Third quarter results

Fibria released its financial and operational results for the third quarter of 2010. Net income came to R$ 303 million, 133% higher than in the previous quarter, while the gross debt was down to R$ 12.3 billion – a 20% reduction from the figure at the end of the 3Q09. Meanwhile, the accumulated EBITDA for the 2010 calendar year amounted to R$ 2.1 billion. To see the full quarterly results release, please click here.

An example of sustainability

For the second year running, Fibria has been chosen as one of the 20 companies that are considered a model of sustainability, according to the publication Guia Exame de Sustentabilidade 2010. The trophy was presented to the company’s chairman, José Luciano Penido, at an event held in São Paulo state, on November 10^th. This was the 11^th edition of the award, which is sponsored by the Editora Abril publishing house, in consultation with the Getúlio Vargas Foundation’s Center for Sustainability Studies. This year the survey assessed a total of 200 companies to choose those that set the best examples in socioenvironmental responsibility. Local community initiatives and the transparency of its Sustainability Report were positive factors that favored Fibria’s selection.

Among the best reports in Brazil

Fibria’s Sustainability Report 2009 has been ranked among the 29 best in Brazil, according to the survey “Road to Credibility: a study of sustainability reports in Brazil”, carried out by SustainAbility in partnership with the FBDS (Brazilian Foundation for Sustainable Development). A total of 137 reports were found eligible for consideration in the study, which assessed the companies’ corporate governance and strategy, management, presentation of performance, accessibility and assurance. The results were announced on October 28^th.

Best IR in Latin America

Fibria’s Investor Relations (IR) program has earned recognition from the Institutional Investor magazine. The publication conducted a survey among 204 investors and 260 analysts of the performance of Latin American companies’ IR departments. Fibria stood out within the pulp and paper sector in the categories: “Best Investor Relations Team” (1^st place, according to analysts and investors); “Best Investor Relations Professional” – André Luiz Gonçalves, the company’s IR general manager (1^st place, according to analysts, and 2^nd place in the opinion of the investors); “Best CEO” – Carlos Aguiar (2^nd place, according to analysts and investors) and “Best CFO” – Carlos Aguiar (acting CFO) and João Elek, Financial and Investor Relations director (2^nd place, according to analysts, and 3^rd place in the opinion of the investors).

Playing an international role

In China, on November 3^rd, Fibria’s chairman, José Luciano Penido, assumed the position of chairman of the forestry sector working group for the WBCSD (World Business Council for Sustainable Development). Based in Switzerland, the WBCSD brings together executives from 145 companies around the world that are committed to environmental quality and the principles of sustainable development.

Indian lands in Aracruz

Brazil’s president, Luiz Inácio Lula da Silva, enacted two decrees on November 5^th, ratifying the concession of 11,000 hectares to the indigenous communities in the municipality of Aracruz (Espírito Santo state). This brings the total area of Indian lands in the region to roughly 18,000 hectares. These decrees provide official confirmation of the Indians’ rights to definitive use of these lands, the boundaries of which were set following the signing of a Conduct Adjustment Agreement (TAC) in December 2007, which brought to an end a long-running land dispute between Aracruz (which merged with VCP to form Fibria) and local Indian communities.

Increased pulp exporting capacity

On October 28^th, Portocel, the specialized terminal at Barra do Riacho (Aracruz, Espírito Santo state) that is jointly controlled by Fibria (51%) and Cenibra, received official confirmation from CODESA (Espírito Santo Port Authority) authorizing an increase in the port’s maximum draft (the depth of a ship below the water line). The port has been able to handle vessels with a draft of up to 10.3 meters, but at zero tide can now take ships with a draft of up to 11.2 meters. This means that the ships normally using the port will be able to significantly increase the load they take on, from 45,000 tons to 70,000 tons, and that larger vessels can now also use the port.

Seafood entrepreneurism

On October 28^th, around 160 representatives of the community of Caravelas (Bahia state) who make their living from fishing and gathering shellfish came together to present the second phase of the Enterprising Caravelas Project, with plans for the construction of an ice factory to serve the region. Set up in 2008, the project is run by APESCA (Caravelas Fisherman’s Association) and the Z-25 Fishing Community and is supported by Fibria. A total of 710 inhabitants of Caravelas, Barra and Ponta de Areia have received training through the company’s Enterprise Workshop.

Environmental restoration makes great strides

In October, Fibria’s Aracruz Unit (Espírito Santo state) planted a total of 260,000 native tree seedlings in 286 hectares of areas set aside by the company for forest restoration, within the states of Espírito Santo, Bahia and Minas Gerais. More than were planted during the month. The Aracruz Unit’s 2010 target is to restore 2,700 hectares of Permanent Preservation Areas (APPs) and Legal Reserves within the Atlantic Forest biome.

BRACELPA at COP 16

BRACELPA (Brazilian Pulp and Paper Association) will have a stand at the 16^th Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 16), which will take place in Cancun, Mexico, between November 29^th and December 10^th. The association will represent Brazilian pulp and paper sector interests at the gathering and discuss the trading of carbon credits for planted forests, under the Kyoto Protocol’s Clean Development Mechanism (CDM).

Personality of the year in the finance sector

On November 25^th, Fibria’s CEO, Carlos Aguiar, was honored by the IBEF (Brazilian Institute of Finance Executives), in a ceremony held in Vitória (Espírito Santo state). The executive was voted Finance Personality of the Year for his work at Fibria and his broader contribution to the country’s economic development. This award, which was created in 1987, highlights professionals from Brazil’s major corporations and government bodies. Carlos Aguiar was presented by the IBEF’s national chairman, Henrique Luz, with a bronze sculpture by the Italian artist Jean Carlo Patuzzi.

Encouraging forest certification

Between November 9^th and 12^th, Fibria participated in the 14^th General Assembly of the Program for the Endorsement of Forest Certification schemes (PEFC), held in Rio de Janeiro state. This gathering brought together 150 representatives from 35 member countries, including certified companies, public, private and third sector institutions and universities. The aim was to stimulate forest certification in Brazil, by publicizing CERFLOR (Brazilian Forest Certification Program), which is internationally recognized under the PEFC, and offering examples of companies such as Fibria that have been awarded this seal of approval. Efigênio Teixeira Lopes, coordinator of the company’s Forest Savings Program at the Capão Bonito and Vale do Paraíba Forest Units (São Paulo state), gave a presentation on Fibria’s certification experience as a means of integrating local communities and farmers within its production chain.

Did you know...

...that Fibria was the world’s first forestry sector company to become a Carbon Disclosure Project (CDP) Supply Chain leader? By means of this initiative, Fibria is extending its engagement on the issue of climate change throughout its entire supply chain. Now, in addition to reporting its climate governance practices to the CDP, the company will add assessments of the risks and opportunities presented by the practices of its pulp business partners. The CDP is an international organization whose objective is to disseminate information and provide guidance to investors who wish to understand the risks and opportunities linked to global warming when taking investment decisions.