Ita? BBA?s 10th Annual LatAm CEO Conference

8/9/2019 Ita? BBA?s 10th Annual LatAm CEO Conference

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FIBRIA APP WITH THIS PRESENTATION IS AVAILABLE FOR DOWNLOAD AT APPLE STORE AND GOOGLE PLAY.

Itaú BBA’s 10th Annual LatAm CEO ConferenceMay, 2015


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2

The information contained in this presentation may include statements whichconstitute forward-looking statements, within the meaning of Section 27A of the U.S.Securities Act of 1933, as amended, and Section 21E of the U.S. Securities ExchangeAct of 1934, as amended. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to business, financial, trend, strategy and otherforecasts, and are based on assumptions, data or methods that, although consideredreasonable by the company at the time, may turn out to be incorrect or imprecise, ormay not be possible to realize. The company gives no assurance that expectationsdisclosed in this presentation will be confirmed. Prospective investors are cautionedthat any such forward-looking statements are not guarantees of future performanceand involve risks and uncertainties, and that actual results may differ materially fromthose in the forward-looking statements, due to a variety of factors, including, but notlimited to, the risks of international business and other risks referred to in thecompany’s filings with the CVM and SEC. The company does not undertake, andspecifically disclaims any obligation to update any forward-looking statements, whichspeak only for the date on which they are made.

Disclaimer


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3

Company Overview1Pulp and Paper Market2Financial and Operational Highlights3

Agenda

Final Remarks

4


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4

Company Overview


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5

A Winning Player

Port Terminal Pulp Unit

Três Lagoas

Santos

AracruzPortocel

Caravelas

BelmonteVeracel

Jacareí

Superior Asset Combination Main Figures – 1Q15 LTM

Pulp capacity million tons 5,300

Net revenues R$ billion 7.4

Total Forest Base (1) thousand hectares 968

Planted area (1) thousand hectares 561

Net Debt R$ billion 9.0

Net Debt/EBITDA (in Dollars) (2) X 2.3

Net Debt/EBITDA (in Reais) X 2.9

Source: Fibria

(1) Including 50% of Veracel, excluding forest partnership areas and forest bases linked to the sales of Losango and forest assets in Southern Bahia State.(2) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.


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6

Fibria’s 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


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7

Worldwide presence

Strong global customer base

Long-term relationships

Focus on customers with stable business

Customized pulp products and services

Sound forestry and industrial R&D

Focus on less volatile end-use markets such as tissue

Efficient logistics set up

Low dependence on volatile markets such as China

Low credit risk

100% certified pulp (FSC and PEFC/Cerflor)

Sales Mix by End Use - Fibria Highlights

Fibria’s Commercial Strategy

Sales Mix by Region - Fibria

Region - 1Q15 End Use - 1Q15

Europe46%

N.America

17%

Asia26%

Other11%

30%20%

29% 29% 24% 18%26% 26% 30% 22% 28%

31% 30%19% 22% 26%

27%17%

37%46%

46% 41%35% 44%

43% 41% 36% 42%43% 35% 36%

46% 42% 39%40%

46%

22% 25%14% 20%

31% 28%20% 23% 25% 26%

21% 26% 26% 26% 27% 25% 23% 26%

11% 9% 11% 10% 10% 10% 11% 10% 9% 10% 8% 8% 8% 9% 9% 10% 10% 11%

4Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q15

North America Europe Asia Other

Tissue48%

Printing &Writing

35%

Specialties17%


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Pulp Supply Agreement: Puma Project

Logistics and commercial

structure synergies;

Ensure sales volumes;

Ensure pulp market access withKlabin brand.

Logistics and commercialoptimization and synergies;

Support customers’ growth andenhance customers ’ needs;

Potential development of newcustomers.

▶ Agreement benefits:

Mutual value creation, with better servicing for both Companies customer’s base

▶ Pulp volumes:• Minimum of 900 kt of hardwood for the first 4 years• 75% of 900 kt for the fifth year (phase out 1)• 50% of 900 kt for the sixth year (phase out 2)

▶ Selling price based on the average net price charged by Fibria at the Port of Paranaguá ( FOB Paranaguá)

▶ Operational startup: Mar/2016

▶ Sales destination: Globally, except for South America


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(1) Controlling group(2) Free Float 40.14% + Treasury 0.06%

VotorantimIndustrial S.A. (1)

29.42%

BNDESParticipações (1)

30.38%

FreeFloat (2)

40.20%

• Only 1 class of shares →100% voting rights

•

100% tag along rights (Brazilian corporate law establishes 80%)• Board of Directors with minimum 20% independent members

• Financial Statements in International Standards – IFRS

• Adoption of Arbitration Chamber

• SEC Registered ADR Level III program

• Indebtedness and Liquidity• Market Risk Management• Risk Management• Corporate Governance• Related Parties Transactions• Anti-Corruption• Information Disclosure• Securities Trading• Antitrust• Genetically Modified Eucalyptus

FiscalCouncil

Board ofDirectors

20% independentmembers

Role of CEO andchairman is split

Personnel andRemuneration

Committee

StatutoryAudit

Committee

FinanceCommittee

SustainabilityCommittee

InnovationCommittee

GeneralMeeting

Listed on Novo Mercado , highest level at BM&FBovespa: Policies approved by the Board of Directors:

Shareholder Structure and Corporate Governance

30%independent

members

100%independent

members

50% independentmembers

45% independentmembers -


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Expected scenario for 2013 in Nov’2012

BHKP CAPACITY CHANGES

Realized scenario in 2013

1,270

100

-155

-410

-140

-60

605

1,310

Eldorado

UPM Fray Bentos

Sappi Cloquet

Jari

Cellulose du Maroc

Sodra Tofte

Net

BEKP demand growth*

1,275

320

555

-155

-410

1,585

1,080

Eldorado

Suzano Maranhão

Montes del Plata

Sappi Cloquet

Jari

Net

BEKP demand growth*

DELAYED

UnexpectedClosures

In 2013, we stressed the difference between the expected scenarioand the realized one...

*Source: PPPC Outlook for Eucalyptus Market Pulp November 2012 *Source: PPPC Outlook for Eucalyptus Market Pulp September 2014


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As a result we had better prices than expected

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2012 for 2013 prices)

BHKP Delivered to Europe (USD/t)

765

772767

784

772

788

814

795

770

791

740

750

760

770

780

790

800

810

820

1Q13 2Q13 3Q13 4Q13 Annual 2013

Consultants average for 2013 Realized PIX/FOEX price


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BHKP CAPACITY CHANGES

The “better than expected scenario” happened again last year...

Realized scenario in 2014

1,770

-105

-85

-65

-120

-70

100235

550

1,100

230

BEKP demand growth

Net

Ence Huelva

Old Town

APRIL Rizhao

Sodra Tofte

Sappi Cloquet

UPM

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

1,7341,380

2,660

-120

-115

560

830

1,275

230

BEKP demand growth**

Net

Sodra Tofte

Sappi Cloquet

Oji Nantong*

Montes del Plata

Suzano Maranhão

Eldorado

Expected scenario for 2014 in Dec’13

More unexpectedmill closures

*Partly integrated to existing PM**Source: PPPC Outlook for Eucalyptus Market Pulp November 2013

*Approved license only for 500,000 t/y


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… and also better prices than initially projected

BHKP Delivered to Europe (USD/t)

782

737

696

718

733

768752

729734

746

640

660

680

700

720

740

760

780

800

1Q14 2Q14 3Q14 4Q14 Annual 2014

Consultants average for 2014 Realized PIX/FOEX price

Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2013 for 2014 prices)


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Shipments of Eucalyptus Pulp

(1) Source: PPPC World 20 – January/2015

Global Market BEKP Demand

Paper Capacity increase in China

2014 2015 Total

FORECAST REALIZED PREVIOUSFORECASTLATEST

FORECAST PREVIOUS LATEST

Woodfree 256 256 760 760 1,016 1,016

Tissue 1,390 1,278 727 1,365 2,117 2,643

Cartonboard 2,100 1,326 380 730 2,480 2,056

Total 3,746 2,860 1,867 2,855 5,613 5,715

Source: Fibria and Independent Consultants

680 kt

78 kt 114 kt264 kt 224 kt

18%

23% 7%

32% 23%

Total NorthAmerica

WesternEurope

China Others

3M2015 vs. 3M2014 (2)

(1) Source: PPPC World 20 – December/2014

2014 vs. 2013 (1)

1,734 kt

92 kt

386 kt717 kt 537 kt

11%

5%6%

20%13%

Total NorthAmerica

WesternEurope

China Others

(2) Source: PPPC World 20 – March/2015


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Source: PPPC and Fibria

Closures of Hardwood Capacity Worldwide(000 ton)

Capacity closures DO happen

-910

-85

-1,260-1,180

-540-500

-105

-1,085

-445

-750

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-2017 E (1)

(1) As of April 2015


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Total Cash Cost of BHKP delivered to Europe (US$/t)

Source: Hawkins Wright (Outlook for Market Pulp, April 2015) | Fibria’s 1Q15 considering a FX of R$/US$2.8737. | “Brazil” 2014 considering FX of R$/US$3.05.Gray bar includes cash expenses as Interest, CAPEX, SG&A and Taxes (Source: RISI and Fibria).

1Q15 net price:US$ 560/t

W/K

Among the industry’s lowest cash cost producers

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351312 286

329

207 199

7087

105

4464

27

7255

China USA Canada Indonesia Chile/Uruguay Iberia Brazil Fibria

Cash Cost (US$/t) Delivery (US$/t)

SG&A

Capex

Interest

Income Tax

Capacity

(k tons):1,925 1,610 1,030 3,785 4,695 2,015 = 28,99013,930 5,300


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Gross capacity addition should not be counted as the only factorinfluencing pulp price volatility…. (1)

List Price bottoming at US$650/t in 2011 and US$724/t in 2014

C a p a c i t y

( 0 0 0 t o n

)

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

0

100

200

300

400

500

600

700

800

900

1.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Valdivia

APPHainan

Veracel Nueva Aldea

Santa Fé

Mucuri

FrayBentos

KerinciPL3

TrêsLagoas

Rizhao

APP Guangxi

ChenmingZhanjiang

EldoradoMontesdel Plata

Maranhão

Guaíba II

APP SouthSumatra (2)

Klabin

OjiNantong

B H K P p r i c e s -

C I F E u r o p e

( U S $

/ t o n

)

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Dec/14), Brian McClay (Jan/14) and RISI (Dec/14)(2) Partially integrated production


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Lowest volatility among commodities

Commodities Historical Volatility (US$) (1)

Low volatility of hardwood pulp price, even though new capacities have

come on stream in the period

30

40

50

60

70

80

90

100

110

120

130

140

150

160

170

180

J a n - 1 2

M a r - 1 2

M a y - 1 2

J u l - 1 2

S e p - 1

2

N o v - 1 2

J a n - 1 3

M a r - 1 3

M a y - 1 3

J u l - 1 3

S e p - 1

3

N o v - 1 3

J a n - 1 4

M a r - 1 4

M a y - 1 4

J u l - 1 4

S e p - 1

4

N o v - 1 4

J a n - 1 5

M a r - 1 5

Iron Ore Soy Bean Crude Oil Sugar BHKP (FOEX Europe) Exchange Rate (USD/BRL)

172

116

81

5148

37

Source: Bloomberg

100 = January 1 st , 2012


22/4922Financial and Operational Highlights


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FX and Pulp Price explain 80% of Fibria’s EBITDA Margin

(1) Excludes Conpacel | (2) 2014 year end market consensus | (3) According to Focus Report (Brazilian Central Bank – Apr. 30th, 2015) | (4) According to Poyry – full cost estimate - includesManufacturing + Delivered costs to Rotterdam + Depreciation + ROCE of 9%

Each 10% depreciation of the Real increases EBITDA by approx. R$770 million

1,522

2,5261,964 2,253

2,796 2,791

2009 (1) 2010 (1) 2011 2012 2013 2014 2015

Exchange Rate Average (R$/US$)

EBITDA Margin

EBITDA (R$ million)

29%40% 34% 36% 40% 39%

Marginal producer cost (US$/t) (4)

Fibria net pulp price(US$/t)

MarketConsensus

456

670 639581

610 572 566

660627

676657

680 676912

1,1791,067 1,133

1,281 1,310

1,719

Fibria net pulp price(R$/t)

2.00 1.76 1.67 1.952.10 2.29

3.08 (3)

N t l t i it h t i k i it f hi h th


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No exposure to eletricity shortage risks, in spite of which thecompany has benefited from the sale of its surplus energy

Management initiatives seeking to maintain the cash cost below inflation.(Utilities: 1Q15: R$25/t I 4Q14: R$37/t I 1Q14: R$18/t)

549572

1915 10 ( 11 ) ( 7 ) ( 3 )

1Q14 Wood FX Materials andServices

EnergyConsumption

Utilities Others 1Q15

+ 4.2%

Cash Production Cost – Total and Ex-Downtime (R$/t)

524 472 548549 472572

1Q14 4Q14 1Q15

Cash Cost ex-Downtime Cash Cost

Cash Production Cost (R$/t)

C h P d i C l i f 3 7% h


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Fibria Cash Production Cost (1) (R$/ton)

Consistentlycontrolling the

productioncash cost at alevel belowthe inflation

pace.

25

Cash Production Cost saw a annual increase of 3.7% over the past6 years

432 448471 473

505 519

2009 (2) 2010 (2) 2011 2012 2013 2014

CAGR: + 3.7%

(1) Constant Currency (2) Excludes Conpacel


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Net Results (R$ million) – 1Q15

1,007

(1,685)(566)

(123) (44) (85)

(448)643

179(22)

AdjustedEBITDA

FX Debt /MtM Debt

Hedge

MtMOperational

Hedge

Swap/ZCCsettlements

NetInterest

Deprec.,amortiz. and

depletion

Income Taxes

Other FX andmonetaryvariations

Others Net Income(Loss)

FX Debt∆

deffered

∆ ∆

MtMhedge

∆

swap ZCC

(1)

current

(1)

Includes non-recurring expenses/non-cash and other financial income/expenses .


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Free Cash Flow (1) – 1Q15 LTM (R$ million)

3,119

1,001(1,645)(322) ( 149 ) (34) 32

Adjusted EBITDA Capex Interest(paid/received)

Working Capital Taxes Others Free Cash Flow

(1) Does not include non-recurring items.

FCF/ton: US$76


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Indebtdeness

Net Debt (Million)

2.42.7 2.9

2.4 2.4 2.3

8,445 8,327 9,352

3,732 3,135 2,915

Mar/14 Dec/14 Mar/15R$ US$

Gross Debt and Interest Expenses (Million)

6,970 7,5498,991

3,080 2,842 2,803

Mar/14 Dec/14 Mar/15R$ US$

Net Debt/EBITDA (US$)

Debt Amortization Schedule (US$ Million) Average Tenor (months) and Cost of Debt * in US$ (% p.a.)

113

545

657

241205

339

438

623

363

8419 3

600

Liquidity 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Pre-payment BNDES ECN ACC/ACE Voto IV Bond

(cash)

(revolver)

58 4435

Interest (US$)

- 22%

Net Debt/EBITDA (R$)

47

55 54

Mar/14 Dec/14 Mar/15

3.7

3.43.5

- 40%

(*) Considering the portion of debt in reais fully adjusted by the market swap curves at the endof each period.

Capital Structure: Fibria has achieved the lowest leverage ratio among


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Net Debt/EBITDA (x) (1)

Fibria Arauco CMPC Klabin Suzano

S&P BBB-/Stable BBB-/Stable BBB-/Negative BBB-/Negative BB/Stable

Moody’s Ba1/Positive Baa3/Stable Baa3/Negative - Ba2/Stable

Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Negative BB/Stable

(1) Fibria’s historical data in BRL.

Capital Structure: Fibria has achieved the lowest leverage ratio amongits Latin American peers

2.4 2.3

2.72.7 2.9

4.8 4.5 4.54.1

3.9

1.7 1.72.4

3.0

4.2

2.93.1

3.1 3.4 3.6

3.6 3.7 3.6 3.2

14.8

13.2

11.7 11.18.9 7.7

4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1T15

Fibria Suzano Klabin CMPC Arauco Eldorado

A consistent and disciplined approach focused on reducing debt


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30

A consistent and disciplined approach focused on reducing debtand its cost

Debt (US$ million) x Leverage (US$) Interest (US$ million) x Cost of Debt (US$)

Free Cash FlowIncrease

InterestReduction

Cost of DebtReduction

This dynamicscreates a virtuous

cycle

8.6

2.9

6.3

2.8

2009 2010 2011 2012 2013 2014 Mar/15

Gross Debt Net Debt

7.5

4.1 4.23.3

2.6 2.4 2.3 473414 408

350268

200 178

2009 2010 2011 2012 2013 2014 LTM

6.3 5.9 5.55.2 4.6

3.4 3.5*

(*) Considering the portion of debtin reais fully adjusted by the market swap curves ofMar. 31, 2015.


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31

Principal: US$ 600 million

Issuance Date: May/2014

Coupon: 5.25% a.a.

Bookbuilding: 11.5x

Spread over T10Y: 275.0 bps

Highlights

- SEC registered;

- IG Documentation;

- Stretch Debt maturities;

- Fibria 2021 early redemption of US$430 million (78%of the total).

Fibria 2024

Data as of Aug 07, 2014:

Rating Maturity Volume T-Spread Coupon

Fibria Ba1 / BBB- / BBB- 2024 US$ 600 MM 275 bps 5.25%

Braskem Baa3/BBB-/BBB- 2024 US$ 500 MM 340 bps 6.45%

Petrobras Ba2/BBB-/BBB- 2024 US$ 2,5 bi 350 bps 6.28%BNDES Baa2/BBB 2024 US$ 500 MM 362 bps 6.32%

Klabin BBB-/BBB- 2024 US$ 500 MM 269 bps 5.25%

Odebrecht Baa3/BBB/BBB 2029 US$ 500 MM 263 bps 5.25%

New issuance better priced than Investment Grade issuers


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32

113 140 140 143150 160

175

225

COPEC Ecopetrol Raizen Fibria Colbun Braskem Molymet TGI (O&G)

LatAm Investment Grade Loans Spread over Libor (bps) (1)

Avg. Term 4 years 5 years 4 years 5 years 6 years 5 years 5 years 5 years

(1) As of April 2015

…and performing better than Investment Grade issuers

Secondary G-Spread to Maturity (bps) (1)

231 262 244

92

283 300333

372 381431 433 428

525

Globopar 22 Embra er 23 Bras il Foods 24 Vale 22 Fibria 24 Votorantim 24 Klabin 24 Gerdau 24 Samarco 24 Bras kem 24 Petrobras 24 Odebrecht 25 Eletrobras 21


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33

Fibria has a low correlation with Brazil…

(1) Source: Bloomberg as of April 2015

Bonds Correlation (1)G-Spread (bps) (1)

100

200

300

400

500

600

700

800

Fibria 2024 Braskem 2024 Klabin 2024 Odebrecht 2023

Petrobras 2024 Gerdau 2024 Samarco 2024 Brazil 2025

0.90.8

0.7

0.6

0.3

0.0

FIBRBZ '24 vs.PETBRA '24

FIBRBZ '24 vs.BRAZIL '25

FIBRBZ '24 vs. CDSBrazil

Correlation Since May 2014 Correlation Since January 2015


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Fibria has the simplest and most transparent call in the industry

Negative Neutral Positive

Pulp supply ✔

Closures/conversions ✔

Inefficient capacities in China ✔

Demand ✔‣ Fiber and grade substitution ✔‣

Tissue ✔‣ China ✔

Pulp price ✔

Brazil GDP ✔

Energy crisis ✔

FX ✔

Capex inflation ✔

Cost inflation ✔

Rating ✔

Tax ✔

Corporate Governance ✔


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35Final Remarks


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36

Max Value Project – Zero base budgeting

▶ Budget developed primarily based on inputconsumption indicators

▶ Only one discussion cycle, initially based onbudgetary guidelines

▶ Individual discussion for each expenditure package,

including Sustaining CAPEX and OPEX▶ Discussion details based on the materiality of the

expense within the package

▶ Robust basis increasing the visibility of the rationalefor the proposed budget amounts

Zero Base Budgeting encourages a questioning andchallenging attitude of the status quo


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39

Max Value Project – Turning areas per hectare into square meter

• The targeted area represents only 0.6% of the land owned by Fibria;• Real estate thinking: minimum value creation of R$500 million NPV .


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40

PULP- Growth with discipline

- Best portfolio of projects

BIO-ENERGY- Complementary to pulp

- Ensyn

INDUSTRY

CONSOLIDATION ?

OTHER OPPORTUNITIES- Portocel

- Land and forest

PotentialGrowth

Prospects

Fibria is seeking value creation for its shareholders with capital discipline

The maturity of synergies captured since Fibria’s creation improved its


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41

593 593 605 584 648 651

900826 766 678 699

2009* 2010* 2011 2012 2013 2014

The maturity of synergies captured since Fibria s creation improved itsoperating indicators…

+15%

PRODUCTION VOLUME(000 t)BEST PRACTICES AND OPERATING STABILITY

Historical Value Inflation Effect**

-21%

CASH COST(R$/ton)

Historical Value Inflation Effect**

-21%

SG&A(R$ million)STRUCTURE AND PROCESS SIMPLIFICATION

1,522

2,5261,964

2,253

2,796 2,791

2009* 2010* 2011 2012 2013 2014

29%

40%34% 36%

40% 39%

EBITDA(R$ million) - EBITDA MARGIN(%)

* Excludes Conpacel | ** IPCA index considered to calculate the inflation effect.

432 448 471 473505 519

656 624 596549 545

2009* 2010* 2011 2012 2013 2014

4,600

5,0545,184

5,299 5,271 5,274

2009* 2010* 2011 2012 2013 2014


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42Back up


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Due to productivity gains in its forests, Fibria had the opportunity to


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44

p y g pp yexplore this new ownership model

MAI* Pulp:(adt/ha/year)

10.6 10.912.1

15.0 15.0 15.0 15.0 15.0

2010 2015 2020 2025 2030 2035 2040 2045

FIBRIA’S GAINS IN IMACEL DUE TO INVESTMENTS IN BIOTECHNOLOGY(TONS OF PULP/HA/YEAR)

2012 field trials = 11.9

Conservative assumption

*MAI: Mean annual increment

Actions:• Genetic improvement• Excellence in forestry management• Superior industrial efficiency


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Supply structural changes puts pressure on the industry


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46

Supply structural changes puts pressure on the industry

MARKET PULP CAPACITY RANKING 2014 (000T) MAIN PROJECTS

Project Country Capacity Timing Fiber Status

CMPC Guaíba II Brazil 1.3 Mt 2Q2015 BEKP Confirmed

Klabin Paraná Brazil 1.5 Mt 2Q2016 BEKP/BSKP/Fluff

Confirmed

APP South Sumatra Indonesia 2.0 Mt 1Q2017 BHKP Confirmed

Fibria Três Lagoas II Brazil 1.75 Mt - BEKP Unconfirmed

COST CURVE EVOLUTION

U S D

/ A

d t , 2 0 1 3 c o s t

l e v e

l

Cumulative Capacity Million t/a

Cost positionof marginal

producer

Source: Hawkins Wright , Poyry and Fibria Analysis (as of December 2014).

0 2000 4000 6000

ENCECanfor

Resolute ForestSodra

IPDomtarMercer

EldoradoIlim

Weyerhaeuser

Stora EnsoMetsa Group

Paper ExcellenceGeorgia Pacific

UPM-KymmeneCMPC

SuzanoArauco

APRIL

Fibria

Bleached Softwood Kraft Pulp (BSKP)

Bleached Hardwood Kraft Pulp (BHKP)

Unbleached Kraft Pulp (UKP)

Mechanical Pulp (MP)

Gl b l M k t P l D d


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47

Global Market Pulp Demand

Demand growth rate

Hardwood (BHKP) vs. Softwood (BSKP) (000 ton)

Hardwood demand will continue to increase at a faster pace than Softwood

Source: PPPC

Source: PPPC. Excludes Sulphite and UKP market pulp (Mar/15)

NBSK vs. BHKP - Prices(1)

(1) Source: FOEX |Average spread in the last 5 years.

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

Hardwood Softwood

2014 - 2019 CAGR:Hardwood: +2.5%Softwood: +0.8%

000 ton 1999 2009 2019Growth1999-2009

Growth2009-2019

Hardwood 16.3 24.8 33.6 52% 35%

Eucalyptus 6.0 15.9 23.9 165% 50%

Softwood 19.0 21.4 24.8 13% 16%

Market Pulp 35.3 62.1 58.5

Paper Production – Runnability with BHKP

Source: RISI conference, August 2014.

Average spread:US$ 111

Spread Apr./15:US$99

400

500

600

700800

900

1000

1100

0

50

100

150

200

J a n

/ 1 0

M a r

/ 1 0

M a y

/ 1 0

J u l / 1 1

S e p

/ 1 1

N o v / 1 1

J a n

/ 1 1

M a r

/ 1 1

M a y

/ 1 1

J u l / 1 1

S e p

/ 1 1

N o v / 1 1

J a n

/ 1 2

M a r

/ 1 2

M a y

/ 1 2

J u l / 1 2

S e p

/ 1 2

N o v / 1 2

J a n

/ 1 3

M a r

/ 1 3

M a y

/ 1 3

J u l / 1 3

S e p

/ 1 3

N o v / 1 3

J a n

/ 1 4

M a r

/ 1 4

M a y

/ 1 4

J u l / 1 4

S e p

/ 1 4

N o v / 1 4

J a n

/ 1 5

M a r

/ 1 5

Spread Average spread BHKP NBSK

Benefiting From China’s Growth


48/49

48

World Tissue Consumption, 1991-2013 (3)

Per Capita Consumption of Tissue by World Region (3)China's Share of Market Pulp (2)

24

1515

12

7 6 5

1

N.America

WestEurope

Japan Oceania EastEurope

LatAm China Africa

10% 10%12% 14%

21%

17%

22%23% 23% 23%

0

2

4

6

8

10

12

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Eucalyptus Hardwood Total % Compared to the global Market Pulp

(Kg/capita/year)

(million t) (kg/person/year)

Between 2005 and 2014,the Chinese market shareof eucalyptus shipmentsincreased by 19 p.p. (totalmarket pulp: + p.p.)

0

5

10

15

20

25

30

35

1991 1996 2001 2006 2009 2010 2011 2012 2013N.America W.Europe E.Europe L.America

Middle East Japan China Asia FEOceania Africa

LTM GrowthRate +4.2%

Benefiting From China s Growth

(1) PPPC – Pulp China – Flash Report – March 2015

(2) PPPC – W20. Coverage for chemical market pulp is 80% of world capacity(3) RISI

(million t)

1.856

805

525 460

47 10 9

2.254

1.062

503 599

49 40 1

BHKP Total LatinAmerica

Indonesia Others* USA Canada WesternEurope

1Q2014

1Q2015

Latin America is theleading exporter of BHKPto China, accounting toapproximately 47% ofChina's total imports in1Q15.

(‘000s t)

* includes Russia, China, Thailand and New Zealand.

China’s Hardwood Imports of BHKP by Country (1)

Global Paper Consumption


49/49

Global Paper Consumption

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Developed Markets Emerging Markets

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Developed Markets Emerging Markets

CAGR 1996 – 2006Developed Markets: + 1.7%Emerging Markets : + 6.0%

85,291

117,611

15,548

37,474

P&WConsumption(000 tons) (1)

TissueConsumption(000 tons) (1)

114,507

CAGR 2007 – 2016Developed Markets: - 4.0%Emerging Markets : + 4.1%



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