institutional presentation 1q15

8/9/2019 Institutional Presentation 1Q15

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INSTITUTIONAL PRESENTATION – 1Q15JUNE, 2015

KLBN11


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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.


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CONSISTENTPERFORMANCE


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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


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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


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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


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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


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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


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PUMAPROJECT


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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


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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%


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INDUSTRIA46%

national equipments andmaterials

14%

importedequipments

14%

engineeringand otherservices

27%

civil construction and

assembly

INDU

FULL


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LOM

72 Kmforestry average

distance

PULP MILLFORESTS

441 Kmrailway to the port

INBOUND OUTBOUND


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EARNINGS1Q15


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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


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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


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CORRUGATED BOXES (7)

INDUSTRIAL BAGS (3)

CORRUGATED BOXES ANDINDUSTRIAL BAGS (1)

1Q14

173thousand

tonnes525R$ million

536R$ million

1Q14 1Q15

CONVERSIONMARKET POSITION

+


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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


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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)


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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


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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


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Investor Relationswww.klabin.com.br/[email protected]: +55 (11) 3046-8401


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APPENDIXEARNINGS1Q15PUMA MARKET

COMMERCIAL CONTRACT


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PUMAPULP MARKET

PULP


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PULP

long fib

PUDIS

Source: Hawkins Wright; RISI

52.6million tonnes

market pulp

112million tonnes

integrated pulp

164mm t

VIRGINFIBERPULP

PUMA 6th LARGEST PU


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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


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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


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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


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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


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COMPOSITION OF D

30% TO 50% OF THE AVERAGE WEIGHTOF A DIAPER IS COMPOSED OF FLUFF (20 TO 40G)

SPREADS AMONG DIFFERENT


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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


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5milliontonnes

CIF: COST, INSURANCE AND FREIGHT INCLUDED

GLOBAL CASH COST (SHORT

PUMA

CIF EUROPEUS$/TONNE

400

500

10milliontonnes

15milliontonnes

20milliontonnes

25milliontonnes

Source: Hawkins Wright


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KLABIN & FIBRIACOMMERCIAL CONTRACT

HARDWOOD PULP

Contract Rationale


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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


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hardwood9 0 0 kt

forestry

pulp

plant

Paranaguá Port(PR)

Same price as Fibria

FOB Paranaguá

KLABINindustrial efficiency

FIBcommercia

Timeline


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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


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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


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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


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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


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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

institutional presentation 1q15

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