UBS 14th Global Emerging Markets One-on-One … Presentation... · UBS 14th Global Emerging Markets One-on-One Conference ... Outlook for Eucalyptus Market Pulp Oct 2016 and Fibria

UBS 14th Global Emerging Markets One-on-One Conference December, 2016

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 ofrisk 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

3

Pulp and Paper Market2Financial and Operational Highlights3

Agenda

Company Overview1

2017 Outlook – CAPEX and Cash Cost4Expansion Project – Horizonte 2

Back up65

4

Company Overview

5

Shareholder Structure and Corporate Governance

(1) Controlling group (2) Free Float 41.44% + Treasury 0.06%

Votorantim S.A. (1)

29.42%

BNDESParticipações (1)

29.08%

FreeFloat (2)

41.50%

► 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

Listed on Novo Mercado, highest level at BM&FBovespa:

Policies approved by the Board of Directors:

Fiscal

Council

Board of

Directors

20% independent members

Role of CEO andchairman is split

Personnel

and

Remuneratio

n Committee

Statutory

Audit

Committee

Finance

Committee

Sustainability

Committee

Innovation

Committee

30%

independent

members

100%

independent

members

50%

independent

members

45%

independent

members-

General

Meeting

► Indebtedness and Liquidity

► Market Risk Management

► Risk Management

► Corporate Governance

► Related Parties Transactions

► Anti-Corruption

► Information Disclosure

► Securities Trading

► Antitrust

► Genetically Modified Eucalyptus

► Dividend Policy

► Sustainability NEW

6

A Winning Player

Port Terminal Pulp Unit

Três Lagoas Unit and Horizonte 2 Project

Santos

AracruzPortocel

Caravelas

BelmonteVeracel

Jacareí

Superior Asset Combination Main Figures – 3Q16 LTM

Pulp capacity(1) million tons 5.300

Net revenues US$ billion 2.777

Total Forest Base(2) thousand hectares 969

Planted area(2) thousand hectares 568

Net Debt US$ billion 3.272

Net Debt/EBITDA (in Dollars)(3) X 2.64

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, 2015. (3) For covenants purposes, the Net Debt/EBITDA ratio is calculated in Dollars.

7

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

8

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

Lower dependence on volatile markets such as China

Efficient logistics set up

Low counterparty credit risk

100% certified pulp (FSC and PEFC/Cerflor)

Sales Mix by Region and by End Use - Fibria Highlights

Fibria’s Commercial Strategy

Net Revenues by Region - Fibria

Region – 9M16 End Use - 9M16

39% 41% 43% 39%

28% 24% 24%20%

24% 25% 24%30%

9% 10% 9% 11%

2013 2014 2015 9M16

Europe North America Asia LatAm

52%

29%

19%

Printing & Writing

Specialties

Tissue

Europe39%

N. America

20%

Asia30%

LatAm11%

9

Leadership Position

(1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Global 100 Report December 2015

Recycled Fiber 242 million t

46% 54%

59%

18% 82%

59% 41%

41%

30% 70%

25%75%

Fiber Consumption412 million t

Pulp 169 million t

Chemical140 million t

Mechanical30 million t

Integrated Mills 83 million t

Market Pulp 57 million t

Hardwood31 million t

Other Eucalyptus Pulp producers:

16 million t

Softwood/Other 26 million t

Acacia/Other 9 million t

Eucalyptus21 million t

Industry Outlook(1)

10

Pulp Supply Agreement: Puma Project

► 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)

► Sales destination: Globally, except for South America

► Operational startup: Mar/2016

► Agreement benefits:

Puma Project

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

Logistics and commercial structure synergies;

Ensure sales volumes;

Ensure pulp market access with Klabin brand.

Logistics and commercial optimization and synergies;

Support customers’ growth and enhance customers’ needs;

Potential development of new customers.

11

Pulp and Paper Market

12

What happened in 2016 ? … Compared to our Forecast

BHKP CAPACITY CHANGES

**Source: Fibria’s estimates **Source: Total year Fibria estimates and PPPC G100 BEKP demand growth Jan-Sep 2016

FIBRIA’S EXPECTED SCENARIO FOR 2016 YEAR-TO-DATE SCENARIO IN 2016 (Jan –Sep)

1004

870

-350

-100

-90

-40

20

30

600

800

BEKP demand growth**

Net

Unexpected Closures,Conversions and Downtime

APRIL Kerinci

Woodland

Old Town (Expera)

Ence Navia

Altri Celbi

Klabin

CMPC Guaiba II

1,3001,500

985

-200

-120

-55

-90

-40

30

660

800


Net


APRIL Kerinci

Verso Wickliffe

Woodland

Old Town (Expera)

Altri Celbi

Klabin

CMPC Guaiba II

China, Uruguay, Chile,

Spain and Brazil

Actually... 2016 has been even more “balanced” than previous 2 years !

13

Ratio: Demand Growth /

Net Capacity Increase

2012 2013 2014 2015 2016

Eucalyptus Demand Growth

(Kt)

Hardwood Net Capacity

Increase (Kt)

370

1.305 1.619

1.088

1.300

30

605

1.770

1.450

870

12.33 2.16 0.91 0.75 1.50

Source: PPPC - Global 100 (historical demand), Outlook for Eucalyptus Market Pulp Oct 2016 and Fibria’s estimates

Yet…Prices performance has been much worse than forecasted!

14

BHKP DELIVERED TO EUROPE (USD/T)

* Average until 11/22/16 | Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2015 for 2016 prices)

758

764756 757 759765

696

671

656

697

1Q16 2Q16 3Q16 4Q16 Annual 2016

Consultants' average end 2015 for 2016 Realized PIX/FOEX

*

*

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)

15Source: PPPC Global 100

2013 2014

2015 2016, YTD Jan-Sep

5.3%

5.5%

-0.2%

19.0%

-300

0

300

600

900

1200

1500

Global NA WE China

3.3%

5.2% 2.0%5.2%

-300

0

300

600

900

1200

1500

Global NA WE China

3.3%

-3.5%

3.7%6.2%

-300

0

300

600

900

1200

1500

Global NA WE China

3.0%

-4.7% -2,5%

11.4%

-300

0

300

600

900

1200

1500

Global NA WE China

SO WHAT CAN WE EXPECT IN 2017 ? …SAME AS 2016 ?

BHKP CAPACITY CHANGES

16** Fibria’s estimates | Source: PPPC - Global 100 (historical demand), Outlook for Eucalyptus Market Pulp Oct 2016 and Fibria’s estimates

FIBRIA EXPECTED SCENARIO FOR 2017 IN THE END 2016 SCENARIO IN 2017

Ratio: Demand

Growth / Net

Capacity

Increase

2012 2013 2014 2015

Eucalyptus

Demand Growth

(Kt)

Hardwood Net

Capacity Increase

(Kt)

2016

370

1.305 1.619

1.088

1.300 1.350

30

605

1.770

1.450

870 770

2017

12.33 2.16 0.91 0.75 1.50 1.75

1350

770

-550

-60

-40

-80

-300

-100

100

300

1000

500


Net


Navigator Cacia

Resolute Calhoun

Taiwan P&P

APRIL Rizhao

APRIL Kerinci

Metsa

Fibria TLS II

APP OKI

Klabin

17

We don’t think so !Because, we expect a combination of the following factors:

USA: a recovery of the

demand for Eucalyptus

mainly triggered by a

few local HW closures

(temporarily or not)

U$ strengthening / loss

of competitiveness of

local pulp producers

(integrated or not)

Europe: a recovery of the HW demand due to increasing

competitiveness of the European papermakers

Euro devaluation... U$/Euro parity !?

China: an on-going increase of the demand for Eucalyptus Pulp

New paper capacities: 2,3 million tons/y of which:

Tissue = 600 kton/y

UWF = 400 Kton/y

On-going substitution of non wood fibers and old pulp mills

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!

18

Shipments of Eucalyptus Pulp

Global Market BEKP Demand

Paper Capacity increase in China

2014 2015 2016

FORECAST REALIZEDPREVIOUS FORECAST

LATEST FORECAST

LATEST FORECAST

Woodfree 256 256 760 980 1,000

Tissue 1,390 1,278 1,365 965 568

Cartonboard 2,100 1,326 730 900 630

Total 3,746 2,860 2,855 2,845 2,198

Source: Fibria and Independent Consultants

9M16 vs. 9M15(1)

(1) Source: PPPC Global 100 - September/2016

676kt

-114 -171

788kt

173

1,004kt

21 -149

966kt

166

Total North America WesternEurope

China Others

BHKP BEKP

6%

1% -2% -3%

11%

20%

3% 4%

(1) Source: PPPC Global 100 – September/2016

3%

-5%

97%

70%

75%

80%

85%

90%

95%

100%

105%

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

Min. = 78%

Operating Rate (shipments to capacity) - Hardwood (1)

19

Technical Age and Scale in the Pulp IndustryFurther closures are expected due to lack of adequate investments in the industry…

Hardwood (BHKP) Producers – Integrated and Market Pulp Mills

Softwood (BSKP) Producers – Integrated and Market Pulp Mills

STRONG

Weighted average

technical age 12.3 years

Weighted average

capacity 1,350,000 t/a

Aracruz

Três Lagoas

Veracel

Jacareí

WEAK

STRONGWeighted average

technical age 21 years

Weighted average

capacity 534,000 t/a

North American Pulp Mills Other Pulp Mills

WEAK

More than 6.6 million tons of capacity above 25 years and with annual capacity below 500,000 t/y.

PM Capacity, 1000 t/a

0

500

1000

1500

2000

051015202530

Technical age, years

PM Capacity, 1000 t/a

0

100

200

300

400

500

600

700

800

900

1000

051015202530

Technical age, years

Source: Poyry

20

Source: PPPC. RISI and Public information as of November, 1st

Closures of Hardwood Market Pulp Capacity Worldwide(000 ton)

Capacity closures DO happen

-910

-85

-1,260-1,180

-540-500

-105

-1,085

-445

-315

-985

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016-2018 (1)

(1) Realized closures: as of September 2016 | 2016: -90kt Woodland (USA), -100kt April Kerinci (Indonesia) | 2017: Resolute Calhoun: -40kt, -400kt April Kerinci (Indonesia), -80kt Taiwan P&P | 2017/2018: -275kt Arauco Valdivia (Chile)

Closures do not include temporary movements. Unexpected downtimes this year totaled 130kt (not included in the chart above).

Potential Additional

Conversions

Competitive Cash Production Cost

21

Source: Hawkins Wright (Price Forecast August 2016) and Fibria’s 3Q16 Earnings Release -FX considered by the consultant at BRL/USD = 3.19.

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.

453 437

351 351305 299

232 206155

5254

110

3160 57

5648

57

505 491461

382 365 356

28843

37

7

7

115

92

20

20

408

368

USA China Canada Iberia Indonesia Chile/Uruguay Brazil Fibria 9M16 EstimatedFibria w/ H2 -

2021Cash Cost (US$/t) Delivery CIF Europe

Capex

SG&AIncome tax

Interest

WC=($31/t)

BHKP (USD/t)

BHKP

capacity

(‘000 t)

1,130 1,105 2,075 2,290 4,915 3,420 15,275 TOTAL: 30,210

22

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

Cap

acit

y A

dd

itio

ns

(00

0 t

on

)

0

0,5

1

1,5

2

2,5

0

200

400

600

800

1000

1200

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

BHKP BSKP

Valdivia

APP Hainan

Veracel Nueva Aldea

Santa Fé

Mucuri

FrayBentos

KerinciPL3

Três Lagoas

Rizhao

APP Guangxi

ChenmingZhanjiang

Eldorado

Montes del Plata

Maranhão

Guaíba II

APP South Sumatra(2)

Klabin

OjiNantong

Horizonte 2

Pu

lp p

rice

s -

CIF

Eu

rop

e (U

S$/t

on

)

(1) Source: Hawkins Wright , Poyry and Fibria Analysis. Pulp price estimates according to Hawkins Wright (Apr/16), Brian McClay (Jun/16) and RISI (Apr/16)(2) Partially integrated production.(3) Source: Bloomberg

Spread @Nov 22nd: US$154/t(3)

In the last 15 years, pulp volatility has been just 8%...why?

23

► Market price closer to producer’s marginal cost

► The marginal cost producers are based in Europe and North America

► Flattish industry cost curve

► Higher flexibility to adjust supply side during imbalanced market

► Lower dependency on Asian market (~25%) compared to hard commodities (70%+)

► Market end users are linked to consumer goods, such as tissue

► Incipient pulp price futures market and low liquidity

Source: Bloomberg – November 22nd, 2016

0

40

80

120

160

De

c-9

9A

pr-

00

Au

g-0

0D

ec-

00

Ap

r-0

1A

ug-

01

De

c-0

1A

pr-

02

Au

g-0

2N

ov-

02

Mar

-03

Jul-

03

No

v-0

3M

ar-0

4Ju

l-0

4N

ov-

04

Mar

-05

Jul-

05

No

v-0

5M

ar-0

6Ju

l-0

6N

ov-

06

Mar

-07

Jul-

07

No

v-0

7M

ar-0

8Ju

n-0

8O

ct-0

8Fe

b-0

9Ju

n-0

9O

ct-0

9Fe

b-1

0Ju

n-1

0O

ct-1

0Fe

b-1

1Ju

n-1

1O

ct-1

1Fe

b-1

2Ju

n-1

2O

ct-1

2Fe

b-1

3Ju

n-1

3O

ct-1

3Ja

n-1

4M

ay-1

4Se

p-1

4Ja

n-1

5M

ay-1

5Se

p-1

5Ja

n-1

6M

ay-1

6Se

p-1

6

BHKP - FOEX Europe (base 100) CPI (base 100)

24

Lowest volatility among commodities

Source: Bloomberg – November 25th, 2016

Low volatility of hardwood pulp price, even though

new capacities have come on stream during the period.

20

50

80

110

140

170

200

230

Jan

-12

Feb

-12

Ma

r-1

2

Ap

r-1

2M

ay-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oc

t-1

2

No

v-1

2D

ec

-12

Jan

-13

Feb

-13

Ma

r-1

3

Ap

r-1

3M

ay-1

3

Jun

-13

Jul-1

3

Au

g-1

3

Se

p-1

3O

ct-

13

No

v-1

3D

ec

-13

Jan

-14

Feb

-14

Ma

r-1

4

Ap

r-1

4M

ay-1

4

Jun

-14

Jul-1

4

Au

g-1

4

Se

p-1

4O

ct-

14

No

v-1

4D

ec

-14

Jan

-15

Feb

-15

Ma

r-1

5

Ap

r-15

Ma

y-1

5

Jun

-15

Jul-1

5

Au

g-1

5

Se

p-1

5O

ct-

15

No

v-1

5D

ec

-15

Jan

-16

Feb

-16

Ma

r-1

6

Ap

r-1

6M

ay-1

6

Jun

-16

Jul-1

6

Au

g-1

6

Se

p-1

6

Oc

t-1

6

No

v-1

6

Iron Ore Soy Bean Crude Oil Sugar BHKP - FOEX Europe Exchange Rate (R$/US$)

100

183

855747

100 = January 1, 2012

37% 35% 34%

27% 26% 25% 24% 23%

17%14%

6%

WTI Crude Oil Sugar Nickel Iron Ore Copper Soy Ibovespa LME Metals Cattle FX BHKP

2Since January 1, 2009 up to November 25th, 2016

Historical Volatility of Commodities (US$) 2 – Lower than FX

87

25

Financial and Operational Highlights

26

Each 5% depreciation of the Real increases EBITDA by aroundR$420m and FCF by R$550m

815

1,488

1,173 1,1531,295 1,185

1,560

1,241

2009 2010 2011 2012 2013 2014 2015 3Q16 LTM 2016 (e)

Exchange Rate Average (R$/US$)

EBITDA Margin

EBITDA (US$ million)

Fibria net pulp price(US$/t)

Fibria net pulp price(R$/t)

2.00 1.76 1.67 1.95 2.16 2.35 3.33 3.62 3.45(1)

456

670 639 581 610 572 582

528 506(2)

29%

40%34% 36%

40% 39%

53%48%

912 1,179 1,067 1,133 1,311 1,3441,951 1,911 1,746

(1) According to Focus Report (Brazilian Central Bank – November 25th, 2016) I (2) 2016 market consensus

27

Cash Production Cost (R$/t) – 3Q16

659 662

624

638

3Q15 2Q16 3Q16

- 4%

Operational stability Wood FX

• X

659 638

(55) 27 14 ( 10 ) ( 7 ) 6 4

3Q15 Maintenancedowntimes

Wood Utilities Chemicals andenergy

FX Materials andServices

Others 3Q16

-3.2%

Cash Production Cost (R$/t) – 3Q16 LTM

Ex-downtime

28

Cash Production Cost in dollars saw a decrease over the past 7 years

But lately, it has been

influenced

by non-recurring

effects:

Wood

Energy price

Input consumption

Consistently

controlling the cash

production cost

Fibria’s Cash Production Cost(1) (USD/ton)

231

264281

242 234220

186 184

2009 (2) 2010 (2) 2011 2012 2013 2014 2015 3Q16LTM

1.99 1.76 1.67 1.95 2.16 2.35 3.33 3.62Average

FX (BRL/USD)

(1) Excludes Conpacel

Net Results (US$ million) – 9M16

29

(1)

827

494493

192(85)

(395)

(394)

(144)

AdjustedEBITDA

FX Debt MtMhedge

NetInterest

Deprec., amortiz. and

depletion

Taxes Others NetIncome

Non-recurring effects

∆∆

deferred

current

(1) Includes other Exchange rate/monetary variations, other financial income/expenses and other operating income/expenses.

30

234

124

( 172 ) ( 18 ) 101

( 21 ) ( 0 )

Adjusted EBITDA Capex(ex-H2 project

and pulp logistics)

Net interest Working capital Income tax Others FCF(2)

(1) Does not consider Horizonte 2 Project and pulp logistics projects.(2) Includes other financial results.

KlabinEffect

Free Cash Flow – 3Q16 (1) (US$ million)

31

ROE and ROIC (R$)

ROE = Adjusted EBIT(1)/ Equity before IAS 41(2) ROIC = Adjusted EBIT(3)/ Invested Capital before IAS 41(2)

(1) Adjusted EBITDA – CAPEX – Net Interest – Taxes (2) International accounting standards for biological assets.(3) Adjusted EBITDA – CAPEX – Taxes

AverageFX

(R$/US$)1.95 2.16 2.35 3.33 3.62 1.95 2.16 2.35 3.33 3.62

AverageNet Pulp

Price(US$)

581 610 561 586 531 581 610 561 586 531

AverageFX

(R$/US$)

AverageNet Pulp

Price(US$)

3.4%5.7% 6.2%

25.1%

16.1%

2012 2013 2014 2015 3Q16UDM

6.9%9.2%

8.0%

22.8%

15.6%

2012 2013 2014 2015 3T16UDM

32

Indebtdeness

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

Gross Debt and Cash Position (R$ million)

473414 408

350

268

200141 158

96143

10878

45 39 39 54

2009 2010 2011 2012 2013 2014 2015 3Q16 LTM

6.3 5.95.5 5.2

4.6

3.4 3.3 3.3

Interest Expense (Gross)Average cost in US$ (% p.a.)

Net Debt (Million) and Leverage

Interest Expense/Income (US$ million) and Cost of Debt in US$(1)

12,526 12,70514,192

818 2,983 3,572

Sep/15 Jun/16 Sep/16

Gross debt Cash

9,578 9,722 10,620

2,411 3,029 3,272

Sep/15 Jun/16 Sep/16

R$ US$

2.07

1.822.33

1.58

2.102.64

Net Debt/EBITDA (R$) Net Debt/EBITDA (US$)

Interest on Financial Investments

6.3 5.95.5

5.24.6

3.4 3.3(1)

Cost of debt

33

Robust Liquidity – USD million(@October 31, 2016)

0.4

1.20.20.1

0.1

0.30.1

1.2

0.6

0.2

0.10.3

ExportPrepayment

ARC BNDES (2) FDCO ECA Working capitalrelease (3)

Total

997

547

106

323

541

1,000763

600

94

335

666

64 22 15

Liquidity 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Export Prepayment BNDES ECN ACC/ACE Voto IV Bonds Finnvera CRA and Others

Cash on hand (1)

1,544

Revolving

H2 capex to be disbursed(1): USD 1.3 bn Funding to be withdrawn: USD 1.2 bn

2.4

HORIZONTE 2 FUNDING (USD BILLION)

Funds withdrawn until Oct 31, 2016

Contracted funds to be withdrawn

3Q153Q15

0.1 - 4Q16

0.5 - 2017

0.2 - 4Q16

0.1 - 20170.3 - 4Q16

Capex H2 (2): 277 982 80

Not including USD17 million related to MtM of hedging transactions. | (2) Capex disbursement of USD916 million up to October 31, 2016. Actual and forecast FX BRL/USD of 3.46 and 3.23, respectively.

Horizonte 2

Project

USD 2.3 bn

Excess of

USD 0.1 bn

New CRA

+USD 0.4 bn

(1) Horizonte 2 Project capex to be disbursed (cash). | (2) BRL423 million withdrawn on October 18, 2016. | (3) Related to the agreement with Klabin.

34

Zero refinancing risk up to 2018… not including FCF generation!

1.0

0.4

0.3

0.5

(1.0)0.6

0.20.1

0.3(1.3)

Cash PositionOct./2016

Debtamortizations

2016-2018

BNDES FDCO ECA Workingcapitalrelease

4th CRA CapexHorizonte II

Cash PositionEnd 2018

(1) 4th CRA FX BRL/USD 3.2462 (closing FX 3Q16)

2016 - 2018

Revolving

Cash on

hand

H2 Funding

1.5

Cash on

hand

USD BILLION

35

Initiatives for Leverage Management

Amount

Net

Debt/EBITDA

reduction

(USD

million)(x)

Working Capital Release 95 0.09x

Accounts receivable (customers) 40 0.04x

Accounts payable (suppliers) 55 0.05x

Capex 96 0.10x

Forestry 31 0.03x

Capex H2 65 0.07x

Total 191 0.19x

Initiatives expected to be implemented

in the short term

Initiatives under analysis

Amount

Net

Debt/EBITDA

reduction

(USD

million)(x)

Accounts payable (suppliers) 420 0.37x

Others 110 0.12x

Total 530 0.49x

Total: USD 721 million (0.68x)

36

Waiver on 4.5x Covenant was Fully NegotiatedHorizonte 2 start up in 4Q17 boosts EBITDA and FCF generation

Leverage guidelines:

Range of 2.0x to 2.5x net debt/EBITDA

Maximum 3.5x net debt/EBITDA during expansion

cycles

Highlights:

Covenants only triggered if Fibria loses the

Investment Grade by 2 of the 3 rating agencies

During the most critical periods of expansion, 4.5x

covenant was waived

NET DEBT/EBITDA (USD)

1.86 2.10

2.64

4.5 4.5

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2018 2019

Actual (in US$)

Covenant level Waiver

3.5x

2.0x – 2.5x

Indebtness and

Liquidity limits (1)

(1) As stated on the Liquidity and Indebtedness Policy and Shareholders Agreement

37

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

Net Debt/EBITDA (x)(1)

Fibria Arauco CMPC Klabin Suzano

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

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

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

(1) Fibria’s historical data in BRL.

2.3

2.4

5.1

3.43.6

8.1

4.2

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Fibria Suzano Klabin CMPC Arauco Eldorado

38

One of the best performances among Brazilian corporate issuers(1)

(1) G-spread on November 17th, 2016

Historical G-spread (bps)

BBB-

BBB-

Rating Outlook

Negative

Stable

0

200

400

600

800

1000

1200

1400

2010 2011 2012 2013 2014 2015 2016

Fibria 2020 - 7.5% Fibria 2021 - 6.75% Fibria 2024 - 5.25%

281 287 301 309 319 345 385 395 418471 512

1,307

BRAZIL BRFOODS GLOPAR EMBRAER VALE FIBRIA KLABIN BRASKEM SUZANO GERDAU PETROBRAS ELDORADO

39

2017 OUTLOOK - CAPEX AND CASH COST

1,971

2.055

2016 GuidanceUpdate

∆ Inflation FX Others 2017 Guidance

Fibria CAPEX 2017, except H2 Project – BRL million

40

(1) Converted at 3Q16 LTM FX – BRL/USD 3.62 | (2) Converted at 2017 average FX - BRL/USD 3.40, according to Focus Report (Brazilian Central Bank – November 18th, 2016)

(3) Subject to Board approval

USD544 mn(1)

USD621 mn(2)

(3)

Structural CAPEX – BRL million

41

(1) Converted at 2017 average FX - BRL/USD 3.40 - According to Focus Report (Brazilian Central Bank – November 18th, 2016)

(2) Subject to Board approval

2.055

1.662

2,068

2017Guidance

Modernization Non-recurringwood purchase

Forestryequipments

Non-recurringprojects

Turbogeneratoroverhaul

Structuralcapex

H2 sustainingcapex

Structuralcapex with H2

USD

621 M(1)

USD

489 M(1)

USD

608 M(1)

(2)

Cash Cost update (USD/t) @2021BRL/USD 3.19

42(1) Converted at 3Q16 LTM FX at BRL/USD 3.19

206

155 (26) (19) (2) (1) (3)

LTM 3Q16 Horizonte 2Project

Wood costreduction

Bleaching line B Maritime woodshipping project

Others 2021

FX Cash cost (US$/t)

3.00 164

3.10 159

3.19 155

3.30 150

3.50 142

FX Sensitivity

43

Expansion Project – Horizonte 2

44

• Follow the growth of strategic customers

• Developing new customers

• Distribution to new geographic markets

• Efficiency and competitiveness gains in logistics

• Higher quality in customer service

• Greater ability to capture new expansion market windows

• Strong M&A position

Competitiveness

Commercial

positioning

Long-term growth

potential

What is the importance of growth for Fibria?

• Wider fixed costs dilution

• Cost curve position improvement

• Greater bargaining power with suppliers

45

Fibria’s nominal capacity

5,300 5,300 5,300 5,300 5,300 5,300

900 900 900 900 900 900

300

1,740 1,850 1,950 1,950 1,950

2017 2018 2019 2020 2021 2022

Horizonte 2 ('000 t)(1)

Klabin's Puma Project ('000 t)(1)

Current Production ('000 t)

ESTIMATED MARKET BHKP CAPACITY RANKING 2017 (000T)

6,500

7,940 8,050 8,150 8,150 8,150

Source: RISI, Hawkins Wright, PPPC and Fibria (Nov 2016)

0 2000 4000 6000 8000

Domtar

Soedra

Klabin

International Paper

Lwarcel

Resolute

Verso

Georgia Pacific

Woodland

Navigator

Metsä

Oji

Nippon

Ilim

Marubeni

Mondi

Altri

Ence

Cenibra

Stora Enso

Arauco

Eldorado

UPM

CMPC

April

Suzano

APP

Fibria 8,150

Current Capacity

New Capacity

New Capacity – Klabin Agreement

New Capacity – Horizonte II Project

(1)The volumes in 2016, 2017 and 2018 will depend on the learning curve of the plants. The agreement with Klabin may be renewed by mutual consent.

46

Pulp sales destination: Fibria growing where the market grows

(1) Considers 3Q16 last twelve months. | (2) Includes Klabin’s sales volume

37%

36%

40%

27%

19%23%

8%10%

Total sales volume distribution

after H2 start up(2)

Current net revenue distribution(1)

47

Horizonte 2 Project

Site Overview

47%of financial execution

- cash disbursement

(BRL 3.5 billion)

71%overall completed

Energy Surplus

130 MWh

Start-up

beginning of

4Q17

Expansion

Capex of

USD2,254 M (USD1,156/t)

48

H2 Project Evolution – “S” CurveExecution performance better than forecasted

(1) Capex disbursement (cash).

General Progress Curve – Horizonte 2

0,0

20,0

40,0

60,0

80,0

100

0,0

2,0

4,0

6,0

8,0

mai jun jul ago set out nov dez jan fev mar abr mai jun jul ago set out nov dez jan fev mar abr mai jun jul ago set out

2015 2016 2017

Update:

16-Oct-31

Startup

beginning

4Q17

% month % accumulated

Forecast Actual Projected -

accumulated.

Realized Ac -

accumulated

49

H2 Project TimelineMain next steps to startup

Beginning of harvest

(Jan 17)

Startup

(4Q2017)

Beginning of

infrastructure and

purchase of the TGs

Purchase of the

industrial plants

Negotiations with

concession holders

and Port of Santos

tendering

Hiring of

operational team

Beginning of

construction

Beginning of

assembly Beginning of

forest

machinery

deliveries

Definition of

outbound logistics

formats

Initial hiring of

harvest workers

Beginning of the commissioning

of water treatment station

(Dec 16)

Hydrostatic test of the

Recovery Boiler

(Apr 17)

Start of nursery

operations

(Mar 17)

Commissioning and

testing of industrial

plant

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

2015 2016 2017

50

Already planted since project approval

125,000 ha

To be planted

62,000 ha

Total

187,000 ha

Wood purchased

5.0 million m3

7,000 ha to be planted in 2016

55,000 ha to be planted in 2017 and 2018

Average distance from forest to mill H1 + H2 up to 100 km

Horizonte 2 Forestry BaseForestry base secured as planned

51

Logistics

Mato Grosso

Mato Grosso do

Sul

Goiás

Brasilia

Port Terminal 32

52

CapexFlexibility in the Timetable, without changing the startup date

TOTAL CAPEX (BRL BILLION) CAPEX DISBURSEMENT TIMETABLE (BRL MILLION)

2,616 2,686

1,122380

205

3,859

3.170

257

2015 2016 2017 2018

BRL EUR USD

6,334 5,629

1,6571,526

754

337

8,745

7,492

Nov. 2015Forecast

CurrentForecast

3%

52%

42%

- BRL 1,253 mn

73%

19%

8%

75%

20%

5%

USD 2.396 bn(1) USD 55 mn USD 982 mn USD 79 mn

(1) FX = 3.65 BRL/USD on previous forecast. FX = 3.32 BRL/USD on current forecast. (2) Average FX according to capex execution.

USD 2.254 bn(1)

3.72FX(2) 3.23 3.26

3%

3.39

USD 1,194 mn

53

8,745

3,168

4,324

7,492

November, 2015 Savings,Contingencies

and indirect costs

FX Inflation Others October, 2016

To be

disbursed

Executed

USD 2,214 USD 2,259

BRL/USD 3.95 BRL/USD 3.32

BRL/

USD

3.23

BRL/

USD

3.46

Historical Horizonte 2 Project Capex (USD million)

54

FundingCost and maturity

Amortization Schedule (2) – 3Q16 Proforma with TLS II – US$ million

3Q16 2Q16 + H2

Average Cost (US$ p.a)(1)

Average Maturity (years)

3.3%

4.1

3.1%

4.5

H2

2.6%

6.1

(1) Considering swap curves. | (2) FX considering new funding for the TLS II Project: 3.2098

228

315

536

868

732

577

76

317

648

4614 14

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Pre-Payment BNDES ECN Voto IV Bonds Finnvera CRA & Other

55

Horizonte 2 project assumptions

(1) Includes chemical leasing and to increase capacity to 1,950 kt/year (FX BRL/USD @3.32)

(2) Estimated sustaining capex in perpetuity (FX BRL/USD @ 3.30)

(3) Estimated weighted average cost, after mill balance. Includes energy sales (FX BRL/USD @3.30)

Pulp production/year k tons 1,950 1,950

Expansion capex(1) $ billion 7,492 2,254

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 - 490

Free Cash Flow (estimated) $/t - 170-220

Payback period (estimated) years - 5.3-6.8

(4) Cash cost + freight + SG&A + Sustaining Capex + Interest + taxes (FX BRL/USD @3.30)

(5) 2017 market consensus.

56

Final Remarks

• Economies of scale

• Synergies with current operations

• Wood availability and low distance from forest to mill

• Fibria’s total energy surplus to be increased by 130 MWh

• Cash cost competitiveness

• Meet customers’ demand growth

• Attractive returns even in adverse scenarios of pulp price and BRL

• Solid financial profile

57

BACK UP

58

Dividends

59

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

Policies approved by the Board of Directors

60

Approval of Dividend Policy

►Proposed dividends based on cash generation, taking into considerationthe company’s strategic planning and in line with its policies, notably the

Indebtness and Risk Management policies.

►Preserving Investment Grade.

Commitment to Corporate Governance best practices.

Extraordinary dividend if Policy criteria are met.

61

Dividends

(1) Considering March 7, 2016 FX – R$/US$3.7714

DIVIDEND YIELD AT DEC 31, 2015 = 7.5% (BRL) | 8.3% (USD)

2016

April 27, 2016 Mid-May, 2016 Mid-November, 2016 Mid-December, 2016

GSM approved dividend

distribution of USD80 million(1)

(1.1% of dividend yield as at

Dec. 31, 2015).

Dividend payment

of USD 80 million.

Extraordinary

dividend

appraisal

Extraordinary

dividend

payment

(if approved)

2017

April, 2017 Mid-May, 2017 Mid-November, 2017 Mid-December, 2017

OGM to approved

dividend

distribution

Dividend payment

to occur from May

onwards

Extraordinary

dividend

appraisal

Extraordinary

dividend

payment

(if approved)

62

Dividends vs. Leverage

148

2,000

304

2.30

1.95

1.58

1.781.86

2.10

2.64

0,00

0,50

1,00

1,50

2,00

2,50

3,00

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Dividends (R$ million) Leverage (x)

63

Historical Dividend Yield(1)

(1) Source: Bloomberg – Financial Analysis - Multiples

ConsideringMarket Capas ofDecember, 31st, 2015

64

Best dividend yields of 2015 among Brazilian corporate issuers

Source: Economática – the dividend yield calculation considers share price at the beginning of 2015

Dividends per share (R$)

Dividend Yield(%)

Cesp 4.85 20.78

Fibria 3.88 11.60

Santander BR 0.46 9.81

Qualicorp 1.89 7.02

MRV 0.39 5.55

BBSeguridade 1.68 5.53

TelefBrasil 2.73 5.32

Natura 1.48 4.67

Braskem 0.61 4.64

CSN 0.41 4.48

65

Cost reduction initiatives and industry statistics

66

Structural Competitiveness

1. Third-party wood reduction

2. Forestry operations productivity

3. Industrial

NPV: US$0.7 billion

NPV: US$0.6 billion

NPV: US$0.1 billion

Total : US$1.4 billion

THIRD-PARTY WOOD REDUCTIONNon-recurring impacts starting to decrease

Third party wood increase from previous forecast due to recent rain shortage at Aracruz Unit forest base and optimization of Três Lagoas forest base

The average distance will drop sharply generating an Opex reduction

67(1) Does not include Veracel but considers H2 Project forest base | (2) FX @ BRL/USD3.30.

NPV from peak to normalized level(2):CAPEX: BRL1.5 billion (USD 0.5 million) | OPEX: BRL 1.0 billion (USD 0.3 million)

Total NPV:

BRL2.5 Bn or USD0.8 Bn

788Th

ird

-par

ty w

oo

d (

%)

225193 197 187 181 194

242

311 307 290239

190 173 170 167 166 164

0

50

100

150

200

250

300

350

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Average distance from forest to mill

Third-party wood

Averag

e distan

ce from

forest to

mill (km

)

68%34% 63% 73% 67% 75% 67%% Planting

► Most part of the standing wood was already paid

► Despite the higher forest to mill distance, the wood from Losango is less expensive than the

available wood from around Espírito Santo and Bahia States

► Positive impact over industrial costs due to better productivity

1. Third-party wood reduction

Losango

68

The distribution costs by classes help us to apply resources in order to optimize wood production

10%

20%

40%

20%

10%10%

36%33%

15%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

01 - Diamond 02 - Gold 03 - Silver 04 - Bronze 05 - Lead

Current effective area Future effective area


CLASSIFYING THE FOREST BASE BY CATEGORIES

Structural change improving competitiveness

69

Possible Restrictions

Declivity

0: Higher than 35°

1: Btw 24°and 35°

2: Btw 0° and 24°

ConservationAreas

0: Within CAs(1)

1: Within EPA(2) andEBZ(3)

2: Out of EPAs andEBZ

Municipal Restrictions

0: Total restrictions1: Partial restrictions2: No restrictions

EPA Altitude

0: Higher than1800m1: Lower than1800m

Urban Zones

0: Urban Zones1: Outside urbanareas

Remnants ofnativevegetation

0: Remnants areas1: Outside remnantsareas

Possible Impediments

Possible combinations

X 0, 1 and 2, removed;

4 e 8, high potential(1) Conservation Areas(2) Envionmental Protection Areas(3) Environmental Buffer Zones


Identifying opportunities based on these combinations

70

Roads

Transportation

SilvicultureHarvest


Cost and Capex KPIs were also included in this geo-model

71

Mixed Harvest Mechanization (Hilly areas)


► Mixed cutting operation with high demand for MO and high risk to safety;

► Harvest limitations in areas above 24 degrees;

► Increase annual capacity to harvest in areas up to 35 degrees , previously "locked up" by harvesting capacity of manual staff;

► NPV: R$71 million

► Capex: R$5 million

► Operational since Aug 2015

PROJECT DESCRIPTION (JACAREÍ UNIT)

Harvest

72

PIFF

► Freight cost reduction;

► Increased load box for timber/woodchip transport

► Use of lightweight steel;

► Operational risk reduction (flipping);

► Investment: R$33 million


► Startup: 2015 / 2016

PROJECT DESCRIPTION (ARACRUZ, JACAREÍ AND TRÊS LAGOAS UNITS)

Timber transportation Woodchip transportation


Transportation

73

Maritime Wood Shipping Project

► Capex and Opex reduction;

► Increase in cargo handling due to increase in

stack height volume

► Reduction in heavy truck road traffic



► Startup: Jan/2017

PROJECT DESCRIPTION (ARACRUZ UNIT)


Transportation

74

10%

30%

50%

70%

90%

100%

0%

20%

40%

60%

80%

100%

2015 2016 2017 2018 2019 2020

2. Structural change in forestry operations productivity

• Structural cost reduction of R$170 million per year (Capex + Opex) in 2020;

• NPV of approximately R$2 billion

• Seek opportunities for purchase / lease of more attractive areas, divest from unattractive land/forest, as well as the implementation of

technologies that will lead us to the structural cost

NPV Expected Curve

75

3. 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


76

Biological Sludge Dryness Process

3. Industrial: Biological Sludge Dryer

► Variable cost reduction associated

with the disposal of sludge operations

in external landfill



► Startup: Dec./2016

PROJECT DESCRIPTION (JACAREÍ UNIT)

Operational Flow – Conditioning and biological sludge burn

•00Effluent+Sludge

Aeration Tank

Biological

Sludge Tank

•00Biomass Pile

Sludge Dryer

Biomass

Boiler

Sludge drying and burn in biomass boiler

77

78

Global Market Pulp Demand

Demand growth rateHardwood (BHKP) vs. Softwood (BSKP) (000 ton)

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

Source: PPPC report (Sept. 2015) Source: PPPC reports. Excludes Sulphite and UKP market pulp (Sept./15)

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Hardwood Softwood

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

000 ton 1999 2009 2019

Growth

1999-

2009

Growth

2009-

2019

Hardwood 16.3 24.8 33.8 52% 36%

Eucalyptus 6.0 15.9 24.1 165% 52%

Softwood 19.0 21.4 24.9 13% 16%

Market Pulp 35.3 46.2 58.7 30% 27%

Paper Production – Runnability with BHKP

Source: RISI conference, August 2014.

79

World Tissue Consumption, 1995-2015(3)

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

10% 10%12% 14%

21%

17%

22%23% 23% 24%

25%

0

2

4

6

8

10

12

14

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Eucalyptus Hardwood Total % Compared to the global Market Pulp

(Kg/capita/year)

(million t) (kg/person/year)

Between 2005 and 2015, the Chinese market share of eucalyptus shipments increased by 20 p.p. (total market pulp: + p.p.)

0

5

10

15

20

25

30

35

40

1995 2000 2005 2010 2011 2012 2013 2014 2015N.America W.Europe E.Europe JapanChina Asia FE Middle East LatAmAfrica Oceania

Annual Growth Rate +3.7%

Benefiting From China’s Growth

(1) PPPC – Pulp China – Flash Report – September 2016(2) PPPC – W20. Coverage for chemical market pulp is 80% of world capacity (3) RISI

(million t)

Latin America is the leading exporter of BHKP to China, accounting to approximately 55% of China's total imports in 9M16.

(‘000s t)

(1) includes South Africa and New Zealand. | (2) Includes China, Japan, Malaysia, Russia, Thailand and Vietnam.

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

6.937

3.701

1.558 1.374

147 151 6

7.725

4.266

1.465 1.667

142 145 40

BHKP Total LatinAmerica (1)

Indonesia Others(2) USA Canada WesternEurope

9M15 9M16

25

15 15

11

6 65

1

N.America

WestEurope

Japan Oceania EastEurope

LatAm China Africa

80

Growth rate Chinese GDP vs. Eucalyptus Shipments to China (Sept-09 = base 100)

Source: Bloomberg and PPPC – W20 report.

74

199

-

50

100

150

200

250

China GDP Eucalyptus Shipments

81

Commodities Differentiation

China GDP breakdown

China commodity demand - basis 100

49% 49% 48% 49% 49% 50% 50% 52% 51% 53% 53%

44% 47% 48% 48% 48% 48% 48% 46% 47% 45% 45%

8% 4% 4% 3% 3% 2% 2% 2% 2% 2% 2%

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E

Consumption Investment Net Exports

2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015E 2016E 2017E 2018E

Corn Soybeans Wheat Crude oil Iron ore Sugar BHKP

100

248

201194172

152

124115

Source: Itaú Macroeconomic Department and PPPC – Oct/15

82

Global Paper Consumption

CAGR 2000 – 2010Developed Markets: - 2.1%Emerging Markets : + 5.6%

P&W Consumption (000 tons)(1)

Tissue Consumption (000 tons)(1)

CAGR 2010 – 2020Developed Markets: - 3.1%Emerging Markets : + 0.9%

CAGR 2000 – 2010Developed Markets: + 1.5%Emerging Markets : + 6.6%

CAGR 2010 – 2020Developed Markets: + 1.4%Emerging Markets : + 5.9%

Source: RISI

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

E

20

16

E

20

17

E

20

18

E

20

19

E

20

20

E

Developed Markets Emerging Markets

99,977103,286117,611 109,758

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

E

20

16

E

20

17

E

20

18

E

20

19

E

20

20

E

Developed Markets Emerging Markets

20,979

30,357

41,712

83

Shipments of Eucalyptus Pulp

Global Market BEKP Demand

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

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

CAGR 2012-2015

3,787kt

387 kt662 kt

1,980 kt

758 kt

8%

7%

3%

19%

6%

Total North America Western Europe China Others

84

Benefiting From China’s Growth

Ship

men

ts (

00

0 t

on

)

BH

KP

pri

ces

-C

IF C

hin

a (U

S$/t

on

)

(‘000s t)

China: Eucalyptus pulp shipments

2010

average:

250 ktons

2011

Average

379 ktons

2012

Average

370 ktons

2013

Average

439 ktons

2014

Average

504 ktons

2015

Average

538 ktons

2016

Average

619 ktons

Source: PPPC Global 100

0

100

200

300

400

500

600

700

800

900

0

100

200

300

400

500

600

700

800

900

mai

-10

jun

-10

jul-

10

ago

-10

set-

10

ou

t-1

0o

ut-

10

no

v-1

0d

ez-1

0ja

n-1

1fe

v-1

1m

ar-1

1ab

r-1

1m

ai-1

1ju

n-1

1ju

l-1

1ag

o-1

1se

t-1

1o

ut-

11

no

v-1

1d

ez-1

1ja

n-1

2fe

v-1

2m

ar-1

2ab

r-1

2m

ai-1

2ju

n-1

2ju

l-1

2ag

o-1

2se

t-1

2o

ut-

12

no

v-1

2d

ez-1

2ja

n-1

3fe

v-1

3m

ar-1

3ab

r-1

3m

ai-1

3ju

n-1

3ju

l-1

3ag

o-1

3se

t-1

3o

ut-

13

no

v-1

3d

ez-1

3ja

n-1

4fe

v-1

4m

ar-1

4ab

r-1

4m

ai-1

4ju

n-1

4ju

l-1

4ag

o-1

4se

t-1

4o

ut-

14

no

v-1

4d

ez-1

4ja

n-1

5fe

v-1

5m

ar-1

5ab

r-1

5m

ai-1

5ju

n-1

5ju

l-1

5ag

o-1

5se

t-1

5o

ut-

15

no

v-1

5d

ez-1

5ja

n-1

6fe

v-1

6m

ar-1

6ab

r-1

6m

ai-1

6ju

n-1

6ju

l-1

6ju

l-1

6ag

o-1

6se

t-1

6o

ut-

16

85

Global BHKP Market Pulp Supply Cost Curve

Source: Pöyry.

COST CURVE EVOLUTION

USD

/Ad

t, 2

01

3 c

ost

leve

l

Cumulative Capacity Million t/a

Cost position of marginal

producer

86

Tightening plantation wood and chip supply could add to the cash cost of Asian pulp mills

Source: Pöyry.

87

Current Zero Cost Collars

Notional (Total):

USD 1,960

Million

ZCC Position 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Total

Notional (USD MM) 335 376 304 365 315 190 45 30 1,960

Strike put (avg.) 3.33 3.29 3.35 3.31 3.47 3.45 3.51 3.53 3.36

Strike call (avg.) 6.31 5.08 5.35 5.42 6.09 5.04 5.43 5.41 5.57

FWD (BRL/USD) EoP 3.37 3.45 3.53 3.60 3.67 3.73 3.80 3.87 0

*forward curve Nov/2016.

FREE CASH FLOW(1)

Positive quarterly FCF in the last 5 years, even during appreciated FX

88

USD million

EBITDA Margin

Average FX

-77

-7

125

29

77

194

84113

53

329

4

111

51

103130

112

317

225

158118 124

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

33% 28% 30% 37% 37% 41% 39% 39% 41% 42% 41% 35% 35% 45% 50% 50% 56% 54% 52% 43% 43%

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

(1) Excluding H2 Project, dividends, pulp logistics and land purchase effects.

89

Fibria’s tax structure

(1) Considering FX 3.2460 | (2) Considering average FX for the period

Description and Amount Maturity

(a) Operating income As stated in the income statement

(-)(b) Goodwill (Aracruzacquisition)

- Annual tax deduction: US$ 27 million (tax)

- Remaining Balance Sept/16: US$ 0.196 billion (base)2018

(-)(c) Forestry Capex in MS state (net)

2016 tax deduction related to depletion: US$ 21 million Undefined

(+/-)(d) Exchange variation(cash)

---------- ----------

(+/-)(e) Other ---------- ----------

Tax base beforecompensations

(a) + (b) + (c) + (d) + (e)

(f) (-) Tax loss carryforward- Up to 30% of tax base before compensations

- Balance up to Sept/16: US$ 382 million (base)Undefined

(g) Tax base Tax base before compensations – tax loss carryforward (f) ----------

(h) Income tax Tax base (g) * 34% ----------

(i) (-) Federal tax credits

Balance June/2016:-PIS/COFINS: US$ 218 million

-Advanced tax payment (IR and CSLL): US$ 315 million- Reintegra: US$ 26 million

Undefined

Cash Tax Income Tax (h) – tax credits (i)

2010 2011 2012 2013 2014 2015 9M16

US$ 9 million US$ 2 million US$ 8 million US$ 14 million US$ 12 million US$ 23 million US$ 28 million

TAX PAYMENT(2) (cash basis)

UBS 14th Global Emerging Markets One-on-One … Presentation... · UBS 14th Global Emerging Markets One-on-One Conference ... Outlook for Eucalyptus Market Pulp Oct 2016 and Fibria

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