8/9/2019 Institutional Presentation 1Q15
1/41
INSTITUTIONAL PRESENTATION – 1Q15JUNE, 2015
KLBN11
8/9/2019 Institutional Presentation 1Q15
2/41
DI
The statements contained in this presentation related to the business outlook, operating and financial projections, a
Klabin S.A. are merely projections, and as such are based exclusively on the expectations of the Company’s mana
future of the business.
These forward-looking statements depend substantially on the market conditions, the performance of the Brazilian
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 f
well as projections based on Management’s expectations. Note that the non-accounting data has not been revie
independent auditors.
The Company’s management believes EBITDA may provide useful information on the Company’s operating per
comparisons with other companies in the same industry. Note however that EBITDA is not a measure establish
generally accepted accounting principles of the International Financial Reporting Standards – IFRS, and may be
differently by other companies.
8/9/2019 Institutional Presentation 1Q15
3/41
CONSISTENTPERFORMANCE
8/9/2019 Institutional Presentation 1Q15
4/41
INTEGRATED BUSINESSESCOMPETITIVENESS TROUGH ALL THE CHAIN
750thousand tonn
220thousand
tonnes
1th
COATEDBOARDS
INDUSTRIAL BAGand SACK KRAF
CORRUGATED BOXESand KRAFTLINER
EUCALYPTUS AND PINEFORESTS
243thousand ha 1.7million tonnes
OLD CORRUGATEDCONTAINERS
330thousand
tonnes
HIGH YIELD
FOREST
FOREST PULP PAPER and CONVERSION
INDUSTRIAL
EFFICIENCY
HIGH QUALITY
and FLEXIBILITY
8/9/2019 Institutional Presentation 1Q15
5/41
DIVERSIFIED PRODMARK
LOW COSTQUALITY
INDUSTRIALBAGS
CORRUGATEDBOXES
50%
market share market share
16%
source: ABPO, IBÁ
sole supplier ofliquid packagingboard in Latin
America40%
installed capacity
COATED
BOARDS
50%market share
KRAFTLINER
fo
othecongoo
12%
others
7%building
SALES VOLUME PAPER
STRONGLY LIRESILIENT M
LEADER IN BRAZILIN ALL MARKETS
8/9/2019 Institutional Presentation 1Q15
6/41
2016
PUMAPULP MILL
3,5 MILLION TONNES
2011- 2013
PERFORMANCEIMPROVEMENT
1,7 MILLION TONNES
2014 - 2015
PAPEREXPANSIONS -COMPLETED
2,0 MILLION TONNES
BUSINESS EV
INCREASED RESULTS AND
SET THE PATH FOR FUTURE GROWTH
NEWOPP
8/9/2019 Institutional Presentation 1Q15
7/41
7%
31%
16%
10%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
2011 2012 2013 201
EBITDA KLABIN BRL/US$ Brazil GDP World GDP
*LTM = Last twelve months
% CHANGE VS PREVIOUS YEAR
EBITDACONSISTENT RESULTS DESPITE CHALLENGING
8/9/2019 Institutional Presentation 1Q15
8/41
9 2 2
9 3 9
1 ,
0 2 7
1 ,
0 8 9
1 ,
1 8 0
1 ,
2 8 6
1 ,
3 5 1
1 ,
4 2 4
1 ,
4 5 2
1 ,
5 0 4
1 , 5
6 2
1 ,
6 0
2
1 , 6
2 7
1 , 6
5 2
1
, 7 1 8
PERFORMANCE IMPROVEMENTSTABLE MARGINS +
EXPANSION OF CAPACITY
a d j u s t e d E B I T D A
L T M -
R $ m i l l i o n
2014 - 20152011 - 2013
EBITDA SUSTAINABLE PER
8/9/2019 Institutional Presentation 1Q15
9/41
PUMAPROJECT
8/9/2019 Institutional Presentation 1Q15
10/41
8/9/2019 Institutional Presentation 1Q15
11/41
PRODUC
270
of ENSELF SU
120 MWhFOR PUMA
USE
ANNUAL PRODUCTIONCAPACITY
1.5 MILLIONTONNES OF PULP
LOW OPERATIONCOST
1.1 MILLIONTONNES OFSHORT FIBER
400 THOUSANDTONNES OFLONG FIBERPART CONVERTED TO FLUFF
8/9/2019 Institutional Presentation 1Q15
12/41
CURRENT
areas delivered toEPC´s
100% of earthmovingconcluded
Assembly started
EPC´s with Klabincoordination
dedicated team: strongfeedback and control
95% ofequipment
supplies,materials and
servicesconcluded
lowimpEU(55
COMPLETION COST
OF THE PROJECT C58%0%
OF THE CAPEX D41%0%
8/9/2019 Institutional Presentation 1Q15
13/41
INDUSTRIA46%
national equipments andmaterials
14%
importedequipments
14%
engineeringand otherservices
27%
civil construction and
assembly
INDU
FULL
8/9/2019 Institutional Presentation 1Q15
14/41
LOM
72 Kmforestry average
distance
PULP MILLFORESTS
441 Kmrailway to the port
INBOUND OUTBOUND
8/9/2019 Institutional Presentation 1Q15
15/41
EARNINGS1Q15
8/9/2019 Institutional Presentation 1Q15
16/41
HIG
SALES VOLUMEexcluding wood – tsd tonnes
65%
35%443
1Q14
67%
33%437
1Q15
NET REVENUER$ million
74%
26%1,203
1Q14
72%
28%1,308
1Q15
exportsdomesticmarket
ADJU
424
1Q14
8/9/2019 Institutional Presentation 1Q15
17/41
KRAFTLINER (3)
RECYCLED (2)
KRAFTLINER AND COATEDBOARDS (1)
KRAF
31%
69%
34%
66%
1Q14
105thousand
tonnes
1Q15
96 thousand
tonnesR$
1
PAPERBUSINESS UNIT
COATEDBOARDS
55%
45%
55%
45%
1Q14
161thousand
tonnes
1Q15
163thousand
tonnes
1%
415R$ million
474R$ million
1Q14 1Q15
exports domesticmarket
8/9/2019 Institutional Presentation 1Q15
18/41
CORRUGATED BOXES (7)
INDUSTRIAL BAGS (3)
CORRUGATED BOXES ANDINDUSTRIAL BAGS (1)
1Q14
173thousand
tonnes525R$ million
536R$ million
1Q14 1Q15
CONVERSIONMARKET POSITION
+
8/9/2019 Institutional Presentation 1Q15
19/41
CA
1,782R$/tonne
1Q14
1,900R$/tonne
1Q15*
*Excluding non-recurring effects of stoppages in Otacílio Costa mill (SC)and in the Turbo Generator 8, in Monte Algre (PR) mill
Chemicals
15%
Freight
11%
Fuel Oil
3%
Maintenance
materials /stoppage
10%
Electricity
10%
Others
6%
CASH COSTBREAKDOWN
UNITCASH COST
8/9/2019 Institutional Presentation 1Q15
20/41
N
2 . 6
7 4
3
. 0 1 4
3 . 0
9 0
3 . 2
7 8
3 . 1
3 6
3 . 4
3 7
3 . 5
9 5
3 . 9
8 5
2 . 7 1 1
2 . 8
2 4
4 . 0
2 8
2,32,5 2,4 2,5
2,22,4 2,4
2,6
1,7 1,7
2,4
M a r - 1 2
J u n - 1 2
S e p - 1 2
D e c - 1 2
M a r - 1 3
J u n - 1 3
S e p - 1 3
D e c - 1 3
M a r - 1 4
J u n - 1 4
S e p - 1 4
Net Debt Net Debt / EBITDA (LTM)
8/9/2019 Institutional Presentation 1Q15
21/41
DEBT
983
470 450
560
296
734
215242
120 62
772
585
971894
897
673
398
241
70
1.351
1.755
1.055
1.4211.454
1.193
1.407
613
483
190
1.413
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MAT
Local currency : R$ 4.1 billion Average tenor: 45 months
Foreign currency: R$ 6.9 billion Average tenor : 57 months
5,600
CASHPOSITION
8/9/2019 Institutional Presentation 1Q15
22/41
maintenance
CAPEXR$ million 2011
3T14296
special projects and growth 159
vale do corisco 428
PUMA project -
total 883
2012
3T14390
264
-
-
654
2013
3T14369
431
-
99
899
2014
3T14384
319
-
2,242
2,945
8/9/2019 Institutional Presentation 1Q15
23/41
Investor Relationswww.klabin.com.br/[email protected]: +55 (11) 3046-8401
8/9/2019 Institutional Presentation 1Q15
24/41
APPENDIXEARNINGS1Q15PUMA MARKET
COMMERCIAL CONTRACT
8/9/2019 Institutional Presentation 1Q15
25/41
PUMAPULP MARKET
PULP
8/9/2019 Institutional Presentation 1Q15
26/41
PULP
long fib
PUDIS
Source: Hawkins Wright; RISI
52.6million tonnes
market pulp
112million tonnes
integrated pulp
164mm t
VIRGINFIBERPULP
PUMA 6th LARGEST PU
8/9/2019 Institutional Presentation 1Q15
27/41
PUMA: 6th LARGEST PU
LARGEST MARKET PULP MILLS OF THE WORLD
Fibria Aracruz 2,340
April Riau 2,200
April Rizhao 1,700
Eldorado 1,500
CMPC Guaíba 1,690
Suzano Mucuri 1,565
Klabin 1,500
Suzano Maranhão 1,500
Source: Hawkins Wright (jul/14)
28.6short fiber 5
17.5
eucalyptus
WORLD DEMANmillion tonnes per year in 2
Montes del Plata1,300
million tonnes per year in 2014
4th LARGEST I
8/9/2019 Institutional Presentation 1Q15
28/41
4th LARGEST I
Source: Hawkins Wright
WORLD CAPACITY OF FLUFFthousand tonnes per year in 2014
GP2,296
Weyco
1,420
IP1,045
PumaKlabin
400
Domtar334
Resolute290
Stora255
Arauco250
Rock Tenn170
Rayonier110
UPM100
mills
converted influff mills
the only designed to producefluff from the start
fibra longaflS
WORLD DEMAmillion tonnes per year
23,7
SBSK = pinus long fiber from U
FOCUS ON CONSUMER M
8/9/2019 Institutional Presentation 1Q15
29/41
FOCUS ON CONSUMER M
Source: RISI, Euromonitor
96%USA
50%BRA
72% ARG
MARKET PENETRATION INDISPOSABLE DIAPERS2013
high potential ofgrowth
SOPHISTICATION AND IN
HIGHER VALUE ADDE
BRAZIL IS THE 3RD LARGEST M
8/9/2019 Institutional Presentation 1Q15
30/41
BRAZIL IS THE 3RD LARGEST MOF DISPOSABLE DIAPERS IN T
3.3
2008
4.2
2009
4.9
2010
5.7
2011
SA
Source: Euromonitor
0.4
2008
0.5
2009
0.6
2010
0.8
2011
1.0
2012
1.2
2013
SALES OF DIAPERS
FOR ADULTSR$ billion
COMPOSITION OF D
8/9/2019 Institutional Presentation 1Q15
31/41
COMPOSITION OF D
30% TO 50% OF THE AVERAGE WEIGHTOF A DIAPER IS COMPOSED OF FLUFF (20 TO 40G)
SPREADS AMONG DIFFERENT
8/9/2019 Institutional Presentation 1Q15
32/41
SPREADS AMONG DIFFERENT
may13
jun13
jul13
aug13
sep13
oct13
nov13
dec13
jan14
feb14
mar14
apr14
may14
jun14
jul14
aug14
sep14
long fiber x short fiber
fluff x short fiber
Source: RISI, FOEX
CIF EUROPEUS$/TONNE
oct14
GLOBAL CASH COST (SHORT
8/9/2019 Institutional Presentation 1Q15
33/41
5milliontonnes
CIF: COST, INSURANCE AND FREIGHT INCLUDED
GLOBAL CASH COST (SHORT
PUMA
CIF EUROPEUS$/TONNE
400
500
10milliontonnes
15milliontonnes
20milliontonnes
25milliontonnes
Source: Hawkins Wright
8/9/2019 Institutional Presentation 1Q15
34/41
KLABIN & FIBRIACOMMERCIAL CONTRACT
HARDWOOD PULP
Contract Rationale
8/9/2019 Institutional Presentation 1Q15
35/41
1 1 mt
of hardwood
400 kt
of softwood,part converted to fluff
Sale minimum
900 kt
of hardwood / year
200 ktof hardwood / year
400 ktof softwood / year
EXPORTS EXCEP
AMERIC
SOUTH AMERI
ALL MARKETS
1. 5 mt/year
+
Puma Project
Sales dynamics
8/9/2019 Institutional Presentation 1Q15
36/41
hardwood9 0 0 kt
forestry
pulp
plant
Paranaguá Port(PR)
Same price as Fibria
FOB Paranaguá
KLABINindustrial efficiency
FIBcommercia
Timeline
8/9/2019 Institutional Presentation 1Q15
37/41
From start-up
date until December
2016 2017 2018 2019 2020 2021
12 months 12 months 12 months 12 months
900 kt of
hardwood
pro rata of the
period
Minimum of 900 kt of hardwood
Phase out 1 75% of
the delivered in
2019
Phase out 2
50% of the de
in 2019
The contract may be renewed
by agreement between the parties
Volumes may be reduced if Kl
integrate into paper for packa
12 month
Agreement benefits
8/9/2019 Institutional Presentation 1Q15
38/41
Logistics and commercialstructure synergies;
Ensure sales volumes;
Ensure pulp market access withKlabin brand.
Logistics and commercialoptimization and synergies;
Support customers’ growth a
enhance customers’ needs;
Potential development of newcustomers.
Mutual value creation, with better servicing for both Companies custo
Highlights
8/9/2019 Institutional Presentation 1Q15
39/41
Innovative agreement exploring
core competences:Fibria’s
commercial expertise and the
recognizedKlabin’s industrial efficiency.
1Klabin is going to sell most of the
Puma Project hardwood pulp to
Fibria.
43
2Klabin is going to sell the remaining
hardwood pulp in South America,and softwood and fluff pulp globally.
Fibria will continue to place its
hardwood pulp in all regions,
including South America, on a
competitive basis.
INCOME STATEMENT
8/9/2019 Institutional Presentation 1Q15
40/41
numbers in thousand R$
∆ ∆
4Q14/3Q14 4Q14/4Q13 Gross Revenue 1,518,233 1,540,725 1,485,726 -1% 2% 5,900,091
Net Revenue 1,257,110 1,282,208 1,236,221 -2% 2% 4,893,882
Change in fair value - biological assets 19,644 252,784 56,362 -92% -65% 924,104
Cost of Products Sold (919,770) (909,269) (845,033) 1% 9% (3,573,609)
Gross Profit 356,984 625,723 447,550 -43% -20% 2,244,377
Selling Expenses (95,853) (98,218) (96,777) -2% -1% (379,726)
General & Administrative Expenses (83,171) (69,367) (76,666) 20% 8% (298,350)
Other Revenues (Expenses) 42,985 15,384 (1,342) 179% N/A 84,785
Total Operating Expenses (136,039) (152,201) (174,785) -11% -22% (593,291)
Operating Income (before Fin. Results) 220,945 473,522 272,765 -53% -19% 1,651,086
Equity pickup 14,268 23,032 4,860 -38% 194% 48,649
Financial Expenses (224,971) (226,856) (119,667) -1% 88% (654,932)
Financial Revenues 131,778 149,318 64,803 -12% 103% 535,340
Net Foreign Exchange Losses (357,697) (420,970) (193,655) -15% 85% (526,520)
Net Financial Revenues (450,890) (498,508) (248,519) -10% 81% (646,112)
Net Income before Taxes (215,677) (1,954) 29,106 10938% N/A 1,053,623
Income Tax and Soc. Contrib. 88,306 8,963 (7,586) 885% N/A (323,293)
Net income (127,371) 7,009 21,520 N/A N/A 730,330
Depreciation and amortization 295,216 222,366 216,749 33% 36% 951,965
Cost of carrying out assigned to property - land 3,169 - - N/A N/A 3,169
Change in fair value of biological assets (19,644) (252,784) (56,362) -92% -65% (924,104)
Vale do Corisco 8,708 8,326 9,330 5% -7% 35,972
Adjusted EBITDA 508,394 451,430 442,482 13% 15% 1,718,088
(R$ thousand) 4Q14 3Q14 4Q13 2014
BALANCE SHEET
8/9/2019 Institutional Presentation 1Q15
41/41
numbers in thousand R$
Current Assets 7,899,676 4,826,148 Current Liabilities
Cash and banks 400,684 130,836 Loans and financing
Short-term investments 4,845,149 2,599,036 Debentures
Securities 497,604 249,511 Suppliers
Receivables 1,148,676 1,145,154 Income tax and social contribution
Inventories 563,709 495,852 Taxes payable
Recoverble taxes and contributions 331,968 120,050 Salaries and payroll charges
Other receivables 111,886 85,709 REFIS Adherence
Other accounts payable
Noncurrent Assets 13,274,179 10,093,348
Long term Noncurrent Liabilities 1
Taxes to compensate 428,884 123,684 Loans and financing
Judicial Deposits 84,689 90,969 Debentures
Other receivables 236,050 171,322 Deferred income tax and social contribution
Other investments 494,747 466,581 Other accounts payable - Investors SCPs
Property, plant & equipment, net 8,351,387 5,909,507 REFIS Adherence
Biological assets 3,667,085 3,321,985 Other accounts payable
Intangible assets 11,337 9,300
Stockholders´Equity
Capital
Capital reserve
Revaluation reserve
Profit reserve
Valuation adjustments to shareholders'equity
Treasury stock
Total 21,173,855 14,919,496 Total 2
Assets dec-14 dez-13 Liabilities and Stockholders' Equity
Top Related