Institutional Presentation 4Q14
43
INSTITUTIONAL PRESENTATION MARCH 2015 KLBN11 KLBN11 / KLBAY 1
Transcript of Institutional Presentation 4Q14
INSTITUTIONAL PRESENTATION MARCH 2015
KLBN11
KLBN11 / KLBAY 1
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 Company’s 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 Klabin’s performance includes non-accounting and accounting data, such as operating and financial information, as
well as projections based on Management’s expectations. Note that the non-accounting data has not been reviewed by the Company’s
independent auditors.
The Company’s management believes EBITDA may provide useful information on the Company’s 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.
2
A DIFFERENTIATED COMPANY
3
INTEGRATION AND MARKETS
750 thousand tonnes
220 thousand
tonnes
1.0 million tonnes
COATED BOARDS
INDUSTRIAL BAGS AND SACK KRAFT
CORRUGATED BOXES AND KRAFTLINER
EUCALYPTUS AND PINE FORESTS
243 thousand ha
1.7 million tonnes
OLD CORRUGATED CONTAINERS
68%
food
13% other consumer goods
12%
others
330 thousand
tonnes
7%
building
SALES VOLUME DESTINATION PAPER AND PACKAGING
STRONGLY LINKED TO THE CONSUMER MARKET
FOREST
PULP
PAPER and CONVERSION
4
PAPER MARKET POSITION
LEADER IN BRAZIL, WHERE WE ALLOCATE MORE THAN 50% OF OUR CAPACITY
COATED BOARDS
sole supplier of liquid packaging board in Latin
America
637 thousand
tonnes sold in 2014
KRAFTLINER
389 thousand
tonnes sold in 2014
50%
market share
40%
installed capacity
5
CONVERSION MARKET POSITION
LEADER IN BRAZIL, WHERE WE ALLOCATE MORE THAN 95% OF OUR CAPACITY
INDUSTRIAL BAGS
second player’s market share is 16%
CORRUGATED BOXES
50%
market share
market share
16%
second player’s market share is 8%
source: ABPO – december 2013 6
COST REDUCTION AND CHANGE IN
COMMERCIAL PRACTICES
“INSOURCING”
MECHANIZATION OF SILVICULTURE AND
HARVESTING
HIGH RETURN INVESTMENTS
EXPANSION OF CONVERSION
CAPACITY
EXPANSION OF EVAPORATION SYSTEM
OTACÍLIO COSTA AND MONTE ALEGRE
BIOMASS BOILER OTACÍLIO COSTA
AND CORREIA PINTO
HIGH VOLTAGE TRANSMISSION LINE
MONTE ALEGRE
NEW CORRUGATOR JUNDIAÍ DISTR. IND, SP
NEW CORRUGATOR GOIANA, PE
NEW INDUSTRIAL BAGS EQUIPMENTS
GOIANA, PE
NEW PRINTERS FOR CORRUGATED BOXES
MONTE ALEGRE, PR OTACÍLIO COSTA, SC CORREIA PINTO, SC
FORESTRY UNIT
RECENT IMPROVEMENTS IN EFFICIENCY
7
1,562 million
R$
2013
962 milllion
R$
2010
1,028 million
R$
2011
1,352 million
R$
2012
1,718 million
R$
2014
26% 26%
32% 34%
MARGIN
35%
ADJUSTED
EBITDA 16%
CAGR
SALES VOLUME OF 1.7 MILLION TONNES PER YEAR (EXCLUDING WOOD)
8
EXPANSION PROJECTS NEW CAPACITIES
2013 2014 2015 2016
SACK KRAFT MACHINE
(SC)
80 thousand tonnes per year
DEBOTTLENECKING COATED
BOARDS (PR)
50 thousand tonnes per year
RECYCLED PAPER
MACHINE (PE)
110 thousand tonnes per year
DEBOTTLENECKING PIRACICABA (SP)
15 thousand tonnes per year
PUMA PROJECT
1.5 million tonnes per year
DEBOTTLENECKING ANGATUBA (SP)
35 thousand tonnes per year
COMPLETED CURRENT
DEVELOPMENT 9
boards
papers
conversion
short fiber pulp
fluff
energy
boards
papers
conversion
2014
1.8 mm tonnes
2015 2016
2.0 mm tonnes
3.5 mm tonnes
boards
papers
conversion
values excluding energy volume
PAPER EXPANSIONS
GOIANA ANGATUBA
PIRACICABA
PUMA CONCLUSION
GROWTH PERSPECTIVES
10
PROJECT
PUMA
11
12
PRODUCTION OF
270 MWh of ENERGY
SELF SUFFICIENT
120 MWh FOR PUMA
USE
150 MWh FOR SALE IN THE MARKET
ANNUAL PRODUCTION CAPACITY
1.5 MILLION TONNES OF PULP
LOW OPERATION COST
1.1 MILLION TONNES OF
SHORT FIBER
400 THOUSAND TONNES OF LONG FIBER PART CONVERTED TO FLUFF
13
238 thousand hectares south USA
140 thousand hectares Brazil
300 thousand hectares Europe
700thousand hectares nordic countries
160 thousand hectares Chile
PLANTED FOREST NEEDED FOR A 1.5 MILLION TONNES OF HARDWOOD PULP MILL
HUGE PRODUTIVITY
100 thousand hectares KLABIN PUMA 14
LESS FORESTRY AREA NEEDED
PUMA MONTE ALEGRE MILL
ORTIGUEIRA
TELÊMACO BORBA
IMBAÚ
PARANÁ
23 Km
15
CURRENT STATUS
areas delivered to EPC´s
100% of earthmoving
concluded
EPC´s with Klabin coordination dedicated team: strong feedback and control
95% of equipment
supplies, materials and
services concluded
lower dependency on imported equipments EUR 360 million (50% already paid)
COMPLETION COST
OF THE PROJECT COMPLETED 45% 0% 100%
OF THE CAPEX DISBURSED 34% 0% 100%
16
INDUSTRIAL CAPEX 46%
national equipments and materials
14%
imported equipments
14%
engineering and other services
27%
civil construction and assembly
TOTAL CAPEX
R$ 7.2 BI
INDUSTRIAL CAPEX
R$ 5.8 BI NET OF
RECOVERABLE TAXES
FUNDING FOR THE PROJECT
CONTRACTED
17
LOGISTICS PUMA
18
LOGISTICS MULTIMODAL
72 Km forestry average
distance
PULP MILL FORESTS
441 Km railway to the port
PARANAGUÁ PORT
INBOUND OUTBOUND
19
RAIL
dimension of each composition
4 compositions of 71 wagons
4,544 tonnes every 42 hours
1,250 meters
20
port
warehouse in Km 5
warehouse in port
warehouse Km 5
WAREHOUSE IN KM 5
Klabin owns the area
warehouse will be ready for use in dec/15
rail access
maneuver courtyard
ALL
static capacity of 70,000 tonnes
21
WAREHOUSE IN THE PORT
Klabin owns the area
Static capacity of 80,000
tonnes
rail access
direct connection to the primary port area
Paranaguá port
warehouse in the port
22
PULP MARKET PUMA
23
PULP MARKET
33%
eucalyptus
45%
long fiber
22%
other short fibers
PULP MARKET DISTRIBUTION
2014
Source: Hawkins Wright; RISI
52.6 million tonnes
market pulp
112 million tonnes
integrated pulp
164 mm t
VIRGIN FIBER PULP
24
PUMA: 6th LARGEST PULP MILL
LARGEST MARKET PULP MILLS OF THE WORLD
Fibria Aracruz 2,340
April Riau 2,200
April Rizhao 1,700
Eldorado 1,500
CMPC Guaíba 1,690
Suzano Mucuri 1,565
Klabin 1,500
Suzano Maranhão 1,500
Source: Hawkins Wright (jul/14)
28.6 short fiber 52.6 market
pulp
17.5
eucalyptus
WORLD DEMAND million tonnes per year in 2014
Montes del Plata 1,300
million tonnes per year in 2014
25
4th LARGEST IN FLUFF
Source: Hawkins Wright
WORLD CAPACITY OF FLUFF thousand tonnes per year in 2014
GP 2,296
Weyco 1,420
IP 1,045
Puma Klabin
400
Domtar 334
Resolute 290
Stora 255
Arauco 250
Rock Tenn 170
Rayonier 110
UPM 100
mills converted in fluff mills
the only designed to produce fluff from the start
fibra longa
6,4 fluff and SBSK
WORLD DEMAND million tonnes per year in 2014
23,7
SBSK = pinus long fiber from USA 26
FOCUS ON CONSUMER MARKETS
Source: RISI, Euromonitor
96% USA
50% BRA
72% ARG
MARKET PENETRATION IN DISPOSABLE DIAPERS 2013
high potential of growth
SOPHISTICATION AND INNOVATION IN
HIGHER VALUE ADDED PRODUCTS
27
BRAZIL IS THE 3RD LARGEST MARKET OF DISPOSABLE DIAPERS IN THE WORLD
3.3
2008
4.2
2009
4.9
2010
5.7
2011
6.0
2012
6.5
2013
SALES OF DIAPERS FOR INFANT
R$ billion
Source: Euromonitor
0.4
2008
0.5
2009
0.6
2010
0.8
2011
1.0
2012
1.2
2013
SALES OF DIAPERS FOR ADULTS R$ billion
28
COMPOSITION OF DIAPERS
30% TO 50% OF THE AVERAGE WEIGHT OF A DIAPER IS COMPOSED OF FLUFF (20 TO 40G)
29
SPREADS AMONG DIFFERENT FIBERS
may 13
jun 13
jul 13
aug 13
sep 13
oct 13
nov 13
dec 13
jan 14
feb 14
mar 14
apr 14
may 14
jun 14
jul 14
aug 14
sep 14
122
308
long fiber x short fiber
fluff x short fiber
Source: RISI, FOEX
CIF EUROPE US$/TONNE
oct 14
nov 14
dez 14
30
5 million tonnes
ANNUAL CAPACITY
CIF: COST, INSURANCE AND FREIGHT INCLUDED
GLOBAL CASH COST (SHORT FIBER)
PUMA
CIF EUROPE US$/TONNE
400
500
600
10 million tonnes
15 million tonnes
20 million tonnes
25 million tonnes
Source: Hawkins Wright 31
EARNINGS 2014
32
HIGHLIGHTS
SALES VOLUME excluding wood– tsd tonnes
69%
31% 1,788
2013
69%
31% 1,771
2014
NET REVENUE R$ million
74%
26% 4,599
2013
75%
25%
4,894
2014
exports domestic
market
ADJUSTED EBITDA R$ million
1,562
2013
1,718
2014
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KRAFTLINER (3)
RECYCLED (2)
KRAFTLINER AND COATED BOARDS (1)
KRAFTLINER
42%
58%
35%
65%
2013
377 thousand
tonnes
2014
389 thousand
tonnes 598 million R$
639 million R$
2013 2014
PAPER BUSINESS UNIT
COATED BOARDS
56%
44%
59%
41%
2013
675 thousand
tonnes
2014
637 thousand
tonnes 1,608
million R$
1,661 million R$
2013 2014
exports domestic
market 34
CORRUGATED BOXES (7)
INDUSTRIAL BAGS (3)
CORRUGATED BOXES AND INDUSTRIAL BAGS (1)
2013
693 thousand
tonnes
2014
712 thousand
tonnes 2,017
million R$
2,171 million R$
2013 2014
CONVERSION MARKET POSITION
+
35
UNIT CASH COST
1,689 R$/tonne
4T13
1,778 R$/tonne
4T14*
1,719 R$/tonne
2013
1,830 R$/tonne
2014*
*Excluding non-recurring effects
36
NET DEBT
2,313
sep/11
2,735
dec/11
2,674
mar/12
3,014
jun/12
3,090
sep/12
3,278
dec/12
3,136
mar/13
3,437
jun/13
3,595
sep/13
3,985
dec/13
2,711
mar/14
2,824
jun/14
4,028
sep/14
2.4x 2.5x 2.3x
2.5x 2.4x 2.5x 2.2x
2.4x 2.4x 2.6x
1.7x 1.7x
2.4x
NET DEBT R$ million
NET DEBT/EBITDA (LTM)
5,242
dec/14
3.0x
37
DEBT PROFILE
38
Local Currency Annual interest rate - % Current
Non-
current Total
Debentures – Mandatorily
Convertible 28.0 + USD + Share of
Profits 254 293 547
BNDES - Debentures IPCA + 2.5 to 7.25 22 777 798
BNDES – Project PUMA TJLP + 2.5 2 200 202
BNDES - Project MA1100
TJLP + 4.5 and basket1 +
1.5 297 38 335
FINAME 2.5 to 4.5 72 315 387
BNDES - Other
TJLP + 4.5 and basket1 +
1.5 172 652 824
Export credit notes CDI + 0.6 37 781 818
Other 1.0 to 6.8 127 92 219
983 3,148 4,131
BNDES – Project PUMA USD + 6.6 2 181 183
BNDES - Other USD + 5.7 to 6.3 31 191 222
Bonds (Notes) USD + 5.25 32 1,328 1,36
Export credit notes USD + 3.9 to 8.1 155 1,127 1,282
Export payments
USD + Libor 6M + 1.0 to
6.4 537 3,256 3,793
Others USD + 1.9 14 - 14
771 6,083 6,854
Total 1,754 9,231 10,985
Foreign Currency (USD)
FIN. AGREEMENTS 2014 R$ million
983
470 450
560
296
734
215 242
120 62
772
585
971 894
897
673
398
241
70
1.351
1.755
1.055
1.421 1.454
1.193
1.407
613
483
190
1.413
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MATURITY SCHEDULE 2014 R$ million
Local currency : R$ 4.1 billion Average tenor: 45 months
Foreign currency: R$ 6.9 billion Average tenor : 57 months
maintenance
CAPEX
CAPEX R$ million 2011
3T14 296
special projects and growth 159
vale do corisco 428
PUMA project -
total 883
2012
3T14 390
264
-
-
654
2013
3T14 369
431
-
99
899
2014
3T14 384
319
-
2,242
2,945
2015E
3T14 350
385
-
3,437
4,172
39
APPENDIX
41
INCOME STATEMENT
numbers in thousand R$
∆ ∆ ∆4Q14/3Q14 4Q14/4Q13 2014/2013
Gross Revenue 1,518,233 1,540,725 1,485,726 -1% 2% 5,900,091 5,554,345 6%
Net Revenue 1,257,110 1,282,208 1,236,221 -2% 2% 4,893,882 4,599,337 6%
Change in fair value - biological assets 19,644 252,784 56,362 -92% -65% 924,104 336,289 175%
Cost of Products Sold (919,770) (909,269) (845,033) 1% 9% (3,573,609) (3,206,917) 11%
Gross Profit 356,984 625,723 447,550 -43% -20% 2,244,377 1,728,709 30%
Selling Expenses (95,853) (98,218) (96,777) -2% -1% (379,726) (362,638) 5%
General & Administrative Expenses (83,171) (69,367) (76,666) 20% 8% (298,350) (280,526) 6%
Other Revenues (Expenses) 42,985 15,384 (1,342) 179% N/A 84,785 11,472 639%
Total Operating Expenses (136,039) (152,201) (174,785) -11% -22% (593,291) (631,692) -6%
Operating Income (before Fin. Results) 220,945 473,522 272,765 -53% -19% 1,651,086 1,097,017 51%
Equity pickup 14,268 23,032 4,860 -38% 194% 48,649 22,235 119%
Financial Expenses (224,971) (226,856) (119,667) -1% 88% (654,932) (423,350) 55%
Financial Revenues 131,778 149,318 64,803 -12% 103% 535,340 212,957 151%
Net Foreign Exchange Losses (357,697) (420,970) (193,655) -15% 85% (526,520) (528,641) 0%
Net Financial Revenues (450,890) (498,508) (248,519) -10% 81% (646,112) (739,034) -13%
Net Income before Taxes (215,677) (1,954) 29,106 10938% N/A 1,053,623 380,218 177%
Income Tax and Soc. Contrib. 88,306 8,963 (7,586) 885% N/A (323,293) (90,121) 259%
Net income (127,371) 7,009 21,520 N/A N/A 730,330 290,097 152%
Depreciation and amortization 295,216 222,366 216,749 33% 36% 951,965 766,553 24%
Cost of carrying out assigned to property - land 3,169 - - N/A N/A 3,169 - N/A
Change in fair value of biological assets (19,644) (252,784) (56,362) -92% -65% (924,104) (336,289) 175%
Vale do Corisco 8,708 8,326 9,330 5% -7% 35,972 34,400 5%
Adjusted EBITDA 508,394 451,430 442,482 13% 15% 1,718,088 1,561,681 10%
2013(R$ thousand) 4Q14 3Q14 4Q13 2014
42
BALANCE SHEET
numbers in thousand R$
Current Assets 7,899,676 4,826,148 Current Liabilities 2,518,873 1,779,513
Cash and banks 400,684 130,836 Loans and financing 1,479,788 1,124,976
Short-term investments 4,845,149 2,599,036 Debentures 275,201 0
Securities 497,604 249,511 Suppliers 438,864 345,384
Receivables 1,148,676 1,145,154 Income tax and social contribution 0 18,209
Inventories 563,709 495,852 Taxes payable 55,137 43,298
Recoverble taxes and contributions 331,968 120,050 Salaries and payroll charges 139,879 127,356
Other receivables 111,886 85,709 REFIS Adherence 50,400 50,400
Other accounts payable 79,604 69,890
Noncurrent Assets 13,274,179 10,093,348
Long term Noncurrent Liabilities 11,596,659 7,747,316
Taxes to compensate 428,884 123,684 Loans and financing 8,160,320 5,838,621
Judicial Deposits 84,689 90,969 Debentures 1,070,263 0
Other receivables 236,050 171,322 Deferred income tax and social contribution 1,699,823 1,220,187
Other investments 494,747 466,581 Other accounts payable - Investors SCPs 131,526 125,767
Property, plant & equipment, net 8,351,387 5,909,507 REFIS Adherence 384,607 393,492
Biological assets 3,667,085 3,321,985 Other accounts payable 150,120 169,249
Intangible assets 11,337 9,300
Stockholders´Equity 7,058,323 5,392,667
Capital 2,271,500 2,271,500
Capital reserve 1,295,919 4,419
Revaluation reserve 48,767 49,269
Profit reserve 2,534,302 2,159,949
Valuation adjustments to shareholders'equity 1,065,446 1,065,437
Treasury stock (157,611) (157,907)
Total 21,173,855 14,919,496 Total 21,173,855 14,919,496
Assets dec-14 dez-13 Liabilities and Stockholders' Equity dec-14 dez-13
43
