INSTITUTIONAL PRESENTATION

FEBRUARY, 2016

KLBN11

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.

CONSISTENT
GROWTH

KLABIN TODAY

2 MILLION TONNES OF PAPER AND PACKAGING CAPACITY

Forestry

Total lands
Planted area
Pine
Eucaliptus
Native forests

tsd hectares
489
235
144
91
254

Total capacity
Coated boards
Kraftliner
Sack kraft
Recycled

tsd tonnes
2020
750
830
210
230

Papers

Conversion

tsd tonnes
Total capacity
Corrugated boxes
Industrial bags

810
655
155
4

FLEXIBLE PRODUCT LINE

LEADER IN ALL SEGMENTS IN BRAZIL AND LINKED TO RESILIENT MARKETS

COATED BOARDS
market share

50%

KRAFTLINER

SALES VOLUME DESTINATION (2015)

PAPER AND PACKAGING

installed capacity

40%

30%

34%

EXPORTS

OTHERS

sole
supplier
of
liquid
packaging board in Latin
America

50%
INDUSTRIAL BAGS
market share

16%
CORRUGATED BOXES

66%

DOMESTIC

70%

FOOD
MARKETS

FLEXIBILITY AND RESILIENT MARKETS

market share
5

KLABIN TODAY

CONSISTENT PERFORMANCE

2,0

1,5

1,7

1,7

1.089

939

922

2,5

1.027

3,0

1,7

1,7

1,7

1,7

1,7

1,7

1,7

1,7

1,8

1,8

1,8

1,8

1,8

1,8

1,8

1.975

1.881

1.812

1.755

1.718

1.652

1.627

1.602

1.562

1.424

1.286

1.180

LTM - R$ million

4,0
3,5

1.351

4,5

1.452

5,0

1.504

adjusted EBITDA

EBITDA GROWTH

1,8

1,8

1,0
0,5
-

Jun-11 Sep-11 Dec-11Mar-12 Jun-12 Sep-12 Dec-12Mar-13 Jun-13 Sep-13 Dec-13Mar-14 Jun-14 Sep-14 Dec-14Mar-15 Jun-15 Sep-15 Dec-15

Sales Volume
(excluding wood million tonnes)

Adjusted EBITDA LTM

(R$ million)

PUMA PROJECT

LOW OPERATION
COST
ANNUAL PRODUCTION
CAPACITY

1.5 MILLION
TONNES OF PULP

1.1 MILLION

TONNES OF

SHORT FIBER

400 THOUSAND
TONNES OF

LONG FIBER
PART CONVERTED TO FLUFF

PUMA PROJECT

PRODUCTION OF

270 MW

of ENERGY
SELF SUFFICIENT
120 MW
FOR PUMA
USE

150 MW
FOR SALE IN
THE MARKET

46%

PUMA

INDUSTRIAL CAPEX

TOTAL CAPEX

14%

national equipments and

materials

14%

R$ 7.2 BI

INDUSTRIAL CAPEX

imported
equipments

27%

engineering
and other
services

R$ 5.8 BI
NET OF
RECOVERABLE
TAXES

PROJECT

FULLY FUNDED
civil construction
and assembly

PUMA LOGISTICS
MULTIMODAL

72 Km

441 Km

forestry average
distance

FORESTS

railway to the port

PARANAGU
PORT

PULP MILL

INBOUND

OUTBOUND
10

PUMA COMPETITIVENESS
SOFTWOOD ANDHARDWOOD

445

472

Softwood

418

450
Hardwood

337

350
312
200

PUMA

FOB

US$/TONELADA

million
tonnes
Source: Hawkins Wright April 2015

10

million
tonnes

15

million
tonnes

20

million
tonnes

25

million
tonnes

30

million
tonnes

ANNUAL

CAPACITY
11

adjusted EBITDA

PREPARED TO GROW

PAPER
MACHINE 11

COST CUTTING
MIX
VOLUME

LTM - R$ million

PAPER
MACHINE 10

PUMA
PROJECT

SALES VOLUME
MIX AND PRICE
COST CUTTING IMPROVEMENT
PROGRAM

JUN 2011

2021

DEC 2015

CONSISTENT RESULTS

GROWTH PERSPECTIVES
12

EARNINGS
2015

HIGHLIGHTS
SALES VOLUME

excluding wood tsd tonnes

1,771

31%

69%

2014

NET REVENUE
R$ million

R$ million

5,688

1,833

34%

ADJUSTED EBITDA

4,894

1,718

25%
66%

2015
exports

75%

2014

1,975

32%
68%

2015

2015

2014

domestic
market
14

PAPER

BUSINESS UNIT

COATED
BOARDS

637

thousands
tonnes

685

thousands
tonnes

42%

41%

KRAFTLINER

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

2,096

1,661

858

R$
millions

R$
millions

389

thousands
tonnes

418

thousands
tonnes

72%

R$
millions

639

R$
millions

64%
59%

58%

36%

2T14
2014

2T15
2015

2T14
2014

2015
2T15

2014

exports

domestic
market

28%

2015

2014

2015
15

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

712

2,251
2,171 thousands

690

R$
millions

R$
millions

2014

2015

thousands
tonnes

2014

tonnes

2015
16

CASH COST
UNIT
CASH COST

1,863
R$/tonne

2,041
R$/tonne

CASH COST
BREAKDOWN 2015

Others
Electricity
5%
9%
Maintenance
materials /
stoppage
11%

Labor / third
parties
32%

Fuel Oil
3%
Sales
expenses
11%

2014*

2015*

Wood / Fibers
14%
Chemicals
13%

*Excluding non-recurring itens from other operating revenues and

expenses

17

NET DEBT

4,2

.000

1,7

1,8

4.028

Sep-14

2.824

Jun-14

3.985

Dec-13

2.711

3.595

Sep-13

Net Debt (R$ million)

Mar-14

3.437

Jun-13

.000)

Mar-13

.000

3.136

.000

.000

Net Debt/Ebitda (R$)

11.614

2,7

Net Debt/Ebitda (US$)

Dec-15

2,2

2,3

Sep-15

2,2

1,7

3,3
8.144

1,7

3,8

7.440

2,3

2,4

2,4

5.242

2,4

3,0

Dec-14

.000

2,2

2,4

2,6

6,3

5,4
4,6

.000

.000

4,5

Jun-15

.000

6,2

Mar-15

.000

Gross Debt
Cash
Net Debt

12.411

in 12/31/15
R$ 18.0 billion
R$ 5.6 billion
R$ 12.4 billion

.000

8,0
7,5
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

18

CAPEX
CAPEX
R$ million

2011

2012

2013

2014

2015E

2016E

maintenance

3T14
296

3T14
390

3T14
369

3T14
384

3T14
445

3T14
567

special projects and growth

159

264

431

319

129

95

vale do corisco

428

99

2,242

4,053

1,883

883

654

899

2,945

4,627

2,545

PUMA project
total

19

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

APPENDIX
PUMA MARKET
FINANCIAL FIGURES

PUMA

PULP MARKET

PULP MARKET
2015

VIRGIN
FIBER
mm t PULP

167
108.5

million tonnes

58.5

million
tonnes

integrated pulp

Source: Hawkins Wright; RISI

market pulp

PULP MARKET
DISTRIBUTION

47%
37%
eucalyptus

long fiber

19%
other
short fibers

23

PULP WORLD DEMAND

million tonnes per year in 2015

Market pulp

53.9
Short fiber

29.9
20.1

Long fiber

24.0
6.8

eucalyptus

fluff e
SBSK
SBSK = long fiber from the
south of USA

Fonte: Hawkins Wright

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

25

BRAZIL IS THE 3RD LARGEST MARKET

OF DISPOSABLE DIAPERS IN THE WORLD

SALES OF DIAPERS
FOR INFANT

3.042

SALES OF DIAPERS
FOR ADULTS

2.733

R$ million

R$ million

2.430
2.133

8.468

1.861

7.864

1.605

7.297
6.790

1.363

6.272

1.183

5.768

1.005

5.279

788

4.645 4.827

610
4.000
3.398

2009

2010

2011

2012 2013

2014

2015

2016

2017

2018

2019

2020

2009

Source: Euromonitor

2010

2011

2012 2013

2014

2015

2016

2017

2018

2019
26

2020

COMPOSITION OF DIAPERS
30% TO 50% OF THE AVERAGE WEIGHT
OF A DIAPER IS COMPOSED OF

FLUFF

(20 TO 40G)

27

SPREADS AMONG DIFFERENT FIBERS

240

CIF EUROPE
US$/TONNE

fluff x short fiber

15
long fiber x short fiber

jul
13

aug sep
13 13

oct nov dec

13 13 13

Source: RISI, FOEX

jan
14

feb mar apr may jun

14 14 14 14 14

jul
14

aug sep oct nov dez jan feb mar apr may
14 14 14 14 14 15 15 15 15 15
28

INCOME STATEMENT
(R$ thousands)

4Q15

3Q15

4Q14

4Q15/3Q15

4Q15/4Q14

2015

2014

2015/2014

Gross Revenue

1.877.204

1.719.529

1.518.233

9%

24%

6.745.775

5.900.091

14%

Net Revenue

1.595.507

1.445.697

1.257.110

10%

27%

5.687.589

4.893.882

16%

226.614

98.731

19.644

130%

1054%

536.113

924.104

-42%

(1.063.709)

(929.311)

(919.770)

14%

16%

Gross Profit

758.412

615.117

356.984

23%

112%

Selling Expenses

(121.389)

(107.458)

(95.853)

13%

27%

(428.902)

(379.726)

13%

General & Administrative Expenses

(101.326)

(78.796)

(83.171)

29%

22%

(338.013)

(298.350)

13%

10.369

(7.528)

42.985

N/A

-76%

(13.104)

84.785

N/A

(780.019)

Change in fair value - biological assets

Cost of Products Sold

Other Revenues (Expenses)

Total Operating Expenses
Operating Income (before Fin. Results)
Equity pickup

(3.981.502)

(3.573.609)

11%

2.242.200

2.244.377

0%

(212.346)

(193.782)

(136.039)

10%

56%

(593.291)

31%

546.066

421.335

220.945

30%

147%

1.462.181

1.651.086

-11%

6.580

10.707

14.268

-39%

-54%

30.626

48.649

-37%

Financial Expenses

(233.853)

(235.506)

(224.971)

-1%

4%

(848.485)

(654.932)

30%

Financial Revenues

159.906

177.378

131.778

-10%

21%

581.900

535.340

9%

Net Foreign Exchange Losses

306.158

(2.431.549)

(357.697)

N/A

N/A

(3.174.030)

(526.520)

503%

Net Financial Revenues

232.211

(2.489.677)

(450.890)

N/A

N/A

(3.440.615)

(646.112)

433%

Net Income before Taxes

784.857

(2.057.635)

(215.677)

N/A

N/A

(1.947.808)

Income Tax and Soc. Contrib.

(264.251)

N/A

N/A

Net income

520.606

N/A

N/A

Depreciation and amortization

Change in fair value of biological assets
Vale do Corisco
Adjusted EBITDA

716.802
(1.340.833)
-

88.306
(127.371)
-

(1.253.197)
-

268.446

185.980

295.216

44%

-9%

(226.614)

(97.754)

(16.475)

132%

1276%

15.074

10.047

8.708

50%

602.972

519.608

508.394

16%

numbers in thousand R$

694.611

1.053.623

N/A

(323.293)

N/A

730.330

N/A

998.727

951.965

5%

(527.683)

(920.935)

-43%

73%

42.007

35.972

17%

19%

1.975.232

1.718.088

15%

29

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

Dec-15
8.675.744

Dec-14
7.899.676

56.511

105.794

4.997.212

5.140.039

557.143

497.604

Liabilities and Stockholders' Equity

Current Liabilities

2.518.873

1.716.306

1.479.788

Debentures

329.810

275.201

Suppliers

702.199

438.864

Loans and financing

1.501.099

1.148.676

701.126

563.709

Taxes payable

Recoverble taxes and contributions

736.501

331.968

Salaries and payroll charges

Other receivables

126.152

111.886

Dividends to pay

Income tax and social contribution

REFIS Adherence
17.592.436

13.274.179

Dec-14

3.162.295

Inventories

Noncurrent Assets

Dec-15

Other accounts payable

45.400

55.137

195.349

139.879

61.772

50.400

111.459

79.604

Long term
Taxes to compensate

1.159.638

428.884

Noncurrent Liabilities

17.753.545

11.596.659

Judicial Deposits

77.391

84.689

Loans and financing

14.834.935

8.160.320

Other receivables

219.820

236.050

Debentures

1.140.679

1.070.263

507.275

494.747

Deferred income tax and social contribution

954.269

1.699.823

12.009.146

8.351.387

Other accounts payable - Investors SCPs

143.116

131.526

3.606.389

3.667.085

REFIS Adherence

361.240

384.607

Other accounts payable

319.306

150.120

5.352.340

7.058.323

Capital

2.383.104

2.271.500

Capital reserve

1.293.962

1.295.919

Other investments
Property, plant & equipment, net
Biological assets
Intangible assets

12.777

11.337

StockholdersEquity

Revaluation reserve

48.705

48.767

748.162

2.534.302

Valuation adjustments to shareholders'equity

1.064.181

1.065.446

Treasury stock

(185.774)

(157.611)

Profit reserve

Total

26.268.180

21.173.855

Total

numbers in thousand R$

26.268.180

21.173.855

30

LOAN MATURITY SCHEDULE

numbers in R$ million

31