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Corporate Presentation - NDR - New York
Corporate Presentation - NDR - New York
Corporate Presentation - NDR - New York
March, 2017
Disclaimer
2
1 Company Overview
2 Pulp and Paper Market
3 Financial and Operational Highlights
4 2017 Outlook CAPEX and Cash Cost
5 Expansion Project Horizonte 2
6 Back up
3
Company Overview
4
Shareholder Structure and Corporate Governance
General
Votorantim BNDES Free Meeting
S.A. (1) Participaes (1) Float (2)
Fiscal
29.42% 29.08% 41.50% Council 20% independent
members
Board of Role of CEO and
Directors chairman is split
Source: Fibria
(1) Volume does not include Horizonte 2 project pulp capacity
(2) Including 50% of Veracel, excluding forest partnership areas and forest bases linked to the sales of Losango and forest assets in Southern Bahia State; As of December 31, 2016.
(3) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.
6
Fibrias Units Industrial Capacity
* Veracel is a joint venture between Fibria (50%) and Stora Enso (50%) and the total capacity is 1,120 thousand ton/year
7
Fibrias Commercial Strategy
9% 10% 9% 10%
Efficient logistics set up
8
Leadership Position
Industry Outlook(1)
Fiber Consumption
414 million t
59% 41%
Recycled Fiber Pulp
244 million t 170 million t
16% 84%
Mechanical Chemical
28 million t 142 million t
58% 42%
48% 52%
Softwood/Other Hardwood
28 million t 31 million t
25% 75%
Acacia/Other Eucalyptus
8 million t 23 million t
77% 23%
Other Eucalyptus
Pulp producers:
18 million t
(1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Global 100 Report December 2016 9
Pulp Supply Agreement: Puma Project
Puma Project
Pulp volumes:
Minimum of 900 kt of hardwood for the first 4 years
Klabins sales volume (kt)
75% of 900 kt for the fifth year (phase out 1)
2016 4Q16 3Q16 2Q16
50% of 900 kt for the sixth year (phase out 2)
478 183 164 131
Selling price based on the average net price charged by
Fibria at the Port of Paranagu (FOB Paranagu)
Sales destination: Globally, except for South America
Operational startup: Mar/2016
Agreement benefits:
Mutual value creation, with better servicing for both Companies customers base
10
Pulp and Paper Market
11
What happened in 2016 ? Compared to our Forecast
(1) Source: Fibrias estimates (2)Source: Total year Fibria estimates and PPPC G100 BEKP demand growth Jan-Dez 2016 12
Actually...
2016 has been even more balanced than previous 2 years !
370 780
Eucalyptus Demand Growth 605
(Kt)
Hardwood Net Capacity
Increase (Kt)
30
758
696 697
671
655
Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2015 for 2016 prices) 14
In our view, there is one major reason for this lousy market price
scenario: 2016 Global growth has ONLY been relying on China
BHKP DEMAND (KT AND % CHANGE, Y-O-Y)
2013 2014
5.3% 1500
1500 19.0%
1200 3.3%
1200
900
900
600 600 5.2%
5.5% 300 5.2% 2.0%
300
0 0
-300 -0.2% -300
Global NA WE China Global NA WE China
2015 2016
1500 1500
1200
20.2%
1200 3.3% 4.3%
900 900
6.2%
600 3.7% 600
300 300
0 0
-300 -3.5% -300 -4.4% -2.6%
Global NA WE China Global NA WE China
FIBRIA EXPECTED SCENARIO FOR 2017 IN THE END 2016 SCENARIO IN 2017(2)
Klabin 500 2012 2013 2014 2015 2016 2017
APP OKI 1,000 1,770
1,655
Fibria TLS II 300 1,450
1,305 1,350
1,619
Metsa 100
1,088
APRIL Kerinci -100
APRIL Rizhao -300
Eucalyptus
Taiwan P&P -55 Demand Growth 370 780 800
(Kt) 605
Resolute Calhoun -40
Hardwood Net
Navigator Cacia -60 Capacity Increase
Unexpected Closures, (Kt) 30
Conversions and Downtime -550
Net 800 Ratio: Demand 12.33
Growth / Net
2.16 0.91 0.75 2.12 1.75
BEKP demand growth(1) 1,350 Capacity Increase
(1) Fibrias estimates (2) Source: PPPC - Global 100 (historical demand). 16
We dont think so !
Because, we expect a combination of the following factors:
Not only, a good BEKP Demand/Net Capacity increase ratio: 1.75, which is well above the
last 3 years
But also, a more WIDESPREAD demand between the regions!
17
Global Market BEKP Demand
-7 days
8%
24%
15%
4%
1,655 1,543
kt kt
1,247 1,350 40
kt kt 4% 6%
-5% 2% -3% -3% 325 303
-158 -270 -233 kt kt
kt 42 kt kt kt
Total North Western China Others
Mar-15
Apr-15
Dec-15
Dec-16
May-15
Aug-15
Mar-16
Apr-16
May-16
Aug-16
Jun-15
Oct-15
Jun-16
Oct-16
Jan-15
Nov-15
Jan-16
Nov-16
Jan-17
Feb-15
Jul-15
Sep-15
Feb-16
Jul-16
Sep-16
Feb-17
America Europe
BHKP BEKP
12% 9% 12%
328 28%
338
kt 24%
29% kt
238 183 12% 17%
2,073 kt 7% 33% 107 120
kt kt
1,275 kt 30kt 79 kt -4% -4% kt kt
5% 7%
6% -47 kt -44 kt
351 kt 338 kt
109 kt
Total North Western China Others
Total North Western China Others America Europe
America Europe
BHKP BEKP
(1) Source: PPPC Global 100 December/2016 (2) Source: PPPC World 20 February/2017 18
Technical Age and Scale in the Pulp Industry
Further closures are expected due to lack of adequate investments in the industry
Hardwood (BHKP) Producers Integrated and Market Softwood (BSKP) Producers Integrated and Market
Pulp Mills Pulp Mills
700
1500
Veracel 600
Jacare
Weighted average Trs Lagoas 500
capacity 1,350,000 t/a
1000 400
100
0 0
WEAK
30 25 20 15 10 5 0 30 WEAK 25 20 15 10 5 0
Technical age, years Technical age, years
More than 6.6 million tons of capacity above 25 years and with annual capacity below 500,000 t/y.
Source: Poyry 19
Capacity closures DO happen
-85 -105
-315
-445
-540 -500
-750
-670
-910 Potential
Additional
-1,085 Conversions
-1,180
-1,260
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-2018
(1) Closures/conversion/integration 2016: -25 kt Guangdong Dingfeng, -30 kt Verso Wickliffe, -200 kt APRIL Kenrinci, -80 kt Taiwan P&P, -110 kt Woodland, -20 kt BILT, -205 kt IP.
(2) Closures/conversion/integration 2017: -55 kt Taiwan P&P, -40 Resolute Calhoum, -300 kt APRIL RIZHAO, -100 APRIL Kenrinci, -60 kt Navigator. 2018: -125 Mondi, -70 APRIL RIZHAO.
BHKP
capacity 1,130 1,105 2,075 2,290 4,915 3,420 15,275 TOTAL: 30,210
(000 t)
BHKP (US$/t)
508
481
52 451 441 WC=($29/t)
54 35
108 369 383
351 336 126
30 35 Interest
56 57 288 6 92 Capex
43
56 6 Income tax
456 49 37 SG&A
427
343 339 58
295 279
232 211
155
USA China Canada Iberia Chile/Uruguay Indonesia Brazil Fibria 2016 Estimated
Fibria w/ H2 -
2021
Cash Cost (US$/t) Delivery CIF Europe
Source: Hawkins Wright (Production Costs December 2016) and Fibrias 4Q16 Earnings Release-FX considered at BRL/USD = 3.19 (Brazil and Fibria).
Fibria with Horizonte 2 (H2) cash cost was estimated according to weighted average cost, after mill balance, converted at BRL/USD=3.19. Includes energy sales.
21
Gross capacity addition should not be counted as the only factor
influencing pulp price volatility.(1)
1200 2,5
1000 Horizonte 2
2
Eldorado 860
800 Rizhao
787
746
Pulp prices - CIF Europe (US$/ton)
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
BHKP BSKP
(1) Source: Hawkins Wright, Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Dec/16), Brian McClay (Feb/17) and RISI (Jan/17)
(2) Partially integrated production.
22
In the last 15 years, pulp volatility has been just 8%...why?
120
80
40
0
Dec-00
Dec-02
Dec-04
Dec-99
Dec-01
Dec-03
Dec-05
Jan-07
Apr-06
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16
Oct-16
Mar-00
Jun-00
Mar-01
Jun-01
Mar-02
Jun-02
Mar-03
Jun-03
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Mar-04
Jun-04
Mar-05
Jun-05
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Sep-00
Sep-01
Sep-02
Sep-03
Sep-04
Sep-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jul-11
Jul-12
Jul-13
Jul-14
Jul-15
Jul-16
Market price closer to producers marginal cost
The marginal cost producers are based in Europe and North America
230
100 = January 1, 2012
200
170 167
140
110 110
81
80 76
59
50 48
20
May-12
Aug-12
Oct-12
May-13
Aug-13
Oct-13
May-14
Aug-14
Oct-14
May-15
Aug-15
Oct-15
May-16
Aug-16
Oct-16
Mar-12
Apr-12
Jul-12
Sep-12
Nov-12
Mar-13
Apr-13
Jul-13
Sep-13
Nov-13
Mar-14
Apr-14
Jul-14
Sep-14
Nov-14
Mar-15
Apr-15
Jul-15
Sep-15
Nov-15
Mar-16
Apr-16
Jul-16
Sep-16
Nov-16
Mar-17
Feb-12
Dec-12
Feb-13
Dec-13
Feb-14
Dec-14
Feb-15
Dec-15
Feb-16
Dec-16
Feb-17
Jan-12
Jun-12
Jan-13
Jun-13
Jan-14
Jun-14
Jan-15
Jun-15
Jan-16
Jun-16
Jan-17
Iron Ore Soy Bean Crude Oil Sugar BHKP - FOEX Europe Exchange Rate (R$/US$)
WTI Crude Oil Sugar Nickel Iron Ore Copper Soy Ibovespa LME Metals Cattle FX BHKP
Source: Bloomberg March 27th, 2017 2Since January 1, 2009 up to March 21nd, 2017 24
Financial and Operational Highlights
25
Each 5% depreciation of the Real increases EBITDA by around
R$420m and FCF by R$550m
53%
43%
40% 40% 39%
EBITDA Margin 34% 36%
29%
1,488 1,560
1,295
1,173 1,153 1,185
1,073
815
(1) According to Focus Report (Brazilian Central Bank March 24th, 2017) I (2) 2017 and 2018 market consensus 26
Cash Production Cost (R$/t) 4Q16
External factors
35 10 4 737 727
42
658 (12) (10)
+4.5%
680
649
648 618
620 624 581
2015 2016
4Q15 3Q16 4Q16 With downtimes Ex-downtimes
27
Cash Production Cost in dollars saw a decrease over the last years
Consistently
281 controlling the cash
264 production cost
242
231 234
220 But lately, it has
195 been influenced
186
by non-recurring
effects:
Wood
2009 2010 2011 2012 2013 2014 2015 2016 Energy price
Input
Average
FX
1.99 1.76 1.67 1.95 2.16 2.35 3.33 3.49 consumption
(BRL/USD)
(118)
201
1,073
(569) deferred
488
current
(396) 477
(202)
Adjusted FX Debt MtM Net interest Deprec., Income Taxes Others (1) Net income
EBITDA hedge amortiz. and
depletion
Non-recurring effects
(1) Includes other Exchange rate/monetary variations, other financial income/expense and other operating income/expenses
4Q16
244
Klabin
H2 funding effect
interest 109
104
(58) (5)
(187)
Adjusted EBITDA 4T16 Capex Net interest Working Capital Income Taxes FCF 4T16
(ex-H2 and logistics
projects)
2016
1,073
Klabin
H2 funding effect
interest
216 542
(30) (8)
(583) (126)
Adjusted EBITDA Capex (ex-H2 and Net interest Working Capital Income Taxes Others FCF 2016
2016 logistics projects)
(1) Does not consider Horizonte 2 Project and pulp logistics projects. 30
ROE and ROIC (R$)
ROE = Adjusted EBIT(1)/ Equity before IAS 41(2) ROIC = Adjusted EBIT(3)/ Invested Capital before IAS 41(2)
25.1%
22.8%
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Average Average
FX 1.95 2.16 2.35 3.33 3.49 FX 1.95 2.16 2.35 3.33 3.49
(R$/US$) (R$/US$)
Average Average
Net Pulp 581 610 561 586 496 Net Pulp 581 610 561 586 496
Price Price
(US$) (US$)
31
Indebtdeness
Gross Debt and Cash Position (million) Net Debt (Million) and Leverage
Net debt/EBITDA (R$) Net debt/EBITDA (US$)
Gross debt Cash position
3.30
2.64
16,153 2.06 3.06
2.33
12,744 H2 4,717 1.78
11,015 10,620 11,435
CRA(2)
4,956 1,730
3,264 1,447
443 2,821 3,272 3,509
.6 Cost of
Average costdebt
in US$ (% p.a.) Interest Expense (Net)/Net Debt Interest Expense (Gross) Interest on Financial Investments
3.3
(1) Considering the portion of(1)
debt in reais fully adjusted by the market swap curves at the end of each period | (2) Total weighted average cost of 97.8% of the CDI 32
Robust Liquidity USD million
(@December 31, 2016)
Revolver 541
Cash 919
786 691 714
on hand(1) 1,442 559 629 534
349 356
89
28
Liquidity 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Excess of
0.2 - 2017 2.4 US$0.2 bn
0.1 - 2017 0.2
0.3 Horizonte 2
0.1 2017 0.1 0.8
0.3 - 2017 Project
0.1 0.3
0.1 - 2018 US$2.2 bn
0.1
0.4
3Q15 1.6
0.3
3Q15 0.2
0.4
Export Prepayment CRA BNDES FDCO ECA Working capital Total
release (2)
Funds withdrawn until Dec 31, 2016. Contracted funds to be withdraw
(1) Capex to be executed on Horizonte 2 Project | (2) Related to the agreement with Klabin 33
Initiatives for Leverage Management
Accounts payable
Working Capital Release 95 0.09x 420 0.37x
(suppliers)
Accounts receivable (customers) 40 0.04x Others 110 0.12x
Accounts payable (suppliers) 55 0.05x
Total 530 0.49x
Capex 96 0.10x
Forestry 31 0.03x
Capex H2 65 0.07x
34
Waiver on 4.5x Covenant was Fully Negotiated
Horizonte 2 start up in 4Q17 boosts EBITDA and FCF generation
Covenant level
Waiver
4.5 4.5
3,3 3.5x
Indebtness and
2.64 Liquidity limits (1)
2.0x 2.5x
1.86 2.10
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2018 2019
(1) As stated on the Liquidity and Indebtedness Policy and Shareholders Agreement 35
Capital Structure
8.1
5.2
4.2 3.7
3.7
3.1
2.6
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
1000
600
200
0
2010 2011 2012 2013 2014 2015 2016
487 429
347 350 384 318 324
274 292 297 1,168 270 280
211 223 225 226
3,011 56 5,213
79
2,010 57
Industry 415
Forestry 1,595
2017 CAPEX Logistics Projects Modernization H2 Others (2) 2017 CAPEX Total
Maintenance Guidance
(1) Converted at 2017 average FX - BRL/USD 3.18, according to Focus Report (Brazilian Central Bank Mar 24th, 2017)
(2) Included R&D, IT, Health Safety and Environmental.
39
Cash Cost update (USD/t) @2021
BRL/USD 3.19
206
155
(26) (19) (2) (1) (3)
LTM 3Q16 Horizonte 2 Wood cost Bleaching line B Maritime wood Others 2021
Project reduction shipping project
FX Sensitivity
FX Cash cost (US$/t)
3.00 164
3.10 159
3.19 155
3.30 150
3.50 142
40
Expansion Project Horizonte 2
41
What is the importance of growth for Fibria?
42
Fibrias nominal capacity
(1)The volumes in 2017 and 2018 will depend on the learning curve of the plants. The agreement with Klabin may be renewed by mutual consent. 43
Pulp sales destination: Fibria growing where the market grows
37%
36%
19%
22% 36%
32%
8%
10%
(1) Considers 4Q16 last twelve months. | (2) Includes Klabins sales volume 44
Horizonte 2 Project
Site Overview(1)
(1) @4T16 45
Horizonte 2 Forestry Base
Forestry base secured as planned
To be planted
7,000 ha already planted in 2016
62,000 ha
55,000 ha to be planted in 2017 and 2018
Total
187,000 ha
Wood purchased
5.0 million m3
46
Logistics
Mato Grosso
Brasilia
Gois
Port Terminal 32
Mato
Grosso do
Sul
47
Capex
Flexibility in the Timetable, without changing the startup date
50%
39%
8,745
7,529
3% 4,026 8%
3,011
292 200
USD 2.396 bn(1) USD 2.213 bn(1) USD 80 mn USD 1,168 mn USD 886 mn USD 61 mn
8.7
7.5
BRL/
To be 3.2 USD
disbursed 3.39
BRL/
Executed 4.3 USD
3.46
49
Funding
Cost and maturity
Amortization Schedule (2) 4Q16 Proforma with TLS II + Bond 2027 (700 MM) US$ million
2,688
Revolver
541
Cash
on
hand
1,001
2,147 869
712 773 728
569 616
349 438
172
68
Caixa 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
BNDES Bond EPP ECN ACC/ACE CRA BNB Finnvera Finame Development Agencies (FCO, Finep & FDCO)
FDCO, FCO &Finep
(1) Swap Bloomberg | (2) FX considering new funding for the TLS II Project: 3.2591 50
Horizonte 2 project assumptions
UNIT R$ US$
Pulp production/year k tons 1,950 1,950
Expansion capex(1) $ billion 7,529 2,213
Expansion capex(1) $/t 3,854 1,156
Sustaining capex (2) $/t 208 63
Cash production cost(3) $/t 340 103
Energy surplus MWh 130 130
Project approval FX BRL/USD 2.80 -
All in cash cost (estimated range)(4) $/t - 270-320
Net pulp price(5) $/t - 497
Free Cash Flow (estimated) $/t - 177-227
Payback period (estimated) years - 5.1-6.6
(1) Includes chemical leasing and to increase capacity to 1,950 kt/year (FX BRL/USD @3.40) (4) Cash cost + freight + SG&A + Sustaining Capex + Interest + taxes (FX BRL/USD @3.30)
(2) Estimated sustaining capex in perpetuity (FX BRL/USD @ 3.30) (5) 2017 market consensus.
(3) Estimated weighted average cost, after mill balance. Includes energy sales (FX BRL/USD @3.30)
51
Final Remarks
Economies of scale
52
BACK UP
53
Cost reduction initiatives and industry statistics
54
THIRD-PARTY WOOD REDUCTION
Non-recurring impacts starting to decrease
35% 250
30% 200
(km)
25%
311 307 290 150
20%
225 242 239
15% 100
193 788
197 187 181 194 190 173 170
10%
167 166 164
50
5%
0% 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
35%
283 km
Third party wood increase from previous forecast due to recent rain shortage at Aracruz Unit forest
base and optimization of Trs Lagoas forest base
The average distance will drop sharply generating an Opex reduction
Despite the higher forest to mill distance, the wood from Losango is less expensive than the
available wood from around Esprito Santo and Bahia States
56
Industrial: maintenance downtimes schedule change
Regulatory Standard 13 (Boiler and Pressure Vessel Inspection) extended the maximum period between
recovery boiler inspections from 12 to 15 months.
Fibria was the first company to use the extended period benefit
57
Global Market Pulp Demand
Hardwood (BHKP) vs. Softwood (BSKP) (000 ton) Demand growth rate
40.000
Growth Growth
000 ton 2000 2010 2020 2000- 2010-
35.000
2010 2020
30.000
25.000 Hardwood 16.2 25.1 35.6 55% 42%
20.000
15.000 2015 - 2020 CAGR: Eucalyptus 6.6 15.9 25.2 140% 58%
10.000 Hardwood: +3.06%
Softwood: +1.16%
5.000
Softwood 18.9 22.2 25.8 17% 16%
0
2013
2016
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2014
2015
2017
2018
2019
2020
Market Pulp 35.1 47.3 61.4 35% 30%
Hardwood Softwood
Source: PPPC report (Nov. 2016) Source: PPPC reports. Excludes Sulphite and UKP market pulp (Nov./16)
China's Share of Market Pulp(2) Per Capita Consumption of Tissue by World Region(3)
(Kg/capita/year)
(million t)
30% 16
25% 26%
23% 24% 14 25
25% 23%
21% 22%
12
20% 17%
10
16 15
15% 12% 14% 8
10% 10% 11
6
10%
4 6 6 6
5%
2
1
0% 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
N. West Japan Oceania East LatAm China Africa
Eucalyptus Hardwood Total % Compared to the global Market Pulp America Europe Europe
(1) PPPC Pulp China Flash Report December 2016
(2) PPPC W20. Coverage for chemical market pulp is 80% of world capacity
(3) RISI
59
Growth rate Chinese GDP vs. Eucalyptus Shipments to China
(Sept-09 = base 100)
300
273
250
200
150
100
75
50
47% 48% 48% 48% 48% 48% 46% 47% 45% 45%
44%
49% 49% 48% 49% 49% 50% 50% 52% 51% 53% 53%
2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E
Consumption Investment Net Exports
201
194
172
152
124
100 115
2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E
P&W
Consumption
(000 tons)(1)
2010
2016E
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011
2012
2013
2014
2015E
2017E
2018E
2019E
2020E
Developed Markets Emerging Markets
30,357
20,979
Tissue
Consumption
2011
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2012
2013
2014
2015E
2016E
2017E
2018E
2019E
2020E
(000 tons)(1)
Source: RISI 62
BHKP prices - CIF China (US$/ton)
0
100
200
300
400
500
600
700
800
900
(000s t)
mai-10
jun-10
jul-10
ago-10
set-10
2010
out-10
average:
250 ktons
nov-10
dez-10
jan-11
fev-11
mar-11
mai-11
Source: PPPC Global 100 Dec 2016
jun-11
jul-11
ago-11
set-11
2011
out-11
Average
379 ktons
nov-11
dez-11
jan-12
fev-12
mar-12
abr-12
jun-12
jul-12
ago-12
set-12
out-12
2012
Benefiting From Chinas Growth
Average
nov-12
370 ktons
dez-12
jan-13
fev-13
mar-13
abr-13
mai-13
jul-13
ago-13
set-13
out-13
nov-13
2013
Average
dez-13
439 ktons
jan-14
fev-14
mar-14
abr-14
mai-14
jun-14
ago-14
set-14
out-14
nov-14
China: Eucalyptus pulp shipments
dez-14
2014
jan-15
Average
504 ktons
fev-15
mar-15
abr-15
mai-15
jun-15
jul-15
set-15
out-15
nov-15
2015
dez-15
Average
531 ktons
jan-16
fev-16
mar-16
abr-16
mai-16
jun-16
jul-16
ago-16
Shipments
BHKP Price
out-16
2016
nov-16
Average
612 ktons
dez-16
jan-17
fev-17
0
100
200
300
400
500
600
700
800
900
Cost position
of marginal
producer
Source: Pyry. 64
Tightening plantation wood and chip supply could add to the cash
cost of Asian pulp mills
Source: Pyry. 65
Current Zero Cost Collars
6,00
5,77
5,33 1.000
5,19
5,00 4,66 4,50
4,16 800
4,06
4,00
3,33 3,25 3,30 3,35 3,40 3,45 3,50
600
3,00
400 375
349 322 400
2,00
254 235 210
200
1,00
- -
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018
USD million
329 317
225
194
158
125 113 111 103
130
112 118 124 105
77 84
53 51
29 4
-7
-77
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
EBITDA Margin
33% 28% 30% 37% 37% 41% 39% 39% 41% 42% 41% 35% 35% 45% 50% 50% 56% 54% 52% 43% 43% 36%
Average FX
1.63 1.80 1.77 1.96 2.03 2.06 2.00 2.07 2.29 2.27 2.37 2.23 2.27 2.55 2.87 3.07 3.45 3.84 3.90 3.51 3.25 3.26
(1) Excluding H2 Project, dividends, pulp logistics and land purchase effects. 67
Fibrias tax structure
Description and Amount Maturity
US$ 9 million US$ 2 million US$ 8 million US$ 14 million US$ 12 million US$ 23 million US$ 36 million
70
Approval of Dividend Policy
71
Dividends
2016
April 27, 2016 Mid-May, 2016 Mid-November, 2016
2017
April, 2017 Mid-May, 2017 Mid-November, 2017 Mid-December, 2017
74
Sustainable Forest Management
The process collects ash, grits, dregs and lime mud from
the production process and the transformed product
replaces the use of calcium carbonate
Note: Fibria has a long-term target to increase eco-efficiency, by reducing in 91% the quantity of industrial waste
disposed in own or third-party landfills. This project will contribute to meeting the companys long term goal to reduce
the amount of solid waste sent to landfill to 5kg/adt, by 2025.
Environmental Benefit & Impact: The various water efficiency projects are designed to achieve:
310 m3/h reduction in the water withdrawn from the total intake water to the industrial operation.
This reduction is equivalent to 3.9% in industrial water intake at the mill