kpresentation2011 2q ing

8/6/2019 KPresentation2011 2Q Ing

1/31

Institutional presentationJuly 2011

1


2/31

2

Businessesand Markets

Pulp and paper

segment


3/31

222 Companies with activity in 539 cities, located in 18 states;

2.2 million hectares of industrial oriented planted forests;

2.9 million hectares of native preserved forests;

2.0 million hectares of certified forests;

2009 Exports: US$ 5.0 billion

2009 Trade balance: US$ 3.7 billion (14,4% of Brazils total trade

Segment info

3

a ance ;

Taxes paid : R$ 2.2 billion;

Investments: US$ 12 billion in the last 10 years;

Employment: 115 thousand direct employees (68 thousand in

industry, 47 thousand in forests) and 575 thousand indirectemployees.


4/31

Largest producers

thousand tonnes thousand tonnes

1 USA 48,329 1 China 86,391

2 China 20,813 2 USA 71,613

3 Canada 17,079 3 Japan 26,2794 Brazil * 13,315 4 Germany 20,902

5 Sweden 11,463 5 Canada 12,857

6 Finland 9,003 6 Sweden 10,933

7 Japan 8,506 7 Finland 10,602

Pulp PaperCountry Country

4

uss a , ou orea ,

9 Indonesia 5,971 9 Brazil * 9,428

10 Chile 5,000 10 Indonesia 9,363

11 India 3,803 11 India 8,693

12 Germany 2,545 12 Italy 8,449

Other 24,898 Other 84,696

177,960 370,687Total Total

Source: RISI 2009* Bracelpa


5/31

Technological updates

Genetics

Biotechnology

High quality raw material

Social and environmental planning

Reasons to the high productivity levels

Weather and soil

R&D

Organized private sector

Skilled labor

Brazils forestry productivity

5

Forest management

1980 2009 Var

Eucaliptus 24 44 83%

Pine 19 38 100%

Average productivity (m / ha*ano)

Wood for pulp


6/31

6


Klabin


7/31

112 years of tradition

Largest paper producer, exporter and recycler of the country

Leader in coated boards and packaging paper, corrugated boxes and

industrial bags

Klabin

7

Production capacity of 1.9 million tonnes per year

Exports to more than 70 countries

14.6 thousand direct and indirect employees

Gross revenue of R$ 4.4 billion per year


8/31

Business units

Total Net Revenue:

R$ 3.7 billion in 2010

Wood logs

7% *

Coated boards

Kraftliner13% *

8

Notes: In 2010, 2% of sales volume was composed of other products.

* Percentage of 2010 net revenue.

Corrugatedboxes

31% *

Industrial Bags

13% *

34% *


9/31

A company 100% integrated

planted forests: 212,000 ha pulp

coated boards

wood logs

Domesticmarket

Domestic& exportmarkets

9

Notes: All figures refer to installed production capacity. OCC Old Corrugated Container

pine andeucalyptus

paper capacity: 1.9 mi tonnes

planted forests short fiber andlong fiber pulp

o.c.c. recycled paper corrugated boxes

industrial bags

kraftliner

Domestic

market


10/31

Forestry Base - March 31st, 2011

51 Km *

95 Km *

10

(thousand ha)

Eucalyptus 77

Pine 135

Planted area 212

Native 193

Others 59

Total lands 459

73 Km *

So Paulo

Santa Catarina

Paran

Note: All forests are certified by FSC (Forest Stewardship Council).

* Average distance.


11/31

Klabin

Independent, non-governmental, not-for-profit organization established to

promote the responsible management of the worlds forests.

Supports management of forests environmentally appropriate, socially

beneficial and, economically viable.

Forest Stewardship Council

11

1

st

company in America in the pulp and paper segment to conquer FSC certification forthe forests in Parana State in 1998

1st company in the world to have phytocosmetic products certified by FSC in 1999

The only Latin American company to have certification for the processes in all its

products.


12/31

Forestry management: mosaic

12


13/31

Native forests

13

For every 100 hectaresplanted, Klabin preserve

around 80 hectares of native

forests

2.6 thousand Km ofecological corridors in Monte

Alegre (PR)

Protect soil and biodiversity

Regulate water flow

In Paran 123,000 hectares


14/31

Klabin in Paran

Presence in the region since 1934;

Forests in 34 municipalities;

Mill located in Telemaco Borba;

Largest integrated pulp and paper mill in LatinAmerica;

4,500 employees.

14


15/31

1946

Monte Alegre Mill

15

2011


16/31

World largest paper and boards mills

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Nine Dragons Paper - Xinshagan - Dong City (China)

Gold East Paper - Daganga, Zhenjiang City (China)

Daio Paper Corporation - Iyomishima (Japan)

Nordland Papier - Drpen (Germany)

Weyerhaeuser - Valliant (USA)

UPM-Kymmene - Rauma (Finland)

International Paper - Mansfield (USA)

PT Indah Kiat Pulp & Paper - Serang (Indonesia)

-

Monte Alegre Mill

16

Source: Jaakko Poyry Consulting

Klabin Papis - Monte Alegre (Brazil)Georgia-Pacific - Cedar Springs (USA)

Longview Fibre Co. - Longview (USA)

Shandong Sun Paper - Yan Zhou City (China)

Shandong Huatai Paper Industry - Dongyin City (China)

Stora Enso Kvarnsveden - Borlnge (Sweden)

Oji Paper - Tomakomai (Japan)

PanAsia Paper Korea - Deukjingu Jeonju (Korea)

Stora Enso - Kemi (Finland)

Georgia-Pacific - Monticello (USA)

Stora Enso - Nuottasaari, Oulu (Finland)

Monte Alegre

10th Largest paper millin the world

1.1 million tonnes per

year


17/31

Monte Alegre Unit

Industrial environment: sustainable development

Energy matrix based on our own forests.

Use of biomass - 98% of the steam comes from:

Black liquor

Bark and wood (biomass)

17


18/31

18


Financials


19/31

Financial figures

Sales volume(thousand tonnes)

Net revenue(R$ million)

EBITDA

(R$ million) 22%

28%

24%

24%

19

Domestic market Export market

32%

36%

68%

64%

39%

61%

78%

76%72%

29%


20/31

Net debt

The Company is committed to its deleveraging, in order tobe prepared to a new growth cycle.

5.3

4.4

3.7 3.64,500

5,500

4.04.5

5.05.5

6.0

20

3,786

3,192

2,886

2,676

2,528

2,462

2,106

2,128

2,002

.2.8

2.2 2.2 2.1

(500)

500

1,500

2,500

3,500

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 -2.0-1.5-1.0

-0.50.0

0.51.0

1.52.0

2.53.0

3.5

Net Debt (R$ million) Net Debt / EBITDA (LTM)


21/31

21


New growth cycle


22/31

Competitive advantage

Hardwood Rotation

(years)

Softwood Rotation

(years)

22

Source: Pyry and Klabin


23/31

Pulp

cash

c

ost

400

500

600

700

800

B

leachedhardwood

Bleachedsoftw

US$/to

nne

23

Source:HawkinsWright,April2011-1Q1

1Estimates

0

100

200

Brazil

Chile

Indonesia

Russia

Iberia & Norway

Finland

China

USA

France / Belgium

Sweden

Taiwan

South Korea

Chile

Russia

USA

Finland

Fra / Aus / Ger

Sweden


24/31

New short fiber pulp mills are being installed in the Southern Cone,

due to the advantage of the eucalyptus yield:

Ongoing projects:

Eldorado - MS;

Suzano MA;

Market

24

Montes del Plata Uruguay

Others in study:

Suzano PI;

Fibria MS; CMPC - RS

3


25/31

Lack of new long fiber capacities in Brazil and in the world;

High costs in northern hemispheres;

Ca acit closures or conversion

Pulp market

25

Good productivity of the Brazilian pine competitiveness

also in this segment.

3


26/31

A pulp mill "state of the art" has large surplus of energy generation

based on:

Black liquor

Power generation

26

Biomass - bark and forest residues;

This surplus is between 100 and 150 MWh/h;

3


27/31

Klabin area

40,000 m

Paranagu port

27


28/31

The pulp line will have the capacity of production of 1.5 million

tonnes per year, with forecasted investments of :

R$ 4.6 billion at the mill and logistics structure;

R$ 2.0 billion in forests.

Investiment

28

BNDES: R$ 2.8 billion;

Own capital: R$ 1.9 billion;

Partner: R$ 1.8 billion.

3


29/31


30/31

Expected results

R$ Million Klabin today Pulp Klabin - future

Sales volume (thousand tonnes) 1,800 1,500 3,300

Net revenue 4,000 2,100 6,100EBITDA 1,100 900 2,000

Forecast

30

Internal rate of return estimated at 17% and EBITDA margin of 45%

3


31/31

31

kpresentation2011 2q ing

Documents