Académique Documents
Professionnel Documents
Culture Documents
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
Pulp capacity Paper capacity Net revenues Planted area Net Debt Net Debt/EBITDA
(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).
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
Fibrias Strategy
11% 22%
32%
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
Canada
Sweden
France / Belgium
USA
China
Finland
Chile
Brazil
Fibria
Improved financials
Net Revenues (R$ million)
7,050 1,697 28%
6,320 6,000
39%
2009
2010
1Q11 LTM
2009 565
2010 848
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.
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
10
612MM
Tissue P&W Newsprint
Containerboard
Others ()
(1)
11
Supply
Source: RISI
12
Industry
Costs
Sustainability
13
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
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
15
Strategic Solutions
2025 Vision
Sustain leadership and preferred supplier position
Market consolidation
Prioritize total shareholder return Maintain low cost structure Commitment to investment grade rating Optimized usage of forest base
16
17
Commercial strategy
Differentiation
Market Segmentation
18
Tissue
49%
24%
4%
Specialties
22%
14%
3%
Newsprint
-0.1%
Containerboard
8%
5%
Others
11%
3%
19
Global presence
41% 26%
N.America Europe
Nyon Miami
Csomd
23%
Asia
Beijing
Hong Kong
10%
L.America
So Paulo
20
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
22
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
to 2011!
23
FIBRIA
24
Forest Genetics
Biotechnology
Forest Management
25
Value creation
27
Opacity
Smoothness
Softness
Bulk/Stiffness
28
Market Pulp
Planted Forest
Power Unit
Electricity
Forestry Operations
30
Piracicaba
Jacare
Santos
1As 2
Port Terminal
Pulp Mill
Paper Mill
31
32
33
34
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
35
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
38
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
Source: PYRY
39
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
Goal to achieve a balanced package of environmental, economic and social benefits to Fibria, partners and society
42
Partnership program to enhance value creation and community relationships Wheat Sunflowers
Cattle
Watermelons
43
44
Human Resources
FOTO
45
Culture
Hands-on approach to ownership Transparency Health and safety are priorities Global outlook
Succession Plan
Marcelo Castelli has been appointed as Chief Executive Officer, effective July 1st, 2011 Core intellectual capital protected
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
47
48
BNDESPar
Free Float
29%
30%
41%
BOVESPA
NYSE "FBR"
"FIBR3"
40%
60%
49
Shareholders Meeting
Board of Directors
Fiscal Council
Executive Officers
50
Financial highlights
EBITDA Margin
2009
2010
1Q11 LTM
51
Liability management
Promises delivered, now more ahead to go
Net Debt/ Ebitda (x)
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
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
Larger scale
Innovation
Growth
Sustainability
54
Thank you!
Investor Relations Team Website: www.fibria.com.br/ir E-mail: ir@fibria.com.br Tel.: +55 (11) 2138-4565