11 Performance Key Indicators Pulp Sales Mix 1Q11 4TQ0 1Q10 1Q11 vs 4Q10 1Q11 vs 1Q10 Pulp Production ( 000 t) 1,319 1,330 1,267-1% 4% 1Q11 4Q10 1Q10 Pulp Sales ( 000 t) 1,259 1,254 1,281 0% -2% 9% 9% 8% Paper Production ( 000 t) % -1% Paper Sales ( 000 t) % 30% 25% 46% 23% 38% 24% 40% Net Revenue (R$ million) 1,548 1,563 1,511-1% 2% Pro Forma EBITDA (R$ million) % 2% EBITDA Margin (%) 39% 39% 39% 0 p.p. 0 p.p. 20% 30% Europe North America Asia Brazil/Others 28% Financial Income (R$ million) (337) -67% - Net Income (R$ million) % - Cash Cost (R$/t) EBITDA (R$ million) and EBITDA Margin (%) Cash Cost 2010 R$452/t % 39% 39% Q10 4Q10 1Q11 Cash Cost 1Q10 4Q10 1Q11 13

14 Debt Debt Indicators (R$ million) 1Q11 4Q10 1Q10 1Q11 vs 4Q10 1Q11 vs 1Q10 Gross Debt 10,256 12,022 13,540-15% -24% Cash (1) 2,297 2,205 2,684 4% -14% Short Term Debt(%) 23% 17% 12% Net Debt/ EBITDA (2) (x) Net Debt 7,959 9,816 10,856-19% -27% (1) Includes fair value of derivatives 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 (2) LTM EBITDA includes the results from Conpacel and KSR Debt Amortization Schedule (R$ billion) Debt by currency and instrument (%) 5.5 Debt by Currency Debt by Instrument Short term debt: 12% oftotal debt % Domestic 22% Foreign 6% 5% 45% 21% 17% 6% Bonds BNDES Former Aracruz Shareholders Pre-Payment NCE Others Mar/2010 Mar/

15 Liability Management Decline of Net Debt/EBITDA (1) Net Debt/EBITDA (X) Net Debt (R$ billion) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Guaíba Sale US$1.4 bi Fibria 19 Bond: US$1 bi (9.25% -10NC5) EPP Line: US$1.175 bi Fibria 20 Bond: US$750 mi (7.5%-10NC5) Fibria 19 Bond Exchange: 94% adherence to Fibria 20 Recovery of operating cash flow Early Settlement Derivatives Debt US$2.6 bi Reduction of average debt cost Conpacel/KSR Sale R$1.5 bi Fibria 21 Bond: US$750 mi (6.75% -10NC5) Settlement of 90% of the debt with former Aracruz Shareholders: R$4.8 bi 15

16 Synergies Net Present Value of Synergies (R$ billion) Other 2% Supply chain 21% Industrial 27% 2010 Status: 117% of the projected curve Taxes 11% SG&A 16% Forest 23% Estimated Actual 16

17 Fibria s Highlights 17

18 Fibria s Highlights Operating Excellence - Achievement of Três Lagoas Unit learning curve - EBITDA margin increased to 40% - One of the lowest cash costs in the industry: US$249/t - Synergies: R$3.1 billion (NPV) captured (1Q11) - Personnel, system and process integration Financial Turnaround - Liquidity event: Guaíba and Conpacel/KSR Asset sale - Access to capital markets - Early settlement of derivatives debt - Reduce leverage - Extended debt maturities Corporate Governance Expansion - Migration to Novo Mercado segment - Corporate Governance, Information Disclosure and Securities Trading policies approved by the Board - Adoption of international accounting practices (IFRS) - Included in the DJSI and ISI sustainability indexes - Best IR program in the sector in Latin America by Institutional Investor Magazine Três Lagoas II: start up slated for Veracel II: Negotiations with partner in progress 18

19 Corporate Restucturing 19

20 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 ratio Aug 24, 2009 Merger of Aracruz shares into VCP approval Aug 24, 2009 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,

21 Investor Relations Team: Website: Tel.: +55 (11)