Institutional Presentation. February, 2013

Transcription

1 Institutional Presentation February,

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 A differentiated company 3

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

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

6 49 Cloning Forestry productivity Paraná Forestry productivity Eucalyptus m 3 / (ha.year) MAI Tonnes of pulp/ (ha.year) Growth Density Factory yield

7 Leader in the Brazilian packaging paper market, where we allocate more than 50% of our capacity Market position paper Coated Boards Kraftliner 670 thousand tonnes sold in % market share Sole supplier of liquid packaging board in Latin America % installed capacity thousand tonnes sold in

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% 8

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 9

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 10

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 11

12 Matrix control of costs (Falconi) Superior cost control Focus in 2011: Monte Alegre mill Focus in 2012: Forestry Reversion of excessive outsourcing 1,595 1% 1,607 High return investments Mechanical Vapor Recompression (Debottlenecking in Monte Alegre) Biomass boilers in Santa Catarina State High voltage transmission line Evaporation system Nominal cash cost R$ / tonne 12

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 13

14 Adjusted EBITDA LTM 47% growth Adjusted EBITDA LTM Margin 24% 25% 26% 1,028 28% 1,089 29% 1,180 31% 1,286 32% 1, Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Adjusted EBITDA LTM (R$ million) EBITDA LTM (R$ million) LTM Last twelve months Sales Volume LTM (excluding wood million tonnes) Dec12 14

15 Growth strategy 15

16 From now on From 2015 Benefits from the cost reduction New sack kraft machine at the 4Q13 Recycled paper machine at the 3Q14 Debottlenecking at paper machine 9 (coated boards) Pulp mill New coated boards machine Kraftliner paper machine 16

17 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 17

18 Softwood imports in Brazil Large and growing market in Brazil, currently supplied by softwood imports thousand tonnes 18

19 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 19

20 Inbound logistics Average hauling distance New mill 75 Km Average hauling distance Monte Alegre 50 Km Klabin Pulp Klabin SA Vale do Corisco 20

21 Outbond Logistics Klabin Area m² Paranaguá Port Paraná Terminal Existing railroad to Paranaguá Port: 424 km Pulp Mill To be constructed: 17 km 21

22 Capital structure Klabin SA US$ 1 billion Investors US$ 1 billion 51% 49% Klabin Pulp US$ 3.8 billion Debt US$ 1.8 billion 22

23 Financial results 23

24 Sales Sales Volume (excluding wood tsd tonnes) Net Revenue (R$ million) 1,739 1,727 4,164 3,889 34% 31% 24% 22% 66% 69% 78% 76% Domestic Market Export Market 24

25 EBITDA and Net Income 1,352 1, Adjusted EBITDA Net income (R$ million) (R$ million) 25

26 Net debt Net Debt/ EBITDA (LTM) LTM Last twelve months 26

27 2,757 Loan maturity schedule R$ million Cash 1Q13 2Q13 3Q13 4Q Forward Local currencyr$1.7 billion Average tenor: 31 months Foreign currencyr$ 4.4 billion Average tenor: 46 months Gross debt R$ 6.0 billion 27

28 Capex R$ million E Maintenance and special projects Sack kraft expansion Recycled expansion Total

29 Appendix 29

30 Shareholder structure Common Preferred Monteiro Aranha 20% BNDES 13% Treasury 5% Brazilian investors 42% Brazilian investors 20% Klabin Irm ãos 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 2012 R$ 25 million Dividends in 2012 R$ 275 million (yield 4%)

31 Capacity Domestic market eucalyptus and pine forests 2.5 m t wood logs 243 k ha 700 k t planted forests: 243 thousand ha 1.7 m t short fiber and long fiber pulp coated boards 960 k t kraftliner 145 k t industrial bags Domestic and export markets Domestic market 250 k t old corrugated containers 200 k t 540 k t recycled paper corrugated boxes 31

32 Paper business unit Kraftliner % 36% % 45% Coated boards % 55% % 55% 1,309 1,499 Kraftliner Recycled Thousand tonnes R$ million Kraftliner and coated boards Domestic market Export market 32

33 Conversion business unit 0% Corrugated boxes Corrugated boxes Industrial bags Industrial bags Corrugated boxes and industrial bags Thousand tonnes R$ million 33

34 Imports Exchange rate (R$ / US$) Jan 10 Jan 11 Jan 12 Dec 12 Jul 12 Effective imports of goods packed (monthly average - tonnes) / 2011 Industrialized food % Pharmaceutic al % Toys % Hygiene % Footwear % Source: SECEX / MDIC - Receita Federal SP. 02/01/

35 Income statement (R$ thousand) 4Q12 3Q12 4Q Q12/3Q12 4Q12/4Q /2011 Gross Revenue 1,294,027 1,305,430 1,197,225-1% 8% 4,996,659 4,686,275 7% Net Revenue 1,078,364 1,085, ,076-1% 8% 4,163,670 3,889,151 7% Change in fair value - biological assets 113, ,122 (1,569) -66% N/A 885, , % Cost of Products Sold (724,937) (714,806) (613,922) 1% 18% (2,823,148) (2,827,442) 0% Gross Profit 466, , ,585-34% 23% 2,226,510 1,332,286 67% Selling Expenses (85,958) (81,989) (82,059) 5% 5% (344,574) (321,055) 7% General & Administrative Expenses (73,646) (74,243) (73,038) -1% 1% (273,918) (249,405) 10% Other Revenues (Expenses) 14,537 1,236 46, % -69% 10,373 35,308-71% Total Operating Expenses (145,067) (154,996) (108,421) -6% 34% (608,119) (535,152) 14% Operating Income (before Fin. Results) 321, , ,164-41% 19% 1,618, , % Equity pickup 498 1,755 (429) -72% N/A 25,827 (429) N/A Financial Expenses (104,286) (115,435) (96,303) -10% 8% (437,878) (434,696) 1% Financial Revenues 51,381 75,953 74,333-32% -31% 267, ,311-15% Net Foreign Exchange Losses (25,463) (15,377) (42,229) 66% -40% (377,834) (382,183) -1% Net Financial Revenues (78,368) (54,859) (64,199) 43% 22% (547,762) (500,568) 9% Net Income before Taxes 243, , ,536-51% 19% 1,096, , % Income Tax and Soc. Contrib. (97,385) (165,144) (83,105) -41% 17% (344,491) (113,416) 204% Net income 146, , ,431-56% 20% 751, , % Depreciation and amortization 168, ,759 85,433 11% 97% 592, ,768 8% Change in fair value of biological assets (113,410) (333,122) 1,569-66% N/A (885,988) (270,577) 227% Vale do Corisco 7,135 7,033 2,295 1% 211% 26,538 2, % EBITDA 384, , ,461 3% 7% 1,351,618 1,076,620 26%

36 Investor Relations Phone: +55 (11)