Demonstra

Fibria Celulose S.A.
Unaudited Consolidated Interim Financial Information at September 30, 2013 and Report on Review of Interim Financial Information
Report on review of interim financial information

To the Board of Directors and Shareholders Fibria Celulose S.A.
Introduction We have reviewed the accompanying consolidated interim accounting information of Fibria Celulose S.A., for the quarter ended September 30, 2013, comprising the balance sheet at that date and the statements of income, comprehensive income for the quarter and nine-month periods then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, and a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation of the consolidated interim accounting information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC) and International Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the consolidated interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim accounting information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34.
Other matters Statement of value added We have also reviewed the consolidated interim statement of value added for the nine-month period ended September 30, 2013. This statement is the responsibility of the Company's management, and is required to be presented in accordance with standards issued by the Brazilian Securities Commission (CVM) and is considered supplementary information under IFRS, which do not require the presentation of the statement of value added. This statement has been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that it has not been prepared, in all material respects, in a manner consistent with the consolidated interim accounting information taken as a whole.
So Paulo, October 21, 2013
PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5
Luciano Jorge Moreira Sampaio Junior Accountant CRC 1BA018245/O-1 "S" SP

Consolidated balance sheet at
In thousands of Reais
Assets Current Cash and cash equivalents (Note 6) Marketable securities (Note 7) Derivative financial instruments (Note 8) Trade accounts receivable, net (Note 9) Inventory (Note 10) Recoverable taxes (Note 11) Assets held for sale Other assets
September 30, 2013
December 31, 2012

(Restated)
January 1 , 2012
(Restated)
st
770,312 842,936 29,166 611,717 1,385,137 210,584 589,849 159,929 4,599,630
943,856 2,351,986 18,344 754,768 1,183,142 209,462 589,849 194,526 6,245,933
381,915 1,677,926 31,638 945,362 1,178,707 327,787 644,166 108,062 5,295,563
Non-current Derivative financial instruments (Note 8) Related parties receivables (Note 13) Deferred taxes (Note 12) Recoverable taxes (Note 11) Advances to suppliers Judicial deposits (Note 19) Other assets Investments (Note 14) Biological assets (Note 15) Property, plant and equipment (Note 16) Intangible assets (Note 17)
72,154 6,805 1,211,131 731,370 718,139 173,350 179,540 40,674 3,366,274 10,704,613 4,653,509 21,857,559
26,475 6,245 879,606 657,830 740,310 157,567 172,612 40,674 3,325,604 11,174,561 4,717,163 21,898,647 28,144,580
43,446 5,469 995,368 677,232 760,611 137,060 95,060 7,506 3,264,210 11,841,247 4,809,448 22,636,657 27,932,220
Total assets
26,457,189
4 of 52

Consolidated balance sheet at
In thousands of Reais (continued)
Liabilities and shareholders' equity Current Loans and financing (Note 18) Trade payables Payroll, profit sharing and related charges Taxes payable Derivative financial instruments (Note 8) Liabilities related to assets held for sale Dividends payable Other payables
September 30, 2013
December 31, 2012

(Restated)
January 1 , 2012
(Restated)
st
1,287,643 577,360 131,103 41,096 79,388 470,000 274 96,000 2,682,864
1,138,005 435,939 128,782 41,368 54,252 470,000 2,076 204,833 2,475,255
1,092,108 373,692 134,024 53,463 163,534 1,520 142,367 1,960,708
Non-current Loans and financing (Note 18) Derivative financial instruments (Note 8) Taxes payable Deferred taxes (Note 12) Provision for contingencies (Note 19) Other payables
8,198,963 388,547 79,274 176,362 84,919 185,034 9,113,099
9,629,950 263,646 77,665 227,923 104,813 194,521 10,498,518 12,973,773
10,232,309 125,437 76,510 739,878 101,594 163,096 11,438,824 13,399,532
Total liabilities Shareholders' equity Capital Capital reserves Treasury shares Statutory reserves Other reserves Accumulated losses Equity attributable to the shareholders of the Company Equity attributable to non-controlling interests Total shareholders' equity Total liabilities and shareholders' equity
11,795,963
9,729,006 2,688 (10,346 ) 3,815,703 1,596,666 (519,417) 14,614,300 46,926 14,661,226 26,457,189
9,729,006 2,688 (10,346 ) 3,815,584 1,596,666
8,379,397 2,688 (10,346) 4,520,290 1,611,837
15,133,598 37,209 15,170,807 28,144,580
14,503,866 28,822 14,532,688 27,932,220
The accompanying notes are an integral part of these unaudited consolidated interim financial information. 5 of 52

Unaudited consolidated statement of income
In thousand of Reais, except for the income (loss) per share
September 30, 2013
September 30, 2012
Net revenue (Note 21) Cost of sales (Note 23) Gross profit Operating expenses Selling expenses (Note 23) General and administrative (Note 23) Equity in the losses of associate Other operating expenses, net (Note 23)
4,959,655 (3,909,888) 1,049,767
4,320,991 (3,758,005) 562,986
(252,681) (211,912) (1,299) (465,892)
(225,420) (208,260) (320) 217,372 (216,628) 346,358 136,485 (742,862) (152,949) (676,521) (1,435,847) (1,089,489)
Income (loss) before financial income and expenses Financial income (Note 22) Financial expenses (Note 22) Results of derivative financial instruments (Note 22) Foreign exchange gains (Note 22)
583,875 87,120 (851,886) (112,666) (577,353) (1,454,785)
Income before taxes on income Taxes on income Current (Note 12) Deferred (Note 12) Losses for the period Attributable to Shareholders of the Company Non-controlling interests Losses for the period Basic and diluted losses per share - (in Reais) (Note 24)
(870,910)
(27,351) 386,156 (512,105)
(14,527) 357,647 (746,369)
(519,417) 7,312 (512,105) (0.938)
(751,530) 5,161 (746,369) (1.458)
The accompanying notes are an integral part of these unaudited consolidated interim financial information.
6 of 52

Unaudited consolidated statement of comprehensive income
In thousand of Reais, except for the income (loss) per share
September 30, 2013
September 30, 2012
Losses for the period Other comprehensive losses for the period Total comprehensive losses for the period
(512,105)
(746,369)
(512,105)
(746,369)
Attributable to: Shareholders of the Company Non-controlling interests
(519,417) 7,312
(751,530) 5,161
7 of 52
Unaudited statement of changes in shareholders' equity
In thousands of Reais, unless otherwise indicated
Other reserves
Statutory reserves
Capital 2,688 (6,987 ) 2,688 (10,346 ) 1,611,837 303,800 4,216,490 (751,530 ) (11,771 ) (11,771 ) (11,771 ) (15,171 ) (11,771 ) 2,688 (10,346 ) 1,596,666 303,800 3,511,784 (519,417 ) 119 2,688 (10,346 ) 1,611,837 303,800 2,688 (10,346 ) 1,611,837 303,800 4,216,490 3,511,784 (751,530 ) (10,346 ) 1,618,824 303,800 4,216,490 14,510,853 (6,987 ) 14,503,866 (751,530 ) 1,361,380 (11,771 ) 15,101,945 15,148,769 (15,171 ) 15,133,598 (519,417 ) 119
Capital Transaction costs of the capital increase Capital reserve Legal Investments Total Treasury shares Other comprehensive income Accumulated losses
Noncontrolling interest 28,822
Total 14,539,675 (6,987 ) 28,222 5,161 3,336 14,532,688 (746,369 ) 1,364,716 (11,771 ) 37,319 37,209 15,139,264 15,185,978 (15,171 ) 37,209 7,312 2,405 15,170,807 (512,105 ) 119 2,405
As at January 1, 2012
8,379,397
Impact of the adoption of CPC 33(R1), net of deferred taxes
As at January 1, 2012 - adjusted
8,379,397
Total loss Net income (loss) for the period Transactions with shareholders Capital increase Transaction costs
1,361,380
As at September 30, 2012
9,740,777
As at January 1, 2013
9,740,777
Impact of the adoption of CPC 33(R1), net of deferred taxes
As at January 1, 2013 - adjusted
9,740,777
Total income Net income (loss) for the period Reversal of dividends Capital increase of non-controlling interest Portocel (11,771 ) 2,688 (10,346 ) 1,596,666 303,800
As at September 30, 2013
9,740,777
3,511,903
(519,417 )
14,614,300
46,926
14,661,226
8 of 52

Unaudited consolidated statement of cash flow
In thousand of Reais
September 30, 2013 Losses before taxes on income Adjusted by Depreciation, depletion and amortization Depletion of wood from forestry partnership programs Unrealized foreign exchange (gains) losses, net Change in the fair value of derivative financial instruments Equity in the losses of associate Losses on disposals of property, plant and equipment Interest and gains and losses on marketable securities Interest expenses Change in fair value of biological assets Financial charges on Bonds partial repurchase transactions Impairment of recoverable ICMS Tax credits Reversal of provision for contingencies Provisions and other Decrease (increase) in assets Trade accounts receivable Inventory Recoverable taxes Other assets/advances to suppliers (Decrease) increase in liabilities Trade payables Taxes payable Payroll, profit sharing and related charges Other payables Cash provided by operating activities Interest received Interest paid Income taxes paid Net cash provided by operating activities Cash flow from investment activities Acquisitions of property, plant and equipment, intangible assets and forests Advances for wood acquisition from forestry partnership program Marketable securities, net Proceeds from sales of property, plant and equipment Advances received from the disposal of assets Derivative transactions settled (Note 8) Other Net cash provided by (used in) investment activities (870,910)
September 30, 2012 (1,089,489)
1,266,597 90,821 577,353 112,666 27,349 (70,903 ) 438,315 (36,100 ) 343,413 69,301 (13,531 ) (14,250 ) 22,554 180,134 (141,937 ) (121,270 ) (69,676 ) 129,013 751 2,320 (77,891 ) 1,844,119 117,964 (477,529 ) (20,477 ) 1,464,077
1,259,356 79,816 676,521 152,949 320 (1,408) (118,317) 516,814 (265,798) 150,917 63,333 68,848 238,799 (64,592) 7,127 3,067 18,143 (32,708) (2,374) (46,701) 1,614,623 110,385 (471,908) (4,121) 1,248,979
(872,727 ) (68,650 ) 1,477,186 47,441 (19,129) 554 564,675
(745,370) (66,146) (326,080) 20,805 200,000 (110,426) 199 (1,027,018)
9 of 52

Unaudited consolidated statement of cash flows
In thousand of Reais (continued)
Cash flow from financing activities Borrowing Repayments - principal amount Net of capital increase Premiums paid on partial Bonds repurchase transaction Other Net cash provided by (used in) financing activities Effects of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
1,142,715 (3,102,460) (230,735) 1,348 (2,189,132) (13,164 ) (173,544 ) 943,856 770,312
661,759 (1,973,494) 1,343,546 (62,158) 2,448 (27,899) 66,554 260,616 381,915 642,531
10 of 52

Unaudited consolidated statement of value added
In thousand of Reais
September 30, 2013 Revenue Gross sales Provision for trade receivables Revenue relating to the construction of own assets and other
September 30, 2012
5,057,029 1,300 799,186 5,857,515
4,420,791 905,884 5,326,675
Inputs acquired from third parties Cost of sales Materials, energy, outsourced services and other
(2,845,224) (335,592) (3,180,816)
(2,567,150) (301,223) (2,868,373) 2,458,302
Gross value added Retentions Depreciation and amortization Depletion of wood from forestry partnership programs Net value added generated from operations Value added received through transfer Equity in the results of investees Finance income
2,676,699
(1,266,597) (90,821) 1,319,281
(1,259,356) (79,816 )
1,119,130
760,513 760,513
(320) 788,719 788,399 1,907,529
Total value added for distribution Distribution of value added Personnel and social charges Direct compensation Benefits to employees Government Severance Indemnity Fund for Employees (FGTS) Taxes and contributions Federal State Municipal Interest, foreign exchange, rentals and leases Losses for the period Non-controlling interests Value added distributed
2,079,794
429,836 330,855 79,670 19,311 (146,283) (234,213) 61,523 26,407 2,308,346 (519,417) 7,312 2,079,794
420,560 319,440 79,645 21,475 (89,344) (175,234) 63,775 22,115 2,322,682 (751,530) 5,161 1,907,529
11 of 52

Notes to the unaudited consolidated interim financial information at September 30, 2013
1 (a)
Operations and current developments General information Fibria Celulose S.A. is incorporated under the laws of the Federal Republic of Brazil, as a publicly-held company. Fibria Celulose S.A. and its subsidiaries are referred to in these interim financial information as the "Company", "Fibria", or "we". We have the legal status of a share corporation, operating under Brazilian corporate law. Our headquarters and principal executive office is located in So Paulo, SP, Brazil. We are listed on the stock exchange of So Paulo (BM&FBOVESPA) and the New York Stock Exchange (NYSE) and we are subject to the reporting requirements of the Brazilian Comisso de Valores Mobilirios (CVM) and the United States Securities and Exchange Commission (SEC). Our activities are focused on the growth of renewable and sustainable forests and the manufacture and sale of bleached eucalyptus kraft pulp. We operate in a single operational segment, which is the producing and selling of short fiber pulp. Our bleached pulp is produced from eucalyptus trees, resulting in a variety of high quality hardwood pulp with short fibers, which is generally used in the manufacture of toilet paper, uncoated and coated paper for printing and writing, and coated cardboard for packaging. We use different energy sources including thermal and electric, including black liquor, biomass derived from wood debarking, bark and scraps. Our business is affected by global pulp prices, which are historically cyclical and subject to significant volatility over short periods. The most common factors that affect global pulp prices are: (i) global demand for products derived from pulp, (ii) global production capacity and the strategies adopted by the main producers, (iii) availability of substitutes for these products and (iv) fluctuations on US dollar. All of these factors are beyond our control. In 2012, we established a strategic alliance with Ensyn Corporation ("Ensyn"), to leverage our forestry expertise and our competitive position in Brazil to develop alternatives with high value aggregated to complement our global leadership position and excellence in the production of pulp. We believe that the combination of our expertise and Ensyn's technology can generate a relevant business in the biofuels segment in the future.
(b)
Operational facilities and forest base The Company operates the following manufacturing facilities as at September 30, 2013 to produce bleached eucalyptus kraft pulp with a total annual capacity of approximately 5.3 million tons:
Pulp production facility Aracruz Trs Lagoas Jacare Veracel (*) Annual production capacity - tons 2,340,000 1,300,000 1,100,000 560,000 5,300,000
Location (Brazil) Esprito Santo Mato Grosso do Sul So Paulo Bahia
12 of 52

(*) Represents 50% of the annual production capacity of Veracel's pulp mill, consistently with our portion of the results, representing 50% of the operations of Veracel in our consolidated statement of operations.
Fibria produces hardwood pulp from plantations of eucalyptus trees (referred to as forests), with an average extraction cycle of between six and seven years. These forests are located in six Brazilian States, consisting of approximately 966 thousand hectares, including reforested and protected areas, as follow (in thousands of hectares): Area of forest State So Paulo Minas Gerais Rio de Janeiro Mato Grosso do Sul Bahia Esprito Santo Total area
78,171 13,326 1,636 226,592 134,760 104,222 558,707
144,955 27,353 3,367 346,289 264,002 180,101 966,067
The forest base of the Losango project in the State of Rio Grande do Sul is excluded from the above table, as these assets qualify as assets held for sale, and are being presented as such, as detailed in item (d)(i) of Note 35 to the most recent annual financial statements. (c) Logistics The pulp produced for export is delivered to customers by means of sea vessels on the basis of long-term contracts with the owners of these vessels. Fibria has four long-term contracts with the South Korean company STX Pan Ocean (STX) valid for a period of 25 years. This operator has a dedicated fleet of 20 sea vessels, having the capacity to transport 54 thousand tons of pulp each, to be delivered until 2015. However, three of these contracts which predicted the delivery of 15 sea vessels are in process of termination, due to STXs financial difficulties. Regarding the remaining contract, four sea vessels have been delivered to us and are operating and another sea vessel will be delivered to us until December 2013. These vessels are dedicated to optimize the Companys international logistics and ensure its operational stability and competitiveness. Independently of the termination of the three contracts mentioned above, the exports of pulp and the related logistics costs should not be impacted, since the Company has contracts of affreightment with other logistics companies, which will be able to meet the export demand. The company operates in two ports, Santos and Barra do Riacho. The port of Santos is located on the coast of the State of So Paulo and seeps the pulp produced in the Jacare and Trs Lagoas plants. The port is operated under a concession from the Federal Government, through the Companhia Docas do Estado de So Paulo (CODESP). The port of Barra do Riacho is a port specializing in the transportation of pulp, located about three kilometers from the Aracruz unit, in the State of Esprito Santo, and seeps the pulp produced in the Aracruz and Veracel plants. This port is operated by Portocel - Terminal Especializado Barra do 13 of 52

Riacho S.A . ("Portocel") - a company controlled by Fibria (which has a 51% interest in its share capital). Portocel operates with the authorization of the federal government, through a contract signed on November 14, 1995. The concession period of one of the terminals at the port of Santos ends in 2017. However, we are looking for alternative means of shipping the pulp produced, in order to maintain our export capacity in the long term. (d) Current assets held for sale During the year 2012, the Company approved the sale of certain Cash Generating Units (CGUs) and of certain assets, as presented in the following table:
Classification for accounting purposes Assets held for sale Assets held for sale Date when classified for accounting purposes June 2011 March 2012 Date when the sale was consummated Not yet consummated December 2012
CGU/Asset . Losango project assets . Forests and land located in the south of Bahia State
Reference Note 1(d)(i) Note 1(d)(ii)
(i)
Losango project assets On June 30, 2011, we decided to classify as held for sale the assets related to the Losango project assets, comprising approximately 100 thousand hectares of land owned by Fibria and approximately 39 thousand hectares of planted eucalyptus and leased land, all located in the State of Rio Grande do Sul. On December 28, 2012, the Company and CMPC Celulose Riograndense Ltda. ("CMPC") signed the definitive Purchase and Sale Agreement for the sale of all of the Losango project assets. The transaction was approved by the Conselho Administrativo de Defesa Econmica (CADE), the competition authority, and on this date the first installment of the purchase price, amounting to R$ 470 million, was paid to us. The second installment, amounting to R$ 140 million, was deposited in an escrow account and will be released to us once additional government approvals are obtained. The final installment of R$ 5 million is payable to us upon the completion of the transfer of the existing land lease contracts for the assets, and the applicable government approvals. The sale and purchase agreement establishes a period of 48 months, renewable at the option of CPMC for an additional 48 months, to obtain the required government approvals. If this approval is ultimately not obtained, we will be required to return to CMPC the first installment it paid to us, plus interest, and the escrow deposits made by CMPC will revert. We have recorded the amount of the first installment received as a liability under "Advances received in relation to assets held for sale". Since the signing of the Purchase and Sale Agreement with CMPC, we have been working to obtain the approvals needed, as well as the fulfillment of all other conditions precedent, with an emphasis on obtaining the documentation to be presented to the applicable government agencies. The completion of the sale depends on these government approvals, the assets continue to be classified as assets held for sale as at September 30, 2013, and will remain so until the sale is completed. Upon classification as assets held for sale, the carrying amounts of the assets held for sale (all of which are 14 of 52

non-current) were compared to their estimated fair values less cost of sale, and no impairment losses were identified. The Losango assets did not generate any significant results in the nine months ended September 30, 2013 and 2012. (ii) Forests and land located in the south of Bahia On March 8, 2012, as part of our strategy to strengthen our capital structure, we entered into a binding agreement with Fundo Florestas do Brasil (the "Fund"), through its subsidiary Caravelas Florestal S.A., for the sale of certain forests and land located in the south of the State of Bahia, consisting of 16,152 hectares of eucalyptus forests for timber and pulp, with an average annual production of 660 cubic meters of wood. On June 29, 2012, Fibria signed a sale and purchase agreement for these assets, at a total amount of R$ 235 million. A cash payment of R$ 200 million was received as an advance on the same date. On December 7, 2012, the transaction was completed upon the purchaser signing an acceptance notice. As result of the due diligence process conducted by the purchaser, the sale price was adjusted to R$ 210 million. The remaining balance of R$ 10 million will be received by the Company until December 2013 and is recorded under "Other receivables" in current assets. The amount of R$ 19,551 was recognized in the statement of profit and loss in the last quarter of 2012, of which further details are presented in Note 35 to the most recent annual financial statements. (e) Change in the international corporate structure In November 2011, management approved, subject to certain conditions, a project for the corporate restructuring of our international activities. The transfer of the current commercial, operational, logistical, administrative and financial operations of Fibria Trading International KFT to another subsidiary, named Fibria International Trading GmbH, was performed on July 1st, 2013. This international corporate reorganization and restructuring has different stages, and its total completion is expected to be completed by December 2015. However, the implementation of the steps of the planned total restructuring depends on the approval from the local authorities of each country involved. (f) Incorporated Company without effect on the consolidated interim financial information On September 30, 2013, the subsidiary Normus Empreendimentos e Participaes Ltda. (Normus) was incorporated by the Company. The Company held a 100% interest in Normus, which was located in Brazil. With this the indirect subsidiaries Fibria International Trading GmbH, Fibria Overseas Holding KFT and Fibria International Celulose GmbH(1) were considered as direct subsidiaries of the Company.
(1) Company in
the pre-operating phase, incorporated in July 2013, with its headquarter located in Austria.
Presentation of consolidated interim financial information 15 of 52

and summary of significant accounting policies 2.1 (a) Consolidated interim financial information - basis of preparation Accounting policies used The consolidated interim financial information has been prepared and is being presented in accordance with IAS 34 and CPC 21(R1) - Interim Financial Reporting issued by the International Accounting Standards Board (IASB) and the Accounting Statements Committee Standards (CPC), approved by the Brazilian Securities and Exchange Commission (CMV). The consolidated interim financial information should be read in conjunction with the financial statements for the year ended December 31, 2012, considering that its purpose is to provide an update on the activities, events and significant circumstances in relation to those presented in the annual financial statements. From January 1, 2013, the companies Veracel Celulose S.A., Asapir Produo Florestal e Comrcio Ltda. and VOTO Votorantim Overseas Trading Operations IV Limited met the definition of joint operations under IFRS 11 and CPC 19(R2) - Joint Arrangements, and are classified accordingly, meaning that the balance of the assets, liabilities, revenue and expenses should be accounted for by the entities participating in the joint operation proportionally to their ownership stakes. The changes in the classification of the companies as joint operations did not impact the consolidated balances of the Company compared to the proportional consolidation method allowed by the standard until December 31, 2012. The current accounting practices, which include the measurement principles for the recognition and valuation of the assets and liabilities, the calculation methods used in the preparation of this interim financial information and the estimates used, are the same as those used in the preparation of the most recent annual financial statements, except to the extent disclosed in Note 3. (b) Approval of the interim financial information The consolidated interim financial information was approved by Management on October 21, 2013. 2.2 Critical accounting estimates and assumptions Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates will seldom equal the related actual results. In the nine months ended September 30, 2013, there were no significant changes in the estimates and assumptions which are likely to result in significant adjustments to the carrying amounts of assets and liabilities during the next financial year, compared to those disclosed in Note 3 to our most recent annual financial statements. 3 Adoption of new standards, amendments and interpretations issued by IASB and CPC
16 of 52

A number of new standards and amendments to standards and interpretations were issued by the IASB and CPC, and are effective for annual periods beginning as from January 1, 2013, as follow: IAS 1/CPC 26(R1) - Presentation of financial statements IAS 19/CPC 33(R1) - Employee benefits IAS 28/CPC 18(R2) - Investments in associates IFRS 11/CPC 19(R2) - Joint Arrangements IFRS 12/CPC 45 - Disclosure of interest in other entities IFRS 9/CPC 38 - Financial instruments IFRS 10/CPC 36(R3) - Consolidated financial statements IFRS 13/CPC 46 - Fair value measurement
As a result of the new standards, amendments and interpretations issued by the IASB and the CPC mentioned above, are applicable to us: IFRS 11/CPC 19(R2) - Joint Arrangements, with the effect described in Note 2.1 (a); IFRS 13/CPC 46 - Fair value measurement, with impacts of disclosure in the annual financial statements; and, IAS 19/CPC 33(R1) - Employee benefits, with the effect described below: IAS 19 / CPC 33(R1) Employee benefits It was the Companys practice, up to December 31, 2012 to book actuarial gains and losses using the corridor method, and such actuarial gains and losses were recognized in the income statement if they exceeded the corridor carrying amount, and amortized over the remaining estimated average life of the people which have the benefit, considering that the actuarial gains and losses do not exceed the corridor amount; therefore, the gains and losses measured were not immediately recognized. As its method outcome the carrying amount recognized as liabilities differed from the estimated present carrying amounts of obligations by actuarial gains and losses carrying amounts are not yet recognized. The main impact of the adoption of this standard on the interim financial information for the nine months ended September 30, 2013, with retrospective effect on the financial statements for the year ended December 31, 2012, and the respective opening balances as at January 1, 2012, are as follow: (a) to immediately recognize all actuarial gains and losses directly in Other comprehensive income, with the extinction of the corridor method for the recognition of actuarial gains and losses resulting from re measurement, (b) to replace the interest costs and expected return on plan assets with a net interest amount calculated by applying the discount rate to the net defined benefit liability (asset), which should increase the cost of the plan. However, this situation did not have any impact on the Company, due to the fact that we do not have any plan assets. The reconciliation of the adjusted actuarial obligations as at December 31, 2012 and the opening balance as at January 1, 2012, impacted by the adoption, are as follow:
17 of 52

December 31, 2012 Present value of actuarial obligations from previous accounting practices Impact of the adoption of CPC 33(R1) Present value of actuarial obligations after adoption (*)
January 1st, 2012
60,362 33,572 93,934
55,715 10,587 66,302
(*) The actuarial obligation is recorded as non-current Other payables, on the interim financial information at September 30, 2013 and in the December 31, 2012 financial statements and the opening balance as at January 1st, 2012.
As a result of the adjustments described above, the accounting balances of Deferred taxes classified as non-current assets, Other payables classified as non-current liabilities and Other reserves in shareholders equity as at December 31, 2012 and January 1st, 2012, regarding the comparative period for this interim financial information, were adjusted as follow:
December 31, 2012 Original balance Non-current assets Deferred assets Non-current liabilities Other payables Shareholders equity Other reserves Adjustment Adjusted balance Original balance January 1st, 2012 Adjustment Adjusted balance
868,192 160,949 1,618,824
11,414 33,572 (22,158)
879,606 194,521 1,596,666
991,768 152,509 1,618,824
3,600 10,587 (6,987)
995,368 163,096 1,611,837
Risk management The risk management policies and financial risk factors disclosed in the annual financial statements (Note 4) did not show any significant changes. The Companys financial liabilities which present liquidity risk are presented below by maturity (Note 4.1), exchange risk exposure (Note 4.2), capital risk management position, including indexes ratios of financial leverage (Note 4.3) and sensitivity analysis (Note 5).
4.1
Liquidity risk The table below classifies Fibria's financial liabilities into the relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table represent the contracted cash flow amounts, discounted, and as such they differ from the amounts presented in the consolidated balance sheet.
18 of 52

Less than one year At September 30, 2013 Loans and financing Derivative financial instruments Trade and other payables
Between one and two years
Between two and five years
Over five years
1,646,326 65,765 672,296 2,384,387
1,542,466 102,300 26,382 1,671,148
4,350,014 390,163 20,729 4,760,906
4,430,222 144,302 38,475 4,612,999
At December 31, 2012 Loans and financing Derivative financial instruments Trade and other payables
1,739,139 44,853 564,172 2,348,164
2,881,125 50,739 54,234 2,986,098
4,163,566 246,710 14,516 4,424,792
5,878,870 117,785 31,452 6,028,107
At January 1st, 2012 Loans and financing Derivative financial instruments Trade and other payables
1,636,635 134,886 516,061 2,287,582
2,723,403 6,321 47,197 2,776,921
3,919,605 104,913 14,516 4,039,034
7,916,925 16,099 35,081 7,968,105
4.2
Foreign exchange risk The following table presents the carrying amounts of the assets and liabilities denominated in foreign currency:
September 30, 2013 Assets in foreign currency Cash and cash equivalents (Note 6) Marketable securities (Note 7) Trade accounts receivable (Note 9) December 31, 2012 January 1st, 2012
759,832 65,981 600,051 1,425,864
891,046 432,706 714,142 2,037,894
318,926 916,391 1,235,317
Liabilities in foreign currency Loans and financing (Note 18) Trade payables Derivative financial instruments (Note 8)
6,968,966 102,812 366,615 7,438,393
8,542,851 105,194 273,079 8,921,124 (6,883,230)
9,230,592 35,676 213,887 9,480,155 (8,244,838)
Liability exposure
(6,012,529)
19 of 52

4.3
Capital risk management Management monitors indebtedness on the basis of a consolidated indebtedness ratio. This ratio is calculated as net debt divided by net income before interest, income taxes including social contribution, depreciation and amortization and other items as further described below ("Adjusted EBTIDA"). This is part of our strategy of reducing indebtedness and maintaining an appropriate level of leverage in accordance with our internal policies, as presented in the most recent annual financial statements in Note 4.2. Net debt represents total loans and financing, less cash and cash equivalents and marketable securities and the fair value of derivative financial instruments. The indebtedness ratios at September 30, 2013, December 31, 2012 and January 1st, 2012 were as follow (measured in Reais): September 30, 2013 Loans and financing (Note 18) Less - cash and cash equivalents (Note 6) Plus - derivative financial instruments (Note 8) Less - marketable securities (Note 7) Net debt Adjusted EBITDA (last twelve months) Indebtedness ratio in reais 9,486,606 770,312 (366,615) 842,936 8,239,973 2,726,172 3.0 December 31, 2012 10,767,955 943,856 (273,079) 2,351,986 7,745,192 2,253,326 3.4 January 1st, 2012 11,324,417 381,915 (213,887) 1,677,926 9,478,463 1,981,031 4.8
The indebtedness ratio decreased from 3.4 on December 31, 2012 to 3.0 at September 30, 2013, due to increments of EBITDA and the decrease of loans and financing, due to the early payments made in the period, with reflect on the cash and cash equivalents and marketable securities. From June 2012 debt-related financial covenants including the indebtedness ratio are measured in US Dollars, as further described in Note 23 to the most recent annual financial statements. Since the above ratios used for the periods presented are measured in Reais, there are likely to be differences between the ratios presented above and the ratios measured in compliance with the debt covenant requirements. The Company continues to focus on actions including reductions in fixed and variable costs, selling expenses, capital expenditure and improvements in working capital. We have also focused on actions that may result in the additional liquidity of non-strategic assets. These actions are intended to strengthen the capital structure of the Company, resulting in an improved Net Debt to Adjusted EBITDA ratio. 5 Sensitivity analysis The analysis below presents the sensitivity analysis of the effects of changes in the relevant risk factors to which the Company is exposed at the end of the period. Management believes that it is a reasonably likely scenario that the exchange rate between the US Dollar and the Real will reach R$ 2.30, and that changes will be observed in the pulp price over a three month period in line with current market 20 of 52

expectations and historical changes in the prices of pulp.
Instruments denominated in foreign currency - mainly in US Dollars Loans and financing Cash, cash equivalents and marketable securities Derivative financial instruments Accounts receivable Accounts payable Total of estimated impact
Scenario Depreciation of 3.14% of the Real against the US Dollar compared to the Ptax rate as at September 30, 2013 from R$ 2.23 to R$ 2.30
Impact on income (expense) in Reais (208,843) 25,992 (105,906) 18,836 (3,227) (273,148)
As shown above, the depreciation of the Real against the US Dollar, considering the closing rate and the balance of financial instruments as at September 30, 2013, would lead to a increase in the liabilities recognized in the balance sheet and a corresponding loss of approximately R$ 273,148. In this projected scenario, compared to the average exchange rate of R$ 2.1181 observed during the period, net revenue would have increased by 8.3%, representing an approximate amount of R$ 409 million given the volume and sales prices for the nine months ended September 30, 2013. According to CVM Decision No. 550/08, the following table presents the changes in the fair values of derivative financial instruments, loans and financing and marketable securities, in two adverse scenarios, that could generate significant losses for the Company. The probable scenario was stressed, considering additions of 25% and 50% to the probable scenario of R$ 2.30 per US Dollar:
Impact of the appreciation of the Real against the US Dollar on the fair value Probable R$ 2,30 Derivative financial instruments Loans and financing Marketable securities Total impact (105,906) (208,843) 25,992 (288,757) Possible (25%) R$ 2,875 (958,204) (1,924,335) 238,856 (2,643,683) Remote (50%) R$ 3,45 (2,004,409) (3,639,827) 451,790 (5,192,446)
Cash and cash equivalents Average September 30, December 31, yield - % 2013 2012 Cash and banks Foreign currency Fixed-term deposits CDB Cash and cash equivalents 83,205 687,107 770,312 52,810 891,046 943,856 January 1st, 2012 62,989 318,926 381,915
CDBs are highly liquid, readily convertible into a known amount of cash and subject to an immaterial 21 of 52

risk of changes of value if early redemption is requested. During the nine months ended September 30, 2013 there were no relevant changes compared to the information presented in the most recent annual financial statements (Note 9). 7 Marketable securities Marketable securities include financial assets classified held for trading as follow: September 30, December 31, 2013 2012 Brazilian federal government securities, including under reverse repurchase agreements LFT LTN NTN-F Other Private securities including securities under reverse repurchase agreements Reverse repurchase agreements CDB CDB Box RDB - fixed interest rate In foreign currency Private securities including securities under reverse repurchase agreements Time deposits Marketable securities January 1st, 2012
109,330 182,146 46,718
268,984 111,907 186,374
208,602 149,730 4,666
214,326 223,450 985
766,281 584,734 1,000
1,282,236 31,750 942
65,981 842,936
432,706 2,351,986 1,677,926
Private securities are mainly composed of short term investments in CDBs and reverse repurchase agreements, and bear interest based on the Interbank Deposit Certificate (CDI) interest rate. Government securities are composed of National Treasury Bills and Notes all issued by the Brazilian federal government. The average yield of marketable securities in the nine months ended September 30, 2013 was 102.14% of the CDI (102.66% of the CDI as at December 31, 2012 and 102.47% of the CDI as at January 1, 2012). Securities in foreign currency mainly represent time deposits with maturities longer than 90 days and average remuneration of 0.99% p.a. The decrease in the balance during the nine months ended September 30, 2013 was, mainly, related to the early payments made by Fibria on loans and financing during the period, as described in Note 18(e) to this report.
22 of 52

Derivative financial instruments The following tables present the Companys derivative instruments, segregated by type, presenting both the asset and liability positions of the swap contracts, the fair value and paid by hedge strategy adopted, and also the maturity schedule based on their contractual maturities.
(a)
Derivative financial instruments by type

Reference value (notional) in US Dollars Type of derivative September 30, 2013 December 31, 2012 January 1st, September 30, 2012 2013 December 31, 2012 Fair value January 1st, 2012
NDF (US$) (*) Swap JPY x US$ (JPY) Swap DI x US$ (US$) Swap LIBOR x Fixed (US$) Swap TJLP x US$ (US$) Swap Pre x US$ (US$) Zero cost collar (*)
170,000 427,514 571,235 294,249 283,801 912,000 306,226 564,012 349,860 97,737 410,000
921,900 45,000 233,550 227,891 416,478 41,725 162,000
(26,432) (106,175) 12,305 (199,276) (60,226) (13,243) (366,615) (78,345) (8,145) (148,123) (13,205) 1,171 (273,079) 18,344 26,475 (54,252) (263,646) (273,079)
(134,206) 27,804 11,373 (10,655) (92,165) (9,084) (6,954) (213,887) 31,638 43,446 (163,534) (125,437) (213,887)
Classified In current assets In non-current assets In current liabilities In non-current liabilities Total, net
29,166 72,154 (79,388) (388,547) (366,615)
(*) There was a reduction in the notional NDFs which were offset by the increase in the notional zero cost collar. Considering the current scenario for the volatility of the Dollar, these operations have remained more attractive than the NDFs.
23 of 52

(b)
Derivative financial instruments by type and broken down by the nature of the exposure (asset and liability exposure for swaps)
Reference value (notional) in currency of origin Type of derivative September 30, 2013 December 31, 2012 January 1, 2012 September 30, 2013 December 31, 2012 Fair value January 1, 2012
Future contracts - NDF Cash flow hedge (US$) Swap contracts Asset JPY fixed rate (JPY to USD) USD LIBOR (LIBOR to fixed) BRL fixed rate (BRL to USD) BRL TJLP (BRL to USD) BRL Pre (BRL to USD) Liability USD fixed rate (JPY to USD) USD fixed rate (LIBOR to fixed) USD fixed rate (BRL to USD) USD fixed rate (BRL TJLP to USD) USD fixed rate (BRL to USD) Total of swap contracts Options Cash flow hedge - zero cost collar 912,000
170,000
921,900
(26,432)
(134,206)
571,235 830,945 478,371 579,576 571,235 427,514 294,249 283,801
564,012 551,195 569,708 183,427 564,012 306,226 349,861 97,737
4,754,615 227,891 399,370 679,784 66,468 45,000 227,891 233,550 416,478
1,275,088 1,024,005 456,917 465,289 (1,262,783) (1,130,180) (656,193) (525,515) (353,372) (13,243)
1,153,420 706,349 572,177 170,934 (1,161,565) (784,694) (720,300) (184,139) (247,818) 1,171
136,077 427,843 514,257 611,091 64,391 (108,273) (438,498) (502,884) (703,256) (73,475) (72,727) (6,954) (213,887)
41,725
410,000
162,000 (366,615)
(273,079)
(c)
Derivative financial instruments by type of economic hedging strategy

Fair value Type of derivative Operational hedges Cash flow hedges of exports Hedges of receivables from the sale of investments Hedges of debts Hedges of interest rates Hedges of foreign currency
September 30, 2013 December 31, 2012
Value (paid) or received

December 31, 2012
January 1st, September 30, 2012 2013
(13.243)
(25,261)
(141,160)
(14.554)
(151,109)
12.304 (365.676) (366.615)
(8,145) (239,673) (273,079)
(10,655) (62,072) (213,887)
(8.181) 3.606 (19.129)
(8,743) 33,484) (126,368)
24 of 52

(d)
Fair value of derivative financial instruments by maturity date and counterparty The following tables present information about derivative financial instruments grouped by maturity and counterparty. The following table presents the fair values by month of maturity:
September 30, 2013 2013 January February March April May June July August September October November December 2014 (3,757) (6,711) (3,834) (5,264) (8,355) (6,961) (2,645) (5,507) (2,575) (4,327) (6,554) (6,847) (63,337) 2015 (4,882) (7,290) (4,235) (5,743) (8,015) (8,110) (5,117) (7,328) (10,126) (5,434) (7,546) (7,655) (81,481) 2016 (4,257) (5,655) (3,008) (3,956) (5,792) (6,609) (2,765) (4,479) (8,913) (2,874) (4,521) (5,364) (58,193) 2017 (3,132) (4,551) (3,101) (3,384) (4,641) (5,726) (478) (2,254) (40,458) (3,124) (2,193) (3,494) (76,536) 2018 (584) 2,095 (1,078) (863) 139 (1,228) (1,167) (14,291) (22,724) (1,303) (182) (1,345) (42,531) 2019 (1,386) 362 (1,452) (1,472) (994) (1,531) (1,562) (15,728) 2020 312 Total (17,998) (21,438) (16,708) (20,682) (27,658) (30,165) (13,734) (66,058) (84,796) (17,883) (24,372) (25,123) (366,615)
(16,471)
(821) (3,376) (418) (4,615)
(23,763)
(16,159)
December 31, 2012 2013 January February March April May June July August September October November December (11,875) (10,120) (2,092) (3,195) (1,873) 93 (1,058) (1,965) 770 (1,459) (1,813) (1,320) (35,907) 2014 (2,652) (3,188) (1,856) (3,095) (3,590) (3,578) (3,453) (3,993) (2,111) (3,791) (4,189) (4,546) (40,042) 2015 (4,065) (4,586) (2,784) (4,511) (4,915) (5,154) (3,852) (4,176) (7,304) (3,980) (4,228) (4,465) (54,020) 2016 (4,067) (3,882) (2,403) (3,932) (3,952) (4,499) (3,077) (2,969) (6,637) (3,202) (3,051) (3,567) (45,238) 2017 (3,311) (2,976) (2,238) (3,420) (2,987) (3,674) (1,683) (1,231) (27,668) (1,722) (1,288) (1,818) (54,016) 2018 1,651 (80) 15 628 (116) (9,170) (15,716) 500 (22,288) (9,665) (11,903) 2019 1,096 279 (11,040) (12,195) 2020 292 Total (25,970) (21,713) (11,453) (18,138) (16,410) (16,928) (13,123) (46,739) (58,666) (14,154) (14,069) (15,716) (273,079)
25 of 52

January 1st, 2012 2012 January February March April May June July August September October November December (23,146) (16,878) (11,919) (17,225) (13,148) (1,991) (18,880) (18,824) (668) (6,905) (420) 1,484 (128,520) 2013 (447) (540) 1,045 (355) (565) 1,414 (1,520) (1,396) (48) (1,519) (1,289) (240) (5,460) 2014 25,680 (2,049) (1,874) (2,756) (2,571) (2,208) (2,796) (2,662) (2,461) (2,908) (2,854) (2,736) (2,195) 2015 (3,000) (2,966) (2,951) (3,228) (3,262) (3,055) (2,658) (2,695) (3,018) (2,897) (2,926) (2,769) (35,425) 2016 (2,820) (2,879) (2,980) (2,933) (2,932) (2,908) (2,548) (2,539) (2,290) (2,499) (2,476) (2,431) (32,235) 2017 (2,483) (2,475) (2,415) (2,764) (2,782) (2,675) (1,289) (1,286) 2,973 (1,281) (1,288) (1,222) (18,987) 2018 Total (6,216) (27,787) (21,008) (29,261) (25,260) (11,319) (29,691) (29,402) 3,233 (18,009) (11,253) (7,914) (213,887)
86 104 8,745
8,935
Notional and fair value by counterparty:

September 30, 2013 Notional in US Dollars
Banco Ita BBA S.A. Deutsche Bank S.A. Banco Safra S.A. Banco BNP Paribas Brasil S.A. Banco Santander Brasil S.A. Banco CreditAgricole Brasil S.A. HSBC Bank Brasil S.A. Banco Citibank S.A. Goldman Sachs do Brasil Banco Bradesco S.A. Morgan Stanley & CO. Banco Votorantim S.A. Banco ABC Brasil S.A. Rabobank Brasil S.A. Bank of America Merrill Lynch Banco Standard de Investimentos Standard Chartered Bank Banco Barclays S.A. Banco WestLB do Brasil Banco Mizuho do Brasil S.A. BES Investimento do Brasil S.A. 429,660 242,450 212,392 232,000 226,954 228,918 195,117 203,030 76,800 141,618 23,565 31,638 25,000 199,657
December 31, 2012 Notional in US Dollars

243,261 143,450 221,226 125,000 248,918 213,950 154,601 138,181 123,250 85,000 58,912 42,086 50,000
January 1st, 2012 Notional in US Dollars

382,812 37,500 233,550 255,556 135,046 240,376 186,850 229,042
Fair value
(30,461) 91 (78,055) (3,765) (122,569) (3,797) (31,854) (56,973) (1,137) (31,808) (393) (6,858) (256) 1,167
Fair value
(17,865) (2,033) (55,131) 853 (93,734) (3,844) (21,101) (39,734) (3,107) (23,214) (1,747) 200 (2,389) (6,821) (3,412)
Fair value
(49,975) (3,699) 11,372 (57,139) (22,460) (6,695) (17,507) (22,415)
35,000 15,000 20,000 53
96,400 14,500 57,500 124,500 45,500 10,000
(20,041) (1,791) (8,285) (10,959) (2,521) (1,772) (213,887)
2,488,799
(366,615)
1,897,835
(273,079)
2,049,132
The fair value does not necessarily represent the cash required to immediately settle each contract, as this disbursement will only be made on the date of maturity of each transaction, when the final settlement amount can be determined. The outstanding contracts at September 30, 2013 are not subject to margin calls or anticipated liquidation clauses resulting from mark-to-market variations. All operations are over-the-counter and registered with CETIP (a clearing house). The descriptions of the types of contracts and risks being hedged against are as follow: 26 of 52

(i)
Non-Deliverable Forwards (NDF) The Company did not enter into US Dollar forwards, and there is no outstanding balance at September 30, 2013.
(ii)
LIBOR versus fixed rate swaps The Company has plain-vanilla swaps of quarterly LIBOR against fixed rates, with the objective of hedging debt carrying interest based on LIBOR against any increase in the LIBOR rate.
(iii)
DI versus US Dollar swap The Company has plain vanilla swaps of the Interbank Deposit (DI) rate against the US Dollar, with the objective of converting our debt exposure in Reais subject to the DI rate into a debt in US Dollars at fixed interest. The swaps are matched to the debts in terms of the underlying amounts, maturity dates and cash flow.
(iv)
TJLP versus US Dollar swap The Company has plain vanilla swaps of the Long-term Interest Rate (TJLP) against the US Dollar with the objective of converting our debt exposure in Reais subject to interest based on the TJLP, to debt in US Dollars at fixed interest. The swaps are matched to the related debts in terms of the underlying amounts, maturity dates and cash flow.
(v)
Zero cost collar The Company has a zero cost collar, which is an option (put) to purchase US Dollars and a written option (call) to sell US Dollars, with no leverage. The difference between the strike price of the put (floor) and of the call (ceiling) options gives a floor and cap to the Dollar exchange rate, thereby forming a "Collar".
(vi)
Pre-swap versus US Dollar swap The Company has plain vanilla swaps to transform fixed interest debt in Reais into debt in US Dollars at fixed rates. The swaps are matched to the debts in terms of the underlying amounts, maturity dates and cash flow.
(vii)
Fair value measurement of derivative financial instruments The Company estimates the fair values of its derivative financial instruments, and acknowledges that these may differ from the amounts payable/receivable in the event of the early settlement of the instrument. This difference arises due to factors such as liquidity, spreads or the intention regarding early settlement by the counterparties, among other factors. The amounts estimated by management are also compared to the Mark-to-Market (MtM) prices provided as a reference by the banks (counterparties), and to estimates performed by an independent financial advisor. Management believes that the fair values estimated for those instruments, using the methods described below, reliably reflect their fair values. The methods used by the Company to measure the fair values of its derivative financial instruments reflect the methodologies commonly used by the market, and are based on widely tested theoretical 27 of 52

bases. The methodologies used to estimate the MtM prices and to record the values of financial instruments are defined in the manual developed by the Company's risk and compliance management area. A summary of the methodologies used for the purpose of determining the fair value by type of instrument is presented below: . Non-deliverable forwards - a projection of the future exchange rate is made, using the observable foreign currency coupon and the observed fixed yield curve in Reais at each maturity date. The difference between the forward exchange rate obtained using this method and the contractual forward exchange rate is determined. This difference is multiplied by the notional amount of each contract and discounted to its present value using the observed fixed yields in Reais. Swap contracts - the present value of both the asset and liability positions are estimated by discounting the forecast cash flow using the observed market interest rate for the currency in which the swap is denominated. The contracts fair value is the difference between the asset and liability amounts. The only exemption refers to TJLP versus US Dollar swaps, where the cash flow of the asset position (TJLP versus Pre swap) is projected using a straight yield of 5% over the period of the swap contract, as disclosed by BM&FBOVESPA. Options (Zero Cost Collar) - the fair value was calculated based on the Garman Kohlhagen model. Volatility information and interest rates are observable and were obtained from BM&FBOVESPA exchange information and used to calculate the fair values.
The yield curves used to calculate the fair values of financial instruments at September 30, 2013 are as follow:
Interest rate curves Brazil Vertex 1M 6M 1A 2A 3A 5A 10A Rate (p.a.) - % 9.12 9.64 10.08 10.93 11.39 11.74 11.93 Vertex 1M 6M 1A 2A 3A 5A 10A United States Rate (p.a.) - % 0.19 0.27 0.31 0.46 0.78 1.57 2.90 Vertex 1M 6M 1A 2A 3A 5A 10A Dollar coupon Rate (p.a.) - % 20.32 4.59 3.17 2.65 2.72 3.48 5.62
28 of 52

Trade accounts receivable

September 30, 2013 December 31, 2012 January 1st, 2012
Domestic customers Intercompany Export customers
66,741 3,423 600,051 670,215
99,601 2,980 714,142 816,723 (61,955) 754,768
102,305 2,878 916,391 1,021,574 (76,212) 945,362
Allowance for doubtful accounts
(58,498) 611,717
During the nine months ended September 30, 2013, we made credit assignments without recourse for certain customers, amounting to R$ 847,496 (R$ 686,619 at December 31, 2012 and R$ 306,787 at January 1, 2012) meaning that these amounts were not recognized as trade accounts receivable and are not included in the balance above. The combination of the sales volume, the average pulp price and the effect of the exchange currency in the period, contributed to minimizing the decrease in the balance. The credit assignments without resources made by us represent, substantially, the change in the balance in the period. 10 Inventory
Finished goods At plants/warehouses in Brazil Outside Brazil Work in process Raw materials Supplies Imports in transit Advances to suppliers
115,383 694,953 11,053 413,204 147,422 2,793 329 1,385,137
131,806 470,082 13,438 422,288 142,288 2,333 907 1,183,142
135,110 518,305 31,141 360,473 129,298 2,140 2,240 1,178,707
The balance increased by 17 % or R$ 201,995, mainly due to the high level of inventory of finished products (increase of 134,000 tons) in the nine months period ended September 30, 2013.
29 of 52

11
Recoverable taxes
Withholding tax and prepaid Income Tax (IRPJ) and Social Contribution (CSLL) Value-added Tax on Sales and Services (ICMS) on purchases of property, plant and equipment Value-added Tax on Sales and Services (ICMS) on purchases of raw materials and supplies Social Integration Program (PIS) and Social Contribution on Revenue (COFINS) Recoverable Provision for the impairment of ICMS credits
233,011 18,199 792,420 537,468 (639,144 941,954
187,941 16,140 715,904 526,410 (579,103) 867,292 657,830 209,462
208,993 19,520 614,274 669,805 (507,573) 1,005,019 677,232 327,787
Non-current Current
731,370 210,584
During the nine months ended September 30, 2013 there were no relevant changes to our expectations regarding the recoverability of the tax credits presented in Note 14 to the most recent annual financial statements. 12 Taxes on income The Company and its subsidiaries based in Brazil are taxed based on their net income/losses for accounting purposes as adjusted for tax purposes. The subsidiaries outside of Brazil use the methods established by the respective local regulations. Income taxes have been calculated and recorded considering the applicable statutory tax rates enacted as at the date of the interim financial information. (a) Deferred taxes Deferred income tax and social contribution tax assets arise from tax losses and temporary differences related to: (i) the effect of foreign exchange gains/losses, mainly on loans and financing (which for tax purposes are taxed/deductible on a cash basis), (ii) adjustments to the fair values of derivative financial instruments, (iii) provisions not currently deductible for tax purposes, (iv) investments in rural activity, and (vi) temporary differences arising from the adoption of CPCs/IFRS.
30 of 52

September 30, 2013 Tax losses Provision for contingencies Sundry provisions (impairment, operational and other) Results of derivative contracts recognized on a cash basis for tax purposes Exchange variations - recognized on a cash basis for tax purposes Tax amortization of goodwill Actuarial gains (losses) on medical assistance plan (SEPACO) Provision for losses on foreign deferred tax assets (*) Tax depreciation Reforestation costs already deducted for tax purposes Fair values of biological assets Effects of business combination - acquisition of Aracruz Tax benefit of goodwill not amortized for tax purposes Other provisions Total deferred taxes, net Deferred taxes - asset (net by entity) Deferred taxes - liability (net by entity) 814,326 63,873 421,550 124,649 644,552 113,098 11,414 (260,909) (10,674) (329,497) (196,974) (23,378) (335,470) (1,791) 1,034,769 1,211,131 176,362
December 31, 2012 587,211 65,578 401,113 92,847 470,825 113,178 11,414 (238,201) (11,391) (299,632) (239,094) (31,998) (268,376) (1,791) 651,683 879,606 227,923
January 1st, 2012 521,693 30,506 383,395 72,537 73,412 110,936 3,600 (200,711) (14,986) (284,020) (214,952) (45,212) (178,917) (1,791) 255,490 995,368 739,878
Changes in the net balances of deferred income tax are as follow:

September 30, 2013 December 31, 2012
At the beginning of the period Tax losses Provision for the impairment of foreign deferred tax assets Temporary differences relating to provisions Derivative financial instruments taxed on a cash basis Amortization of goodwill Reforestation costs and tax depreciation Exchange gains/losses taxed on a cash basis Fair value of biological assets Actuarial losses on medical assistance plan (SEPACO) Other At the end of the period
651,683 204,407 27,352 31,802 (67,174 ) (29,148 ) 173,727 42,120
251,890 28,558 (37,490) 52,790 20,310 (87,217) (12,018) 434,373 (24,141) 11,414 13,214 651,683
1,034,769
31 of 52

(b)
Reconciliation of income tax and social contribution benefit (expenses)

September 30, 2013 Income before taxes on income Income tax and social contribution at statutory nominal rates - 34% Reconciliation against effective expenses Non-taxable equity in the earnings (losses) of associates Differences in the tax rates of foreign subsidiaries Benefits to directors Other, mainly non deductible provisions Income Tax and Social Contribution benefits (expenses) for the year Effective rate - % 74,131 (2,269) (9,166) 358,805 41.2 (109) (7,084) (5,281) (14,832) 343,120 31.5 (870,910) 296,109 September 30, 2012 (1,089,489) 370,426
13
Significant transactions and balances with related parties Related parties The Company is governed by a Shareholders Agreement entered into between Votorantim Industrial S.A. ("VID"), which holds 29.42% of its shares, and BNDES Participaes S.A. ("BNDESPAR"), which holds 30.38% of the shares (together the "Controlling shareholders"). The Company's commercial and financial transactions with its subsidiaries, associates, companies belonging to the Votorantim Group and other related parties are carried out at normal market prices and conditions, based on the usual terms and rates applicable to third parties. The balances and transactions with related parties are as follow:
(a)
32 of 52

(i)
Balances recognized in assets and liabilities

Balances receivable (payable) Nature Transactions with controlling shareholders Votorantim Industrial S.A. BNDES Rendering of services Financing (456) (1,778,508) (1,778,964) Transactions with associates Bahia Produtos de Madeira S.A. Transactions with Votorantim Group companies VOTO III Votener - Votorantim Comercializadora e Energia Banco Votorantim S.A. Votorantim Cimentos S.A. Votorantim Cimentos S.A. Votorantim Metais Votorantim Metais Companhia Brasileira de Alumnio (CBA) (722) (1,747,272) (1,747,994) (63) (1,773,842) (1,773,905) September 30, 2013 December 31, 2012 January 1st, 2012
Sales of wood
3,463
2,980
2,878
Bonds Energy supplier Financial investments Input supplier Sales of land Chemical products supplier Leasing of land Leasing of land (2) 33,847 (25) 31,362 (271) (713) (37) 64,161 (388) 197,782 (11) 31,362 (228) (1,476) (33) 227,008 (1,518,006)
(117,767) (388) 176,156 (87) (214) (33) 57,667 (1,713,360)
Net
(1,711,340)
Presented in the following lines In assets Marketable securities (Note 7) Trade accounts receivable (Note 9) Related parties - non-current Other assets - current In liabilities Loans and financing (Note 18) Suppliers
33,847 3,423 6,805 31,362 (1,785,198) (1,579) (1,711,340)
191,537 2,980 6,245 31,362 (1,747,272) (2,858) (1,518,006)
170,687 2,878 5,469 (1,891,609) (785) (1,713,360)
33 of 52

(ii)
Transactions recognized in the statement of operations

Income (expenses) September 30, September 30, 2013 2012
Nature
Transactions with controlling shareholders Votorantim Industrial S.A. Banco Nacional de Desenvolvimento Econmico e Social (BNDES) . Transactions with associates Bahia Produtos de Madeira S.A. . Transactions with Votorantim Group companies VOTO III Votener - Votorantim Comercializadora de Energia Banco Votorantim S.A. Votorantim Cimentos S.A.
Rendering of services Financing
(7,355) (121,672) (129,027)
(7,472) (122,222) (129,694)

8.035
Sales of wood
8,486
Bond (27,592) (2,275) (389) (3,309) (6,912) (331) (40,808)
12,149 (13,307) 12,638 (225) (4,205) (4,688) (392) 1, 970
Energy supplier Investments Leasing of land Chemical products Votorantim Metais Ltda. supplier Votorantim Metais Ltda. Leasing of land Companhia Brasileira de Alumnio (CBA) Leasing of land
Comments on the main transactions and contracts with related parties The following is a summary of the nature and conditions of the transactions with related parties: Controlling shareholders The Company has a contract with VID related to services provided by the Votorantim Shared Services Center, which provide the outsourcing of operational services relating to administrative activities, the personnel department, back office, accounting, taxes and the information technology infrastructure, which are shared by the companies of the Votorantim Group. The contract provides for overall remuneration of R$ 9,767 and has a one-year term, to be renewed annually upon formal confirmation by the parties. Additionally, VID provides various services related to technical advice and training, including management improvement programs. These services are provided to the entire Votorantim Group, and the Company reimburses VID at cost for the expenses related to the services used. The Company has financing contracts with BNDES, the majority shareholder of BNDESPAR, for the purpose of financing investments in infrastructure, forestry, the acquisition of equipment and machines and research and development, as well as the expansion and modernization of its plants. There have been no changes in the contracts with BNDES since December 31, 2012, which were presented in Note 23(e) in the most recent annual financial statements. 34 of 52

Management believes that these transactions were contracted at terms equivalent to those which applyto transactions with independent parties, based on technical studies performed when these contracts were executed. Subsidiaries, joint operations and associates Fibria shares its administrative structure with its wholly-owned subsidiary Fibria - MS, and allocates these administrative expenses to the subsidiary at cost without any profit margin. These receivables have an average maturity of 90 days. The other operating subsidiaries have their own management, and no sharing of expenses is necessary. In June 2010 and May 2011, there were purchases of intercompany receivables from this subsidiary amounting to R$ 239,123, relating to export shipments, which were fully settled in 2012. Port services for the shipping of the products of the Aracruz plant are contracted from Portocel Terminal Especializado Barra do Riacho. Portocel is controlled by the Company, and Cenibra Celulose Nipo-Brasileira holds the remaining 49% interest in Portocel. The prices and conditions are identical for both shareholders. The Company has accounts receivable relating to the sale of pulp to its wholly-owned subsidiary Fibria International Trading GmbH, which is responsible for the management, sale, operation, logistics, control of and accounting for products in Europe, Asia and North America. The pulp sales prices and payment terms for this subsidiary follow the strategic and finance plan of the Company and observe the transfer price limits under the tax regulations. In addition, the Company contracted intercompany export prepayments with this subsidiary, at the rate of quarterly LIBOR plus an average spread of 3.99% p.a. with quarterly payments of principal and interest and final maturity in 2018. On July 1st, 2013, due to the transfer of the commercial, logistics, administrative and financial operations from the subsidiary Fibria Trading International Kft. to the subsidiary Fibria International Trading GmbH, the balance of trade accounting receivables and export credits (prepayments) up to June 30, 2013 were partially transferred between the subsidiaries and the remaining balance keeps with the same conditions previously agreed. On June 24, 2005, we entered into a loan contract with VOTO IV, which raised US$ 200,000 thousand, bearing interest at 8.5% p.a. and maturing in 2020. In September 2013, Fibria prepaid the amount of US$ 24,700 (equivalent to R$ 55,471). The Company has balances receivable from Asapir, corresponding to cash advances made by the Company for the purpose of ensuring that Asapir has working capital at levels considered adequate to carry out its operational activities. The Company has a receivables balance of R$ 3,463 from Bahia Produtos de Madeira S.A., corresponding to sales of wood, with a contract value of around R$ 9 million per year, with maturity in 2019, renewable for 15 years. Votorantim Group companies The Company has a contract to purchase energy from Votener - Votorantim Comercializadora de Energia Ltda. to supply power to our unit in Jacare. The total amount contracted is R$ 15,000, guaranteeing 115,704 megawatt-hours over five years, maturing in December 31, 2014. Should either party request the early termination of the contract, that party will be required to pay 50% of the 35 of 52

remaining contract amount. In addition, the Company entered into a contract to purchase energy from Votener, expiring on December 31, 2014, to supply the Trs Lagoas and Aracruz units. Since these units already generate their own energy, the contract is intended to maximize the competitiveness of the energy matrix. The total amount contracted may change based on the needs and consumption of energy by those plants. The Company maintains investments in CDBs and securities purchased under resale agreements ("reverse repos") issued by Banco Votorantim S.A., with average remuneration of 103.5% of the CDI rate, daily liquidity from September 2013 and maturing in April 2015. The Company's cash management policy is intended to provide efficiency in investment returns and to maximize liquidity, based on market practices. The Company has also entered into derivative financial instruments with Banco Votorantim. The Shareholders Agreement limits intercompany investments to R$ 200 million for securities and R$ 100 million in notional value for derivative financial instruments. On January, 2012, the Company entered into a contract to purchase 98% sulfuric acid from Votorantim Metais, for R$ 18,500, in exchange for the supply of 36,000 metric tons of acid for two years through December 31, 2013. In the event of contract termination, no penalties are due, and the parties should pay any outstanding invoices for goods provided prior to the termination. The Company has an agreement with Votorantim Cimentos for the supply of road construction supplies, such as rock and calcareous rock, with an approximate value of R$ 7,165. This agreement may be terminated at any time with prior notice of 30 days, without any contractual penalties. In December 2012, the Company entered into a contract with Votorantim Cimentos for the sale of land amounting to R$ 31,362, which matures in December 2013. The Company has land leasing agreements, covering approximately 22,400 hectares, with Votorantim Metais Ltda., which matures in 2019, totaling R$ 76,496. The Company has land leasing agreements, covering approximately 2,062 hectares, with Companhia Brasileira de Alumnio - CBA and Votorantim Cimentos, which mature in 2023, totaling R$ 4,062. In the nine months ended September 30, 2013 and the other periods presented, no provision for impairment was recognized on assets with related parties. (b) Remuneration of officers and directors The remuneration expenses, including all benefits, are summarized as follow: September 30, 2013 Short-term benefits to officers and directors Rescission of contract benefits Long-term benefits to officers and directors 19.273 1.587 4.754 25,614 September 30, 2012 21,169 2,839
24,008
Short-term benefits include fixed compensation (salaries and fees, vacation pay and 13th month salary), social charges and contributions to the National Institute of Social Security (INSS), the Government 36 of 52

Severance Indemnity Fund for Employees (FGTS) and the variable compensation program. The longterm benefits related to the benefit program (Phantom Stock Options) and the variable compensation program. Short-term benefits to officers and directors do not include the amount of R$ 572 for the nine months ended September 30, 2013 (R$ 693 for the nine months ended September 30, 2012) regarding the compensation for the Audit, Risk, Compensation and Sustainability Committee members of. The Company does not have any additional active post-employment plans and does not offer any other benefits, such as additional paid leave for time of service. 14 Investments
Investments in associates - equity method (a) Provision for impairment of investments (a) Other investments - fair value method (b)
6,913 (6,913) 40,674 40,674
6,913 (6,913) 40,674 40,674
7,506
7,506
(a)
Investments in associates
Our ownership Associate's information Profit and loss On equity January 1st, 2012 On profit and loss
Equity Associate measured using the equity method Bahia Produtos de Madeira S.A. Provision for impairment Bahia Produtos de Madeira S.A.
September 30, 2013
December 31, 2012
September 30, 2013
September 30, 2012
20,740
33.3
6,913
6,913
7,506
(320 )
(6,913)
(6,913) 7,506 (320 )
(b)
Other investments We hold 6% ownership of the capital of Ensyn, represented by shares. We performed an assessment of the rights related to these shares and concluded that we did not have significant influence over the management of Ensyn. Therefore, this investment cannot be considered as an investment in an associate. No significant changes in the fair value of our interest in Ensyn occurred between the date of our investment (October 2012) and September 30, 2013 and for that reason the carrying amount as at September 30, 2013 is equal to the cost of the investment.
37 of 52

15
Biological assets The reconciliation of the book balances at the beginning and at the end of the period presented is as follows: September 30, December 31, 2013 2012 At the beginning of the period Historical cost Fair value Additions Depletion during the period Historical cost Fair value Change in fair value Disposal Transfer (i) At the end of the period
2,451,612 873,992 3,325,604 647,894 (425,618) (216,661) 36,100 (822) (223) 3,366,274
2,477,271 786,939 3,264,210 755,531 (502,691) (365,726) 297,686 (129,745) 6,339 3,325,604
(i) Includes transfers between biological assets, property, plant and equipment and intangible assets.
In accordance with our accounting policies, the valuation of the biological assets at the fair value is performed semiannually. On June 30, 2013, the changes in fair value of the biological assets recognized by us was R$ 36,100, as detailed in Note 15 of the interim financial statements for the period ended June 30, 2013.
38 of 52
16
Property, plant and equipment
The rolling forward of the carrying amounts for the presented period is as follows:
Machinery, equipment and facilities Advances to suppliers 205,783 3,061 197,866 230,475 Construction in progress
Land 1,853,243 32 (56,768) 19,179 1,815,686 (27,923) 1,652 1,789,415 1,451,037 7,023,672 1,489,759 131 (2,739) (90,977) 54,863 7,402,677 12,111 (27,059) (505,789) 141,732 208,907 361 (21,717) 63 1,562,120 299 (5,201) (122,268) 54,809 7,975,675 2,886 (14,509) (676,576) 115,201
Buildings
Other
Total
At January 1, 2012 Additions Disposals Depreciation Transfers and other (i)
(213,980) 214,361 210,567
46,560 950 (518) (15,389) 11,568
11,841,247 237,703 (76,996) (814,233) (13,160)
At December 31, 2012 Additions Disposals Depreciation Transfers and other (i)
(215,710) 187,551 209,218
43,171 1,648 (13,180) (11,775) 23,856 43,720
11,174,561 224,818 (92,618) (608,541) 6,393 10,704,613
At September 30, 2013
(i) Includes transfers between the accounts biological assets, property, plant and equipment and intangible assets.
39 of 52

17
Intangible assets The rolling forward of the carrying amounts for the period presented is as follows:
September 30, 2013 At the beginning of the period Amortization of databases, patents and suppliers Acquisition and disposal of software Other At the end of the period 4,717,163 (60,133 ) (7,581 ) 4,060 4,653,509 December 31, 2012 4,809,448 (83,124) (9,192) 31 4,717,163
Composed by Goodwill - Aracruz Systems development and deployment Acquired from business combination Databases Patents Relationships with suppliers Diesel and ethanol Chemical products Other
4,230,450 32,455 239,400 31,187 115,788 4,229 4,653,509
4,230,450 40,004 273,600 46,820 2,668 123,420 201 4,717,163
40 of 52
18
Loans and financing
(a)
Current
Average annual charges % September 30, 2013 December 31, 2012 January 1st, 2012 September 30, 2013 December 31, 2012 January 1st, 2012
Breakdown of the balance by type of loan

Non- current Total
Type/purpose
September 30, 2013
December 31, 2012
January 1st, 2012
5.9 3.2 7.3 2.3 2.4 420,849 323,367 218,662 440,604 29,051 623,632 784 8,773 790,559 6,065,340 2,441,653 2,503,308 214,567
45,527 47,929 65,954
49,075 46,319 65,763
48,790 42,731 34,575 2,223
270,313 164,719 3,188,655
233,397 193,959 4,577,197
220,471 217,218 5,103,839 115,544 2,777,003 5,958
315,840 212,648 3,254,609 2,765,020 420,849
282,472 240,278 4,642,960 2,721,970 655,171
In foreign currency BNDES - currency basket Export credits (Finnvera) Bonds - US$ Bonds - JPY Export credits (prepayment) Export credits (ACC/ACE) EIB Europe Inv. Bank Leasing
269,261 259,949 5,138,414 117,767 2,806,054 623,632 784 14,731
903,626
820,423
7,722,428
8,440,033
6,968,966
8,542,851
9,230,592
In Reais BNDES - TJLP FINAME NCE Midwest Region Fund (FCO and FINEP)
7.7 4.3 11.3 8.3 384,017 1,287,643 95,260 1,192,383 1,287,643 117,992 111,898 908,115 1,138,005 1,138,005 317,582 12,024 11,689 301,549 1,092,108 114,432 98,667 879,009 1,092,108
314,852 4,352 52,856 11,957
248,731 7,483 49,344
242,321 2,336 45,203
1,147,816 11,650 935,600 38,557 2,133,623 8,198,963 18,343 8,180,620 8,198,963
1,216,069 7,182 636,982 47,289 1,907,522 9,629,950 105,053 9,524,897 9,629,950
1,262,260 7,516 463,987 58,513 1,792,276 10,232,309 65,828 10,166,481 10,232,309
1,462,668 16,002 988,456 50,514 2,517,640 9,486,606 113,603 9,373,003 9,486,606
1,464,800 14,665 686,326 59,313 2,225,104 10,767,955 223,045 111,898 10,433,012 10,767,955
1,504,581 9,852 509,190 70,202 2,093,825 11,324,417 180,260 98,667 11,045,490 11,324,417
Interest Short-term borrowing Long-term borrowing
41 de 52
The average rates were calculated based on the forward yield curve of benchmark rates to which the loans are indexed, weighted through the maturity date for each installment, including the issuing/contracting costs, when applicable.
(b)
Breakdown by maturity
Non-current portion of the debt at September 30, 2013 by maturity:

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total
11,730 134,482 134,507 146,237 362,415 501,967 711,703 524,940 598,647 271,735 421,651 619,006 457,935 435,603
43,833 46,847
33,272 47,044
45,653 47,044
43,221 23,784
28,562
32,041 1,813,392 101,216 1,946,649
28,259 1,240,781
In foreign currency BNDES - currency basket Export credits (Finnvera) Bonds - US$ Export credits (prepayment)
3,742
270,313 164,719 3,188,655 2,441,653 1,269,040 3,742 6,065,340
82,665 1,240 11,080 2,911 97,896 244,133 802,155 790,802 1,207,614 439,740 288,835 495,911 11,643 11,643 11,643 409 416,793 941,733
311,553 4,959 111,585
170,960 3,225 103,007
157,182 2,059 325,027
117,767 167 298,450
82,654 43,225 308 126,187 724,834
101,168 43,226
96,965
22,287
4,615
1,147,816 11,650 935,600 38,557 144,394 2,091,043 96,965 1,366,005 22,287 26,029 4,615 4,615 2,133,623 8,198,963
In Reais BNDES - TJLP FINAME NCE Midwest Region Fund (FCO and FINEP)
42 de 52

(c)
Breakdown by currency and interest rate Loans and financing are broken down into the following currencies: Currency September 30, December 31, 2013 2012 Real Dollar JPY Currency basket 2,517,640 6,653,126 315,840 9,486,606 2,225,104 8,260,379 282,472 10,767,955 January 1st, 2012 2,093,825 8,843,564 117,767 269,261 11,324,417
Loans and financing broken down by interest rate are as follow: Interest rate September 30, December 31, 2013 2012 CDI TJLP Libor Currency basket Fixed 988,456 1,419,730 2,977,669 315,840 3,784,911 9,486,606 (d) Rollforward September 30, 2013 At the beginning of the period Borrowing Interest expenses Foreign exchange Repayments - principal amount Interest paid Expenses of transaction costs of Bonds redeemed early Other (*) At the end of the period
(*) Includes the amortization of transaction costs.
January 1st, 2012 509,190 1,504,491 2,929,970 269,261 6,111,505 11,324,417
686,326 1,449,587 2,756,150 282,472 5,593,420 10,767,955
December 31, 2012 11,324,417 864,334 681,840 803,641 (2,410,719) (651,288) 88,759 66,971 10,767,955
10,767,955 1,142,715 438,315 581,019 (3,102,460) (477,529) 112,678 23,913 9,486,606
43 de 52

(e)
Relevant operations settled during the period Bonds In the nine months ended September 30, 2013, Fibria prepaid and canceled a total of US$ 879 million (equivalents to R$ 1,811,857) related to the Bonds Fibria 2020, Fibria 2021 and VOTO IV issued in May 2010, March 2011 and June 2005, for which the original maturities were May 2020, March 2021 and June 2020, with fixed interest rates of 7.5%, 6.75% and 7.75% per year, respectively. As a result of the early redemption, we recognized financial expenses amounting to R$ 343,413, of which R$ 230,735 relating to the premiums paid in the repurchase transaction and R$ 112,678 relating to the proportional amortization of the transaction costs of the Bonds. Export credits (ACC) In the first quarter of 2013, Fibria paid a total of US$ 125 million (equivalent to R$ 255,111) in relation to export credits (ACC) with fixed interest rates of between 2.05% p.a. and 2.09% p.a. Over the same period, Veracel (Fibrias joint operation) paid a total of US$ 22.8 million (equivalent t o R$ 45,766), of export credits (ACC), with fixed interest rates of between 2.07% p.a. and 4.75% p.a. Export credits (prepayments) In April 2013, the Company early repaid the amount of US$ 100 million (equivalents to R$ 199,390) regarding two export credits prepayments, which were contracted in October and November 2010, with maturity in October 2018 and a fixed-interest rate of 5.3% p.a. Export Credit Note (NCE) In June 2013, the Company repaid early the amount of R$ 205,924 of the NCE with Banco Safra (which corresponds to 40% of the total) and signed an amendment for the remaining balance with a reduction on the cost of the contract from 100% of the CDI plus 1.85% p.a. to 100% of the CDI plus 0.85% p.a. and maturity in 2018.
(f)
Relevant operations contracted during the period Unused credit lines In April 2013, the Company obtained a revolving credit facility with Banco Bradesco, in the amount of R$ 300,000 with availability for five years and an interest rate of 100% of the CDI plus 1.5% p.a., when fully used. During the unused period, the Company will pay a commission in Reais of 0.05% p.a. quarterly. The Company has not used the credit. Export credits (prepayments) In April 2013, the Company, through Fibria Trading International KFT., entered into an export prepayment contract with three banks in the amount of US$ 100 million (equivalent to R$ 201,540), with maturity until 2018 and an initial interest rate of 1.63% p.a. over the quarterly LIBOR rate. Export Credit Note (NCE) In June 2013, the Company contracted, an NCE with Banco do Brasil in the amount of R$ 497,745, with final maturity in 2018 and interest at 105.85% of the CDI. 44 de 52

BNDES In the nine months ended September 30, 2013, BNDES funds in the amount of R$ 185,039 were released, with maturity dates between 2018 and 2023, subject to interest of TJLP plus 2.42% p.a. to 3.45% p.a. and UMBNDES (currency basket) plus 2.42% p.a. to 3.45% p.a. The resources will be used for projects in the forestry and industrial areas. (g) Covenants Some of the financing agreements of the Company contain covenants establishing maximum indebtedness and leverage levels, as well as minimum coverage of outstanding amounts. Covenants requirements On June 6, 2012, the Company concluded the renegotiation of the debt financial covenants, which resulted in the following changes: (a) covenants are now measured based on the consolidated information translated into US Dollars (as opposed to the consolidated financial information in Reais), and (b) the indebtedness ratio (Net debt to EBITDA) was increased to a maximum of 4.5x. The measurement of the ratios based on information translated into US Dollars reduces the effects of changes in exchanges rates compared to ratios based on information measured in Reais. A substantial portion of the debt of the Company is denominated in US Dollars and as a result the depreciation of the Real against the US Dollar has a significant impact on the ratio when it is measured in Reais. Under the prior computation criteria in the event of a depreciation of the Brazilian Real, the amount of net debt as at the end of the period would increase when measured in Reais. Under the revised criteria by translating the EBITDA from Reais to US Dollars at the average exchange rate for each quarter the impact of the depreciation of the Brazilian Real is mitigated. The following table presents the financial covenant ratios: December, 2012 and after Ratio of debt service coverage (i) - Minimum ratio Indebtedness ratio (ii) - Maximum ratio More than 1.00 Less than 4.50
(i) The ratio of debt service coverage is defined as: (a) adjusted EBITDA (for the last four quarters) in accordance with the practices adopted in Brazil and adjusted translated into US Dollars at the average exchange rate for each quarter, plus the balance of cash, cash equivalents and marketable securities at the period-end translated into US Dollars at period-end exchange rates divided by (b) debt service payment requirements for the following four consecutive quarters plus interest paid during the past four quarters translated into US Dollars at the average exchange rate for each quarter. (ii) The indebtedness ratio is defined as (a) consolidated net debt translated into US Dollars at the period-end closing rate divided by (b) Adjusted EBITDA for the last four quarters translated into US Dollars at the average exchange rate for each quarter. 45 de 52

The Company is in full compliance with the covenants established in the financial contracts at September 30, 2013, for which the debt service ratio totaled2.27 and the indebtedness ratio totaled 2.86. The debt agreements that have debt financial covenants also include the following events of default: . . . . . Non-payment, within the stipulated period, of the principal or interest. Inaccuracy of any declaration, guarantee or certification provided. Cross-default and cross-judgment default, subject to an agreed minimum of US$ 50 million. Subject to certain allowable periods for resolution, breaches of any obligation under the contract. Certain events of bankruptcy or insolvency of the Company, its main subsidiaries or Veracel Celulose S.A.
19
Contingencies The Company is party to labor, civil and tax lawsuits at various court levels. The provisions for contingencies against probable unfavorable outcomes of claims in progress are established and updated based on management evaluation, as supported by the opinion of external legal counsel. Provisions and the corresponding judicial deposits are as follow:
September 30, 2013 Judicial deposits Nature of claims Tax Labor Civil Judicial deposits December 31, 2012 Judicial deposits January 1st, 2012
Provision
Net
Provision
Net
Provision
Net
128,838 54,502 8,990 192,330
138,543 115,847 22,859 277,249
9,705 61,345 13,869 84,919
123,791 47,703 6,520 178,014
162,222 108,014 12,591 282,827
38,431 60,311 6,071 104,813
119,572 47,819 821 168,212
173,823 88,834 7,149 269,806
54,251 41,015 6,328 101,594
The change in the provision for contingencies is as follows: September 30, 2013 At the beginning of the period Reversal New litigation Accrual of financial charges At the end of the period 282,827 (45,051) 12,288 27,185 277,249 December 31, 2012 269,806 (39,129) 8,923 43,227 282,827
See below the relevant changes in relation to lawsuits and discussions in the nine months ended September 30, 2013:
46 de 52

(i)
Income tax assessment - Fibria Celulose S.A. (Normus) In March 2013, Fibrias subsidiary Normus Empreendimentos e Participaes Ltda. (incorporated by Fibria) received an income tax assessment from the Brazilian Federal Revenue Service (Receita Federal do Brasil) amounting to R$ 264,741, being R$ 124,222 of the principal and R$ 140,519 of penalties and interest. Despite the Company maintaining business transactions with countries with which Brazil has signed international double taxation treaties, the Brazilian Federal Revenue Service claimed Income Tax (Imposto de Renda) and Social Contribution (Contribuio Social sobre o Lucro Lquido) on the earnings of its foreign subsidiary for the year 2008. Based on the position of legal counsel, the assessment of loss was considered reasonably possible, such as the other income tax assessment involving Normus and, therefore, any provision for loss was recognized. Appeal was presented, on which judgment is pending. In addition to the tax assessment mentioned above, there are other tax assessments as disclosed in Note 24 to the most recent annual financial statements. The total amount of the all tax assessment received updated as at September 30, 2013 is R$ 1,567,044, being R$ 556,303 of the principal, R$ 417,227 of penalties and R$ 593,514 of interest.
(ii)
Tax assessment (ICMS - So Paulo) Adherence to Special Installment Program In August 2009, the Company was notified by the State Treasury of the State of So Paulo, in the amount of R$ 21,841, including interest and penalties. The Company made a provision amounting to R$ 29,178 for the assessment received in August 2009. This assessment refers to transactions in which we, as appointed by the customer, have informed to the Distrito Federal as a destination of the products, applying the tax rate of 7%. However, the products were removed and delivered to another branch of the same customer in the State of So Paulo. Thus, as there was not an interstate transaction, the State Treasury of So Paulo applied the internal tax rate for the State of So Paulo, 18% in place of the tax rate of 7% applied to the prior operation. Considering that the loss was classified as probable, in June 2013 the Company adhered to the Special Installment Program for the payment of the debt less penalties and interest, and paid the amount of R$ 14.8 million, on July 8, 2013 in a single installment.
(iii)
Class Action In November 2008, a securities class action lawsuit was filed against the Company and some of its current and former officers and directors on behalf of purchasers of the Company's ADRs between April 7 and October 2, 2008. The complaint alleges violations of the US Securities Exchange Act, asserting that the Company failed to disclose information in connection with, and losses arising from, certain derivatives transactions. During our Board of Directors meeting in December 2012, the Company ratified the agreement under judicial mediation, where the Company and the other co-defendants agreed to pay the full amount of US$ 37.5 million (equivalent to R$ 76.6 million) to all holders of American Depositary Receipts (ADRs), from April 7 to October 2, 2008. On March 28, 2013, Fibria paid an amount of US$ 37.5 million (equivalent to R$ 75.4 million) and was reimbursed under the D&O policy, as agreed by the Company and the other co-defendants in 2012.
47 de 52

(iv)
Drawback Suspension tax benefit - Veracel During the construction of the pulp mill of the Veracel, part of the mill was acquired from a specific supplier. The mill was eligible to the tax benefit entitled Drawback Suspension which would provide exemptions on imports, in case the funds received to pay the supplier were received abroad. However, part of the mill was financed with funds from Brazil and, for this reason, the Federal Tax authority issued a tax assessment to the supplier and canceled the Drawback benefit. Veracels supplier entered an appeal according to the assessment received, which is still pending for judgment, and in parallel, the supplier filed an arbitration proceeding against Veracel in order to determine which company would be responsible for eventual damages in case supplier is considered guilty. In September 2013, the International Chamber of Commerce Arbitration Court decided that Veracel and its supplier shall share the potential damages in a ratio of 75% to Veracel and 25% to its supplier. Our exposure amounts to approximately R$ 45 million (equivalent to 50% of our interest in Veracel). Fibrias management, based on its internal and external legal advisory is evaluating the possibility of success regarding the matter and because of this, any provision for loss was recognized up now.
20 (a)
Employee benefits Medical assistance provided to retirees The Company entered into an agreement with the So Paulo State Pulp and Paper Industry Workers' Union to provide funding for a lifetime medical assistance plan ( SEPACO) for all of the Company's employees, their dependents (until they come of age), and their spouses (for life). The Company's policy determines that the cost of the benefits should be allocated from the date of hiring to the date on which the employee becomes eligible to receive the medical assistance benefit. Following the adoption of IAS 19/CPC 33(R1) - Employee benefits, the corridor method for recognizing actuarial gains and losses is no longer permitted, and for that reason the Company should recognize immediately in the balance sheet the effects of the actuarial gains or losses in the period in which they occur, within Other comprehensive income. The outstanding balance of actuarial obligations for the nine months ended September 30, 2013 was R$ 99,747.
48 de 52

21 (a)
Net revenue Reconciliation

September 30, 2013 Gross amount Sales taxes Discounts and returns (*) Net revenue (*) Mainly related to export customers' performance rebates. 5,799,233 (97,374) (742,204) 4,959,655 September 30, 2012 5,078,590 (99,800) (657,799) 4,320,991
(b)
Information about products The following table presents the net revenue segregated by the type of product, the volume and the respective destinations: September 30, 2013 Pulp Volumes (kilotons) Domestic market Foreign market September 30, 2012
335,504 3,421,305 3,756,809
390,007 3,456,509 3,846,516
Pulp revenue Domestic market Foreign market
371,743 4,532,563 4,904,306
361,230 3,910,148 4,271,378 1,110 361,230 3,910,148 49,613 4,320,991
Average price (in Reais per ton) Revenue Domestic market Foreign market Services
1,305 371,743 4,532,563 55,349 4,959,655
49 de 52

22
Financial results September 30, 2013 Financial expenses Interest on loans and financing Loans commission Financial charges on the partial repurchase of Bonds Other September 30, 2012
(438,315) (19,982) (343,413) (50,176) (851,886)
(516,814) (55,201) (150,917) (19,930) (742,862)
Financial income Financial investment earnings Other
77,357 9,763 87,120
123,510 12,975 136,485
Gains (losses) on derivative financial instruments Gains Losses
350,550 (463,216) (112,666)
334,869 (487,818) (152,949)
Gain (losses) on monetary and foreign exchange Loans and financing Other assets and liabilities
(581,019) 3,666 (577,353)
(756,558) 80,037 (676,521) (1,435,847)
Net financial result
(1,454,785)
50 de 52

23
Expenses by nature September 30, 2013 Cost of sales Depreciation, depletion and amortization Freight Salaries and benefits to employees Variable costs (1,335,190) (550,435) (303,699) (1,720,564) (3,909,888) Selling expenses Salaries and benefits to employees Commercial expenses (*) Operational leasing Depreciation and amortization charges Other expenses September 30, 2012 (1,311,913) (486,607) (322,045) (1,637,440) (3,758,005)
(12,566) (217,276) (997) (5,193) (16,649) (252,681)
(14,761) (192,637) (978) (9,517) (7,527) (225,420)
General and administrative and director fee expenses Salaries and benefits to employees Third-party services (consulting, legal and other) Depreciation and amortization charges Donations and sponsorship Other expenses
(85,641) (79,259) (17,035) (4,205) (25,772) (211,912)
(80,984) (73,833) (17,742) (7,476) (28,225) (208,260)
Other operating expenses, net Program of variable compensation to employees Changes in the fair value of biological assets Other
(41,205) 36,100 3,806 (1,299)
(40,994) 265,798 (7,432) 217,372
(*) Includes handling expenses, storage and transportation expenses and sales commission, among other items.
51 de 52

24 (a)
Earnings per share Basic
Continued operations September 30, 2013 Loss attributable to the shareholders of the Company Weighted average number of common shares outstanding Basic loss per share (in Reais) September 30, 2012
(519,417) 553,591,822 (0.938)
(751,530) 515,369,602 (1.458)
The weighted average number of shares in the presented periods are represented by the total number of shares which makes up the capital of the Company, a total of 553,934,646 shares for the nine months period ended September 30, 2013 and 2012, not including treasury shares, of which there were a total of 342,824 in the nine months ended September 30, 2013 and 342,822 shares in the nine months ended September 30, 2012. In the nine months ended September 30, 2013 and 2012 there were no changes in the quantity of Companys shares. (b) Diluted The Company has no debt convertible into shares or share purchase options. Consequently, there are no potential common shares for dilution purposes. 25 Explanatory notes not presented According to the requirements for disclosure contained in Circular-Letter CVM/SNC/SEP/ No. 003/2011, we presented explanatory notes to the annual financial statements detailing estimates of the fair value of financial instruments (Note 6), financial instruments by category (Note 7) credit quality of financial assets ( Note 8), financial and operational lease agreements (Note 21), advances to suppliers (Note 22), the tax amnesty and refinancing program (Note 25), long term commitments (Note 26), shareholder's equity (Note 27), benefits to employees (Note 28), and insurance (Note 33), impairment tests (Note 36), that we omitted in the September 30, 2013 interim financial information because the assumptions, operations and policies have not seen any relevant changes compared to the position presented in the financial statements as at December 31, 2012. In addition, the Company no longer has reportable segments to present as at September 30, 2013, therefore the Note regarding segment information was excluded.
52 de 52
3Q13 Results
Record EBITDA of R$762 million in 3Q13, with margin of 41%. The lowest dollar net debt to EBITDA ratio since Fibrias creation.
Key Figures Pulp Production Pulp Sales Unit 000 t 000 t 3Q13 1,347 1,301 2Q13 1,291 1,269 3Q12 1,322 1,268 3Q13 vs 2Q13 4% 3% 3Q13 vs 3Q12 2% 3% 9M13 3,901 3,757 9M12 3,929 3,846 9M13 vs Last 12 9M12 months (LTM) -1% -2% 5,271 5,267
Net Revenues Adjusted EBITDA(1) EBITDA margin Net Financial Result(2) Net Income (Loss)
R$ million R$ million % R$ million R$ million
1,841 762 41% (226) 57
1,669 647 39% (1,162) (593)
1,556 573 37% (393) (212)
10% 18% 2 p.p. -81% -
18% 33% 4 p.p. -42% -
4,960 1,973 40% (1,455) (512)
4,321 1,500 35% (1,436) (746)
15% 32% 5 p.p. 1% -31%
6,813 2,726 40% (1,715) (464)
Free Cash Flow (3)
R$ million
122
234
157
-48%
-22%
523
436
20%
922
Gross Debt (US$) Gross Debt (R$) Cash(4) Net Debt Net Debt/EBITDA LTM Net Debt/EBITDA LTM (US$)(5)
US$ million R$ million R$ million R$ million x x
4,254 9,487 1,246 8,240 3.0 2.9
4,485 9,936 1,683 8,253 3.3 3.0
5,401 10,955 2,398 8,557 4.5 4.2
-5% -5% -26% 0% -0.3 x -0.1 x
-21% -13% -48% -4% -1.5 x -1.3 x
4,254 9,487 1,246 8,240 3.0 2.9
5,401 10,955 2,398 8,557 4.5 4.2
-21% -13% -48% -4% -1.5 x -1.3 x
4,254 9,487 1,246 8,240 3.0 2.9
(1) Adjusted by non-recurring and non-cash items | (2) Includes results from financial investments, monetary and exchange variation, mark-to-market of hedging and interest (3) Does not include the sale of assets | (4) Includes the hedge fair value | (5) For covenants purposes
3Q13 Highlights
Another round of bond buybacks amounting to US$223 million. Gross dollar debt reduction of US$1.1 billion in the last twelve months. Gross debt totaled R$9,487 million, 5% and 13% lower than in 2Q13 and 3Q12, respectively. Net Debt/EBITDA ratio of 2.9x in dollars (Jun/13: 3.0x | Sept/12: 4.2x), the lowest level since Fibrias creation. Rating outlook revision by Moodys from "Ba1/Stable" to "Ba1/Positive". The cost of dollar-denominated debt was 4.5% p.a. (2Q13: 4.7% p.a. | 3Q12: 5.2% p.a.). Scheduled maintenance downtime at the Jacare Mill successfully completed. Pulp production of 1.3 million tons, 4% and 2% higher than 2Q13 and 3Q12, respectively. LTM, production totaled 5.271 million tons. Pulp sales of 1.3 million tons, 3% higher than in 2Q13 and 3Q12. LTM sales reached 5.267 million tons, equivalent to 100% of period production. Cash cost was at R$501/ton, 8% down on 2Q13, mainly due to the reduced impact from the scheduled maintenance downtimes. Compared to 3Q12, the increase was 2%. Excluding the effect of the downtimes, the cash cost was R$482/ton, 1% less than 2Q13 and 5% higher than 3Q12. Adjusted EBITDA of R$762 million, 18% and 33% up on 2Q13 and 3Q12, respectively, mainly due to the average dollar appreciation against the real. LTM EBITDA totaled R$2,726 million, 21% higher than 2012. EBITDA margin of 41%, 2 p.p. and 4 p.p. higher than in 2Q13 and 3Q12, respectively. EBITDA/ton for the quarter of R$585 (US$256/ton), 15% up on 2Q13 and 30% up year-on-year. Free cash flow of R$122 million in 3Q13, down 46% in the quarter due to the increase in accounts receivable. In the last 12 months, free cash flow reached R$922 million (US$90/ton), representing a 7% free cash flow yield on 09/30/2013. Net income of R$57 million (2Q13: R$(593) million | 3Q12: R$(212) million). Fibria was selected industry leader in 2013/2014 by the Dow Jones World and Emerging Markets Sustainability Indices of the NYSE.
Subsequent Events
Fibria received awards in the Governance, Profitability, Transparency and Sustainability areas (see page 16). 2nd Investor Tour held at the Trs Lagoas Mill on October 2nd. Market Cap Sept/30/2013: R$14.1 billion | US$6.4 billion FIBR3: R$25.47 FBR: US$11.52 Shares Issued: 553,934,646 common shares
10 am (US-EDT) English | Telephone: +1 412 317-6776 Webcast: www.fibria.com.br/ir
Conference Call: Oct/23/2013

9 am (US-EDT) Portuguese | Telephone: +55 11 4688-6361
Investor Relations Guilherme Cavalcanti Andr Gonalves Camila Nogueira Roberto Costa Isabela Cerbasi ir@fibria.com.br | +55 (11) 2138-4565
The operational and financial information of Fibria Celulose S.A. for the 3rd quarter of 2013 (3Q13) was presented in this document based on consolidated numbers and is expressed in reais, unaudited and prepared in accordance with Corporate Law. The results of Veracel Celulose S.A. were included in this document based on 50% proportional consolidation, with elimination of all intercompany transactions.
Index
Executive Summary ................................................................................................................. 4 Pulp Market.. 5 Production and Sales..6 Results Analysis ...................................................................................................................... 7 Financial Result ....................................................................................................................... 9 Net Income ............................................................................................................................ 11 Indebtedness ......................................................................................................................... 12 Capital Expenditures .............................................................................................................. 14 Free Cash Flow ..................................................................................................................... 14 Capital Market........................................................................................................................ 15 Subsequent Events ................................................................................................................ 16 Appendix I - Revenue x Volume x Price ................................................................................ 17 Appendix II Income Statement ............................................................................................ 18 Appendix III - Balance Sheet.................................................................................................. 19 Appendix IV Statement of Cash Flows ................................................................................ 20 Appendix V - EBITDA and adjusted EBITDA breakdowns (CVM Instruction 527/2012) ......... 21 Appendix VI - Economic and Operational Data ...................................................................... 22
Executive Summary
Seasonality effects fueled the increase in pulp producers inventories at the beginning of the quarter. Despite the fact that hardwood pulp inventories reached higher levels than in the previous year, signs of a recovery in demand were observed throughout the quarter. This was demonstrated by both increases in market pulp sales as a whole and Fibrias own sales, including in the year on-year comparison. Uncertainties in the Brazilian and global macroeconomic scenarios continued to drive up the US currency, which reached R$2.45 in August. The strenghtening of the dollar during the quarter helped Fibria record its highest-ever quarterly EBITDA figure. Coupled with the increase in operating income in the last twelve months, the focus on debt reduction drove dollar leverage down to its lowest level since the Companys creation. Pulp production totaled 1,347 thousand tons in 3Q13, 4% more than in 2Q13 due to the reduced impact of the scheduled maintenance downtimes in the Jacare Mill. Compared to the same period the year before, output moved up by 2% given that in addition to the Jacare stoppage, 3Q12 also had the scheduled maintenance downtime in the Trs Lagoas Mill. Sales volume totaled 1,301 thousand tons, 3% higher than in 2Q13 and 3Q12, due to increased pulp availability and greater sales volume in North America and Asia. In the last 12 months, Fibria's sales volume totaled 5,267 thousand tons, equivalent to 100% of period production. The cash cost of production was R$501/ton, 8% less than 2Q13, primarily due to the reduced impact of the scheduled maintenance downtimes. Compared to 3Q12, there was a 2% increase due to higher costs with wood and foreign exchange impacts. Excluding the effect of the downtimes, the cash cost came to R$482/ton, 5% more than in 3Q12, less than inflation over the last twelve months. For more information, see page 7.
Adjusted 3Q13 EBITDA totaled R$762 million, the highest quarterly result since Fibrias creation, with a margin of 41%. Compared to 2Q13, there was an increase of 18%, primarily due to the upturn in average net prices in reais (+8%) and higher sales volume. Compared to 3Q12, EBITDA climbed by 33% and the margin widened by 4 p.p. This was also due to higher net pulp prices in reais (+15%), reflecting the average dollar appreciation against the real (13%), as well as the upturn in dollar pulp prices in the last 12 months. LTM EBITDA totaled R$2,726 million, 21% higher than the R$2,253 million recorded in 2012, accompanied by a margin of 40%. FCF for the quarter was R$122 million, versus R$234 million in 2Q13 and R$157 million in 3Q12 (further details on page 15), due to an increase in accounts receivable, which impacted working capital. It is worth noting that if we consider sales of R$161 million in September, whose letters of credit had a cash impact at the beginning of 4Q13, FCF in the last 12 months came to R$1,083 million, with a yield of 7.7% at the close of September.
The financial result was a net expense of R$226 million in 3Q13 compared to a net expense of R$1,162 million in 2Q13. The change was primarily due to the reduced impact of the exchange variation on debt (0.6% appreciation of the closing dollar rate). This quarter, the Company conducted new bond buyback transactions (mainly of those maturing in 2020 and 2021), resulting in non-recurring accounting and financial effects, which impacted the financial result. The 42% decline over 3Q12 was due to lower costs incurred on the repurchase of bonds maturing in 2020, and a 13% reduction in interest expenses, despite the 10% appreciation of the dollar against the real, reflecting the Company's efforts to reduce its debt costs.
The debt repurchases mentioned in the previous paragraph are in line with its strategy of reducing gross debt, which will generate annual savings of US$16 million. Expenses related to these repurchases negatively impacted the financial result in the amount of R$56 million. The average cost of foreign currency debt fell to 4.5% p.a. at the end of 3Q13.
As a result of period amortizations, gross dollar-denominated debt fell by 5% over 2Q13 and 21% (or US$1.1 billion) over 3Q12. The net debt/EBITDA ratio in dollars was at 2.9x, Fibrias lowest ever figure. 4
The Company closed 3Q13 with a liquidity position of R$2.6 billion, representing 1.7x short-term debt, comprising cash of R$1,246 million and revolving credit facilities of R$1,415 million that, unused, reinforces the company's liquidity. The cash reduction was mainly due to bonds repurchase and adhered to the minimum cash policy.
As a result of the above factors, Fibria recorded net income of R$57 million in 3Q13, versus a loss of R$593 million in 2Q13 and a loss of R$212 million in 3Q12 (for more information, see page 12). Excluding the effects of the dollar appreciation on foreigncurrency-denominated debt (R$55 million) and the expenses related to the bond buyback transaction (R$56 million), net income for the quarter would have totaled approximately R$144 million.
Pulp Market
The beginning of 3Q13 was marked by seasonality in the Northern Hemisphere, due to a historical weakening of demand during the European summer vacation period. Despite the fact that the recovery of European demand has taken longer than expected, sales of eucalyptus pulp posted a positive result in the annual comparison, moving up by 4.9% year-on-year in the first eight months of 2013, according to the Pulp and Paper Products Council (PPPC). In fact, there was a substantial sales upturn in most of the regions of the world, especially in North America and China, where growth came to 16.7% and 15.5%, respectively.
World Eucalyptus Market Pulp Shipments ('000 ton)
1800
1600
1400 1200
2012
1000
800 600
2013
Jan Feb Mar Apr Mai Jun Jul Aug Sep Oct Nov Dec
Source: PPPC
The tissue market was the primary driver of the strong demand for eucalyptus pulp, pushed by the startup of new machines since mid-2012. According to the PPPC, global production of tissue increased by 2.4% from January to July 2013. The list of announced capacity expansion projects includes approximately 3.7 million tons of new tissue volume that will enter the global market in 2013-2014.
The difference between hardwood and softwood pulp prices in the European market widened in 3Q13. Although the possibilities for substitution between the two pulp grades have been limited recently, the increase in the price gap continues to be a positive indicator for hardwood pulp demand. After peaking at almost US$200/ton at the end of 2011, the difference fell sharply throughout 2012, reaching US$12.61 in September 2012 before increasing gradually over the last 12 months and reaching US$87.83 in September 2013.
In August, the closure of the Sdra Tofte mill in Norway was confirmed, eliminating 170 thousand tons of hardwood pulp from the market giving total closures of almost 1.2 million tons in 2013 to date. The list of closures this year also includes the Jari mill in Brazil (420 thousand tons), SAPPIs Cloquet mill conversion to dissolving pulp, in the U nited States (450 thousand tons), and the indefinite shutdown of the Cellulose du Maroc mill in Morocco (160 thousand tons).
Hardwood startups and closures until 3Q13
Eldorado, Trs Lagoas
1500 Cellulose du Maroc Sdra, Tofte
-160 -170 -450 -420
Sappi, Cloquet
Jari
Capacity Change -1000 -500 0
300 500 1000 1500 2000
These closures together with the postponement of new capacities startup originally, scheduled to enter the market in the coming months, should limit pulp supply in the last quarter. Additionally, demand traditionally increases in the final months of the year, which should maintain the market pressured on the market during 4Q13.
Production and Sales

Production ('000 t) Pulp Sales Volume ('000 t) Domestic Market Pulp Export Market Pulp Total sales 116 1,185 1,301 101 1,168 1,269 127 1,141 1,268 15% 2% 3% -9% 4% 3% 336 3,421 3,757 390 3,456 3,846 -14% -1% -2% 476 4,791 5,267 3Q13 1,347 2Q13 1,291 3Q12 1,322 3Q13 vs 2Q13 4% 3Q13 vs 3Q12 2% 9M13 3,901 9M12 3,929 9M13 vs 9M12 -1% Last 12 months 5,271
In 3Q13, Fibria undertook a scheduled maintenance stoppage at the Jacare Mill, which was in line with the Companys annual plan and budget. Pulp production totaled 1,347 thousand tons in the quarter, 4% and 2% up on 2Q13 and 3Q12, respectively, primarily due to fewer mills undergoing scheduled maintenance. In the first nine months, production fell 1% year-on-year. Pulp inventories closed the quarter at 827 thousand tons (56 days), 6% higher than in 2Q13 (781 thousand tons and 53 days) and in line with 3Q12 (828 thousand tons and 56 days).
The calendar for scheduled maintenance downtimes in Fibrias mills in 2013 is shown below. Only the downtime in the Jacare Mill impacted 3Q13. There is no maintenance scheduled in the mills in 4Q13.
Fibria's Maintenance Downtimes Schedule 2013 Mill Aracruz "A" Aracruz "B" Aracruz "C" Jacare Trs Lagoas Veracel Jan Feb Mar May Jun Jul Aug
Pulp sales totaled 1,301 thousand tons, 3% more than in 2Q13, despite the typical seasonality of the period. Compared to 3Q12, sales were 3% higher, mainly due to the increased availability of production and higher sales volume to North America and Asia. In the last 12 months, sales volume came to 5,267 thousand tons, equivalent to 100% of period output. In 3Q13, sales to Europe accounted for 35% of the total, followed by North America with 31%, Asia with 26% and Latin America with 8%.
Results Analysis
Net Revenues (R$ million) Domestic Market Pulp Export Market Pulp Total Pulp Portocel Total 3Q13 140 1,681 1,821 20 1,841 2Q13 108 1,543 1,651 18 1,669 3Q12 135 1,403 1,538 18 1,556 3Q13 vs 2Q13 30% 9% 10% 11% 10% 3Q13 vs 3Q12 4% 20% 18% 9% 18% 9M13 372 4,533 4,904 56 4,960 9M12 361 3,910 4,271 50 4,321 2012 vs 2011 3% 16% 15% 12% 15% Last 12 months 519 6,220 6,739 74 6,813
Net revenue totaled R$1,841 million in 3Q13, 10% up on 2Q13, primarily due to the upturn in pulp prices in reais, in turn explained by the 11% average appreciation of the dollar and higher sales volume. In relation to 3Q12, there was an 18% increase in pulp revenue, due to the 15% increase in average net prices in reais, in turn caused by the 13% average dollar appreciation, and the 4% upturn in pulp price in dollars. In the last 12 months, net revenue reached R$6,813 million, 10% higher than in the previous 12-month period. The cost of goods sold (COGS) was 3% and 8% higher than in 2Q13 and 3Q12, respectively. It is worth mentioning that due to the effects of inventory turnover (56 days in 3Q13), COGS also reflects the production cash cost from the previous quarter. Consequently, there was a quarter-on-quarter increase in cash COGS, despite the drop in the production cash cost in 3Q13, as well as an upturn in logistics costs (mainly due to the foreign exchange effect), and higher sales volume. Compared to the same period last year, the increase was due to the impact of foreign exchange and the sales mix on logistics costs, higher sales volume and the increase in the production cash cost. The cash cost of pulp production in 3Q13 was R$501/ton, 8% down on 2Q13, mainly due to fewer mills undergoing maintenance (Jacare only in 3Q13), partially offset by the increase from the appreciation of the dollar of R$8/ton. The 2% quarter-on-quarter upturn was due to the higher cost of wood (higher share from third parties 3Q13: 11% | 3Q12: 8% and higher transportation costs), and the 13% average dollar appreciation, partially offset by the reduced impact from scheduled maintenance stoppages and lower mill consumption as a result of initiatives to reduce the use of chemicals and energy (e.g. the Energy Master Plan in Jacare a modernization project to improve energy efficiency and reduce gas and steam consumption). Excluding the effects of the downtimes, the cash cost was R$482/ton, 1% below 2Q13 but 5% more than in 3Q12, due to the factors explained above. Inflation over the last 12 months, as measured by the IPCA index, was 5.9% and the appreciation of the dollar against the real was 13%. Currently almost 15% of the cash cost is tied to the dollar. The following table shows the evolution of the production cash cost and contains explanations for the most significant annual and quarterly variations:
Pulp Cash Cost 2Q13 Exchange rate Maintenance Downtime Lower expenditure on chemicals and energy (higher operating stability) Others 3Q13
R$/t 546 8 (39) (9) (5) 501
Production Cash Cost (R$/t)

546 491 501
3Q12
2Q13
3Q13
Pulp Cash Cost 3Q12 Wood (higher third party wood and higher transportation costs) Exchange rate Maintenance Downtime Lower consumption of chemicals and energy (Cost reduction program - ex: Energy Master Plan) Higher utilities results (power sale) Others 3Q13
R$/t 491 27 10 (14) (8) (3) (2) 501
Cash Cost ex-Downtime (R$/t)

488
457
482
3Q12
2Q13
3Q13
Production Cash Cost 3Q12

Other Fixed 4%
Production Cash Cost 3Q13

Personnel 6% Maintenance 13%
Personnel 6% Maintenance 15% Other variable 2% Fuel 11%
Other Fixed 4%
Wood 41%
Other Variable 1%
Fuel 11%
Wood 44%
Chemicals 21% Variable costs
Chemicals 21% Fixed costs
Selling expenses totaled R$91 million in 3Q13, flat over 2Q13 and 21% up on 3Q12 due to higher spending on terminals related to higher sales volumes and the 13% appreciation of the average dollar against the real. It is worth noting that the selling expenses to net revenue ratio remained stable at 5% in both periods. Administrative expenses totaled R$74 million, stable in relation to 2Q13 and 6% down on 3Q12, chiefly due to lower spending on donations and outsourced services. Other operating income (expenses) totaled an expense of R$11 million in 3Q13, compared with revenue of R$12 million in 2Q13. This was due in large part to the impact of the R$36 million fair value adjustment on biological assets in the previous quarter. The reduction over the R$17 million expense recorded in 3Q12 was due to improved results from the write-off of certain fixed asset items. 8
EBITDA (R$ million) and EBITDA Margin (%)
EBITDA/t (R$/t)
41%
39% 37% 573 452 647 509
762 585
3Q12
2Q13
3Q13
3Q12
2Q13
3Q13
Adjusted EBITDA reached a record R$762 million in 3Q13, with a margin of 41%. In comparison with 2Q13, EBITDA increased by 18%, mainly due to higher average net prices in reais, driven by higher sales volume and the 11% average appreciation of the dollar against the real. Compared with 3Q12, EBITDA increased by 33%, followed by an increase of 4 p.p. in the EBITDA margin, due to the 15% rise in the average net pulp price in reais, in turn driven by the 13% dollar appreciation against the real, and the 4% rise in dollar pulp prices. The graph below shows the main variations during the quarter:
EBITDA 2Q13 x 1Q13 (R$ million)
173 1
744
(1) (23)
18
762
647
(1)
646
40 (42)
(50)
2Q13 Adjusted Non-recurring 2Q13 EBITDA EBITDA effects / noncash
Volume
Price
FX
COGS
Selling
G&A
Other oper. expenses
EBITDA 3Q13 Non-recurring Adjusted effects / non- EBITDA 3Q13 cash
Financial Result
(R$ million) Financial Income (including hedge result) Interest on financial investments Hedging(1) Financial Expenses Interest - loans and financing (local currency) Interest - loans and financing (foreign currency) Monetary and Exchange Variations Foreign Exchange Variations - Debt Foreign Exchange Variations - Other Other Financial Income / Expenses(2) Net Financial Result
(1) (2)
3Q13 60 24 36 (144) (51) (93) (68) (55) (13) (74) (226)
2Q13 (180) 20 (200) (140) (43) (97) (595) (650) 55 (247) (1,162)
3Q12 (5) 36 (41) (166) (42) (124) (52) (45) (7) (170) (393)
3Q13 vs 2Q13 20% 3% 19% -4% -89% -92% -70% -81%
3Q13 vs 3Q12 -33% -13% 21% -25% 31% 22% 86% -56% -42%
9M2013 (36) 77 (113) (438) (135) (303) (577) (581) 4 (404) (1,455)
9M2012 (30) 122 (152) (518) (134) (384) (675) (756) 81 (212) (1,435)
9M2013 vs 9M2012 20% -37% -26% -15% 1% -21% -15% -23% -95% 91% 1%
Change in the marked to market (3Q13: R$(367) million | 2Q13: R$(407) million) added to received and paid adjustments. R$56 million out of R$74 million refer to financial charges from bonds buyback in 3Q13.
Interest from financial investments was R$24 million, 20% higher than in 2Q13, mainly due to the 12% period increase in the CDI rate. The 33% year-on-year decline is largely explained by the 26% reduction in the total amount of cash invested in favor 9
of period debt payments. Hedge transactions generated income of R$36 million, of which R$17 million was due to favorable changes in the fair value of the debt hedging instruments (see derivatives section - page 11). Interest expenses on loans and financing totaled R$144 million in 3Q13, 3% up on the previous quarter, mainly due to local currency interest accruals on NCEs contracted at the end of 2Q13 in the amount of R$498 million. The 13% decrease (R$22 million) over 3Q12 was primarily due to the reduction in dollar-denominated debt between the periods. Foreign-exchange on dollar-denominated debt (95% of the gross debt) amounted to R$55 million, versus an expense of R$650 million in 2Q13, mainly due to the lower period appreciation in the closing dollar rate (3Q13: R$ 2.23 | 2Q13: R$ 2.22), and the 2% reduction in the foreign currency debt. Compared to 3Q12, there was a R$10 million increase in the expense, as a result of the higher appreciation of the dollar against the real. Other financial income (expenses) amounted to an expense of R$74 million, R$173 million less than in 2Q13, chiefly due to fewer pre-payments of bonds maturing in 2020 and 2021, resulting in reduced accounting impacts from the expenses incurred with the buy-backs (R$56 million this quarter). The same factor explains the year-on-year variation. On September 30, 2013, the mark-to-market of derivative financial instruments was negative by R$367 million (a negative R$13 million from the operational hedge and a negative R$354 million from the debt hedge), versus a negative R$407 million on June 30, 2013, resulting in a positive variation of R$40 million. This result was mainly due to the appreciation in the fair value of the dollar options (zero cost collars), due to new transactions and the maturity of existing ones. Cash disbursements from transactions that matured in the period totaled R$4 million. Thus, the net impact on the financial result was positive by R$36 million. The following table shows Fibrias open hedging instrument positions at the end of September :
Notional Swaps Maturity Sept/13 Jun/13 Receive US Dollar Libor (2) Brazilian Real CDI (3) Brazilian Real TJLP (4) Brazilian Fixed (5) Receive Total (a) Pay US Dollar Fixed (2) US Dollar Fixed (3) US Dollar Fixed (4) US Dollar Fixed (5) may/19 aug/20 jun/17 dec/17 $ 571 $ 428 $ 294 $ 284 $ 602 $ 300 $ 313 $ 294 may/19 aug/20 jun/17 dec/17 $ 571 R$ 831 R$ 478 R$ 580 $ 602 R$ 541 R$ 509 R$ 600
Fair Value Sept/13 Jun/13
R$ 1,275 R$ 1,024 R$ R$ 457 465
R$ 1,336 R$ R$ R$ 711 487 479
R$ 3,221
R$ 3,013
R$ (1,263) R$ (1,318) R$ (1,130) R$ R$ R$ (656) R$ (526) R$ (828) (699) (539)
Pay Total (b) Net (a+b) Options US Dollar Option Total: Options (c) up to 12M $ 912
R$ (3,575) R$ (3,384) R$ (354) R$ (371)
$ 996 R$ R$
(13) R$ (13) R$
(36) (36)
Net (a+b+c)
R$
(367) R$
(407)
10
Zero cost collar operations have become more attractive than NDFs in the current foreign exchange scenario, especially due to the volatility of the dollar, since they can lock-in exchange rates while limiting negative impacts in the event of a significant depreciation of the real. These instruments allow for the protection of a foreign exchange interval favorable to cash flows, within which Fibria does not pay or receive the amount of the adjustments. In addition to protecting the company in these scenarios, this feature also allows it to achieve greater benefits in terms of export revenues should the dollar move up. The contracted operations currently have a maximum term of 12 months, hedging 37% of foreign exchange exposure, and their sole purpose is to protect cash flow exposure. The derivative instruments used to hedge debt (swaps) are designed to transform real-denominated debt into dollardenominated debt or hedge existing debt against adverse swings in interest rates. Consequently, all of the swap asset legs are matched with the cash flows from the respective hedged debt. The fair value of these instruments corresponds to the net present value of the expected cash flows until maturity (52 months average) and therefore has a limited cash impact. All of the financial instruments were contracted in accordance with the guidelines established by the Market Risk Management Policy, and are conventional instruments without leverage or margin calls, duly registered with the CETIP (Securities Custody and Financial Settlement Center), with cash impacts only upon their respective maturities and amorti zations. The Companys Governance, Risk and Compliance area is responsible for the verification and control of positions involving market risk and independently reports directly to the CEO and other areas and committees involved in the process, ensuring implementation of the policy. Fibrias Treasury area is responsible for the execution and management of financial operations .
Net Income
The Company posted 3Q13 net income of R$57 million, versus a net loss of R$593 million in 2Q13, primarily due the improved financial result, thanks to the reduced effects of the dollar appreciation (R$68 million) and the lower accounting and financial impact of the debt security repurchases. Excluding the effects of the exchange variation and the bond buyback expense, net income for the quarter would have come to approximately R$144 million. The year-on-year variation was due to the higher operating and financial result.
Net income (R$ million) 762 36 (55) (56) (120)
(50)
(458)
Adjusted Ebitda Debt Exchange Variation Bond buy-back expenses Mtm change - debt and operational hedge Interest net Depreciation, Amortization and Depletion
(2)
Income tax/Social Contribution Others (*)
57
Net income 3 Tri 13
(*) Includes non recurring/non cash expenses, other exchange and currency variations and other financial income/expenses
11
Indebtedness
Unit Gross Debt Gross Debt in R$ Gross Debt in US$(1) Average maturity Cost of debt (foreign currency) Cost of debt (local currency) Short-term debt Cash in R$ Cash in US$ Fair value of derivative instruments Cash
(2)
Sept/13 9,487 474 9,012 54 4.5% 7.4% 16% 787 826 (367) 1,246 8,240 3.0 2.9
Jun/12 9,936 696 9,241 57 4.7% 8.4% 8% 1,434 656 (407) 1,683 8,253 3.3 3.0
Sept/12 10,955 720 10,235 65 5.2% 8.1% 10% 1,499 1,155 (256) 2,398 8,557 4.5 4.2
Sept/13 vs Jun/12 -5% -32% -2% -3 -0.2 p.p. -1.0 p.p. 8 p.p. -45% 26% -10% -26% 0% -0.3 -0.1
Sept/13 vs Sept/12 -13% -34% -12% -11 -0.7 p.p. -0.7 p.p. 6 p.p. -47% -28% 43% -48% -4% -1.5 -1.4
R$ million R$ million R$ million months % p.a. % p.a. % R$ million R$ million R$ million R$ million R$ million x
(3)
Net Debt Net Debt/EBITDA (in R$) Net Debt/EBITDA (in US$)
(1) Includes BRL to USD sw ap contracts. The original debt in dollars w as R$6,969 million (73% of the total debt) and debt in reais w as R$2,518 million. (2) Includes the fair value of derivative instruments (3) For covenant purposes
The Company closed September 2013 with gross debt of R$9,487 million, R$449 million (US$231 million) less than in 2Q13 and R$1.5 billion (US$1.1 billion) down on 3Q12, mainly thanks to the results of the ongoing debt management initiatives. Fibria prepaid R$502 million (US$223 million) in debt securities, whose rates were considered unfavorable, in the third quarter, R$434 million (US$193 million) of which from bonds maturing in 2020 and 2021 with interest rates of 7.50% p.a. and 6.75% p.a., respectively. Total buybacks will generate annual savings of US$16 million in interest payments. The graph below shows the changes in gross debt during the quarter:
Gross Debt (R$ million)

162
9,936
144
55
19
9,487
(829)
Gross Debt Set/13
Loans
Principal/Interest Payment
Interest Accrual
Foreign Exchange Variation
Others
Gross Debt Set/13
The average cost of local currency bank debt in September 2013 was 7.4% p.a. (Jun/13: 8.4% p.a. | Sept/12: 8.1% p.a.), and the cost in foreign currency was 4.5% p.a. (Jun/13: 4.7% p.a. | Sept/12: 5.2% p.a.) 0.2 p.p. down on 2Q13, chiefly due to the partial repurchase of bonds maturing in 2020 and 2021, with respective coupons of 7.5% p.a. and 6.75% p.a. The remaining balance of these securities stood at R$ 2,804 million, with market rates of 6.02% (2020) and 5.56% (2021) at the close of 3Q13. The Company will continue to seek opportunities to reduce its more expensive debt. The graphs below show Fibrias indebtedness by instrument, index and currency (including debt swaps):
12
Gross Debt by Type 3% 4% 10%
Gross Debt by Index 3% 4% 16%
Gross Debt by Currency 5%
29%
19% 34%
Prepayment BNDES Trade Finance (ST) Bond ECN ECAs
76%
95%
Libor TJLP
Pre Fixed Others Local currency Foreign currency
The average maturity of the total debt balance was 54 months in September 2013, versus 57 months in June 2013 and 65 months in September 2012. The prepayment of bonds maturing in 2020 and 2021 was not a significant factor in the average maturity reduction in the quarterly comparison. The graph below shows the amortization schedule of Fibrias total debt :
Amortization Schedule (R$ million)
2,091 144
1,275
393 256 89 167 2013 882 2014 802 440 362 2015
1,208
1,366 942 97 725 417 126 599 2019 2020 2021 1,947 1,269 26 22 4 2022 5 5 0 2023
791
496 289 502 2016 712 2017
525 2018
Also on September 30, cash and cash equivalents totaled R$1,246 million, including the negative mark-to-market of hedging instruments totaling R$367 million. Excluding this impact, 49% of cash was invested in local-currency government bonds and fixed income, and the remainder in short and medium-term investments abroad. Since May 2011, the Company has had revolving credit facilities in the amount of US$500 million available for a period of four years (as of the contract date). This facility, although not used, helps improve the Company's liquidity position. In April 2013, the Company took out a new 5-year credit line totaling R$300 million, at 100% of the CDI plus 1.5% p.a. when utilized (0.5% when on stand-by). Thus, in addition to the current cash position of R$1,246 million, the Company has R$1,415 million available in additional resources that have yet to be utilized in the form of stand-by credit facilities, which have immediate liquidity. Taking this into consideration, the cash to short-term net debt ratio was 1.7x, in line with Fibrias minimum cash policy .
13
The graph below shows the evolution of Fibrias debt balance since Sept/12:
Net Debt / EBITDA (x)
(R$) (US$) 4.5 4.2 8,557
3.4 3.3
3.1 3.1
3.3 3.0 8,253
3.0 2.9 8,240
7,745
7,516
Jun/12
Sept/12
Dec/12
Mar/13
Sept/13
Net Debt (R$ million)
Capital Expenditures
(R$ million) Industrial Expansion Forest Expansion Subtotal Expansion Safety/Environment Forestry Renewal Advance for wood purchase (partnership program) Maintenance, IT, R&D, Modernization Subtotal Maintenance 50% Veracel Total Capex 3Q13 4 12 16 8 213 40 47 308 19 343 2Q13 15 15 6 198 21 81 307 28 350 3Q12 17 17 13 183 16 41 253 16 286 3Q13 vs 2Q13 -17% 8% 22% 8% 89% -42% 0% -33% -2% 3Q13 vs 3Q12 -27% -5% -40% 17% 150% 15% 22% 16% 20% 9M13 4 51 55 17 565 69 175 825 60 941 9M12 3 50 53 39 495 67 110 711 48 812 9M13 vs 9M12 3% 4% -56% 14% 3% 59% 16% 25% 16% Last 12 months 5 67 72 26 724 79 230 1,058 77 1,208
Capex totaled R$343 million in 3Q13, in line with the previous quarter. The year-on-year upturn was due to increased expenditure on standing timber and larger payments in advance on wood purchases from third parties. Capex in the last 12 months came to R$1,208 million, in line with the Companys full-year guidance of R$1,244 million.
Free Cash Flow

(R$ million) Adjusted EBITDA (-) Capex including advance for wood purchase (-) Interest (paid)/received (-) Income tax (+/-) Working Capital (+/-) Others Free Cash Flow (1)(2)
(1)
3Q13 762 (343) (92) (4) (189) (12) 122
2Q13 647 (350) (188) (12) 151 (14) 234
3Q12 573 (286) (111) 3 (22) 157
9M13 1,973 (941) (360) (20) (99) (30) 522
9M12 1,500 (812) (362) (4) 114 436
Last 12 months 2,726 (1,208) (518) (31) 17 (64) 922
Do es no t include the sale o f assets and the equity acquisitio n o f Ensyn Do es no t include the payment o f the expenses related to bo nds buyback
(2)
14
The working capital result was negative by R$189 million, versus a positive R$151 million in 2Q13. The reduction was mainly due to the increase in the accounts receivable, which was driven by higher invoicing towards the end of the quarter and an increase in the average receivables in the period. It is worth mentioning that Fibria closed the quarter with R$161 million in receivables tied to letters of credit, with insufficient time to forfeit such invoices. If such transaction had taken place in 3Q13 this revenue had been booked, working capital would have been negative by only R$28 million. The working capital line accounts for the main variation in Fibrias free cash flow (FCF) in comparison with both previous periods, which was partially offset by higher EBITDA and lower interest payments in the current quarter. Given sales of R$161 million in September, whose letters of credit had a cash impact at the beginning of 4Q13, LTM free cash flow came to R$1,083 million, representing a free cash flow yield of 7.7% on September 30.
Capital Market
Equities
100
Average Daily Trading Volume (US$ million)

Daily average: US$ 34.4 million
6 5 4 3 2
Average Daily Trading Volume (million shares)

Daily average: 3.0 million shares
50
1
0 Jul-13 0 Jul-13
Aug-13
BM&FBovespa
Sep-13
NYSE
Aug-13
Sep-13
BM&FBovespa
NYSE
Average daily trading volume of Fibrias stock was approximately 3 million shares, 9% down on 2Q13, while daily financial volume averaged US$34.4 million (US$19.4 million on the BM&FBovespa and US$15 million on the NYSE), 6% less than in 2Q13.
Fixed Income
September 30, 2013 7.2 6.0 5.6 2.6 June 28, 2013 7.5 5.8 5.6 2.5 September 28, 2012 7.0 6.1 5.8 1.6 Sep/13 vs. Jun/13 -0.3 p.p. 0.2 p.p. -0.0 p.p. 0.1 p.p. Sep/2013 vs. Sep/2012 0.2 p.p. -0.1 p.p. -0.2 p.p. 1.0 p.p.
Yield to call Fibria 2019 Fibria 2020 Fibria 2021 Treasury 10 Years
Unit % % % %
Price Fibria 2019 Fibria 2020 Fibria 2021
Unit USD/k USD/k USD/k
September 30, 2013 110.0 108.0 107.1
June 28, 2013 108.8 109.4 107.2
September 28, 2012 112.4 108.3 106.3
Sep/13 vs. Jun/13 1% -1% 0%
Sep/2013 vs. Sep/2012 -2% 0% 1%
15
Subsequent Events
Awards
Fibria received awards in the areas of transparency, financial performance, corporate governance and sustainability: - The newspaper Valor Econmico named Fibria Company of the Year, from among all industries. The company was also ranked first in value generation and net revenues in the pulp &paper segment. - It was placed among the most transparent publicly-held companies in Brazil by ANEFAC-FIPECAFI-SERASA EXPERIAN for the quality of its financial statements in 2012. - Ranked 2
nd
in the "The Best Companies for Shareholders" award by Capital Aberto magazine, among those companies with
more than R$15 billion in assets. This award highlights business profitability, share profitability (EVA), liquidity, corporate governance and sustainability. - poca Negcios 360 magazine ranked Fibria in 1 place in the pulp & paper segment in both the Corporate Governance and Vision for the Future categories. - Selected for the fourth consecutive year by Institutional Investor's pulp & paper industry rankings in the CEO, CFO, IR Team and IR professional categories. - Selected by RobecoSAM (which evaluates the Dow Jones Sustainability Index family) as one of the 10 Game Changer Companies of the Future, the only company in Latin America to be so honored. - Selected as industry leader in the 2013/2014 NYSEs Dow Jones Sustainability Index (DJSI World) and Dow Jones Sustainability Index Emerging Markets (DJSI Emerging Markets).
st
2nd Investor Tour at the Trs Lagoas Mill

On October 2, Fibria held its 2
nd
Investor Tour at the Trs Lagoas (MS) Mill, in which 70 people took part, including analysts and
local and foreign investors. It featured presentations by Guilherme Cavalcanti, CFO and IRO, Marcelo Castelli, CEO, and Pyry representative Joo Cordeiro, as well as 20 other Fibria board members and executives. In the afternoon, participants visited the mill. The presentations are available at: http://fibria.infoinvest.com.br/ptb/s-17-ptb.html?idioma=ptb.
16
Appendix I - Revenue x Volume x Price *

3Q13 vs 2Q13 Sales (Tons) 3Q13 Pulp Domestic Sales Foreign Sales Total 115,691 1,185,462 1,301,154 101,531 1,167,735 1,269,267 140,249 1,681,206 1,821,454 107,898 1,543,238 1,651,137 1,212 1,418 1,400 1,063 1,322 1,301 13.9 1.5 2.5 30.0 8.9 10.3 14.1 7.3 7.6 2Q13 Net Revenue (R$ 000) 3Q13 2Q13 Price (R$/Ton) 3Q13 2Q13 3Q13 vs 2Q13 (%) Tons Revenue Avge Price
3Q13 vs 3Q12
Sales (Tons) 3Q13 3Q12
Net Revenue (R$ 000) 3Q13 3Q12
Price (R$/Ton) 3Q13 3Q12
3Q13 vs 3Q12 (%) Tons Revenue Avge Price
Pulp Domestic Sales Foreign Sales Total 115,691 1,185,462 1,301,154 127,499 1,140,737 1,268,236 140,249 1,681,206 1,821,454 134,508 1,403,178 1,537,686 1,212 1,418 1,400 1,055 1,230 1,212 (9.3) 3.9 2.6 4.3 19.8 18.5 14.9 15.3 15.5
9M13 vs 9M12
Sales (Tons) 9M13 9M12
Net Revenue (R$ 000) 9M13 9M12
Price (R$/Ton) 9M13 9M12
9M13 vs 9M12 (%) Tons Revenue Avge Price
Pulp Domestic Sales Foreign sales Total 335,504 3,421,305 3,756,810 390,007 3,456,509 3,846,516 371,743 4,532,563 4,904,306 361,230 3,910,148 4,271,378 1,108 1,325 1,305 926 1,131 1,110 (14.0) (1.0) (2.3) 2.9 15.9 14.8 19.6 17.1 17.6
*Does not include Portocel
17
Appendix II Income Statement

INCOME STATEMENT - CONSOLIDATED (R$ million) 3Q13 R$ Net Revenue Domestic Sales Foreign Sales Cost of sales Cost related to production Freight Operating Profit Selling and marketing General and administrative Financial Result Other operating (expenses) income Operating Income Current Income taxes expenses Deffered Income taxes expenses Net Income (Loss) Net Income (Loss) attributable to controlling equity interest Net Income (Loss) attributable to non-controlling equity interest Depreciation, amortization and depletion EBITDA Equity Fair Value of Biological Assets Fixed Assets disposals Accruals for losses on ICMS credits Tax Credits/Reversal of provision for contingencies EBITDA adjusted (*) 1,841 160 1,681 (1,380) (1,175) (205) 461 (91) (74) (226) (11) 60 (15) 13 57 54 3 458 744 (3) 24 (3) 762 AV% 100% 9% 91% -75% -64% -11% 25% -5% -4% -12% -1% 3% -1% 1% 3% 3% 0% 25% 40% 0% 0% 0% 1% 0% 41% 2Q13 R$ 1,669 126 1,543 (1,337) (1,157) (180) 332 (91) (73) (1,162) 12 (983) (1) 390 (593) (596) 2 466 646 (36) 39 23 (25) 647 AV% 100% 8% 92% -80% -69% -11% 20% -5% -4% -70% 1% -59% 0% 23% -36% -36% 0% 28% 39% 0% -2% 2% 1% -1% 39% 573 3Q12 R$ 1,556 153 1,403 (1,280) (1,109) (171) 276 (75) (78) (393) (17) (287) (6) 81 (212) (215) 2 433 539 9 25 AV% 100% 10% 90% -82% -71% -14% 18% -5% -5% -25% -1% -18% 0% 5% -14% -14% 0% 28% 35% 0% 0% 1% 2% 0% 37% 3Q13 vs 2Q13 3Q13 vs 3Q12 (%) (%) 10% 27% 9% 3% 2% 14% 39% -1% 1% -81% -193% -106% 1402% -97% -110% -109% 29% -2% 15% 0% 0% -108% 6% -87% 18% 18% 4% 20% 8% 6% 20% 67% 21% -6% -42% -36% -121% 155% -84% -127% -125% 50% 6% 38% 0% -135% -5% 33%
Income Statement - Consolidated (R$ million) 9M13 R$ Net Revenue Domestic Sales Foreign Sales Cost of sales Cost related to production Freight Operating Profit Selling and marketing General and administrative Financial Result Other operating (expenses) income LAIR Current Income taxes expenses Deffered Income taxes expenses Net Income (Loss) Net Income (Loss) attributable to controlling equity interest Net Income (Loss) attributable to non-controlling equity interest Depreciation, amortization and depletion EBITDA Equity Fair Value of Biological Assets Property, Plant and Equipment disposal Accruals for losses on ICMS credits Tax Incentive EBITDA adjusted 4,960 427 4,533 (3,910) (3,359) (550) 1,050 (253) (212) (1,455) (1) (871) (27) 386 (512) (519) 7 1,356 1,940 (36) 27 69 (28) 1,973 AV% 100% 9% 91% -79% -68% -11% 21% -5% -4% -29% 0% -18% -1% 8% -10% -10% 0% 27% 39% 0% -1% 1% 1% -1% 40% R$ 4,321 412 3,909 (3,758) (3,271) (487) 563 (225) (208) (1,436) 217 (1,090) (15) 358 (747) (753) 5 1,338 1,684 (266) 17 63 1,500 6M12 AV% 100% 10% 90% -87% -76% -11% 13% -5% -5% -33% 5% -25% 0% 8% -17% -17% 0% 31% 39% 0% -6% 0% 1% 0% 35% 9M 13 vs 6M 12 (%) 15% 4% 16% 4% 3% 13% 86% 12% 2% 1% -101% -20% 83% 8% -31% -31% 42% 1% 15% 0% -86% 58% 9% 0% 32%
18
Appendix III - Balance Sheet

BALANCE SHEET (R$ million) ASSETS CURRENT Cash and cash equivalents Securities Derivative instruments Trade accounts receivable, net Inventories Recoverable taxes Assets avaiable for sale Others NON CURRENT Derivative instruments Deferred income taxes Recoverable taxes Fostered advance Others Investments Property, plant & equipment , net Biological assets Intangible assets Sep/13 4,600 770 843 29 612 1,385 211 590 160 3,092 72 1,211 731 718 360 41 10,705 3,366 4,654 Jun/13 4,910 618 1,473 27 480 1,362 207 590 154 3,030 77 1,195 712 706 340 41 10,850 3,354 4,675 Dec/12 6,246 944 2,352 18 755 1,183 209 590 195 2,640 26 880 658 740 336 41 11,175 3,326 4,717 LIABILITIES CURRENT Short-term debt Derivative Instruments Trade Accounts Payable Payroll and related charges Tax Liability Dividends and Interest attributable to capital payable Liabilities related to the assets held for sale Others NON CURRENT Long-term debt Accrued liabilities for legal proceedings Deferred income taxes , net Tax Liability Derivative instruments Others SHAREHOLDERS' EQUITY - Controlling interest Issued Share Capital Capital Reserve Statutory Reserve Equity valuation adjustment Treasury stock Non controlling interest TOTAL SHAREHOLDERS' EQUITY TOTAL ASSETS 26,457 26,860 28,145 TOTAL LIABILITIES Sep/13 2,683 1,288 79 577 131 41 0 470 96 9,113 8,199 85 176 79 389 185 14,614 9,729 3 3,296 1,597 (10) 47 14,661 26,457 Jun/13 2,175 794 93 538 108 44 2 470 125 10,081 9,142 84 174 79 419 185 14,560 9,729 3 3,242 1,597 (10) 44 14,604 26,860 Dec/12 2,475 1,138 54 436 129 41 2 470 205 10,499 9,630 105 228 78 264 195 15,134 9,729 3 3,816 1,597 (10) 37 15,171 28,145
19
Appendix IV Statement of Cash Flows

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOW (R$ million) 3Q13 INCOME (LOSS) BEFORE TAXES ON INCOME Adjusted by (+) Depreciation, depletion and amortization (+) Unrealized foreign exchange (gains) losses, net (+) Change in fair value of derivative financial instruments (+) Fair value of biological assets (+) (Gain)/loss on disposal of property, plant and equipment (+) Interest and gain and losses in marketable securities (+) Interest expense (+) Financial charges of bonds repurchase transaction (+) Impairment of recoverable ICMS (+) Provisions and other (+) Tax Credits (+) Reversal of provision for contingencies Decrease (increase) in assets Trade accounts receivable Inventories Recoverable taxes Other assets/advances to suppliers Increase (decrease) in liabilities Trade payable Taxes payable Payroll, profit sharing and related charges Other payable Cash provided by operating activities Interest received Interest paid Income taxes paid NET CASH PROVIDED BY OPERATING ACTIVITIES Cash flows from investing activities Acquisition of property, plant and equipment and forest Advance for wood acquisition from forestry partnership program Marketable securities, net Proceeds from sale of property, plant and equipment Derivative transactions settled Advance received related to assets held for sale Installments paid for acquisition of Ensyn Others NET CASH USED IN INVESTING ACTIVITIES Cash flows from financing activities Borrowings Repayments - principal amount Premium paid in the bonds repurchase transaction Other NET CASH USED IN FINANCING ACTIVITIES Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 162 (704) (43) (3) (588) (6) 153 618 770 962 (1,590) (146) 7 (767) (1) (241) 859 618 512 (1,609) (62) 2 (1,157) 1 (817) 1,460 643 1,143 (3,102) (231) 1 (2,189) (13) (174) 944 770 662 (1,973) (62) 2 (28) 7 261 382 643 1 281 (303) (40) 618 9 (4) (0) (57) (329) (21) 279 17 (2) (270) (16) 237 14 (74) 0 (109) (873) (69) 1,477 47 (19) 1 565 (745) (66) (326) 21 (110) 200 0 (1,027) 33 (125) (4) 465 28 (217) (12) 583 34 (146) 3 443 118 (478) (20) 1,464 110 (473) (4) 1,248 35 (14) 23 (33) 113 18 22 (19) (26) (15) 24 (33) 129 1 2 (78) 18 (33) (3) (50) (132) (4) (42) (22) 150 (57) (48) (28) (27) (4) 62 (2) 180 (142) (121) (70) 238 (65) 7 3 459 68 (36) (4) (23) 144 56 24 6 (3) 466 596 200 (36) 39 (21) 140 224 23 8 (10) (14) 433 52 41 (10) (34) 166 151 25 36 1,357 577 113 (36) 27 (71) 438 343 69 23 (14) (14) 1,339 677 152 (266) (1) (118) 517 150 63 75 60 2Q13 (983) 3Q12 (287) 9M13 (871) 9M12 (1,088)
20
Appendix V - EBITDA and adjusted EBITDA breakdowns (CVM Instruction 527/2012)
Adjusted EBITDA (R$ million) Income (loss) of the period (+/-) Financial results, net (+) Taxes on income (+) Depreciation, amortization and depletion EBITDA (-) Fair Value of Biological Assets (+/-) Non-recurring sale of property, plant and equipment (+) Impairment of recoverable ICMS (-) Tax credits/reversal of provision for contingencies EBITDA Ajustado
3Q13 57 226 2 458 744 (3) 24 (3) 762
2Q13 (593) 1,162 (389) 466 646 (36) 39 23 (25) 647
3Q12 (212) 393 (75) 433 539 9 25 573
EBITDA is not a measurement defined by Brazilian and International Financial Reporting Standards, and represents income (loss) for the period before interest, income tax and social contribution, depreciation, amortization and depletion. The Company is presenting adjusted EBITDA in accordance with CVM Instruction 527 of October 4, 2012, by adding or subtracting from the amount the provision for losses on recoverable ICMS, non-recurring write-offs of fixed assets, the fair value of biological assets and tax credits from recovered contingencies, to provide better information on its ability to generate cash, pay its debt and sustain its investments. Neither measurement should be considered as an alternative to the Companys operating income and cash flows, as an indicator of liquidity, for the periods presented.
21
Appendix VI - Economic and Operational Data

Exchange Rate (R$/US$) Closing Average 3Q13 2.2300 2.2880 2Q13 2.2156 2.0666 1Q13 2.0138 1.9966 4Q12 2.0435 2.0569 3Q12 2.0306 2.0289 2Q12 2.0213 1.9617 2Q13 vs 1Q13 0.6% 10.7% 2Q13 vs 2Q12 9.8% 12.8% 1Q13 vs 4Q12 10.0% 3.5% 3Q12 vs 2Q12 0.6% 1.4% 2Q12 vs 1Q12 0.5% 3.4%
Pulp sales distribution, by region Europe North America Asia Brazil / Others
3Q13 35% 31% 26% 9%
2Q13 43% 28% 21% 8%
3Q12 41% 26% 23% 10%
2Q13 vs 1Q13 -7 p.p. 2 p.p. 5 p.p. 1 p.p.
2Q13 vs 2Q12 0 p.p. 4 p.p. 3 p.p. -1 p.p.
Last 12 months 39% 28% 24% 9%
Pulp list price per region (US$/t) North America Europe Asia
Sep-13 900 850 750
Aug-13 900 850 750
Jul-13 900 850 750
Jun-13 900 850 750
May-13 900 850 750
Apr-13 870 820 720
Mar-13 870 820 720
Feb-13 850 800 700
Jan-13 850 800 700
Dec-12 830 780 670
Nov-12 830 780 670
Oct-12 830 780 670
Financial Indicators Net Debt / Adjusted EBITDA (LTM*) Total Debt / Total Capital (gross debt + net equity) Cash + EBITDA (LTM*) / Short-term Debt
*LTM: Last tw elve months
Sep/13 3.0 0.4 3.2
Jun/13 3.3 0.4 5.3
Sep/12 4.5 0.4 3.9
Reconciliation - net income to cash earnings (R$ million) Net Income (Loss) before income taxes (+) Depreciation, depletion and amortization (+) Foreign exchange and unrealized (gains) losses, net (+) Fair value of financial instruments (+) Fair value of biological assets (+) Loss (gain) on disposal of Property, Plant and Equipment (+) Interest on Securities, net (+) Interest on loan accrual (+) Financial charges on 2020 senior notes tender offer (+) Accruals for losses on ICMS credits (+) Provisions and other (+) Tax Credits (+) Reversal of provision for contingencies Cash earnings (R$ million) Outstanding shares (million) Cash earnings per share (R$) -
3Q13 60 459 68 (36) (4) (23) 144 56 24 6 (3)
2Q13 (983) 466 596 200 (36) 39 (21) 140 224 23 8 (10) (14) 632 554 1.1 -
3Q12 (287) 433 52 41
(10) (34) 166 151 25 36 573 554 1.0
751 554 1.4
22

Demonstra

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Demonstra

Uploaded by

Copyright:

Available Formats

Fibria Celulose S.A.

Report on review of interim financial information

So Paulo, October 21, 2013

PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5

Luciano Jorge Moreira Sampaio Junior Accountant CRC 1BA018245/O-1 "S" SP

Fibria Celulose S.A.

September 30, 2013

December 31, 2012

770,312 842,936 29,166 611,717 1,385,137 210,584 589,849 159,929 4,599,630

943,856 2,351,986 18,344 754,768 1,183,142 209,462 589,849 194,526 6,245,933

381,915 1,677,926 31,638 945,362 1,178,707 327,787 644,166 108,062 5,295,563

Fibria Celulose S.A.

September 30, 2013

December 31, 2012

1,287,643 577,360 131,103 41,096 79,388 470,000 274 96,000 2,682,864

1,138,005 435,939 128,782 41,368 54,252 470,000 2,076 204,833 2,475,255

1,092,108 373,692 134,024 53,463 163,534 1,520 142,367 1,960,708

8,198,963 388,547 79,274 176,362 84,919 185,034 9,113,099

9,629,950 263,646 77,665 227,923 104,813 194,521 10,498,518 12,973,773

10,232,309 125,437 76,510 739,878 101,594 163,096 11,438,824 13,399,532

9,729,006 2,688 (10,346 ) 3,815,584 1,596,666

8,379,397 2,688 (10,346) 4,520,290 1,611,837

15,133,598 37,209 15,170,807 28,144,580

14,503,866 28,822 14,532,688 27,932,220

Fibria Celulose S.A.

September 30, 2013

September 30, 2012

4,959,655 (3,909,888) 1,049,767

4,320,991 (3,758,005) 562,986

(252,681) (211,912) (1,299) (465,892)

583,875 87,120 (851,886) (112,666) (577,353) (1,454,785)

(27,351) 386,156 (512,105)

(14,527) 357,647 (746,369)

(519,417) 7,312 (512,105) (0.938)

(751,530) 5,161 (746,369) (1.458)

Fibria Celulose S.A.

September 30, 2013

September 30, 2012

Attributable to: Shareholders of the Company Non-controlling interests

Fibria Celulose S.A.

Unaudited statement of changes in shareholders' equity

In thousands of Reais, unless otherwise indicated

Noncontrolling interest 28,822

Impact of the adoption of CPC 33(R1), net of deferred taxes

As at January 1, 2012 - adjusted

As at September 30, 2012

Impact of the adoption of CPC 33(R1), net of deferred taxes

As at January 1, 2013 - adjusted

As at September 30, 2013

Fibria Celulose S.A.

September 30, 2012 (1,089,489)

(872,727 ) (68,650 ) 1,477,186 47,441 (19,129) 554 564,675

(745,370) (66,146) (326,080) 20,805 200,000 (110,426) 199 (1,027,018)

Fibria Celulose S.A.

1,142,715 (3,102,460) (230,735) 1,348 (2,189,132) (13,164 ) (173,544 ) 943,856 770,312

Fibria Celulose S.A.

September 30, 2012

5,057,029 1,300 799,186 5,857,515

4,420,791 905,884 5,326,675

(2,845,224) (335,592) (3,180,816)

(2,567,150) (301,223) (2,868,373) 2,458,302

(1,266,597) (90,821) 1,319,281

(320) 788,719 788,399 1,907,529

Fibria Celulose S.A.