tao ms jan10 impressao

8/4/2019 tao MS Jan10 Impressao

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Morgan Stanley Latin America CEO Conference

January 2010


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The information contained in this presentation may include statements which constituteforward-looking statements, within the meaning of Section 27A of the U.S. SecuritiesAct of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of1934, as amended. Such forward-looking statements involve a certain degree of riskand uncertainty with respect to business, financial, trend, strategy and other forecasts,and are based on assumptions, data or methods that, although considered reasonableby the company at the time, may turn out to be incorrect or imprecise, or may not bepossible to realize. The company gives no assurance that expectations disclosed in

this presentation will be confirmed. Prospective investors are cautioned that any suchforward-looking statements are not guarantees of future performance and involve risksand uncertainties, and that actual results may differ materially from those in theforward-looking statements, due to a variety of factors, including, but not limited to, therisks of international business and other risks referred to in the companys filings withthe CVM and SEC. The company does not undertake, and specifically disclaims anyobligation to update any forward-looking statements, which speak only for the date onwhich they are made.

Disclaimer


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Agenda

The Company

Market Positioning

Pulp and Paper Market

3Q09 Financials

Recent Events


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The Company


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VCP and Aracruz Merged to Create Fibria

(1) PositionasofNov30,2009.BNDESPar has21%linkedtoashareholdersagreementwithVIDduringthefirst3years,and10.9%duringthefollowing2years.

ShareholderStructure

PresentvalueofR$4.5billionofannouncedpostmergersynergies

Upto2012,90%ofactionstoextractsynergiesareexpectedtobeinplace

16%

15%

6%

11%

2%

27%

23%

ForestrySG&A

Commercial

Tax

Logistics Others

Industrial

Votorantim

IndustrialS.A.BNDESPar FreeFloat

Conpacel

Veracel

Celulose S.A.

29.3% 33.6% (1) 37.1%

50.0%50.0%


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Improved Corporate Governance

BoardAdvisoryCommitteesBoardofDirectors

CEO

Boardof

Directors

ExecutiveBoard

Ind.Ops&

Engineering

FranciscoValrio

Comm.&Intl

Logistics

JooFelipeCarsalade

Paper,Planning,

Procurement,

andForestry

Ops.&Tech

MarceloCastelli

Controllership

&Risk

Management

Evando Coura

HumanandOrg.

Development

MiguelCaldas

Treasury& IR

MarcosGrodetzkyEachofficerwithmorethan20yearsexperienceinthesector

Auditing

PersonnelandRemuneration

Finance

Sustainability

CarlosA.Aguiar

IndependentMemberJos ArmandodeFigueiredoCampos

BNDESRepresentativeEduardoRath Fingerl

IndependentMemberAlexandreGonalvesSilva

BNDESRepresentativeArmandoMariante Carvalho Junior

Votorantim

RepresentativeJoo

Miranda

VotorantimRepresentativeWangWeiChang

Jos Luciano Penido ChairmanoftheBoard

RaulCalfat VotorantimRepresentative

AlexandreDAmbrosio VotorantimRepresentative


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Market Positioning


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CompetitiveStrengths

Creation of a Winning Player

Pulpproductioncapacity:5.4MT/year(1)

Paperproductioncapacity:358 kT /year(1)

Eucalyptusplantation:604thousandha(1)

4plantsandoperationof3portterminals,includingtheonlyspecializedwoodpulpterminalinBrazil,ownedbyus

Highyieldineucalyptusproduction(4055m3/ha/year)andcertifiedforests

Shortharvestcycle:6yearsvs.2570yearsinSouthernU.S.,CanadaandScandinavia

PulpMillPaperMill

BelmonteVeracelCaravelas

PortocelAracruz

PiracicabaJacareiSantos

Trs LagoasConpacel

SuperiorAssetCombination

PortTerminal

DataasofNov 30,2009.(1) Note:ExcludingGuaba.

LeadershipinMarketPulp

ScaleandIntegratedOperations

UniqueForestryManagement:AdvancedForestryTechniquesand

ShortHarvestCycle

ForesttoPort

IntegrationTrough

EfficientLogistics

LowProductionCostDNA

Strong/ReliableCustomerBase

ModernIndustrialPlants


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MarketShare(1)

Undisputable Leadership in the Global Market Pulp

PulpProductionCapacity

0 1.000 2.000 3.000 4.000 5.000 6.000

StoraEnsoCenibra

WestFraserMercer

ENCE

Georgia PacificI l i m

IP

Domtar

Canfor

APP

Weyerhaeuser

Suzano

Tembec

Botnia

Sodra

CMPC

APRIL

Arauco

Fibria

BSKP BHKP UKP Mech.

2009Einktons

Source:PYRY,2007/Asfor MarketPulp:PulpandPaperProductsCouncil(PPPC)2009andAracruz.Note:Capacityabovementioned doesnot includetheGuaba unit.(1) MarketShareestimatedconsidering2009nominalcapacity.

5,400

DominantPositioninaGrowingMarket

1st

~Twicethesize

5,19,7 13,8

16,1

33,443,1

49,5 49,1

1995 2003 2007 2008BEKP Total Market Pulp

PulpDemand(inktons)

CAGR9508:9%

CAGR9508:3%

Growth0708:16%

Growth0708:(1%)

3%

11%

22%

34%

Total

Pulp:

188millionMT

TotalHardwood

Pulp:

25millionMT

TotalMarket

Pulp:

49millionMT

TotalEucalyptus

Pulp:

16millionMT


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276322

249151

266177

305

171 135 106 84

254 175207

303177

239103

119135 155

148

530497

456 454 443 416 408

290 269 261232

Wood Others

Low Production Cost DNA

Unique Expertise Enabling the Lowest Cash Cost in the Market and High Profitability

(1) Source:Companies earningsreleases,RISI andBrazilianCentralBank(2) Source:HawkinsWrightEstimatefor4Q09(3) Fibria's3Q09figures

CashCost(US$/t)

HardwoodCashCost(US$/t)vs.Capacity(kT)

CashCosts(2)

2,35

2,92

3,08

2,93

2,44

2,18

1,951,84

2,09

2001 2002 2003 2004 2005 2006 2007 2008 9M09

45%48%

50%

47%

43%42% 41%

36%

28%

EBITDAMargin(%)

Avg.BEKPPulpPrices(US$/ton)

Avg.FXRate(R$/US$)

Iberia

0

100

200

300

400

500

600

0 2.000 4.000 6.000 8.000 10.000 12.000

Iberia

232

492458

505 520

587

642

707

782

524

Fibrias Marginvs.MacroeconomicFundamentals(1)

Capacity(kT)

US$/ton

(3)


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State-of-the-Art Production Facilities

ModernPlants

AdvancedTechnologyandProductionProcessLeadtoLowerUsageof RawMaterials,ReducingCosts

andAllowingforaUniqueTrackRecordofQualityProducts

Streamlinedandefficientoperationsduetomodernplants

Environmentalfriendly

productionprocess

Reducedemissionsanddispositionofresidues

Efficientuseofchemicals

CompetitiveAdvantages

AracruzCapacity2.3mtTechnicalage:9

Trs LagoasCapacity1.3mtTechnicalage:0

JacareCapacity1.1mtTechnicalage:5

AveragePlantCapacity(000tons)

2,500

2,000

1,500

1,000

500

40 30 20 10

Russia

Japan

USASweden

CanadaPortugalFinland

FranceSpain

ChileSouthAfrica China

Brazil

Indonesia

Uruguay

Technicalageoftheequipment (years)

LARGESTSINGLE

LINEPULP

PRODUCTION

FACILITYINTHE

WORLD

1 Last12 monthsendingJune30,2009.

VeracelCapacity1.1mtTechnicalage:3

BESTYIELDPER

HECTARE OFTHE

WORLD

Indonesia


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1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2009

Ara cruz VCP Fi bri a

Unique Brownfield Potential Growth

Fibria has the Best Sites Ready to Almost Duplicate Capacity

Inmillionoftones

HistoricalandPlannedCapacityIncrease

1978:Startupofmill"A"atAracruz (Barra doRiacho)unit

1988:AcquisitionofCelpav 1992:AcquisitionofPapel Simo (Jacare unit) 1996:NewpulplineatJacare mill 1991:Startupofmill"B"atBarra doRiacho unit 2003:ExpansionofJacare mill 2003:AcquisitionofRiocell (Guaiba Unit) 2005:StartupofVeracel 2002:Startupofmill"C"atBarra doRiacho unit 2007:AssetswapLuisAntnio forTrs Lagoas 2008:EstablishmentofConpacel consortium 2009:StartupofTrs Lagoas mill

5.4

1,5

1,5

1,5

0,7

5,2

Veracel II

Trs Lagoas II

Expansion

BarradoRiacho IV

Losango I

10.6

Bestsitesforadditionalcapacity

Br own fiel d B rown fi el d Gr ee nfi el d Br own fiel d


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NY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.worNY004GAK_1.wor

Long Term Relationship With Key Clients

Premium Paper Producers Value High Quality Pulp Customized Products

WhichImpliesinLessVolatilityinSalesVolumeThroughoutEconomicCycles

GlobalFootprint

Suppliescustomizedpulpproductstospecificpapergrades

Solesuppliertokeycustomersfocusedoneucalyptuspulptothe tissuemarket

Top10maincustomersrepresentonaverage65%ofsales

1 Breakdownofsalesdestinationinthe last12monthsendingSeptember30,2009.

23%

52%

25%

P&W

Tissue

Specialty

UsesofFibrias Pulp

Europe

31%

Offices

NorthAmerica

25%Asia

34%

Brazil

9%

Beijing

Switzerland

Sales

Destination(1)

Miami Hong Kong

Hungary


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Efficient and Reliable Logistics Network

Efficient Supply Chain to the Customers

Average

of

145

km

from

forests

to

pulp

mills

Portocel portterminalintheStateofEsprito Santo,islocatedonly1.5kmfromBarra doRiacho plant

Longtermrelationshipwithleadingpapermanufacturersallowsforlowerfreightcost

EfficientandCompetitiveLogistics(1)CompetitiveTransportation(Forest> Mill>Ports)

Base100=March2006Aracruz

(BarradoRiacho)

Jacare

Conpacel

Veracel

Trs Lagoas

Road

Rail

Road

Rail

10%Road90%Barge

1 Bloomberg.

0

100

200

300

400

Mar06

Jun

06

Sep

06

Dec

06

Mar07

Jun

07

Sep

07

Dec

07

Mar08

Jun

08

Sep

08

Dec

08

Mar09

Jun

09

BalticDryIndex Fibria'sinland/oceanfreight,insuranceandother


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Pulp and Paper Market


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Positive Commodity Cycle and Demand Recovery

Worldmarketpulpshipmentstocapacity WorldP&Wpapershipmentstocapacity

Worldpulpproducers averagedaysofsupply Europeanpulpconsumers daysofsupply

Source:PPPC Source:Utipulp

23

15

20

25

3035

J

an-04

A

pr-04

Jul-04

O

ct-04

J

an-05

A

pr-05

Jul-05

O

ct-05

J

an-06

A

pr-06

Jul-06

O

ct-06

J

an-07

A

pr-07

Jul-07

O

ct-07

J

an-08

A

pr-08

Jul-08

O

ct-08

J

an-09

A

pr-09

Jul-09

O

ct-09

2510

20

30

40

5060

Jan-04

Jun-04

Nov-04

Apr-05

Sep-05

Feb-06

Jul-06

Dec-06

May-07

Oct-07

Mar-08

Aug-08

Jan-09

Jun-09

Nov-09

93%

98%

93%

95%

88%

92%

89%87%

97%

92%

85%

78%76%

79%79%77%

73%

79%79%78%

89%87%

jan/08

abr/08

jul/08

out/08

jan/09

abr/09

jul/09

out/09

85%

93%92%

94%

91%

89%

82%

86%

83%

79%

90%

77%

88%

92%

97%

86%

95%

92%93%

95%

90%92%

91%

jan

/08

mar/

08

ma

i/08

jul/08

se

t/08

nov

/08

jan

/09

mar/

09

ma

i/09

jul/09

se

t/09

nov

/09


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BHKPList pulpprice(FOEX) vs BRL/US$

Pulp Supply / Demand Expected to Rebalance in theMedium Term

MarketPulp:worlddemandgrowth China:Eucalyptuspulpshipments(000t)

Globalmarketrecovery

Demand

Paperdemandrecovery; Chinakeepingupthepace.

Lowconsumersandproducersinventories

Marketdowntimes;Currency

AppreciationoflocalcurrenciesagainsttheUS$.

Successiveannouncements oflistpriceincreases(asofJan.10)

NorthAmerica: US$760/t Europe: US$730/t

Asia: US$690/t

Average310 k tons

Average163 k tons

60

70

80

90

100

110

120

130

Jan/09

Feb/09

Mar/09

Apr/09

May/09

Jun/09

Jul/09

Aug/09

Sep/09

Oct/09

Nov/09

Dec/09

BRL/USD FOEX BHKP List Price

+25%

-24%

101146

186181192

132134 9865

93

210

419

238

307368

307318307323

256233

299

458

Jan/08

Mar/09

May/08

Jul/08

Sep/08

Nov/08

Jan/09

Mar/09

May/09

Jul/09

Sep/09

Nov/09

-13%-21% -23%

-10%

-23%

62%

2% -1%

-12%

9%

-18%

73%

Total North America Western

Europe

Latin America Japan China

Jan 2008 vs. Jan 2009 Nov 2008 vs. Nov 2009


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China's presence in the market pulp sector

China'sHardwoodimportsofBHKPbycountry

0

1.000

2.000

3.000

4.000

5.000

6.000

BHKP

Total

B

razil

Indon

esia

Chile

Ru

ssia

Uru

guay

Canada

USA

Others

Tha

iland

Source:PPPC W20.Coverageforchemicalmarketpulpis80%ofworldcapacity.

China'sshareofmarketpulp(%)

Source:HawkinsWright

+59%

+99%

+9%

+39%

+10%+165%

+41% +80% +134% +34%0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2005 2006 2007 2008 11M09

BEKP

9%11%

13%

16%

26%

7%9%

10%

12%

23%

Growth in 2009

2008 BHKP

BrazilistheleadingexporterofBHKPtoChina,accountingtoapproximately40%ofChina'stotalimportsinthe11M09.

Between2005and11M09,Chinesemarketshareofeucalyptusshipmentsincreasedby17bps(totalmarketpulp:+11bps).

Total Market Pulp

10%10%

12%

14%

21%

'ooo

t

'ooo

t

Pulp shipments ('000 t) and market share (%)


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P&W Paper Capacity Changes

P&Wpapercapacitywithdrawls20092010(1)

340late2011Guangxi HuajinGroup

1,250Q12011ShandongChenming

500Q1

2011Shandong

Huatai

Paper

2002010YeuyangPaper

200Oct2009YeuyangPaper

200Jul2009MCCYinhePaper

350Jan2009PuyangLongfeng

200Oct2009FujianNanpingPaper

200Q32009GuangxiJindaxingPaper

150Feb2009Tralin,Gaotang

Q12011

May2010

1H2010

Q22010

Q12010

EffectiveDate

6,040TotalP&WcapacitychangesinChina

300ChinaMetalurgicalMeiliPaper

200Lee&Man

350SunPaper/IP

Company/Mill 000'stonnes

APP,HainanIsland 1,200

JiangsuOjiPaper 400

2009=1.3milliont

2010=2.3milliont

2011=2.4milliont

(1) Source:TerraChoiceDec2009

China:P&Wpapercapacitychanges20092011(1)

340NorthAmerica/2010InternationalPaper

200NorthAmerica/2010Domtar

200NorthAmerica/2009InternationalPaper

255NorthAmerica/2009Others

265NorthAmerica/2009Domtar

440Europe/2009Others

80Europe/2010Others

3,300TotalP&WcapacitywithdrawlsinEuropeandNorthAmerica

540Europe/2009MReal

250Europe/2009InternationalPaper

220Europe/2010Sappi

Europe/2010

Region/Date

520StoraEnzo

Company 000'stonnes

2009=1.9milliont

2010=1.4milliont


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3Q09 Financials


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Paper Market

Papermarketrecovery

Market

Imports more attractive with the US$ devaluation; Demand starting to grow again, but apparent

consumption is still below 2008 levels.Fibria Performance

Sales volume and revenue mix: focus on specialtypapers;

Seasonality: positive impact on sales volume

Paper:SalesandRevenuemix

Paper:Salesvolume('000t)

122

104

110

3Q08 2Q09 3Q09

Sales Volume

50% 49%

20% 21%

28% 30% 30%

49%

24%

3Q08 2Q09 3Q09

Revenues

38% 38%

19% 19%

41% 43% 43%

38%

21%

3Q08 2Q09 3Q09

Specialty/Other

Coated

Uncoated


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Financial Performance

PulpCashCost(R$/t)Netrevenue(R$million)

Pulp:salesvolume('000t) Pulp:salesmix(000t)

Cash cost w/o

stoppages (R$/t)

3Q09

21%

36%11%

30%

North America Asia Brazil Europe

3Q08

38%

16%10%

37%

509

473

426433

487

422

403

521

3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 2Q09 3Q09

1.402

1.471

1.407

3Q092Q093Q08

946

1.3491.276

3Q08 2Q09 3Q09


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Financial Performance

CAPEX9M09:R$1,232millionEBITDA(R$million)andEBITDAmargin(%)

NetIncome(R$million)

-148

-188

-178

181

+47

+52+875

327-99-77

426-204

-325

Adjusted

Ebitda

Non-

recurring

effects / non-

cash

Ebitda Income tax

expense

Exchange

Variation on

Debt

Derivatives Other

Exchange

Variation

Interest on

loan

Income on

financial

instruments

Other

financial

income

Minority

Interest

Other (*) Net income

3Q09

(*) The amount is the sum of the Depreciation, Amortization and Exhaustion.

426389

498

35%

26%30%

3Q092Q093Q08

41%

59%

69%31%

25%

17%

13%

5%

7%

14%

10%

7%

1Q09 2Q09 3Q09

Expansion Forestry Maintenance Other

576

387

269


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241 FX of September 30, 2009 R$ / US$ 1.7781

2 Does not include Sellers Financing

3T09 Cash position R$ 2.6 bi R$ 4.8 bi

Average Maturity 37 months 47 months

Average Cost 2 7.42% p.a. 7.50% p.a.

US$/ BRL 62%/38% 62%/38%

Subordination structure

Original After plan Cash

No Collateral

With Collateral

Receivables

56%

1%

43%

79%

1%

20%

Indebtedness

MaturitySchedule1(R$billion)

4,8

2,8

1,4 1,5

0,9 0,8

0,10,4

4,2

2,1

0,7

1,4 1,51,8 2,0

1,0

0,1

0,9

0,3

1,61,1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4,8

2,8

1,4 1,5

0,9 0,8

0,10,4

1,61,1

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

EffectsoftheLiabilityManagementPlan

Before the plan x After the plan


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Recent Events


26/27

26Source: Fibria

Recent Events

Dec.22Approval of the merger of Aracruz into Fibria

Nov18Fibria trading start (Bovespa: FIBR3 / NYSE: FBR)

Nov17End of Aracruz trading

Nov12End of withdrawal rights period

Oct29Shareholderes Agreement - VID and BNDES

Aug24Merger of Aracruz shares into VCP approval

Aug24Incorporation proposal for the 0.1347 ratio

Jul02Tender Offer for Aracruz common shareholders

June

12VCP conversion of prefered into common shares

Apr14VCP Capital Increase

Jan20Acquisition by VCP of additional 28% of Aracruz common shares

Date/estimateEvent


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Investor Relations Team:

Marcos Grodetzky IRO

Andr Gonalves IR Manager

Fernanda Naveiro Vaz IR Consultant

Anna Laura Linkewitsch IR Specialist

Livia Baptista IR Analyst

tao ms jan10 impressao

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