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FIBRIA APP WITH THIS PRESENTATION IS AVAILABLE FOR DOWNLOAD AT APPLE STORE AND GOOGLE PLAY.
20th Annual Santander Latin American ConferenceJanuary, 2016
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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 Exchange
Act of 1934, as amended. Such forward-looking statements involve a certain degree of
risk and uncertainty with respect to business, financial, trend, strategy and other
forecasts, and are based on assumptions, data or methods that, although considered
reasonable by the company at the time, may turn out to be incorrect or imprecise, or
may not be possible to realize. The company gives no assurance that expectations
disclosed in this presentation will be confirmed. Prospective investors are cautioned
that any such forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may differ materially from
those in the forward-looking statements, due to a variety of factors, including, but not
limited to, the risks of international business and other risks referred to in the
company’s filings with the CVM and SEC. The company does not undertake, and
specifically disclaims any obligation to update any forward-looking statements, which
speak only for the date on which they are made.
Disclaimer
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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 – 3Q15 LTM
Pulp capacity million tons 5.300
Net revenues US$ billion 3.000
Total Forest Base(1) thousand hectares 967
Planted area(1) thousand hectares 539
Net Debt US$ billion 2.411
Net Debt/EBITDA (in Dollars)(2) X 1.58
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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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
Net Revenues by Region - Fibria
Region - 3Q15 End Use - 3Q15
44% 44% 42% 37%43% 43%
35% 36%46% 42% 39% 40%
47% 42% 42%
18%26%
26%30% 22%
29%31% 31%
19% 23% 27% 27%17% 24% 25%
29%20% 22% 25% 26%
21%25% 26% 26% 27% 24% 23% 26% 26% 25%
9% 9% 10% 9% 10% 8% 9% 8% 10% 9% 10% 10% 10% 9% 8%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Europe North America Asia Other
50%
36%
14%
Printing &Writing
Specialties
TissueEurope
42%
N.America
25%
Asia25%
LatAm8%
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8
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 byFibria 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 commercialstructure synergies;
Ensure sales volumes;
Ensure pulp market access withKlabin brand.
Logistics and commercialoptimization and synergies;
Support customers’ growth andenhance customers’ needs;
Potential development of new customers.
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9
Shareholder Structure and Corporate Governance
(1) Controlling group (2) Free Float 41.44% + Treasury 0.06%
Votorantim
Industrial S.A.
(1)
29.42%
BNDES
Participações
(1)
29.08%
Free
Float
(2)
41.50%
► Only 1 class of shares →100% voting rights
► 100% tag along rights (Brazilian corporate lawestablishes 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 approvedby the Board of Directors:
FiscalCouncil
Board ofDirectors
20% independentmembers
Role of CEO andchairman is split
Personneland
Remuneratio
n Committee
StatutoryAudit
Committee
FinanceCommittee
SustainabilityCommittee
InnovationCommittee
30%independent
members
100%independent
members
50%independent
members
45%independent
members-
GeneralMeeting
► 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 NEW
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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.
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The “better than expected scenario” has become a reality again in
2015…
BHKP CAPACITY CHANGES
EXPECTED SCENARIO FOR 2015 IN DEC’14 YEAR-TO-DATE SCENARIO IN 2015
1095
-315
-65
115
85
30
200
750
265
750
400
BEKP demand growth**
Net
Possible closures*
Ence Huelva
April Rizhao
Sappi Cloquet
Old Town (Expera)
Portucel Cacia
Eldorado
CMPC Guaiba II
Oji Nantong
Montes del Plata
Suzano Maranhão
-400 to -800
1,415 to 1,815
*Based on annual closures average (400,000 to 800,000 t/yr)
**Source: PPPC Outlook for Eucalyptus Market Pulp December 2014
1500
1450
-385
-315
-190
115
40
40
30
200
500
265
750
400
Estimated BEKP demand growth**
Net
Unexpected Downtimes
Ence Huelva
April Rizhao
Sappi Cloquet
Ence Navia
Old Town (Expera)
Portucel Cacia
Eldorado
CMPC Guaiba II
Oji Nantong
Montes del Plata
Suzano Maranhão
Indonesia, China,Uruguay and Brazil
**Source: Fibria estimates based on PPPC Market Pulp World 20 (BEKP
9M15: + 1.105 kt )
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… and so has been the price scenario
BHKP Delivered to Europe (USD/t)
735
721
709
738
726
750
781
804 808*
784*
1Q15 2Q15 3Q15 4Q15 Annual 2015
Consultants average at the end previous year Realized PIX/FOEX price
* Average until 12/21/15
Consultants: Hawkins Wright, RISI and Brian McClay (published in the end 2014 for 2015 prices)
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But this time, demand has been the “good surprise”
BHKP CAPACITY CHANGES
EXPECTED SCENARIO FOR 2015 IN DEC’14 YEAR-TO-DATE SCENARIO IN 2015
1,095
-315
-65
115
85
30
200
750
265
750
400
BEKP demand growth**
Net
Possible closures*
Ence Huelva
April Rizhao
Sappi Cloquet
Old Town (Expera)
Portucel Cacia
Eldorado
CMPC Guaiba II
Oji Nantong
Montes del Plata
Suzano Maranhão
-400 to -800
1,415 to 1,815
*Based on annual closures average (400,000 to 800,000 t/yr)
**Source: PPPC Outlook for Eucalyptus Market Pulp December 2014
1,500
1,450
-385
-315
-190
115
40
40
30
200
500
265
750
400
Estimated BEKP demand growth**
Net
Unexpected Downtimes
Ence Huelva
April Rizhao
Sappi Cloquet
Ence Navia
Old Town (Expera)
Portucel Cacia
Eldorado
CMPC Guaiba II
Oji Nantong
Montes del Plata
Suzano Maranhão
Indonesia, China,Uruguay and Brazil
**Source: Fibria estimates based on PPPC Market Pulp World 20 (BEKP
9M15: + 1,105 kt )
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Better worldwide macroeconomics are the key drivers… But thespecial focus is on Europe
Real GDP % Annual Growth
Source: International Monetary Fund, World Economic Outlook Database, October 2015
3,4
-0,8
2,2
7,7
3,3
-0,3
1,5
7,7
3,4
0,9
2,4
7,3
3,1
1,5
2,6
6,8
3,6
1,6
2,8
6,3
World Euro Area USA China
2012 2013 2014 2015 2016
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But the special focus is on Europe
Hardwood and Eucalyptus Shipments (000 t and % annual growth and YTD)
*YTD: 9M15 vs. 9M14Source: PPPC World 20
-0.3%
-0.8%
3.3%3.7%
-0.8% -0.6%
6.0%
5.0%
-200
0
200
400
2012 2013 2014 YTD 2015*
BHKP BEKP
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So, what can we expect for 2016?
BHKP CAPACITY CHANGES
EXPECTED SCENARIO FOR 2016 IN NOV’15 FIBRIA’S EXPECTED SCENARIO FOR 2016
930
-120
-55
-90
-40
30
660
800
BEKP demand growth**
Net
Possible closures*
APRIL Kerinci
Verso Wickliffe
Woodland
Old Town (Expera)
Altri Celbi
Klabin
CMPC Guaiba II
-400 to -800
385 to 785
1500
*Based on annual closures average (400,000 to 800,000 t/yr)**Source: PPPC Outlook for Eucalyptus Market Pulp May 2015 (930kt) andFibria’s estimates
1500
985
-200
-120
-55
-90
-40
30
660
800
BEKP demand growth**
Net
Possible closures*
APRIL Kerinci
Verso Wickliffe
Woodland
Old Town (Expera)
Altri Celbi
Klabin
CMPC Guaiba II
Positive Supply/Demand Balance!
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1,106 kt
80 kt247 kt
593 kt
186 kt
9%
6%5%
19%
5%
Total North
America
Western
Europe
China Others
Shipments of Eucalyptus Pulp
(1) Source: PPPC World 20 – January/2015
Global Market BEKP Demand
Paper Capacity increase in China
2014 2015 Total
FORECAST REALIZEDPREVIOUSFORECAST
LATESTFORECAST
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
9M2015 vs. 9M2014(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 North
America
Western
Europe
China Others
(2) Source: PPPC World 20 – Sep/2015
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Nominal Chinese GDP vs. Eucalyptus Shipments to China(Sept-09 = base 100)
203
-
50
100
150
200
250
China GDP Eucalyptus Shipments
76
Source: Bloomberg and PPPC.
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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
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Technical Age and Scale in the Market Pulp IndustryFurther closures are expected due to lack of adequate investments in the industry…
Hardwood (BHKP) Market Pulp Softwood (BSKP) Market Pulp
STRONGWeighted average
technical age 12.3 years
Weighted average
capacity 1,277,000 t/a
Aracruz
Três Lago as
Veracel
Jacareí
0
500
1.000
1.500
2.000
2.500
3.000
051015202530
PM Capacity, 1000 t/a
Technical Age, years
WEAK
STRONGWeighted average
technical age 21 years
Weighted average
capacity 527,000 t/a
North American Pulp Mills Other Pulp Mills Closures Grade Switch On & Off
WEAK0
500
1.000
1.500
2.000
2.500
3.000
0102030
PM Capacity, 1000 t/a
Technical Age, years
More than 7.7 million tons of capacity above 25 years and with annual capacity below 500,000 t/y.
Old
Town
Ence
Huelva
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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
-315
-580
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016-2017 E (1)
(1) As of January 2016 | 2016: -40kt Old Town (USA), -90kt Woodland (USA), -55kt Verso Wickliffe (USA), -120 April Kerinci (Indonesia) | 2017: -275kt Arauco Valdivia (Chile)
G it dditi h ld t b t d th l f t
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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
APP
Hainan
Veracel Nueva Aldea
Santa Fé
Mucuri
Fray
Bentos
Kerinci
PL3
Três
Lagoas
Rizhao
APP Guangxi
Chenming
Zhanjiang
EldoradoMontes
del Plata
Maranhão
Guaíba II
APP South
Sumatra(2)
Klabin
Oji
Nantong
Horizonte II
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 (July/15), Brian McClay (Sept./15) and RISI (May/15)
(2) Partially integrated production.
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In the last 15 years, pulp volatility has been just 8%...why?
► 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 – January 5, 2016
0
40
80
120
160
D e c - 9 9
M a y - 0 0
O c t - 0 0
M a r - 0 1
A u g - 0 1
J a n - 0 2
J u n - 0 2
N o v - 0 2
A p r - 0 3
S e p - 0 3
F e b - 0 4
J u l - 0 4
D e c - 0 4
M a y - 0 5
O c t - 0 5
M a r - 0 6
A u g - 0 6
J a n - 0 7
J u n - 0 7
N o v - 0 7
A p r - 0 8
S e p - 0 8
F e b - 0 9
J u l - 0 9
D e c - 0 9
M a y - 1 0
O c t - 1 0
M a r - 1 1
A u g - 1 1
J a n - 1 2
J u n - 1 2
N o v - 1 2
A p r - 1 3
S e p - 1 3
F e b - 1 4
J u l - 1 4
D e c - 1 4
M a y - 1 5
O c t - 1 5
BHKP - FOEX Europe (base 100) CPI (base 100)
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Lowest volatility among commodities
Source: Bloomberg – January 5, 2016
2535455565758595
105
115125135145155165175185195205215
225
J a n - 1 2
F e b - 1 2
M a r - 1 2
A p r - 1 2
M a y - 1 2
J u n - 1 2
J u l - 1 2
A u g - 1 2
S e p - 1 2
O c t - 1 2
N o v - 1 2
D e c - 1 2
J a n - 1 3
F e b - 1 3
M a r - 1 3
A p r - 1 3
M a y - 1 3
J u n - 1 3
J u l - 1 3
A u g - 1 3
S e p - 1 3
O c t - 1 3
N o v - 1 3
D e c - 1 3
J a n - 1 4
F e b - 1 4
M a r - 1 4
A p r - 1 4
M a y - 1 4
J u n - 1 4
J u l - 1 4
A u g - 1 4
S e p - 1 4
O c t - 1 4
N o v - 1 4
D e c - 1 4
J a n - 1 5
F e b - 1 5
M a r - 1 5
A p r - 1 5
M a y - 1 5
J u n - 1 5
J u l - 1 5
A u g - 1 5
S e p - 1 5
O c t - 1 5
N o v - 1 5
D e c - 1 5
J a n - 1 6
Iron Ore Soy Bean Crude Oil Sugar BHKP - FOEX Europe Exchange Rate (R$/US$)
120
215
72
63
31
Low volatility of hardwood pulp price, even thoughnew capacities have come on stream during the period.
36
100 = January 1, 2012
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The only commodity with lower volatility than FX
Historical Volatility of Commodities (US$)
Since 2009
26
35% 35% 34%
27% 26%24% 24% 24%
16%
14%
6%
WTICrude Oil
Sugar Nickel Copper Soy Iron Ore LMEMetals
Ibovespa Cattle FX FOEX PIXBHKP
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Financial and Operational Highlights
Each 5% depreciation of the Real increases EBITDA by around
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Each 5% depreciation of the Real increases EBITDA by aroundR$403m (11%) and FCF by R$482 m (45%)
815
1,488
1,173 1,153
1,295
1,185
1,540
438
2009 2010 2011 2012 2013 2014 LTM 3Q15 3Q15
Exchange Rate
Average (R$/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 2.162.35
3.014.13(1)
456
670 639 581 610 572 573 561 (2)
29%
40%34% 36%
40% 39%
51% 56%
912 1,179 1,067 1,1331,311 1,344 1,725
2,317
(1) According to Focus Report (Br azilian Central Bank – December 29, 2015) I (2) 2016 market consensus
2016 E
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Free Cash Flow
29(1) Before expansion capex
US$ million
EBITDA Margin
39%
Average FX
182
-256
-77
-7
125
2977
194
84113
53
329
4
111
51103 130
112
317(1)
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
34% 33% 28% 30% 37% 37% 41% 39% 39% 41% 42% 41% 35% 35% 45% 50% 50% 56%
1.67 1.60 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 3.54
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30
Free Cash Flow(1) – LTM 3Q15
US$ million(4)
(1) Not considering dividend payment of R$149 million.
(2) Not considering capex related to the Horizonte 2 project.
(3) Includes other financial results.
(4) Converted by LTM average FX – R$/US$3.01
1,535
763 714(517)(115)
(124) (24)
8
(49)
AdjustedEBITDA
Capex(ex-H2 project)
Net Interest WorkingCapital
Taxes Others(3) FCF(ex-H2 project)(2)
Capex H2 FCF
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31
ROE and ROIC (US$)
(1) Adjusted EBITDA – CAPEX – Net Interest – Taxes
(2) International accounting standards for biological assets.(3) Adjusted EBITDA – CAPEX – Taxes
1.0%
4.7%
7.7%6.1%
23.5%
31.7%
2011 2012 2013 2014 LTM 3Q15 Annualized3Q15
3.6%
7.2%
10.2%8.6%
23.3%
29.4%
2011 2012 2013 2014 LTM 3Q15 Annualized3Q15
1.67AverageFX
1.95 2.16 2.35 3.01 3.54 1.67AverageFX
1.95 2.16 2.35 3.01 3.54
ROE = Adjusted EBIT(1)/Equity before IAS 41(2)
ROIC = Adjusted EBIT(3)/Invested Capital before IAS 41(2)
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32
Cash Production Cost (US$/t) – 3Q15
221
200187
170
14
(70) 5 13
113 3 (13)
(17)
3Q14 Inflation FX Lower energyprice
Maintenancedowntimes
Non recurringwood
Non recurringinput
consumption
Non recurringfixed costs
Total Managementinitiatives
Cash cost3Q15
Total nonrecurring
3Q15 recurringcash cost
Management initiatives gains mostly offset the inflation impact
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Fibria Cash Production Cost(1) (US$/ton)
Consistently
controlling theproductioncash cost
33
Cash Production Cost in dollars saw a decrease over the past 6 years
231
264281
242
234 220
190
2009 (2) 2010 (2) 2011 2012 2013 2014 LTM 3Q15
(1) Constant Currency (2) Excludes Conpacel
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34
Net Results (US$ million) – 3Q15
438
(170)(622) 145(102)
(27)
(137)
(10)(59)
203
AdjustedEBITDA
Exchangevariationon debt
Otherexchangevariation
MtMhedge
Hedgesettlement
NetInterest
Deprec.,amortiz. and
depletion
IncomeTaxes
Others Net Income(Loss)
deffered
swapZCC
(1)
current
3T15 3T15
(1) Includes non-recurring expenses/non-cash and other financial income/expenses.
Capital Structure: Fibria has achieved the lowest leverage ratio among
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35
Capital Structure: Fibria has achieved the lowest leverage ratio amongits Latin American peers
Net Debt/EBITDA (x)(1)
Fibria Arauco CMPC Klabin Suzano
S&P BBB-/Stable BBB-/Stable BBB-/Stable BBB-/Negative BB+/Stable
Moody’s Baa3/Stable Baa3/Stable Baa3/Negative - Ba2+/Stable
Fitch BBB-/Stable BBB/Stable BBB+/Stable BBB-/Stable BB/Positive
(1) Fibria’s historical data in BRL.
2.1
3.0
6.2
3.5
2.9
5.0
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Fibria Suzano Klabin CMPC Arauco Eldorado
( )
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One of the best performances among Brazilian corporate issuers(1)
(1) G-spread on December 29, 2015
387 393 401 406474 475 492
695
795
914
Fibria BRF Globopar Embraer Klabin Suzano Brazil Braskem Vale Gerdau
I t t G d b ll ti i
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200
400
600
800
1.000
1.200
1.400
2010 2011 2012 2013 2014 2015
Fibria 2020 Fibria 2021 Fibria 2024
BBB-
Interest expense, leverage and average cost of debt in US$ Historical G-spread (bps)
BBB- Baa3
Obtaining of Investment Grade from the three rating agencies
Investment Grade by all rating agencies
7.29
4.11 4.25
3.32
2.602.41
1.58
Leverage
6.3 5.95.5
5.24.6
3.4 3.3(1)
Cost of debt
473414 408
350268
200149
2009 2010 2011 2012 2013 2014 LTM
3Q15
Interest Expense(US$ million)
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38Horizonte 2 Project
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• 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
Commercialpositioning
Long-term growthpotential
What is the importance of growth for Fibria?
• Wider fixed costs dilution
• Cost curve position improvement
• Greater bargaining power with suppliers
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Why expand Três Lagoas?
• Brownfield Project, synergies with currentoperations
• Modern plant, prepared for potentialexpansion
• Availability of wood and low average
distance from forest to mill
• Forest based on the optionality concept andprioritizing lease and partnership models
• Additional energy surplus of 120 MWh
Start-up: 4Q2017
Capacity: 1.75 million tons
ESTIMATED BHKP CAPACITY RANKING 2017 (000T)
Source: Poyry and Fibria Analysis (as of May 2015)
0 2000 4000 6000 8000
OthersKlabin
Domtar
Pulp Mill Holding
Lwart
Portucel Soporcel
Georgia-Pacific
Resolute
Verso
Nippon Paper
Mondi
Oji
MitsubishiMarubeni
IP
Altri
ENCE
Cenibra
Arauco
Stora Enso
UPM
Eldorado
APP
Suzano
RGE/APRILCMPC
Fibria 7,950
Current Capacity
New Capacity
New Capacity – Klabin Agreement
New Capacity – Horizonte II Project
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Pulp sales destination: Fibria growing where the market grows
(1) Considers 3Q15 last twelve months. | (2) Includes Klabin’s sales volume
37%
36%
42%
25%
19%24%
4%9%
Total sales volume distributionafter H2 start up(2)
Current net revenue distribution(1)
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Schedule
Startup
Utilities clearanceand commissioningL1 interconnections
during maintenancedowntime
Initial hiring of harvestworkers
Hiring of operationalteam
Negotiations withconcession holders and
Port of Santos tendering
2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
2015 2016 2017
Beginning ofinfrastructure and
purchase of the TGs
Purchase of theindustrial plants
Beginning of construction
Beginning of assembly
Beginning of forest
machinery deliveries
Beginning ofharvest
Definition of outboundlogistics formats
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43Forestry base
H2 Project will have the forest base ready for the start up
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H2 Project will have the forest base ready for the start-up
Forestry base required:
H1: 120,000 ha
H2: 174,000 ha
Total: 294,000 ha
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45Logistics
Forestry Logistics
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Low average distance from forest to mill
FOREST MILL
95 km
H1 + H2 consolidated
Outbound logistics
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Fibria has logistical alternatives on a competitive basis
Ports Highways Railroads Waterways
Data Collection / Preliminary
Analysis Logistics Costs Opex - Rates Capex
Qualitative Modal conditions
Analysis
Mato Grosso
Mato
Grosso do
Sul
Goiás
Brasilia
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48Financials
Even more competitive cash production cost w/ H2
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BHKP (US$/t)
Source: Hawkins Wright (Price Forecast October 2015) and Fibria’s 3Q15 Earnings Release - FX considered by the consultant at R$/US$3.86. H2
cash cost was estimated according to weighted average cost, after mill balance, converted at R$3.86. Includes energy sales.
447 421338 358
280 279
174 171 151
68 86
102 25
60 47
58 49
515 507
440
383340 326
2323518313
342
China USA Canada Iberia Chile/Uruguay Indonesia Brazil Fibria 3Q15 Fibria w/ H2
Cash Cost (US$/t) Delivery CIF Europe
BHKP (US$/t)
Interest
Capex
SG&A
Income Tax
Working capitalrelease: US$10/t
1,825 1,460 1,035 2,200 4,645 3,470 14,045 Total: 28,680BHKP
capacity(000’ t)
Expansion CAPEX update$ $
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From US$2.5 bi to US$2.2 bi
0.65
0.32
0.05
0.20
2.5
2.2
Original Revised
BRL EUR USD and others
72%
26%
2%
72%
19%
9%
FX and inflation partially offset by the negotiation with suppliers
CAPEX (US$ billion)
3%
60%
33%
3%1%
2015 2016 2017 2018 2019 andthereafter
Timetable
Funding
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Funding
Amortization Schedule – 3Q15 Proforma with TLS II – US$ million
104204 321
576
1,111
481
673
139 119
715
115 10345 13
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
BNDES Bond PPE NCE ACC/ACE
3Q15 3Q15 + H2
Average Cost (US$ p.a)
Average Maturity (years)
3.3%
4.3
2.8%
5.0
Cost and maturity:
H2
2.0%
6.3
revolver
Cash (2)
494
742
1,236
Liquidity
Capex H2 66 1.320 726 66 22
(1) Debt FX 3Q15: 3.9729 / FX considering new funding for the TLS II Project: 3.90 (2) Cash on hands: US$ 994 million
Rating agencies understand that the Project will not jeopardize
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Fibria’s credit metrics
“We expect Fibria to continue benefiting from higher operating cash flows whichwould allow it to enlarge its Três Lagoas industrial complex while keeping its debt at
reasonable levels for a low investment-grade rating”
“Fitch’s base case, which assumes that the company builds a new pulp mill (TrêsLagoas II) starting in 2015 and uses net pulp prices of between USD575 and USD675
per ton during the construction period, results in net leverage reaching 3.5x
(1)
. Netleverage would quickly decline to around 2.5x(1) once the mill becomes operationalin the second half of 2017”
(1) According to rating agency methodology
Project financials at a glance
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Project financials at a glance
UNIT R$ US$
Pulp production/year k tons 1,850 1,850
Expansion capex(1) $ billion 8.7 2.2
Expansion capex(1) $/t 4,702 1,189
Sustaining capex(2) $/t 193 48
Cash cost(3) $/t 341 85
Energy surplus MWh 120 120
(1) Includes chemical leasing and investments in order to increase capacity to 1,850 kt/year.
(2) Estimated sustaining capex in perpetuity considering capacity of 1,850 kt/year.
(3) Estimated weighted average cost, after mill balance. Includes energy sales.
We don’t think that such competitiveness is easily replicable, since the
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Although some potentialbrownfields are listed,
there are significantchallenges.
scenario is becoming more complex…
Land
Infrastructure/Logistics
Certified wood availability
Environmental requirements
Public funding constraints
Governance standards
Cost of capital
Credit rating
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55Final Remarks
Fibria’s structural fundamentals drive the leading return metrics
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Fibria s structural fundamentals drive the leading return metrics
►Less volatile commodity in US$
►Costs in BRL
►The highest forest productivity
worldwide
►Operational excellence
► Unique customer base with steady
sales volumes through long-term
contracts
►Low cost of debt
►Strong corporate governance
High ROE/ROIC in the long-term
Extraordinary Dividend of R$2 billion approved
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Extraordinary Dividend of R$2 billion approved
* Considering dividend of R$149 million paid in May and the proposed payment of R$ 2 billion on Market Cap. on September 30th, 2015.
TIMELINE:
► Record date: Nov 30th
►
Payment dates: BM&FBovespa: Dec. 9, 2015. NYSE: Dec. 16, 2015.
Dividend yield* = 7%
DRIVERS
► Strong cash generation
► Cash position aboveminimum cash
► Low leverage level
► Low average cost of debt
► Funding status of Horizonte 2 project
► Capital discipline
Fibria is able to create value for its shareholders with capital discipline
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Fibria is able to create value for its shareholders with capital discipline
INDUSTRY
CONSOLIDATION ?
PULP
Growth with discipline
Best portfolio of projects
DIVIDENDS
BIO-ENERGY AND
OTHER OPPORTUNITIES
Complementary to pulp
Portocel
Land and forest
FREE CASH FLOW
WITHOUT JEOPARDIZING CREDITMETRICS
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59Backup
Structural Competitiveness
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60
p
1. Third-party wood reduction
2. Forestry operations productivity
3. Industrial
NPV: US$0.4 billion
NPV: US$0.6 billion
NPV: US$0.1 billion
Total : US$1.1 billion
1. Third-party wood reduction
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0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
p y
Wood supply recovering to normal condition
► Peaking in 2016;
► Returning to 2012’s levels by the end of 2017;
► NPV of R$1.4 billion from peak to normalized level.
Estimated level for
2015
Third-party wood decrease will benefitopex and capex
10
1. Third-party wood reduction
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► 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
11
Losango
2. Forestry operations productivity
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The distribution costs by classes helps 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
2. Forestry operations productivity
CLASSIFYING THE FOREST BASE BY CATEGORIES
12
Structural change improving competitiveness
2. Forestry operations productivity
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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) and
EBZ(3)
2: Out of EPAs and
EBZ
MunicipalRestrictions
0: Total restrictions
1: Partial restrictions
2: No restrictions
EPA Altitude
0: Higher than1800m
1: Lower than
1800m
Urban Zones
0: Urban Zones
1: Outside urban
areas
Remnants of native
vegetation
0: Remnants areas
1: Outside remnants
areas
Possible Impediments
Possible combinations
X 0, 1 and 2, removed;
4 e 8, high potential(1) ConservationAreas
(2) EnvionmentalProtection Areas
(3) Environmental Buffer Zones
13
Identifying opportunities based on these combinations
2. Forestry operations productivity
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Roads
Transportation
SilvicultureHarvest
14
Cost and Capex KPI’s were also included in this geo-model
2. Forestry operations productivity
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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)
15
Harvest
2. Forestry operations productivity
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PIFF
► Freight cost reduction;
► Increased load box for timber/woodchiptransport
► Use of lightweight steel;
► Operational risk reduction (flipping);
► Investment: R$33 million
► NPV: R$139 million
► Startup: 2015 / 2016
PROJECT DESCRIPTION (ARACRUZ, JACAREÍ AND TRÊS LAGOAS UNITS)
Timber transportation Woodchip transportation
16
Transportation
2. Forestry operations productivity
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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
► Capex: R$38 million
► NPV: R$95 million
► Startup: Jan/2017
PROJECT DESCRIPTION (ARACRUZ UNIT)
17
Transportation
2 St t l h i f t ti d ti it
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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
18
3 I d t i l i t d ti h d l h
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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
► NPV: R$385 million
2014 2015 2016 2017 2018
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Mills
Aracruz A No maintenance downtime
Aracruz B No maintenance downtime
Aracruz C
Jacareí No maintenance downtime
Três Lagoas No maintenance downtime
Veracel No maintenance downtime
19
3 Ind strial Biological Sl dge Dr er
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Biological Sludge Dryness Process
3. Industrial: Biological Sludge Dryer
► Variable cost reduction associated
with the disposal of sludge operations
in external landfill
► Capex: R$18 million
► NPV: R$100 million
► 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
20
Fibria’s tax structure
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Fiscal - annual adjustment
Benefit Amount Maturity
Goodwill(Aracruzacquisition)
Annual tax deduction:US$30 million (tax)
Remaining Balance Sept/15:US$ 0.266 billion (base)
2018
Forestry Capexin Mato Grossodo Sul state
2015 tax deduction relatedto depletion: US$7.7 million
Undefined
Tax loss carry forward and tax credits
Benefit Amount
Tax losscarryforward
Balance up to set. 15: US$93million (base)
Accumulated taxcredits
Balance set/2015:- PIS/COFINS: US$161 million
- Withholding tax (IR and CSLL):R$205 million
- Befiex: US$98 million
- Reintegra: US$20 million
2010 2011 2012 2013 2014 2015
US$ 9 million US$ 2 million US$ 8 million US$ 14 million US$ 12 million US$ 16 million
TAX BENEFITS (R$)
TAX PAYMENT (cash basis)
Capex Fibria, except H2 Project(2) – US$ million
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604(1)
520516(1)
2015 Guidance FX ∆ Inflation Capex
reduction
2015 Guidance
Update
Trucks Purchase
(2nd phase)
Higher non-
recurring
sustaining
investments
Higher
investments in
other
modernization
projects
Higher third part
wood
participation
∆ FX Inflation 2016 Guidance
ManagementInitiatives
External Factors
(1) Converted by3Q15 end ofperiodFX -USD/BRL 3.97
(2) Subject t o b oard approval
Capex Fibria, except H2 Project – US$ million(1)
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516
424406
2016 Guidance Modernization IndustrialMaintenance
/ Forestequipment
Losango Higher Spendingon
turbogenerator overhaul in 2016
WoodPurchase
Structural Capex EstructuralWood CostReduction
Structural Capex
(1) Converted by3Q15 end ofperiodFX -USD/BRL 3.97
(2) Subject t o b oard approval
Forestry
operations
productivity
increase
Capex Fibria, except H2 Project – US$ million
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(1) Converted by3Q15 end ofperiodFX -USD/BRL 3.97
509
424(1)406(1)
Structural Capex (asshown last year) Inflation and Δ FX Structural Capex Estructural WoodCost Reduction Structural Capex
Leadership Position
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Recycled Fiber
238 million t
46% 54%
59%
18% 82%
59% 41%
41%
33% 67%
26%74%
Fiber Consumption
406 million t
Pulp
168 million t
Chemical
138 million t
Mechanical
30 million t
Integrated Mills
82 million t
Market Pulp
56 million t
Hardwood
30 million t
Other Eucalyptus
Pulp producers:
15 million t
Softwood/Other
26 million t
Acacia/Other
10 million t
Eucalyptus
20 million t
Industry Outlook(1)
(1) Fiber Consumption, Recycled Fiber and Pulp: RISI | Market Pulp, Hardwood and Eucalyptus: PPPC Global 100 Report December 2014
Global Market Pulp Demand
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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
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 33.8 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.
Benefiting From China’s Growth
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78
World Tissue Consumption, 1991-2013 (3)
Per Capita Consumption of Tissue by World Region (3)China's Share of Market Pulp (2)
24
15 15
12
7 65
1
N.
America
West
Europe
Japan Oceania East
Europe
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 share
of eucalyptus shipments
increased by 19 p.p. (total
market pulp: + p.p.)
0
5
10
15
20
25
30
35
1991 1996 2001 2006 2009 2010 2011 2012 2013
N.America W.Europe E.Europe L.America
Middle East Japan China Asia FE
Oceania Africa
LTM GrowthRate +4.2%
(1) PPPC – Pulp China – Flash Report – September 2015
(2) PPPC – W20. Coverage for chemical market pulp is 80% of world capacity
(3) RISI
(million t)
6.334
3.087
1.593 1.486
129 26 13
6.876
3.680
1.5581.342
139 151 6
BHKP Total Latin
America (1)
Indonesia Others(2) USA Canada Western
Europe
9M2014
9M2015
Latin America is the
leading exporter of BHKP
to China, accounting to
approximately 54% ofChina's total imports in
9M15.
(‘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)
Global Paper Consumption
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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
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%
CAGR 1996 – 2006Developed Markets: + 2.4%Emerging Markets : + 6.9%
CAGR 2007 – 2016Developed Markets: + 1.4%Emerging Markets : + 6.7%
26,877