institutional presentation - 4q12

7/29/2019 Institutional Presentation - 4Q12

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Institutional PresentationFebruary, 2013


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Disclaimer

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.

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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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A differentiated company


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A differentiated company

Competitive forest

Market position

4

Industrial technology

Superior cost management

Clear growth strategy


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Differentiation of forests

Heart of Paran(logistics and volume)

Massive forest

Brazil

Distribution of rain

Soil quality

Insolation

5

State ofParan

Monte Alegre


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Forestry productivityParan

Cloning

Forestry38

55 58

37

49

62

71

18

6

20052012

20102000 2015

Growth

Density

Factory yield

1995

Eucalyptus m3/(ha.year)

productivity

Tonnes of pulp/(ha.year)

MAI8

109

1413

15


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Market positionLeader in the Brazilian packaging paper market,where we allocate more than 50% of our capacity

paper

CoatedBoards

Kraftliner

7

67050%

marketshare

thousandtonnes sold

in 2012

387

40%installedcapacity

thousandtonnes sold

in 2012

Sole supplier ofliquid packaging board

in Latin America


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Market positionconversionLeader in the Brazilian packaging market where

we allocate more than 95% of capacity

IndustrialBags

CorrugatedBoxes

8

50%market share

Second playersmarket share is 16%

15%market share Second playersmarket share is 9%


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Destination of Klabins products

Strongly linked to the consumer market

9

Sales volume destination

paper and packaging

68%Food

Building

Other consumergoods

Others

13%

7%


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Exports

10

Sustainableexport capacity

One of the three largest suppliers forTetra Pak in the world, with long termrelationship of more than 25 years

Export revenues accountfor approximately US$ 500million per year


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Industrial technologyConstantly investing

in the latest equipment and production efficiency

2008 2009 2010 2011 2012

11

Machine 9 of coatedboards in Monte Alegre,

the best and most modernin Latin America

Start upof a newcorrugator inJundia DI (SP),the widest andfastest in Brazil

and one of themajors of the

world

4 new

printers forcorrugatedboxes

Start up of anew corrugator

in Goiana (PE)


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Superior cost control

Reversion of excessive outsourcing

Focus in 2011: Monte Alegre mill

Focus in 2012: Forestry

Matrix control of costs (Falconi)

1%

1,607

1,595

12

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

20122011


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Superior cost control

Group of executives with extensive experience in themarket, merged with the hiring of new executives

New compensation metrics:individual and collective oals

teamwork and proper incentives

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Aggressivetargets

Variable compensation linked to results,

focus on short-term and long-term

Long-term incentivesthrough stock matching


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Adjusted EBITDA LTM

47% growth

25%26%

28%29% 31%

1,352

32%

14

Adjusted EBITDA LTM (R$ million) EBITDA LTM (R$ million)

LTM Last twelve months

922939

1,0281,089 1,180

,

Adjusted EBITDALTM Margin

Sales Volume LTM (excluding wood million tonnes)

Sep11 Dec11 Mar12 Jun12 Sep12Jun11

1.71.71.71.71.71.71.7

Dec12


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From now on

2013 2014 From 2015

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Benefits from the costreduction

New sack kraft machineat the 4Q13

u p m

New coated boardsmachine

Kraftliner paper machine

Recycled paper machine atthe 3Q14

Debottlenecking at papermachine 9 (coated boards)


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Growth strategylong-term

Growth on the same site

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Project driven towards domestic market

The only company that owns alarge pine forest in Brazil


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Softwood imports in Brazil

377

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Large and growing market inBrazil, currently supplied by

softwood imports2007

286

2011

thousand tonnes


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New pulp line project

150 MW of electricity in excess

Lowest cash cost producer

Same site, high productivity

Project based on fluff marketand Klabin paper needs

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High return withconservative assumptions

Flex mill (long and short fibers)

Capital structure to dilute risks


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Average haulingdistance

New mill75 Km

Inbound logistics

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Average haulingdistance

Monte Alegre

50 Km

Vale do Corisco

Klabin Pulp

Klabin SA


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Klabin Area27.530 m

Outbond Logistics

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Existing railroad to Paranagu Port: 424 km To be constructed: 17 km

ParanaguPort

Paran

TerminalPulp Mill


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Capital structure

51% 49%

Klabin SAUS$ 1 billion

InvestorsUS$ 1 billion

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Klabin PulpUS$ 3.8 billion

DebtUS$ 1.8 billion


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Financial results


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Sales

1,739 1,727 4,164

Sales Volume

(excluding wood tsd tonnes)

Net Revenue

(R$ million)

24

2011 2012

31%

69%66%

34%

2011 2012

24%

76%

,

78%

22%

Export MarketDomestic Market


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EBITDA and Net Income

1,352

1,028

752

25

Net income

(R$ million)

20122011 20122011

183

Adjusted EBITDA

(R$ million)


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Net debt

2.2 2.2 2.1 2.0

2.4 2.42.5 2.32.5

2.3

Net Debt/ EBITDA (LTM)

26LTM Last twelve months


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Loan maturity schedule

R$ million

2,757

915

931

583

803

704

557613

552 515

387

438

150

99

99

60

27

1Q13

279

191

2Q13

328

215

3Q13

264

177

4Q13

250

150

Cash 2014

528

2015

493

2016

433

2017 2018

458

2019 2020

469

Forward

Local currencyR$1.7 billionAverage tenor: 31 months

Foreign currencyR$ 4.4 billionAverage tenor: 46 months

Gross debt R$ 6.0 billion

89

112

86 100

46


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Capex

R$ million 2012 2013E

Maintenanceand s ecial ro ects

552 361

28

Sack kraft expansion 77 127

Recycled expansion 25 212

Total 654 700


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Appendix


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Shareholder structure

MonteiroAranha20%

Brazilianinvestors

BNDES

13%

Treasury

5%

Common Preferred

600,855,733 shares316,827,563 shares

KlabinIrmos60%

Brazilianinvestors

20%

42%

Foreigninvestors

40%

Level 1 of Corporate

Governance at

BM&FBovespa

Tag along rights of 70%

for preferred shares

Average daily trading

volume in 2012

R$ 25 million

Dividends in 2012

R$ 275 million

(yield 4%)


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Capacity

eucalyptus and coated boards

wood logs

Domestic market

243 k ha 700 k t

2.5 m t

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p ne ores s

planted forests:243 thousand ha

short fiber andlong fiber pulp

old corrugatedcontainers

recycled paper corrugated boxes

industrial bags

kraftliner

Domestic and

export 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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Paper business unit

2011

64%

36%

419

2012

55%

45%

387

2011 2012

529

542

Kraftliner

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Kraftliner

Recycled

Kraftliner andcoated boards Domestic market Export market

2011

45%

55%

649

2012

45%

55%

670

2011 2012

1,3091,499

Coated

boards

Thousand tonnes R$ million


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Conversion business unit

502 4941.223 1.217

0%

Corrugated

boxes

Corrugated boxes

Industrial bags

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Corrugated boxesand industrial bags

2011 2012 2011 2012

2011

136

2012

144

2011 2012

489565

Industrial

bagsThousand tonnes R$ million


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Imports

Exchange rate (R$ / US$)

1.72

1.65

1.87

2.04

(monthly average - tonnes) 2010 2011 2012 2012 / 2011

Industrialized food 286.043 369.261 300.079 -19%

Pharmaceutical 3.201 3.239 3.495 8%Toys 3.611 4.235 2.575 -39%

Hygiene 5.761 6.814 7.536 11%

Footwear 1.320 1.602 1.193 -26%

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Source: SECEX / MDIC - Receita Federal SP. 02/01/2013

Effective imports of goods packed

Jan 10 Jan 11 Jan 12 Dec 12Jul 12


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Income statement

4Q12/3Q12 4Q12/4Q11 2012/2011

Gross Revenue 1,294,027 1,305,430 1,197,225 -1% 8% 4,996,659 4,686,275 7%

Net Revenue 1,078,364 1,085,766 994,076 -1% 8% 4,163,670 3,889,151 7%

Change in fair value - biological assets 113,410 333,122 (1,569) -66% N/A 885,988 270,577 227%

Cost of Products Sold (724,937) (714,806) (613,922) 1% 18% (2,823,148) (2,827,442) 0%

Gross Profit 466,837 704,082 378,585 -34% 23% 2,226,510 1,332,286 67%

Selling Expenses (85,958) (81,989) (82,059) 5% 5% (344,574) (321,055) 7%

General & Administrative Expenses (73,646) (74,243) (73,038) -1% 1% (273,918) (249,405) 10%

Other Revenues (Expenses) 14,537 1,236 46,676 1076% -69% 10,373 35,308 -71%

(R$ thousand) 4Q114Q12 3Q12 2012 2011

Total Operating Expenses (145,067) (154,996) (108,421) -6% 34% (608,119) (535,152) 14%

Operating Income (before Fin. Results) 321,770 549,086 270,164 -41% 19% 1,618,391 797,134 103%

Equity pickup 498 1,755 (429) -72% N/A 25,827 (429) N/A

Financial Expenses (104,286) (115,435) (96,303) -10% 8% (437,878) (434,696) 1%

Financial Revenues 51,381 75,953 74,333 -32% -31% 267,950 316,311 -15%

Net Foreign Exchange Losses (25,463) (15,377) (42,229) 66% -40% (377,834) (382,183) -1%

Net Financial Revenues (78,368) (54,859) (64,199) 43% 22% (547,762) (500,568) 9%

Net Income before Taxes 243,900 495,982 205,536 -51% 19% 1,096,456 296,137 270%

Income Tax and Soc. Contrib. (97,385) (165,144) (83,105) -41% 17% (344,491) (113,416) 204%

Net income 146,515 330,838 122,431 -56% 20% 751,965 182,721 312%

Depreciation and amortization 168,725 151,759 85,433 11% 97% 592,677 547,768 8%

Change in fair value of biological assets (113,410) (333,122) 1,569 -66% N/A (885,988) (270,577) 227%

Vale do Corisco 7,135 7,033 2,295 1% 211% 26,538 2,295 1056%

EBITDA 384,220 374,756 359,461 3% 7% 1,351,618 1,076,620 26%


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Investor RelationsPhone: +55 (11) 3046-8401

www.klabin.com.br/[email protected]

institutional presentation - 4q12

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