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Updated on 02.12.2015

MídiaReleases

December 02, 2015 - Fibria projects Capex of R$ 2.05 billion in 2016 at the 5th Fibria Day held in New York

World’s largest eucalyptus pulp producer participates in the closing bell ceremony of the New York Stock Exchange (NYSE)

São Paulo, December 2, 2015 – Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, has announced an estimated Capex in 2016 of R$ 2.05 billion (US$ 516 million). This amount, which does not include investments earmarked for expansion of the Três Lagoas unit in Mato Grosso do Sul State, was announced this Wednesday at the 5th Fibria Day, the annual meeting between key executives from the company and market analysts and investors, held at the New York Stock Exchange (NYSE).

Due to the exchange rate (dollar/real) and the cost rationalization efforts, the company’s Capex in 2015 will be US$ 584 million.

In New York, Fibria executives will also participate in the closing bell ceremony along with NYSE representatives. Fibria is represented by CEO Marcelo Castelli, together with the Chief Financial and Investor Relations Officer Guilherme Cavalcanti, the Commercial & International Logistics Officer Henri Philippe Van Keer, the Innovation & Technology Officer Fernando Bertolucci, the Corporate Strategy & New Businesses Development Officer Vinícius Nonino, and other members of the management.

“We did our homework very well and are now reaping the rewards. Since our previous meeting with analysts and investors last year in New York, we have reduced our leverage from 2.52 times to 1.58 times, we have been assigned investment grade by Moody’s and Standard & Poor’s, we have announced the expansion of the Três Lagoas unit at an investment of R$ 8.7 billion (US$ 2.2 billion), and increased Fibria’s net revenue by 60%”, said CEO Marcelo Castelli.

Mr. Castelli also highlighted the approval given by the extraordinary shareholders meeting held on November 30 to the distribution of dividends amounting to R$ 2 billion. The factors behind the Company’s decision to submit this proposal include low leverage, strong cash generation, low average cost of debt and the fact that funding for the Horizonte 2 Project has already been settled.

 

Horizonte 2 Project – expansion of the Três Lagoas unit (MS)

One of the highlights of Fibria’s presentation was the Horizonte 2 Project, one of the largest private investments in Brazil focused on exports, amounting to R$8.7 billion (approximately US$2.2 billion), which will expand the production capacity of its Três Lagoas Unit in Mato Grosso do Sul State. Of the total Capex estimated for the project, 60% will be disbursed in 2016. Around 30% of total financing for Horizonte 2, equivalent to R$2.6 billion, will come from cash generated by Fibria, which has been consistently posting operational records.

Expansion work at Três Lagoas has already started and is on schedule, with the unit expected to go operational in the final quarter of 2017. The project will generate 40,000 jobs during the expansion work. At the end of the project, 3,000 direct and indirect jobs will be created.

 

Investment Grade

In 2015, Fibria’s rating was upgraded to investment grade by rating agencies Moody’s and Standard & Poor’s, joining Fitch Ratings, which had already assigned the same rating the previous year. According to the Moody’s report published in November this year, the upgrade to investment grade reflects mainly the financial discipline shown by Fibria, with its capacity to consistently lower its leverage ratios while maintaining a solid liquidity position.

Another factor highlighted by Moody’s in its decision to upgrade Fibria’s rating was the prospect of investments on expansion of the Três Lagoas industrial complex, while maintaining the level of debt compatible with the investment grade rating.

 

About Fibria

A world leader in eucalyptus pulp production, Fibria is a company that strives to meet the growing global demand for forestry products in a sustainable manner. With annual pulp production capacity of 5.3 million tons, the company has industrial units in the cities of Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), and in Eunápolis (Bahia), where it operates the Veracel plant through a joint operation with Stora Enso. In May 2015, Fibria announced the expansion of its Três Lagoas unit in Mato Grosso do Sul, which will receive a new line with the capacity to produce 1.75 million tons of pulp per year. The new line, which will receive investment of US$2.5 billion, is slated to start operations in the fourth quarter of 2017. Fibria has 968,000 hectares of forests, with 561,000 hectares of planted forests and 342,000 hectares of environmental preservation and conservation areas. The pulp manufactured by Fibria is exported to more than 40 countries.

For more information, please visit www.fibria.com

 

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