D E C E M B E R , S A O P A U L O PIMEC

Transcription

1 D E C E M B E R , S A O P A U L O PIMEC

2 D E C E M B E R , S A O P A U L O KLBN11 / KLBAY FABIO SCHVARTSMAN C H I E F E X E C U T I V E O F F I C E R

3 D E Z E M B R O , S A O P A U L O KLBN11 / KLBAY AGENDA OVERVIEW AND STRATEGY FABIO SCHVARTSMAN PULP COMMERCIAL OPERATION: FOCUS IN FLUFF PULP JOSÉ SOARES CONVERSION: CORRUGATED BOXES AND INDUSTRIAL BAGS CRISTIANO TEIXEIRA QUESTIONS

4 STRUCTURAL COMPETIVENESS High Productivity on Fibers Pine Forest Productivity m³/ha/year Eucalyptus Forest Productivity m³/ha/year PLANTED AREA 230 TSD HECTARES of high yield forest LOW AVERAGE HAULING DISTANCE PR with PUMA 66 Km SC 74 Km Pine Mean Annual Increment (IMA) m³/ha/year Eucalyptus Mean Annual Increment (IMA) m³/ha/year < < Source: Ibá e Klabin

5 LEADER IN ALL SEGMENTS IN BRAZIL Flexible product line and diversified markets KRAFTLINER CORRUGATED BOXES INSTALLED CAPACITY* *Market Share 40% Market Share 18% INSTALLED CAPACITY Limited 400 tsd tonnes/year COATED BOARDS INDUSTRIAL BAGS INSTALLED CAPACITY Market Share 50% Market Share 50% 1,1 million tonnes/year SALES VOLUME DESTINATION PAPER AND PACKAGING 67% FOOD Construção INSTALLED CAPACITY Limited 400 tsd tonnes/year

6 KLABIN Growth strategy APIMEC ,5 Million tonnes per year 1,7 Million tonnes per year 1,8 Million tonnes per year 2,0 Million tonnes per year * Except wood sales

7 KLABIN Growth strategy KLABIN TODAY 3,5 Million tonnes per year 1,7 Million tonnes per year 1,8 Million tonnes per year 2,0 Million tonnes per year * Except wood sales

8 2017: FOCUS ON PERFORMANCE Operational efficiency and increased cash generation COST REDUCTION Falconi / Papers mills Corporate G&A expenses reduction PUMA Unit ramp up HIGH RETURN PROJECTS Angatuba s boiler Industrial Bags Line New printing machines Forest area: reprimarization and maintenance workshop Turbine system FLEXIBILITY AND RESILIENT MARKETS Fluff on domestic market Conversion / Hevi e Embalplan EXPECTED CAPEX: R$ 291 million EXPECTED ANNUAL RETURN : R$ 108 million *after ramp up

9 Market A Market B Market C PAPER MARKETS Focus in growing markets PAPER MARKETS DEMAND ( ) 4% 3% Demand growth per year Fluff Klabin Fluff Tissue Klabin Pulp Containerboards Klabin kraftliner and recycled paper Coated boards Klabin coated boards 2% 1% 0% Market D Market E Sackpaper Klabin sack kraft and industrial bags -1% -2% -3% -4% KLABIN MARKETS 0% 20% 40% 60% 80% 100% Source: POYRY Share of consumption in 2014

10 KLABIN Consistence growth INTEGRATION PUMA RAMP UP CASH COST REDUCTION HIGH RETURN PROJECTS CASH COST REDUCTION HIGH RETURN PROJECTS PAPER CAPACITY DEBOTTLENECKING NEW GROWTH CYCLE PUMA EVOLUTION GROWTH IN PULP 2, sep11 OPERATIONAL IMPROVEMENT 1,286 sep12 1,504 sep13 1,652 sep14 Adjusted EBITDA UDM R$ million 1,881 sep15 sep16

11 D E C E M B E R , S A O P A U L O JOSÉ SOARES PULP COMMERCIAL DIRECTOR

12 P U M A U N I T

13 MARKET PULP In mm tonnes Virgin fiber pulp MARKET PULP DISTRIBUTION 105 mm tonnes 63 mm tonnes 44% 36% Long Fiber Eucalyptus Integrated Pulp Source: Hawkins Wright ago-16; RISI market pulp 20% Other short fibers

14 DEMAND BY REGION SHORT FIBER Market Pulp million tonnes 0,1% 10,3 1,2% 10,4 10,9 9,2 6,2% 9,9 12,5 3,4 3,2 3, e 2020e e 2020e e China China EXPECTED GROWTH OF 1.2 MILLION TONNES PER YEAR 2020e 3,7% 2,7% 4,7 5,0 5,7 2,2 2,2 2, e 2020e e 2020e Asia (ex China) + Africa + Oceania Source: Hawkins Wright ago-16; RISI

15 DEMAND BY REGION LONG FIBER Market Pulp million tonnes 0,0% -0,1% 7,2 7,2 7,1 7,3 3,7% 7,6 8,8 4,2 4,2 4, e 2020e e 2020e e 2020e China EXPECTED GROWTH OF 300 THOUSAND TONNES PER China YEAR 0,8% 0,4% 4,4 4,4 4,6 1,2 1,2 1, e 2020e e 2020e Asia (ex China) + Africa + Oceania Source: Hawkins Wright ago-16; RISI

16 DEMAND BY REGION FLUFF Market Pulp million tonnes 1,0% 1,3% ,7% e 2020e e 2020e e 2020e China EXPECTED GROWTH OF 200 THOUSAND TONNES PER YEAR China 3,5% ,0% Segments 38 % Diapers 26% Incontinen ce e 2020e e 2020e Asia (ex China) + Africa + Oceania 12% Others 24% Tampons Source: Hawkins Wright ago-16; RISI

17 KLABIN 4th BIGGEST IN FLUFF Market FLUFF million tonnes GLOBAL CAPACITY OF FLUFF Thousand tonnes per year in 2016 GLOBAL DEMAND Million tonnes per year in 2015 IP+WY G-P ,3 Domtar Klabin StoraEnso THE ONLY MILL DESIGNED FOR FLUFF PRODUCTION Long Fiber 5,8 Fluff WestRock Resolute Arauco AVERAGE CASH COST of producers EX KLABIN of FLUFF USD 433/ton Source: Hawkins Wright (jul/16); Fisher

18 INFANT DIAPERS MARKET Global and Brazilian Market growth BRAZIL R$ billion EUROPE and EUA 1200 Diapers used by baby per year WORLD US$ billion ,8% +7,8% e e BRAZIL 553 Diapers used by baby per year ,2% +7,6% e e Source: Euromonitor China consumption of 376 by baby per year

19 INCONTINENCE DIAPERS MARKET Global and Brazilian Market growth BRAZIL R$ billion million of elders WORLD US$ billion +9,5% ,9% million of elders e 2020e e 2020e Source: Euromonitor / ONU

20 KLABIN MARKETS FOCUS ON FLUFF IN BRAZIL Sales strategy 26 85% thousand tonnes were sold until September Of the market approved the Klabin fluff pulp 50% market share expected for Costumers distribution

21 THE QUALITY OF PINEFLUFF COMPARING WITH OTHERS PLAYERS Density of FLUFF pulp (g/cm 3 ) Fine Content (%) 0,59 0,63 0,64 0,60 0,62 0,60 0,64 0,64 2,70 3,60 3,30 3,70 3,40 3,00 3,00 3,20 PineFluff A B C D E F G PineFluff A B C D E F G Grinding Energy (kwh/t) Resistance to Overflow (Mullen) (kpa) 25,60 30,80 28,10 31,50 34,80 25,50 27,10 28, PineFluff A B C D E F G PineFluff A B C D E F G

22 KLABIN MARKET Sales Strategy SHORT FIBER LONG FIBER 2Q16 AND 3Q16, 383 THOUSAND TONNES SOLD 330 THOUSAND TONNES SOLD TO FIBRIA 45 THOUSAND TONNES SOLD IN DOMESTIC MARKET 2T16 AND 3T16, 210 THOUSAND TONNES SOLD SHORT TERM: PULP SALES IN GLOBAL AND DOMESTIC MARKET LONG TERM: CONVERTION IN FLUFF SALES IN DOMESTIC MARKET

23 PUMA - COMPETITIVINESS Production Cash Cost Long fiber and short fiber 409 LONG FIBER SHORT FIBER PUMA 174 FOB MILL US$/TONNES 5 million tonnes 10 million tonnes 15 million tonnes 20 million tonnes 25 million tonnes 30 million tonnes ANNUAL CAPACITY source: Hawkins Wright july 2016

24 D E C E M B E R , S Ã O P A U L O KLBN11 / KLBAY CRISTIANO TEIXEIRA EXECUTIVE OFFICER

25 * Installed capacity INTEGRATED MODEL: CONVERSION Diversified and flexible FIBERS CONVERSION 920k tpy Planted Forests PAPERS Market Pulp Coated boards Pine Eucalyptus Integrated Pulp Kraftliner Corrugated boxes 750k tpy Industrial bags 170k tpy Recycled

26 KRAFTLINER

27 Productive units CONTAINERBOARD MARKET: GLOBAL Competitiveness in Kraftliner Klabin Papers 57% Integration 29% Exports Kraftliner global cash cost USD/tonnes 14% Domestic Market Average US$377/tonnes Source: Fisher Klabin MA / OC Cash cost 30% less than the global average

28 CONTAINERBOARD MARKET: BRAZIL Total Capacity ,1 mm tonnes 4,5 4,1 Biggest Players (tsd tonnes) Kraftliner 2,0 1,6 Kraftliner Recycled paper Klabin 819 Smurfit 276 WestRock 435 Fernandez 235 Recycled paper 2,5 2,5 0,4 IP 183 Klabin 235 Production Domestic Market Exports Source: Risi Capacity Report 2016

29 CORRUGATED BOXES

30 GLOBA CONSUMPTION OF CORRUGATED BOXES Global per capita consumption of corrugated boxes (m 2 /hab/year) Source: International Corrugated Case Association - ICCA 2015

31 CORRUGATED BOXES: BRAZIL Shipments - Klabin vs Brasil Klabin Brazilian shipments PIB jan-15 apr - 15 jul-15 oct - 15 jan-16 abr-16 sep-16 jul-16 Horticulture Exports growth of 7% p.y. in the last 3 years Animal Protein Growth of poultry of 14% p.y. in the last 3 years and exports of protein of 5% p.y.

32 KLABIN MARKETS BIG CLIENTS Differentiated in fibers, quality and service SERVICES PROVIDED PACKAGING ENGINEERING PACKAGING SYSTEMS TECHNICAL SUPPORT

33 KLABIN DIFFERENTIALS Klabin national footprint to fulfill the costumer needs KLABIN - 10 UNITS MARKET SHARE 2015 WestRock 4 UNITS International Paper 4 UNITS 17% Irani Trombini Penha Adami 42% 6% 4% 4% 5% 6% 8% 7% Smurfit/INPA Outros Source: ABPO, Relatório Anual

34 CORRUGATED BOXES: BRAZIL Use of virgin and recycle fiber: FLEXIBILITY Mix of fibers to corrugated boxes Recycled Virgin Klabin 34% 66% OCC prices (R$/tonnes - FOB without taxes) Brazil 67% 33% jan-15 mai-15 set-15 jan-16 mai-16 set-16 Source: Anguti Large participation in the food market: RESILIENCE others HPPC chemist food Klabin

35 KLABIN MANAUS - AM Acquisition rationale 20k tonnes/year Curling Total Capacity Benefits of the presence in Manaus: Segments (% 2015) 68% Electronics 25% Boards 1% Plastic products 2% Metallurgy 5% Others Synergies with recycled paper factory of Goiana National footprint New markets

36 KLABIN RIO NEGRO PR Acquisition rationale 50k tonnes/year Curling Total Capacity Benefits of the presence in Paraná: Segments (% 2015) Synergies with Monte Alegre 25% 41% Perfumery Furniture and Cosmetics Optimization of units distribution of São Paulo and Santa Catarina to Paraná 8% Clothing 11% Food Products 4% Vestuário 4% Metallurgy 9% Plastic Products 10% Others

37 CORRUGATED BOXES New opportunities Display: costumed for wholesales E-commerce market: 3% of retail sales in Brazil in 2015 and 8% in the USA. Total orders in the e-commerce (millions) Source: Webshoppers e Sociedade Brasileira de Varejo e Consumo

38 INDUSTRIAL BAGS

39 mills INDUSTRIAL BAGS Paper for industrial bags (Sack Kraft) Paper for sacks Global production of papers (2015) 7,2 million tonnes Sack Kraft Global Cash cost USD/tonnes Klabin Lowest production cost of paper Source: Fisher 4Q15. Incluiding Bag and Sack, Extensible Paper, Extensible Sack.

40 INDUSTRIAL BAGS Klabin presence Industrial sacks Klabin is the 2th biggest industrial bags producer of the world Lages Mill Is the biggest of the world Industrial bags are made of long and virgin fiber (pine) Mondi Klabin Segezha Hood CMPC Coveris Flexible Iguaçu Celulose Gascogne Smurfit Kappa Cemex Global market 12 bi units (2014) 1,2 bi of capacity Source: Fisher 4Q15. Including Bag and Sack, Extensible Paper, Extensible Sack.

41 INDUSTRIAL BAGS Industrial bags sales strategy 12% Sales % participation 12% 21% Exports Globalization Strengthening the supply of special bags: miscellaneous Differentiated service Klabin s presence 88% 88% 79% Domestic expected

42 Source: IBGE, SNIC (*prévia) e MCC- Civil constrution monitor, Klabin volume of bags for civil construction SALES OF CONSTRUCTION MATERIALS (IBGE) X KLABIN BAGS FOR CIVIL CONSTRUCTION (jan/2014 = 100 No seasonal adjustment) Klabin SNIC jan-14 apr-14 jul-14 sep-14 jan-15 apr-15 jul-15 sep-15 jan-16 apr-16 jul-16 sep-16 15,7% 16vs15 Jan-Sep Production of cement IBGE 15,3% 16vs15 Jan-Sep fabricação de artefatos de concreto, cimento, fibrocimento, gesso IBGE 63% 16vs15 Jan-Sep Klabin sales (thousands of bags) to the international market

43 INDUSTRIAL BAGS New products - Opportunities Coffee Largest coffee growers (em mi de sacas 60kg) Brasil Vietnã Colômbia Mercado Consumo mundial de café foi 2,2% superior ao volume produzido em 2015 Pet Food Market growth in 2015 (in billing $) 10% p.y. 4% p.y. Fertilizers Brazilian market 30 million tonnes Flours/Bran Industrial grinding Flour and brain of wheat National Production 30% CAGR +1% Imports 70% Source: INDEX Mundi, Euromonitor, ANDA, ABITRIGO

44 D E C E M B E R , S Ã O P A U L O KLBN11 / KLBAY THANK YOU! INVESTOR RELATIONS invest@klabin.com.br