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Puma Project

Credit Suisse 2015 Latin America Investment Conference

KLBN11

Institutional presentation January 2015

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.

EBITDA

ADJUSTED EBITDA LTM


R$ millions

1.424
1.286

1.452

1.504

1.602

1.627

1.652

1,8

1,8

1,8

1,8

dez/13

mar/14

jun/14

set/14

1.562

1.351

1.180
1.027

1.089

939

1,7

1,7

1,7

1,7

1,7

1,7

1,7

1,7

1,7

set/11

dez/11

mar/12

jun/12

set/12

dez/12

mar/13

jun/13

set/13

VOLUME OF SALES LTM


excludes wood millions t

LTM: last twelve months

PERSPECTIVES OF GROWTH
3,5 mm tons
energy

long fiber / fluff


1,8 mm tons

2,0 mm tons

conversion

conversion

papers

expansion
papers

short fiber

conclusion
Puma

conversion

papers

papers

boards

boards

boards

2014

2015

2016

Goiana
Angatuba
Piracicaba

Exclude the sale of energy and wood

PROJECT

FORESTRY COMPETITIVENESS
High
Productivity

Fiber mix

m3/ha/year

Radius from
the forest to the
mill

Mosaic
plantation

Today
48 Km
Klabin

38

54

+
Brasil

Nrdics

38

44

Sources: Ib, Poyry and Klabin

pinus eucaliptus

Puma
72 Km

Sustainable
Management

LOW OPERATION
COST
ANNUAL PRODUCTION
CAPACITY

1.5 MILLION
TONNES OF PULP

1.1 million
tonnes of
SHORT FIBER

400 thousand

PRODUCTION OF

270 MWh
of ENERGY
SELF SUFFICIENT
120 MWh
available for
Puma use

150 MWh
available for
sale in the
market

tonnes of

LONG FIBER
part converted tofluff

Energy excess
of 40 MWh
after Puma

LESS FORESTRY AREA NEEDED

300 thousand
hectares

Europe

700thousand
hectares

nordic countries

238 thousand
planted forest
needed for a 1.5
million tonnes
of hardwood
pulp mill

160

thousand
hectares

Chile

hectares

south USA

140 thousand
hectares

Brazil

100 thousand
hectares

KLABIN PUMA

HUGE

PRODUTIVITY

10

PARAN STATE

ORTIGUEIRA

23 Km

PUMA

MONTE ALEGRE
TELMACO BORBA

IMBA

CURRENT STATUS
COMPLETION
areas delivered to
EPCs

99% of earthmoving
concluded

0%

COST

EPCs with Klabin


coordination

dedicated team: strong


feedback and control

38,5%

95% of
equipment
supplies,
materials and
services
concluded

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

of the project completed according to the budget until dec,14

100%

46%

INDUSTRIAL CAPEX
14%

TOTAL CAPEX

R$ 7.2 BI
national equipments and imported
materials equipments

14%

27%

INDUSTRIAL CAPEX

R$ 5.8 BI
NET OF
RECOVERABLE
TAXES

engineering and
other services
civil construction and
assembly

FUNDING PUMA
R$ 7,2 bi

R$ 7,2 bi

RecoverableTaxes
R$ 600 mi

IDB R$700 mi

Infrastructure
R$ 800 mi

ECA Finnvera
R$ 1,0 bi

BNDES
R$ 4,2 bi
Industrial Capex
R$ 5,8 bi

Debenture - equity
R$ 1,7 bi

Uses

Sources

BNDES and Finnvera are fully signed and committed, IDB is approved by their board

HISTOGRAM
8466
6560
5542

Majority of
Workers

4471

3371

are from Parana


State

2572

are from 3 closest


municipalities

jun2014

jul2014

aug2014

sep2014

oct2014

dec2014

PULP MARKET

PULP MARKET
2014

164 virgin
112

mm t fiber pulp

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

PUMA:

th
6

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
17.5

eucalyptus

52.6 market
pulp

th
4

LARGETS 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
6,4

170
110

fibra longa

fluff and
SBSK

100
SBSK = pinus long fiber from USA

Fonte: Hawkins Wright

FOCUS ON CONSUMER MARKETS


Sophistication and
innovation in higher value
added products

MARKET PENETRATION IN
DISPOSABLE DIAPERS
2013

USA

96%
high potential of
growth
BRA

50%

ARG

72%
Source: RISI, Euromonitor

GLOBAL CASH COST (SHORT FIBER)

600

500

400

PUMA
5

300

10
15
20
annual capacity (millions of tonnes)

CIF: COST, INSURANCE AND FREIGHT INCLUDED

25

CIF Europe cash cost (US$/tonne)

700

Institutional presentation January 2015

Capex
R$ MILLION

2011

2012

2013

2014E

2015E

MAINTENANCE

296

390

369

331

380

SPECIAL PROJECTS AND


EXPANSION

159

264

431

531

300

VALE DO CORISCO

428

99

2,473

3,400

883

654

899

3,335

4,080

PUMA PROJECT

TOTAL

22