Institutional Presentation - 4Q12
Transcript of 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
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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
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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
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Sales volume destination
paper and packaging
68%Food
Building
Other consumergoods
Others
13%
7%
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Exports
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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
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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
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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%
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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)
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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
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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
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Capex
R$ million 2012 2013E
Maintenanceand s ecial ro ects
552 361
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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]