Conference Call – 1Q15
April 24th, 2015
Disclaimer
The information contained in this presentation may include statements which constitute
forward-looking statements, as defined by 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 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 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 are valid only for the date on which they are made.
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Agenda
Key highlights
4
Pulp market
5
1Q15 results
6
Commodities prices
7
Cash production cost
8
Indebtedness
9
Net results
10
Free cash flow
11
3
Key Highlights
• 1Q15:
Net revenue: R$1,997 million | EBITDA: record of R$1,007 million | EBITDA margin: record of 50% |
Operational
Results
FCF: R$373 million
• LTM(*):
Net revenue: record of R$7,438 million | EBITDA: record of R$3,119 million | EBITDA margin: record of 42% |
FCF: R$1,001 million
• Sales volume of 1.229 million tons in the quarter, 3% higher year-on-year;
• Pulp sales of 5.346 million tons LTM, equivalent to 101% of the production volume in the period;
Pulp Market
• Higher sales to Europe, representing 46% of the sales mix;
• 18% increase on global eucalyptus pulp demand (3M15 vs. 3M14).
• Gross debt reduction of US$800 million LTM, equivalent to 22%;
Liability
Management
(*) LTM: Last twelve months.
• Net debt of US$2,803 million, the Fibria’s lowest ever level;
• Financial leverage reduction in US$ to 2.3x.
4
Pulp Market
Shipments of Eucalyptus Pulp (1)
Producer Inventories and Operating Rates – Hardwood (1)
3M15 vs. 3M14
18%
80
99%
90%
65
+680 kt
32%
7%
23%
+264 kt
+114 kt
+78 kt
60%
50
23%
38 days
30%
35
+224 kt
20
0%
05
Total
(1)
North
America
Western
Europe
China
06
07
Others
2Q15
3Q15
(85)
(128)
and Fibria
12
13
14
15
Operating Rate (%)
By end-use
By region
North
America
17%
Europe
46%
Asia
(98)
Tissue
48%
Printing &
Writing
35%
26%
LatAm
11%
(1) Source: ABTCP
11
Sales Distribution 1Q15 - Fibria
4Q15
(59)
10
Source: PPPC World 20 – March/2015
BHKP Schedule Maintenance Downtimes - Brasil (000 t)(1)
1Q15
09
Inventories (in days)
(1)
Source: PPPC World 20 – March/2015
08
Specialties
17%
5
1Q15 Results
EBITDA (R$ million) and EBITDA Margin (%) – FX Sensitivity
2.87
2.54
Average FX (BRL/USD)
2.37
Average pulp price - FOEX
Europe (USD/t)
2.27
2.23
768
752
749
729
734
50%
45%
EBITDA Margin
1.007
41%
35%
EBITDA (R$ million)
35%
906
679
1Q14
594
613
2Q14
3Q14
4Q14
1Q15
6
Commodities prices
100 = January 1st, 2012
180
172
170
160
150
140
130
120
116
110
100
90
81
80
70
60
51
48
50
40
Iron Ore
Soy Bean
Crude Oil
Sugar
BHKP (FOEX Europe)
Mar-15
Jan-15
Nov-14
Sep-14
Jul-14
May-14
Mar-14
Jan-14
Nov-13
Sep-13
Jul-13
May-13
Mar-13
Jan-13
Nov-12
Sep-12
Jul-12
May-12
Mar-12
37
Jan-12
30
Exchange Rate (USD/BRL)
Source: Bloomberg
Low volatility of hardwood pulp price, even though new capacities have
come on stream in the period.
7
Cash Production Cost (R$/t) – 1Q15
572
549
19
1Q14
Wood
10
( 11 )
(7)
(3)
Materials and
Services
Energy
Consumption
Utilities
Others
15
FX
1Q15
+ 4.2%
Management initiatives seeking to maintain the cash cost below inflation.
(Utilities: 1Q15: R$25/t I 4Q14: R$37/t I 1Q14: R$18/t)
Cash Production Cost – Total and Ex-Downtime (R$/t)
524 549
1Q14
548 572
472 472
4Q14
Cash Cost ex-Downtime
1Q15
Cash Cost
8
Indebtdeness
Net Debt (Million)
Gross Debt and Interest Expenses (Million)
2.9
2.7
2.4
2.4
8,991
7,549
3,080
2,842
Mar/14
8,445
44
35
Mar/15
9,352
8,327
3,732
2,803
Dec/14
R$
3,135
Mar/14
- 22%
2,915
Dec/14
R$
US$
Mar/15
US$
Average Tenor (months) and Cost of Debt* in US$ (% p.a.)
Debt Amortization Schedule (US$ Million)
657
- 40%
58
2.3
2.4
6,970
Interest (US$)
Net Debt/EBITDA (US$)
Net Debt/EBITDA (R$)
623
600
3.7
3.4
3.5
438
545
(revolver)
363
339
241
84
2016
Pre-payment
54
Dec/14
Mar/15
47
205
(cash) 113
Liquidity 2015
55
2017
2018
BNDES
2019
ECN
2020
ACC/ACE
2021
Voto IV
19
3
2022
2023
Bond
2024
Mar/14
(*) Considering the portion of debt in reais fully adjusted by the market swap curves at the end
of each period.
9
Net Results (R$ million) – 1Q15
1,007
∆ FX Debt
∆ MtM
hedge
swap
ZCC
(1,685)
(123)
(44)
(22)
(566)
Others (1)
Net Income
(Loss)
179
(85)
deffered
current
(448)
Adjusted
EBITDA
(1)
∆ FX Debt /
∆ MtM
MtM Debt
Hedge
Operational
Hedge
Swap/ZCC
settlements
Net
Interest
Deprec.,
amortiz. and
depletion
643
Income
Taxes
Other FX and
monetary
variations
Includes non-recurring expenses/non-cash and other financial income/expenses.
10
Free Cash Flow (1) – LTM
R$ million
3,119
1,001
(1,645)
Adjusted EBITDA
Capex
(322)
( 149 )
(34)
32
Interest
(paid/received)
Working Capital
Taxes
Others
Free Cash Flow
(1) Does not include non-recurring items.
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Investor Relations:
Website: www.fibria.com.br/ri
E-mail: [email protected]
Phone: +55 11 2138-4565
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