1Q11 Results

1Q11 Results

1Q11 Results
Sale of Conpacel and KSR drove decline of Net Debt/EBITDA to 2.9x in 1Q11. 1Q11 vs. 1Q11 vs. Last 12
Key Indicators 1Q11 4Q10 1Q10 4Q10 -1% 0% 9% 19% -1% 0% 0 p.p. -67% -45% 140% -15% 4% -19% -6% -0.7 -20% 1Q10 4% -2% -1% 30% 2% 2% 0 p.p. 4317% -24% -14% -27% -2% -2.7 54% Months 5,106 4,887 115 129 6,320 2,536 40% (16) (251) 983 10,256 2,297 7,959 2,736 2.9 1,084 Pulp Production ('000 t) Pulp Sales ('000 t) Paper Production ('000 t) Paper Sales ('000 t) Net Revenues (R$ million) Pro forma EBITDA (R$ million) (1) (2) EBITDA margin (%) Net Financial Result (R$ million) (3) Income Taxes Net Income (R$ million) Gross Debt (R$ million) Cash Position (R$ million) (4) Net Debt (R$ million) Adjusted EBITDA (R$ million) (2) Net Debt/EBITDA LTM (x) (5) Capex (R$ million) 1,319 1,259 29 36 1,548 607 39% 11 (32) 389 10,256 2,297 7,959 624 2.9 266 1,330 1,254 26 30 1,563 606 39% 35 (58) 162 12,022 2,205 9,816 665 3.6 332 1,267 1,281 29 28 1,511 597 39% (337) 132 9 13,540 2,684 10,856 637 5.6 173

(1) Excludes Conpacel and KSR results for the quarters under analysis (Refer to page 18). (2) Adjusted by non-recurring and non-cash items. (3) Includes results from financial investments, monetary and exchange variation, mark-to-market of derivatives and interest. (4) Includes the fair value of derivatives. (5) The calculation considers the adjusted EBITDA of the last 12 months, including Conpacel and KSR results.

Information as of 4/29/2011: Market value R$11.6 billion US$7.6 billion Quotes FIBR3: R$24.70 FBR: US$16.15 Outstanding shares: 467,934,646 common shares Conference Call Date: May 2, 2011 10 A.M. (US-ET) Portuguese 11 A.M. (US-ET) English Replay: May 2 to 10, 2011 +1 (412) 317-6776 Code: Fibria Webcast: www.fibria.com.br/ir IR Contact: Joo Elek CFO and IRO Andr Gonalves

Highlights of the Quarter

Information regarding Conpacel and KSR operations was reclassified in the Balance Sheet, Income Statement and Statement of Cash Flows under the "Discontinued Operations" line, in compliance with IFRS. For a better understanding of the results after the sale of these assets, the analysis elaborated in this document excludes them, except when otherwise indicated. Net debt totaled R$ 7,959 million, a reduction of 19% quarter-on-quarter and 27% year-on-year. Net debt was 2.9x the last twelve months EBITDA (4Q10: 3.6x and 1Q10: 5.6x). Conclusion of the sale of Conpacel and KSR to Suzano Papel e Celulose. Issue of the US$750 million Fibria 2021 Eurobond with a 6.75% p.a. coupon. Pulp production reached 1.3 million tons, stable quarter-on-quarter but up 4% year-on-year. Pulp sales of 1.3 million tons, stable in comparison with the pulp sales volume in 4Q10 but declining 2% as compared with 1Q10. Cash cost of pulp production of R$446/t in 1Q11, a 5% increase quarter-on-quarter and 8% yearon-year. When compared to the average in 2010, cash cost was down 1%. EBITDA of R$607 million, stable quarter-on-quarter and 2% over 1Q10. EBITDA Margin of 39%, stable quarter-on-quarter and year-on-year. Net income of R$389 million (4Q10: R$162 million and 1Q10: R$9 million). Marcelo Castelli, currently Director of Forestry, Paper, Strategy and Supplies, has been appointed for the Chief Executive Officer position, effective on July 1st, 2011.

Subsequent Events
Distribution of dividends in the amount of R$264 million approved. US$30/t increase in the pulp list prices for all regions, effective as of April 2011.

IR General Manager Anna Laura L. Rondon Fernanda Naveiro Vaz Roberto P. Costa (55 11) 2138-4565 [email protected]

The operating and financial information of Fibria Celulose S.A. for the first quarter of 2011 (1Q11) is presented in this document on a consolidated basis and expressed in Brazilian Reais (R$), unaudited and elaborated in accordance with the requirements of Brazilian Corporate Law. The results of Veracel Celulose S.A. are proportionally consolidated (50%) in this press release, thereby eliminating the effects of all inter-company transactions.

1Q11 Results

Contents
Executive Summary ....................................................................................... 04 Pulp Market ................................................................................................... 06 Production and Sales Pulp and Paper ......................................................... 08 Results Analysis ............................................................................................. 09 Financial Result ............................................................................................. 11 Net Income .................................................................................................... 13 Debt ............................................................................................................... 13 CAPEX........................................................................................................... 15 Capital Markets .............................................................................................. 16 Dividends ....................................................................................................... 16 Corporate Governance................................................................................... 16 Appendix I ...................................................................................................... 18 Appendix II ..................................................................................................... 19 Appendix III .................................................................................................... 20 Appendix IV.................................................................................................... 21 Appendix V .................................................................................................... 22

1Q11 Results

Executive Summary
Information regarding Conpacel and KSR operations were reclassified in the Balance Sheet, Income Statement and Statement of Cash Flows under the "Discontinued Operations" line, in compliance with IFRS. For a better understanding of the results after the sale of these assets, the analysis elaborated in this document excludes them, except when otherwise indicated. The first quarter of 2011 strengthened the consistency of market pulp industry supply and demand fundamentals. Recovering Asian demand for market pulp, the spread between soft and hardwood pulp prices and the dollars depreciation allowed Fibria to announce, in midMarch, a US$30/t list price increase for all regions, effective as of April. In this context, the pulp list price increased to US$880/t for Europe, US$930/t for North America and US$780/t for Asia. Pulp production in 1Q11 declined 1% as compared to 4Q10 to 1,319 thousand t, chiefly due to the fewer production days in this quarter (28 days in February). Year-on-year, the 4% increase is primarily due to increasing operating efficiency. Pulp sales totaled 1,259 thousand tons in 1Q11, stable quarter-on-quarter but down 2% year-on-year due to the reduced shipments to North America, partially offset by increased European demand. The 5% quarter-on-quarter increase is due to the higher wood and maintenance costs, which in turn are due to an increased forest-to-mill distance and the stoppage of the Jacare Unit digestor. Even considering these effects related to the 1Q11 operations, cash cost remained within the Companys expectations, given the operating excellence and synergy gains, reducing the cost pressures of most commodities. Compared to the same period of the previous year, cash cost grew 8%, also as a result of increased costs with wood transportation (average forest-to-mill distance) and third party wood. The pulp cash cost of production in 1Q11 was R$446/t, a 1% decrease compared to the average in 2010. The Company maintained its initiatives aiming at minimizing the cost inflation such as: (i) modernization of Aracruz Units pulpline A bleaching operation, which will contribute to reduce the specific consumption of chemicals, energy, water and effluents; and (ii) and the Jacare Units project to use solid waste as a means of increasing recycling of these wastes and therefore increase generation of renewable energy and reduce the fossil fuel consumption at the Unit. Pro forma EBITDA, which excludes the Conpacel and KSR results, totaled R$607 million in 1Q11 (margin of 39%), stable quarter-on-quarter. Year-on-year, the 2% increase is

1Q11 Results
explained by the increase in the average net pulp price in reais. EBITDA margin for the three periods analyzed was stable at 39%. Net financial income was R$11 million positive, compared to the R$35 million in 4Q10, chiefly due to variations in marked-to-market derivatives as result of the reduced volume of Non-deliverable forward (NDF) operations (1Q11: US$499 million and 4Q10: US$737 million). Compared to the negative R$337 million posted in 1Q10, the change is mainly explained as a result of foreign exchange variation in that quarter, when the dollar appreciated 2.3% against the real, and this rate was applicable to a higher debt.

At the end of March, debt grossed R$10,256 million, down 15% or R$1,766 million quarteron-quarter, as the proceeds from the sale of the Conpacel and KSR assets were in their majority allocated to debt reduction. Year-on-year, the 24% (R$3.284 million) decline was mainly a result of the amortization of the Aracruz derivatives debt and the effect of the dollars depreciation. The Companys cash position, including the fair value of derivatives, totaled R$2,297 million, 69% of which was invested in domestic currency in fixed-income and public bonds. Net debt totaled R$7,959 million, falling R$1,857 million or 19% quarteron-quarter and R$2,897 million or 27% year-on-year. These effects drove another reduction of the companys leverage, which reached 2.9x in 1Q11. The chart below shows the evolution of net debt/EBITDA:

Net Debt / EBITDA (x)*

5.6 4.7 3.9 3.6 2.9

1Q10

2Q10

3Q10

4Q10

1Q11

*The calculation considers the adjusted EBITDA of the last 12 months, including Conpacel and KSR results.

Fibria significantly improved its debt profile through initiatives focusing primarily on extending average maturities and reducing the total gross debt balance. These initiatives include the early settlement of loans in the amount of US$1.4 billion relative to export pre-payment lines with an amortization schedule distributed over the period from 2012 and 2018. These facilities were settled with funds raised with the Fibria 2021 notes in the amount of US$750 million, paying a 6.75% p.a. coupon, and the proceeds from the sale of Conpacel and KSR in the amount of R$1.5 billion. As a result, the average maturity of bank debt was extended to 79 months in 1Q11 from 74 months in 4Q10 and short term debt was reduced from 17% of the total in the previous quarter to 12%. The cash balance represented 1.9x short-term debt in 1Q11, compared to 1.1x in the previous quarter.

1Q11 Results
At net present value (NPV), the synergies captured totaled R$2.7 billion or 117% of the estimate for the end of 2010. The initiatives to reach our 2011 target continue to be implemented. Accumulated synergy gains since the start of the project through the first quarter of 2011 total approximately R$3.1 billion at NPV, compared to our goal of R$3.4 billion at NPV for the end of 2011. The 1Q11 was marked by advances in the expansion of the forest base for the Trs Lagoas II project. We are moving forward in land negotiations and have concluded leases for approximately 70 thousand hectares of effective planted area. We began the planting cycle on these new lands which, together with the 30 thousand hectare surplus at the Trs Lagoas Unit and the purchase of wood, will guarantee more than half of the 150 thousand hectares necessary for the project.

Pulp Market
World Printing & Writing (P&W) demand posted the fourth consecutive month of growth. The increase up to the end of February was 1.3% over the same period of 2010. Coated Woodfree and Uncoated Woodfree grades that consume chemical market pulp continue their pattern of growth. By the end of February, Coated Woodfree had improved by 5.2% while Uncoated Woodfree grew by 1%. Price increases (US$ 40/t on average) have been announced by all major P&W producers for April, as result of cost pressure and an expectation of higher demand in the second half of 2011. Global tissue demand is expected to have closed 2010 with a growth of 3.4%.

P&W World Demand by Grade

% growth & 000 tons 2M11 vs. 2M10

Coated Mechanical : -0.5% Coated Woodfree : 5.2% Uncoated Woodfree : 1.0% Uncoated Mechanical : -3.2% -100 -50 0 50 100 150 200 250

Source: PPPC

Global market pulp demand usually begins the year at a slow pace, but by the end of the 1Q11 there had been an increase of 6.1% when compared to the 1Q10. On a monthly basis market pulp demand in March reached the level of 4.0 million tons, setting the all-time record. In 2011, market developments have been different for hardwood and softwood. After the all-time high shipments in December, eucalyptus demand has continued to grow, but at a slower rate, registering 1.3% by the end of March when compared to the 1Q10. On the softwood side, demand has increased significantly with China being 73% above the 1Q10

1Q11 Results
level. Part of this growth of softwood demand in the region is explained by the increase in production of modified wood dissolving pulp (MWDP) which is being used to substitute the lack of cotton in the region to produce fabrics.
World Chemical Market Pulp Shipments ('000 tons)
4.200 4.000 3.800 3.600 3.400 3.200 3.000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: PPPC

2010

2011

World market pulp producers inventories continue to be within the normal range, having closed March at 32 days of supply. Breaking down this number softwood inventories closed at 24 days while hardwood stood at 40 days of supply. On the consumer side this figure continues to be below the normal range at 20 days of supply. Maintenance downtime will reach its peak in the second quarter of 2011. It is forecast that 1.5 million tons of market pulp production will be taken out of the market (of which half of the volume is hardwood, half softwood), compared to 900 thousand tons in the first quarter. Maintenance downtimes at Fibrias units are scheduled to occur during the months of April to August.
2011 Global Maintenance Downtime - Jan to Sep/2011
800

600
000 tons

400

200

0 Jan Feb Mar Apr Softwood May Jun Jul Aug Sep

Hardwood

Source: VVM

The exchange rate impact will continue to shape the market pulp sector, as the devaluation of the dollar against major producers currencies persist, resulting in proportionally increased costs.

1Q11 Results
Supply and demand ratio for market pulp is expected to maintain its balance or even become tighter through the second quarter of 2011 as pulp demand increases along with maintenance downtime.

Production and Sales Pulp and Paper

Production ('000 t) Pulp Paper Sales Volume (000 t) Domestic Market Pulp Export Market Pulp Total Pulp Domestic Market Paper Export Market Paper Total Paper Total 116 1,143 1,259 31 5 36 1,295 101 1,153 1,254 28 2 30 1,284 108 1,173 1,281 26 2 28 1,309 15% -1% 0% 12% 124% 19% 1% 7% -3% -2% 18% 172% 27% -1% 432 4,455 4,887 116 13 129 5,016 1Q11 1,319 29 4Q10 1,330 26 1Q10 1,267 29 1Q11 vs. 4Q10 -1% 9% 1Q11 vs. 1Q10 4% -1% Last 12 Months 5,106 115

Fibrias pulp production reached 1,319 thousand tons in 1Q11, compared to 1,330 thousand in 4Q10 and 1,267 thousand in 1Q10. The 1% quarter-on-quarter decline was mainly due to the fewer production days in this quarter (28 days in February). Year-on-year, the 4% increase in production reflects operating efficiency. Pulp inventories totaled 794 thousand tons (52 days), up 7% from the 739 thousand tons (48 days) in 4Q10.

Fibria sold a total 1,259 thousand tons of pulp in 1Q11, stable over the 4Q10 volume despite the seasonality of the period. The 2% year-on-year decline reflects the reduced sales to North America, partially offset by increased European demand. Pulp exports represented 91% of the sales volume in the quarter, with the greatest demand coming from Europe, which accounted for 46% of the total. In the paper segment, 1Q11 production totaled 29 thousand tons, up 9% quarter-on-quarter while stable year-on-year. Sales of 36 thousand tons in the quarter were 19% greater than in 4Q10, chiefly due to the sale of Conpacels paper inventories. Year-on-year, sales were up 27%, also as a result of Conpacel inventories and due to the good performance of thermal papers sales driven by growth in lottery operations and the increase in the number of invoices issued in function of the Governmental Invoice Program.

1Q11 Results
Results Analysis
Net Revenues (R$ million) Domestic Market Pulp Export Market Pulp Total Pulp Domestic Market Paper Export Market Paper Total Paper Total Income ASAPIR* + Portocel Total 1Q11 118 1,296 1,414 107 11 118 1,532 16 1,548 4Q10 106 1,330 1,436 107 6 113 1,549 15 1,564 1Q10 91 1,304 1,395 99 3 102 1,497 14 1,511 1Q11 vs. 4Q10 12% -3% -1% 0% 74% 5% -1% 5% -1% 1Q11 vs. 1Q10 29% -1% 1% 8% 247% 15% 2% 12% 2% Last 12 Months 440 5,357 5,796 434 30 464 6,260 59 6,320

*Asapir was established as part of the net equity received from the company Ripasa SA Celulose e Papel on August 31, 2008, aimed at enabling the implementation of the Consortium Paulista de Papel e Celulose - Conpacel and was sold together with the Conpacel assets.

Fibrias net operating revenues totaled R$1,548 million in 1Q11, 1% less than in 4Q10 and up 2% over 1Q10. Net revenue from pulp totaled R$1,414 million in 1Q11, down 2% compared to the R$1,436 million in 4Q10 due to the effect of the lower average net price in reais. Year-on-year, net revenue from pulp was up 1%. Despite the 12% year-on-year increase in the average net price in dollars, the dollar depreciated 8% against the real in the period. Thus, the net effect on price was a 3% increase, which was partially offset by the 2% decrease in sales volumes in the period. Net revenues from paper grew 5% and 15% quarter-on-quarter and year-on-year, respectively, due to the increased sales volume as a result of the sale of Conpacels paper inventories. The cost of goods sold (COGS) of R$1,227 million was 2% less than in 4Q10, mainly as a result of the reduced cash cost in previous quarter that impacted COGS in this quarter. Year-on-year, COGS increased 9% explained by the increase in the cash cost as described below. The pulp cash cost of production in 1Q11 was R$446/t. The 5% quarter-on-quarter increase is due to the higher wood and maintenance costs, which in turn are due to an increased forest-to-mill distance and the stoppage of the Jacare Unit digestor. Even considering these effects related to the 1Q11 operations, cash cost remained within the Companys expectations, given the operating excellence and synergy gains, reducing the cost pressures of most commodities. Compared to the same period of the previous year, cash cost grew 8%, also as a result of increased costs with wood transportation (average forest-to-mill distance) and third party wood. The 1Q11 cash cost posted a 1% decrease compared to the average in 2010. The following table shows the evolution of the cash cost of production and the explanations for the main variations in the quarter and year:
1Q10 4Q10 1Q11
Cash Cost (R$/t)

413

425

446

1Q11 Results
Cash Cost 4Q10 Wood cost (higher average forest-mill distance) Higher maintanance expenses Higher cost of raw materials Improved outcome with utilities Others 1Q11 Cash Cost 1Q10 Wood cost (higher average forest-mill distance and wood from third parties) Higher cost of raw materials Higher maintanance expenses Lower wood specific consumption Improved outcome with utilities Exchange rate Others 1Q11 R$/t 425 11 7 3 (1) 1 446 R$/t 413 28 16 9 (9) (8) (6) 3 446

1Q10 Production Cash Cost

1Q11 Production Cash Cost

Personnel 6% Maintenance 10% Other Variable 2% Packaging 2% Fuel 10%

Other Fixed 5%

Wood 43%

Other Fixed Personnel 4% 6% Maintenance 11% Other Variable 1% Packaging 1% Fuel 9%

Wood 46%

Chemicals 22% Variable Costs Fixed Costs

Chemicals 22%

Sales expenses totaled R$65 million in 1Q11, up 4% quarter-on-quarter primarily as a result of re-pricing of port services and increased storage costs. Year-on-year, the 5% increase is primarily due greater fixed costs and the re-pricing of port services. Administrative expenses totaled R$75 million, falling 10% quarter-on-quarter, mainly as a result of reduced expenditures with third party services and reduced impact of labor and tax contingencies. When compared to the 1Q10 the R$5 million or 8% increase is explained by expenses related to salary and charge readjustments and sustainability projects. Other operating expenses totaled a R$13 million expense, compared to an expense of R$27 million in the previous quarter (R$14 million reduction), due to a higher income related to asset sale and the revaluation of forests (biological assets CPC 29), occurred in the previous quarter. In relation to the same period of the previous year, the R$31 million

10

1Q11 Results
reduction in expenses was also due to the asset sale and the effect of standardization of criteria in 1Q10. Pro-forma EBITDA totaled R$607 million in 1Q11 with a margin of 39%, stable quarter-onquarter. Year-on-year, the 2% increase is explained by the increase in the average net pulp price in reais. EBITDA margin for the three periods analyzed was stable at 39%.
1Q10 4Q10 1Q11

Pro forma EBITDA (R$ million) and pro forma EBITDA Margin (%)
39% 39% 39%

597

606

607

40 35 30 25 20 15 10 5 0

1Q11 x 4Q10 pro forma EBITDA (R$ million)

357 606 52 658 (2) (15) 3 (3) 8 14 (52)

968

607 (361)

Pro forma Non-recurring EBITDA 4Q10 EBITDA 4Q10 effects / noncash

Volume

Price (US$)

COGS

S&M

G&A and other

Other operating expenses

Discontinued operations

Asset sale EBITDA 1Q11 Non-recurring Pro forma income effects / non- EBITDA 1Q11 cash

Financial Result
(R$ million) Financial Income Interest on financial investments Derivatives* Financial Expenses Interest - loans and financing (local currency) Interest - loans and financing (foreign currency) Monetary and Exchange Variations Foreign Exchange Variations - Debt Foreign Exchange Variations - Cash Other Financial Income / Expenses Net Financial Result
*Marked to market and adjustments received/paid

1Q11 115 47 68 (171) (46) (125) 150 181 (31) (83) 11

4Q10 151 51 100 (169) (46) (123) 162 142 20 (109) 35

1Q10 38 50 (12) (181) (55) (126) (187) (242) 55 (7) (337)

1Q11 vs. 4Q10 -24% -8% -32% 1% 0% 2% -7% 27% -23% -69%

1Q11 vs. 1Q10 203% -6% -6% -16% -1% -

Financial income was R$115 million, with R$47 million derived from investments and R$68 million from derivatives. The R$36 million quarter-on-quarter reduction was mainly due to the lower volume of NDF operations contracted (1Q11: US$499 million and 4Q10: US$737 million). The year-on-year increase is explained by the dollars depreciation against the real and the increase in the notional value of NDFs operations contracted. Financial expenses from servicing the debt totaled R$171 million in 1Q11, stable as compared to 4Q10. The R$10 million year-on-year decline is due to the effects of the liability management plan in which the company settled or prepaid operations with higher coupons and contracted new operations with more attractive costs. Financial revenue from foreign exchange variations on dollar-denominated debt was R$181 million as a result of the dollar's 2.3% depreciation against the real in the period, compared to revenue of R$142 million in 4Q10 with the dollars 1.7% depreciation against the real. The

11

1Q11 Results
year-on-year variation is due to the dollars 2.3% appreciation against the real in the period, which was applicable over a higher debt amount and, therefore, resulted in an expense of R$242 million. Other financial expenses totaled R$83 million, down 23% million over 4Q10, primarily as a result of the reduced impact of interest due to the settlement of the remaining debt with former Aracruz shareholders. Year-on-year, the variation is explained by the reversal of the R$73 million in monetary restatement of the provision for contingencies relative to applicable CSLL in 1Q10.

Derivatives
Fibria's Market Risk Management Policy allows the Company to use derivatives to protect the dollar-denominated cash flow and its debt from variations in applicable interest rates. Currently, the derivatives contracted by Fibria are exclusively for hedging and are conventional, without leverage or margin calls, duly registered at CETIP (Custodian and Clearinghouse), with cash adjustments recognized only upon their respective maturities. The marked-to-market financial derivatives position on March 31, 2011 was R$152 million, as opposed to R$133 million on December 31, 2010, an increase of R$ 19 million. The cash effect of the operations in the quarter was R$ 49 million. Thus, the sum of these figures amount to R$ 68 million on the financial result. The table below shows the derivatives open position at the end of 1Q11.
Notional amount in million Swap contracts Assets position JPY Fixed Rate (JPY to USD)* USD Libor (Libor to Fixed) BRL Fixed Rate (BRL to USD) BRL TJLP (BRL to USD) Total (a) Liabilities position USD Fixed Rate (JPY to USD)* USD Fixed Rate (Libor to Fixed) USD Fixed Rate (BRL to USD) USD Fixed Rate (BRL to USD) Total (b) Net (a+b) Forward Contract Sold Position NDF (USD) Total: Forward contract (c) Options Risk Reversal (USD) Total: Options (d) Net (a+b+c+d)
* Exchange rate JPY x BRL 1Q2011: R$0,01961, 4Q10: R$0,0205

Fair Value 1Q11 4Q10

1Q11 Maturity by Jan-14 Jul-14 Sep-18 Jun-17 $ R$ R$ 4,755 416

4Q10

4,755 317 422 -

R$ R$ R$ R$ R$

106 473 491 428 1,498

R$ R$ R$ R$

112 509 485 -

300 $ R$ 462 R$

R$ 1,106

Jan-14 Jul-14 Sep-18 Jun-17

$ $ $ $

45

45 R$ 317 247 R$ R$ R$

(89) R$ (485) R$ (430) R$ (422) R$

(95) (524) (445) -

300 $ 243 $ 276 $

R$ (1,427) R$ (1,064) R$ 71 R$ 42

Feb-12

499 $

737 R$ R$

79 79

R$ R$

91 91

Feb-12

45

R$ R$ R$

R$

133

2 R$ 152 R$

12

1Q11 Results
In line with its strategy for protecting its cash flow, along with the NDF dollar sale operations, the Company also carried out a Zero Cost Collar Exporter, a financial instrument that consist of the simultaneous combination of call and put dollar options with the same notional value and maturity, without any leverage or payment of premiums. The option contracts are in line with the same strategy of NDF operations, aiming at protecting the Companys 12-month cash flow to minimize the effects of the reals appreciation against the dollar.

Net Income
The 1Q11 net income of R$389 million was 140% greater than the 4Q10 result of R$162 million, chiefly due to the capital gains from the sale of Conpacel and KSR. Year-on-year, net income was up R$380 million, also as a result of the sale of these assets, as well as the negative financial result of R$337 million in 1Q10 due to the real's 2.3% depreciation against the dollar in that quarter. The chart below shows the main factors that influenced net income in 1Q11, starting with EBITDA in the period.
Net income (R$ million)

181 361 968

68 (31) (171) 47 (83)

607 (434) (124) (32) 389

Pro f orma Non-recurring EBITDA 1Q11 effects/noncash

EBITDA

Foreign Exchange Variation on Debt

Derivatives

Other Foreign Exchange Variation

Interest on loans

Income on financial instruments

Other financial income / expenses

Other (*)

Income tax discontinued operations

Income tax expense

1Q11 Net income

(*) The sum of Depreciation, Amortization, Depletion and Other

Debt
Gross Debt (R$ million) Total Gross Debt Gross Debt in R$ Gros Debt in US$ (2) Average maturity (months) % short-term portion Total Cash Net Debt Net Debt / EBITDA (x) (4)
(1) (2) (3) (4)

1Q11 10,256 2,291 7,965 79 12% 2,297 7,959 2.9

4Q10 12,022 3,158 8,865 74 17% 2,205 9,816 3.6

1Q10 13,540 5,111 8,429 62 23% 2,684 10,856 5.6

(1)

(3)

Includes BNDES index Does not include debt to the former shareholders of Aracruz Includes the derivatives fair value The calculation considers the adjusted EBITDA of the last 12 months, including Conpacel and KSR results

13

1Q11 Results
On March 31, 2011, debt grossed R$10,256 million, down R$1,766 million or 15% quarteron-quarter as the proceeds from the sale of the Conpacel and KSR assets were in their majority allocated to debt reduction, in addition to the dollars depreciation against the real. Year-on-year, this decline was R$3,284 million or 24% as a result of amortization of the debt with former Aracruz shareholders, in addition to the abovementioned asset sale and depreciation of the dollar.
78% 22%

Gross debt by currency

The total gross debt pegged to the dollar was 78% by the end of March. Out of the portion of net debt indexed to domestic currency, approximately R$630 million was related to the remaining balance of the debt with former Aracruz shareholders, which will be settled on July 1, 2011. The cash position on March 31, including the fair value of derivatives, was R$2,297 million. Thus, on March 31, 2011, net debt totaled R$7,959 million, down 19% and 27% quarter-on-quarter and year-on-year, respectively.
5% 6%
Local Currency Foreign Currency

Gross debt by type

6%

21%

The average cost of bank debt in local currency in 1Q11 was 8.9% p.a. and the cost in dollars was 6.3% p.a. considering the Libor forward curve in the period. The chart below shows the debt-related transactions in the quarter:
Pre-Payment Bo nd Fo rmer Aracruz Shareholders Others

17%

45%

Gross Debt - Dec/10 x Mar/11 (R$ million)

BNDES NCE

1,636

Gross debt by index

12,022
2% 7% 1%

171 (3,432) (181)

40

10,256

20%

Gross Debt Dec/10

Financing

Principal/Interest Accrual of interest Foreign Exchange payments Variation

Others

Gross Debt Mar/11

70%
CDI Pre fixed UMBNDES Libor TJLP

Of the total R$1,636 million raised in the period, we highlight: - Issue of the 10-year, US$750 million Fibria 2021 Eurobond with a 6.75% p.a. coupon; and - Advance Against Exchange (AAE) facilities in the amount of US$150 million, maturing in 2012 with a 2.09% p.a. coupon. Of the total R$3,432 million in amortization and interest payments in the period, we highlight: - Payment of a portion of the debt with former Aracruz shareholders in the amount of R$856 million; - Early settlement of an Export Pre-Payment line in the amount of US$600 million Club Deal; - Early settlement of a Bilateral Export Pre-Payment line in the amount of US$200 million; and

14

1Q11 Results
- Early settlement of an Export Pre-Payment line in the amount of US$600 million through a Club Deal initiated in September of 2010. The chart below shows the amortization schedule of Fibrias total debt:

Amortization Schedule (R$ million)

5,546 342

5,204

1,151 912 759 902 249 2011 627 291 468 2012 298 329 2013 Foreign Currency 557 2014 Local Currency 355 665 361 304 2015 Total 596 190 406 2016 2017 a 2021

CAPEX
(R$ million) Industrial Expansion Forest Expansion Subtotal Expansion Safety/Environment Forestry Renewal Maintenance, IT, R&D, Modernization Subtotal Maintenance 50% Veracel Total Fibria 1Q11 4 23 27 15 138 70 223 16 266 4Q10 5 13 18 29 144 122 295 18 332 1Q10 10 6 16 9 112 24 145 12 173

Capital investments (CAPEX) totaled R$266 million in the quarter. Quarter-on-quarter, CAPEX declined R$66 million (20%). Year-on-year, the R$93 million increase (54%) as compared to 1Q10 is primarily explained by the cost reduction initiatives such as the modernization of Aracruz Units pulpline A bleaching operation and the Jacare Units project to use solid waste.

15

1Q11 Results
Capital Markets

Average Daily Traded Volume (US$ million)

Average Daily Traded Volume (Million shares)

150 100 50 Daily average: US$ 42.0 million

8 6 4 2

Daily average: 2.7 million

Jan-11

Feb-11
NYSE

Mar-11
BM&FBovespa

Jan-11

Feb-11
NYSE

Mar-11
BM&FBovespa

The average daily trading volume of Fibrias shares was approximately 2.7 million shares. The average daily financial volume in 1Q11 was US$42 million, with US$22 million traded on the NYSE and US$20 million on the BM&FBovespa.

Dividends
The distribution of the minimum mandatory dividend for the 2010 fiscal year in the amount of R$142,179 thousand, as well as the distribution of the retained minimum mandatory dividends for the 2009 fiscal year in the amount of R$121,958 thousand, was approved at the A/EGM held on April 28. The Companys shareholders as of April 28, 2011 will be entitled to dividends and payment is scheduled for May 31, 2011. The shares are being traded ex-dividends as of April 29, 2011.

Corporate Governance
Succession of the Chief Executive Officer Pursuant with its commitment to transparency, the Board of Directors of Fibria Celulose S.A announced on March 2
nd

the succession of the Chief Executive Officer, Carlos Augusto Lira

Aguiar, who has been in charge since the foundation of the company, as of September 1st, 2009. According to the process of succession, Marcelo Strufaldi Castelli, currently Director of Forestry, Paper, Strategy and Supplies, has been appointed for the Chief Executive Officer position, effective on July 1st, 2011. Subsequent to this transition, Carlos Aguiar will join the Board of Directors of Fibria, beginning in 2012.

16

1Q11 Results
General Meeting Participation Manual In line with corporate governance best practices, in April Fibria published its General Meeting Participation Manual in Portuguese and English. To facilitate understanding and access to information on the matters to be discussed at the Annual and Extraordinary General Meetings held together on April 28, 2010, the manual compiled all information necessary for understanding the agenda and facilitating participation of all shareholders into a single document.

17

1Q11 Results
Appendix I Revenues x Volume X Price*
Net Operating Revenues Variation | 1Q11 X 4Q10 PRODUCTS 1Q11 Paper Domestic Sales Uncoated Coated Special/Other Total Export Market Uncoated Coated Special/Other Total Total Paper Pulp Domestic Sales Export Market Total Total Domestic Sales Total Export Market TOTAL Tonnes 4Q10 Net Revenue -R$ 000 1Q11 4Q10 BRGAAP Price -R$/ton 1Q11 4Q10 QoQ% Tonnes Revenue Average Price

5,932 9,083 15,426 30,441 3,204 2,229 5,433 35,874 116,220 1,142,998 1,259,218 146,661 1,148,431 1,295,092

1,524 9,332 16,760 27,616 1 2,422 2,422 30,038 101,257 1,153,013 1,254,270 128,873 1,155,435 1,284,308

13,035 22,284 71,866 107,185 5,367 5,557 10,924 118,109 117,432 1,296,331 1,413,763 224,617 1,307,255 1,531,872

3,171 24,327 79,237 106,736 1 6,279 6,280 113,016 105,632 1,330,047 1,435,679 212,367 1,336,327 1,548,695

2,197 2,453 4,659 3,521 1,675 2,493 2,011 3,292 1,010 1,134 1,123 1,532 1,138 1,183

2,081 2,607 4,728 3,865 1,600 2,593 2,592 3,762 1,043 1,154 1,145 1,648 1,157 1,206

289.3 (2.7) (8.0) 10.2 (8.0) 124.3 19.4 14.8 (0.9) 0.4 13.8 (0.6) 0.8

311.0 (8.4) (9.3) 0.4 (11.5) 73.9 4.5 11.2 (2.5) (1.5) 5.8 (2.2) (1.1) -

5.6 (5.9) (1.5) (8.9)

(3.8) (22.4) (12.5) (3.1) (1.7) (1.9) (7.1) (1.6) (1.9)

Net Operating Revenues Variation | 1Q11 X 1Q10 PRODUCTS 1Q11 Paper Domestic Sales Uncoated Coated Special/Other Total Export Market Uncoated Coated Special/Other Total Total Paper Pulp Domestic Sales Export Market Total Total Domestic Sales Total Export Market TOTAL Tonnes 1Q10 Net Revenue -R$ 000 1Q11 1Q10 BRGAAP Price -R$/ton 1Q11 1Q10 QoQ% Tonnes Revenue Average Price

5,932 9,083 15,426 30,441 3,204 2,229 5,433 35,874 116,220 1,142,998 1,259,218 146,661 1,148,431 1,295,092

1,352 11,397 13,576 26,325 1,183 1,183 27,508 108,182 1,172,609 1,280,791 134,506 1,173,792 1,308,299

13,035 22,284 71,866 107,185 5,367 5,557 10,924 118,109 117,432 1,296,331 1,413,763 224,617 1,307,255 1,531,872

2,512 27,051 69,770 99,332 3,147 3,147 102,479 91,299 1,303,477 1,394,776 190,631 1,306,624 1,497,255

2,197 2,453 4,659 3,521 1,675 2,493 2,011 3,292 1,010 1,134 1,123 1,532 1,138 1,183

1,857 2,374 5,139 3,773 2,659 2,659 3,725 844 1,112 1,089 1,417 1,113 1,144

338.7 (20.3) 13.6 15.6 88.4 359.2 30.4 7.4 (2.5) (1.7) 9.0 (2.2) (1.0)

419.0 (17.6) 3.0 7.9 76.6 247.2 15.3 28.6 (0.5) 1.4 17.8 0.0 2.3

18.3 3.4 (9.3) (6.7) (6.2) (24.4) (11.6) 19.7 2.0 3.1 8.1 2.3 3.4

*Does not include Asapir and Portocel

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1Q11 Results
Appendix II Income Statement
INCOME STATEMENT - Quarterly Results Fibria - Consolidated 1Q11 Net Revenue Domestic Sales Export Sales Cost of sales Cost related to production Accruals for losses on ICMS credits Operating Profit Selling and marketing General and administrative Financial Result Equity Other operating (expenses) income Operating Income Current Income taxes expenses Deffered Income taxes expenses Discontinued operations Net income (loss) from discontinued operations Financial Result Income tax/Social contribution Net Income (Loss) Net Income (Loss) attributable to controlling equity interest Net Income (Loss) attributable to non-controlling equity interest Depreciation, amortization and depletion EBITDA Fair Value of Biological Assets Fixed Assets disposals Accruals for losses on ICMS credits Assets Disposals Result Adjusted EBITDA (*) Profit from discontinued operations EBITDA Pro forma R$ 1,548 238 1,310 (1,227) (1,206) (21) 321 (65) (75) 11 (0) (13) 179 3 (35) 365 0 (124) 389 387 2 436 968 (8) 21 (357) 624 (17) 607 39% AV% 100% 15% 85% -79% -78% -1% 21% -4% -5% 1% 0% -1% 12% -4% 2% 4Q10 R$ 1,563 230 1,333 (1,252) (1,225) (28) 311 (62) (83) 35 (0) (27) 174 (14) (44) 61 8 (23) 162 160 2 458 658 9 3
28

1Q10 AV% 100% 15% 85% -80% -78% -2% 20% -4% -5% 2% 0% -2% 11% -1% -3% R$ 1,511 203 1,308 (1,130) (1,112) (18) 381 (62) (70) (337) (0) (44) (131) 73 59 16 (4) (3) 9 8 1 392 614 0% 2% -2% 38% 4
18

AV% 100% 13% 87% -75% -74% -1% 25% -4% -5% -22% 0% -3% -9% 5% 4%

R$ million QoQ % 1Q11/4Q10 1Q11/1Q10 -1% 2% 3% 17% -2% 0% -2% 9% -2% 8% -25% 14% 3% -16% 4% 5% -10% 8% -67% -103% 0% -82% -74% -70% 3% -237% 377% -189%

25% 25% 0% 28% 60% 0% -1% 1% -23% 39%

10% 7% 0% 29% 37%

1% 0% 0% 26% 37%

140% 237% 8% -5% 47%

4317% 5028% 35% 11% 58%

(33) 665 (59) 606

0% 1% 0% 38% -6% -2%

637 (40)

39%

597

39%

0%

2%

(*) EBITDA margin calculated based on revenue for the quarter with Conpacel and KSR (1Q11: R$ 1,613 million, 4Q10: R$ 1,769 million and 1Q10: R$ 1,675 million)

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1Q11 Results
Appendix III Balance Sheet
Balance Sheet R$ million ASSETS CURRENT ASSETS Cash and cash equivalents Securities Derivative instruments Trade Accounts Receivable, net Inventories Recoverable taxes Assets avaiable for sale Others NON-CURRENT ASSETS Securities Accounts receivable from sale of investment Deferred income taxes Assets avaiable for sale Recoverable taxes Others Investments Property, plant & equipment , net Biological assets Intangible assets TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Short-term debt Derivative instruments Trade Accounts Payable Payroll and related charges Tax Liability Dividends and Interest attributable to capital payable Stock acquisition payable Avaiable for sale Others NON-CURRENT LIABILITIES Long-term debt Accrued liabilities for legal proceedings Deferred income taxes , net Tax Liability Stock acquisition payable Others Minority interest SHAREHOLDERS' EQUITY Issued Share Capital Capital Reserve Revaluation Reserve Retained earnings Equity valuation adjustment Treasury stock TOTAL LIABILITIES MAR/ 11 4,850 750 1,395 75 1,030 1,165 355 80 2,636 77 1,199 535 825 8 12,823 3,497 4,883 28,697 MAR/ 11 2,331 645 387 81 132 266 605 215 10,573 9,006 156 1,174 76 160 25 15,768 8,379 3 9 5,769 1,619 (10) 28,697 DEZ/ 10 5,899 431 1,641 81 1,138 1,014 282 1,196 115 2,820 52 1,332 26 591 819 8 12,979 3,551 4,906 30,163 DEZ/ 10 3,192 624 424 122 63 266 1,441 96 156 11,566 9,958 155 1,222 75 156 23 15,381 8,379 3 9 5,382 1,619 (10) 30,163 MAR/ 10 5,033 550 2,120 1,164 823 247 129 2,509 27 1,341 374 767 15 13,988 3,754 5,417 30,716 MAR/ 10 3,911 1,027 13 473 84 60 8 2,132 113 11,720 9,776 132 968 61 605 176 21 15,064 8,379 3 10 5,054 1,619 (1) 30,716

20

1Q11 Results
Appendix IV Cash Flow
Cash Flow Statement (R$ million) 1Q11 4Q10 1Q10

NET INCOME (LOSS) BEFORE INCOME TAXES

544 494 (150) (68) (357) 1 20 21 171 (45)

243 488 (162) (100) (24) 5 48 26 169 (55)

(119) 405 187 11 0 9 95 (42) 181 (37)

Adjustments to reconcile net income to cash provided by operating activities : (+) Depreciation, depletion and amortization (+) Foreign exchange and unrealized (gains) losses, net (+) Fair value of financial instruments (+) Equity (+) GaIn on disposal of investments (+) Fair value of Biological Assets (CPC 29) (+) Gain (loss) on disposal of Property, Plant and Equipment (+) Debt present value adjustment - shares acquisition (+) Accrued liabilities for legal proceedings and others (+) Interest on loan accrual (+) Interest on Securities Changes in operating assets: Trade accounts receivable Inventories Recoverable taxes Advance to suppliers and others Changes in operating liabilities: Trade Accounts Payable Taxes on income and other taxes Payroll, profit sharing and related charges Others Net cash provided by operating activities Interest received from Securities Interest paid on loans Taxes on income and other taxes paid CASH FLOW FROM OPERATING ACTIVITIES Investment activities Acquisition of an interest in an affiliate net of cash acquired Property, Plant and Equipment Acquisition Intangible assets and others Securities Revenues on Property, Plant and Equipment Sales Settlement of financial instruments Revenue on disposal of investments CASH FLOW FROM INVESTING ACTIVITIES Financing activities Loans Borrowings Capital increase Borrowings payment - Principal Others CASH FLOW FROM FINANCING ACTIVITIES Exchange variation effect on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalent at beginning of period Cash and cash equivalent at end of period

71 (165) (43) 46

(128) (38) (24) (17)

(284) 7 (32) 101

(7) 3 (41) 19

104 (14) (3) 78

76 18 (39) (18)

99 (87) 526 (856) (264) (2) 193 22 49 1,509 651

19 (225) (1) 389 (355) (15) 39 12 27 (292)

20 (153) (7) 379 (1,043) (185) 1,187 1 7 (33)

1,636 (2,471) 2 (833) (25) 319 431 750

271 (400)

795 (1,252)

(129) (14) (46) 480 434

(457) 16 (95) 645 550

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1Q11 Results
Appendix V Economic and Operating Data
Exchange Rate (R$/US$) Closing Average 1Q11 1.6287 1.6674 4Q10 1.6662 1.6972 3Q10 1.6942 1.7493 2Q10 1.8015 1.7926 1Q10 1.7810 1.8040 4Q09 1.7412 1.7393 1Q11 vs. 4Q10 -2.3% -1.8% 1Q11 vs.1Q10 -8.6% -7.6% 4Q10 vs. 3Q10 -1.7% -3.0% 1Q10 vs. 4Q09 2.3% 3.7%

Pulp sales distribution, by region Europe North America Asia Brazil / Others

1Q11 46% 20% 25% 9%

4Q10 38% 30% 23% 9%

1Q10 40% 28% 24% 8%

1Q11 vs. 4Q10 8 p.p. -10 p.p. 2 p.p. 0 p.p.

1Q11 vs. 1Q10 6 p.p. -8 p.p. 1 p.p. 1 p.p.

Last 12 Months 41% 26% 23% 10%

Pulp list price per region (US$/t) North America Europe Asia

Apr-11 930 880 780

Mar-11 900 850 750

Feb-11 900 850 750

Jan-11 900 850 750

Dec-10 900 850 750

Nov-10 900 870 800

Oct-10 900 870 800

Sep-10 900 870 800

Aug-10 900 870 800

Jul-10 950 920 850

Jun-10 950 920 850

May-10 920 890 850

Apr-10 870 840 800

Mar-10 820 790 750

Financial Indicators

1Q11 2.9 0.4 4.0

4Q10 3.6 0.4 2.4

3Q10 3.9 0.4 2.0

2Q10 4.7 0.5 2.2

1Q10 5.6 0.5 1.1

4Q09 6.5 0.5 1.3

3Q09 7.2 0.6 0.8

2Q09 7.2 0.6 0.9

Net Debt / Adjusted EBITDA (LTM*) Net Debt / Total Capital (gross debt + net equity) Cash + EBITDA (LTM*) / Short-term Debt

22