Institutional Presentation 2Q10. August, 2010

Transcription

1 Institutional Presentation 2Q10 August,

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 in Brazil (Brazilian Corporate Law or BR GAAP) or with U.S. generally accepted accounting principles (US GAAP), and may be defined and calculated differently by other companies. 2

3 Shareholder Structure 06/30/2010 Monteiro Aranha ; 20% Common Foreign Investors; Preferred Treasury; 3% 26% Brazilian Investors ; 21% Klabin Irmãos ; 59% BNDES; 31% Brazilian Investors; 40% 316,827,563 shares 600,855,733 shares IPO in 1979 Market Value of R$ 4,5 Bi Average daily trading volume R$ 10,7 million in 2Q10 3

4 Corporate Governance Joined BM&FBOVESPA s level 1 of Corporate Governance Tag along rights of 70% for preferred shares Liquidity: 2,234 daily trades in 2Q10 Level 1 ADRs program trading on OTCQX since March, 2010 Compensations for members of the Executive Board are linked to metrics that take into account the opportunity cost of investments Adopted insider trading policy for securities issued by the company and strict separation of Board of Directors and Executive Board Code of conduct adopted by all employees of the Company 4

5 History Advanced on the packaging segment, Klabin and Lafer families founded Klabin Irmãos & Cia. Launched production of newsprint and packaging paper producing corrugated boxes, bags and envelopes and became the major pulp, paper and paper products producer in Latin America Sale of non core assets and focus on packaging Start up MA A company in the office supplies trading and Founded Klabin do Parana, the first integrated pulp and Professional management Acquisition of Igaras Papéis e Embalagens Exame Magazine Best and Biggest printing businesses paper mill in Brazil Award Pulp and Paper 5

6 A company 100% integrated TOTAL LANDS 458 thousand ha WOOD PULP 1.7 million tonnes Softwood + Eucalyptus Hardwood + + Pinus 207 thousand ha planted CTMP OCC 250 thousand tonnes 2.5 million tonnes PAPER 1.9 million tonnes Coated board 710 K tonnes + Sack kraft + Kraftliner + Recycled 160 K tonnes 800 K tonnes 200 K tonnes * COATED BOARDS INDUSTRIAL BAGS KRAFTLINER CORRUGATED BOXES Notes: All figures refer to installed production capacity. Production of paper packages generates 100 thousand tpy of edge trim, which returns to the process. * Does not includes 50 thousand tonnes per year from Ponte Nova Mill, that is temporarily closed. CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container 6

7 Net Revenue: R$ 1,750 million in 1H10 Company profile Forestry Paper Conversion Wood logs 7% Kraftliner Coated boards Corrugated boxes Industrial Bags 13% 35% 31% 13% LPB FBB CB Notes: In 6M10, 1% of net revenue was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board 7

8 Klabin s Presence Forestry Alto Paranapanema (SP) Planalto Catarinense (SC) Campos Gerais (PR) Industrial Bags Lages (SC) Pilar (Argentina) Goiana (PE) Ports Suape (RN) Santos(SP) Paranaguá (PR) Itajaí (SC) São Francisco do Sul (SC) Recycled Papers Goiana (PE) Guapimirim (RJ) Piracicaba (SP) Corrugated packages Goiana (PE) Feira de Santana (BA) Betim (MG) Del Castilho (RJ) Jundiaí (SP) Piracicaba (SP) Itajaí (SC) São Leopoldo (RS) ARGENTINA URUGUAI Papers Angatuba (SP) Correia Pinto (SC) Otacílio Costa (SC) Telêmaco Borba (PR) 8

9 Businesses and Markets 9

10 Business Units Forestry Papers Conversion 10

11 Forest Forestry Base Thousand ha Forests 07/31/2010 Paraná Santa Catarina São Paulo Mato Grosso do Sul Total Planted Forests Eucalyptus Pine Native preserved forests Total Lands Average Hauling Distance Paraná Santa Catarina Correia Pinto Otacílio Costa São Paulo Km

12 Forest Competitive advantage Average Productivity (m 3 /ha/year) 06/30/2010 Paraná Santa Catarina São Paulo Pine Eucalyptus Softwood - Rotation (years) Hardwood - Rotation (years) Klabin 20 Klabin 7 South Africa 25 South Africa 9 Chile 25 Chile 11 Australia 35 Portugal 13 USA 45 Sweden 37 Sweden 100 Finland Source: Pöyry 12

13 Forest Yield evolution - m³ / (ha * year) Eucalyptus Until Pine Until

14 Wood Sales volume, net revenue and housing starts Sales volume (thousand tonnes) Net revenue (R$ million) Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Housing starts thousand units Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Source: US Census Bureau Quarter average Housing starts 14

15 Paper Global Market Paper Consumption Growth 2010/ Annual Average Consumption Growth (%) % 3.9% 3.9% Average CAGR = 3,7% 2.3% 1.1% % Acumulated Share in the Global Consumption of 2010 (%) Containerboard Tissue Others Print and Writing Press Newsprint Source RISI - Mar/10 15

16 Coated Boards Coated boards grades Liquid Packaging Board (LPB) Folding Box Board Carrier Board 16

17 Coated Boards Sales volume, net revenue and exports Sales volume (thousand tonnes) Net revenue (R$ million) % % % 47% 49% % 65% 58% 53% 51% 2Q09 3Q09 4Q09 1Q10 2Q10 Domestic market Export market 2Q09 3Q09 4Q09 1Q10 2Q10 Asia; 11% Export Destinations 2Q10 Africa; 6% Latin America; 30% Europe; 25% North America; 28% 17

18 Coated Boards FBB virgin fibers cost competitiveness Average Cash Cost (FOB) and List Price Evolution Jan/07 Apr/07 Jul/07 Oct/07 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09 Oct/09 Jan/10 Apr/10 Jul/10 List price (US$/tonne) 970 1,014 1,047 1,102 1,081 1,124 Production cash cost (US$/tonne) Others Labor Energy Chemical Fibers Klabin MA United States 8 million tonnes Brazil Poland Chile Others Sweden Finland Canada 16 million tonnes Notes: List Price North America (US$/tonne). Source: RISI Index List Price - * 20Pt. Clay-Coated Unbleached Folding Cartonboard. Average cash cost FOB (US$/tonne). Source: RISI Analytical Cornerstone 1Q10 18

19 Coated Boards Global production MeadWestvaco Stora Enso International Paper Graphic Packaging Korsnas Klabin 6 th largest producer of virgin fiber coated boards M Real Iggesund Potlatch Georgia Pacific (Thousand tonnes) Liquid Packaging Board Folding Box Board Carrier Board Solid Bleached Sulphate Korsnas Stora Enso Klabin International Paper MeadWestvaco 3 rd largest supplier of Tetra Pak Potlatch (Thousand tonnes) Source: Pöyry,

20 Liquid packaging board UHT Milk Consumption World UHT Milk Consumption versus total milk consumption Country Market Share Country Market Share France 95% Canada 9% Spain 94% USA 10% Brazil 75% UK 11% Germany 65% Japan 12% Italy 61% South Korea 24% Brazil UHT milk consumption versus total milk consumption (million litters) Total milk consumption UHT milk consumption Source: ABLV (Brazilian Association of UHT Milk) and Tetrapak December,

21 Folding box board Market share evolution and boards composition Market share in the domestic market (excluding LPB) 13% 87% 18% 82% 504 Kt 508 Kt % 75% 507 Kt 2010 * 26% 74% 286 Kt Klabin Others Source: Bracelpa (*) From January to June, 2010 Coated boards composition Triple layer coating Kraft pulp bleached, short fiber Kraft pulp short/long fiber mix + CTMP Kraft pulp long fiber Starch 21

22 Kraftliner Sales volume, net revenue and OCC price Sales volume (thousand tonnes) Net revenue (R$ million) 84 82% % 65% 74% 47% Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Domestic market Export market Brazilian O.C.C Price Evolution (R$/tonne) jan/06 jan/07 jan/08 jan/09 jan/10 Quarter average Monthly pric e Source: Brazilian Association of Pulp and Paper Producers 22

23 Kraftliner Exports Cash cost and list price Average Cash Cost (FOB) and List Price Evolution Jan07 Apr07 Jul07 Oc t07 Jan08 Apr08 Jul08 Oc t08 Jan09 Apr09 Jul09 Oc t09 Jan10 Apr10 List price (US$/tonne) Production cash cost (US$/tonne) Others Labor Energy Chemicals Fibers capacity Klabin MA Poland Russia Portugal Notes: Most of US production includes recycled paper. List Price Europe (US$/tonne). Source: FOEX Kraftliner Brown 175 g/m². Average cash cost FOB (US$/tonne). Source: RISI Analytical Cornerstone 1Q10. United States 17 million tonnes South Africa Brazil Spain Others Europe France Áustria Germany Sweden Canada Finland 34 million tonnes 23

24 Corrugated Boxes Sales volume, net revenue and consumption distribution Sales volume (thousand tonnes) Net revenue (R$ million) Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Consumption distribution (December/09) Drugs 2% Clothing 2% Others 11% Textilles 3% Cosmetics 3% Tobaccos 4% Beverages 4% Miscellaneous 5% Food 42% Poultry 6% Fruits & floriculture Source: ABPO (Brazilian Association of Corrugated Boxes) 8% Chemical 11% 24

25 Corrugated Boxes Brazilian shipments and market share Brazilian Corrugated Shipments (thousand tonnes) Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Quarter average Monthly volume Source: Brazilian Association of C orrugated Boxes Market Share 2008 (%) Klabin Rigesa Orsa Trombini Penha São Roberto Adami INPA Ibéria Outros Others Source: ABPO (Brazilian Association of Corrugated Boxes) 25

26 Industrial Bags Sales volume, net revenue and cement consumption Sales volume (thousand tonnes) Net revenue (R$ million) Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Brazilian cement consumption million tonnes Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Quarter average Monthly c onsumption Source: Nation Labor Union of C ement Industry 26

27 Industrial Bags Export destinations and consumption per industries Export Destinations 2009 North America 6% Others 2% Chemicals 4% Seeds 6% Consumption Main Industries 2009 Minerals 3% Others 5% Food 10% Latin America 92% Building Industry 72% Source: Klabin 27

28 Financial Performance 28

29 Financial Highlights R$ million 2Q10 1Q10 2Q09 2Q10 / 1Q10 2Q10 / 2Q09 Sales volume (Thousand tonnes - excluding wood) % 23% Net Revenue % 33% Gross margin 28% 30% 24% -2 p.p. 6 p.p. Operating Expenses (123) (118) (122) 5% 1% Operating Income (EBIT) % 202% EBIT margin 14% 16% 6% -2 p.p. 10 p.p. Net Financial Revenues (46) (81) 384 Net Income (Losses) EBITDA % 57% EBITDA margin 26% 29% 22% -3 p.p. 7 p.p. Net Revenue (US$ mi) % 53% Average Dollar % -14% Exports (US$ mi) % 39% 29

30 799 Financial Highlights R$ million 1H10 1H09 1H08 1H10 / 1H09 1H10 / 1H Sales volume (thousand tonnes - excluding wood) % 8% 1,437 1,579 Net Revenue 1,750 1,405 1,521 25% 15% 2,796 3,097 Gross margin 29% 26% 25% 3 p.p. 4 p.p. 33% 26% Operating Expenses (241) (253) (238) -5% 1% (452) (485) Operating Income (EBIT) % 86% EBIT margin 15% 8% 9% 7 p.p. 6 p.p. 17% 10% Net Financial Revenues (126) (905) Net Income (Losses) % -40% 603 (349) EBITDA % 44% EBITDA margin 27% 23% 22% 4 p.p. 5 p.p. 26% 24% Net Revenue (US$ mi) % 8% 1,440 1,714 Average Dollar % 6% Exports (US$ mi) % -3%

31 EBITDA R$ million % % % 27% % 26% % 25% 20% 15% 10% 50 5% 0 2Q09 3Q09 4Q09 1Q10 2Q10 0% EBITDA EBITDA Margin 31

32 Cash Cost Composition 1H10 Freights; 11% Energy/Oil; 13% Labor/Services; 30% R$ 1,275 mi Wood/Fibers; 15% Chemicals; 16% Maint. Stopage/ Others; 15% 32

33 Cash cost per tonne R$/tonne -5% 1,478 1, H10 1H09 Variable Costs Fixed Costs SG&A 33

34 Indebtedness Net Debt evolution Net Debt R$ 2.3 billion Net Debt / EBITDA = 2.6x Average Maturity = 42 months Debt cost Local currency: 10.2 % p.y. Foreign currency: 3.6% p.y. + FX ,2 Net Debt (R$ million) , , , ,0 2, Q09 2Q09 3Q09 4Q09 1Q10 2Q10 0 Net Debt (R$ million) Net Debt / EBITDA (LTM) 34

35 Loan Maturity Schedule 06/30/10 2,340 Current cash position cover next 38 months of debt maturities Short term = 12% 810 R$ Million Cash 3Q10 4Q10 1Q11 2Q11 2H After 2017 Local Currency Foreign Currency Foreign Currency = R$ 2,809 million Local Currency = R$ 1,901 million Gross Debt = R$ 4,710 million 35

36 Capex R$ million The Company invested R$ 143 million in 1H10 1,674 Conversion/ Others 20% Forestry 37% * Papers 43% *Estimated for

37 Dividend and Treasury Stocks Dividends Payment (R$ million) Treasury Stocks The Company has 16,907,900 stocks in treasury * * R$ 57 million regarding 2009 results 37

38 Strategy 38

39 Sustainable development Economically viable, socially just and environmentally correct. Economic Social Environmental 39

40 Evolution of forest productivity Forest base for the new pulp mill Yield of eucalyptus and pine ADt / (ha x year) from 2015 Eucalyptus Pine ADt Air dried tonne of pulp 40

41 Strategy Short term Growth Expansion of the forests; Expansion of conversion capacity. Increased productivity Continuous increase in forest yield; New line of multi-layered bags replacing the current one; New printers and technological upgrading of corrugated boxes mills. Improving the energy matrix New biomass boiler in Otacílio Costa replacing fuel oil boiler; New transmission line to the Monte Alegre mill, allowing reduction in the levels of energy loss and lower cost. 41

42 Strategy Long term Capacity Expansion Construction of a global-scale pulp plant with capacity between 1.3 and 1.5 million tonnes per year; Installation of a new coated board machine with capacity between 400,000 and 500,000 tonnes per year, expanding total paper production to 2.4 million tonnes per year Evolution of production capacity tonnes per year 1.9 million 3.4 million /

43 IR Team Phone: (11) / 8415 / invest@klabin.com.br 43