Professional Documents
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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.
PUMA PROJECT
Competitive forest
Fluff market
FSC
Energy generation
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FOREST OVERVIEW
A singular forest base located in one the most prolific regions of the world
107,000 hectares planted with pine and eucalyptus Paran region has one of the highest forest yields in the world ~ 32% above Brazilian average
FSC certified
Productivity m3/(ha*year)
Hardwood
Brazil Africa Chile Iberian Scandinavia Klabin 4
Softwood
LOGISTICS OVERVIEW
Puma will operate with low logistics costs Railroad logistics based on already existing rail infrastructure from America Latina Logistica (ALL)
Location
Terminal at the Port of Paranagu A dedicated warehouse will be built Paranagu port supports large vessels
Hardwood
Global demand should keep growing at healthy levels in the next years Asia should be the driver for this growth Main markets: tissue and specialties
Softwood
Most of the softwood used in the domestic market comes from imports which are less competitive Main markets: packaging and tissue
Fluff
Global and local demand for fluff should grow substantially Focus in the local market: huge opportunity Main markets: hygiene products
+3% 28 3 9 2 8 6 2010
North America Europe Latin America
23 3 9 3 6 2005
33 3 9 3 11 7 2015
China Others
2010
2015
(mm tonnes)
Domestic sale
Imports
Market Pulp
2011
2015
SCHEDULE
2013 Feb
Since the beggining of 2013, Project Puma already presented a relevant progress
Paranas Government infrastructure protocol Commercial structure and negotiations with suppliers
Approval / Announcement
Start up
CAPITAL EXPENDITURE
The industrial capex of Project Puma is estimated at R$5.3 bn and will be funded both in debt and equity
Note: 1 Does not include the forests, working capital, infra structure and taxes
NEW PROPOSAL
Step 1:
Considerable upgrade in terms of corporate governance: Right of public offering of shares at economic value; Arbitrage; Tag along: 100%; Preferred shareholders have the right to vote in key corporate events (e.g.: change in the corporate purpose, merger, related party transactions)
Migration to Level 2
Step 2:
Step 3:
Follow on
100% primary offering in order to raise R$1.7 billion Proceeds will be used to fund the equity portion required by Project Puma
Equalization of dividends Premium to controlling shareholders: 15% Dilution of preferred and common minority shareholders: 3%
This proposal must be approved by the common minority and preferred shareholders
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New proposal will be extremely benefical to the Company and its Shareholders
Brings significant operational gains and synergies throughout the whole production chain Increases shares liquidity Expands the shareholders base Improves corporate governance
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