INSTITUTIONAL PRESENTATION 2Q16 KLBN11 DEZEMBRO DE 2015 KLBN11 / KLBAY
DISCLAIMER 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. 2
INTEGRATED BUSINESS MODEL DIVERSIFIED AND FLEXIBLE TOTAL LAND 489k hectares FIBERS 3.5 tpy PUMA PULP 1.1mi tpy short fiber 0.4mi tpy long fiber & fluff pulp PAPER 2.0 tpy PLANTED FORESTS 230k hectares PINE 140k hectares EUCALYPTUS 90k hectares INTEGRATED PULP 1.8mi tpy COATED BOARDS 750k tpy CONTAINERBOARDS 1.25mi tpy CONVERSION 820 thousand tpy CORRUGATED BOXES 680k tpy INDUSTRIAL BAGS 170k tpy * Installed capacity RECYCLED FIBERS 265 THOUSAND TPY
STRUCTURAL COMPETIVENESS HIGH PRODUCTIVITY ON FIBERS Forestry Pine 46 38 22 22 10 7 4 4 Eucalyptus 58 44 25 20 m³/ha/year 12 10 6 4 PLANTED AREA 230 TSD TSD HECTARES OF HIGH YIELD FOREST a b c d e f g a b c d e f g Mean Annual Increment (MAI) - KLABIN LOW AVERAGE HAULING DISTANCE PR with PUMA 66 Km SC 74 Km Pine 50 40 30 24 31 35 39 42 42 44 46 47 Eucalyptus 70 60 50 40 35 26 30 41 50 52 58 m 3 cc/há/year 61 65 20 20 <69 70-89 90-04 05 06-09 10-11 12-15 16-20 21-25E <73 74-85 85-95 95-05 05-11 12-15 16-20 21-25E * Source: Ibá and Klabin
STRUCTURAL COMPETITIVENESS SOFTWOOD AND HARDWOOD 409 462 Softwood 447 Hardwood 288 272 335 PUMA 174 FOB US$/TONNES 5 tonnes 10 tonnes 15 tonnes 20 tonnes 25 tonnes 30 tonnes ANNUAL CAPACITY Source: Hawkins Wright april 2016
STRUCTURAL COMPETIVENESS LOW CASH COST POSITION BEST CASH COST ON LPB PRODUCTION 35% LOWER THAN OTHER PLAYERS PM9 PM7 production cost USD/tonnes production capacity LPB PRODUCTION SITES CASH COST (US$/T) * Source: Poyry 4Q15, 1US$ = R$ 3,50
PAPER AND PACKAGING LEADERSHIP IN RESILIENT MARKETS KRAFTLINER Market Share* 40% COATED BOARDS Market Share 50% MARKETS DESTINATION 13% Other consumer goods Building 8% INDUSTRIAL BAGS CORRUGATED Food 67% Others Market Share 50% Market Share 17% * Of Brazilian installed capacity
PULP MARKETS DIFFERENT FIBERS, DIFFERENT MARKETS KLABIN, A PULP SOLUTION EUCALYPTUS PULP BEKP IN BALES PINE PULP BSKP IN BALES LONG FIBER FLUFF IN REELS
1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.9 2.0 939 1,027 1,089 1,180 1,286 1,351 1,424 1,452 1,504 1,562 1,602 1,627 1,652 1,718 1,755 1,812 1,881 1,975 2,026 2,173 CONSISTENT PERFORMANCE 20 th QUARTER OF CONSECUTIVE GROWTH Adjusted EBITDA LTM R$ SALES VOLUME LTM Excluding wood tonnes sep 11 dec 11 mar 12 jun 12 sep 12 dec 12 mar 13 jun 13 sep 13 dec 13 mar 14 jun 14 sep 14 dec 14 mar 15 jun 15 sep 15 dec 15 mar 16 jun 16 LTM: Last twelve months
Ajusted EBITDA LTM R$ KLABIN FUTURE INTEGRATION IN PAPER PAPER MACHINE 10 PAPER MACHINE 11 2,173 PUMA START PUMA RAMP UP 922 jun2011 jun2016 2021 CONSISTENT RESULTS FUTURE GROWTH
2Q16 RESULTS
SALES VOLUME, NET REVENUE AND EBITDA SALES VOLUME Excluding wood- tsd tonnes NET REVENUE R$ ADJUSTED EBITDA R$ 435 32% 68% 631 50% 50% EXPORTS DOMESTIC MARKET 1.338 28% 72% 1.699 40% 60% 391 538 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16
PAPER BUSINESS UNIT COATED BOARDS KRAFTLINER SALES VOLUME NET REVENUE SALES VOLUME NET REVENUE 156 41% 159 42% 457 R$ 506 R$ 98 68% 103 72% 189 R$ 201 R$ 59% 58% 2Q15 2Q16 2Q15 2Q16 EXPORTS DOMESTIC MARKET 32% 28% 2Q15 2Q16 2Q15 2Q16
CONVERSION BUSINESS UNIT SALES VOLUME NET REVENUE 172 tsd tonnes 177 tsd tonnes 551 R$ 589 R$ 2Q15 2Q16 2Q15 2Q16
PULP NEW BUSINESS UNIT SALES VOLUME NET REVENUE 181 90% 286 R$ 0 2Q15 10% EXPORTS 0 R$ DOMESTIC 2Q16 MARKET 2Q15 2Q16
CASH COST 2Q16 UNIT CASH COST 2Q16 R$ per tonne 2,216 1,856 Electricity 8% Maintenance materials / stoppage 13% CASH COST BREAKDOWN 2Q16 Others Fuel Oil 5% 2% Labor / third parties 37% Freight 11% 2Q15 2Q16 Chemicals 11% 3Wood / Fibers 15%
CAPEX CAPEX R$ 2013 2014 2015 2016E maintenance 369 384 455 567 special projects and growth 231 319 129 95 PUMA project 99 2,242 4,053 1,753 total 899 2,945 4,627 2,415
Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 3.437 3.595 2.711 2.824 3.985 4.028 5.242 7.440 8.144 11.614 12.411 12.009 11.382 NET DEBT AND LEVERAGE 17.000 15.000 13.000 11.000 9.000 7.000 5.000 3.000 1.000 (1.000) Average Cost Average Tenor Local Currency 10.2% p.y. 40 months Foreign Currency 4.6 % p.y. 50 months Gross Debt 47 months NET DEBT AND LEVERAGE 4,2 3,0 2,4 2,4 2,6 2,4 1,7 1,7 4,5 6,2 6,3 5,9 5,2 7,0 6,5 6,0 5,5 5,0 4,5 4,0 3,5 3,0 2,5 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 Net Debt (R$ ) Net Debt/EBITDA (R$)
5,810 DEBT MATURITY R$ Cash position R$ R$ 358 2,287 2,249 2,266 1,391 1,571 1,647 2,744 1,106 Foreign 1,510 Currency 932 1,189 1,106 12,024 770 666 932 896 1,189 575 770 426 666 896 678 358 575 429 619 526 426 678 Local 429 619 237 404 200 526 343 Currency 121 146 266 404 200 343 244 5,168198 266 244 198 1 1 3Q16 4Q16 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025/26 237 121 146 2,287 2,249 2,266 1,391 1,571 1,647 3Q16 4Q16 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025/26 1,554 2,744 1,554 2,096 1,569 2,096 1,569 1,510 2,139 1,895 2,139 1,895 Foreign Currency 12,024 Gross Debt 17,192 Local Currency 5,168 Gross Debt 17,192 Local currency : R$ 5.6 billion Average tenor: 40 months Local currency : R$ 5.6 billion Average tenor: 40 months Foreign currency: R$ 12 billion Average tenor : 50 months Foreign currency: R$ 12 billion Average tenor : 50 months
INVESTOR RELATIONS www.klabin.com.br/ri invest@klabin.com.br +55 (11) 3046-8401
APPENDIX PULP AND PAPER MARKETS
GLOBAL PULP INCREASING DEMAND IN BOTH FIBERS SHORT FIBER LONG FIBER 28.9 30.0 31.0 CAGR +3% 32.3 33.2 34.1 35.0 Latin America 23.7 24.3 24.7 CAGR +2% 25.0 25.4 26.2 26.2 North America Asia/ Africa Europe China 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Source: Hawkins Wright Million tons per year CHINA LEADS THE GROWTH
FLUFF BRAZIL IS THE 3RD LARGEST MARKETOF DISPOSABLE DIAPERS IN THE WORLD SALES OF DIAPERS FOR ADULTS R$ 2.733 2.430 2.133 1.861 1.605 1.005 1.183 1.363 788 610 3.042 3.377 3.398 SALES OF DIAPERS FOR INFANT R$ 4.000 4.645 4.827 5.279 5.768 6.272 6.790 7.297 7.864 8.468 9.139 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fonte: Euromonitor
USD/TONNE SPREADS AMONG DIFFERENT FIBERS Fluff vs Short Fiber 330 Long fiber vs Short Fiber 95 Jan/2013 Jun/2013 Nov/2013 Apr/2014 Sep/2014 Feb/2015 Jul/2015 Dec/2015 May/2016 Source: RISI
PACKAGING MARKETS FOCUS IN LARGE AND GROWING MARKETS Demand growth per year 4% 3% 2% PAPER MARKETS DEMAND (2014-2030) Tissue KLABIN Pulp Containerboards KLABIN kraftliner and recycled paper Cartonboards KLABIN coated boards 1% 0% -1% Market B Market D Market E Sackpaper KLABIN sack kraft and industrial bags -2% -3% -4% Market C Market A KLABIN MARKETS 0% 20% 40% 60% 80% 100% Source: POYRY Share of consumption in 2014
US$/ton 2004 2004 2004 2005 2005 2006 2006 2006 2007 2007 2008 2008 2009 2009 2009 2010 2010 2011 COATED BOARDS LOW VOLATILITY PRICES 2011 2011 2012 2012 2013 2013 2014 2014 2014 2015 2015 2016 1200 1100 1000 900 800 700 600 500 400 BHKP NBSK Coated Boards * Fonte: FOEX e RISI *SBS Solid Bleached Sulfate folding carton USA