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 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.
Shareholder Structure
12/31/2009 Preferred
Treasury;
Monteiro Aranha ; 20%
Common
Foreign Investors; 23%
Klabin Irmos; 59%
3%
BNDES; 31%
316,827,563 shares
600,855,733 shares
IPO in 1979
Corporate Governance
Joined BOVESPAs level 1 of Corporate Governance
Compensations for members of the Executive Board are linked to metrics that take into account the opportunity cost of investments
Level 1 ADRs program OTCQX March10 Adopted insider trading policy for securities issued by the company and strict separation of Board of Directors and Executive Board
Company profile
Net Revenue: R$ 3.0 billion in 2009
Forestry
Wood logs Kraftliner
Paper
Coated boards
Packaging
Corrugated boxes
Bags
Industrial Bags
#1 in Brazil 5%
#1 in Brazil 14%
#1 in Brazil 32%
#1 in Brazil 31%
#1 in Brazil 14%
LPB
FBB
CB
#1 in Brazil
#2 in Brazil
#1 in Brazil
Notes: In 2009, 2% of net revenue was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board
Lands
457 Kha
Pine 144 Kha
OCC 280 Kt
Eucalyptus 67 Kha
+
NBSK
Kraftliner 800 Kt
Domestic
LPB
CB
FBB
Exports 250 Kt
Domestic
Notes: All figures refer to installed production capacity * The production of paper packages generates 100 thousand tpy of edge trim, which returns to the process. ** Does not includes 50 thousand tpy of Ponte Nova Mill capacity that is temporarily closed. NBSK Northern Bleached Softwood pulp / BEKP Bleached Eucalyptus Kraft Pulp / UEKP Unbleached eucalyptus Kraft Pulp CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container
Klabins Presence
Forestry Alto Paranapanema (SP) Planalto Catarinense (SC) Campos Gerais (PR) Industrial Bags Lages (SC) Pilar (Argentina) Goiana (PE) Ports Suape (RN) Santos(SP) Paranagu (PR) Itaja (SC) So Francisco do Sul (SC)
Corrugated packages Goiana (PE) Feira de Santana (BA) Betim (MG) Del Castilho (RJ) Jundia (SP) Piracicaba (SP) Itaja (SC) So Leopoldo (RS)
ARGENTINA
URUGUAI
Papers Angatuba (SP) Correia Pinto (SC) Otaclio Costa (SC) Telmaco Borba (PR)
Forest
Forestry Base
Thousand ha Forests 01/31/2010 Planted Forests Eucalyptus Pine Native preserved forests Total Lands
Paran 141 56 85 123 301 Santa Catarina 65 6 59 62 140 3 16 3 7 So Paulo 5 5 Mato Grosso do Sul
Average Hauling Distance Paran Santa Catarina Correia Pinto Otaclio Costa So Paulo
Km 48
76 66 100
Forests
Competitive advantage
Pine 39 42 -
Eucalyptus 50 27 34
Softwood - Rotation (years) Klabin South Africa Chile Australia USA Sweden
0 20 40 60 80
20 25 25 35 45 100
100 120
7 9 11 13 37 37 10 15 20 25 30 35 40
Source: Pyry
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Wood
Sales Volume, Net Revenue and Housing starts
Sales volume (thousand tonnes)
-5% -18%
2,412
2,298 1,892
2007
2008
2009
1,555 1,460
1,464 1,297 1,053 1,025 1,151 868 658 528 590 540 555
Jan/06
Source: US C ensus Bureau
Jan/07
Jan/08
Jan/09
Quarter average
Housing starts
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Coated Boards
Sales volume, net revenue and exports
Sales volume (thousand tonnes)
5% 43%
506 531
354
43%
40%
935 695
988
29%
71%
57%
60%
2007
2008
2009
2007
2008
2009
Domestic Market
Export Market
Coated Boards
Domestic Market Share*
Domestic Market Share Coated Boards* (%)
504 Kt 508 Kt 507 Kt
82 87
75
13
2007
18
2008
25
2009
Source: Bracelpa (Brazilian Association of Pulp and Paper) * Excluding Liquid Packaging Board
Klabin
Others
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Coated Boards
UHT Milk Consumption
Brazil UHT milk sales million liters
5,700 4,220 5,767 4,227 5,993 4,403 6,352 4,804 6,660 5,066 6,743 5,040 7,103
5,125 3,425
5,230 3,600
5,390 3,951
5,311
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
World
UHT Milk Consumption versus total milk consumption Country Spain Portugal Belgium France Brazil Market Share 97% 97% 95% 94% 75% Country Italy Argentina Hong Kong Mexico Market Share 59% 62% 47% 36%
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Coated Boards
FBB virgin fibers cost competitiveness
Average Cash Cost (FOB) and List Price Evolution
Jan/07 Apr/07 Jul/07 Oct/07 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09 Oct/09
1,102
1,014
1,047
1,081
751
500
Fibers
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 4Q09
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Kraftliner
Sales volume, net revenue and exports
Sales volume (thousand tonnes)
-1%
464 458 393
-14%
86%
80%
78%
529
545 385
14%
20%
22%
2007
2008
2009
2007
2008
2009
Domestic Market
Export Market
Africa ; 11%
Americas; 31%
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Kraftliner Exports
Cash cost and List Price
Average Cash Cost (FOB) and List Price Evolution
Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09
797
679
613
414
299
United States
South Africa
ustria Germany
Others Sweden
Canada
Russia
France
Finland
Poland
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 4Q09.
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Corrugated Boxes
Sales volume, net revenue and consumption distribuition
Sales volume (thousand tonnes)
-2% 2%
902
456 445 457
947
946
2007
2008
2009
2007
2008
2009
Consumption distribution
(December/09)
Drugs Clothing 2% 2% Cosmetics 3% Others 11%
Textilles 3%
Food 42%
Chemical 11%
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Corrugated Boxes
Brazilian Shipments and market share
Brazilian Shipments
(million tonnes)
209
31
197
197
198
187
Others
3 3 4 4 6 7
175 181
184
182
183
168
10
12
Klabin
20
jan/06
jan/07
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Industrial Bags
Sales volume, net revenue and cement consumption
Sales volume (thousand tonnes)
-2% 2% 5%
4%
129
127
130
390
411
429
2007
2008
2009
2007
2008
2009
jan/06
jan/07
jan/08
jan/09
Quarter average
Source: Nation Labor Union of Cement Industry
Monthly consumption
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Industrial Bags
Export destinations and cement per industries
North America 6%
Food 10%
Source: Klabin
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Financial Performance
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Results
Financial Figures Evolution
R$ million
Sales volume Net Revenue Gross margin Operating Expenses Operating Income (EBIT) EBIT margin Net Financial Revenues Net Income (Losses) EBITDA EBITDA margin Net Revenue (US$ mi) Average Dollar Exports (US$ mi) Assets Stockholders Equity Net Debt / Capitalization
(excluding wood)
2007
1,437 2,796 33% (452) 474 17% 351 603 718 26% 1,440 1.95 367 7,778 2,714 40%
2008
1,579 3,097 26% (485) 325 10% (905) (349) 729 24% 1,714 1.84 462 8,242 2,247 62%
2009
1,545 2,960 26% (466) 309 10% 542 333 747 25% 1,486 1.99 358 7,998 2,387 51%
2009 / 2008
2008 / 2007
-2% -4%
-4% -5%
7% -31% -7 p.p.
The Companys information for fiscal years 2007, 2008 and 2009 are presented in accordance with Law 11.639 / 07.
EBITDA
R$ million
26% 24%
25%
718
729
747
2007 EBITDA
2009
24
2009
C hemicals 15%
Labor/Services 30%
R$ 2.2 bi
Maint Shutdown /Others 15% Energy/Oil 12%
Freight 12%
25
-2%
1.461
1.420
1.392
4Q07
4Q08
4Q09
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Capex
R$ million
The Company invested R$ 247 million in 2009
Packaging Bags Others
1674
587 247
Papers 49%
2007
2008
2009
27
R$ Million
311
47
199 141
264 64 77
194
118
42 76
3Q10
125
49 76
4Q10
326
316
292
288
72
2011 2012 2013 2014 2015 2016
57
After 2017
Cash
1Q10
2Q10
Local Currency
Foreign Currency
Net Debt R$ 2.6 billion Net Debt / EBITDA = 3.4x Average Maturity = 40 months
Debt cost Local currency: 8.0 % p.y. Foreign currency: 3.6% p.y. + FX
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Treasury Stocks
123
2005
2006
2007
2008
2009
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Future
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Strategy
Managements short term goals:
To increase sales volume; To develop new products for the domestic and international markets; To increase planted area
To increase operating cash flow; To extend financing terms, thereby improving the debt profile; To reduce the net debt/EBITDA ratio; To improve our Global Scale Rating.
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Strategy
Long term goal: Capacity growth Construction of a global-scale pulp plant with a capacity of between 1.3 and 1.5 million tonnes per year;
Installation of a new coated board machine with a capacity of between 400,000 and 500,000 tonnes per year, expanding total paper and paper packaging production to 2.4 million tonnes per year.
Capacity evolution
tonnes per year
1.9 million
3.4 million
2010
2015/2016
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IR Team IR Team Phone: (55 11) 3046-8404 / 8415 / 8416 Phone: (55 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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