Professional Documents
Culture Documents
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 of the International Financial Reporting Standards IFRS, and may be defined and calculated differently by other companies.
History
Advanced on the packaging segment, producing corrugated Launched Klabin and Lafer families founded Klabin Irmos & Cia. production of newsprint and packaging paper 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 1100
1899
A company in the office supplies trading and printing businesses
1934
1947
1979
Professional management
2000
2003
2008
2011
February New CEO
Founded Klabin do Parana, the first integrated pulp and paper mill in Brazil
Common
Monteiro Aranha ; 20%
Preferred
Treasury; 4% Foreign Investors; 30%
Klabin Irmos ; 59%
BNDES; 17%
316,827,563 shares
600,855,733 shares
Mar09
6
Apr09
9
May09
6
Jun09
7
Jul09
9
Aug09
9
Sep09
10
Oct09
9
Nov09
12
Dec09
9
8 9 14 10
May10
8
Jun10
7
12 15 14 17 22 14
Jan11 Feb11
12
13
Mar11
Corporate Governance
Joined BM&FBOVESPAs level 1 of Corporate Governance Tag along rights of 70% for preferred shares
Global Scale Corporate Credit Rating BB+ National Scale Brazil Rating brAA+
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
+ +
OCC
Pine 250 thousand
WOOD
tonnes CTMP
Hardwood
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. CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container
LPB
FBB
CB
Notes: In 2010, 2% of sales volume was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board
Klabins Presence
Forestry Alto Paranapanema (SP) Planalto Catarinense (SC) Campos Gerais (PR) Ports Suape (RN) Santos(SP) Paranagu (PR) Itaja (SC) So Francisco do Sul (SC)
Industrial Bags Lages (SC) Pilar (Argentina) Goiana (PE) Recycled Papers Goiana (PE) Guapimirim (RJ) Piracicaba (SP)
Corrugated packages Goiana (PE) Feira de Santana (BA) Betim (MG) Del Castilho (RJ) Jundia (SP) Piracicaba (SP) Itaja (SC) So Leopoldo (RS) Papers Angatuba (SP) Correia Pinto (SC) Otaclio Costa (SC) Telmaco Borba (PR)
ARGENTINA URUGUAI
Business Units
Forestry
Papers
Conversion
11
Average Hauling Distance Monte Alegre Correa Pinto Otaclio Costa Angatuba
Km 42 76 66 100
12
Forest yield
Pine 39 42 -
Eucalyptus 50 27 34
Until 1973
1974 - 1985
1986 - 2005
2006 - 2008
2009 - 2011
13
Competitive advantage
Softwood - Rotation (years) Klabin South Africa Chile Australia USA Sweden
0 20 40 60 80 20 25 25 35 45 100 100
Hardwood - Rotation (years) Klabin South Africa Chile Portugal Sweden Finland 0 10 20 30 7 9 11 13 37 37 40
14
Wood
3.113
260
1.892
158
682
854
817
761
737
53
69
72
66
68
15
Carrier Board
16
Coated Boards
Sales volume (thousand tonnes)
+24%
+26%
1.247
656 531
46% 40%
988
163
47% 53%
165
49% 51%
171
46% 54%
158
43% 57%
168
60% 50% 50%
54%
304
307
331
306
332
1Q10 2Q10 3Q10 4Q10 1Q11 2009 2010 Domestic Market Exports
17
1,102
1,124 1,081
1,047
784
717
532
Others
United States
Klabin MA
Sweden
Canada
Poland
Chile
Finland
Brazil
8 million tonnes
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 2Q10
18
Carrier Board
Korsnas Stora Enso Klabin International Paper MeadWestvaco Potlatch 0 500 1.000 1.500 2.000 (Thousand tonnes)
19
Brazil
UHT milk consumption versus total milk consumption (million litters)
5.230 3.600 3.100 1.700 730 5.700 4.220 5.993 5.050 4.403 5.308 6.660 7.103 7.042
5.252
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Source: ABLV (Brazilian Association of UHT Milk) and Tetrapak December, 2009
20
Klabin
Source: Bracelpa, 2010
Others
87 82 75
Triple layer coating Kraft pulp bleached, short fiber Kraft pulp short/long fiber mix + CTMP Kraft pulp long fiber Starch
21
Kraftliner
Sales volume (thousand tonnes) 393
-6%
367
+21%
466 385
78%
60%
110
74% 26%
85
47% 53%
85
48% 52%
88
67% 33%
111
71% 29% 22% 40%
117
104
122
124
141
Domestic Market
Exports
B razilian O C C d elivered p rice R$ / to nne
518 465
495 401 346 355 317 255 240 256 216 383
493
380
4Q 07
1Q 08
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10 1T 11
S o u rc e : B ra c e lp a
Q u a rte r a ve ra g e
M o n th ly vo lu me
22
Jan07 Apr07 Jul07 Oc t07 Jan08 Apr08 Jul08 Oc t08 Jan09 Apr09 Jul09 Oc t09 Jan10 Apr10 Jul10 Oc t10 Jan11
797
798
679
610 547
362
Klabin MA Poland
United States
South Africa
ustria Germany
Sweden
Spain
Others Europe
Canada
Russia
France
Portugal
Finland
Brazil
17 million tonnes
34 million tonnes
Notes: Most of US production includes recycled paper. List Price Europe (US$/tonne). Source: FOEX Kraftliner Brown 175 g/m. Average cash cost FOB (US$/tonne). Source: RISI Analytical Cornerstone 2Q10.
23
Corrugated Boxes
Sales volume (thousand tonnes)
+12%
512 457 946
+22%
1.157
119
135
132
126
121
249
290
314
304
288
Chemical 8%
24
218 214 209 197 185 181 184 168 183 197 198 201 216
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1/11
Quarter average
Monthly volume
25
Industrial Bags
Sales volume (thousand tonnes)
+9%
+10%
33
36
38
34
33
109
119
128
116
116
4Q07
1Q08
2Q08
3Q08
2Q09
2Q10
3Q10
4Q10
26
Food 11%
Source: Klabin
27
Financial Performance
28
Financial Highlights
R$ million Gross revenue Net revenue Change in fair value - biological assets Cost of Products Sold Gross profit Selling expenses General & administrative expenses Other revenues (expenses) Operating Income (before fin. results) Financial expenses Financial revenues Net foreign exchange losses Net Income before Taxes Income tax and soc. contrib. Minority Interest Net Income Depreciation/Amortization/Exhaustion Change in fair value - biological assets EBITDA EBITDA Margin
1Q11 1,144 957 108 (711) 353 (86) (55) (9) 203 (94) 69 59 237 (88) (9) 140 154 (108) 249 26%
4Q10 1,125 931 148 (592) 487 (77) (57) (38) 315 (77) 67 43 348 (114) (9) 225 64 (148) 231 25%
1Q10 1,022 844 88 (665) 267 (73) (46) 0 148 (82) 42 (41) 68 (23) (3) 42 181 (88) 242 29%
2010 4,431 3,663 449 (2,741) 1,371 (300) (215) (34) 821 (308) 234 125 872 (290) (22) 560 589 (449) 962 26%
2009 3,591 2,960 65 (2,498) 526 (300) (177) 11 60 (390) 171 664 505 (333) (3) 169 751 (65) 747 25%
29
1,716
0%
555
32% 68%
554
989
36% 64%
1,161
+17%
2009
Domestic Market Exports
2010
3,663
+14%
713 2,248
24% 76% 22% 78%
813 2,850
+27%
2009
Domestic Market Exports
2010
Sales Volume
Net Revenue
North America 6%
Africa 5%
Europe 17%
Asia 27%
Asia 30%
32
EBITDA R$ million
35%
350 27% 300 250 200 199 150 100 50 0 1Q09 2Q09 3Q09 4Q09 180 150 25% 22% 27%
800 30%
28% 700 26% 60025% 24% 500 22%
242 219
400 20%
18% 300 16% 200 14%
20%
15%
100 12%
10% 0 1Q10 2Q10 3Q10 4Q10 1Q11
EBITDA
EBITDA Margin
33
2010
Freights, 10%
Energy/Oil, 13%
Labor/Services, 30%
R$ 2,703 mi
Chemicals, 15%
34
1,575 1,434
315 297 446 401
736
814
2009
Variable costs Fixed Costs
2010
SG&A
35
Indebtedness
Net Debt R$ 2.0 billion Net Debt / EBITDA = 2.1x Average Maturity = 41 months Debt cost Local currency: 8.4 % p.y. Foreign currency: 3.8% p.y. + FX
6000
5000
4,7 4,4
4000
3,3
3000
3,5
3.766 3.786 3.192 2.867
3,7
2,2
2.106
2,2
2.128
2,1
2.002
2000
1,8
2.396
2.378
1000
0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
36
841
788
845
460
684 504
255
2010 2011 2012 2013 2014 2015
310 167
2016 2017 2018/2022
37
Capex R$ million
The Company invested R$ 386 million in 2010
1,674
Papers 47%
500
Forestry 35%
2007
2008
2009
2010
2011*
Dividends Payment
(R$ million)
Treasury Stocks
177 123
2006
2007
2008
2009
2010*
Future
40
21 16 14 11 12 10 13 14
2006 - 2008
2009 - 2011
2012 - 2014
from 2015
Eucalyptus
Pine
Forestry
Planting of 20,000 hectares and forest maintenance: R$ 120 million; Harvesting system, machines and equipments : R$ 8 million.
Papers
Monte Alegre
High-voltage transmission line: R$ 60 million; Replacement of line 1 debarker: R$ 8 million.
Otaclio Costa
Biomass boiler: R$ 35 million; Technological update of evaporation line: R$ 35 million.
Correia Pinto
Acquisition of a new biomass boiler; Technological update of the recovery boiler: R$ 12 million
42
Conversion
Corrugated Boxes
R$ 42 million investment in new printers, technological update of corrugators, material handling lines and the cargo unitization and palletization equipment; New R$ 98 million investment approved in October for acquisitions of new corrugator, a new printer, and technological updates.
Industrial Bags
New production line of multi-layered bags was acquired and will be installed at Lages plant in Santa Catarina, with startup expected in the first half of 2011.
43
44
IR Team IR Team Phone: (11) 3046-8404 / 8415 / 8416 Phone: (11) 3046-8404 / 8415 / 8416 www.klabin.com.br www.klabin.com.br invest@klabin.com.br invest@klabin.com.br
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