INSTITUTIONAL PRESENTATION

MARCH 2015
KLBN11

KLBN11 /1KLBAY

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.

A DIFFERENTIATED
COMPANY

SALES VOLUME DESTINATION

INTEGRATION AND MARKETS

PAPER AND PACKAGING

STRONGLY LINKED
TO THE CONSUMER MARKET

FOREST

13%
other
consumer
goods

PAPER and CONVERSION

PULP

243

1.7

thousand ha

million tonnes

COATED
BOARDS

220

68%
food

750
thousand tonnes

12%

INDUSTRIAL BAGS
AND SACK KRAFT

others

7%

thousand
tonnes

building

330
thousand
tonnes
EUCALYPTUS AND PINE
FORESTS

OLD CORRUGATED
CONTAINERS

CORRUGATED BOXES
AND KRAFTLINER

1.0
million tonnes

PAPER

LEADER IN BRAZIL, WHERE WE ALLOCATE MORE THAN 50%

OF OUR CAPACITY

COATED
BOARDS

50%
market
share

MARKET POSITION

KRAFTLINER

637

40%
installed
capacity

thousand
tonnes sold
in 2014

389
thousand
tonnes sold
in 2014
sole supplier of liquid
packaging board in Latin
America
5

LEADER IN BRAZIL, WHERE WE ALLOCATE MORE THAN 95%

OF OUR CAPACITY

INDUSTRIAL
BAGS

CONVERSION
MARKET POSITION
CORRUGATED
BOXES

50%

16%

market
share

market
share

second players market

share is 16%
source: ABPO december 2013

second players market

share is 8%
6

RECENT IMPROVEMENTS IN EFFICIENCY

COST REDUCTION
AND CHANGE IN
COMMERCIAL
PRACTICES

MONTE ALEGRE, PR
OTACLIO COSTA, SC
CORREIA PINTO, SC
FORESTRY UNIT

INSOURCING

HIGH RETURN
INVESTMENTS

EXPANSION OF
CONVERSION
CAPACITY

EXPANSION OF
EVAPORATION SYSTEM

NEW CORRUGATOR

OTACLIO COSTA
AND MONTE ALEGRE

JUNDIA DISTR. IND, SP

NEW CORRUGATOR
GOIANA, PE

BIOMASS BOILER
OTACLIO COSTA
AND CORREIA PINTO

NEW INDUSTRIAL BAGS

EQUIPMENTS
GOIANA, PE

MECHANIZATION OF
SILVICULTURE AND
HARVESTING

HIGH VOLTAGE
TRANSMISSION LINE
MONTE ALEGRE

NEW PRINTERS FOR

CORRUGATED BOXES
7

ADJUSTED

16%

CAGR

32%

EBITDA
34%

26%

26%
MARGIN

1,352
962
milllion
R$

1,028

million
R$

1,562
million
R$

35%

1,718
million
R$

million
R$

SALES VOLUME OF 1.7 MILLION TONNES PER YEAR

(EXCLUDING WOOD)

2010

2011

2012

2013

2014
8

EXPANSION PROJECTS
NEW CAPACITIES

2013

2014

2015

DEBOTTLENECKING

SACK KRAFT
MACHINE
(SC)

COATED
BOARDS (PR)
50 thousand tonnes per
year

2016

RECYCLED
PAPER
MACHINE
(PE)

PUMA
110 thousand tonnes
per year

PROJECT

DEBOTTLENECKING

80 thousand tonnes per

year

ANGATUBA (SP)
35 thousand tonnes per
year

COMPLETED

DEBOTTLENECKING

PIRACICABA (SP)
15 thousand tonnes per

1.5 million tonnes

year

per year

CURRENT
DEVELOPMENT

GROWTH PERSPECTIVES
values excluding energy volume

3.5 mm tonnes
energy

fluff

1.8 mm tonnes

2.0 mm tonnes

short fiber pulp

conversion

conversion

conversion

papers

boards

2014

PAPER

PUMA

EXPANSIONS

CONCLUSION

GOIANA
ANGATUBA
PIRACICABA

papers

papers

boards

boards

2015

2016
10

PUMA
PROJECT

11

12

LOW OPERATION
COST
ANNUAL PRODUCTION
CAPACITY

1.5 MILLION
TONNES OF PULP

1.1 MILLION
TONNES OF

SHORT FIBER

PRODUCTION OF

270 MWh
of ENERGY
SELF SUFFICIENT
120 MWh
FOR PUMA
USE

150 MWh
FOR SALE IN
THE MARKET

400 THOUSAND
TONNES OF

LONG FIBER
PART CONVERTED TO FLUFF

13

LESS FORESTRY AREA NEEDED

300 thousand
hectares

Europe

700thousand
hectares

nordic countries

238 thousand
hectares

south USA

PLANTED FOREST
NEEDED FOR A 1.5
MILLION TONNES
OF HARDWOOD
PULP MILL
160

thousand
hectares

Chile

140 thousand
hectares

Brazil

100 thousand
hectares

KLABIN PUMA

HUGE

PRODUTIVITY

14

PARAN

ORTIGUEIRA

23 Km

PUMA

MONTE ALEGRE MILL

TELMACO BORBA

IMBA

15

CURRENT STATUS
COMPLETION
areas delivered to
EPCs

100% of earthmoving
concluded

COST

EPCs with Klabin

coordination

dedicated team: strong

feedback and control

45%

0%

0%

34%

95% of
equipment
supplies,
materials and
services
concluded

lower dependency on
imported equipments
EUR 360 million
(50% already paid)

OF THE PROJECT COMPLETED 100%

OF THE CAPEX DISBURSED 100%

16

46%

INDUSTRIAL CAPEX
TOTAL CAPEX
14%

national equipments and

materials

14%

R$ 7.2 BI
INDUSTRIAL CAPEX

imported
equipments

R$ 5.8 BI
27%

engineering
and other
services

NET OF
RECOVERABLE
TAXES

FUNDING FOR THE PROJECT

CONTRACTED
civil construction and
assembly

17

PUMA

LOGISTICS

18

LOGISTICS
MULTIMODAL

72 Km

441 Km

forestry average
distance

FORESTS

railway to the port

PARANAGU
PORT

PULP MILL

INBOUND

OUTBOUND
19

RAIL
4 compositions
of 71 wagons

4,544 tonnes
every 42 hours

1,250 meters
dimension of each composition
20

WAREHOUSE IN KM 5

maneuver
courtyard
ALL

rail access
static capacity of
70,000 tonnes

warehouse
Km 5

warehouse
in port
port

Klabin owns
the area

warehouse
in Km 5

warehouse will be
ready for use in dec/15
21

WAREHOUSE IN THE PORT

Klabin owns
the area

Static capacity
of 80,000
tonnes

rail access

warehouse in
the port

direct connection
to the primary
port area

Paranagu port
22

PUMA

PULP MARKET
23

PULP MARKET
2014

VIRGIN
FIBER
mm t PULP

164
112

PULP MARKET
DISTRIBUTION

45%

million tonnes

33%

52.6
million tonnes

eucalyptus

long fiber

22%
integrated pulp

Source: Hawkins Wright; RISI

market pulp

other
short fibers

24

PUMA: 6th LARGEST PULP MILL

LARGEST MARKET PULP MILLS OF THE WORLD

million tonnes per year in 2014

Fibria Aracruz

2,340

April Riau

2,200

April Rizhao

1,700

CMPC Guaba

1,690

Suzano Mucuri

1,565

Klabin

1,500

Suzano Maranho

1,500

Eldorado

1,500

Montes del Plata

Source: Hawkins Wright (jul/14)

1,300

WORLD DEMAND

million tonnes per year in 2014

short fiber

28.6

52.6 market
pulp

17.5

eucalyptus

25

4th LARGEST IN FLUFF

WORLD CAPACITY OF FLUFF
thousand tonnes per year in 2014

2,296

GP
1,420

Weyco

1,045

IP
400

Puma
Klabin

334

Domtar

290

Resolute

250

Arauco

Rayonier
UPM

the only designed to produce

fluff from the start
WORLD DEMAND

million tonnes per year in 2014

255

Stora

Rock Tenn

mills
converted in
fluff mills

23,7

170
110

6,4
fibra longa

fluff and
SBSK

100
SBSK = pinus long fiber from USA

Source: Hawkins Wright

26

FOCUS ON CONSUMER MARKETS

MARKET PENETRATION IN
DISPOSABLE DIAPERS

SOPHISTICATION AND INNOVATION IN

HIGHER VALUE ADDED PRODUCTS

2013

USA

96%
high potential of
growth
BRA

50%

ARG

72%
Source: RISI, Euromonitor

27

BRAZIL IS THE 3RD LARGEST MARKET

OF DISPOSABLE DIAPERS IN THE WORLD
SALES OF DIAPERS
FOR ADULTS

SALES OF DIAPERS
FOR INFANT

1.2

R$ billion

R$ billion

1.0
0.8
0.6

0.4

0.5

6.5

6.0
5.7

4.9
2008

2009

2010

2011

2012

4.2

2013

3.3

2008

Source: Euromonitor

2009

2010

2011

2012

2013
28

COMPOSITION OF DIAPERS
30% TO 50% OF THE AVERAGE WEIGHT
OF A DIAPER IS COMPOSED OF FLUFF (20 TO 40G)

29

SPREADS AMONG DIFFERENT FIBERS

308
fluff x short fiber

CIF EUROPE
US$/TONNE

122

long fiber x short fiber

may
13

jun
13

jul
13

Source: RISI, FOEX

aug
13

sep
13

oct
13

nov
13

dec
13

jan
14

feb
14

mar
14

apr
14

may
14

jun
14

jul
14

aug
14

sep
14

oct
14

nov dez
14 14
30

GLOBAL CASH COST (SHORT FIBER)

600

500

400

CIF EUROPE
US$/TONNE

PUMA

10

15

20

25

million
tonnes

million
tonnes

million
tonnes

million
tonnes

million
tonnes

Source: Hawkins Wright

CIF: COST, INSURANCE AND FREIGHT INCLUDED

ANNUAL
CAPACITY
31

EARNINGS
2014

32

HIGHLIGHTS
SALES VOLUME

NET REVENUE

excluding wood tsd tonnes

R$ million

ADJUSTED EBITDA
R$ million

4,894
1,788

31%
69%

2013

1,771

4,599

31%

26%

69%

74%

2014

exports

2013

25%

1,718
1,562

75%

2014

2013

2014

domestic
market
33

PAPER
BUSINESS UNIT

COATED
BOARDS

675
thousand
tonnes

44%

637
thousand
tonnes

1,608

1,661
million R$

million R$

377

41%

thousand
tonnes

58%
56%

639

389
thousand
tonnes

65%

598

million R$

million R$

59%

42%

2013

KRAFTLINER

KRAFTLINER (3)
KRAFTLINER AND COATED
BOARDS (1)
RECYCLED (2)

2014

2013

2014

2013

exports

domestic
market

35%

2014

2013

2014
34

CONVERSION
MARKET POSITION
CORRUGATED BOXES (7)
CORRUGATED BOXES AND
INDUSTRIAL BAGS (1)
INDUSTRIAL BAGS (3)

2,171
2,017

693

million R$

thousand
tonnes

million R$

2013

2014

2013

712
thousand
tonnes

2014
35

UNIT CASH COST

1,689

1,778

R$/tonne

R$/tonne

4T13

4T14*

1,830

1,719

R$/tonne

R$/tonne

2013

2014*

*Excluding non-recurring effects

36

NET DEBT
NET DEBT/EBITDA (LTM)
2.5x

2.4x

2.3x

2.5x

2.4x

2.5x

2.2x

2.4x

2.4x

3.0x

2.6x
2.4x
1.7x

1.7x

5,242
4,028

3,985

NET DEBT
R$ million

2,735

3,014

3,090

3,278

3,136

3,437

3,595
2,711

2,674

2,824

2,313

sep/11

dec/11

mar/12

jun/12

sep/12

dec/12

mar/13

jun/13

sep/13

dec/13

mar/14

jun/14

sep/14

dec/14

37

DEBT PROFILE
FIN. AGREEMENTS 2014
R$ million
Local Currency
Debentures Mandatorily
Convertible 2
BNDES - Debentures
BNDES Project PUMA

MATURITY SCHEDULE 2014

R$ million

Annual interest rate - %

Current

Noncurrent

8.0 + USD + Share of

Profits

254

293

547

IPCA + 2.5 to 7.25

22

777

798

TJLP + 2.5

200

202

Total

1.755
772

BNDES - Project MA1100

FINAME
BNDES - Other
Export credit notes
Other

TJLP + 4.5 and basket +

1.5

297

38

335

2.5 to 4.5

72

315

387

TJLP + 4.5 and basket1 +

1.5

172

652

824

CDI + 0.6
1.0 to 6.8

37
127

781
92

818
219

983

3,148

4,131

1.421

1.454

971

894

1.193

1.055
983

USD + 6.6

181

183

BNDES - Other

USD + 5.7 to 6.3

31

191

222

Bonds (Notes)

USD + 5.25

32

1,328

1,36

USD + 3.9 to 8.1

USD + Libor 6M + 1.0 to
6.4
USD + 1.9

155

1,127

1,282

537
14

3,256
-

3,793
14

771

6,083

6,854

1,754

9,231

10,985

Export credit notes

Export payments
Others
Total

1.413

673

1.351

897

585

734

470

2016

2017

2018

483
241

450

190

296

2015

613
398

560

Foreign Currency (USD)

BNDES Project PUMA

1.407

2019

215

2020

2021

242

2022

70
120

62

2023

2024

Foreign currency: R$ 6.9 billion

Average tenor : 57 months
Local currency : R$ 4.1 billion
Average tenor: 45 months

38

CAPEX
CAPEX
R$ million

2011

2012

2013

2014

2015E

maintenance

3T14
296

3T14
390

3T14
369

3T14
384

3T14
350

special projects and growth

159

264

431

319

385

vale do corisco

428

99

2,242

3,437

883

654

899

2,945

4,172

PUMA project
total

39

Investor Relations
www.klabin.com.br/ir
invest@klabin.com.br
Phone: +55 (11) 3046-8401
40

APPENDIX

41

INCOME STATEMENT
(R$ thousand)

4Q14

3Q14

4Q13

4Q14/3Q14 4Q14/4Q13

2014

2013

2014/2013

Gross Revenue

1,518,233

1,540,725

1,485,726

-1%

2%

5,900,091

5,554,345

6%

Net Revenue

1,257,110

1,282,208

1,236,221

-2%

2%

4,893,882

4,599,337

6%

19,644

252,784

56,362

-92%

-65%

924,104

336,289

175%

Cost of Products Sold

(919,770)

(909,269)

(845,033)

1%

9%

Gross Profit

356,984

625,723

447,550

-43%

-20%

Change in fair value - biological assets

(3,573,609)

(3,206,917)

2,244,377

1,728,709

11%
30%

Selling Expenses

(95,853)

(98,218)

(96,777)

-2%

-1%

(379,726)

(362,638)

5%

General & Administrative Expenses

(83,171)

(69,367)

(76,666)

20%

8%

(298,350)

(280,526)

6%

42,985

15,384

(1,342)

179%

N/A

84,785

11,472

Other Revenues (Expenses)

Total Operating Expenses

(136,039)

(152,201)

(174,785)

-11%

-22%

220,945

473,522

272,765

-53%

-19%

1,651,086

1,097,017

51%

14,268

23,032

4,860

-38%

194%

48,649

22,235

119%

Financial Expenses

(224,971)

(226,856)

(119,667)

-1%

88%

(654,932)

(423,350)

55%

Financial Revenues

131,778

149,318

64,803

-12%

103%

535,340

212,957

151%

(357,697)

(420,970)

(193,655)

-15%

85%

(526,520)

(528,641)

0%

Net Financial Revenues

(450,890)

(498,508)

(248,519)

-10%

81%

(646,112)

(739,034)

-13%

Net Income before Taxes

(215,677)

(1,954)

10938%

N/A

380,218

177%

885%

N/A

(323,293)

Operating Income (before Fin. Results)

Equity pickup

Net Foreign Exchange Losses

Income Tax and Soc. Contrib.

Net income
Depreciation and amortization
Cost of carrying out assigned to property - land
Change in fair value of biological assets
Vale do Corisco
Adjusted EBITDA

88,306
(127,371)
295,216
3,169
(19,644)

8,963

29,106
(7,586)

(593,291)

1,053,623

(631,692)

639%

(90,121)

-6%

259%

7,009

21,520

N/A

N/A

730,330

290,097

152%

222,366

216,749

33%

36%

951,965

766,553

24%

N/A

N/A

3,169

-92%

-65%

(924,104)

(336,289)

(252,784)

(56,362)

N/A
175%

8,708

8,326

9,330

5%

-7%

35,972

34,400

5%

508,394

451,430

442,482

13%

15%

1,718,088

1,561,681

10%

numbers in thousand R$

42

BALANCE SHEET
Assets
Current Assets
Cash and banks
Short-term investments
Securities

dec-14

dez-13

7,899,676

4,826,148

400,684

130,836

4,845,149

2,599,036

Liabilities and Stockholders' Equity

Current Liabilities

1,779,513

1,479,788

1,124,976

Debentures

275,201

Suppliers

438,864

345,384

18,209

55,137

43,298

139,879

127,356

REFIS Adherence

50,400

50,400

Other accounts payable

79,604

69,890

Loans and financing

497,604

249,511

1,148,676

1,145,154

Inventories

563,709

495,852

Taxes payable

Recoverble taxes and contributions

331,968

120,050

Salaries and payroll charges

Other receivables

111,886

85,709

13,274,179

dez-13

2,518,873

Receivables

Noncurrent Assets

dec-14

Income tax and social contribution

10,093,348

Long term

11,596,659

7,747,316

Taxes to compensate

428,884

123,684

Loans and financing

8,160,320

5,838,621

Judicial Deposits

84,689

90,969

Debentures

1,070,263

Other receivables

236,050

171,322

Deferred income tax and social contribution

1,699,823

1,220,187

Other investments

Noncurrent Liabilities

494,747

466,581

Other accounts payable - Investors SCPs

131,526

125,767

Property, plant & equipment, net

8,351,387

5,909,507

REFIS Adherence

384,607

393,492

Biological assets

3,667,085

3,321,985

Other accounts payable

150,120

169,249

Intangible assets

11,337

9,300
StockholdersEquity

7,058,323

5,392,667

Capital

2,271,500

2,271,500

Capital reserve
Revaluation reserve

1,295,919
48,767

4,419
49,269

Profit reserve

2,534,302

2,159,949

Valuation adjustments to shareholders'equity

1,065,446
(157,611)

1,065,437
(157,907)

Treasury stock
Total

21,173,855

14,919,496

Total

numbers in thousand R$

21,173,855

14,919,496

43