ITA CEO CONFERENCE

May 2016, New York

KLBN11

DEZEMBRO DE 2015
KLBN11 / KLBAY

READY TO GROW

CONSISTENT PERFORMANCE

19th Quarter of Growth

2,026

1.9

1,975

1.8

1,812

1,718

1,652

1,627

1,602

dec mar
13
14

1.8

sep
13

1.8

jun
13

1.8

mar
13

1.8

dec
12

1.8

sep
12

1.8

jun
12

1.8

mar
12

1.8

1.7

1,504

1.7

1,452

1.7

1,351

1.7

1,286

1.7

1,180

1,089

1.7

sep dec
11
11

1.7

1,027

1.7

1.7

939

Excluding wood million tonnes

1,424

SALES VOLUME LTM

1,562

R$ million

1,755

Adjusted EBITDA LTM

1,881

LTM: Last twelve months

jun
14

sep
14

dec
14

mar
15

jun
15

sep
15

dec
15

mar
16

PUMA SHORT & LONG FIBER

SUPERIOR COST ADVANTAGE

SOFTWOOD

462

447

409

HARDWOOD

335
288
272

PUMA

FOB
US$/TONELADA

174

10

15

20

25

30

million
tonnes

million
tonnes

million
tonnes

million
tonnes

million
tonnes

million
tonnes

Source: Hawkins Wright december 2015

ANNUAL
CAPACITY

PUMA LEARNING CURVE

2016 MONTHLY PRODUCTION - % OF CAPACITY
140

120

80%
71%

84%

80%

85%
83%

86%
86%

89%
87%

90%

90%

90%

90%

Nov

Dec

100

70%
54%

80

60

59%
40%
44%

40

22%
20

Mar

Apr

May
Budget

Jun

Jul

Achieved/updated schedule

Aug

Sep
Budget curve

Oct

Updated curve

PUMA QUALITY UPDATE

2016 OFFGRADE %

0%

Mar

Apr

May

Jun
Budget

Jul

Aug

Sep

Oct

Achieved/updated schedule

Nov

Dec

GLOBAL PULP
INCREASING DEMAND IN BOTH FIBERS

LONG FIBER

SHORT FIBER

CAGR +2%

CAGR +3%
28.9

30.0

31.0

32.3

33.2

34.1

35.0
23.7

24.3

24.7

25.0

2014

2015

2016

2017

25.4

26.2

26.2

2018

2019

2020

Latin America
North America
Asia/ Africa
Europe
China
2014

2015

2016

Source: Hawkins Wright

Million tons per year

2017

2018

2019

2020

CHINA

LEADS THE GROWTH

KLABIN
LOW VOLATILITY IN BOARDS PRICES
1200
1100
1000

800
700
600
500

BHKP

Source: FOEX and RISI

*SBS Solid Bleached Sulfate folding carton USA

NBSK

Coated Boards*

2016

2015

2015

2014

2014

2014

2013

2013

2012

2012

2011

2011

2011

2010

2010

2009

2009

2009

2008

2008

2007

2007

2006

2006

2006

2005

2005

2004

2004

400

2004

US$/ton

900

PACKAGING MARKETS
FOCUS IN LARGE AND GROWING MARKETS
PAPER MARKETS DEMAND
(2014-2030)

Demand growth per year

4%

Tissue
KLABIN
Pulp

3%

Containerboards
KLABIN kraftliner and recycled paper

2%

Cartonboards
KLABIN coated boards

1%
Market B

0%

Market D

Market E
Sackpaper
KLABIN sack kraft and
industrial bags

-1%
-2%
Market C

-3% Market A

KLABIN MARKETS

-4%
0%
Source: POYRY

20%

40%

60%

Share of consumption in 2014

80%

100%

KLABIN
DELIVERING RESULTS

INSTITUTIONAL PRESENTATION 2013

KLABIN 2016

PRODUCTION CAPACITY*

PRODUCTION CAPACITY*

3.5 mm tons
3.5

energy

MILLION TPY

fluff

1.7

MILLION TPY

1.8

2.0

2.0

MILLION TPY

MILLION TPY

1.7
mm

1.8
mm
tons

mm
tons

* Excluding wood sales

2014 E

2015 E

2016 E

2013

soft wood)

conversion

papers

tons

2013

pulp (hardwood and

2014

2015

coated boards

KLABIN
GROWTH TIMELINE
2016 - 2020
KRAFTLINER MACHINE
300 ktons to 500 ktons
OPPORTUNITIES
IN PACKAGING
300 ktons to 600 ktons

2014 - 2016
PUMA PULP
PLATFORM FOR GROWTH

PAPER CAPACITY INCREASE

PRODUCTION OF FLUFF,
HARDWOOD AND SOFTWOOD
1.5 mmtons

CONTINUOUS OPERATIONAL
IMPROVEMENT

CONTINUOUS OPERATIONAL
IMPROVEMENT

2011 - 2013
OPERATIONAL
IMPROVEMENT

INTEGRATION OF
PULP INTO COATEDBOARDS
440 ktons

1Q16 RESULTS

VOLUME, SALES REVENUE AND EBITDA

SALES VOLUME

NET REVENUE

ADJUSTED EBITDA

Excluding wood - tsd tonnes

R$ millions

R$ millions

437
33%

1,308
30%

455
36%

1,463
35%

512

EXPORTS

461
66%

70%

64%

65%

DOMESTIC
MARKET

1Q15

1Q16

1Q15

1Q16

1Q15

1Q16

CASH COST
UNIT
CASH COST

CASH COST
BREAKDOWN

1Q16

1Q16

R$ millions

2,108
1,943

Fuel Oil Others

2%
6%
Electricity
9%
Maintenanc
e materials /
stoppage
9%

Labor / third
parties
34%

Freight
11%

1Q15

1Q16

Chemicals
14%

Wood /
Fibers
15%

CAPEX

CAPEX
R$ millions

2013

2014

2015

2016E

maintenance

369

384

455

567

special projects and growth

231

319

129

95

PUMA project

99

2,242

4,053

1,883

899

2,945

4,627

2,545

total

NET DEBT AND LEVERAGE

in 03/30/16
R$ 17.9 billion
R$ 5.9 billion
R$ 12.0 billion

17,000

6.2

1.8

2.3

4,028
Sep-14

2,824
Jun-14

3,985
Dec-13

2,711

3,595
Sep-13

Net Debt (R$ million)

Mar-14

3,437
Jun-13

(1,000)

3,136

1,000

Mar-13

5,000
3,000

2.7

12,009

1.7

2.4

11,614

1.7

Net Debt/EBITDA (R$)

Sep-15

1.7

8,144

7,000

2.3

2.4

Jun-15

2.2

2.6

7,440

2.2

9,000

2.4

Mar-15

2.4

3.3

5,242

2.2

4.6
3.8

3.0

Dec-14

11,000

5.4

4.5

Mar-16

4.2

13,000

5.9
6.5
6.0 6.0

12,411

15,000

7.0

6.3

Dec-15

Gross Debt
Cash
Net Debt

Net Debt / EBITDA (US$)

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
-2.5
-3.0
-3.5
-4.0

DEBT MATURITY

5,880

R$ million

2.748
2.402
1.545

2.495
1.722

1.678
2.283

2.321

1.687

2.094

Foreign
Currency
12,508

1.803
1.300

1.468
816

Gross Debt
17,889

1.439
1.059

977
1.070

573

405

Cash
position

2Q16

858
212
129
84

278
115
163

3Q16

4Q16

651

773

390

596

2016

2017

713

2018

2019

502

2020

Local currency : R$ 5.4 billion

Average tenor: 40 months

2021

380
2022

218
323
2023

227
2024

216
1

2025/26

Foreign currency: R$ 12.5 billion

Average tenor : 51 months

Local
Currency
5,381

INVESTOR RELATIONS
www.klabin.com.br/ri
invest@klabin.com.br
+55 (11) 3046-8401