Institutional Presentation November, 2012

Transcription

1 Institutional Presentation November,

2 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.

3 A differentiated company 3

4 4 A differentiated company Competitive forest Market position Industrial technology Superior cost management Clear growth strategy

5 5 Differentiation of forests Brazil Heart of Paraná (logistics and volume) Massive forest Monte Alegre Distribution of rain Soil quality State of Paraná Insolation

6 Forestry productivity Cloning Forestry productivity m 3 /(ha.year) MAI t/(ha.year) Growth Density Factory yield

7 7 Leader in the Brazilian packaging paper market, where we allocate more than 50% of our capacity Market position paper Coated Boards Kraftliner 653 thousand tonnes sold in % market share Sole supplier of liquid packaging board in Latin America % installed capacity thousand tonnes sold in 2011

8 8 Leader in the Brazilian packaging market where we allocate more than 95% of capacity Market position conversion Industrial Bags Corrugated Boxes 50% market share Second player s market share is 16% 15% market share Second player s market share is 9%

9 9 Destination of Klabin s products Strongly linked to the consumer market Food 68% 13% 7% Other consumer goods Building Others Sales volume destination paper and packaging

10 10 Exports Sustainable export capacity One of the three largest suppliers for Tetra Pak in the world, with long term relationship of more than 25 years Export revenues account for approximately US$ 500 million per year

11 11 Constantly investing in the latest equipment and production efficiency Industrial technology Machine 9 of coated boards in Monte Alegre, the best and most modern in Latin America 4 new printers for corrugated boxes Start up of a new corrugator in Goiana (PE) Start up of a new corrugator in Jundiaí DI (SP), the widest and fastest in Brazil and one of the majors of the world

12 12 Matrix control of costs (Falconi) Superior cost control Focus in 2011: Monte Alegre mill Focus in 2012: Forestry Reversion of excessive outsourcing 1,621-1% 1,600 High return investments Mechanical Vapor Recompression (Debottlenecking in Monte Alegre) Biomass boilers in Santa Catarina State High voltage transmission line Evaporation system 9M11 9M12 Nominal cash cost R$ / tonne

13 13 Superior cost control teamwork and proper incentives Group of executives with extensive experience in the market, merged with the hiring of new executives New compensation metrics: individual and collective goals Aggressive targets Variable compensation linked to results, focus on short-term and long-term Long-term incentives through stock matching

14 Adjusted EBITDA LTM 39% growth 28% 29% 31% Adjusted EBITDA LTM Margin 24% % % 1,028 1,089 1,180 1,286 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Adjusted EBITDA LTM (R$ million) EBITDA LTM (R$ million) LTM Last twelve months 14

15 Growth strategy 15

16 16 Clear growth strategy short-term Great performance despite unfavorable economic conjuncture, explained by cost management From now on: economic conditions becoming more favorable Sack kraft machine and recycled paper machine

17 17 Recycled machine in Goiana Klabin (today) Northeast sales: 150 tsd t 100 tsd t Kraftliner production in Monte Alegre: 100 tsd t Recycled production in Goiana: 50 tsd t

18 18 Recycled machine in Goiana Klabin (with project) Northeast sales : 210 tsd t 50 tsd t Kraftliner production in Monte Alegre: 50 tsd t Recycled production in Goiana: 50 tsd t New recycled machine: 110 tsd t South sales: 50 tsd t

19 19 Recycled machine in Goiana Benefits Release and sale of 50 thousand tonnes of kraftliner in the South Sale of 60 thousand tonnes of recycled in the Northeast Reduction in freight of 50 thousand tonnes from South to Northeast Numbers Capex: R$ 300 million IRR: 18% ROE: 28% Start up: August 2014

20 20 Growth strategy long-term Growth on the same site The only company that owns a large pine forest in Brazil Project driven towards domestic market

21 21 Softwood imports in Brazil Large and growing market in Brazil, currently supplied by softwood imports thousand tonnes

22 22 New pulp line project Same site, high productivity Project based on fluff market and Klabin paper needs Flex mill (long and short fibers) Capital structure to dilute risks 150 MW of electricity in excess Lowest cash cost producer High return with conservative assumptions

23 Inbound logistics Average hauling distance New mill 75 Km Average hauling distance Monte Alegre 50 Km Klabin Pulp Klabin SA Vale do Corisco 23

24 24 Outbond Logistics Klabin Area m² Paranaguá Port Paraná Terminal Pulp Mill Existing railroad to Paranaguá Port: 424 km To be constructed: 17 km

25 25 Capital structure Klabin SA US$ 1 billion Investors US$ 1 billion 51% 49% Klabin Pulp US$ 3.8 billion Debt US$ 1.8 billion

26 Financial results 26

27 Sales 1,306 1,290 34% 66% 32% 68% 2,895 22% 78% 3,085 24% 76% Excluding wood sales 9M11 9M12 Sales volume (thousand tonnes) 9M11 9M12 Net revenue (R$ million) Export Market Domestic Market 27

28 28 EBITDA and Net Income M11 9M12 Adjusted EBITDA (R$ million) 60 9M11 Net income (R$ million) 9M12

29 jun-10 set-10 dez-10 mar-11 jun-11 set-11 dez-11 mar-12 jun-12 set ,8 2,2 Net Debt/ EBITDA (LTM) ,106 2,128 2,2 2,1 Dívida Líquida (R$ milhões) 2, ,002 1,893 2, ,313 Net debt 2,5 2,3 2,5 2,4 2,735 2, ,014 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 3,090 Sep-12 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 LTM Last twelve months Endividamento Líquido Net debt (R$ million) Endividamento Liq. / EBITDA (UDM) 29

30 30 3,150 Loan maturity schedule R$ million Cash Q Q Q Q Q Forward Local currency R$1.6 billion Average tenor: 30 months Foreign currency R$ 4.6 billion Average tenor: 44 months Gross debt R$ 6.2 billion

31 31 Capex R$ million 9M E 2013E Maintenance and special projects Sack kraft expansion Recycled expansion Total

32 Appendix 32

33 Shareholder structure Common Preferred Monteiro Aranha 20% BNDES 13% Treasury 5% Brazilian investors 42% Brazilian investors 20% Klabin Irmãos 60% Foreign investors 40% 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 9M12 R$ 23 million Dividends in 2011 R$ 207 million (yield 4%*)

34 34 Capacity Domestic market 2.5 m t wood logs 243 k ha 700 k t eucalyptus and pine forests planted forests: 243 thousand ha 1.7 m t short fiber and long fiber pulp coated boards 960 k t 145 k t industrial bags Domestic and export markets kraftliner Domestic market 250 k t old corrugated containers 200 k t 540 k t recycled paper corrugated boxes

35 35 Paper business unit Kraftliner % % % 9M11 43% 9M12 9M11 9M Coated boards 46% 54% 47% 53% Kraftliner Recycled 9M11 9M12 Thousand tonnes 9M11 Kraftliner and coated boards Domestic market Export market 9M12 R$ million

36 36 Conversion business unit -1% Corrugated boxes 9M11 9M12 9M11 9M12 Corrugated boxes Industrial bags 101 9M M M M12 Industrial bags Corrugated boxes and industrial bags Thousand tonnes R$ million

37 jan-10 mar-10 mai-10 jul-10 set-10 nov-10 jan-11 mar-11 mai-11 jul-11 set-11 nov-11 jan-12 mar-12 mai-12 jul-12 set-12 Imports Exchange rate (R$ / US$) 2,03 1,72 1,87 1,65 Jan 10 Jan 11 Jan 12 May 12 Sep 12 Effective imports of goods packed (monthly average - tonnes) * 2012* / 2011 Industrialized food 286, , ,862-8% Pharmaceutical 3,201 3,239 3,264 1% Toys 3,611 4,235 4,000-6% Hygiene 5,761 6,814 6,631-3% Footwear 1,320 1,602 1,633 2% * January to August Source: SECEX / MDIC - Receita Federal SP. 09/26/

38 Income statement (R$ thousand) 3Q12 2Q12 3Q11 9M12 9M11 3Q12/2Q12 3Q12/3Q11 9M12/9M11 Gross Revenue % 9% % Net Revenue % 10% % Change in fair value - biological assets % 1630% % Cost of Products Sold ( ) ( ) ( ) -5% -2% ( ) ( ) -5% Gross Profit % 151% % Selling Expenses (81.989) (96.499) (76.594) -15% 7% ( ) ( ) 8% General & Administrative Expenses (74.243) (66.464) (64.311) 12% 15% ( ) ( ) 14% Other Revenues (Expenses) (1.042) % -83% (4.164) (11.368) -63% Total Operating Expenses ( ) ( ) ( ) -5% 16% ( ) ( ) 9% Operating Income (before Fin. Results) % 274% % Equity pickup % N/A N/A Financial Expenses ( ) ( ) ( ) -11% 3% ( ) ( ) -1% Financial Revenues % -15% % Net Foreign Exchange Losses (15.377) ( ) ( ) -96% -97% ( ) ( ) 4% Net Financial Revenues (54.859) ( ) ( ) -88% -90% ( ) ( ) 8% Net Income before Taxes ( ) ( ) N/A N/A % Income Tax and Soc. Contrib. ( ) N/A N/A ( ) (30.311) 715% Net income ( ) ( ) N/A N/A % Depreciation and amortization % 1% % Change in fair value of biological assets ( ) (4.850) (19.255) 6768% 1630% ( ) ( ) 184% Vale do Corisco % N/A N/A EBITDA % 35% %

39 Investor Relations Phone: +55 (11)