Post on 01-May-2017
Institutional Presentation – 1Q14 May 2014
KLBN11
Disclaimer
Institutional presentation 1Q14 – May 2014
The statements contained in this presentation related to the business outlook, operating and financial projections, and growth prospects
of Klabin S.A. are merely projections, and as such are based exclusively on the expectations of the Company’s management concerning
the future of the business.
These forward-looking statements depend substantially on the market conditions, the performance of the Brazilian economy, the industry
and international markets, and therefore are subject to change without prior notice.
This presentation on Klabin’s performance includes non-accounting and accounting data, such as operating and financial information, as
well as projections based on Management’s expectations. Note that the non-accounting data has not been reviewed by the Company’s
independent auditors.
The Company’s management believes EBITDA may provide useful information on the Company’s operating performance and allow for
comparisons with other companies in the same industry. Note however that EBITDA is not a measure established in accordance with
generally accepted accounting principles of the International Financial Reporting Standards – IFRS, and may be defined and calculated
differently by other companies.
A diferentiated company
Integration and Markets
Strongly linked to the consumer market
700 k tonnes
coated boards
1.0 mi tonnes
kraftliner
200 k tonnes
recycled paper
150 k tonnes
industrial bags
570 k tonnes
corrugated boxes
243 k ha eucalyptus and
pine forests
250 k tonnes
o.c.c. Sales volume destination
paper and packaging
68% Food
Building
Other consumer goods
Others
13%
7%
Paper Conversion Fibers End-users
Institutional presentation 1Q14 – May 2014
Market position PAPER
Leader in the Brazilian packaging paper market, where we allocate more than 50% of our capacity
Coated Boards
Kraftliner
675 50%
market share
thousand tonnes sold in 2013
377
40% installed capacity
thousand tonnes sold in 2013
Sole supplier of liquid packaging board
in Latin America
Institutional presentation 1Q14 – May 2014
Market position CONVERSION
Leader in the Brazilian packaging market where we allocate more than 95% of our capacity
Industrial Bags
Corrugated Boxes
50% market share
Second player’s market share is 16%
15% market share
Second player’s market share is 9%
Institutional presentation 1Q14 – May 2014
From 2008 to 2013
HIGH RETURN INVESTMENTS
EXPANSION OF EVAPORATION SYSTEM
OTACÍLIO COSTA AND MONTE ALEGRE
BIOMASS BOILER
OTACÍLIO COSTA AND CORREIA PINTO
HIGH VOLTAGE
TRANSMISSION LINE MONTE ALEGRE
COST REDUCTION AND CHANGE IN
COMMERCIAL PRACTICES
MONTE ALEGRE, PR
OTACÍLIO COSTA, SC CORREIA PINTO, SC
FORESTRY UNIT
“INSOURCING”
MECHANIZATION OF SILVICULTURE AND
HARVESTING
EXPANSION OF CONVERSION
CAPACITY
NEW CORRUGATOR JUNDIAÍ DISTR. IND, SP
NEW CORRUGATOR GOIANA, PE
NEW INDUSTRIAL BAGS EQUIPMENTS GOIANA, PE
NEW PRINTERS FOR CORRUGATED BOXES
Institutional presentation 1Q14 – May 2014
Adjusted EBITDA
1.562 million
R$
2013
962 milllion
R$
2010
1.028 million
R$
2011
1.352 million
R$
2012
Capacity of 1.7 million tonnes per year (excluding wood)
26% 26%
32% 34%
GROWTH
7% GROWTH
31% GROWTH
16%
2010 2011 2012 2013
MARGIN
1.602 million
R$ (Last twelve
months)
1Q14
Institutional presentation 1Q14 – May 2014
1.8 million tonnes per year
From now on
HIGH RETURN INVESTMENTS
DEBOTTLENECKING AT THE WOOD YARD
MONTE ALEGRE
BIOMASS DRYING
PROCESS OTACÍLIO COSTA
COST REDUCTION
FORESTRY UNIT
CORRUGATED BOXES UNIT
Institutional presentation 1Q14 – May 2014
Expansion projects NEW CAPACITIES
2013 2014 2015 2016
50,000 tonnes
per year
80,000 Tonnes per
year
debottlenecking coated boards (PR)
sack kraft machine(SC)
STARTED IN NOV/2013
recycled paper machine(PE)
110,000 Tonnes per year
PUMA project
1,5 million Tonnes per year
debottlenecking PIRACICABA AND
ANGATUBA
50,000 Tonnes per year
Institutional presentation 1Q14 – May 2014
Growth Additional Capacities 3.5 million
tonnes per year
2016 E
2.0 million tonnes per
year
2015 E
1.8 million tonnes per
year
2014 E
1.7 million tonnes per
year
2013
Institutional presentation 1Q14 – May 2014
1Q14 Results
Highlights 1Q14 VOLUME, NET REVENUE AND EBITDA
1Q13 1Q14
424 384
Adjusted EBITDA
(R$ million)
65%
30%
70%
35% 431
443
1Q13 1Q14
Sales volume
(excluding wood– tsd tonnes)
72%
24%
76%
28% 1.066
1.203
1Q13 1Q14
Net revenue
(R$ million)
Domestic market Export market
Institutional presentation 1Q14 – May 2014
Paper business unit
14
Kraftliner
Recycled
Kraftliner and coated boards
Domestic market Export market
Kraftliner
Coated Boards
Thousand tonnes R$ million
1Q13
54%
46%
90
1Q14
69%
31%
105
1Q13 1Q14
171
138
-2%
1Q13
44%
56%
165
1Q14
45%
55%
161
1Q13 1Q14
376 415
Institutional presentation 1Q14 – May 2014
Conversion business unit
15
Corrugated boxes
Industrial bags
Corrugated boxes and industrial bags
Total
conversion 1Q13
164
1Q14
173
1Q13 1Q14
468
525
Thousand tonnes R$ million
Institutional presentation 1Q14 – May 2014
Net Debt/Adjusted Ebitda LAST TWELVE MONTHS
2,00
2
1,8
93
2,3
13
2,73
5
2,6
74
3,0
14
3,09
0
3,27
8
3,1
36
3,43
7
3,59
5
3,98
5
2,71
1
2.1 2.02.4 2.5
2.3 2.5 2.4 2.52.2
2.4 2.4 2.6
1.7
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14
Net debt
(R$ million)
Net Debt Net Debt / EBITDA (LTM)
Institutional presentation 1Q14 – May 2014
Capex
R$ MILLION 2011 2012 2013 2014E 2015E
MAINTENANCE 296 390 369 372 360
SPECIAL PROJECTS AND
EXPANSION 159 264 431 431 -
VALE DO CORISCO 428 - - - -
PUMA PROJECT - - 99 2,762 3,470
TOTAL 883 654 899 3,565 3,830
Institutional presentation 1Q14 – May 2014
Project Puma
The Project LOW OPERATION COST
272 MWh of ELECTRICAL ENERGY
production SELF SUFFICIENCY
122 MWh for internal
use
150 MWh to the market
enough to supply a city of 500 thousand inhabitants
ANNUAL PRODUCTION CAPACITY
1.5 MILLION TONNES OF PULP
1.1 million tonnes of SHORT
FIBER
400 thousand tonnes of LONG FIBER part converted into fluff
Institutional presentation 1Q14 – May 2014
Project features PUMA
fluff production
production of hardwood pulp (eucalyptus) and softwood (pine)
lowest cash cost in Brazil
domestic sales
Institutional presentation 1Q14 – May 2014
Project features LOCALIZATION
VALE DO CORISCO FORESTS
PARANA STATE
PUMA
MONTE ALEGRE
KLABIN FORESTS
Institutional presentation 1Q14 – May 2014
Project features LESS FORESTRY AREA NEEDED
238 thousand hectares south USA
140 thousand hectares Brazil
300 thousand hectares Europe
700thousand hectares nordic countries
160 thousand hectares Chile
planted forest needed for a 1.5 million tonnes of hardwood pulp mill
HUGE PRODUTIVITY
100 thousand hectares KLABIN PUMA
Institutional presentation 1Q14 – May 2014
Products
EUCALYPTUS PULP BEKP IN BALES
PINE PULP BSKP
IN BALES
FLUFF IN REELS
MADE FROM BSKP
PUMA PROJECT PRODUCES 3 DIFFERENT TYPES OF FIBER that could lead to combined sales to the same client
BEKP: bleached eucaliptus kraft pulp BSKP: bleached softwood pulp
Institutional presentation 1Q14 – May 2014
World demand BLEACHED PULP
11.6 million tonnes OTHER SHORT FIBER
6.5 million tonnes
FLUFF
16.5 million tonnes EUCALIPTUS
17.4 million tonnes
LONG FIBER
SOURCE: HAWKINS WRIGHT
SHORT FIBER 28 million tonnes
LONG FIBER
24 million tonnes
52 MILLION TONNES IN 2013
Institutional presentation 1Q14 – May 2014
World demand SHORT FIBER
SOURCE: HAWKINS WRIGHT 2013
CAGR 3.3%
2013 anualizado
28.2 million tonnes
SHORT FIBER
2013
32.2 million tonnes
SHORT FIBER
2017
Institutional presentation 1Q14 – May 2014
Market LONG FIBER
SOURCE: BRACELPA
LONG FIBER IMPORTS IN BRAZIL
DOMESTIC MARKET FOCUS IMPORTS SUBSTITUTION
GROWTH 7%
439 thousand
tonnes
IMPORTED LONG FIBER
2013 anualized
410 thousand
tonnes
IMPORTED LONG FIBER
2012
Institutional presentation 1Q14 – May 2014
Market FLUFF
DISPOSABLE DIAPERS DEMAND IN BRAZIL
SOURCE: EUROMONITOR INTERNATIONAL
fluff domestic demand is expected to grow significantly
imports substitution
Major markets: infant and adult diapers and women
disposal
5.8 billion units
DISPOSABLE
DIAPERS
2007
9.8 billion units
DISPOSABLE
DIAPERS
2012
11.8 billion units
DISPOSABLE
DIAPERS
2017E
CAGR 11%
CAGR 4%
Institutional presentation 1Q14 – May 2014
Fluff, long fiber and short fiber prices
CIF E
uro
pe p
ric
e (
US
$/
ton
ne)
Institutional presentation 1Q14 – May 2014
SOURCE: RISI/FOEX
600
650
700
750
800
850
900
950
1000
1050
1100M
ar-1
0
May
-10
Jul-
10
Sep
-10
No
v-1
0
Jan
-11
Mar
-11
May
-11
Jul-
11
Sep
-11
No
v-1
1
Jan
-12
Mar
-12
May
-12
Jul-
12
Sep
-12
No
v-1
2
Jan
-13
Mar
-13
May
-13
Jul-
13
Sep
-13
No
v-1
3
Jan
-14
Mar
-14
Fluff
SBSK
BHKP
Global cash cost (short fiber)
SOURCE: HAWKINS WRIGHT
5 10 15 20 25
700
600
500
400
300 PUMA
annual capacity (millions of tonnes)
CIF E
uro
pe c
ash
co
st
(U
S$
/to
nn
e)
Institutional presentation 1Q14 – May 2014
Commercial strategy
KLABIN WILL NOT AIM FOR
LARGE VOLUMES
SHORT FIBER
1
LONG FIBER
2
FLUFF 3
DOMESTIC MARKET
4
EXPORTS 5
INTEGRATION 6
PUMA
Institutional presentation 1Q14 – May 2014
Logistics SHORT DISTANCES
72 Km forestry average
distance
pulp mill forests 441 Km
railway to the port Paranaguá port EXPORTS
highway
DOMESTIC MARKET
INBOUND OUTBOUND
Institutional presentation 1Q14 – May 2014
Capex and Funding
R$ 5.8 billion reais INDUSTRIAL CAPEX
R$ 7.2 BILLION REAIS
CAPEX FUNDING
R$ 7.2 BILLION REAIS
R$ 0.8 billion reais RETURNABLE TAXES
R$ 0.6 billion reais OFF THE FENCE(recovered)
R$ 4.2 billion reais BNDES
R$ 0.7 billion reais ECA’s
R$ 0.6 billion reais IDB
R$ 1.7 billion reais CAPITALIZATION
Institutional presentation 1Q14 – May 2014
CONTRACTED
Project Status
Earthmovement well advanced
Start up: march 2016
100% of industrial equipment contracted
Civil construction already started
Institutional presentation 1Q14 – May 2014
Under negotiation: Railcars and bridges
Earthmovement
Institutional presentation 1Q14 – May 2014
Appendix
Income statement
Institutional presentation 1Q14 – May 2014
Units After the 4th period of conversion
1084 MM
71 MM
KIC/NIBLAK Others
80 MM
71 MM
30 MM
433MM
BNDES Monteiro Aranha Treasury Others
282 MM
222 MM
ADR's Others
KLBN3 – 1155 MM sharesKLBN11*– 614 MM Units1 KLBN11 = 1 ON + 4 PN’s KLBN4 – 504 MM shares
*614 MM of ON shares2,456 MM of PN shares
Institutional presentation 1Q14 – May 2014
k l a b i n . c o m . b r
Thank you!