Santander 11 th Annual Conference. August 22-24, 2010 São Paulo 1

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Transcription:

Santander 11 th Annual Conference August 22-24, 2010 São Paulo 1

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

Agenda The Company Market Positioning Pulp and Paper Market 2Q10 Financials Corporate Restructuring 3

The Company 4

VCP and Aracruz merged to create Fibria Shareholder Structure Votorantim Industrial S.A. BNDESPar Treasury Free Float 29.34% 30.42% (1) 0.07% 40.17% 50.0% 50.0% Veracel Celulose S.A. Conpacel (1) Position as of June 30, 2010. BNDESPar has 21% linked to a shareholder s agreement with VID during the first 3 years, and 10.9% during the following 2 years. 5

Improved Corporate Governance Board of Directors Board Advisory Committees Alexandre Gonçalves Silva Alexandre Silva D Ambrosio Indicated by Votorantim Indicated by Votorantim Audit and Risks Armando Mariante Carvalho Junior Eduardo Rath Fingerl Indicated by BNDES Indicated by BNDES Personnel and Remuneration João Miranda Indicated by Votorantim José Armando de Figueiredo Campos Independent Member Finance Jose Luciano Penido Chairman of the Board Raul Calfat Wang Wei Chang Indicated by Votorantim Indicated by Votorantim Sustainability 6

Market Positioning 7

Creation of a Winning Player Superior Asset Combination Competitive Strengths Pulp Mill Paper Mill Port Terminal Três Lagoas Conpacel Belmonte Veracel Caravelas Portocel Aracruz Piracicaba Jacarei Santos Pulp production capacity: 5.4 MT / year Paper production capacity: 358 kt/ year Total area: 1.0 million ha (1) Eucalyptus plantation: 585 thousand ha (1) 4 plants and operation of 3 port terminals, including the only specialized wood pulp terminal in Brazil, owned by us High yield in eucalyptus production (avg45 m 3 /ha/year) and certified forests Short harvest cycle: 6 years vs. 25-70 years in Southern U.S., Canada and Scandinavia Leadership in Market Pulp Scale and Integrated Operations Unique Forestry Management: Advanced Forestry Techniques and Short Harvest Cycle Forest to Port Integration Trough Efficient Logistics Low Production Cost DNA Strong / Reliable Customer Base Modern Industrial Plants Data as of March 31, 2010. (1)Does not include partnership program which represents 127 thousand ha. 8

Unique Brownfield Potential Growth Fibria has the Best Sites Ready to Almost Duplicate Capacity Historical and Planned Capacity Increase 2.500 Average Plant Capacity ( 000 tons) Aracruz Capacity 2.3 mt Technical age: 9 Best sites for additional capacity (mt) 5.3 2.000 Três Lagoas Capacity 1.3 mt Technical age : 0 Aracruz IV 1.5 1.500 Losango I 1.5 1.000 Indonesia Uruguay Jacareí Capacity 1.1 mt Technical age : 5 500 Russia USA Japan Portugal Canada Sweden Brazil Chile Finland South France Africa Spain China Veracel II Três Lagoas II 0.8 1.5 40 30 20 10 Technical age of equipment (years) Veracel Capacity 1.1 mt Technical age : 3 Brownfield Brownfield Greenfield Brownfield Capacity 1979-2009 CAGR: 3.6% Expansion Source: Fibria 9

Undisputable Leadership in the Global Market Pulp Dominant Position in a Growing Market Pulp Production Capacity 2009E in ktons 5,400 1 o ~ Twice The size Source: PÖYRY, 2007 / As for Market Pulp: Pulp and Paper Products Council (PPPC) 2009 and Fibria. (1) Market Share estimated considering 2009 nominal capacity. 10

Low Production Cash Cost DNA Fibria's Margin vc Macroeconomic Fundamentals (1) Cash Costs (2) Average Price BHKP (US$/ton) (1) 583 2,44 Exchange Rate Average (RS/US$) (1) 641 2,18 705 1,95 783 1,84 565 2,00 920 1,80 475 320 155 468 437 225 199 243 238 436 423 152 113 284 310 416 238 178 393 161 232 296 118 178 266 255 250 (3) 133 151 155 133 104 95 35% 38% 34% 37% 40% Iberia (2) Source: Hawkins Wright Estimate 2Q10 (3) Fibria 2Q10 Cash cost without downtimes EBITDA Margin 28% Hardwood Cash Cost (US$/t) vs Capacity (kt) US$/ton 600 2.196 500 EBITDA (R$ million) 1.697 400 Iberia 1.013 1.115 880 730 300 200 250 100 2005* 2006* 2007* 2008 Pro Forma (1) Average Price: FOEX Exchange rate: Brazilian Central Bank 2009 2Q10 0 0 2.000 4.000 6.000 8.000 10.000 12.000 Capacidade (kt) 11

Long Term Relationship With Key Clients Premium Paper Producers Value High Quality Pulp Customized Products Global Footprint Supplies customized pulp products to specific paper grades Uses of Fibria s Pulp 2Q10 Sole supplier to key customers focused on eucalyptus pulp to the tissue market Top 10 main customers represent on average 65% of sales Europe 38% Switzerland Specialty 21% 26% P&W 53% Tissue North America 27% Hungary Asia 24% Beijing Miami Hong Kong Sales Destination (1) Brazil 11% Headquarters Subsidiaries Representative offices Which Implies in Less Volatility in NY004GAK_1.wor Sales Volume Throughout Economic Cycles 1 Breakdown of sales destination in 2Q10. 12

Pulp and Paper Market 13

Positive Commodity Cycle and Demand Recovery World chemical market pulp shipments to capacity World P&W paper shipments to capacity 90% 88% 82% 88% 82% 78% 90% 79% 90% 92% 95% 86% 93% 90%91% 92% 89%89%89% 86% 94% 96% 92% 86% 94% 92% 89% 87% 97% 92% 85% 78% 76% 79%79% 77% 79%79% 78% 89% 87% 86% 81% 79% 88% 87%86% 87%87% 73% Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 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 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 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 Source: PPPC Global 100 Source: PPPC World 20 World pulp producers' average days of supply World pulp consumers' days of supply 60 35 50 30 40 30 25 20 10 25 20 15 19 Mar-05 Oct-05 May-06 Dec-06 Jul-07 Feb-08 Sep-08 Apr-09 Nov-09 Jun-10 Mar-05 Oct-05 May-06 Dec-06 Jul-07 Feb-08 Sep-08 Apr-09 Nov-09 Jun-10 Source: PPPC Global 100 Source: PPPC Global 100 14

Pulp Supply x Demand Balance Expected to Remain Tight Market pulp: world demand growth China: Eucalyptus pulp shipments ('000 t) 1% 12% 10% 19% 16% Average 235 ktons 246 264 196204 161 128 151 268 495 296 356 518 412 Average 347 ktons Average 238 ktons 340 355350363 331 293 266 280 276 267 235 251 210 191-26% Total North America Europe Latin America Japan China Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Out-08 Nov-08 Dec-08 Jan-09 Feb-09 9 Mar-09 9 Apr-09 9 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 9 Dec-09 0 Jan-10 0 Feb-10 Mar-10 Apr-10 May-10 Jun-10 6M2010 x 6M2009 Source: PPPC Global 100 Source: PPPC Global 100 Europe list price Announced list pulp price 950 850 750 650 550 840 888 Successive announcements of list price increases (as of August/2010) North America: US$900/t Europe: US$870/t Asia: US$800/t 450 350 Source: FOEX 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Aug/10 Source: Fibria 15

2Q10 Financials 16

2Q10 Performance Key figures Pulp sales mix 2Q10 1Q10 2Q09 2Q10 vs1q10 2Q10 vs2q09 2Q09 1Q10 2Q10 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% 37% 9% 21% 23% 11% 27% 24% 11% 27% Net Revenue (R$ million) 1,809 1,675 1,471 8% 23% 32% 39% 38% Adjusted EBITDA (R$ million) 730 637 389 15% 87% EBITDA Margin (%) 40% 38% 26% 2 p.p. 14 p.p. Financial Income (R$ million) (315) (341) 1.369 - - Net Income (R$ million) 130 9 920 1,341% -86% North America Europe Asia Brazil/Others Cash cost (R$/t) EBITDA (R$ million) and EBITDA Margin (%) 418 499 449 440 26% 38% 40% 637 730 389 Source: Fibria 1Q10 2Q10 2Q10 w/ 2010E downtimes 2Q09 1Q10 2Q10 17

Debt Debt indicators (R$ million) 2Q10 1Q10 2Q09 2Q10 vs 1Q10 2Q10 vs 2T09 Gross Debt 13,209 13,540 16,145-2% -18% Cash 2,364 2,684 2,953-12% -20% Average maturity (1) (months) 70 62 47 Net Debt / EBITDA (2) (x) 7.2 5.6 4.7 Net Debt 10,846 10,856 13,192 - -18% 2Q09 1Q10 2Q10 Jun-09 Mar-10 Jun-10 (1) Does not include the debt to former Aracruz shareholders (2) Last 12 months EBITDA Debt amortization schedule (R$ billion) Debt by currency and type 1.6 4.6 1.1 2.1 1.9 1.4 0.9 Short-term debt: from 34% in Jun/09 to16% in Jun/10 1.7 1.7 1.8 1.3 1.1 1.2 1.9 5.1 Gross debt by currency 71% 29% Gross debt by type 14% 13% 6% 3% 37% 27% 2009 2010 2011 2012 2013 2014 2015 2016-2020 Jun-09 (1) (2) Jun-10 Local Foreign Pre-payment Former Aracruz shareholders NCE Bonds BNDES Others (1) Amortization schedule as of Jun/2009 (2) Amortization schedule as of Jun/2010 18

Synergies Net Present Value of the synergies (R$ billion) 0.5 0.5 2Q10 status: 108% of the projected curve 2.0 1.4 2,3 3,4 4,2 4,3 4,5 Others Supply Chain 2% Industrial 21% 27% Tax 11% 23% 16% SG&A Forestry dec/09 2Q10 dec/10 2011 2012 2013 2014 Accumulated Estimated 19

Growth Capacity expansion (million t) Status of expansion projects 5.4 0.8 Veracel II 1.5 Três Lagoas II 1.5 Losango 1.5 10.7 Aracruz IV Três Lagoas II Capacity: 1.5 million tons Forest base: -TLS I surplus: 30,000 ha - Need: 150,000 ha - Leasing: 45,000 ha in 2010 Social-environmental licensing process initiated Feasibility study to start in 2011 Startup slated for 2014 Fibria 2010 Brownfield Brownfield Greenfield Brownfield Fibria 2025 Veracel II Capacity: 1.5 million tons Negotiations with partner in progress 20

Corporate Restructuring 21

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 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, 2010 22

23 Investor Relations Team: João Elek IRO André Gonçalves General Manager Fernanda Naveiro Vaz Anna Laura Linkewitsch Roberto Costa Email: ir@fibria.com.br 23