Institutional Presentation 2Q13

8/22/2019 Institutional Presentation 2Q13

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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 Companys 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.

DISCLAIMER

2

This presentation on Klabins performance includes non-accounting and accounting data, such as operating and financial information,

as well as projections based on Managements expectations. Note that the non-accounting data has not been reviewed by the

Companys independent auditors.

The Companys management believes EBITDA may provide useful information on the Companys 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.


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eucalyptus and coated boards

wood logs

Domestic market

243 k ha 700 k t

2.5 m t

CAPACITY

4

pine orests

planted forests:

243 thousand hashort fiber andlong fiber pulp

old corrugatedcontainers

recycled paper corrugated boxes

industrial bags

kraftliner

Domestic andexport markets

Domestic market

250 k t

960 k t

1.7 m t

200 k t 540 k t

145 k t


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FORESTRY PRODUCTIVITYPARAN

Forestry

Cloning

38

5558

37

49

62

71

18

5

Growth

Density

Factory yield

Eucalyptus m3/(ha.year)

productivity

Tonnes of pulp/(ha.year)

MAI

2005

2012

20102000 20151995

810

9

1413

15


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Average haulingdistance

Klabin Pulp74 Km

FORESTRY LOGISTICS

6

Average haulingdistance

Monte Alegre

50 Km

Vale do Corisco

Klabin Pulp

Klabin SA


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Leader in the Brazilian packaging paper market, where we allocate more than

50% of our capacity

CoatedBoards

Kraftliner

MARKET POSITIONPAPER

7

67050%

marketshare

thousandtonnes sold

in 2012

387

40%installedcapacity

thousandtonnes sold

in 2012

Sole supplier of

liquid packaging boardin Latin America


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Leader in the Brazilian packaging market where we allocate more than 95% of

our capacity

IndustrialBags

CorrugatedBoxes

MARKET POSITIONCONVERSION

8

50%market share

Second playersmarket share is 16% 15%market share Second playersmarket share is 9%


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Strongly linked to the consumer market

DESTINATION OF KLABINS PRODUCTS

9

Sales volume destination

paper and packaging

68%Food

Building

Other consumergoods

Others

13%

7%


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Reversion of excessive outsourcing

Monte Alegre mill

Forestry

Matrix control of costs (Falconi)

3%

1,664

1,618

SUPERIOR COST CONTROL

Mechanical Vapor Recompression(Debottlenecking in Monte Alegre)

Biomass boilers in Santa Catarina State

High voltage transmission line

Evaporation system

High return investments

Nominal cash costR$ / tonne

2Q132Q12

10


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57% growth

ADJUSTED EBITDA LTM

1.452

33%

25%

26%

28%

31%

29%

32%

33%

24%

11LTM: Last twelve months

Sales Volume LTM(excluding wood million tonnes)

Adjusted EBITDA LTM(R$ million)

Sep11

939

Dec11

1.028

Mar12

1.089

Jun12

1.180

Sep12

1.286

Dec12

1.352

Jun13

1,71,7 1,7 1,7 1,7 1,7 1,7

.

1,7

Mar13Jun11

922

1,7

Margin


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NET DEBT

2.42.0 2.42.5 2.3

2.5 2.3 2.4

Net Debt/Adjusted EBITDA

2.2

2 5

12

Net Debt / Adjusted EBITDA (LTM)

LTM: Last twelve months

Jun-13Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

2,0


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R$ million 2012 2013E

Maintenanceand s ecial ro ects

552 361

CAPEX

13

Sack kraft expansion 77 127

Recycled expansion 25 212

Total 654 700


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SUSTAINABILITYCOMMITTED TO THE BEST PRACTICES

Certifications

Forest management in the most rigorous environmental, social and economic standards: 94.5% of Klabin's forestscertified by the FSC (Forest Stewardship Council );

Quality Management System ISO 9001;

Environmental Management System ISO 14001;

Occupational Health and Safety Management System OHSAS 18001.

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Monitoring supply chain focusing on: prevention of child, forced or compulsory labor; combating discriminatorypractices, on appreciation of diversity, preventing bullying and sexual harassment, and respect for freedom ofassociation.

Voluntary commitments and practices adhered to: the UN Global Compact, CPC - Companies for the Climate,

CDP - Carbon Disclosure Project, Pact for Integrity and Against Corruption and Pact for the Eradication of SlaveLabor, among others.

Promoting local development, with a focus on socio-economic aspects of the communities where we operateand in generating income for populations surrounding the plants.

Committed to fundamental principles and rights


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BRAZILIAN PACKAGING MARKETS

HIGHER EXCHANGE RATE INHIBITEDIMPORTS OF PACKAGED PRODUCTS

Brazilian imports ofpackaged products

(monthly avg - tsd tonnes)

FX exchange rate(R$ / dollar)

254

Brazilian sales ofcoated boards *

262

16Source: BACEN, SECEX/MDIC, ABPO and Bracelpa* Excluding LPB

6M12 6M13

300

6M12

348

6M13

2,03

1,87

1,6571,594

Brazilian sales ofcorrugated boxes

6M12 6M13

6M12 6M13

Tsd tonnes


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Klabin Sales Volume(excluding wood tsd tonnes)

DOMESTIC MARKET SALES

601

KLABIN GREW MORE THAN THE MARKET

Competitive advantage ofKlabins products costand quality

17

6M12

561

6M13

Flexibility of product lines

Focus on food markets


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SALES AND NET REVENUE

24%

2.000 2.160

25%30%

850860

Sales volume

(excluding wood tsd tonnes)

Net revenue

(R$ million)

18

Export MarketDomestic Market

2Q12 2Q13

25%

75%

25%

75%

1.0301.094

6M12 6M13

76%75%

2Q12 2Q13

33%

67%

30%

70%

430 429

6M12 6M13

70%

66%


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6M12

61%

39%

192

6M13

54%

46%

169

6M12 6M13

257

245

Kraftliner

PAPER BUSINESS UNIT

19

Kraftliner

Recycled

Kraftliner andcoated boards

Domestic market Export market

0%

6M12

47%

53%

327

6M13

46%

54%

326

6M12 6M13

709752

Coated

boards

Thousand tonnes R$ million


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313343

867977

CONVERSION BUSINESS UNIT

20

Corrugated boxes

Industrial bags

Corrugated boxesand industrial bags

conversion 6M12 6M13 6M12 6M13

Thousand tonnes R$ million


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693

COST AND EBITDA

1,639

1,627

3%

17% EBITDA GROWTH YOY

1,593

21

6M12

Adjusted EBITDA

(R$ million)

6M13

Unit cash cost

(R$/tonne)

Low cost

Higher domestic sales

Higher exports prices

6M136M12


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2013 2014

FROM NOW ON

2016

23

ore ene ts rom t e

cost reduction

Forestry investmentsto increase productivityand reduce costs

New sack kraftmachine in the 4Q13

Recycled papermachine in the 3Q14

PM9 (coated boards)debottlenecking

Modernization of thelumber yard inMonte Alegre

New Pulp mill

New coated boardsmachine


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PUMA PROJECT

Domesticand foreign

markets

Domesticand foreign

markets

Competitive

forest

Competitive

forest Lower costproducer

Lower costproducer

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Long andshort fiberLong and

short fiber

Fluffmarket

Fluffmarket FSCFSC

Energygeneration

Energygeneration


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FOREST OVERVIEW

Well distributed and located forest base: average

distance of 74km

107,000 hectares planted with pine and eucalyptus Paran region has one of the highest forest yields

in the world ~ 32% above Brazilian average

FSC certified

A singular forest base located in one the most prolific regions of the world

44

20

25

12

6

58

Africa

Chile

Scandinavia

Brazil

Iberian

38

22

10

7

4

43

Productivity m3/(ha*year)

Hardwood Softwood

Klabin


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Puma will operate with low logistics costs

Railroad logistics based on already existing railinfrastructure from America Latina Logistica (ALL)

Terminal at the Port of Paranagu

A dedicated warehouse will be built

Location

LOGISTICS OVERVIEWIntegrated logistics solution assuring efficiency and competitiveness

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Paranagu port supports large vessels

Klabin Area

27,530 sq m


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FLEXIBLE PRODUCTION MIXHardwood Softwood Fluff

Global demand should keep growing

at healthy levels in the next years

Asia should be the driver for thisgrowth

Main markets: tissue and specialties

Most of the softwood used in the

domestic market comes from

imports which are less competitive Main markets: packaging and tissue

Global and local demand for fluff

should grow substantially

Focus in the local market: hugeopportunity

Main markets: hygiene products

Global demand for hardwood(mm t)

Softwood market pulp in Brazil

Demand for fluff

Brazilian market 000 tonnes

Exposure to high growth markets with the most updated technology available

69410

479

+

2015

33

7

11

3

93

2010

28

6

8

2

9

3

2005

23

63

9

3

Others

China

Latin America

Europe

North America

(000 tonnes)

Mkt pulp

24%

Integrated

76%

Market PulpImportsDomestic sale

Brazilian market (2012)

Global market

4,75 5,35+3%

2011 2015

310 396+5%

2010 2015

(mm tonnes)

27


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PUMA PROJECTEARTH MOVEMENT

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MonteiroAranha20%

Brazilianinvestors

BNDES13%

Treasury

5%

Common Preferred

SHAREHOLDER STRUCTURE

30

600,855,733 shares316,827,563 shares

KlabinIrmos60%

Brazilianinvestors20%

42%

Foreign

investors40%

Level 1 of Corporate

Governance at

BM&FBovespa

Tag along rights of 70%

for preferred shares

Average daily trading

volume in 2Q13

R$ 37 million

Dividends in 2012

R$ 275 million

(yield 4%)


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Documents

Institutional Presentation 2Q13