INSTITUTIONAL PRESENTATION 2Q15

Transcription

1 INSTITUTIONAL PRESENTATION 2Q15 AUGUST, 2015 KLBN11 KLBN11 / KLBAY

2 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

3 CONSISTENT PERFORMANCE

4 INTEGRATED BUSINESSES COMPETITIVENESS TROUGH ALL THE CHAIN FOREST PULP PAPER and CONVERSION 243 thousand ha 1.7 million tonnes COATED BOARDS 750 thousand tonnes 220 thousand tonnes INDUSTRIAL BAGS (160 k tonnes) and SACK KRAFT 330 thousand tonnes CORRUGATED BOXES (650 k tonnes) and KRAFTLINER 1,050 thousand tonnes EUCALYPTUS AND PINE FORESTS OLD CORRUGATED CONTAINERS HIGH YIELD FOREST INDUSTRIAL EFFICIENCY HIGH QUALITY and FLEXIBILITY 4

5 50% COATED BOARDS INDUSTRIAL BAGS LOW COST QUALITY sole supplier of liquid packaging board in Latin America market share LEADER IN BRAZIL IN ALL MARKETS installed capacity KRAFTLINER CORRUGATED BOXES DIVERSIFIED PRODUCT LINE 40% MARKET POSITION STRONGLY LINKED TO RESILIENT MARKETS 7% building 12% others food 13% other consumer goods 68% 50% source: ABPO, IBÁ market share market share 16% SALES VOLUME DESTINATION PAPER AND PACKAGING 5

6 BUSINESS EVOLUTION TIMELINE on PERFORMANCE IMPROVEMENT PAPER EXPANSIONS - COMPLETED PUMA PULP MILL NEW GROWTH OPPORTUNITIES 1,7 MILLION TONNES 2,0 MILLION TONNES 3,5 MILLION TONNES INCREASED RESULTS AND SET THE PATH FOR FUTURE GROWTH 6

7 35% 30% 25% EBITDA GROWTH CONSISTENT RESULTS DESPITE CHALLENGING SCENARIOS 31% % CHANGE VS PREVIOUS YEAR 20% 15% 10% 5% 7% 16% 10% 0% -5% EBITDA KLABIN BRL/US$ Brazil GDP World GDP -10% *LTM = Last twelve months

8 adjusted EBITDA LTM - R$ million ,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, EBITDA GROWTH SUSTAINABLE PERFORMANCE PERFORMANCE IMPROVEMENT EXPANSION OF CAPACITY 8

9 PUMA PROJECT

10 10

11 LOW OPERATION COST ANNUAL PRODUCTION CAPACITY 1.5 MILLION TONNES OF PULP 1.1 MILLION TONNES OF SHORT FIBER 400 THOUSAND TONNES OF LONG FIBER PART CONVERTED TO FLUFF PRODUCTION OF 270 MWh of ENERGY SELF SUFFICIENT 120 MWh FOR PUMA USE 150 MWh FOR SALE IN THE MARKET 11

12 CURRENT STATUS COMPLETION areas delivered to EPC s 100% of earthmoving concluded Assembly started EPC s with Klabin coordination dedicated team: strong feedback and control 95% of equipment supplies, materials and services concluded COST lower dependency on imported equipments EUR 365 million 75% 0% OF THE PROJECT COMPLETED 100% 54% 0% OF THE CAPEX DISBURSED 100% 12

13 46% INDUSTRIAL CAPEX 14% TOTAL CAPEX R$ 7.2 BI national equipments and materials 14% imported equipments 27% INDUSTRIAL CAPEX R$ 5.8 BI NET OF RECOVERABLE TAXES engineering and other services civil construction and assembly PROJECT FULLY FUNDED 13

14 LOGISTICS MULTIMODAL 72 Km forestry average distance 441 Km railway to the port FORESTS PULP MILL PARANAGUÁ PORT INBOUND OUTBOUND 14

15 EARNINGS 2Q15

16 SALES VOLUME excluding wood tsd tonnes NET REVENUE R$ million HIGHLIGHTS ADJUSTED EBITDA R$ million % % 1,151 22% 1,338 28% % 68% 78% 72% 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 exports domestic market 16

17 COATED BOARDS PAPER BUSINESS UNIT KRAFTLINER (3) KRAFTLINER AND COATED BOARDS (1) RECYCLED (2) KRAFTLINER 149 thousand tonnes 42% 58% 156 thousand tonnes % R$ million 59% 457 R$ million 86 thousand tonnes 59% 98 thousand tonnes % R$ million 189 R$ million 41% 33% 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 2Q14 2Q15 exports domestic market 17

18 CONVERSION MARKET POSITION CORRUGATED BOXES (7) CORRUGATED BOXES AND INDUSTRIAL BAGS (1) INDUSTRIAL BAGS (3) 534 R$ million 551 R$ million 178 thousand tonnes 172 thousand tonnes 2Q14 2Q15 + 2Q14 2Q15 18

19 CASH COST UNIT CASH COST CASH COST BREAKDOWN 2Q15 2,017 R$/tonne 2,193 R$/tonne Electricity 7% Maintenance materials / stoppage 14% Others 6% Labor / third parties 32% Fuel Oil 3% 2Q14 2Q15* Freight 11% Chemicals 13% Wood / Fibers 14% *Excluding non-recurring itens from other operating revenues and expenses 19

20 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 2,674 3,014 3,090 3,278 3,136 2,711 2,824 3,437 3,595 3,985 4,028 5,242 7,440 8,144 10,000 8,000 6,000 4,000 2, Gross Debt Cash Net Debt in 06/30/15 R$ 13.3 billion R$ 5.2 billion R$ 8.1 billion NET DEBT Net Debt (R$ million) Net Debt / EBITDA (LTM) 20

21 CAPEX CAPEX R$ million E 2016E maintenance 3T T T T T T special projects and growth vale do corisco PUMA project ,242 3,437 1,844 total ,945 4,172 2,322 21

22 Investor Relations Phone: +55 (11)

23 APPENDIX PUMA MARKET COMMERCIAL CONTRACT

24 PUMA PULP MARKET

25 PULP MARKET million tonnes 164 mm t 52.6 million tonnes VIRGIN FIBER PULP PULP MARKET DISTRIBUTION long fiber 45% 33% eucalyptus 22% integrated pulp market pulp other short fibers Source: Hawkins Wright; RISI 25

26 LARGEST MARKET PULP MILLS OF THE WORLD million tonnes per year in 2014 Fibria Aracruz 2,340 PUMA: 6 th LARGEST PULP MILL April Riau 2,200 April Rizhao 1,700 WORLD DEMAND million tonnes per year in 2014 CMPC Guaíba 1,690 Suzano Mucuri 1,565 Klabin 1,500 short fiber market pulp Suzano Maranhão 1,500 Eldorado 1,500 Montes del Plata 1,300 eucalyptus Source: Hawkins Wright 26

27 4 th LARGEST IN FLUFF WORLD CAPACITY OF FLUFF thousand tonnes per year in 2014 GP Weyco IP Puma Klabin Domtar Resolute Stora Arauco Rock Tenn Rayonier UPM Source: Hawkins Wright 1,045 1,420 the only designed to produce fluff from the start 2,296 mills converted in fluff mills WORLD DEMAND million tonnes per year in ,7 fibra longa SBSK = pinus long fiber from USA 6,4 fluff and SBSK 27

28 FOCUS ON CONSUMER MARKETS MARKET PENETRATION IN DISPOSABLE DIAPERS 2013 SOPHISTICATION AND INNOVATION IN HIGHER VALUE ADDED PRODUCTS USA 96% high potential of growth BRA 50% ARG 72% Source: RISI, Euromonitor 28

29 BRAZIL IS THE 3 RD LARGEST MARKET OF DISPOSABLE DIAPERS IN THE WORLD SALES OF DIAPERS FOR ADULTS R$ billion SALES OF DIAPERS FOR INFANT R$ billion Source: Euromonitor 29

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

31 SPREADS AMONG DIFFERENT FIBERS CIF EUROPE US$/TONNE 235 fluff x short fiber 15 long fiber x short fiber jul 13 aug 13 sep 13 oct 13 nov 13 dec 13 jan 14 feb 14 mar 14 apr 14 may 14 jun 14 jul 14 aug 14 sep 14 oct 14 nov 14 dez 14 jan 15 feb 15 mar 15 apr 15 may 15 Source: RISI, FOEX 31

32 GLOBAL CASH COST (SHORT FIBER) CIF EUROPE US$/TONNE 400 PUMA 5 million tonnes 10 million tonnes 15 million tonnes 20 million tonnes 25 million tonnes ANNUAL CAPACITY Source: Hawkins Wright CIF: COST, INSURANCE AND FREIGHT INCLUDED 32

33 KLABIN & FIBRIA COMMERCIAL CONTRACT HARDWOOD PULP

34 Contract Rationale Puma Project 1. 5 mt/year 1.1 mt of hardwood 400 kt of softwood, part converted to fluff Sale minimum 900 kt of hardwood / year 200 kt of hardwood / year kt of softwood / year EXPORTS EXCEPT SOUTH AMERICA SOUTH AMERICA ALL MARKETS

35 Sales dynamics kt hardwood forestry pulp plant Paranaguá Port (PR) final customer Same price as Fibria FOB Paranaguá KLABIN industrial efficiency FIBRIA commercial expertise

36 Timeline 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 delivered in 2019 Pro rata 50% of the delivered in 2019 End of the contract From start-up date until December 12 months 12 months 12 months 12 months 12 months 72 months after start-up The contract may be renewed by agreement between the parties Volumes may be reduced if Klabin decides to integrate into paper for packaging

37 Agreement benefits Logistics and commercial structure synergies; Ensure sales volumes; Ensure pulp market access with Klabin brand. Logistics and commercial optimization and synergies; Support customers growth and enhance customers needs; Potential development of new customers. Mutual value creation, with better servicing for both Companies customer s base.

38 Highlights 1 Klabin is going to sell most of the Puma Project hardwood pulp to Fibria. 2 Klabin is going to sell the remaining hardwood pulp in South America, and softwood and fluff pulp globally. 3 Fibria will continue to place its hardwood pulp in all regions, including South America, on a competitive basis. 4 Innovative agreement exploring core competences: Fibria s commercial expertise and the recognized Klabin s industrial efficiency.

39 INCOME STATEMENT 2Q15/1Q15 2Q15/2Q14 6M14 6M15/6M14 (R$ thousands) 2Q15 1Q15 2Q14 6M15 Gross Revenue 1,593,961 1,555,081 1,399,323 3% 14% 3,149,042 2,841,133 11% Net Revenue 1,337,936 1,308,449 1,151,093 2% 16% 2,646,385 2,354,564 12% Change in fair value - biological assets 155,230 55, , % 20% 210, ,676-68% Cost of Products Sold (1,058,415) (930,067) (941,718) 14% 12% (1,988,482) (1,744,570) 14% Gross Profit 434, , ,979 0% 28% 868,671 1,261,670-31% Selling Expenses (105,594) (94,461) (87,474) 12% 21% (200,055) (185,655) 8% General & Administrative Expenses (82,927) (74,964) (72,882) 11% 14% (157,891) (145,812) 8% Other Revenues (Expenses) (9,912) (6,033) 17,459 64% N/A (15,945) 26,416 N/A Total Operating Expenses (198,433) (175,458) (142,897) 13% 39% (373,891) (305,051) 23% Operating Income (before Fin. Results) 236, , ,082-9% 21% 494, ,619-48% Equity pickup 5,804 7,535 5,807-23% 0% 13,339 11,349 18% Financial Expenses (163,412) (215,714) (97,103) -24% 68% (379,126) (203,105) 87% Financial Revenues 125, , ,008 6% -5% 244, ,244-4% Net Foreign Exchange Losses 239,104 (1,287,743) 101, % 135% (1,048,639) 252,147 N/A Net Financial Revenues 201,462 (1,384,611) 137,519 N/A 46% (1,183,149) 303,286 N/A Net Income before Taxes 443,584 (1,118,614) 339,408 N/A 31% (675,030) 1,271,254 N/A Income Tax and Soc. Contrib. (147,988) 390,048 (95,890) N/A 54% 242,060 (420,562) N/A Net income 295,596 (728,566) 243,518 N/A 21% (432,970) 850,692 N/A Depreciation and amortization 293, , ,832 17% 14% 544, ,383 25% Cost of carrying out assigned to property - land 7, N/A N/A 7,453 - N/A Change in fair value of biological assets (155,230) (55,538) (129,604) 180% 20% (210,768) (651,676) -68% Vale do Corisco 8,719 8,167 9,550 7% -9% 16,886 18,938-11% Adjusted EBITDA 391, , ,860-15% 17% 852, ,264 12% numbers in thousand R$ 39

40 BALANCE SHEET Assets jun-15 mar-15 Liabilities and Stockholders' Equity jun-15 mar-15 Current Assets 7,802,555 7,992,082 Current Liabilities 3,209,847 3,030,685 Cash and banks 39,881 41,968 Loans and financing 1,697,824 1,620,937 Short-term investments 4,678,747 5,027,182 Debentures 502, ,709 Securities 521, ,934 Suppliers 663, ,378 Receivables 1,240,197 1,273,769 Income tax and social contribution 0 0 Inventories 607, ,794 Taxes payable 36,253 38,330 Recoverble taxes and contributions 579, ,433 Salaries and payroll charges 165, ,670 Other receivables 136, ,002 Dividends to pay 0 101,981 REFIS Adherence 50,400 50,400 Noncurrent Assets 15,342,872 14,282,475 Other accounts payable 94, ,280 Long term Taxes to compensate 913, ,504 Noncurrent Liabilities 13,424,620 13,010,927 Judicial Deposits 84,426 84,879 Loans and financing 9,796,361 9,850,126 Other receivables 201, ,304 Debentures 1,387,647 1,165,761 Other investments 504, ,283 Deferred income tax and social contribution 1,428,556 1,282,760 Property, plant & equipment, net 10,096,021 9,194,472 Other accounts payable - Investors SCPs 136, ,760 Biological assets 3,531,080 3,568,934 REFIS Adherence 377, ,847 Intangible assets 11,413 12,099 Other accounts payable 298, ,673 Stockholders Equity 6,510,960 6,232,945 Capital 2,376,000 2,376,000 Capital reserve 1,301,030 1,301,030 Revaluation reserve 48,730 48,746 Profit reserve 1,879,743 1,599,276 Valuation adjustments to shareholders'equity 1,069,759 1,072,603 Treasury stock (164,302) (164,710) Total 23,145,427 22,274,557 Total 23,145,427 22,274,557 numbers in thousand R$ 40

41 LOAN MATURITY SCHEDULE 1,880 1,920 R$ million 1,813 1, ,744 1,173 1,565 1,467 1, , , Q15 4Q Foreign Currency 8,139 Local Currency 5,245 Gross Debt 13,384 Local currency : R$ 5.2 billion Average tenor: 40 months Foreign currency: R$ 8.1 billion Average tenor : 54 months numbers in R$ million 41