Displaying items by tag: Fibria

Fibria, a Brazilian forestry company and the world's leading eucalyptus pulp producer, was recognized by American magazine Fortune (of the Time Inc. group) as one of the companies that are helping to create a better world. The magazine prepares the annual list “Change The World”, which ranks 50 companies from around the world that most create positive social impacts through their strategies, operations and innovations. Fibria is the only pulp and paper company to be included in this year’s ranking.

“Fibria understands that healthy business growth depends not just on economic and financial aspects but also on social and environmental aspects. We believe in shared value and having our principle recognized by entities with global credibility is reason for celebration,” said Marcelo Castelli, CEO at Fibria.

Among the 50 companies that are helping to change the world, Fibria ranked 14^th.  According to Fortune, one of the highlights at Fibria is the Forest Savings program, which completed 25 years of activities last year. The project includes rural producers in the forestry business through a partnership with the company, which helps in the creation of forests by providing seedlings, technical assistance and the necessary inputs for cultivation, while the producers are responsible for managing the forests.

“We are glad to see a program of such importance for Fibria as a reference in the Fortune list. By including local producers in the company’s supply chain, Fibria generates shared value, combining the company’s success with the prosperity of local communities,” said Maria Luiza de Oliveira Pinto e Paiva, the Sustainability, Corporate Relations and Communications Officer at Fibria.

Currently, 1,685 producers from 164 cities in the states of Espírito Santo, Bahia, Minas Gerais and São Paulo participate in the program, which covers a total area of 67,000 hectares. Around 30% of the wood supplied to the Fibria unit in Espírito Santo comes from local producers participating in the Forest Savings program.

Fortune’s “Change The World” list recognizes companies with revenues of over US$1 billion that made a positive social impact through activities that are part of their business strategy. Nominations are made by executives, academics and NGOs, which are followed by a detailed assessment by the magazine in partnership with FSG, a nonprofit consulting firm, Shared Value Initiative, a global platform that seeks business solutions for social challenges, and Professor Michael E. Porter from the Harvard Business School.

Assessment of the companies takes into consideration the measurable social impact, business results and the level of innovation.

The complete list is available at http://for.tn/2bhiwAg #ChangeTheWorld

Record demand from investors resulted in the final issue amount exceeding by 35% the initial offering by the Company, the world’s leading producer of eucalyptus pulp

Fibria, the world’s leading producer of eucalyptus pulp, has just announced the closure of the issue of Agribusiness Receivables Certificates (CRA), which resulted in the subscription and payment of the total amount of R$1.35 billion, which includes the initial offering of R$1 billion plus a follow-on offering of an additional 35%, in accordance with the rules of the Securities and Exchange Commission of Brazil (CVM), due to heavy investor demand. The Fibria operation is the largest volume of CRAs ever issued in the Brazilian market.

Fibria issued two series of Agribusiness Receivables Certificates: one 4-year series of R$880 million (maturing in 2020) yielding 97% of the overnight rate (CDI); and one 7-year series of R$470 million (maturing in 2023) and yielding IPCA + 5.9844% (NtN-B 2022 – 0.25%). The CRA issue was backed by export credit notes (NCE) owed by the Company.

According to the Chief Financial and Investor Relations Officer, Guilherme Cavalcanti, the book building process registered record demand from investors for the certificates, which reached R$2.4 billion.

“Investor confidence in Fibria, which continues to be rated investment grade with a stable outlook by two of the leading international rating agencies – Fitch and Standard & Poor’s – resulted in heavy demand for our receivables certificates. This operation is the largest CRA issue ever made in the Brazilian market,” said Mr. Cavalcanti.

The issue aims to raise funds for Fibria’s agribusiness activities, as well as for production and sales under the Company’s pulp exportation program.

According to Marcelo Habibe, General Manager – Treasury, the issue cost was lower than the cap rates for both series, since the company issued at 97% of the CDI for four years, for which period the cap rate was 100% of the CDI; and the 7-year series was issued for IPCA + 5.9844%, for which the cap rate was equivalent to NtN-B (Brazilian government bonds) + 0.25% and Fibria closed at NtN-B – 0.25%.

“It was an advantageous operation for Fibria. While we increased the capital raised by 35%, we also managed to reduce the final cost compared to the initially expected rates. We also had a record participation of institutions in the offering that were interested in distributing our CRAs,” said Mr. Habibe.

Fibria’s CRA issue was underwritten by Itaú, Banco do Brasil, Bradesco, Citibank and Banco Votorantim, and was rated brAAA by Standard & Poor’s (S&P).

About Fibria

The world leader in eucalyptus pulp production, Fibria strives to meet the growing global demand for forestry products in a sustainable manner. With production capacity of 5.3 million tons of pulp per year, it has industrial units in Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), as well as in Eunápolis (Bahia), where it operates Veracel in a joint operation with Stora Enso. Fibria has 969,000 hectares of forests, with 568,000 hectares of planted forests, 338,000 hectares of environmental preservation and conservation areas and 63,000 hectares destined for other uses. The pulp manufactured by Fibria is exported to more than 40 countries. In May 2015, Fibria announced the expansion of its Três Lagoas unit, which will receive a new line with annual pulp production capacity of 1.95 million tons and is slated for startup in the fourth quarter of 2017.

With stock listed on the Novo Mercado listing segment of the São Paulo Stock Exchange (BM&FBovespa) and Level 1 ADRs listed on the New York Stock Exchange (NYSE). Fibria has 29.42% of its capital held by Votorantim Industrial S.A., 29.08% held by BNDESPAR and 41.50% represent by its free-float.

A new technology developed by Fibria aims to help reduce water consumption during the irrigation of seedlings after planting. The solution was created at the company’s unit in Aracruz, Espírito Santo, through a partnership between the Technology Center and the Forest Operational Development department. The solution is a protective collar around the seedlings, which involves the application of a mix of pulp waste around the plant. This mix forms a layer of soil protection, reducing temperature and maintaining the humidity in the planting hole.  As a result, less irrigation is required.

This technology was developed based on research started in 2007 and the method for applying the mix was improved in recent years. Field studies have shown that it is possible to eliminate at least one irrigation operation during the driest periods of the year, reducing water consumption by around 6,500 liters/hectare planted. “These results motivated the company to file a patent application for the new technology,” said Fibria’s research coordinator Reginaldo Mafia, one of the authors of the patent.

During dry periods, the irrigation of eucalyptus seedlings is usually carried out in the first 30 days after planting. Besides reducing water consumption, the protective collar reduces mortality and the need to replant seedlings. During the development of the protective collar for seedlings, several tests were carried out in Aracruz and Três Lagoas before arriving at the most appropriate application method in operations.

Fibria’s Operational Development coordinator and one of the inventors of the collar, Edmilson Bitti, explains that after approval of technical feasibility, the technology is currently being implemented in the company’s operations to evaluate the results on a larger scale.

To reduce the need for water, Fibria already uses a polymer hydrogel in planting, which absorbs a large quantity of water and helps keep the soil humid. “The use of the pulp collar is yet another technology fully developed by the company itself to reduce water consumption in planting operations,” said Guilherme Christo, Forestry coordinator at the Aracruz unit.

Record demand from investors resulted in the final issue amount exceeding by 35% the initial offering by the Company, the world’s leading producer of eucalyptus pulp

Fibria, the world’s leading producer of eucalyptus pulp, announced today the closure of the issue of Agribusiness Receivables Certificates (CRA), which resulted in the subscription and payment of the total amount of R$1.35 billion, which includes the initial offering of R$1 billion plus a follow-on offering of an additional 35%, in accordance with the rules of the Securities and Exchange Commission of Brazil (CVM), due to heavy investor demand. The Fibria operation is the largest volume of CRAs ever issued in the Brazilian market.

Fibria issued two series of Agribusiness Receivables Certificates: one 4-year series of R$880 million (maturing in 2020) yielding 97% of the overnight rate (CDI); and one 7-year series of R$470 million (maturing in 2023) and yielding IPCA + 5.9844% (NtN-B 2022 – 0.25%). The CRA issue was backed by export credit notes (NCE) owed by the Company.

According to the Chief Financial and Investor Relations Officer, Guilherme Cavalcanti, the book building process registered record demand from investors for the certificates, which reached R$2.4 billion.

“Investor confidence in Fibria, which continues to be rated investment grade with a stable outlook by two of the leading international rating agencies - Fitch and Standard & Poor's - resulted in heavy demand for our receivables certificates. This operation is the largest CRA issue ever made in the Brazilian market,” said Mr. Cavalcanti.

The issue aims to raise funds for Fibria’s agribusiness activities, as well as for production and sales under the Company’s pulp exportation program.

According to Marcelo Habibe, General Manager - Treasury, the issue cost was lower than the cap rates for both series, since the company issued at 97% of the CDI for four years, for which period the cap rate was 100% of the CDI; and the 7-year series was issued for IPCA + 5.9844%, for which the cap rate was equivalent to NtN-B (Brazilian government bonds) + 0.25% and Fibria closed at NtN-B - 0.25%.

“It was an advantageous operation for Fibria. While we increased the capital raised by 35%, we also managed to reduce the final cost compared to the initially expected rates. We also had a record participation of institutions in the offering that were interested in distributing our CRAs,” said Mr. Habibe.

Fibria’s CRA issue was underwritten by Itaú, Banco do Brasil, Bradesco, Citibank and Banco Votorantim, and was rated brAAA by Standard & Poor's (S&P). 

About Fibria

The world leader in eucalyptus pulp production, Fibria strives to meet the growing global demand for forestry products in a sustainable manner. With production capacity of 5.3 million tons of pulp per year, it has industrial units in Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), as well as in Eunápolis (Bahia), where it operates Veracel in a joint operation with Stora Enso. Fibria has 969,000 hectares of forests, with 568,000 hectares of planted forests, 338,000 hectares of environmental preservation and conservation areas and 63,000 hectares destined for other uses. The pulp manufactured by Fibria is exported to more than 40 countries. In May 2015, Fibria announced the expansion of its Três Lagoas unit, which will receive a new line with annual pulp production capacity of 1.95 million tons and is slated for startup in the fourth quarter of 2017.

With stock listed on the Novo Mercado listing segment of the São Paulo Stock Exchange (BM&FBovespa) and Level 1 ADRs listed on the New York Stock Exchange (NYSE). Fibria has 29.42% of its capital held by Votorantim Industrial S.A., 29.08% held by BNDESPAR and 41.50% represent by its free-float.

New production line at Três Lagoas, Mato Grosso do Sul, should be able to produce 200,000 tons of pulp per year above the initial forecast, for the same investment

Fibria, a Brazilian forestry company and the world's leading eucalyptus pulp producer, announces an increase in the production capacity of its new plant in Três Lagoas, Mato Grosso do Sul, from 1.75 million tons/year to 1.95 million tons/year. This new expansion in the project does not change the total planned investment of R$8.7 billion, equivalent to around US$2.4 billion.

The announcement of the new production capacity comes at a time when the company celebrates one year of the Horizonte 2 Project, 32.5% of which has already been completed.  On May 31^st, Fibria CEO Marcelo Castelli and the governor of Mato Grosso do Sul, Reinaldo Azambuja, announced the increase in production capacity at the company's construction site.

Combining the new line with the plant currently in operation, the Três Lagoas unit will expand its production capacity by 150%, exceeding the total capacity of 3.2 million tons of pulp/year. With this, Fibria's total production capacity, considering all its units in Brazil, will increase from the current 5.3 million tons of pulp/year to 7.25 million tons of pulp/year.

Fibria has been investing in the development of its forest base in the region to supply the new production line. The wood supply required to operate Fibria’s new plant will come from forests grown in Mato Grosso do Sul. A total of 187,000 hectares of forests planted on own, leased and partners’ areas will be used. Including the 120,000 hectares used to supply the current unit, the forest base that will supply the Três Lagoas unit will span 307,000 hectares. The average radius of the forests to the company's two production lines will be less than 100 kilometers, one of the most competitive in the market.

Fibria's Três Lagoas unit follows the most modern concepts in ecodesign, with cleaner and more efficient production processes. In addition, all the energy consumed is generated by the unit itself using biomass in the form of eucalyptus bark and the liquid biomass resulting from the industrial process. With the increase in production capacity, the industrial unit will generate and consume its own energy and will still have a surplus of 130 MWH, which will positively contribute to Brazil's energy grid and benefit the energy matrix by using renewable sources.

"The expansion of production capacity of the Horizonte 2 Project shows that the fundamentals that guided the expansion of our Três Lagoas unit are solid and supported by a financial structure that maximizes gains for Fibria.  We are announcing a bigger capacity without having to invest more. We are proud to see this work in progress, bringing jobs, better quality of life and development to Três Lagoas, Mato Grosso do Sul and Brazil,” said Fibria CEO Marcelo Castelli.

Horizonte 2 Project Financing Structure

In May this year, Fibria signed financing agreements with the Brazilian Development Bank (BNDES), the Midwest Development Fund (FDCO) of the Midwest Development Superintendent’s Office (SUDECO) and the Finnish export credit agency Finnvera. With this, all of the funds required for Fibria's new production line are formally contracted and guaranteed.

The average cost of financing of the Horizonte 2 Project will be around 2.1% per year in U.S. dollar. The financial solution for the project will improve the company's credit quality by reducing the current average interest rate in U.S. dollar from 3.4% to 2.9% and by lengthening the repayment terms.

To obtain the remaining funds required for the project, Fibria will complement the credit lines with the working capital resulting from the agreement signed in 2015 with Klabin for the sale of pulp produced by the PUMA project.

BNDES approved a R$2.3 billion loan for Fibria. The project includes the acquisition of railway cars, locomotives, domestically manufactured machinery and equipment, as well as social investments in the company's areas of influence. As part of project funding, Fibria issued Agribusiness Receivables Certificates (CRA) totaling R$ 675 million in October 2015. With this, the company could benefit from the Fixed Income Market Incentive Program, launched by BNDES in 2015 to stimulate the capital markets in Brazil.

SUDECO granted Fibria a loan of R$ 831.5 million. The company comes under SUDECO’s priority sector category as it belongs to a sector with a long operating history and since the project includes a pulp unit integrated to a reforestation project. It also comes under the priority location category as it is situated in the city of Três Lagoas in Mato Grosso do Sul and is classified in the typology of the Nacional Policy on Regional Development (PNDR), which establishes preference in the disbursement of FDCO funds.

In the international market, Fibria gained access to two financing facilities: a US$400 million syndicated export prepayment facility with an average cost of Libor + 1.43% and average term of 5 years; and a US$400 million facility from the Finnish export credit agency Finnvera, which finances equipment acquisitions in the country.

Commitment to the community

With the Horizonte 2 Project, Fibria reaffirms its commitment to operating in a responsible manner in stimulating the continuous development of surrounding communities. For this, it has also announced the Basic Environmental Program, which will invest another R$ 6.2 million in Três Lagoas to acquire equipment for the municipal departments and in repairs to four municipal schools, a dental clinic and an orthopedic clinic. Other entities such as the Fire Department, the local police, Salesian Center and APAE are also included.

The cities of Brasilândia and Selvíria will receive investments of over R$ 1.9 million to renovate the municipal school and hospital.  The Mato Grosso do Sul government received R$ 34 million through environmental compensation, with investments in the state and in local communities totaling R$ 41.5 million.

During the two years of project execution, 40,000 direct and indirect jobs will be created. At the height of construction, the project will employ around 10,000 workers. When the new pulp line goes operational, it will employ 3,000 direct and indirect workers. During project construction, Fibria will have around 60 suppliers from Três Lagoas, whose contribution will encourage the economic development of the city, thereby improving the quality of life of its people. The project work will also have a positive impact on public finance, with an estimated tax collection of R$ 450 million during the construction.

The Três Lagoas unit expansion project entails another R$ 11.7 million in social investments in partnership with BNDES. Apart from health and education, social investments will go towards projects focused on income generation, including the expansion of the Territorial Rural Development Program (PDRT), which helps surrounding rural communities to develop ways and means for income generation and social inclusion. A total of 43 projects will receive investments, benefiting 43,000 people.

About Fibria

The world leader in eucalyptus pulp production, Fibria strives to meet the growing global demand for forestry products in a sustainable manner. With production capacity of 5.3 million tons of pulp a year, it has industrial units in Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), as well as in Eunápolis (Bahia), where it operates Veracel in a joint operation with Stora Enso. Fibria has 969,000 hectares of forests, with 568,000 hectares of planted forests and 338,000 hectares of environmental preservation and conservation areas. The pulp produced by Fibria is exported to more than 40 countries. In May 2015, Fibria announced the expansion of its Três Lagoas unit, which will receive a new line with annual pulp production capacity of 1.95 million tons and is slated for startup in the fourth quarter of 2017. Learn more at www.fibria.com.br

New package includes electromechanical assembly of interconnections of all process areas at the company’s new pulp production line

Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, has contracted the execution of electromechanical assembly, known as Balance of Plant (BoP), to interconnect all the process areas at the Horizonte 2 Project, which involves expansion of the pulp production line at the Três Lagoas Unit in the state of Mato Grosso do Sul.

In this first stage, the electrical and mechanical assembly will focus on installing pipe racks, which are metal structures used to support pipelines that transport the inputs used in the pulp production process, such as chemicals, water and compressed air, among others, as well as in the manufacture of chimney ducts and water sourcing and wastewater treatment pipes.

The electromechanical assembly will be executed by Imetame Metalmecânica, while Pöyry will be responsible for the engineering and management of the package.

“The BOP is going according to schedule. Starting this phase is essential to meet the goals of the project, which will make Fibria’s Três Lagoas Unit one of the world’s largest pulp plants,” says Maurício Miranda, general manager of engineering at the Horizonte 2 Project.

With an investment of R$8.7 billion, Fibria's expansion project will create 40,000 jobs during construction and 3,000 direct and indirect jobs once the project is completed. The Três Lagoas Unit will have its annual pulp production capacity expanded by 1.75 million tons, which will take its total annual pulp production capacity to 3.05 million tons.

About Fibria

The world leader in eucalyptus pulp production, Fibria strives to meet the growing global demand for forestry products in a sustainable manner. With production capacity of 5.3 million tons of pulp per year, it has industrial units in Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), as well as in Eunápolis (Bahia), where it operates Veracel in a joint operation with Stora Enso. Fibria has 969,000 hectares of forests, with 568,000 hectares of planted forests, 338,000 hectares of environmental preservation and conservation areas and 63,000 hectares destined for other uses. The pulp manufactured by Fibria is exported to more than 40 countries. In May 2015, Fibria announced the expansion of its Três Lagoas unit, which will receive a new line with annual pulp production capacity of 1.75 million tons and is slated for startup in the fourth quarter of 2017.Learn more at www.fibria.com.br

Robots and 3D images are some of the tools to be adopted in the forest industry’s most modern nursery

Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, will build a new nursery at its Três LagoasUnit located in the state of Mato Grosso do Sul. The nursery will feature last-generation technology from the Netherlands for automating the entire eucalyptus seedling production process, in an unprecedented initiative in the industry.

Fibria will be the first pulp company to use robots to plant eucalyptus seedlings. This is the first step of the process, which conventionally is performed manually. Automation helps to prevent losses and to protect the integrity of the seedlings. The new nursery also adopts concepts such as sustainability and reducing waste and environmental impacts by replacing the old plastic containers in seedling trays with more modern materials made from biodegradable paper. The new facilities will have approximately 48,000 m² of greenhouses and have fully automated transportation, handling, selection, irrigation, nutrition and climate‑control processes.

In the second step, when seedlings are selected to be moved to an area optimized for their development, the nursery's new machinery equipped with 3D vision will monitor the evolution of the seedlings and improve cultivation efficiency. The new system will generate statistics on the genetic material and development of each plant, which will assure Fibria greater quality control for the seedlings to be planted in the field.

"We will have a state-of-the-art nursery with extremely high precision in terms of systems and environmental control to ensure higher levels of performance in accordance with Fibria's seedling standards. Better seedlings are the foundation of a better forest," explained Aires Galhardo, Fibria's Chief Forestry Officer.

In addition to optimizing operations inside the nursery, the new technology’s use also brings improvements for workers. "The new method will provide ergonomic benefits for employees. Another new feature is the control of irrigation and climate via the use of automated panels. It’s technology improving the process and quality of life for employees," said Tomás Balistiero, Fibria's Forestry General Manager in Mato Grosso do Sul.

Construction on the new nursery is expected to begin in March 2016, and its startup is slated for March 2017, with annual production capacity of 43 million eucalyptus seedlings. The seedlings will be used for planting and forming the forests that will supply Fibria's Três Lagoas Unit and the Horizonte 2 Project, which is the company's second pulp production line in the city and is slated for startup in the last quarter of 2017.

Partnerships

Fibria's new nursery will be built through the Dutch consortium Hortikey, which develops large-scale automation projects for companies in the international market. The consortium is formed by leading industry companies, such as Agri-tech Aris, Berg Hortimotive, Bosman Van Zaal and Sistemas de Flier, as well as the Brazilian companies Methodo Ferramentaria, which will provide support on local standards, rules and regulations, and Açopema, which will supply the greenhouses.

Construction on the Horizonte 2 Project began in 2015 and is advancing on schedule. With an investment of R$8.7 billion (equivalent to around US$2.2 billion), Fibria's expansion project will create 40,000 jobs during construction and 3,000 direct and indirect jobs. The Três Lagoas Unit will have its annual pulp production capacity expanded by 1.75 million tons. With this expansion, Fibria’s Três Lagoas Unit will have total annual pulp production capacity of 3.05 million tons, making it one of the world’s largest pulp producers.

About Fibria

The world leader in eucalyptus pulp production, Fibria strives to meet the growing global demand for forestry products in a sustainable manner. With production capacity of 5.3 million tons of pulp per year, it has industrial units in Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), as well as in Eunápolis (Bahia), where it operates Veracel in a joint operation with Stora Enso. Fibria has 969,000 hectares of forests, with 568,000 hectares of planted forests, 338,000 hectares of environmental preservation and conservation areas and 63,000 hectares destined for other uses. The pulp manufactured by Fibria is exported to more than 40 countries. In May 2015, Fibria announced the expansion of its Três Lagoas unit, which will receive a new line with annual pulp production capacity of 1.75 million tons and is slated for startup in the fourth quarter of 2017. Further information: www.fibria.com.br/en/

Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, reported net revenue of R$10.1 billion in 2015, which advanced 42% on 2014 to set a new record for a 12-month period. In the fourth quarter of 2015, net revenue came to R$3 billion, advancing 7% on the prior quarter.

• Net revenue advances 42% in the year to R$10.1 billion, setting a new record for a 12-month period
• EBITDA comes to R$5.3 billion in the year, up 91%, with EBITDA margin of 53%, also the company's highest ever for a 12-month period
• Free cash flow in the year sets a new record at R$2.9 billion
• Net income amounts to R$357 million, the majority of which will be distributed as dividends
• Leverage measured by the ratio of net debt to EBITDA in U.S. dollar ends the year at 1.78 times, below the limit set by the company’s financial policy

Another record for a 12-month period, adjusted EBITDA (earnings before, interest, taxes, depreciation and amortization) amounted to R$5.3 billion, increasing 91% from 2014. In the fourth quarter, adjusted EBITDA was R$1.6 billion, increasing 5% on the prior quarter. EBITDA margin in 2015 stood at 53%, also setting a new record for the company’s economic performance.

Another highlight in the company’s results was the robust growth of 351% in free cash generation in 2015 to a record R$2.9 billion, with this figure excluding the dividend distributions, the investment (capital expenditure) in the Horizonte 2 Project to expand capacity at the Três Lagoas Unit in Mato Grosso do Sul and the land acquisitions made at the end of the year. Of this amount, R$866 million was generated in the last quarter of the year.

“The year 2015 represents a new phase in our history, with important strategic decisions taken that will take us to a new level of competitiveness and boost our operating capacity. With the Horizonte 2 Project, which is advancing on schedule, we will further expand our global leadership in the pulp industry,” said Fibria CEO Marcelo Castelli.

In 2015, Fibria reported net income of R$357 million, mainly owing to its strong operating performance and despite this figure being partially offset by the noncash impact from exchange variation on its financial result, which was not a factor in periods of stability in the local currency. Fibria's management proposed the distribution of 87% of net income in 2015 as dividends to shareholders, which amounts to R$300 million, with the proposal to be submitted to the next Shareholders’ Meeting that will be held in April.

The proposed distribution of R$300 million in dividends, which includes R$218.7 million in additional dividends over the mandatory minimum of R$81.3 million, is based on the dividend policy launched in 2015, which calls for the possible payment of additional remuneration to shareholders throughout the year if cash generation exceeds the projected scenarios, always observing the Debt and Liquidity policies and its commitment to maintaining an investment grade credit rating.

Fibria ended 2015 with net debt in U.S. dollar of US$2.8 billion. Leverage measured by the ratio of net debt to EBITDA in U.S. dollar ended the period at 1.78 times, which is below the limit set by the company’s Financial Policy   

Highlights of the Year
In May 2015, Fibria announced the Horizonte 2 Project, which will expand production capacity at its Três Lagoas Unit located in the state of Mato Grosso do Sul. Total investment in the project is R$8.7 billion, which corresponds to US$2.2 billion, with the financing structure already resolved. Fibria's new pulp production line at the Três Lagoas Unit, whose cornerstone was laid on Oct. 30 last year, will expand its production capacity to more than 7 million tons and boost its competitiveness in the global market.
Also in May, Fibria signed a commercial agreement with Klabin for the sale of all production of hardwood pulp from its unit under construction in Ortigueira, Paraná (Puma Project), which will be exported to countries outside of South America.
"With last year's consistent free cash flow, we were able to launch the Horizonte 2 Project and to pay R$2 billion in interim dividends in December without compromising our credit quality, which was recently confirmed by our investment grade ratings and stable outlooks at the three main rating agencies in the middle of an adverse scenario in Brazil's economy," said Guilherme Cavalcanti, Fibria's chief financial and investor relations officer.

For the seventh straight year, Fibria was selected as a component of the Corporate Sustainability Index (ISE) of the São Paulo Stock Exchange (BM&FBovespa) and once again was included in the Dow Jones Sustainability Emerging Markets Index (DJSI Emerging Markets) of the New York Stock Exchange (NYSE). In2015, Fibria was a recipient of the Sustainable Standard-Setter Award from the non-governmental organization Rainforest Alliance.

About Fibria
The world leader in eucalyptus pulp production, Fibria strives to meet the growing global demand for forestry products in a sustainable manner. With production capacity of 5.3 million tons of pulp per year, it has industrial units in Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), as well as in Eunápolis (Bahia), where it operates Veracel in a joint operation with Stora Enso. Fibria has 969,000 hectares of forests, with 568,000 hectares of planted forests, 338,000 hectares of environmental preservation and conservation areas and 63,000 hectares destined for other uses. The pulp manufactured by Fibria is exported to more than 40 countries. In May 2015, Fibria announced the expansion of its Três Lagoas unit, which will receive a new line with annual pulp production capacity of 1.75 million tons and is slated for startup in the fourth quarter of 2017.
With stock listed on the Novo Mercado listing segment of the São Paulo Stock Exchange (BM&FBovespa) and Level 1 ADRs listed on the New York Stock Exchange (NYSE). Fibria has 29.42% of its capital held by Votorantim Industrial S.A., 29.08% held by BNDESPAR and 41.50% represent by its free-float.

For the seventh consecutive year, Fibria was selected as a component of the Corporate Sustainability Index (ISE) of the BM&FBovespa, which reflects its firm commitment to practices that balance financial performance, sustainability and corporate governance. Fibria was included in the ISE portfolio for 2016, which will be valid from January 4 to December 29, 2016.

Developed in partnership with the Center for Sustainability Studies (GVces) of the Getúlio Vargas Foundation (FGV), the ISE is formed by the 35 best companies from a corporate sustainability standpoint and assesses how effectively they balance economic growth, social responsibility and environmental performance. According to the BM&FBovespa, the new portfolio is formed by corporations from 16 industries with combined market capitalization of R$960.52 billion, which corresponds to 44.75% of the total market capitalization of companies with stock listed on the exchange at the close of trading on Nov. 24, 2015.

“For Fibria, sustainability is a business principle and we are very satisfied to have been selected as an ISE component stock for the seventh straight year. It represents the market's recognition of Fibria's good practices in finance, governance and sustainability. It also shows that we remain firmly on the path of developing our forestry business responsibly, while generating "admired profit" and sharing value with society,” said Guilherme Cavalcanti, Fibria's Chief Financial and Investor Relations Officer.

In addition to the ISE, Fibria was also selected as a component stock for 2015-2016 of the Dow Jones Sustainability™ Emerging Markets Index, which is a global reference in sustainability stock indexes.

“Fibria's commitment to using natural resources efficiently and social engagement is intrinsically linked to its strategy, which was born from the mission to develop the forestry business as a sustainable source of life and to create value in a way that is responsible, shared and inclusive,” said Maria Luiza de Oliveira Pinto e Paiva, director of Sustainability, Communication and Corporate Affairs at Fibria.

This year, Fibria also received the Sustainable Standard-Setter Award from the Rainforest Alliance, an independent non-governmental organization that defends a global system for forestry product certification and works to conserve biodiversity, ensure sustainable means of subsistence and transform land-use practices.

About Fibria

The 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. Fibria has 967,000 hectares of forests, with 563,000 hectares of planted forests and 343,000 hectares of environmental preservation and conservation areas. The pulp manufactured by Fibria is exported to more than 40 countries. In May 2015, Fibria announced the expansion of its Três Lagoas unit, which will receive a new line with the capacity to produce 1.75 million tons of pulp per year.

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

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 5^th 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