Institutional Presentation 4Q13

8/12/2019 Institutional Presentation 4Q13

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The statements contained in this presentation related to the business outlook, operating and financial projections, and growprospects of Klabin S.A. are merely projections, and as such are based exclusively on the expectations of the Companysmanagem

concerning the future of the business.

These forward-looking statements depend substantially on the market conditions, the performance of the Brazilian economy,

industry and international markets, and therefore are subject to change without prior notice.

This presentation on Klabinsperformance includes non-accounting and accounting data, such as operating and financial informatioas well as projections based on Managements expectations. Note that the non-accounting data has not been reviewed by t

Companysindependent auditors.

The Companysmanagement believes EBITDA may provide useful information on the Companysoperating performance and allow

comparisons with other companies in the same industry. Note however that EBITDA is not a measure established in accordance w

generally accepted accounting principles of the International Financial Reporting StandardsIFRS, and may be defined and calcula

differently by other companies.

DISCLAIMER


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A DIFERENTIATED

COMPANY


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eucalyptus andpine forests

planted forests:

243 thousand hashort fiber andlong fiber pulp

old corrugatedcontainers

recycled paper corrugated boxes

industrial bags

kraftliner

coated boards

wood logs

Domestic mark

Domestic and

export market

Domestic mark

243 k ha

250 ktonnes

1.0 mtonnes

700 ktonnes

1.7 m

tonnes

2.5 mtonnes

200 ktonnes

570 ktonnes

150 ktonnes

CAPACITY


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Leader in the Brazilian packaging paper market, where we allocate more

50% of our capacity

CoatedBoards

Kraftliner

67550%

marketshare

thousand

tonnes soldin 2013

377

40%installedcapacity

thousand

tonnes soldin 2013

Sole supplier ofliquid packaging board

in Latin America

MARKET POSITIONPAPER


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Leader in the Brazilian packaging market where we allocate more than 95%

our capacity

IndustrialBags

CorrugatedBoxes

50%market share

Second playersmarket share is 16%

15%market share

Second pla

market share is

MARKET POSITIONCONVERSION


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Strongly linked to the consumer market

Sales volume destination

paper and packaging

68%Food

Building

Other consumergoods

Others

13%

7%

DESTINATION OF KLABINS PRODUCT


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HIGH RETURN

INVESTMENTS

EXPANSION OFEVAPORATION SYSTEM

OTACLIO COSTAAND MONTE ALEGRE

BIOMASS BOILEROTACLIO COSTA

AND CORREIA PINTO

HIGH VOLTAGETRANSMISSION LINE

MONTE ALEGRE

COST REDUCTION ANDCHANGE IN

COMMERCIALPRACTICES

MONTE ALEGRE, PROTACLIO COSTA, SCCORREIA PINTO, SC

FORESTRY UNIT

INSOURCING

MECHANIZATION OF

SILVICULTURE ANDHARVESTING

EXPANSION OF

CONVERsION CAPAC

NEW CORRUGJUNDIA DISTR. I

NEW CORRUGATORGOIANA, PE

NEW INDUSTRIAL EQUIPM

GOIA

NEW PRINTERS FOR

CORRUGATED BOXES

FROM 2008 TO 2013

8


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sep11

939

dec11

1,028

mar12

1,089

jun12

1,180

1,452

sep12

1,286

dec12

1,352

jun13

1.71.7 1.7 1.7 1.7 1.7 1.7

1,424

1.7

mar13jun11

922

1.7

33%

25%26%

28%

31%29%

32% 33%

Margin

24% 1,504

sep13

1.7

34%

LTM: Last twelve months

Sales Volume LTM(excluding wood million tonnes)

Adjusted EBITDA LTM(R$ million)

9

69% growth

ADJUSTED EBITDA LTM


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HIGH RETURNINVESTMENTS

DEBOTTLENECKING AT

THE WOOD YARDMONTE ALEGRE

BIOMASS DRYINGPROCESS

OTACLIO COSTA

COST REDUCTION

FORESTRY UNIT

CORRUGATED BOXESUNIT

FROM NOW ON

10


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2013 2014 2015 2016

50,000tonnes per

year

80,000tonnes peryear

debottleneckingcoated boards (PR)

sack kraftmachine(SC)

STARTED INNOV/2013 recycled paper

machine(PE)110,000tonnes peryear

PUMAproject

1.5 milliontonnes per year

EXPANSION PROJECTS


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3.5 milliontonnes per

year

2016 E


year

2015 E

1.8million

tonnes peryear

2014 E


year

2013

PRODUCTION CAPACITY


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2013

RESULTS


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BRAZILIAN PACKAGING MARKETS

Source: BACEN, SECEX/MDIC, ABPO and Bracelpa* Excluding LPB

2012 2013

HIGHER EXCHANGE RATE INHIBITEDIMPORTS OF PACKAGED PRODUCTS

300

2012

348

2013

Brazilian imports ofpackaged products

(monthly avg - tsd tonnes)

FX exchange rate(R$ / dollar)

2,161,95

3,4003,304

Brazilian sales ofcorrugated boxes

2012 2013

2012

531

2013

Brazilian sales of

coated boards *

557

Tsd tonnes


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Klabin Sales Volume(excluding woodtsd tonnes)

DOMESTIC MARKET SALES

1,235

2012

1,183

2013

Flexibility of product lines

Competitive advantage ofKlabinsproductscostand quality

Focus on food markets


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SALES AND NET REVENUE

Export MarketDomestic Market

Sales volume

(excluding wood

tsd tonnes)

Net revenue

(R$ million)

4Q12 4Q13

75%

2012 20

7675%24%

76% 73%

1,0781,236

26

74

4,1644,5

76%

24%

27%

4Q12 4Q13

70%

2012 2013

31%

69%

1,727 1,788

69%

31%

67%

476

33%30%

70%

437


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Kraftliner

Recycled

Kraftliner andcoated boards

Domestic market Export market

Kraftliner

Coated

boards

Thousand tonnes R$ million

PAPER BUSINESS UNIT

2012

55%

45%

387

2013

58%

42%

377

2012 2013

598

529

1%

2012

45%

55%

670

2013

44%

56%

675

2012 2013

1,4991,60


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Corrugated boxes

Industrial bags

Corrugated boxesand industrial bags

Total

conversion

Thousand tonnes R$ mill

CONVERSION BUSINESS UNIT

2012

638

2013

693

2012 2

1,782

2


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1,562

2012

1,352

Adjusted EBITDA(R$ million)

COST AND EBITDA

1,718

2013

1,627

5%

Unit cash cost(R$/tonne)

Low cost

Higher domestic sales

Higher exports prices

16% EBITDA GROWTH YOY

2013

1,644

2012


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LTM: Last twelve months

NET DEBT

0,0

0,5

1,0

1,5

2,0

2,5

3,0

Net Debt / Adjusted EBITDA (LTM)

Net Debt/Adjusted EBITDA

Jun-13Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

2.4 2.62.5 2.32.5 2.4 2.5 2.2 2.4

Sep-13 Dec -13


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CAPEX

R$ MILLION 2011 2012 2013 2014E 201

MAINTENANCE 296 390 369 372 36

SPECIAL PROJECTSAND EXPANSION

159 264 431 431 -

VALE DO CORISCO 428 - - - -

PUMA PROJECT - - 99 2,762 3,4

TOTAL 883 654 899 3,565 3,8


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PROJECT

PUMA

THE PROJ


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THE PROJ

272 MWhof ELECTRICAL ENER

productionSELF SUFFICIENC

122 MWhfor internal

use

150 MWto the

marketenough to scity of 500 tinhabitants

ANNUAL PRODUCTIONCAPACITY

1.5 MILLIONTONNES OF PULP

LOW OPERATION COST

1.1 million

tonnes ofSHORT FIBER

400 thousand

tonnes ofLONG FIBERpart converted into fluff

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PROJECT FEATU


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PROJECT FEATU

PU

fluff produc

production of hardwood pulp (eucalypand softwood (p

lowest cash cost in Br

domestic s

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PROJECT FEATU


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PROJECT FEATU

LOCALIZATI

PUMAKLABIN FORESTS

MONTE ALEGRE

VALE DO CORFOR

PARAN STATE

PROJECT FEATU


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PROJECT FEATULESS FORESTRY AREA NEE

238thousandhectaressouth USA

140thousandhectaresBrazil

300thousandhectaresEurope

700thousandhectaresnordic countries

160 thousandhectaresChile

100thousandhectaresKLABIN PUMA

planted forestneeded for a1.5 milliontonnes ofhardwood pulpmill

HUGEPRODUTIVITY26

PRODU


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PRODU

EUCALYPTUS PULPBEKPIN BALES

PINE PULPBSKP

IN BALES

FIN R

MADE

PUMA PROJECT PRODUCES 3 DIFFERENT TYPES OF FIBERthat could lead to combined sales to the same client

* BEKP: bleached eucaliptus kraft pulpBSKP: bleached softwood pulp 27

WORLD DEMA


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11.6million tonnesOTHERSHORTFIBER

6.5milliontonnes

FLUFF

16.5million tonnesEUCALIPTUS

WORLD DEMABLEACHED P

17.4million tonnes

LONG FIBER

SOURCE: HAWKINS WRIGHT

SHORT FIBER28milliontonnes

LONG FIBER24milliontonnes

52MILLIONTONNES IN 2013

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WORLD DEMA


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WORLD DEMASHORT FI

SOURCE: HAWKINS WRIGHT2013 2017

CAGR

3.3%

2013anualizado

28.2million tonnes

SHORT

FIBER

2013

32.2million tonnes

SHORTFIBER

201729

MAR


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MAR

LONG FIB

SOURCE: BRACELPA

LONG FIBER IMPORTSIN BRAZIL

DOMESTIC MARKET F

IMPORTS SUBSTIT

GROWTH

7%439thousand

tonnes

IMPORTEDLONG FIBER

2013anualized

410thousandtonnes

IMPORTED

LONG FIBER

201230

MAR


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MAR

FLUDISPOSABLE DIAPERS DEMANDIN BRAZIL

SOURCE: EUROMONITORINTERNATIONAL

fluff domestic demanexpected to grow significa

imports substitu

Major markeinfant and adult diapers

women dispo5.8billion

units

DISPOSABLEDIAPERS

2007

9.8billionunits

DISPOSABLEDIAPERS

2012

11.8billionunits

DISPOSABLEDIAPERS

2017E

CAGR11%

CAGR4%

GLOBAL CASH COST (SHORT FIB


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SOURCE: HAWKINS WRIGHT

GLOBAL CASH COST (SHORT FIB

annual capacity (millions of tonnes)5 10 15 20 25

PUMA

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COMMERCIAL STRAT


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KLABINWILL NOT AI

FOR LARGE

VOLUMES

COMMERCIAL STRAT

SHORTFIBER

1

LONGFIBER

2

FLUFF 3

DOMESTICMARKET

4

EXPORTS 5

INTEGRATION 6

PUMA

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LOGIS


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LOGISSHORT DISTAN

72 Kmforestry average

distance

pulp millforests 441 Kmrailway to the port Paranagu

EXPORT

highway

DOMEMARK

INBOUND OUTBOUND

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CAPEX AND FUND


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CAPEX AND FUND

R$5,8billion reaisINDUSTRIAL CAPEX

R$ 7.2BILLIONREAIS

CAPEX FUNDINGR$ 7.2BILLION

REAIS

R$ 0,8billion reaisRETURNABLE TAXES

R$ 0,6billion reaisOFF THE FENCE(recovered)

R$4billion reaisBNDES

R$ 0,8billion reaisECAs

R$ 0,7billion reaisBID

R$ 1,7billion reaisCAPITALIZATION

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PROJECT STA


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earthmovement well advanced (more than 60%)

start up: March 2016

Around 80% already contracted

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- Turbo generators

-Balance of plant

-Electrical motors

-Digestors-Wood yard

-Port & railroad

-Boilers

-Others

20% under negotiation-Roads

-Eletric system

-Chemichal plants

EARTHMOVEM


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APPENDIX

INCOME STATEMENT


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INCOME STATEMENT

2013/2012 2012/2011

Gross Revenue 5.554.345 4.996.659 11% 4.686.275 7%

Net Revenue 4.599.337 4.163.670 10% 3.889.151 7%

Change in fair value - biological assets 336.289 885.988 -62% 270.577 227%

Cost of Products Sold (3.206.917) (2.823.148) 14% (2.827.442) 0%

Gross Profit 1.728.709 2.226.510 -22% 1.332.286 67%

Selling Expenses (362.638) (344.574) 5% (321.055) 7%

General & Administrative Expenses (280.526) (273.918) 2% (249.405) 10%

Other Revenues (Expenses) 11.472 10.373 11% 35.308 -71%

Total Operating Expenses (631.692) (608.119) 4% (535.152) 14%

Operating Income (before Fin. Results) 1.097.017 1.618.391 -32% 797.134 103%

Equity pickup 22.235 25.827 -14% (429) N/A

Financial Expenses (423.350) (437.878) -3% (434.696) 1%

Financial Revenues 212.957 267.950 -21% 316.311 -15%

Net Foreign Exchange Losses (528.641) (377.834) 40% (382.183) -1%

Net Financial Revenues (739.034) (547.762) 35% (500.568) 9%

Net Income before Taxes 380.218 1.096.456 -65% 296.137 270%

Income Tax and Soc. Contrib. (90.121) (344.491) -74% (113.416) 204%

Net income 290.097 751.965 -61% 182.721 312%

Depreciation and amortization 766.553 592.677 29% 547.768 8%

Change in fair value of biological assets (336.289) (885.988) -62% (270.577) 227%

Vale do Corisco 34.400 26.538 30% 2.295 1056%

EBITDA 1.561.681 1.351.618 16% 1.076.620 26%

(-) Sales of assets - - N/A (48.453) N/A

Adjusted EBITDA 1.561.681 1.351.618 16% 1.028.167 31%

20112012(R$ thousand) 2013

UNITS


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UNITSShareholder structure after the second period of conversion

217

MM

14 MM

KIC/NIBLAK Others

16 MM

14 MM

6 MM70 MM

BNDES Monteiro Aranha Treasury Others

56 M

129 MM

ADR's Others

KLBN3231 MM shares

KLBN11*106 MM Units

1 KLBN11 = 1 ON + 4 PNs KLBN4185 MM sha

*106 MM of ON shares

424 MM of PN shares


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Institutional Presentation 4Q13

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