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Fibria Investor Day

May 11, 2011

AGENDA

Fibrias Strategy Market, Sales and Logistics Innovation and Competitiveness Forestry Operations Industrial Operations Sustainability Human Resources Corporate Governance and Financial Highlights Q&A Session

Carlos Aguiar
CEO

Fibrias 2025 Vision

2009 Recent Past

1Q11(1) The Present

2025 Vision The Future

Pulp capacity Paper capacity Net revenues Planted area Net Debt Net Debt/EBITDA

million tons million tons R$ billion thousand ha R$ billion X

5.4 0.4 6.0 585(2) 10.7 6.3

5.2 0.1 6.3 572(3) 7.9 2.9

10 Commitment to investment grade rating

(1) (2)

Last Twelve Months as of 1Q11. Excludes Conpacel and KSR, except for the calculation of the Net Debt /EBITDA. As of December 31, 2009, including 50% of Veracel and 50% of Conpacel and excluding forest partnership areas (129 thousand ha). (3) As of March 31, 2011, including 50% of Veracel and excluding forest partnership areas (124 thousand ha).

Fibrias driving forces

Industry Characteristics

Winner Characteristics

3D Concept

Capital intensive Fragmented Customers and suppliers consolidated Heavy dependence on logistics Bio-assets

Low cost High productivity Scale Reliable customer base Efficient logistics R&D, Bio-developments

Distance Density Developments

Fibrias Strategy

Clear leadership position

Fibrias Market Share(1)

Market Pulp Capacity Ranking 2010 All Fibers (kt)(2)

11% 22%

Total Market Pulp: 50 MM t

Total Hardwood Pulp: 25 MM t

32%

Total Eucalyptus Pulp: 16 MM t


(1) PPPC: considers 2010 demand (2) PYRY as of FY 2010

... And competitive position in the cost curve

Bleached Hardwood Kraft Pulp Average Delivered Cash Cost cif Europe (USD/t)

586
104

549
54

540
55

519
95

509
47

497
52

454
37

371
65

352
73

329
53

322
55

482

495

485

424

462

445

417 306 279 276 267

Canada

Sweden

France / Belgium

USA

China

Finland

Iberia / Indonesia Norway Delivery cost

Chile

Brazil

Fibria

Mill cash cost

Source: Hawkins Wright as of April 2011 and Fibria 1Q11

Improved financials
Net Revenues (R$ million)
7,050 1,697 28%

EBITDA (R$ million) and EBITDA Margin (%)


2,749 2,536 40%

6,320 6,000

39%

2009

2010

1Q11 LTM

2009 565

2010 848

1Q11 LTM BEKP list price Avg 871 (Europe) US$/t

Net Debt (R$ million) and Net Debt/EBITDA


11,017 6.5 3.6

Average Debt Maturity (months)


74 79

9,852 7,959 60

2.9

2009

2010

1Q11 LTM

2009

2010

1Q11 LTM

Source: Fibria /1Q11 excludes Conpacel and KSR, except for the calculation of the Net Debt /EBITDA.

Balanced market scenario for the next 2 years

Chemical Market Pulp Supply and Demand by Grade

Forecast

% Annual growth

Million tons
Supply

2009
23.5 '000 tons 21.4 91% 28.1 24.8 88% 17.0 15.9 93%

2010
23.8 22.3 93% 28.6 25.0 87% 17.6 15.9 90%

2011
25.0 22.8 92% 29.8 26.5 89% 18.8 17.1 91%

2012
25.4 23.2 91% 30.3 27.5 91% 19.6 18.3 94%

2010/2012
3.2% 2.1%

BSK

Demand Ratio

Supply

2.9% 4.7%

BHK

Demand Ratio

Supply

5.4% 7.4%

BEKP

Demand Ratio

Source: PPPC and Fibria

10

Paper demand expected to grow at a rate of 3.1%p.a.

Paper Demand Forecast by grade 2010-2025

612MM
Tissue P&W Newsprint

Containerboard

Others ()

(1)

Others = Small Packages, Specialties Source: RISI

11

Demand for1.8 million tons of market pulp each year

Pulp Market 2010-2025

CAGR: 2.5% or 1.8 million tons

Supply

Source: RISI

12

Despite positive momentum, there are many challenges

Lack of discipline in investments

Industry

Increasing scale of new pulp projects Consolidation of clients and suppliers

Land prices, labor, wood, chemicals, energy and logistics

Costs

Increasing demand from international community towards

Sustainability

social and environmental practices

13

Exchange rates and inflation affect the cost structure


Exchange Rate Currencies Evolution versus Dollar (Jan 03 Base 100)
110%

55% 53%

-7%

Inflation
Wood: cost of land and minimum wage growth above inflation Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices Chemicals / energy / water: global demand for commodities add pressure on main raw materials Labor: cost in Brazil in dollar terms is higher than in some developed countries
14

Wood: a future bottleneck for industry growth

Increasing demand from international community towards planted forests and certification (FSC, CERFLOR, PEFC) Increasing areas affected by diseases in North America Rigorous licensing process European renewable energy targets generate more demand for biomass

Secure wood supply at a competitive basis.

15

Strategic solutions to face challenges and opportunities

Strategic Solutions

2025 Vision
Sustain leadership and preferred supplier position

Market consolidation

Disciplined growth Operational excellence Financial performance New forest usages

Prioritize total shareholder return Maintain low cost structure Commitment to investment grade rating Optimized usage of forest base

16

Market, Sales & Logistics

17

Commercial strategy

Differentiation

Quality of products and services

Market Segmentation

Focus on high value added segments, with consistent growth

Consolidated Customer Base

Large accounts (~ 60% of sales to the top 10 clients)

18

Focus on premium end-uses

Fibria's Pulp Destination


P&W 29%

Market Pulp Destination


43%

2010-2025 Demand Growth


1%

Tissue

49%

24%

4%

Specialties

22%

14%

3%

Newsprint

-0.1%

Containerboard

8%

5%

Others

11%

3%

Source: Fibria Q1/2011 Earnings Results, PPPC, RISI and Fibria

19

Global presence

41% 26%
N.America Europe

Nyon Miami

Csomd

23%
Asia

Beijing

Hong Kong

10%
L.America

So Paulo

Fibria Sales Distribution Fibria Offices


Source: Fibria 1Q11 LTM

20

Innovative shipping model

Change of current model: from buying space to time charter Long-term shipping contract with STX: 25 years Enhanced service reliability to our customer base Protect Fibria against volatile shipping costs Maintain Fibria's competitiveness for deliveries in all major regions Potential shared back haul cargo business Portocel Port of Santos

21

Innovation and Competitiveness

22

The beginning, innovation for survival & model definition

Establishment of land usage model Introduction of eucalyptus species, sources and families Seedling selection for adaptability, disease tolerance, productivity and wood quality Pioneering clonal propagation in commercial scale

From first plantations...

to 2011!

23

Land usage model

Neighbor Native forest

FIBRIA

24

Forestry innovation has been our differential

Forest Genetics

Biotechnology

Forest Management
25

Enhanced forestry techniques

Current Elite Clone 2 years old

New Elite Clone 2 years old


26

Value creation

Air Dry Tons of Pulp / ha / Year

Source: Fibria and Poyry

27

Focus on customer product development

Understanding/ optimizing eucalyptus fiber properties

Opacity

Smoothness

Softness

Bulk/Stiffness

28

Application of our forest competences to new business alternatives


The Biorefinery Concept
Pulp Mill- Traditional

Wood Chips Fiberline Power Stream Chemicals

Market Pulp

Planted Forest

Wood Residues, Bark, etc.

Power Unit

Electricity

New Business Biorefinery Biofuels and Chemicals


29

Forestry Operations

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Land & forest base(1)

Total Area: Eucalyptus plantation: Native reserve area: Other


uses(2):

1,030,000 ha 572,000 ha 391,000 ha 67,000 ha


Trs Lagoas

Belmonte Veracel Caravelas Portocel Aracruz

Piracicaba

Jacare
Santos

Partnership planted area: 124,000 ha

1As 2

of March 31, 2011, including 50% of Veracel Roads and infra-structure

Port Terminal

Pulp Mill

Paper Mill
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Automated silviculture control systems

32

Imaging & planning digital model

33

Full mechanized logging operation

34

Vehicle for forestry quality control

Unmanned aerial vehicle (UAV) used for capturing images of the forests

UAV control cockpit operated from remote base of up to 15 km away from the station

Area m2

Counting trees tree survival guarantee to maximize productivity

Tree failures map

35

Sustainable forest management

Biodiversity Protection

Ecosystem Services

Wildlife Conservation

Assess, monitor and study of biodiversity Environmental recommendations to minimize operations impact Protection of endangered species Partnership with NGOs, universities and governments

Optimize soil usage Balance use of inputs Restoration of conservation areas Mosaic landscapes

Three private natural heritage reserves to conserve endangered species Support to wildlife conservation programs Environmental education programs

36

Industrial Operations

37

Fibrias pulp mills capacities


Trs Lagoas Mato Grosso do Sul 1.3 million t/year Jacare So Paulo 1.1 million t/year

Aracruz Esprito Santo 2.3 million t/year

Veracel Bahia 1.1 million t/year (50% JV)

38

State of the art facilities

Average mill capacity (000 tons)


2,500 Fibria (Aracruz) 2,000

1,500 Fibria (Trs Lagoas) Fibria (Jacare) Indonesia 1,000 Fibria (Veracel 50%)

Other Brazilian pulp mills 500 Russia 40 USA Japan 30 Portugal Finland Canada France/ Spain Sweden 20 Chile South Africa

10

Technical age of the equipment (years)

Source: PYRY

39

Trs Lagoas II and Veracel II

Trs Lagoas II Forest Base need


Total area : 230,000 ha Planted area: 150,000 ha

Veracel II Forest Base need


Total area : 220,000 ha Planted area: 120,000 ha

Status
Leasing: 70,000 ha of planted area Trs Lagoas I surplus: 30,000 ha

Status
Under negotiations with partner

Start up
2014

40

Sustainability

41

Sustainability goals

Relationship with Local Communities

Presence in 252 municipalities Indigenous communities Landless workers movements

Approximately 4,000 contracts with farmers (124 thousand ha)

Forest Partnership Programs

Goal to achieve a balanced package of environmental, economic and social benefits to Fibria, partners and society

Goal to obtain FSC and PEFC certifications in all forestry bases

Certification of all Forest Areas

(currently all our forestry bases have one or both certifications)

42

Partnership program to enhance value creation and community relationships Wheat Sunflowers

Cattle

Watermelons

43

Sustainability and forestry certifications


Sustainability Advisory Committee representing shareholders, executive management and stakeholders Presence at Sustainability Indexes DJSI and ISE Emphasis on dialogue to build partnership and trust with the stakeholders Maintain all forest areas under certification Carbon footprint certification at all production units, from silviculture up to delivery to Fibrias customer

44

Human Resources

FOTO

45

Fibrias culture to face challenges


Lean organization Operational excellence and superior performance

Culture

Hands-on approach to ownership Transparency Health and safety are priorities Global outlook

Balanced preference for internal promotion

Succession Plan

Marcelo Castelli has been appointed as Chief Executive Officer, effective July 1st, 2011 Core intellectual capital protected

Employer of choice in the industry segment

Attraction and Retention

Total compensation goal: 3rd quartile Meritocracy Synergy bonus as a strategy to retain talent Partnership with top universities for MBA programs Continuous technical training for operational teams Benchmark: visiting customers and competitors at global level
46

Training / Development

Corporate Governance and Financial Highlights

47

Recent improvements confirm commitment to governance


Listed on Novo Mercado, highest level of Corporate Governance at BM&F Bovespa
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

Policies approved by the Board of Directors


Liability and liquidity management Market risks Corporate governance Information disclosure Stock trading

48

Fibrias shareholder structure

Votorantim Industrial S.A.

BNDESPar

Free Float

29%

30%

41%

BOVESPA

NYSE "FBR"

"FIBR3"

40%

60%

49

Fibrias governance structure

Shareholders Meeting

Board of Directors

Fiscal Council

Board Advisory Committees

Executive Officers

50

Financial highlights

Net Revenues (R$ million)

Fibrias Margin vs. Macroeconomic Fundamentals

7,050 6,000 6,320

Average Price BEKP Europe (US$/t)

Exchange Rate Average (R$/US$)

EBITDA Margin

EBITDA (R$ million)

2009

2010

1Q11 LTM

Source: Fibria | 1Q11 excludes Conpacel and KSR.

51

Liability management
Promises delivered, now more ahead to go
Net Debt/ Ebitda (x)

Net Debt (R$ bi)

Commitment to investment grade level

Sale of Guaba US$ 1.4 bn Fibria19 bond: US$ 1 bn 9.25% 10NC5 Export pre-payment facilities: US$ 1.175 bn

Fibria20 bond: US$ 750 MM 7.5% 10NC5 Exchange Bond Fibria19: 94% to Fibria20 Operational cash generation Derivatives debt settlement: US$2.6 bn Debt: lower cost longer tenor

Sale of Conpacel/KSR R$1.5 bn Fibria21 bond Fibria21: US$ 750 MM 6.75% 10NC5 Revolving credit facility Covenants Tight cost control New Liquidity events
52

Indebteness and Liquidity Management policy approved by the Board of Directors


Objective
Further strengthen the Companys commitment to achieve and sustain Investment Grade level

Highlights
Leverage target: Net/Debt to EBITDA: 2.0 x to 2.5 x Leverage cap: 3.5x even during the peak of the expansion cycle Maintain the necessary liquidity to meet its operational and short term financial obligations

Goals
Access to competitive sources of funding Attract a broader and more diversified investor base Reduce the Companys cost of capital
Policy available at Fibrias website at www.fibria.com.br/ir

53

Fibria in summary

ROI above WACC

Larger scale

Global and strong market positioning

Innovation

HIGHER TOTAL SHAREHOLDER RETURNS

Growth

Solid financial performance

Sustainability

Low cost structure

54

Thank you!

Investor Relations Team Website: www.fibria.com.br/ir E-mail: ir@fibria.com.br Tel.: +55 (11) 2138-4565

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