INSTITUTIONAL PRESENTATION

2Q16

KLBN11

DEZEMBRO DE 2015
KLBN11 / KLBAY

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.
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.

INTEGRATED BUSINESS MODEL

DIVERSIFIED AND FLEXIBLE
TOTAL LAND

FIBERS

489k hectares

3.3 million tpy

PUMA PULP

1.1mi tpy
short fiber

0.4mi tpy
long fiber &
fluff pulp

PAPER
2.0 million tpy

PLANTED FORESTS
230k hectares
PINE

140k

hectares

EUCALYPTUS

90k

hectares

INTEGRATED
PULP
1.8mi tpy

RECYCLED FIBERS

265 THOUSAND TPY

* Installed capacity

COATED
BOARDS
750k
tpy
CONTAINERBOARDS
1.25mi tpy

CONVERSION
820 thousand tpy
CORRUGATED
BOXES
660k tpy

INDUSTRIAL
BAGS
160k tpy

STRUCTURAL COMPETIVENESS
HIGH PRODUCTIVITY ON FIBERS

Forestry
Pine
46

Eucalyptus

TSD HECTARES
OF HIGH YIELD FOREST

58

38

44
22

PLANTED AREA
230 TSD

m/ha/year

22

LOW AVERAGE
HAULING DISTANCE
PR with PUMA 66 Km
SC 74 Km

25

10

20

12

10

Mean Annual Increment (MAI) - KLABIN

Pine
50
39
40

42

42

44

46

47

35

30

60

30

50

52

95-05

05-11

58

61

12-15

16-20

65

41
35

40

24

20

26

20

<69

* Source: Ib and Klabin

70

50

31

m3cc/h/year

Eucalyptus

70-89 90-04

05

06-09 10-11 12-15 16-20 21-25E

<73

74-85

85-95

21-25E

STRUCTURAL COMPETIVENESS
LOW CASH COST POSITION

BEST CASH COST ON LPB PRODUCTION

35% LOWER THAN OTHER PLAYERS

PM9
PM9

production cost
USD/tonnes
production
capacity
* Source: Poyry 4Q15, 1U$ = R$ 3,50

PM7

LPB PRODUCTION SITES

CASH COST (US$/T)

PAPER AND PACKAGING

LEADERSHIP IN RESILIENT MARKETS

KRAFTLINER

COATED
BOARDS

Market Share*

Market Share

40%

50%

INDUSTRIAL
BAGS

CORRUGATED

Market Share

Market Share

50%

16%

* Of Brazilian installed capacity

MARKETS DESTINATION

13%
Other
consumer
goods

Building

8%
Food

67%

Others

PULP MARKETS

DIFFERENT FIBERS, DIFFERENT MARKETS

KLABIN, A PULP SOLUTION

EUCALYPTUS PULP
BEKP IN BALES

PINE PULP
BSKP IN BALES

LONG FIBER FLUFF IN

REELS

NEW PUMA UNIT

ORTIGUEIRA/PR

PUMA VIDEO

PUMA UNIT COMPETITIVENESS

SOFTWOOD AND HARDWOOD

462

Softwood

447

409

Hardwood

335
288

PUMA

272
174

FOB

US$/TONNES

million
tonnes

Source: Hawkins Wright april 2016

10

million
tonnes

15

million
tonnes

20

million
tonnes

25

million
tonnes

30

million
tonnes

ANNUAL

CAPACITY

CONSISTENT PERFORMANCE
20th QUARTER OF CONSECUTIVE GROWTH

Adjusted EBITDA LTM

dec
14

mar
15

jun
15

sep dec
15 15

2.0

sep
14

2,026

1.9

1,975

1.8

jun
14

1.8

1.8

1,812

1.8

1,718

1,652

1.8

dec mar
13 14

1.8

sep
13

1,627

1,602

1,562

1,504

1,452
jun
13

1.8

dec mar
12
13

1.8

sep
12

1.8

jun
12

1.7

mar
12

1.7

1,424

1.7

1,351

1.7

1,286

1.7

1,180

1,089

1.7

sep dec
11 11

1.7

1.7 1,027

1.7 939

Excluding wood million tonnes

1,755

SALES VOLUME LTM

1,881

R$ million

2,173

LTM: Last twelve months

mar jun
16
16

KLABIN

PAPER
MACHINE
10
R$ million

Ajusted EBITDA LTM

FUTURE INTEGRATION IN PAPER

2,173

PAPER
MACHINE
11

PUMA
RAMP UP

PUMA START

922

jun2011

jun2016
CONSISTENT RESULTS

2021
FUTURE GROWTH

2Q16 RESULTS

SALES VOLUME, NET REVENUE

AND EBITDA
SALES VOLUME

NET REVENUE

Excluding wood- tsd tonnes

R$ million

631

1.338
28%

50%

435
32%

68%

2Q15

ADJUSTED EBITDA
R$ million

1.699
40%
538

EXPORTS

50%

2Q16

72%

60%

391

DOMESTIC
MARKET

2Q15

2Q16

2Q15

2Q16

PAPER

BUSINESS UNIT

COATED BOARDS
VOLUME

156

41%

KRAFTLINER

REVENUE

159

42%

VOLUME

506

457

98
68%

R$
million

103

72%

58%

DOMESTIC
MARKET
2Q16

189

R$
million

EXPORTS
32%

2Q15

201

R$
million

R$
million

59%

REVENUE

2Q15

2Q16

2Q15

28%
2Q16

2Q15

2Q16

CONVERSION
BUSINESS UNIT

VOLUME

172

tsd
tonnes

2Q15

REVENUES

589

177

tsd
tonnes

2Q16

551

R$
million

2Q15

R$
million

2Q16

PULP

NEW BUSINESS UNIT

REVENUE

VOLUME
181

286

90%

R$
million

EXPORTS

0
2Q15

10%
2Q16

DOMESTIC
MARKET

R$
million

2Q15

2Q16

CASH COST
2Q16

UNIT
CASH COST

CASH COST
BREAKDOWN

R$ millions

2Q16

2Q16

Electricity
8%

2.216
1.856

Others
Fuel Oil 5%
2%
Labor / third
parties
37%

Maintenance
materials /
stoppage
13%

Freight
11%

2Q15

2Q16

Chemicals
11%

3Wood /
Fibers
15%

CAPEX

CAPEX

2013

2014

2015

2016E

maintenance

369

384

455

567

special projects and growth

231

319

129

95

99

2,242

4,053

1,753

899

2,945

4,627

2,415

R$ millions

PUMA project
total

NET DEBT AND LEVERAGE

Average Cost AverageNET
TenorDEBT AND LEVERAGE
5,2
4,2

13.000
3,0

2,6

2,4
1,7

9.000

1,7

Dec-14

4.028

2.824
Jun-14

Net Debt (R$ million)

Sep-14

2.711

3.985
Dec-13

Mar-14

3.595
Sep-13

(1.000)

3.437

1.000

Jun-13

5.000

5.242

7.440

7.000

3.000

11.614

2,4

2,4

8.144

11.000

4,5

11.382

47 months

Net Debt/EBITDA (R$)

Jun-16

Gross Debt

5,9

12.009

50 months

Mar-16

4.6 % p.y.

6,3

12.411

Foreign Currency

6,2

Dec-15

40 months

Sep-15

10.2% p.y.

Jun-15

15.000

Local Currency

Mar-15

17.000

7,0
6,5
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
-2,5
-3,0
-3,5
-4,0

DEBT MATURITY

5,810

R$ million

2,744
R$ million

2,744

2,287

2,249

2,266
1,554

2,287

1,391
2,249

2,266
1,571

1,647

1,391

1,571

1,647

R$ million

1,554

2,096

1,895

1,510
1,510

1,189

932

358

575

358

429

237
237 121

Cash
position

121

146

3Q16

4Q16

3Q16

575 666

666
896

429
146 266
4Q16

2016

678

2017

2017

2018

1,106

1,106

619

619
526

2018

2019

2019
2020

2020

2021

526
404
2021

2022

426

426

404
343
2022

2023

244

Local
200
Currency
343 200
244 5,168198

2023

2024

Foreign
Currency
12,024
Gross Debt
17,192

770
770

678

266
2016

Foreign
Currency
12,024

1,189

896

1,895

2,139

1,569

1,569

932

2,139

2,096

198
1 2024

2025/26

2025/26

Local currency
R$ 5.6 billionForeign currency:
ForeignR$currency:
Local currency
: R$ 5.6 :billion
12 billion R$ 12 billion
Average
tenor:
40
months
Average
tenor : 50 months
Average tenor: 40 months
Average tenor
: 50 months

Local
Currency
5,168

Gross Debt
17,192

APPENDIX
PULP AND PAPER MARKET

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

FLUFF

BRAZIL IS THE 3RD LARGEST MARKETOF DISPOSABLE DIAPERS IN THE WORLD

SALES OF DIAPERS FOR ADULTS

SALES OF DIAPERS FOR INFANT

R$ million

R$ million

8.468
7.864

3.377
7.297

3.042

6.790

2.733

6.272
5.768

2.430

5.279

2.133

4.645 4.827

1.861

4.000

1.605
1.005
610

2009

1.183

9.139

3.398

1.363

788

2010

2011

2012 2013

Fonte: Euromonitor

2014

2015

2016

2017

2018

2019

2020

2009

2010

2011

2012 2013

2014

2015

2016

2017

2018

2019

2020

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%

SPREADS AMONG DIFFERENT FIBERS

330

Fluff vs Short Fiber

USD/TONNE

Long fiber vs Short Fiber

95

Jan/2013

Source: RISI

Jun/2013

Nov/2013

Apr/2014

Sep/2014

Feb/2015

Jul/2015

Dec/2015

May/2016

COATED BOARDS
LOW VOLATILITY PRICES

1200
1100
1000

800
700
600
500

BHKP

Fonte: FOEX e 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

INVESTOR RELATIONS
www.klabin.com.br/ri

invest@klabin.com.br
+55 (11) 3046-8401