May Corporate Presentation

Transcription

1 May 2014 Corporate Presentation

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 forward-looking statements, which speak only for the date on which they are made.

3 The Company

4 Shareholder Structure Votorantim Industrial S.A % BNDES Participações 30.38% (1) Free Float 40.20% (2) 29% NYSE Level III 71% BM&FBOVESPA Average Daily Trading Volume (LTM): US$ 32 million Listed on Novo Mercado, highest level of Corporate Governance at BM&FBovespa: Only 1 class of shares 100% voting 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 HIGHLIGHTS Policies approved by the Board of Directors Liability and liquidity management Market risk Management Risk Management Corporate governance Information disclosure Stock trading Listed in the most important sustainability indexes (1) Position as of January 31, Under the shareholders' agreement between BNDESPar and Votorantim Industrial, BNDESPar must hold at least 11% of the total capital between Oct/12 and Oct/2014. (2) Free Float 40.14% + Treasury 0.06%

5 A Winning Player Superior Asset Combination Main Figures 1Q14 Pulp capacity million tons 5.3 Net revenues R$ billion 7,1 Total area (1) thousand hectares 962 Três Lagoas Belmonte Veracel Caravelas Portocel Aracruz Jacareí Santos Planted area (1) thousand hectares 557 Net Debt R$ billion 7.0 Net Debt/EBITDA (in Dollars) (2) X 2.4 Net Debt/EBITDA (in Reais) X 2.4 Port Terminal Pulp Unit 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 Fibria s Units Industrial Capacity Três Lagoas Mato Grosso do Sul 1,300 thousand t/year Jacareí São Paulo 1,100 thousand t/year Aracruz Espírito Santo 2,340 thousand t/year Veracel Bahia 560 thousand t/year * * Veracel is a joint venture between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year

7 Fibria s Strategy

8 Leadership Position Industry Outlook (1) Market Pulp Capacity Ranking 2013 (2) (000t) Recycled Fiber 234 million t Fiber Consumption 403 million t 58% 42% Mechanical 31 million t Pulp 169 million t 18% 82% 60% Integrated Mills 84 million t Chemical 139 million t Softwood/Other 27 million t 40% Market Pulp 55 million t 49% 51% Acacia/Other 10 million t Hardwood 28 million t 35% 65% Eucalyptus 18 million t Fibria APRIL Arauco Georgia Pacific CMPC UPM-Kymmene Sodra Suzano Paper Excellence Weyerhaeuser Stora Enso Domtar Ilim IP Mercer Metsa Fibre Eldorado West Fraser ENCE Canfor 5,300 Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical 71% Other Eucalyptus Pulp producers: 13 million t 29% (1) Fiber Consumption, Recycled Fiber and Pulp: RISI Market Pulp, Hardwood and Eucalyptus: PPPC Special Research Note - November 2013 (2) Hawkins Wright Outlook for Market Pulp, December 2013

9 Fibria s Commercial Strategy Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers Long term contracts Competitive logistics set up Tissue 46% Fibria s Pulp End Use Printing & Writing 36% Speciatilies 18% 19% N.America Miami Nyon Csomád 46% Europe 26% Asia Hong Kong 9% L.America São Paulo Fibria s Sales Distribution Fibria s Offices Source: Fibria 1Q14

10 10 Door to Door Operations Pulp mill Outbound Logistics Forest Integrated logistics solutions Low forest to mill average distance Easy access to the most efficient transportation network: rail, barging and road Efficient Logistics Setup Portocel: specialized port for the pulp and paper industry Client Port Sea Freight

11 Pulp and Paper Market

12 Paper Consumption CAGR Developed Markets: + 1.7% Emerging Markets : + 6.0% 117,611 CAGR Developed Markets: - 4,0% Emerging Markets : + 4.1% 114,507 85,291 P&W Consumption (000 tons) (1) Developed Markets Emerging Markets CAGR Developed Markets: + 2.4% Emerging Markets : + 6.9% CAGR Developed Markets: + 1.4% Emerging Markets : + 6.7% 37,474 26,877 15,548 Tissue Consumption (000 tons) (1) Developed Markets Emerging Markets (1) Source: RISI

13 Global Market Pulp Demand Hardwood demand will continue to increase at faster pace than Softwood Hardwood (BHKP) vs. Softwood (BSKP) (000 ton) Demand growth rate 35, CAGR: Hardwood: +2.3% Softwood: +1.0% Million tons Growth Growth ,000 25,000 Hardwood % 27% 20,000 15,000 10,000 5,000 0 Eucalyptus % 67% Softwood % 7% Market Pulp Hardwood Softwood Source: PPPC

14 BHKP prices - cif Europe (US$/ton) Greenfield capacity (000 ton) Gross capacity addition should not be counted as the only factor influencing pulp price volatility 1, APP Hainan Fray Bentos Três Lagoas Rizhao Eldorado Maranhão Montes del Plata Guaíba II Veracel Nueva Aldea Mucuri Valdivia Santa Fé Kerinci PL3 APP Guangxi Chenming Zhanjiang Source: Hawkins Wright 14

15 15 Capacity closures DO happen Closures of Hardwood Capacity Worldwide (000 ton) E Source: PPPC and Fibria

16 16 Total delivered cash cost will also have an influence on bottom prices Capacity (k tons): 1, , ,045 2, ,625 3,755 11,385 = 30, Total Cash Cost of BHKP delivered to Europe (US$/t) Working Capital Interest CAPEX Others SG&A Cash Cost (US$/t) Delivery (US$/t) Source: Hawkins Wright (Outlook for Market Pulp, March 2014) Fibria s 1Q14 LTM considering a FX of R$/US$2.25.

17 N. America West Europe Japan Oceania East Europe LatAm China Africa Tissue Market Per Capita Consumption of Tissue by Region, 2013 (1) World Tissue Consumption, (1) 24.3 Kg/capita LTM Growth of +4.2% Million tons Growth Potential N.America W.Europe E.Europe L.America Middle East Japan China Asia FE Oceania Africa (1) Source: RISI

18 Pulp Projects Backlog Even though there is an extensive pulp projects backlog, there are important question marks regarding new projects Main Questions About Capacity Minimum required return for new projects Closures due to increasing costs worldwide, reduction of maintenance capex (higher technical age of recovery boilers) and exchange rates Fiber substitution: Softwood x Hardwood and Recycled x Virgin Fiber Main Projects Project Country Capacity Timing Status Arauco / Stora Uruguay 1.3 Mt 1Q2014 Confirmed CMPC Guaíba II Brazil 1.3 Mt 2Q2015 Confirmed Klabin Paraná Brazil 1.5 Mt* 2Q2016 Confirmed Fibria Três Lagoas II Brazil 1.75 Mt - Unconfirmed APP South Sumatra Indonesia 1.5 Mt 2.0 Mt - Unconfirmed * 1.1 million tonnes of hardwood and 400 thousand tonnes of softwood

19 Financial Highlights

20 21 1Q14 Results PRODUCTION AND SALES VOLUME (000 t) NET REVENUES (R$ million) 1,370 1,510 1,347 1,301 1,358 1,441 1, % 1,841 1,958 1Q13 4Q13 1Q14 Production Sales 1Q13 4Q13 1Q14 CASH COST (R$/t) EBITDA (R$ million) and EBITDA MARGIN (%) cah cost ex-downtimes cash cost 39% 42% 41% Q13 4Q13 1Q14 1Q13 4Q13 1Q14

21 21 Debt Profile 2,959 Debt Amortization Schedule at Mar/2014 (R$ Million) 1,484 (revolving) 1,475 (cash) 1, ,386 1, , Liquidity Pre-payment BNDES NCE ACC/ACE/Other Voto IV Bond Cost of Debt Foreign Currency (% p.a.) Debt by Currency 5.2% 6% 4.6% 94% Mar/13 Mar/14 Local Currency Foreign Currency

22 Debt NET DEBT(R$ million) ,745 8,240 Net Debt/EBITDA (R$) Net Debt/EBITDA (US$) ,849 3,790 3,695 3,351 Mar/13 Dec/13 Mar/14 R$ US$ GROSS DEBT (R$ million) - 11% - 24% 10,768 9,487 5,269 9,773 4,254 4,172 Mar/13 Dec/13 Mar/14 R$ US$ 22

23 Net Results (R$ million) 1Q Debt Exchange Variation 317 Debt Hedge 30 (111) (303) (412) (64) (117) 19 Adjusted EBITDA Debt Exchange Variation / MtM hedge debt MtM Operational Hedge Net Interest 2020 Bond Redemption (1) Depreciation, amortization and depletion IR/CS Other Net Profit (Loss) (2) Non-recurring impact (1) Concluded transaction with 111,3% premium over the face value (US$ milhões), without additional broker fees. (2) Includes : other expenses/non-recurring incomes, other debt exchange variation and other financial incomes/expenses. 2

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