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.