Professional Documents
Culture Documents
December 2011
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.
Financial figures
Net revenue
(R$ million)
24%
3,663
3,097 2,960
22%
Sales volume
28% 24%
(thousand tonnes)
11%
1,716 1,579 1,544
32%
61%
64%
68%
2008
2009
2010
2008
2009
2010
Domestic market
3
Export market
EBITDA
(R$ million)
500 450 400 350 300 250 200 150 100 50 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 5% 0% 180 150 10% 199 219 242 236 25% 22% 20% 252 231 249 190 277 27% 27% 29% 26% 26% 25% 26% 28% 35% 30% 25% 20% 15%
EBITDA
4
EBITDA Margin
Business units
Wood logs 7% *
Kraftliner 14% *
Notes: * Percentage of 9M11 net revenue. In 9M11, 1% of sales volume was composed of other products.
Domestic market
wood logs
Domestic market
o.c.c. recycled paper corrugated boxes
paper capacity: 1.9 mi tonnes Notes: All figures refer to installed production capacity. OCC Old Corrugated Container
95 Km *
95 Km * 51 Km * 51 Km *
So Paulo Paran
73 Km *
Santa Catarina
73 Km *
Note: All forests used in the paper production are certified by FSC (Forest Stewardship Council). * Average distance excluding Vale do Corisco.
Coated boards
LPB + FBB
Sales volume
(thousand tonnes)
Net revenue
(R$ million)
656 488
Monte Alegre (PR)
499
46% 47%
531
40%
46%
60%
9M11
9M10
2010
2009
9M11
9M10
2010
2009
Note:
Domestic Market
Exports
Source: Pyry, 2010 and ABLV (Brazilian Association of UHT Milk) Notes: LPB Liquid Packaging Board / UHT Ultra High Temperature
10
Klabins share
(%)
27%
28%
2007
2008
2009
2010
9M11
2007
2008
2009
2010
9M11
Brazilian Market
Klabin's share
11
Kraftliner
Goiana (PE)
URUGUAI
Sales volume
Net revenue
(R$ million)
(thousand tonnes)
Guapimirim (RJ) Piracicaba (SP) Angatuba (SP) Monte Alegre (PR) Correa Pinto (SC) Otaclio Costa (SC)
466 385
36%
42%
40% 22%
9M11
9M10
2010
2009
9M11
9M10
2010
2009
Kraftliner Recycled
Domestic Market
Exports
12
Kraftliner
Latin America 7% Asia & Oceania 16% North America 56% Europe 18% Af rica & Middle East 3%
34 104 9 147
Kraftliner market in Brazil Virgin fiber kraftliner capacity totals 2 million tonnes in Brazil; Klabins capacity: 800 thousand tonnes; Most producers of corrugated boxes are non-integrated and as a result they manufacture sheets with recycled paper; Non-integrated producers have their cost determined by the price of OCC (old corrugated containers).
13
Corrugated boxes
Domestic market only; Brazilian demand in 2010 was 3.1 million tonnes *; Klabins market share: 16%; Fragmented market with many players in Brazil.
Goiana (PE)
Sales volume
(thousand tonnes)
Net revenue
(R$ million)
Betim (MG)
Itaja (SC)
So Leopoldo (RS)
9M11
9M10
URUGUAI
2010
2009
9M11
9M10
2010
2009
14
Industrial bags
Domestic and export markets; Few players; 80% cement
Goiana (PE)
Sales volume
(thousand tonnes)
Net revenue
(R$ million)
472 142
Lages 1 (SC) Lages 2 (SC)
359
356
429
Pillar
9M11
9M10
9M11
9M10
2010
2009
15
Performance
16
High performance
1. Monte Alegre mill R$ 300 million (basis of fixed costs); 2. G&A R$ 150 million (basis of fixed costs); 3. Forestry benchmark; 4. Change in structure of the forestry area; 5. Forestry R$ 200 million (basis of fixed costs); 6. High return investments; 7. Reverse outsourcing.
17
INDG *
50 coordination teams 8 fixed cost groups People Maintenance Stoppages Third parties Rent Transport Taxes and ensurance Comunication and general expenses Total Warehouse Shipments R$ R$ R$ R$ R$ R$ R$ R$ R$ Paper Machine R$ R$ Entities: R$ R$ R$ R$ R$ R$ R$ Wood yard ... Laws Total R$ R$ R$ R$ R$ R$ R$ R$ R$
R$ R$ R$ R$ R$ R$ R$ R$ R$
R$ ... R$ R$ ... R$ where the expenses occur R$ ... R$ R$ ... R$ R$ ... R$ R$ ... R$ R$ ... R$ R$ ... R$ R$ ... R$ Crossed control: 18 Areas
6 variable cost groups Wood and fibers Energy and utilities Chemicals GRU/GFI Chemicals GPP Paints Packaging and other materials Total
PMAD R$ R$ R$ R$ R$ R$ R$
ESCO R$ R$ R$ R$ R$ R$ R$
RVAP the R$ R$ R$ R$ R$ R$ R$
Total R$ R$ R$ R$ R$ R$ R$
same expense!
R$ R$ R$ R$ R$ R$ R$ ... ... ... ... ... ... ...
* INDG Institute for Managerial Development the largest organization in business management consultancy in Brazil.
18
Cost reduction
Forestry benchmark Harvest Increase length of the logs; Change in shift operation; Reverse outsourcing;
19
Capex
(R$ million) 23%
Vale do Corisco
49%
587 247
2008 2009
386
2010
305
2011*
Improvements
Biomass boiler in Otaclio Costa mill Evaporation plant improvement in Otaclio Costa mill High voltage transmission line in Monte Alegre mill Biomass boiler in Correa Pinto mill Debottlenecking in Monte Alegre mill Mar/11 Oct/11 Nov/11 Jun/12 Oct/12 Investments R$ 290 million
Capacity growth
New industrial bags production line New corrugators in Jundia DI and Goiana mills
*From January to September 2011.
Dec/11 Jun/12
20
Reverse outsourcing
Industrial
Internal transportation (forklift trucks) Monte Alegre mill maintenance Fireman team in Santa Catarina State Otaclio Costa and Correa Pinto mills maintenance Aug/11 Sep/11
245 employees
Sep/11 Oct/11
Forestry
Angatuba (So Paulo State) Soil preparation and mechanization Santa Catarina State harvesting Jan/12 Feb/12 Jul/12
140 employees
21
Unit cash cost (excluding non recurring) INDG in Monte Alegre mill; Reverse outsourcing in Monte
-5%
22
Variable compensation
Change in compensation metrics for performance improvement
Klabin adopted new metrics of variable compensation according to the best practices of public companies in Brazil.
Focus in variable compensation; Aggressive individual and team goals; Long-term incentives through equity grants (matching); Starts with all executive officers and directors.
Better performance; Alignment; Improvement of strategic behavior.
23
Strategy
24
Strategy
Kraftliner
25
Vale do Corisco
Arapoti (Arauco)
Jaguariaiva (Arauco)
Vale do Corisco
With this acquisition, Klabins planted forests will total 243 thousand hectares, in which 110 thousand hectares will be available for new industrial projects, being 60% pine and 40% eucalyptus.
27
FSC Synergy
Productivity
Flex
Energy generation
28
Main uses
Tissue
Eucalyptus
Specialties
Packaging
Long Fiber
Tissue
Fluff
29
Spread
US$/tonne
325
275
265
225
175
160
125
75
25
-25
jan/07 jan/08 jan/09 jan/10 jan/11
SBSK x BEKP
30
Note: SBSK: Southern Bleached Softwood Kraft ; BEKP: Bleached Eucalyptus Kraft Pulp.
Fluff x BEKP
Lack of new long fiber capacities in Brazil and all over the world.
(thousand tonnes)
2,030
479
Imported
1551
High yield of pine in Brazil enables competitive advantage also in this segment.
2010
Source: Bracelpa
31
*Includes Fluff
Integrated
Market pulp
Synergy
Klabin: 50 years experience on that region enables project synergies
Energy supply
Forestry management
32
33
Competitive advantage
Hardwood Rotation
(years)
Softwood Rotation
(years)
7 9 11 13 37 37
15 25 25 35 45 100
34
US$ / tonne
700 600 500 400 300 200 100
Bleached hardwood
Bleached softwood
France / Belgium
Brazil
BC Interior
Finland
Indonesia
Sweden
Finland
Russia
Chile
Chile
USA
China
Japan
USA
Sweden
Eastern Canada
BC Coast
Source: Klabin and Hawkins Wright, July 2011 FOB - Hardwood 1Q11 Estimates / Softwood 2Q11 Estimates
35
Eastern Canada
Canada
Strategy
Kraftliner
36
Appendix
37
Common
Monteiro Aranha 20% BNDES 15%
Preferred
Treasury 5%
316,827,563 shares
600,855,733 shares
Note:
38
9M11 Highlights
Sales volume: 1% higher than 9M10; Net revenue: 6% growth comparing to the 9M10;
Appreciation of the dollar at the end of September led Net debt / EBITDA ratio from 2,2x in December 2010 to 2,4x in September 2011;
Net income: R$ 60 million, affected by the exchange rate variation in September; Diversification of Klabin's coated boards line offset the weaker domestic market; Brazilian corrugated boxes shipments 1% higher; Large maintenance stoppage in Monte Alegre mill in June; Complete revision of Klabins executive compensation system approved by Board of Directors.
39
Sales
Sales volume
(Thousand tonnes)
Net revenue
(R$ million)
1,306
1,299
32%
2,895
22%
2,732
22%
34%
434
29% 71%
435
34% 66%
436
29% 71%
66%
68%
991
19% 81%
947
22% 78%
983
21% 79%
78%
78%
3Q11
2Q11
3Q10
9M11
9M10 Total
3Q11
2Q11
3Q10
9M10
Domestic Market
Export Market
40
3Q11
2Q11
3Q10
3Q11
2Q11
3Q10
41
Net debt
4.4 3.7
3,192
3.6
3.1
2.1
2,002
2,676
2,528
2,462
2,886
2.0
2.4
2,313
Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11
6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0
2,106
42
1,893
505
Gross debt
397 340 283 233 406
392
136 251 190 90 43
2017
R$ 5,343
367 397
353 256
329
325
369
230
53
2018
29
2019
9
2020 forward
CASH
4Q11
2012
2013
2014
2015
2016
Local Currency
Foreign Currency
Income statement
3Q11
Gross Revenue Net Revenue Change in fair value - biological assets Cost of Products Sold Gross Profit Selling Expenses General & Administrative Expenses Other Revenues (Expenses) Total Operating Expenses Operating Income (before Fin. Results) Financial Expenses Financial Revenues Net Foreign Exchange Losses Net Financial Revenues Net Income before Taxes Income Tax and Soc. Contrib. Net income (loss) from continuing operations . Owners of the Company . Noncontrolling interests Depreciation and amortization Change in fair value of biological assets EBITDA 1,199,418 990,623 19,255 (729,482) 280,396 (76,594) (64,311) 7,359 (133,546) 146,850 (105,533) 89,135 (500,955) (517,353) (370,503) 134,487 (236,016) (243,055) 7,039 149,811 (19,255) 277,406
2Q11
1,145,202 947,447 145,084 (772,704) 319,827 (76,652) (56,715) (9,603) (142,970) 176,857 (116,888) 84,090 102,273 69,475 246,332 (76,956) 169,376 163,143 6,233 158,630 (145,084) 190,403
3Q10
1,187,347 982,593 124,461 (767,347) 339,707 (77,427) (57,494) (1,490) (136,411) 203,296 (73,666) 66,203 151,385 143,922 347,218 (115,664) 231,554 225,706 5,848 173,271 (124,461) 252,106
9M11
3,489,050 2,895,075 272,146 (2,213,520) 953,701 (238,996) (176,367) (11,368) (426,731) 526,970 (316,344) 241,978 (339,954) (414,320) 112,650 (30,311) 82,339 60,290 22,049 462,335 (272,146) 717,159
9M10
3,305,865 2,732,377 301,013 (2,149,524) 883,866 (222,718) (158,334) 3,235 (377,817) 506,049 (231,591) 167,416 81,786 17,611 523,660 (175,767) 347,893 334,634 13,259 525,337 (301,013) 730,373
Note: Due to rounding, some figures in tables may not result in a precise sum.
44
Wood
Forests (thousand hectares)
thousand ha Pine Eucalyptus Native Others Total Paran * 106 70 144 37 357 Santa Catarina 55 7 64 13 139 So Paulo 5 3 1 9 Total 161 82 211 51 505
Sales volume
(thousand tonnes)
Net revenue
(R$ million)
So Paulo Paran
3113
Santa Catarina
2352 2091
9M11
9M10
2010
2009
9M11
9M10
2010
2009
Notes:
45
OCC Price
518 465 401 346 317 255 240 216 256 355 383
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
Quarter average
Monthly price
46
Annual shipments
(Thousand tonnes)
Quarterly shipments
(Thousand tonnes)
2008
2009
2010
2010 *
2011 *
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
Quarter average
Monthly shipments
Source: ABPO (Brazilian Association of Corrugated Boxes. Last update: September 30th January to September
47
Imports
Share of imported paper in Brazil Apparent consumption 2010 * 2011 * 366 461 344 346 820 344 496 352 308 843 Share of imports 2010 * 2011 * 79.8% 11.5% 54.3% 5.6% 0.3% 78.7% 12.2% 61.8% 7.0% 0.2%
(thousand tonnes) Newsprint Uncoated printing and writing Coated printing and writing Coated boards FBB Kraftliner
Effective imports of goods packed (monthly average - tonnes) Industrialized food Pharmaceutical Toys Hygiene Footwear 2009 ** 252,571 2,727 2,550 3,846 1,506 2010 ** 286,043 3,201 3,611 5,761 1,320 2011 ** 334,603 3,116 3,145 6,995 1,757
2011 ** / 2010 **
Note:
* January to July 2011. Source: Bracelpa (Brazilian Association of Pulp and Paper) ** January to June 2011. Source: SECEX / MDIC - Receita Federal SP. 07/26/2011
48
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