PRESENTATION 2Q18 1
DIVERSIFICATION AND FLEXIBILITY TOTAL LAND 490k hectares TOTAL FIBERS 3.5 million tpy BLEACHED PULP 1.5 mi tpy TOTAL CAPACITY 3.5 million tpy MARKET PULP 1.5 mi tpy Long fiber / Fluff 400 k tpy Short fiber 1.1 mi tpy PLANTED FORESTS 230k hectares PINE 140k hectares EUCALYPTUS 90k INTEGRATED FIBERS Coated boards 1.8 mi tpy hectares OCC PAPER 2.0 mi tpy 265 k tpy PACKAGING 935k tpy 750 k tpy CORRUGATED BOXES Containerboards 750k tpy INDUSTRIAL BAGS 185k tpy 1.25 mi tpy 2
PINE Forest Productivity m³/ha/year 39 38 22 22 10 7 4 4 230k EUCALYPTUS Forest Productivity m³/ha/year 54 44 25 20 12 10 6 4 * Source: Ibá and Klabin 3
PINE Mean annual increment (MAI) m³/ha/year 24 31 32 35 42 42 44 46 47 <75 76-85 86-95 96-05 06-09 11-15 12-15 16-20 21-25 EUCALYPTUS Mean annual increment (MAI) m³/ha/year 26 35 41 50 52 58 61 65 <73 74-85 85-95 95-05 05-11 12-15 16-20 21-25 * Source: Ibá and Klabin 4
409 462 447 288 Long fiber 174 Short fiber 272 335 Source: Hawkins Wright FOB US$/tonnes 5 million tonnes 10 million tonnes 15 million tonnes 20 million tonnes 25 million tonnes 30 million tonnes ANNUAL CAPACITY 5
13 8 67 12 * Of Brazilian installed capacity 6
939 1,027 1,089 1,180 1,286 1,351 1,424 1,452 1,504 1,562 1,602 1,627 1,652 1,718 1,755 1,812 1,881 1,975 2,026 2,173 2,238 2,288 2,314 2,371 2,536 2,738 2,959 3,248 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.9 2.0 2.4 2.7 3.0 3.1 3.2 3.2 3.2 3.2 sep-11 dec-11 mar-12 jun-12 sep-12 dec-12 mar-13 jun-13 sep-13 dec-13 mar-14 jun-14 sep-14 dec-14 mar-15 jun-15 sep-15 dec-15 mar-16 jun-16 sep-16 dec-16 mar-17 jun-17 sep-17 dec-17 mar-18 jun-18 7
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Sales Volume Excluding wood tsd tonnes Net revenue R$ millions Adjusted EBITDA R$ millions 777 50% -8% 713 48% Exports +13% 1,984 39% 2,235 43% +49% 595 884 Results 2Q18 50% 52% Domestic market 61% 57% N E T R E V E N U E A N D E B I T D A 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18 9
pulp business unit Exports Sales volume tsd tonnes Net revenue R$ million 337 753 +29% 294 77% 77% 582 Domestic market 23% 23% 2Q17 2Q18 2Q17 2Q18 10
2Q18 paper business unit COATED BOARDS KRAFTLINER Sales volume tsd tonnes 154 38% -9% 140 37% Net revenue R$ million Sales volume Net revenue +2% Exports tsd tonnes 475 467 82 +1% 83 60 % 74% R$ million +33% 165 219 62% 63% Domestic market 26% 40% 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18 11
packaging business unit Sales volume tsd tonnes -2% 190 187 Net revenue R$ million +4% 647 675 2Q17 2Q18 2Q17 2Q18 12
puma CASH COST Pulp production cash cost R$ per tonne 663 743 650 2Q17 2Q18 June 13
cash cost 2Q18 Unit cash cost 2Q18 1,791 +6% 1,895 Cash cost Breakdown 2Q18 R$/tonnes 2Q17 2Q18 14
capex C A P E X R $ m i l l i o n 2014 2015 2016 2017 Maintenance 384 455 541 627 Special projects and growth 319 129 320 121 PUMA project 2,242 4,053 1,707 177 Total 2,945 4,627 2,567 925 15
F r e e c a s h f l o w R $ m i l l i o n s 2 Q 1 8 1 Q 1 8 2 Q 1 7 LT M free cash flow * Excluding dividends and growth projects LTM: last twelve months 16
dividends GROWING DIVIDENDS ALONG WITH EBITDA Dividend Yield (%) Dividends payed (R$ million) 3.1 2.2 2.8 3.3 3.4 344 396 458 548 650 2014 2015 2016 2017 LTM LTM: last twelve months 17
In 06/30/2018 Gross debt Cash Net debt 5.9 6.0 6.0 5.7 5.2 5.1 5.2 5.6 4.9 4.9 4.9 4.5 4.4 4.2 4.1 3.7 Net debt and leverage 3.8 3.9 3.6 3.4 12,009 11,382 11,473 12,005 11,377 11,748 11,147 11,278 11,108 12,597 2,026 2,173 2,238 2,288 2,314 2,371 2,536 2,738 2,959 3,248 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Adjusted Ebitda (LTM) Net debt(r$ million) Net debt/ebitda (R$) Net debt/ebitda (US$) LTM: last twelve months 18
debt maturity 6,895 R$ millon 3,596 2,814 2,781 2,662 1.191 2,002 1,455 1,824 2,246 2,330 2,268 1,293 2,372 1,914 Foreign Currency 14,499 Gross debt 19,492 Cash position 761 1,914 803 430 1,265 580 991 976 223 192 388 547 535 71 181 207 290 192-71 - - 3Q18 4Q18 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Local Currency 4,992 Local Currency: R$ 5.0 billions Avarage tenor: 37 months Foreign Currency: R$ 14.5 billions Avarage tenor: 50 months 19
w w w. k l a b i n. c o m. b r / r i i n v e s t @ k l a b i n. c o m. b r + 5 5 ( 1 1 ) 3 0 4 6-8401 20
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28.9 30.0 CAGR +3% CAGR +2% 31.0 32.3 33.2 34.1 35.0 Latin America 24.3 24.7 25.0 25.4 26.2 23.7 North America 26.2 Asia/Africa Europe China 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Source: Hawkins Wright million tones per year 22
610 3,377 CAGR +17% 3,042 2,733 2,430 2,133 1,861 1,605 1,363 1,183 1,005 788 CAGR +9% 7,297 6,790 6,272 3,398 4,000 4,645 4,827 5,279 5,768 7,864 8,468 9,139 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Euromonitor 23
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 dez-16 jan-17 fev-17 mar-17 abr-17 mai-17 jun-17 jul-17 ago-17 set-17 out-17 nov-17 dez-17 jan-18 fev-18 mar-18 abr-18 mai-18 jun-18 SBSK vs BSK 14.9 14.7 13.0 11.6 12.1 9.5 10.8 10.2 8.2 10.0 10.2 7.4 7.6 6.5 4.5 4.6 7.0 5.2 4.0 5.5 4.9 7.7 4.2 4.4 3.3 2.7 2.7 2.8 5.0 3.5 NBSK vs BEK 120 115 Fluff vs SBSK 75 155 60 150 40 110 30 100 80 70 110 140 30 60 80 10 20 10 20 30 30 20 30 70 60 100 120 350345 150 180 320 310 300 300 260 240 240 210 200 205 190 170 175 155 135 130 120-10 -30-20 -30-20 -10-10 Source: Datamar 24
Demand growth per year 4% FOCUS IN LARGE AND GROWING MARKETS 3% 2% 1% 0% -1% -2% -3% -4% 0% 20% 40% 60% 80% 100% Source: Poyry Share of consumption in 2015 25
Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 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 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 1,400.0 US$/tonelada 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 BHKP NBSK Coated Boards Coated boards* NBSK Source: FOEX and RISI *SBS Solid Bleached Sulfate folding carton EUA BHKP 26
WWF Environmental Paper Company Index Disclosing environmental footprint since 2006 LEADERSHIP rating for forestry category in 2017 "Management" rating for climate change and water categories in 2017. 5 th consecutive year One of the most sustainable companies of Brazil WWF EPECI recognizes transparency and continual improvement Elected in 2017 by Guia Exame the most sustainable company of the pulp & paper sector Recognized as the most sustainable pulp & paper company, with ratings above average in key-criteria such as: climate change,, human rights, management of suppliers, among others. 2013 2014 2015 2016 2017 2013 74,5% 81,6% 2017 sustainability 27
Gross R evenue 2,586,863 2,523,182 2,241,657 3% 15% 5,110,045 4,481,849 14% Net Revenue 2,235,178 2,189,154 1,984,195 2% 13% 4,424,332 3,850,887 15% Change in fair value - biological assets 69,105 119,153 101,845-42% -32% 188,258 585,151-68% Cost of Products Sold (1,451,332) (1,557,653) (1,738,226) -7% -17% (3,008,985) (3,266,075) -8% Gross profit 852,951 750,654 347,814 14% 145% 1,603,605 1,169,963 37% Selling Expenses (172,658) (170,913) (152,008) 1% 14% (343,571) (307,377) 12% General & Administrative Expenses (132,159) (126,340) (136,726) 5% -3% (258,499) (261,797) -1% Other Revenues (Expenses) (460) (15,266) 11,131-97% n/a (15,726) 4,084 n/a Total Operating Expenses (305,277) (312,519) (277,603) -2% 10% (617,796) (565,090) 9% Operating Income (before Fin. Results) 547,674 438,135 70,211 25% 680% 985,809 604,873 63% Equity pickup 1,762 1,629 (1,177) 8% n/a 3,391 5,412-37% Financial Expenses (326,304) (345,628) (339,952) -6% -4% (671,932) (665,373) 1% Financial Revenues 157,428 135,712 228,123 16% -31% 293,140 493,665-41% Net Foreign Exchange Losses (1,842,763) (52,260) (557,367) 3426% 231% (1,895,023) (179,095) 958% Net Financial Revenues (2,011,639) (262,176) (669,196) 667% 201% (2,273,815) (350,803) 548% Net Income before Taxes (1,462,203) 177,588 (600,162) n/a 144% (1,284,615) 259,482 n/a Income Tax and Soc. Contrib. 507,569 (52,933) 222,579 n/a 128% 454,636 (35,040) n/a Net income (954,634) 124,655 (377,583) n/a 153% (829,979) 224,442 n/a Depreciation and amortization 405,548 440,579 625,785-8% -35% 846,127 1,076,262-21% Change in fair value of biological assets (69,105) (119,153) (101,845) -42% -32% (188,258) (585,151) -68% Vale do Corisco - - 538 n/a n/a - 9,124 n/a Adjusted EBITDA 884,117 759,561 594,689 16% 49% 1,643,678 1,133,311 45% 28
Current Assets 9,983,947 10,290,857 Current Liabilities 2,916,014 3,550,861 Cash and banks 97,876 108,501 Loans and financing 1,708,080 2,136,784 Short-term investments 5,231,578 5,517,185 Debentures 77,553 61,686 Securities 1,260,828 1,269,779 Suppliers 617,465 807,059 Receivables 1,673,378 1,706,115 Taxes payable 46,495 54,174 Inventories 984,105 1,041,103 Salaries and payroll charges 192,642 262,543 Recoverble taxes and contributions 488,148 381,320 Dividends to pay 0 0 Other receivables 248,034 266,854 REFIS Adherence 72,007 72,627 Other accounts payable 201,772 155,988 Noncurrent Assets 18,530,048 18,545,988 Long term Noncurrent Liabilities 18,396,849 19,193,319 Taxes to compensate 1,253,563 1,419,231 Loans and financing 15,273,193 16,681,594 Judicial Deposits 83,759 86,363 Debentures 639,112 611,521 Other receivables 360,134 334,653 Deferred income tax and social contribution 1,538,043 959,388 Other investments 170,505 169,898 Other accounts payable - Investors SCPs 277,218 284,715 Property, plant & equipment, net 12,420,961 12,297,060 REFIS Adherence 299,834 288,658 Biological assets 4,152,320 4,149,689 Other accounts payable 369,449 367,443 Intangible assets 88,806 89,094 Stockholders Equity 7,201,132 6,092,665 Capital 4,076,035 4,076,035 Capital reserve (361,268) (361,231) Revaluation reserve 48,704 48,705 Profit reserve 2,653,234 1,546,599 Valuation adjustments to shareholders'equity 981,008 979,138 Treasury stock (196,581) (196,581) Total 28,513,995 28,836,845 Total 28,513,995 28,836,845 29