KPresentation2002 Ing

8/6/2019 KPresentation2002 Ing

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Results

2002March, 2003

So Paulo


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Highlights 2002

Company Profile

Business Strategy

Results 2002

Outlook 2003

Agenda


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Sales Volume 1,863 thousand tons

Gross Revenue R$ 3.2 billion

Net Revenue R$ 2.8 billion

Exported Volume 764 thousand tons

Export Revenue US$ 372 million

Groos Profit R$ 1.3 billion

Gross margin 45%

Net Loss R$ 208 million

Highlights 2002


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EBITDA R$ 979 million

EBITDA Margin 35%

Gross Debt R$ 2.9 billion

Local Currency 66%

Foreign Currency 34%

Net Debt / EBITDA 2.9 times

Capex R$ 193 million

Highlights 2002


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104 year history in Brazil

Leadership in the pulp and paper industry

Integrated and self sufficient in wood

Low cost producer

Business segments:

Forestry

Packaging

Pulp

Tissue

Diversified export sales

Strong cash generation

Headcount: 16,541 (9,294 employees, 7,247 third parties)

Company Profile


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BrazilianInvestors

20.5%

Shareholder Strucuture

12/31/02

Klabin Irmos59.5%

Monteiro Aranha20.0%

Common Preferred

BNDESPAR

31.6%

Foreign

Investors

19.5%

BrazilianInvestors

48.9%

Local Share Price (KLBN4)

Book Value

Free Float

Daily Traded Volume

R$ 1.03

R$ 1.18

68%

R$ 400 K

Shares Outstanding 600,856 KCommon 317,049,392

Preferred 601,750,949

Total 918,800,341

Traded at BOVESPA and

ADR Levell I (OTC)


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K labin S.A.

KlabinArgentina

KlabinBacell

NorskeSkog

Klabin

KlabinKimberly

KCKTissue

(Argentina)

82% 50%100% 50%50%

Corporate Structure


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FForestryorestry

PulpPulpCamaariGuaba

- BA- RS

PapePaperr

Monte AlegreAngatubaOtaclio CostaCorreia PintoGuaba

- PR- SP- SC- SC- RS

TissueTissue

BrazilSanto AmaroMogi das CruzesCruzeiroCorreira Pinto

Argentina

Bernal

- BA- SP- SP- SC

Rio Grande do SulSanta CatarinaParanSo PauloBahia

- RS- SC- PR- SP- BA

NewsprintNewsprint

MultiwallMultiwall BagsBags

Monte Alegre - PR

PackagingPackaging

CCorrugatedorrugated BoxesBoxes

GoianaFeira de SantanaBetimDel CastilhoGuapimirimJundia (2)ItaquaquecetubaPiracicabaItajaSo LeopoldoPonte Nova

- PE- BA- MG- RJ- RJ- SP- SP- SP- SC- RS- MG

BrazilCorreia PintoLages (2)

ArgentinaPilar

- SC- SC

Broad Geographic Coverage

27 Industrial Sites

RS

SC

PR

SP

MG

RJ

BA

PE


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Production and Converting CapacitiesThousand tons / year

155155180180

6906901.000

115

555 1,650

1,6701,670

1,6901,690

40

Dissolving

Softwood

(Pinus)

Hardwood

(Eucaliptus)

Printing / Writing

Packaging

april03 onwards

300

Recicled

120

Total capacity: 2 million tons / year of productsTotal capacity: 2 million tons / year of products

PaperPulp CorrugatedBoxes

Tissue Multiwall

Bags


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1

Forestry Assets1,000 hectares

Native

Preserved

Forests

Bahia 15 0 0 0 4 81

So Paulo 4 2 0 2 2 108

Paran (1) 229 31 86 118 85 32

Santa Catarina 118 4 67 70 32 60

Rio Grande do Sul (1) 56 40 0 40 12 83

TOTAL 422 77 153 231 136

Average

Distance

(Km)

Site LocationCompany

LandsEucalyptus

TOTALPlantations

Pinus/

Araucaria

(1) Forests are certified by the Forest Stewardship Council (FSC)

12/31/02 Position


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1

Business SegmentsConsolidated 100%

Klabin

Forestry TissuePulp

Newsprint

(*)Paper

Corrugated

Boxes

Multiwall

Bags

PackagingPackaging

Volume

Revenue

EBITDA

6%

14%

18%

14%

21%

68%

60%

62%

8%

16%

3%

6%

4%

0%

(*) Joint ventureto be terminated in March, 2003

S l V l 1 000 t


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1

Sales Volume 1,000 ton

1998 1999 2000 2001 2002

Newsprint 112 88 110 92 106

Printing and Writing 45 49 41 33 26

Packaging Paper 248 289 352 552 617

Tissue 141 133 144 138 154

Market Pulp 265 274 236 236 218

Dissolving Pulp 105 104 99 105 110

Corrugated Boxes 282 307 373 510 493

Bags/Envelopes 99 101 108 116 116

Others 19 11 12 7 22

Tot al 1,316 1,355 1,475 1,788 1,863

N R


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1

Net RevenueConsolidated

R$ Million

1,106

1,482

1,884

2,434

2,814

500

1,000

1,500

2,000

2,500

3,000

1998 1999 2000 2001 2002

C.A.G.R. = 26%

N t R


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1

Net Revenue

Consolidated

772

899

585558

676

588567(*)536

572

472433

408444

387337

314

200

300

400

500

600

700

800

900

1,000

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02

R$ Million

C.A.G.R. = 32%

(*) Excluding the effect of the forestry sale of Klabin Riocell in 2Q01

S l b M k


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1

Sales by MarketConsolidated 100%

ExportsDomestic Market

Sales Volume

62% 59%

38% 41%

2001 2002

Net Revenue

68% 64%

32% 36%

2001 2002


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Exports


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1

425472 496

690764

0

200

400

600

800

1,000

1998 1999 2000 2001 2002

Exports

Volume

1,000 tonC.A.G.R. = 16%

Exports


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1

104

127 119 122

104

119 121

151 149

181169

192179 172

206 207

70

120

170

220

1T99

2T99

3T99

4T99

1T00

2T00

3T00

4T00

1T01

2T01

3T01

4T01

1T02

2T02

3T02

4T02

TOTAL Average

Exports

Volume

118 124

173

191

40%

11%

1,000 ton

Exports


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1

242 267

340 356372

150

250

350

450

1998 1999 2000 2001 2002

ExportsRevenue

US$ MillionC.A.G.R. = 11%

Exports by Region - Jan / Dec 2002


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2

Exports by Region - Jan / Dec 2002Consolidated 100%

Volume

North

America7%

Europe39%

Argentina11%Asia

30%

Africa5%

Latina America

excluding Argentina8%

Net Revenue

NorthAmerica

10%

Europe35%

Argentina13%Asia

27%

Africa7%

Latin America

excluding Argentina8%

Cash Generation


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2

Cash GenerationConsolidated

EBITDAR$ Million

EBITDAmargin

181

457

632729

979

35

3034

31

16

0

200

400

600

800

1000

1998 1999 2000 2001 2002

10%

15%

20%

25%

30%

35%

40%

C.A.G.R. = 53%

Cash Generation


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2

Cash GenerationConsolidated

EBITDAR$ Million

EBITDAmargin

97 106115 138 144 145

164 178 178205

181 169

262

366

163(**)

183

(*)

41

33

24

3532

33

31

3533

35

31303231

29 34

0

50

100

150

200

250

300

350

400

1Q99

2Q99

3Q99

4Q99

1Q00

2Q00

3Q00

4Q00

1Q01

2Q01

3Q01

4Q01

1Q02

2Q02

3Q02

4Q02

0%

10%

20%

30%

40%

50%

60%

(*) Excluding the effect of the forestry sale of Klabin Riocell in 2Q01

(**) Including non recurring items totaling R$ 41 million in the EBITDA of 4Q01

EBITDA


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2

EBITDAConsolidated

(*) Packaging includes: packaging paper,

corrugated boxes and multiwall bags (Brazil)

2002 R$ Million

Packaging 680

Forestry 155Market Pulp 179

Dissolving Pulp 49

Tissue Brazil 12

Tissue Argentina 3

Bags Argentina 6

Newsprint 0

Corporate Expenses / Intercompany (104)

Total 979

Income Statement


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2

Income StatementConsolidated

(*) Consolidated Pro Forma

R$ Million 1998 1999 2000 2001 (*) 2002 4Q02

Volume - 1,000 ton 1,316 1,355 1,475 1,788 1,863 491

Net Revenue 1,106 1,482 1,884 2,434 2,814 899

Gross Profit 291 596 819 982 1,265 450

Gross Margin 26% 40% 43% 40% 45% 50%

Total Operating Expenses (258) (284) (357) (505) (614) (171)

Operating Profit (before fin. Results) 33 312 462 477 651 279

Net Financial Expenses (157) (457) (352) (678) (967) 8

Net Income (Loss) 34 (117) 14 (170) (208) 401

Financial Highlights


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2

Financial HighlightsConsolidated

(*) Consolidado Pro Forma

R$ Million 1998 1999 2000 2001 (*) 2002

EBITDA 181 457 632 729 979

EBITDA Margin 16% 31% 34% 30% 35%

EBIT 33 312 462 477 651

EBIT Margin 3% 21% 25% 20% 23%

Total Assets 2,779 3,189 4,357 4,435 4,746

Net Debt 1,018 1,354 2,475 2,458 2,821

Equity 1,185 1,017 1,228 1,288 1,084

Minority Interest 224 238 59 58 62

Total Capitalization 2,427 2,609 3,762 3,804 3,966

Net Debt / Capitalization 42% 52% 66% 65% 71%

Net Debt / EBITDA (*)


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2

Net Debt / EBITDA ( )Consolidated

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02

3.3x

3.0x

3.2x3.0x

2.3x2.4x 2.3x

3.3x3.4x

x = Times

3.3x3.4x 3.4 x 3.4x

3.7x

4.2x

(1)

2.9 x

(*) Annualized(1) Including non recurring items totaling R$ 41 million in the EBITDA of 4Q01

Debt Maturity Schedule


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2

ebt atu ty Sc edu eConsolidated - 12/31/02

303

122216

79183

112

62

525

77

62

681

20965

247

0

100

200

300

400

500

600

700

800

1Q03 2Q03 3Q03 4Q03 1H04 2H04 2005 2006

onwards

Local Currency (66%) Foreign Currency (34%)

R$ 2,941 Million / Average Tenor: 17 monthsR$ MillionST: 55% LT: 45%

550

209174187

277

681604

260

Debt Maturity Schedule Foreign Currency


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2

37 28 29 20

48

2112

23

1

147

48

0

20

40

60

80

100

1Q03 2Q03 3Q03 4Q03 1H04 2H04 2005

onwards

Trade Finance Eurobonds Others

y g yConsolidated - 12/31/02

US$ Million

Total US$ 287 MillionAverage Tenor: 8 monthsAverage Cost: 6.5% per year

12

44

86

3443

20

48

Debt Restructuring


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Consolidated

30 Sep'02 31 Dec'02

34%

66%

67%

33%

Local Currency Foreign Currency

Total Debt

Hedge Strategy


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3

Hedge Trade FinanceEurobonds/Others

300

92

458

195

0

200

400

600

800

Dec'01 Dec'02

758

287

US$ Million

238 177

Debt Maturity Schedule Local Currency


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3

Consolidated - 12/31/02

R$ Million

45 41 39 34 65 62115

208

192

472

564

19

122224

0

100

200

300

400

500

600

700

1Q03 2Q03 3Q03 4Q03 1H04 2H04 2005 2006

onwards

BNDES Debentures Others

Total R$ 1,926 MillionAverage Tenor: 21 monthsAverage Cost: 24.8% per year

209

681

7765 6162

247

525

11

Capex


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3

without acquisitions

94 86

151

247

101

45 52

63

114

92250

0

100

200

300

400

1998 1999 2000 2001 2002 2003

Expansion Projects Maintenance

139 138

214193

361

R$ Million

Budget

Outlook 2003


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3

Operational efficiency.

Steady growth in cash generation

Increase in exports

Stringent Capex control

Asset divestitures

Net debt reduction

Preparation of the new development plan

Investor Relations


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3

Tel.: (55 11) 3225-4045

(55 11) 3225-4046

Fax.: (55 11) 3225-4241

[email protected]

www.klabin.com.br

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