PDF - 872.3 KB (Original)

Corporate Presentation
May 2010
1
Disclaimer
The information contained in this presentation may include statements which constitute
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.
2
Agenda
The Company
Market Positioning
Pulp and Paper Market
1Q10 Financials
Corporate Restructuring
Appendix
3
The Company
4
VCP and Aracruz Merged to Create Fibria
Shareholder Structure
Votorantim
Industrial S.A.
29.3%
BNDESPar
30.4% (1)
50.0%
Veracel
Celulose S.A.
(1)
Free Float
40.3%
50.0%
Conpacel
Position as of Apr 30, 2010. BNDESPar has 21% linked to a shareholder’s agreement with VID during the first 3 years, and 10.9% during the following 2 years.
5
Improved Corporate Governance
Board of Directors
José Luciano Penido
Board Advisory Committees
Chairman of the Board
Raul Calfat
Indicated by Votorantim
Wang Wei Chang
Indicated by Votorantim
João Miranda
Indicated by Votorantim
Alexandre D’Ambrosio
Indicated by Votorantim
Armando Mariante Carvalho Junior
Indicated by BNDES
Eduardo Rath Fingerl
Indicated by BNDES
José Armando de Figueiredo Campos
Independent Member
Alexandre Gonçalves Silva
Independent Member
Auditing
Personnel and Remuneration
Finance
Sustainability
Executive Board
Board of
Directors
CEO
Carlos A. Aguiar *
Ind. Ops &
Engineering
Comm. & Int’l
Logistics
Paper Business,
Strategy and
Supply Chain
Forestry
Controllership
& Risk
Management
Human and
Org.
Development
Francisco Valério
João Felipe Carsalade
Marcelo Castelli
Evandro Coura
João Steinle
Each officer with more than 20 years experience in the sector
*The Company’s Board of Directors have decided that FIBRIA’s CEO, Carlos Augusto Lira Aguiar, will accumulate the position of Treasury and Investor Relations Officer until further decision.
6
Market Positioning
7
Creation of a Winning Player
Superior Asset Combination
Competitive Strengths
Pulp Mill
Paper Mill
Port Terminal
Leadership in Market
Pulp
Scale and Integrated
Operations
Três Lagoas
Conpacel
•
•
•
•
•
Belmonte
Veracel
Caravelas
Portocel
Aracruz
Piracicaba
Jacarei
Santos
Unique Forestry
Management:
Advanced Forestry
Techniques and
Short Harvest Cycle
Pulp production capacity: 5.4 MT / year
Low Production
Cost DNA
Strong / Reliable
Customer Base
Paper production capacity: 358 kT / year
Total area: 1.0 million ha(1)|Eucalyptus plantation: 585 thousand ha(1)
4 plants and operation of 3 port terminals, including the only specialized wood
pulp terminal in Brazil, owned by us
High yield in eucalyptus production (avg 45
m3/ha/year)
and certified forests
Forest to Port
Integration Trough
Efficient Logistics
Modern Industrial
Plants
– Short harvest cycle: 6 years vs. 25-70 years in Southern U.S., Canada
and Scandinavia
Data as of March 31, 2010.
(1)Does not include partnership program which represents 127 thousand ha.
8
Unique Brownfield Potential Growth
Fibria has the Best Sites Ready to Almost Duplicate Capacity
Historical and Planned Capacity Increase
Aracruz
Capacity 2.3 mt
Technical age: 9
Best sites for additional capacity
Average Plant Capacity
(‘000 tons)
2.500
Aracruz IV
2.000
Três Lagoas
Capacity 1.3 mt
Technical age : 0
1.500
Losango I
Jacareí
Indonesia
1.000
Uruguay
Capacity 1.1 mt
Technical age : 5
Três Lagoas II
Brazil
500
Russia
USA
Portugal
Canada
Sweden
Japan
40
30
Chile
South
Finland
France
Africa China
Spain
20
10
Technical age of equipment (years)
Capacity 1979 - 2009 CAGR: 3.6%
Veracel II
Veracel
Brownfield
Brownfield
Greenfield
Brownfield
Capacity 1.1 mt
Technical age : 3
…Expansion…
9
Undisputable Leadership in the Global Market Pulp
Dominant Position in a Growing Market
Pulp Production Capacity
2009E in ktons
1o
5,400
~ Twice
The size
Source: PÖYRY, 2007 / As for Market Pulp: Pulp and Paper Products Council (PPPC) 2009 and Fibria.
(1) Market Share estimated considering 2009 nominal capacity.
10
Long Term Relationship With Key Clients
Premium Paper Producers Value High Quality Pulp Customized Products…
Global Footprint
Uses of Fibria’s Pulp – 1Q10
Supplies customized pulp products to specific paper grades
Sole supplier to key customers focused on eucalyptus pulp to the tissue market
Specialty
Top 10 main customers represent on average 65% of sales
Tissue
Europe
39%
P&W
Switzerland
Hungary
North America
27%
Asia
23%
Miami
Beijing
Hong Kong
Sales
Destination (1)
Brazil
11%
Headquarters
Subsidiaries
Representative offices
NY004GAK_1.wor
NY004GAK_1.wor
… Which Implies in Less Volatility in Sales
Volume Throughout Economic Cycles
1
Breakdown of sales destination in 1Q10.
11
Pulp and Paper Market
12
Source: PPPC
Source: Utipulp
25
86%
Mar-10
Feb-10
89%
Apr-10
81%
Jan-10
Dec-09
79% 79% 78%
Dec-09
87%
Nov-09
85%
Aug-09
87%
Oct-09
92%
Sep-09
Aug-09
89%
Apr-09
Dec-08
Jul-09
Jun-09
May-09
Apr-09
Mar-09
Feb-09
Jan-09
Dec-08
77%
Aug-08
15
79% 79%
Apr-08
10
Oct-08
76%
Dec-07
20
Nov-08
78%
Aug-07
20
Sep-08
77%
Apr-07
25
Dec-06
40
Aug-08
92%
Aug-06
World pulp producers’ average days of supply
Apr-06
50
88%
Jul-08
91%
Jun-08
95%
May-08
World market pulp shipments to capacity
Dec-05
60
Apr-08
98%
Aug-05
Source: PPPC
Apr-10
Mar-10
95%
Apr-05
30
Feb-10
90%
Apr-10
Jan-10
86%
Dec-09
90%
Dec-09
92%
Aug-09
Oct-09
Nov-09
88%
Apr-09
Sep-09
Aug-09
92% 93%
Dec-08
92%
Jul-09
95%
Aug-08
Jun-09
83%
May-09
97%
Apr-08
Apr-09
86%
Dec-07
91%
Mar-09
94%
Aug-07
90%
Feb-09
Jan-09
Dec-08
Nov-08
79%
Apr-07
Dec-06
Oct-08
Sep-08
82%
Aug-06
Jul-08
Aug-08
89%
Apr-06
Dec-05
Jun-08
May-08
Apr-08
91%
Aug-05
Apr-05
Positive Commodity Cycle and Demand Recovery
World P&W paper shipments to capacity
95%
97%
88%
86%
87%
79%
73%
Source: PPPC
European pulp consumers’ days of supply
35
30
22
13
Pulp Supply x Demand Balance Expected to
Remain Tight
Market Pulp: world demand growth
China: Eucalyptus pulp shipments (‘000 t)
Average
305 k tons
419
25%
3%
Total
North
America
14%
12%
Western
Europe
Latin
America
Japan
Average
169 k tons
186181192
146
132134
-30%
China
4 months 2010 vs. 2009
Source: PPPC
368 318
323
307 307
299
256233 247
Average
194 k tons
242
229
153
98
65
152
93
Source: PPPC
BHKP List pulp price (FOEX) vs BRL/US$
Global market recovery
50%
150
140
130
120
110
100
90
80
70
210
307
238
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
14%
458
Demand
• Paper demand recovery;
• China keeping up the pace.
Low consumers and producers inventories
• Market downtimes;
Currency
• Appreciation of local currencies against the US$.
25%
Successive announcements of list price increases (as of Jun.10)
FOEX
BRL/USD
•
•
•
North America: US$950/t
Europe: US$920/t
Asia: US$850/t
Source: Bloomberg
14
1Q10 Financials
15
1Q10 Performance
Key figures
1Q10
Pulp: sales mix
4Q09
1Q10 vs. 1Q10 vs.
4Q09
1Q09
1Q09
Pulp Production ('000 t)
1,314
1,395
1,032
Pulp Sales ('000 t)
-6%
1,322
1,460
1,164
-9%
14%
Paper Production ('000 t)
77
88
94
-13%
-19%
Paper Sales ('000 t)
83
111
94
-25%
-12%
Net Revenue (R$ million)
EBITDA (R$ million)
(2)
1,675
1,698
1,429
-1%
17%
637
503
378
27%
69%
38%
30%
26%
8 p.p.
12 p.p.
(341)
(157)
(185)
-
-
Net Income (R$ million)
9
35
1,267
-74%
-99%
Net Financial Result
Cash cost (R$/t)
8%
12%
26%
1Q10
11%
22%
27%
23%
38%
(3)
EBITDA margin (%)
4Q09
1Q09
27%
32%
34%
29%
North America
Europe
39%
Asia
Brazil
EBITDA (R$ million) and EBITDA Margin (%)
38%
30%
473
451
-7%
26%
637
418
503
378
1Q09
4Q09
1Q10
1Q09
4Q09
1Q10
16
Source: Fibria
Indebtedness
Debt indicators
(R$ million)
1Q10
Gross Debt
Cash Position
Net Debt
4Q09
Average maturity* (months)
1Q09
1Q10 vs
4Q09
1Q10 vs
1Q09
13.540
14.661
18.687
-8%
-28%
2.684
3.968
2.954
-32%
-9%
10.856
10.693
15.773
2%
-31%
5.6
6.3
7.8
-0.7x
-2.2x
Net Debt/EBITDA (x)
60
62
4Q09
1Q10
49
1Q09
* Does not include the debt to former Aracruz shareholders
Debt Amortization Schedule (R$ billion)
Debt by currency and by type
Gross Debt
by currency
Short-term debt:
4.3
from 30% in Sep/09
to 23% in Mar/10
(2)
2.3
3.9
4%
2% 3%
7%
2.8
1.5 1.4
1.4
(1)
1.6 1.8
1.2 1.2
1.0
0.8
38%
2.1
2.1
Gross Debt
by type
34%
13%
62%
17%
20%
2009
2010
2011
2012
Sep 09
(1) 2009:
(2) 2010:
(1) 2009:
3m |3m
(2) |2010:
9m 9m
2013
Mar 10
2014
2015
2016 - 2020
Local
Foreign
Pre-Payment
Bonds
Derivatives
NCE
Aracruz Acquisition
BNDES
ACC/ACE
Others
17
Synergies
Synergies
Synergy curve – NPV (R$ billion)
4.2
Status 1Q10:
102% of the
projected curve
4.3
4.5
Others
Others
3.4
Supply
Supply
2%
Chain
Chain 21%
2.3
Taxes
Taxes
0.49
Dec-09
1Q10
Dec-10
Estimated
Estimated
2011
2012
2013
27%
11%
SG&A
SG&A
0.45
Industrial
Industrial
16%
23%
Forestry
Forestry
2014
Accumulated
Accumulated
18
Growth
Growth
Liability management
Net Debt / EBITDA
...
7.8x
•
•
•
6.3x
Expansion projects to benefit from
growth in pulp demand
5.6x
3.1x
Return to investment grade
Further deleveraging of the
Company
LTM-Mar 09
LTM-Dec 09
LTM-Mar 10
LTM: Last Twelve Months
LTM: Last Twelve Months
Status of expansion projects
Três Lagoas II
Veracel II
1.5 million ton capacity
1.5 million ton capacity
Required planted area: 145,000 ha
Negotiations with partner in progress
Start of industrial and environmental licensing on 2Q10
Purchase and leasing of land started
(50% own and 50% leasing)
Startup forecast: 2015 / 2016
19
Corporate Restructuring
20
Corporate Restructuring
Event
Date
Acquisition by VCP of additional 28% of Aracruz common shares
Jan 20, 2009
VCP Capital Increase
Apr 14, 2009
VCP conversion of prefered into common shares
Jun 12, 2009
Tender Offer for Aracruz common shareholders
Jul 02, 2009
Incorporation proposal for the 0.1347 ratio
Aug 24, 2009
Merger of Aracruz shares into VCP approval
Aug 24, 2009
Shareholderes Agreement - VID and BNDES
Oct 29, 2009
End of withdrawal rights period
Nov 12, 2009
End of Aracruz trading
Nov 17, 2009
Fibria trading start (Bovespa: FIBR3 / NYSE: FBR)
Nov 18, 2009
Approval of the merger of Aracruz into Fibria
Dec 22, 2009
Migration to Novo Mercado listing segment at BM&FBovespa
May 20, 2010
Source: Fibria
21
Appendix
22
Benefiting from China's Growth
China’s Hardwood Imports of BHKP by Country (1)
China P&B Production and Consumption (2)
in ktons
kg/person/yr
in million tons
7.000
6.000
Brazil is the leading exporter of
BHKP to China, accounting for
approximately 41% of China's total
imports in 2009
5.000
4.000
120
70
100
60
50
80
40
60
3.000
30
2.000
40
1.000
20
10
0
0
0
BHKP
Total
Others
Growth in 2009
1999
2000
2001
2002
2003
Consumption
2008
(1) Source: Hawkins Wright.
2004
2005
Production
2006
2007
2008
2009
Per Capita
(2) Source: China Paper Association.
2009 Fibria’s Global Footprint (3)
Destination of Fibria’s Pulp
Per Capita Consumption of Tissue by World Region (4)
30
Uses of Fibria’s Pulp
10%
Specialty
Asia
23%
Kg / capita
25
Brazil
36%
20
20
24%
North America
43%
Tissue
15
10
31%
Europe
33%
P&W
5
0
North
West
America Europe
(3) Breakdown of sales destination in the last 12 months ending December 31, 2009.
(4) Source: RISI.
Japan
Oceania
LatAm
East
Europe
China
Africa
23
P&W Paper Capacity Changes
P&W Paper Capacity Withdrawals 2009-2010
China: P&W Paper Capacity Changes 2009-2011
Company / Mill
Company
Region/Date
000's tonnes
M Real
Europe/2009
540
International Paper
Europe/2009
250
Others
Europe/2009
440
North America/2009
265
International Paper
North America/2009
200
Others
North America/2009
255
Stora Enzo
Europe/2010
520
Sappi
Europe/2010
220
Others
Europe/2010
80
Domtar
North America/2010
200
International Paper
North America/2010
340
000's tonnes
Puyang Longfeng
Jan 2009
350
Tralin, Gaotang
Feb 2009
150
MCC Yinhe Paper
Jul 2009
200
Guangxi Jindaxing Paper
Q3 2009
200
Yeuyang Paper
Oct 2009
200
Fujian Nanping Paper
Oct 2009
200
2010
200
APP, Hainan Island
Q1 2010
1,200
Sun Paper/IP
Q2 2010
350
Lee&Man
1H 2010
200
May 2010
400
China Metalurgical Meili
Paper
Q1 2011
300
Shandong Huatai Paper
Q1 2011
500
Shandong Chenming
Q1 2011
1,250
late 2011
340
2009 = 1.3 million t
2009 = 1.9 million t
Domtar
Effective Date
Yeuyang Paper
Jiangsu Oji Paper
Total P&W capacity withdrawls in Europe
and North America
2010 = 2.3 million t
2010 = 1.4 million t
3,300
2011 = 2.4 million t
Guangxi Huajin Group
Total P&W capacity changes in China
Source: TerraChoice Dec 2009.
6,040
Pulp Capacity Changes
Major Market Pulp Related Capacity
2009-2014
Company
Mills
APRIL
Rizhao, China
Eldorado Celulose e
Papel
Três Lagoas, Brazil
Suzano
Maranhao, Brazil
Total
Major Market Pulp Mill Permanent & Indefinite
Closures/Conversions 2008-2010
Effective Date
000's
tonnes
Company
Mills
Effective Date
Q2 2010
1,300
Stora Enso
Kemijarvi, Finland
Norrsundet, Sweden
end April 2008
mid Nov. 2008
250
300
2012-2013
1,500
Rottneros
Utansjö, Sweden
Miranda, Spain
April/May 2008
January 2009
170
150
2013
1,300
Pope & Talbot
Mackenzie, BC, Canada
Nanaimo, BC, Canada
May 2008
May 7, 2008
200
100
AV Nackawic
Nackawic, NB, Canada
August 2008
230
Baikal Pulp and Paper
Baikal, Russia
October 2008
October 2008
100
90
Lee & Man
Samoa, CA, USA
October 2008
200
Smurfit Stone CC
Portage-du-Fort, QC, Canada
October 31, 2008
230
International Paper
Bastrop, LA, USA
mid Nov. 2008
410
Catalyst Paper
Elk Falls, BC, Canada
Crofton, BC, Canada
November 30, 2008
Feb./March 2009
200
200
Borregaard
Riedholz, Switzerland
December 2008
120
UPM
Tervasaari, Finland
December 2008
210
Boise Inc.
St. Helens, OR, USA
January 2009
275
Buchanan Forest
Terrace Bay, ON, Canada
Terrace Bay, ON, Canada
January 12, 2009
February 23, 2009
125
350
Marathon Pulp
Marathon, ON, Canada
end Feb. 2009
200
Botnia
Kaskinen, Finland
March 2009
450
M-real
Alizay, France
March 2009
310
CMPC
Laja, Chile
March 16, 2009
90
Fraser Papers
Thurso, QC, Canada
late May, 2009
255
Oji Paper
Kushiro City, Japan
late May, 2009
150
SAPPI
Usutu, Swaziland
4,100
Source: TerraChoice Dec 2009.
Total
Jan. 31, 2010
000's
tonnes
190
5,555
Investor Relations Team:
Carlos Aguiar – IRO
André Gonçalves – IR General Manager
Fernanda Naveiro Vaz – IR Consultant
Anna Laura Linkewitsch – IR Specialist
Livia Baptista – IR Analyst
26