Institutional Presentation. May 2012

Transcription

1 Institutional Presentation May

2 Forward looking statement 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

3 Business units Wood logs 7% * Kraftliner 14% * Coated boards 34% * Total net revenue: R$ 3.9 billion in 2011 Corrugated boxes 31% * Industrial bags 13% * Notes: * Percentage of 2011 net revenue. In 2011, 1% of sales volume was composed of other products. 3

4 A company 100% integrated Domestic market wood logs planted forests: 243 thousand ha pulp coated boards pine and eucalyptus short fiber and long fiber pulp Domestic & export markets industrial bags kraftliner Domestic market o.c.c. recycled paper corrugated boxes paper capacity: 1.9 mi tonnes Notes: All figures refer to installed production capacity. OCC Old Corrugated Container 4

5 Forestry base March, Km * 51 Km * 95 Km * 51 Km * Paraná São Paulo Santa Catarina 73 Km * 73 Km * (thousand ha) Eucaliptus 82 Pine 161 Planted area 243 Native 212 Others 51 Total 506 Note: All forests used in the paper production are certified by FSC (Forest Stewardship Council ). * Average distance excluding Vale do Corisco. Klabin Vale do Corisco 5

6 Klabin today 6

7 High performance Culture Team building; Sense of urgency: bureaucracy versus agility; Compensation linked to results; Alignment and strategy development: stock incentives. Operational Cost reduction plans in the mills; Forestry benchmarking; High-return investments; Reverse outsourcing. 7

8 High performance Operational cost (fixed and variable) reduction - Achievements Cost reduction at Monte Alegre mill: INDG; Reversion of excessive outsourcing. Restructuring of the forestry departments; High return projects R$ 129 million investment: Project: Cost savings: Start-up: Biomass boiler in Otacílio Costa mill R$ 14 million py Mar 11 Evaporation improvement in Otacílio Costa mill R$ 19 million py Oct 11 New transmission line in Monte Alegre R$ 18 million py Nov 11 8

9 Sustainable cash cost reduction Nominal cash cost (R$ / tonne) -5% 0% Cash cost: 1,645 1,612 1,561 1,566 Sustainable improvements since September Q11 3Q11 4Q11 1Q12 9

10 To be implemented Operational cost (fixed and variable) reduction to come Forestry cost reduction: INDG; Benchmark: improvements in harvesting and timber transportation; Reversion of excessive outsourcing. Reduction in G&A; High return projects R$ 177 million investment: Project: Cost savings: Start-up: Biomass boiler in Correia Pinto mill R$ 28 million py May 12 Mechanization and soil preparation investments R$ 12 million py Jun 12 Debottlenecking in Monte Alegre mill R$ 37 million py Sep 12 10

11 1Q12 Results 11

12 1Q12 Market environment Brazilian Industrial Production (Inception: 2002 average = 100) Brazilian Corrugated Shipments (thousand tonnes) Kraftliner price ( /tonne and R$/tonne) -3% 1% -12% ,373 1, Q11 1Q12 1Q11 1Q12 1Q11 1Q12 Kraftliner ( / t) Kraftliner (R$ / t) Source: IBGE, ABPO Brazilian Association of Corrugated Boxes and FOEX 12

13 1Q12 Sales Sales Volume (excluding wood) ( thousand tonnes) Net Revenue (R$ million) -4% 1% % 35% 26% 24% 61% 65% 74% 76% 1Q11 1Q12 1Q11 1Q12 Domestic Market Export Market 13

14 1Q12 Result EBITDA and EBITDA margin (R$ million) 25% 26% % 311 Cash generation : Consistent growth despite weaker market environment 1Q11 1T11 1Q12 1T12 14

15 Coated boards LPB 4 th largest player in the world; Sales volume (thousand tonnes) Net revenue (R$ million) Sales to Brazil, Argentina, China, Singapore, Pakistan and Spain. -2% 5% FBB Brazilian market (thousand tonnes) % 46% % 54% 13% 18% 25% 27% 29% 31% Q12 Brazilian market Klabin's share 1Q11 1Q12 Domestic Market Export Market 1Q11 1Q12 Note: LPB Liquid packaging board FBB Folding box board 15

16 Kraftliner Containerboard World Capacity (million tonnes) Sales volume (thousand tonnes) Net revenue (R$ million) Virgin fiber kraftliner 34 Recycled 104 Semi-chemical 9 Total % -17% URUGUAI Virgin fiber kraftliner capacity totals 2 million tonnes in Brazil; Non-integrated producers have their cost determined by the price of OCC; World virgin fiber kraftliner capacity: 34 million tones. 71% 29% 66% 34% Domestic Market 1Q11 1Q12 Export Market 1Q11 1Q12 16

17 Corrugated boxes Sales volume (thousand tonnes) Net revenue (R$ million) -2% 0% Domestic market only; Brazilian demand in 2011 was 3.2 million tonnes *; Klabin s market share: 16%; Fragmented market with many players in Brazil. 1Q11 1Q12 1Q11 1Q12 * Source: ABPO Brazilian Association of Corrugated Boxes 17

18 Industrial bags Sales volume (thousand tonnes) Net revenue (R$ million) 4% 14% Domestic and export markets; Few producers in Brazil; 80% building industry related. 1Q11 1Q12 1Q11 1Q12 18

19 EBTIDA % 32% 35% % % % % 29% 26% 26% 26% 25% % % % 25% 20% 15% 10% 100 5% 0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 0% 3Q11: improvements since September; 3Q11 x 3Q10 4Q11 x 4Q10 1Q12 x 1Q11 10% growth 38% growth 25% growth EBITDA EBITDA Margin 19

20 Strategy 20

21 New pulp line study 21

22 New pulp line study Flex mill (long and short fibers); Capital structure to dilute risks; Capacity of 1.5 million tonnes / year (0.5 million tonnes long fiber and 1.0 million tonnes short fiber); 150 MW of electricity in excess; Lowest cash cost producer; High return with conservative assumptions; Total investment of US$ 3.8 billion includes: US$ 1 billion of land and forests; US$ 250 million for energy generation and flexibility; US$ 250 million of infrastructure. 22

23 Flexibility Ü 6 products / markets versus eucalyptus (1 product and market). Eucalyptus Long Fiber Tissue Specialties Packaging Tissue Less market volatility; Consumer goods; Cash flow stability; Higher value added products; Fluff Diapers and absorbent Fluff domestic market opportunity. 23

24 High return Spread 350 (US$/tonne) Feb/07 Apr/07 Jun/07 Aug/07 Oct/07 Dec/07 Feb/08 Apr/08 Jun/08 Aug/08 Oct/08 Dec/08 Feb/09 Apr/09 Jun/09 Aug/09 Oct/09 Dec/09 Feb/10 Apr/10 Jun/10 Aug/10 Oct/10 Dec/10 Feb/11 Apr/11 Jun/11 Aug/11 Oct/11 Dec/11 Feb/12 Apr/12 Source: Risi Softwood x Eucalyptus Fluff x Eucalyptus 24

25 High return Spread (US$/tonne) Eucalyptus pulp price (US$/tonne) Q12: Hike in Eucalyptus pulp price Oct/11 Nov/11 Dec/11 Jan/12 Softwood x Eucalyptus Feb/12 Mar/12 Apr/12 Fluff x Eucalyptus Oct/11 Nov/11 Dec/11 Jan/12 Feb/12 Eucalyptus price Mar/12 Apr/12 Source: Risi 25

26 Average hauling distance Average hauling distance Monte Alegre: 50 Km Average hauling distance new mill: 80 Km 26

27 Lower cost Outbound logistics Paranaguá Port Klabin area m² 17 km Pulp mill 424 km Paranaguá Port Paraná Terminal To be constructed Existing railroad to Paranaguá Port 27

28 World pulp cash cost (FOB) (US$ / tonne) Bleached hardwood Bleached softwood Klabin Pulp mill Brazil Russia Chile Indonesia Iberia & Norway Finland USA Canada France/Belgium Sweden China Klabin Pulp mill Russia Chile USA New Zealand Finland BC Interior & Alberta Fra/Aus/Ger Sweden Eastern Canada BC Coast Source: Klabin and Hawkins Wright, February 2012 FOB 28

29 Capital structure Capex Klabin SA Equity Debt US$ 2 bi US$ 1.8 bi 51% to 55% Total US$ 3.8 bi Klabin s contribution: Klabin Pulp 45% to 49% Investors mainly forests (estimated value of US$ 1 billion). 29

30 Latest updates EIA RIMA In April 26 th, Klabin filled the Environmental Impact Report and Environmental Impact Assessment (EIA-RIMA), at the Environmental Institute of Paraná (IAP), in Paraná State. The document indicates that the new mill will take place in the city of Ortigueira. 30

31 New paper machine in Correia Pinto Sack kraft paper production with capacity of 80 thousand tonnes per year; Supplied by already available long fiber pulp; Substitution of purchased paper cost reduction; Enables growth in industrial bags capacity; R$ million capex; Start-up in Jan

32 New recycled paper machine in Angatuba Recycled paper production line with capacity of 350 thousand tonnes per year; State of the art machine; Substitution of older lines cost reduction; More flexibility in corrugated products. 32

33 Appendix 33

34 Shareholder structure 03/31/2012 Monteiro Aranha 20% BNDES 14% 15% Treasury 5% Brazilian investors 43% Brazilian investors 20% Klabin Irmãos 60% Foreign investors 38% 37% 316,827,563 shares 600,855,733 shares Level 1 of Corporate Governance at BM&FBovespa Tag along rights of 70% for preferred shares Average daily trading volume in 2011 R$ 15 million Dividends in 2011 R$ 207 million (yield 4%*) Note: * over the price of the beginning of

35 Income statement 1Q12 4Q11 1Q11 Gross Revenue Net Revenue Change in fair value - biological assets (1.569) Cost of Products Sold ( ) ( ) ( ) Gross Profit Selling Expenses (80.128) (82.059) (85.750) General & Administrative Expenses (59.565) (73.038) (55.341) Other Revenues (Expenses) (4.358) (9.124) Total Operating Expenses ( ) ( ) ( ) Operating Income (before Fin. Results) Equity pickup (429) Financial Expenses (89.152) (96.303) ( ) Financial Revenues Net Foreign Exchange Losses (42.229) Net Financial Revenues (64.199) Net Income before Taxes Income Tax and Soc. Contrib. ( ) (83.105) (87.842) Net income Depreciation and amortization Change in fair value of biological assets ( ) ( ) Vale do Corisco EBITDA Note: Due to rounding, some figures in tables may not result in a precise sum. 35

36 Net Debt Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 2,528 2,462 2,,106 2,,128 2, , ,313 2,735 2,674 Net Debt (R$ million) Net Debt / EBITDA (LTM) LTM Last Twelve Months 36

37 Loan maturity schedule R$ Million 1, Foreign Currency 4, Q12 3Q12 4Q12 1Q13 9M Forward Local Currency 1,598 Gross Debt 5,606 Local currency: R$ 1.6 billion Average tenor: 32 months Foreign currency: R$ 4.0 billion Average tenor: 50 months 37

38 Wood Forests (thousand hectares) thousand ha Paraná * Santa Catarina São Paulo Total Pine Eucalyptus Native Others Total Sales volume (thousand tonnes) Net revenue (R$ million) % 1Q11 1Q12 4Q11 1Q12 1Q11 1Q12 4Q11 1Q12 Notes: Forestry base in December 31 st, Includes Vale do Corisco acquisition. 38

39 OCC Price OCC - Domestic delivered price (R$ / tonne) Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Quarter average Monthly price OCC Old Corrugated Containers. 39

40 Corrugated boxes shipments ABPO (Thousand tonnes) Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Quarter average Monthly volume Source: Brazilian Corrugated Boxes Association 40

41 Imports Apparent consumption Share of imports (thousand tonnes) 2010 * 2011 * 2010 * 2011 * Newsprint ,0% 76,2% Uncoated printing and writing ,9% 5,7% Coated printing and writing ,0% 58,4% Coated boards FBB ,4% 7,1% Kraftliner ,2% 0,4% Effective imports of goods packed (monthly average - tonnes) 2009 ** 2010 ** 2011 ** 2011 ** / 2010 ** Industrialized food 252, , ,261 29% Pharmaceutical 2,727 3,201 3,239 1% Toys 2,550 3,611 4,235 17% Hygiene 3,846 5,761 6,814 18% Footwear 1,506 1,320 1,602 21% Note: * January to December Source: Bracelpa (Brazilian Association of Pulp and Paper) ** January to December Source: SECEX / MDIC - Receita Federal SP. 02/29/

42 High performance Change in compensation metrics for performance improvement Ü Klabin adopted new metrics of variable compensation according to the best practices of public companies in Brazil. Focus in variable compensation; Aggressive individual and team goals; Long-term incentives through equity grants (matching); Started with all executive officers and directors. Better performance; Alignment; Improvement of strategic behavior. 42

43 IR Team Phone: