8/6/2019 KPresentation2008 2Q Ing
1/69
8/6/2019 KPresentation2008 2Q Ing
2/69
2
Forward LookingForward LookingStatementStatement
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.
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 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.
8/6/2019 KPresentation2008 2Q Ing
3/69
3
ContentsContents
Expansion of Coated Boards 61
Businesses and Markets 15
Company Profile 4
Financial Performance 47
Future 65
8/6/2019 KPresentation2008 2Q Ing
4/69
4
Company ProfileCompany Profile
A forestry based company focused on wood, coated boards,packaging paper and paper based packaging products:
Packaging Paper Paper Based Packaging
Net Revenue: US$ 897 million in 1H08
Forestry
17 plants in Brazil and 1 in Argentina
Largest Brazilian producer and exporter of paper (packaging paper and coated boards) Installed production capacity: 2.0 million tpy
Market Capitalization: US$ 3.4 billion (30/06/2008)
Wood logs
7%
Coated Boards
30%
Industrial Bags
13%
Corrugated Boxes
31%
Kraftliner
19%
8/6/2019 KPresentation2008 2Q Ing
5/69
5
HistoryHistory
Klabin and Lafer
families founded
Klabin Irmos &
Cia.
A company in the
office supplies
trading andprinting businesses
Already
positioned
among the
largest
Brazilian
paper
producers
Launchedproduction of
newsprint and
packaging
paper
Advanced on the packaging
segment, producing
corrugated boxes, bags and
envelopes and became the
major pulp, paper and paper
products producer in Latin
America
Acquisition of
Igaras Papis e
Embalagens
Consolidated
Leadership
Sale of noncore assets
and focus on
packaging
MA 1100
Expansion
Project
1899 2008
Founded Klabin do
Parana, the first
integrated pulp andpaper mill in Brazil
Capacity of
2 million
tonnes
With 109 years of history and tradition, Klabin grows sustainably,supported by projects structured towards value creation.
1934 70s 2000 2003 2006194720s
Start up
MA 1100
8/6/2019 KPresentation2008 2Q Ing
6/69
6
Corrugated
Boxes
540,000 tpy
FinishedProducts
(*)
Liquid Packaging Board
740,000 tpyFolding Box Board
Carrier Board
Wood - 2.5 million tpy
100%
Integrated
Kraftliner770,000 tpy
Sack Kraft155,000 tpy
CoatedBoards
740,000 tpy
OCC380,000 tpy
2.0 million tpy
RecycledPaper
300,000 tpy
100%Integrated
Exports 410,000 tpy
35%
Integrated
100%Integrated
(*) All figures refer toinstalled production capacity
Industrial Bags155,000 tpy
Domestic
and
Export
Sales
Lands
441,000 ha
Forests
PlantedForests
Pine
156,000 ha
Eucalyptus62,000 ha
Integrated Business ConceptAfter MA 1100 Expansion ProjectAfter MA 1100 Expansion Project
Pulp
NBSKBEKP
CTMP
1.7 milliontpy
Exports 410,000 tpy
Domestic Market 90,000 tpy
8/6/2019 KPresentation2008 2Q Ing
7/69
7
Preferred
BNDESPAR
31%
ForeignInvestors
29%
Brazilian
Investors38%
600,855,733
Shareholder StructureShareholder Structure30/06/200830/06/2008
Total Shares (Common + Preferred)
Local Price Share (KLBN4) 30/06/08
Book Value (30/06/08)
Average Daily Trading Volume - 2Q08
917,683,296
R$ 5.99
R$ 3.26
R$ 8,0 million
Common
KlabinIrmos
52%
MonteiroAranha
20%
Brazilian
Investors28%
316,827,563
Treasury
Stock2%
8/6/2019 KPresentation2008 2Q Ing
8/69
8
Klabin'sKlabin's presencepresence
Pulp and Paper Mills
Forestry
Industrial Bags
Corrugated Boxes
Recycled Papers
8/6/2019 KPresentation2008 2Q Ing
9/69
i bili li
8/6/2019 KPresentation2008 2Q Ing
10/69
10
Sustainability PolicySustainability PolicyPrinciplesPrinciples
1. aiming at sustained improvement of results,continuously perfecting processes, products and services so as to meet
customers, employees, shareholders, suppliers and communities expectations.
2. , in a
sustainable way and without any damage to either natural or associatedecosystems.
3. of pulp fiber in its production chain.
4. by means of reducing environmental impact from
effluents, solid residues and emissions to air.
5. , and to strive for
continuous improvement of their working environment, health and safety.
6. with focus on the communities where the
Company is present.
7. and regulations applicable to product, environment, health
and safety.
To seek competitive quality,
To ensure supply of its industrial units with wood from planted forests
To practice and promote the recycling
To prevent and avoid pollution
To promote employees personal and professional advancement
To exercise social responsibility
To comply with laws
8/6/2019 KPresentation2008 2Q Ing
11/69
11
Investment ThesisInvestment Thesis
Outstanding
ProductQuality
OutstandingOutstanding
ProductProductQualityQuality
MarketLeadership and
GrowthOpportunities
MarketMarketLeadership andLeadership and
GrowthGrowthOpportunitiesOpportunities
TopSustainability
Standards
TopTopSustainabilitySustainability
StandardsStandards
One of theGlobal Lowest
Cash-CostProducer
One of theOne of theGlobal LowestGlobal Lowest
CashCash--CostCostProducerProducer
SolidFinancialPerformance
SolidSolidFinancialFinancialPerformancePerformance
Successful R&DTrack-Record
Successful R&DSuccessful R&DTrackTrack--RecordRecord
8/6/2019 KPresentation2008 2Q Ing
12/69
8/6/2019 KPresentation2008 2Q Ing
13/69
M k t L d hi dMarket Leadership and
8/6/2019 KPresentation2008 2Q Ing
14/69
14
Market Leadership andMarket Leadership andGrowth OpportunitiesGrowth Opportunities
1. Market leadership in all segments in Brazil with space to grow:
20% of Brazils paper production
55% market share in sacks
20% market share in boxes
50% market share in Kraftliner
17% market share in Coated Boards
100% market share in Liquid Packaging Boards (LPB)
2. Largest paper exporter more than 50 countries
3. Regular exporter more than 25 years
4. Coated boards growing twice the market average in Brazil
8/6/2019 KPresentation2008 2Q Ing
15/69
Largest Producers of World
8/6/2019 KPresentation2008 2Q Ing
16/69
16Source: RISI
Largest Producers of Worldpaper and board - 2007
1. USA 84,1
2. China 65,03. Japan 31,0
4. Germany 22,7
5. Canada 18,2
6. Finland 14,1
7. Sweden 12,1
8. South Korea 10,7
9. Italy 10,0
10. France 10,0
11. Brazil 9,0
Total 389,5
Country Million Tons
Production of PackagingProduction of Packaging
8/6/2019 KPresentation2008 2Q Ing
17/69
17
Rigesa9%
Others35%
Klabin35%
Trombini4%
Orsa8%
Inpa3%
S Roberto3%
Irani3%
Source: RISI and Bracelpa
Production of PackagingProduction of PackagingPaperPaper -- 20072007
World ProductionWorld Production Production BrazilProduction Brazil
Africa/Oceania
5%
Europe22%
LatinAmerica
6%
Noth America27%
Asia40%
3,6 million tonnes128 million tonnes
I t CI t C W ldW ld ff P k iP k i
8/6/2019 KPresentation2008 2Q Ing
18/69
18
Smurfit-Stone12%
Klabin2%
Weyerhaeuser
10%
International Paper11%
Koch6%
Inland6%
Others53%
Source: RISI
Inst. Cap.Inst. Cap. WorldWorld ofofPackagingPackagingPaperPaper -- 20072007
ContainerboardContainerboard KraftlinerKraftliner
Others80%Nine Dragons3%
Weyerhaeuser4%
Smurfit-Stone5%
Klabin1%
InternationalPaper3%
Smurfit KappaGroup
4%
35 million tonnes140 million tonnes
Global Packaging MarketGlobal Packaging Market
8/6/2019 KPresentation2008 2Q Ing
19/69
19
Brazilian Market
Metallic21%
Plastic
32%
Paperboard31%
Paper 8%
Glass 6%
Wood 2%
Global Packaging Market
Metallic
20%
CoatedBoards 9%
Others 5%
Glass 10%
Rigid
Plastics
18%
Flexibles
17%
Corrugated
19%
Bags 2%
Global Packaging MarketGlobal Packaging MarketEUR 400 billionEUR 400 billion
30 % of the WorldPackaging Market
Market of EUR 120billion per yearSource: Pory
Source: IBGE
40% of the Brazilianmarket
Forestry based packaging:Forestry based packaging:
Global Market
8/6/2019 KPresentation2008 2Q Ing
20/69
20Source: RISI
Global MarketGrowth of Paper Production2007-2020
Average Growth of Global Paper Production - 2007 - 2020
2,1 %
1,0%
3,3% 3,3%
1,9%
0
0,5
1
1,5
2
2,5
3
3,5
1 50 99
Accumulated Participation in Global Production 2007 (%)
AverageGrowth
inProduction(%)
Print and Write Newspaper Tissue Containerboard Others
CAGR Average = 2,5%
8/6/2019 KPresentation2008 2Q Ing
21/69
WoodWood
8/6/2019 KPresentation2008 2Q Ing
22/69
22
WoodWoodHousing startsHousing starts
"US New Privately Owned Housing Units Started"Seasonally Adjusted Annual Rate
Thousands
900
1.100
1.300
1.500
1.700
1.900
2.100
2.300
2.500
Jan-00
May
-00
Sep-00
Jan-01
May
-01
Sep-01
Jan-02
May
-02
Sep-02
Jan-03
May
-03
Sep-03
Jan-04
May
-04
Sep-04
Jan-05
May
-05
Sep-05
Jan-06
May
-06
Sep-06
Jan-07
May
-07
Sep-07
Jan-08
May
-08
Housing Units Average
Source: US Census Bureau
ForestsForests
8/6/2019 KPresentation2008 2Q Ing
23/69
23
ForestsForestsForestry baseForestry base
Company Land
Planted Forests
thousand ha
441
218
Pine
Eucalyptus
156
62
183
Land and Forests 30/06/2008
Native preserved forests
Paran
Santa Catarina
Km
58
76
66
Average Hauling Distance
So Paulo
Correia Pinto
Otaclio Costa
100
ForestsForests
8/6/2019 KPresentation2008 2Q Ing
24/69
24
ForestsForestsCompetitive advantageCompetitive advantage
Softwood - Rotation (years)
20
25
25
35
45
100
0 20 40 60 80 100 120
Klabin
South Africa
Chile
Australia
USA
Sweden
Hardwood - Rotation (years)
7
9
11
13
37
37
0 5 10 15 20 25 30 35 40
Klabin
South Africa
Chile
Portugal
Sweden
Finland
Source: Pyry
Paran
Santa Catarina
Eucalyptus
46
21
38
Average Productivity (m3/ha/year) 30/06/2008
So Paulo
Pine
33
35
25
K ftli eKraftliner
8/6/2019 KPresentation2008 2Q Ing
25/69
25
KraftlinerKraftliner
Pioneerism and leadershipin the production ofkraftliner in Latin
America
Largest producer andexporter of packaging
paper - 74% ofBrazilian exports
6% share of the globalmarket, exporting to
more than 50 countries
Supplies Klabins 9corrugated boxes
converting plants
KraftlinerKraftliner
8/6/2019 KPresentation2008 2Q Ing
26/69
26
0
100
200
300
400
500
600
700
800
900
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08
Kraftliner price (free delivered) Average
KraftlinerKraftlinerPrice evolutionPrice evolution
Source: FOEX/Kraftliner Brown 175 g/m2
2004 2005 2006 2007 2008
541 539
602
720
US$/tonne
0%12%
20%
7818%
Coated BoardsCoated Boards
8/6/2019 KPresentation2008 2Q Ing
27/69
27
Coated BoardsCoated Boards
Carrier Board
Liquid PackagingBoards (LPB)
Folding BoxBoards
Carrier Boards
Coated BoardsCoated Boards
8/6/2019 KPresentation2008 2Q Ing
28/69
28Source: Bracelpa
Klabin'sKlabin's Market Share EvolutionMarket Share Evolution
1995 - 410 kt
Suzano32%
Ibema8%
Papirus
13%Itapag
10%
Ripasa21%
Others16%
2000 - 513 kt
Suzano34%
Ibema7%
Papirus
13%
Itapag
9%
Ripasa15%
Others19%
Klabin3%
2005 - 582 kt
Suzano31%
Ibema10%
Papirus13%
Itapag6%
Ripasa
12%
Klabin15%
Others13%
2008* - 252 kt*Jan-Jun
Suzano32%
Ibema11%
Papirus12%
Others27%
Klabin18%
Brazilian Board Shipment (excluding LPB)Brazilian Board Shipment (excluding LPB) 1995 / 20081995 / 2008
Global Board MarketGlobal Board Market
8/6/2019 KPresentation2008 2Q Ing
29/69
29
Global Board MarketG o a oa d a e28 million tpy28 million tpy
Klabin focus on the virgin fiber based segment, whichKlabin focus on the virgin fiber based segment, which
amounts to 10 million tpy:amounts to 10 million tpy:
-- Liquid Packaging Board: 3.1 million tpyLiquid Packaging Board: 3.1 million tpy
-- Carrier Board: 2.7 million tpyCarrier Board: 2.7 million tpy
-- Folding Boxboard: 4.3 million tpyFolding Boxboard: 4.3 million tpy
North AmericaNorth America8.48.4
Latin AmericaLatin America1.41.4
Africa and Middle EastAfrica and Middle East0.60.6
EuropeEurope5.65.6
Eastern EuropeEastern Europe1.51.5
AsiaAsia10.510.5
OCCOCC (Old Corrugated Container)(Old Corrugated Container)
8/6/2019 KPresentation2008 2Q Ing
30/69
30
0
100
200
300
400
500
600
Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08
OCC Price Average
392
429
405
479
379
473
540
261
360 342
423
( g )( g )
Price evolutionPrice evolution
Source: Klabin
R$/tonne
Coated BoardsCoated Boards
8/6/2019 KPresentation2008 2Q Ing
31/69
31
Attributes Softwood Stiffness
Printability Hardwood + 3 coating
Runnability State of the art equipment
Starch
Unbleached Pulp softwood fibers
Unbleached Pulp mixed hard/soft fibers + CTMP
Bleached Pulp mixed hard/soft fibers
Triple clay coating
StructureStructure
8/6/2019 KPresentation2008 2Q Ing
32/69
Coated BoardsCoated Boardsi k
8/6/2019 KPresentation2008 2Q Ing
33/69
33
Aseptic package structureAseptic package structure
The layers of aseptic package,from the outer layer inwards:
Polyethylene
Paper
Aluminium foil
Polyethylene
Polyethylene
Polyethylene
Printed design
Paper makes the packages stiff
Plastic renders them liquid-tight
Aluminium foil blocks out light and oxygen
Coated BoardsCoated BoardsG dG d
8/6/2019 KPresentation2008 2Q Ing
34/69
34
2)) Carrier BoardCarrier Board
Packaging ProductsPackaging Products
Wet tear resistanceWet tear resistance
PrintabilityPrintability
RunabilityRunability
Technical AttributesTechnical Attributes
BeveragesBeverages
Tins and bottlesTins and bottles
Dairy ProductsDairy Products
Plastic bottles and potsPlastic bottles and pots
GradesGrades
8/6/2019 KPresentation2008 2Q Ing
35/69
8/6/2019 KPresentation2008 2Q Ing
36/69
Coated BoardsCoated BoardsBrazilian Consumption per MainBrazilian Consumption per Main
8/6/2019 KPresentation2008 2Q Ing
37/69
37
Food/
Beverages93%
Personal
Care
3%
Others4%
p pp pIndustries and Market ShareIndustries and Market Share
Source: BRACELPA
ConsumptionConsumptionMain IndustriesMain Industries
20062006
Market ShareMarket Share20072007
Includes LPBIncludes LPB
Suzano
25%
Ripasa/MD
8%
Papirus9%
Klabin38%
Ibema
10%Miguel Forte
4%Bonet
3%
Ramenzoni
2%
Nobrecel
1%
Coated BoardsCoated BoardsFree delivered (USA) priceFree delivered (USA) price
8/6/2019 KPresentation2008 2Q Ing
38/69
38
0
200
400
600
800
1.000
1.200
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08
Coated Board Price Average
Free delivered (USA) priceFree delivered (USA) priceevolutionevolution
Source: RISI Index List Price 20Pt. Clay-Coated Unbleached Folding Cartonboard
2004 2005 2006 2007 2008
847897
9361,003
US$/tonne
1,031
Coated BoardsCoated Boards
8/6/2019 KPresentation2008 2Q Ing
39/69
39
Coated Boards
Source: Pyry
0 500 1,000 1,500 2,000 2,500 3,000
MeadWestvaco
Stora Enso
International Paper
Graphic Packaging
Korsnas/Frovi
Klabin
M Real
Iggesund
Potlatch
Georgia Pacific
1,000 tpy
Liquid Packaging Board Folding Box Board Carrier Board Solid Bleached Sulphate
KlabinKlabin -- 66thth Largest Producer of Virgin Fiber Coated BoardsLargest Producer of Virgin Fiber Coated Boards
Coated BoardsCoated Boards
8/6/2019 KPresentation2008 2Q Ing
40/69
40Source: Pyry
0 200 400 600 800 1,000 1,200 1,400 1,600
Stora Enso
Korsnas/Frovi
Klabin
International Paper
Potlatch
MeadWestvaco
Graphic Packaging
M Real
Iggesund
1,000 tpy
Liquid Packaging Board Folding Box Board Carrier Board
KlabinKlabin 33rdrd Largest Tetra Pak Supplier in 2009Largest Tetra Pak Supplier in 2009
Industrial BagsIndustrial Bags
8/6/2019 KPresentation2008 2Q Ing
41/69
41
Recognized for highquality products andcustomized customer
service
Market leadership in thesegments of multiwall
and SOS bags
Supplies for a variety ofindustries, highlightingthe building industry,
food, chemical productsand agribusiness
8/6/2019 KPresentation2008 2Q Ing
42/69
Industrial BagsIndustrial BagsBrazilian Consumption of CementBrazilian Consumption of Cement
8/6/2019 KPresentation2008 2Q Ing
43/69
43
Brazilian Consumption of CementBrazilian Consumption of Cement
Million tonnes
2,0
3,0
4,0
jan feb mar apr may jun jul aug sep oct nov dec
2006 2007 2008
Source: SNIC
Corrugated BoxesCorrugated Boxes
8/6/2019 KPresentation2008 2Q Ing
44/69
44
Leadership of thecorrugated boxesmarket in Brazil
Largest production
capacity in Brazil withnine corrugated boxesconverting plants
Klabins products reachevery industry sector,
providing totalprotection for packaged
products transported
8/6/2019 KPresentation2008 2Q Ing
45/69
Corrugated BoxesCorrugated BoxesBrazilian shipmentsBrazilian shipments
8/6/2019 KPresentation2008 2Q Ing
46/69
46
Thousand tonnes
140
150
160
170
180
190
200
210
Jan-
02
May-
02
Sep-
02
Jan-
03
May-
03
Sep-
03
Jan-
04
May-
04
Sep-
04
Jan-
05
May-
05
Sep-
05
Jan-
06
May-
06
Sep-
06
Jan-
07
May-
07
Sep-
07
Jan-
08
May-
08
Shipments Annual Average
179
157
176180 182
187
Source: ABPO
189
p
8/6/2019 KPresentation2008 2Q Ing
47/69
Income StatementIncome StatementConsolidatedConsolidated
8/6/2019 KPresentation2008 2Q Ing
48/69
48
R$ Million 2005 2006 2007 1H07 1H08 2Q08
Volume (1,000 tonnes) 1.377 1.393 1.437 737 798 412
Net Revenue 2.706 2.713 2.796 1.405 1.521 780
Gross Profit 1.025 963 953 514 427 198
Gross Margin 38% 35% 34% 37% 28% 25%
Total Operating Expenses (516) (497) (455) (232) (239) (123)
Operating Profit (before fin Results) 356 598 842 282 187 75
Net Financial (Expenses)/Revenue (154) 132 345 208 163 174
Net Income (loss) 309 473 621 372 252 175
8/6/2019 KPresentation2008 2Q Ing
49/69
Klabin'sKlabin's PerformancePerformance2Q082Q08
8/6/2019 KPresentation2008 2Q Ing
50/69
50
780740 715
2Q08 1Q08 2Q07
412386 378
2Q08 1Q08 2Q07
Does not include wood Includes wood
Net RevenueNet RevenueR$ millionR$ million
Sales VolumeSales Volume1,000 tonnes1,000 tonnes
Volume and Net Revenue growingVolume and Net Revenue growing
PerformancePerformance 2Q082Q08Per MarketPer Market
8/6/2019 KPresentation2008 2Q Ing
51/69
51
DomesticDomestic
MarketMarket63%63%
ExportsExports
37%37%
Does not include woodDoes not include wood
DomesticDomestic
MarketMarket76%76%
ExportsExports
24%24%
Includes woodIncludes wood
R$ 1405 millionR$ 1405 millionR$ 780 million412 thousand tonnes
Net RevenueNet RevenueSales VolumeSales Volume
PerformancePerformance 2Q082Q08Per ProductPer Product
8/6/2019 KPresentation2008 2Q Ing
52/69
52
Does not include woodDoes not include wood Includes woodIncludes wood
Net RevenueNet RevenueSales VolumeSales Volume
CoatedCoated
BoardsBoards
32%32%
IndustrialIndustrial
BagsBags
8%8% KraftlinerKraftliner
28%28%
OthersOthers
2%2%
CorrugatedCorrugated
BoxesBoxes
30%30%
CoatedCoated
BoardsBoards
30%30%
IndustrialIndustrial
BagsBags
13%13%
KraftlinerKraftliner
16%16%
WoodWood
7%7%
CorrugatedCorrugated
BoxesBoxes
32%32%
OthersOthers
2%2%
R$ 780 million412 thousand tonnes
Exports DestinationExports Destination1H081H08
8/6/2019 KPresentation2008 2Q Ing
53/69
53
US$ 233 million314 thousand tonnes
Net RevenueNet RevenueSales VolumeSales Volume
EuropeEurope
28%28%
AfricaAfrica
9%9%
LatinLatin
AmericaAmerica
43%43%
AsiaAsia
15%15%
NorthNorth
AmericaAmerica
5%5%
AsiaAsia
16%16%
EuropeEurope
25%25%
NorthNorth
AmericaAmerica
6%6%AfricaAfrica
7%7%LatinLatin
AmericaAmerica
46%46%
EBITDAEBITDA
8/6/2019 KPresentation2008 2Q Ing
54/69
54
179
205
138
200200203
184
170169
186
23%
28%
21%
28%28%29%26%
24%25%
29%
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08
EBITDA - R$ million EBITDA Margin
2Q08 EBITDA Margin of 23%2Q08 EBITDA Margin of 23%
Financial RatiosFinancial RatiosKlabin & CompsKlabin & Comps
8/6/2019 KPresentation2008 2Q Ing
55/69
55
Highest margins + Lowest multiples + New plant start-up =
Upside Opportunity
Highest margins + Lowest multiples + New plant startHighest margins + Lowest multiples + New plant start--up =up =
Upside OpportunityUpside Opportunity
USA Brazil USA USA Finland Finland
NET SALES (mm USD) 21,890 1,444 6,906 2,316 18,332 13,755
EBITDA (mm USD) 2,740 363 920 441 1,934 2,055
EBITDA Margin (%) 12.5% 26.5% 13.3% 19.0% 10.9% 15.4%
Net Income (mm USD) 1,168 304 285 170 96 108
Net Margin(%) 5.3% 22.2% 4.1% 7.3% 0.5% 0.8%
Projected EPS Growth 2.0 0.1 0.2 0.4 0.4 0.8
P/E 2008 13.9 13.6 25.4 16.5 20.0 16.7
P/E 2009 10.9 13.0 19.0 14.1 15.6 14.4
Sou rce: Bloom berg , Reut ers, Yahoo! Finance, Goog le Finance, Com panies
CapexCapex and Net Debtand Net Debt
8/6/2019 KPresentation2008 2Q Ing
56/69
56
524
322
750
307
1,914
836
1,354
2006 2007 1H08 2008E
Capex MA 1100
702
2,007
2,272
2006 2007 1H08
1.0xEBITDA
2.7x
EBITDA
Net DebtNet DebtR$ millionR$ million
CapexCapexR$ millionR$ million
MAMA--1100 Project: Final phase of implementation1100 Project: Final phase of implementation
3.1x
EBITDA
Debt AmortizationDebt AmortizationScheduleSchedule -- 30/06/0830/06/08
8/6/2019 KPresentation2008 2Q Ing
57/69
57
Foreign Currency 58 28 13 41 41 172 271 417 471 247 340
Local Currency 2.035 17 14 31 367 446 308 293 269 268 384
Cash 3Q08 4Q08 2008 2009 2010 2011 2012 2013 2014After2015
2,093
72
408
618
27
R$ 4,365 Million
ST: 5% LT: 95%
10.5%
5.1%
Average Debt Maturity Average Annual Cost
Total 52 months
Local 47 months
Foreign 59 months
45
579
Low debt repayment in 2008Low debt repayment in 2008
710 740
515
724
Participation of Local andParticipation of Local andForeign DebtForeign Debt -- 30/06/0830/06/08
8/6/2019 KPresentation2008 2Q Ing
58/69
58
Others
28%
Trade
Finance
72%
Other
21%
BNDES79%
Foreign Currency (46%)Foreign Currency (46%)Local Currency (54%)Local Currency (54%)
Balanced local and foreign currency debtBalanced local and foreign currency debt
Net Income andNet Income andDividendsDividends
8/6/2019 KPresentation2008 2Q Ing
59/69
59
309
473
621
172
231
293
2005 2006 2007
Net Income Declared Dividends
R$ million
3.5%*
6.1%*
6.0%*
* Dividend Yield
ShareShares Performance ats Performance atBovespaBovespa
8/6/2019 KPresentation2008 2Q Ing
60/69
60
4,4 4,4
3,6
7,1
5,8
4,04,3
5,0
6,4
5,5 5,6
6,9
6,2
5,4 5,55,0
4,4
5,7
3,63,43,4
2,2 2,2
2,6
2,8
3,03,2 3,1
2,7
3,5
3,73,6
3,23,0
3,1
3,5
0,0
2,0
4,0
6,0
8,0
10,0
Jan- 07 Feb- 07 Mar -07 Apr -07 May- 07 Jun- 07 Jul- 07 Aug- 07 Sep- 07 Oct -07 Nov- 07 Dec- 08 Jan- 08 Feb- 08 Mar -08 Apr -08 May- 08 Jun- 08 0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
Daily Trading Volume Market Capitalization
US$ million US$ billion
Market capitalization and daily trading volumeMarket capitalization and daily trading volume
8/6/2019 KPresentation2008 2Q Ing
61/69
61
Expansion of Coated BoardsExpansion of Coated Boards
MA 1100 Project
8/6/2019 KPresentation2008 2Q Ing
62/69
62
Brownfield ProjectBrownfield Project
Progressive start up of equipmentsProgressive start up of equipments
New board machine moving forward along the industrial andNew board machine moving forward along the industrial andcommercial learning curvescommercial learning curves
Start up of the new power boiler (Biomass)Start up of the new power boiler (Biomass) Completed the energy source of the MonteCompleted the energy source of the Monte AlegreAlegre millmill
70% of electric energy consumption provided by self70% of electric energy consumption provided by self--generationgeneration
Reduction of variable costsReduction of variable costs
Fixed cost does not grow by the same amount of theFixed cost does not grow by the same amount of thecapacity expansioncapacity expansion
8/6/2019 KPresentation2008 2Q Ing
63/69
Electrical Energy
8/6/2019 KPresentation2008 2Q Ing
64/69
64
PurchasedE.Energy
35%
Hidro-Electric27%
Biomass38%
PurchasedE.Energy
30%
Hidro-Electric
15%
Biomass55%
After MAAfter MA--11001100
Reduced dependence on purchased energyReduced dependence on purchased energy
65% of electric energy65% of electric energy
selfself--sufficiencysufficiency
70% of electric energy70% of electric energy
selfself--sufficiencysufficiency
85 MWh 150150 MWhMWh
8/6/2019 KPresentation2008 2Q Ing
65/69
65
FutureFuture
8/6/2019 KPresentation2008 2Q Ing
66/69
New Structure
8/6/2019 KPresentation2008 2Q Ing
67/69
67
CEO
BU KlabinForestry
BU KlabinPaper
BU KlabinPackaging
BU KlabinIndustrial Bags
HumanResources
Auditing
Communication
& SocialResponsibility
CFO &
IR Officer
Planning &
Control
Projects,Indl. Tech. &
Procurement
COO
Legal
Executive
Board
FutureFuture3.0 Million3.0 Million tonnestonnes/year/year
8/6/2019 KPresentation2008 2Q Ing
68/69
68
Feasibility studies for the capacity increase andFeasibility studies for the capacity increase andmodernization projects are under review, aiming to achievemodernization projects are under review, aiming to achievehigher profitabilityhigher profitability
Capacity increase to 3 millionCapacity increase to 3 million tonnestonnes by 2012by 2012
Cost reduction and higher productivityCost reduction and higher productivity
8/6/2019 KPresentation2008 2Q Ing
69/69
6969
CreatingCreating Value and GrowingValue and Growing
IR ContactIR Contact
Phone: (55 11) 3046Phone: (55 11) 3046--8404 / 8415 / 84168404 / 8415 / 8416
www.klabin.com.brwww.klabin.com.br
[email protected]@klabin.com.br