Klabin reports net income of R$ 226 million in 3Q10 and R$ 335 million in 9M10
As of this quarter, Klabins consolidated financial statements will be reported in accordance with International Financial Reporting Standards (IFRS), as determined by Instructions 457/07 and 485/10 issued by the Securities and Exchange Commission of Brazil (CVM). Data for prior periods were adjusted for comparison purposes. The main impacts are related to biological assets and the useful life of assets. The following table presents selected indicators before and after these adjustments.
R$ million Sales volume - 1,000 t
% Exports
3Q10 436
29%
2Q10 430
30%
3Q09 402
35%
3Q10/2Q10
3Q10/3Q09
9M10 1,299
32%
9M09 1,109
37%
9M10/9M09
1%
- 1 p.p.
8%
- 6 p.p.
17%
- 5 p.p.
Net revenue
% Exports
983
21%
905
21%
750
21%
9%
- 0 p.p.
31%
- 0 p.p.
2,732
22%
2,155
25%
27%
- 3 p.p.
Change in fair value - biological assets EBIT before adjusts EBIT after adjusts EBITDA
EBITDA Margin
16 87 (0) 199
27%
47 200 7 528
25%
Net Income before adjusts Net Income after adjusts Net Debt
Net Debt / EBITDA (LTM)
49 67 2,462
2.8 x
2% 80% -27%
-41%
Capex
LTM - last twelve months N/A - Non applicable
109
93
61
17%
80%
248
212
17%
Note: Due to rounding, some figures in tables and graphs may be slightly imprecise.
3Q10 Highlights
Investor Relations:
Sales volume: record of 436 thousand tonnes; Net revenue: record of R$ 983 million; Financial investments: R$ 2.7 billion, 3.9x the amount of short-term debt; EBITDA: R$ 252 million, this year's highest quarterly result; Net debt/EBITDA ratio: 2.2x, versus 3.6x in December 2009 and 5.3x in March 2009; Book value per share: R$ 5.25 after adjustments. Prior to adjustments, book value per share was R$ 2.76.
Antonio Sergio Alfano Luiz Marciano Vinicius Campos Daniel Rosolen Lucia Reis
Conference Call: Friday, Nov. 12, 2010 9:00 a.m. (EST) Dial-in: 1-888-700-0802 Brazilian participants: (55 11) 4688-6331 Code: Klabin Replay: (55 11) 4688 6312 Code: 47720
9M10 Highlights
Sales volume: 1,299 thousand tonnes, up 17% from 9M09; Net revenue: R$ 2,732 million, growing 27% in relation to 9M09; EBITDA: R$ 730 million, up 38% from 9M09, for EBITDA margin of 27%; Net debt reduction of R$570 million from December 2009.
Change in fair value of biological assets Depletion of biological assets / inventories at fair value Fixed assets useful life revaluation Diferred income and social contribution taxes Net income after IFRS adjustments
Notes:
(1) Recognized as revenue; (2) Recognized in COGS (3) Recognized in income and social contribution taxes expenses
Fair value of biological assets: the Companys biological assets encompass the cultivation and planting of pine and eucalyptus forests in order to supply wood pulp for paper production, as well as the sale for sawmills. Previously classified under Property, plant and equipment, these assets were allocated to a specific group of non-current asset called biological assets, and now they are recognized by their fair value, instead of only being recognized at the historical cost according to previous accounting standard. The adoption of fair value of biological assets increased the value of forests in the Company from R$ 860 million, to R$ 2.5 billion in September'10. The net effects of the adoption are held in the Companys shareholders equity as unrealized profit reserve, and carrying them to retained earnings after their actual realization, to occur via depletion. The variation in the fair value of biological assets is mainly composed by the growth of planted areas and changes in the timber market price. In the 9M09, among the factors which resulted in a decrease of biological assets balance, we point out a 7% drop in the eucalyptus and pine prices on the market, besides a 5% reduction of planted areas. In 2010, prices recovered, showing a tendency of returning to the historical levels.
Depletion of biological assets and inventories at fair value: likewise, the depletion of biological assets upon harvesting was calculated based on the fair value determined for the forests on that date. Deemed Cost: in the first-time adoption of the deemed cost, the Company decided to assign cost to certain classes of property. Thus, lands were valued at its market price. The market value of the lands of the Company was determined based on an evaluation report issued by a specialized company, and approved by the Board. The value of land increased from R$ 262 million to R$ 1,954 million in September, 2010. The net effect of the adoption is also maintained in the Companys shareholders equity. Revaluation of the machinery and equipments useful lives: the equipments now are depreciated based on their economic useful lives. By the end of 2009, the Company evaluated the useful life of its machinery and equipment, defining new depreciation rates applicable to 2010. Deferred income and social contribution taxes: it refers to the deferred income and social contribution taxes, calculated over the adjustments already mentioned.
The foreign exchange rate (sell, end of period), which closed at R$1.80/US$ on June 30, 2010, depreciated by 6% in the quarter to reach R$ 1.69/US$ at the end of September 2010. In comparison with December 31, 2009 and September 30, 2009, the dollar depreciated by 3% and 5%, respectively. The average exchange rate in 3Q10 was R$ 1.75/US$, down 6% and 2% from 3Q09 and 3Q09, respectively. In the first nine months of the year, the average exchange rate was R$ 1.78/US$, for depreciation of 14% from 9M09.
3Q10/2Q10
3Q10/3Q09
3Q10/4Q09
9M10/9M09
-2% -6%
-6% -5%
1% -3%
-14% -5%
Kraftliner 22%
436
29% 71%
430
30% 70%
402
35% 65%
68% 63%
3Q10
2Q10
3Q09
9M10
9M09
Domestic Market
Export Market
Net revenue
Net revenue, including wood, totaled R$ 983 million in 3Q10, growing by 31% and 9% from 3Q09 and 2Q10, respectively. In 9M10, net revenue came to R$ 2,732 million, up 27% from 9M09. Domestic net revenue stood at R$ 779 million, growing by 31% and 9% from 3Q09 and 2Q10, respectively. In the first nine months of 2010, net revenue from domestic sales came to R$ 2,120 million, up 31% from the same period in 2009. Domestic revenue accounted for 78% of the total, up from 75% in 2009. Net revenue from exports totaled R$ 204 million in 3Q10, growing by 30% and 6% from 3Q09 and 2Q10, respectively. In 9M10, net revenue from exports totaled R$ 612 million, up 14% from 9M09.
2.155
25%
Ind bags 13%
983
79%
905
79%
750
79%
78% 75%
Kraftliner 13%
3Q10
2Q10
3Q09
9M10
9M09
includes wood
Domestic Market
Export Market
Export destinations
The weakening of the European market led to changes in the Companys export mix. The products sold to Europe in 2009 have been redirected to the domestic market and stronger markets that present higher demand. In 3Q10, exports to Latin America continued to gain share in the companys sales mix due to the region's robust economic growth. Similarly, the volume of exports to Asia has grown due to the higher sales of liquid packaging board to China, Singapore and Pakistan. In 9M10, the volume sold to Latin America accounted for 44% of total export volume, in comparison with 37% in 2009. Meanwhile, the share of Klabins exports to the European market decreased from 30% in 9M09 to 17% in 9M10. Today Asia is the companys second-largest market, accounting for 28% of sales volume in the year through September.
North Americ a 7%
Europe 17%
Asia 19%
Europe 16%
Asia 17%
Operating Income
Cost of goods sold after adjustments totaled R$ 767 million in 3Q10, up 19% and 7% from the adjusted figures for 3Q09 and 2Q10, respectively. The increase in relation to the previous year reflects the higher sales volume and cost pressures. The increase in COGS in relation to 2Q10 is explained by the maintenance stoppage at the Otaclio Costa plant, the balance of the Monte Alegre stoppage, higher wood purchases, higher labor expenses and higher consumption of electricity, fuel oil, fibers and old corrugated container (o.c.c.).
In 9M10, COGS amounted to R$ 2,150 million, up 18% from the same period in 2009, due to the higher sales volume. In 9M10, unit COGS was 1% higher than in 9M09.
Unit cash cost in 9M10 was R$ 1,538/t, an increase of 3% from the same period the previous year. Selling expenses in the quarter were R$ 77 million, up 7% and 6% from 3Q09 and 2Q10, respectively. In 9M10, these expenses totaled R$ 223 million, down 3% from 9M09. Freight expenses were R$ 47 million, accounting for 60% of total selling expenses in 3Q10.
General and administrative expenses totaled R$ 57 million in 3Q10, up 28% and 5% from 3Q09 and 2Q10, respectively. This increase in relation to 3Q09 is due to the expansion in the workforce and the provision for profit sharing. In 9M10, general and administrative expenses stood at R$ 158 million, 24% higher than in 9M09, due to the reasons already mentioned. Operating income before the financial result (EBIT) was R$ 203 million in the quarter, up 32% on 2Q10. In 9M10, EBIT totaled R$ 506 million, improving from the EBIT of R$ 8 million in 9M09, due to the reasons mentioned above.
EBITDA Composition - R$ million Operational result (after financial result) (+) Financial result (+) Depreciation (-) Biological assets adjust EBITDA EBITDA Margin
N / A - Not applicable
3Q10/2Q10 3Q10/3Q09
9M10/9M09
1,000 900 905 800 700 600 500 400 300 722 750 683 805 844 983
50%
40%
25%
27% 22%
27%
30%
20% 200 100 0 180 199 150 10% 219 242 236 252
1Q09
2Q09 EBITDA
3Q09
1Q10
2Q10
3Q10
EBITDA Margin
Debt
In the new accounting practices, the discount of receivables, previously recorded in current assets reducing the receivables account, was reclassified to the group of loans and financing due to their nature.
Gross debt stood at R$ 4,837 million on September 30, 2010, compared with R$ 4,728 million on December 31, 2009, of which 59% (or US$ 1,675 million) was denominated in foreign currency (primarily export pre-payment facilities). The average debt term stood at 40 months, or 34 months for debt denominated in local currency and 44 months for debt denominated in foreign currency. At end-September, short-term debt accounted for 14% of total debt. On September 30, cash and cash equivalents totaled R$2,731 million, which exceeds the amortizations coming due in the next 40 months.
Net debt stood at R$ 2,106 million on September 30, 2010, a decrease of R$ 570 million from the end of 2009.
09/30/10 695
329 366 14% 7% 8% 86% 35% 51% 100% 41% 59%
06/30/10 690
321 369 14% 7% 8% 86% 33% 53% 100% 39% 61%
12/31/09 802
492 310 17% 10% 7% 83% 36% 47% 100% 46% 54%
Long term
Local currency Foreign currency
4,142
1,671 2,471
4,142
1,580 2,562
3,926
1,683 2,243
Gross debt
Local currency total Foreign currency total
4,837
2,000 2,837
4,832
1,901 2,931
4,728
2,175 2,553
The net debt/EBITDA ratio fell from 3.6x in December 2009 to 2.2x in September 2010.
Net debt (R$ million)
7500 6500 4.4 5500 4500 3500 2500 1500 500 -500 Mar-09 Jun-09
Net Debt 3,786 3,192 2,886 2,676 2,528
5.3
3.7
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Net Income
Net income in 3Q10 was R$ 226 million, growing by 80% and 235% from 3Q09 and 2Q10, respectively. Net income in the first nine months came to R$ 335 million, compared with R$ 391 million in the same period of 2009.
Business Performance
FORESTRY
Klabin handled 2.6 million tonnes of pine and eucalyptus logs, woodchips and waste for energy generation in 3Q10, up 24% and 5% from 3Q09 and 2Q10, respectively. Of this amount, 1.8 million tonnes were transferred to the plants in the states of Paran, Santa Catarina and So Paulo. The volume of log sales to sawmills and planer mills totaled 817 thousand tonnes in the quarter, up 59% from 3Q09 and down 4% from 2Q10. In 9M10, wood sales volume totaled 2,352 thousand tonnes, increasing by 74% from the same period last year.
Sales volume (thousand tonnes) 2,352 Net revenue (R$ milhes)
1,355 854 513 72 69 42 3Q10 2Q10 3Q09 9M10 9M09 3Q10 2Q10 3Q09
194
817
115
9M10 9M09
Net revenue from log sales to third parties in 3Q10 was R$ 72 million, up 72% and 3% from 3Q09 and 2Q10, respectively. In 9M10, this net revenue came to R$ 194 million, 69% higher than in the same period of 2009. The slow economic recovery in the United States and the country's weak macroeconomic fundamentals have led the U.S. homebuilding industry to operate at levels below its historical average. According to the U.S. Census Bureau, the seasonally adjusted annualized rate of privatelyowned housing starts in the United States stood at 610 thousand units in September, for growth of 4% and 13% in relation to September 2009 and June 2010, respectively.
Housing starts thousand units
1,297 1,151 1,053 1,025 868 658 528 540 587 559 617 602 589
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
Quarter average
Housing starts
The company continued efforts to increase its wood sales, with better forestry management practices making higher yielding areas available for planting.
At the close of September, own and third-party planted areas totaled 208 thousand hectares, of which 138 thousand were planted with pine and 70 thousand hectares with eucalyptus trees, in addition to 192 thousand hectares of permanent preservation and legal reserve areas.
PAPERS
Sales volume of coated board and paper for packaging totaled 256 thousand tonnes in 3Q10, up 5% and 3% from 3Q09 and 2Q10, respectively. In 9M10, this sales volume totaled 778 thousand tonnes, up 18% from 9M09. Net revenue from board and paper totaled R$ 452 million in 3Q10, up 32% and 10% from 3Q09 and 2Q10, respectively. In 9M10, this net revenue was R$ 1,284 million, up 30% from 9M09. Exports of these products totaled 119 thousand tonnes in 3Q10, down 9% and 1% from 3Q09 and 2Q10, respectively. In 9M10, these exports totaled 396 thousand tonnes, up 4% from 9M09. Exports accounted for 51% of the units total sales volume in 9M10, down from 58% of total sales volume in 9M09.
Kraftliner
Kraftliner sales volume was 85 thousand tonnes in 3Q10, down 22% from 3Q09 and stable in comparison with 2Q10. The lower sales volume in relation to 3Q09 was due to the higher volume of transfers to Klabins corrugated board plants. In 9M10, kraftliner sales volume was 279 thousand tonnes, 2% lower than in 9M09. Kraftliner sales to the export market stood at 41 thousand tonnes in 3Q10, down 52% from 3Q09 and up 3% from 2Q10. In 9M10, kraftliner sales volume in the export market came to 162 thousand tonnes, down 31% from 9M09. In 2010, kraftliner exports accounted for 58% of the units total sales volume, while in 2009 exports accounted for 83% of sales volume. Kraftliner net revenue was R$ 122 million in 3Q10, up 27% and 17% from 3Q09 and 2Q10, respectively. In 9M10, net revenue was R$ 342 million, up 23% from 9M09.
279
284
342 279
58%
85
48%
85
47%
108
78%
83%
122
104
96
3Q10
2Q10
3Q09
9M10
9M09
3Q10
2Q10
3Q09
9M10 9M09
Domestic market
Export market
Kraftliner net revenue in the quarter confirms that the price increases announced in 2Q10 were effectively implemented. According to FOEX, the average list price of kraftliner brown of 175g/m in euros in 3Q10 increased by 11% in relation to the previous quarter. The chart below shows the evolution in kraftliner prices in both euros and reais.
10
10
1,393
1,356
1,344
529
524
516
501 487
385
404
433
478
533
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
3Q09
4Q09
1Q10
2Q10
3Q10
Quarter average
Kraftliner ( / tonne)
The domestic market remains pressured from high scrap costs, whose average price surpassed R$ 500/t in 3Q10. According to Bracelpa, the current level of scrap prices represents an increase of 102% from the same quarter last year.
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
Source: Bracelpa
Quarter average
Monthly volume
Coated Boards
The volume of coated boards sales in 3Q10, including liquid packaging boards, was 171 thousand tonnes, growing by 27% and 4% in relation to 3Q09 and 2Q10, respectively. In 9M10, this sales volume totaled 499 thousand tonnes, up 34% from 9M09. Coated boards net revenue stood at R$ 331 million in 3Q10, up 33% and 8% from 3Q09 and 2Q10, respectively. In 9M10, net revenue was R$ 941 million, up 32% from 9M09. Coated boards exports totaled 78 thousand tonnes in 3Q10, 68% higher than in 3Q09 and 2% lower than in 2Q10. In 9M10, these exports reached 234 thousand tonnes, up 59% from 9M09.
11
11
47%
711
171
46% 54%
165
49% 51%
135
35% 65%
53% 60%
331
307
248
3Q10
2Q10
3Q09
9M10
9M09
3Q10
2Q10
3Q09
9M10 9M09
Domestic market
Export market
According to Bracelpa, domestic sales volume of coated board (excluding liquid packaging board) stood at 158 thousand tonnes in 3Q10, up 11% and 8% from 3Q09 and 2Q10, respectively. In 9M10, domestic sales volume totaled 444 thousand tonnes, up 23% from 9M09. Klabins share of the domestic coated board market reached 26% in 9M10.
CONVERSION
Sales volume from manufactured products totaled 170 thousand tonnes in 3Q10, up 12% from 3Q09 and down 1% from 2Q10. In 9M10, this sales volume totaled 493 thousand tonnes, 15% more than in 9M09. Net revenue from manufactured products totaled R$ 442 million in 3Q10, up 25% and 8% from 3Q09 and 2Q10, respectively. In 9M10, this net revenue was R$ 1,209 million, 20% higher than in 9M09.
Corrugated Board
Shipments of corrugated boxes and sheets totaled 132 thousand tonnes in 3Q10, up 13% from 3Q09 and down 2% from 2Q10. In 9M10, this sales volume reached 386 thousand tonnes, up 16% from 9M09.
386 333
290
241
3Q10
2Q10
3Q09
9M10 9M09
3Q10
2Q10
3Q09
9M10 9M09
12
12
Net revenue totaled R$ 314 million in 3Q10, up 30% and 8% from 3Q09 and 2Q10, respectively. In 9M10, net revenue came to R$ 853 million, up 24% from 9M09. According to the Brazilian Corrugated Cardboard Association (ABPO), corrugated box and board shipments in 3Q10 totaled 646 thousand tonnes, up 9% from 3Q09. In 9M10, shipments stood at 1,902 thousand tonnes, up 16% from 9M09.
CAGR 4%
1,902 1,520 1,607 1,618 1,695 1,723 1,646
9M05
9M06
9M07
9M08
9M09
9M10
Industrial Bags
Sales volume of industrial bags at the plants in Brazil and Argentina totaled 38 thousand tonnes in 3Q10, up 12% and 4% from 3Q09 and 2Q10, respectively. In 9M10, sales volume of industrial bags totaled 108 thousand tonnes, up 13% from the same period last year. Net revenue from industrial bag sales was R$ 128 million in 3Q10, up 15% and 8% from 3Q09 and 2Q10, respectively. In 9M10, net revenue totaled R$ 356 million, up 11% from 9M09.
108
95
128
119
111
38 3Q10
36 2Q10
According to data from the National Cement Industry Union (SNIC), cement consumption in the domestic market totaled 43.7 million tonnes in 9M10, for growth of 15% in comparison to 9M09.
13
13
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
Quarter average
Source: Nation Labor Union of C ement Industry
Monthly consumption
Capital Markets
September 30 , 2010 Preferred shares Share price (KLBN4) Book value Average daily trading volume 3Q10 Market capitalization 600.9 million R$ 4.70 R$ 5.25 R$ 11.3 million R$ 4.2 billion
th
In 3Q10, Klabins preferred stock (KLBN4) registered a nominal loss of 6%, while the Bovespa Index (Ibovespa) increased 14%. The company's stock was traded in all sessions on the Securities, Commodities and Futures Exchange (BM&FBovespa), registering 136,300 transactions that involved 146.5 million shares in the quarter, for average daily trading volume of R$ 11.3 million.
The following chart shows the performance of Klabins preferred stock and the Bovespa Index:
Ja n0 9 Fe b0 9 M ar 09 Ap r0 9 M ay 09 Ju n0 9 Ju l0 9 Au g0 9 Se p0 9 O ct 09 N ov 09 D ec 09 Ja n1 0 Fe b1 0 M ar 10 Ap r1 0 M ay 10 Ju n1 0 Ju l1 0 Au g1 0 Se p1 0
14
14
115%
75% Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Klabin Ibovespa Index
Klabin stock also trades in the U.S. market through Level I ADRs, which are listed on the over-thecounter market under the ticker KLBAY. Klabins capital is represented by 917.7 million shares, composed of 316.8 million common shares and 600.9 million preferred shares. On September 30, 2010, the Company held 16.9 million preferred shares in treasury.
Repurchase of shares
At an extraordinary meeting held on October 13, 2010, the Board of Directors approved the repurchase of up to 45,278,818 preferred shares issued by the Company (corresponding to 10% of the shares of that class at the market on the date in question) for a period of 365 days, to be held in treasury for subsequent sale or cancellation, without capital reduction. Until the day November 9, 2010 the Company purchased of 8,108,900 preferred shares at an average price of R$ 4.74 per share totaling R$ 38.4 million. Until that date the Company held 25,016,800 preferred and own shares as treasury
Capex
The main investments made in 3Q10 and 9M10 are listed below:
3Q10 30 68 11 109
2Q10 27 49 17 93
15
15
Strategy
The companys strategic plan is periodically revised to accompany the evolution in the markets. Currently, investments are being directed primarily to reduce costs and gain productivity. The main investments currently being made are described below:
Conversion
Corrugated Boxes
1. Acquisition of 4 Flexo Folder Gluer printers from WardMarquip (USA) with the capacity to print in four colors on corrugated board. Two printers are already functional in Jundia - Distrito Industrial, So Paulo. The other printers will be installed in Feira de Santana, Bahia and Itaja, Santa Catarina. These new printers will increase the Companys productivity; 2. Refurbishment of the corrugators installed at Jundia TP, So Paulo and Goiana, Pernambuco, with an increase in the maximum operational speed from 300 meters per minute to 400 meters per minute The equipment at Betim, Minas Gerais will have its maximum operational speed increased from 240 meters per minute to 300 meters per minute. Investment in these acquisitions and refurbishments totaled R$ 42 million, including the material handling lines, unitization equipment and cargo palletization.
2. Transfer of a corrugator to the Goiana, Pernambuco unit, with operational speed of 240 meters per minute and startup expected in 2012; 3. Acquisition of a new printer for the Goiana, Pernambuco unit, with startup expected in 2012; The investment in these acquisitions totaled approximately R$ 100 million.
Industrial Bags
1. In 4Q10, a complete line of multi-layered bags was acquired and will be installed in the Lages, Santa Catarina plant, with startup expected in the first half of 2011; The new line should increase industrial bags productivity by 10%.
Papers
Monte Alegre
1. The acquisition, for R$ 60 million, of a new high-voltage transmission line for the unit in Monte Alegre, Paran. Investments include a step-down substation from 230 kV to 69 kV, as well as a 35 km transmission line. Operational startup is expected in the second half of 2011; Debottlenecking of the evaporation area for estimated investment of R$ 22 million and installation expected within 9 months; Adjustments in the collection of noncondensable gases, with investment estimated at R$ 24 million; Replacement of the lime cooler in Kiln II, for investment of R$ 8.5 million;
2. 3. 4.
16
16
5.
Otaclio Costa
1. Investment in the biomass boiler of R$ 35 million, with startup expected in 2011; 2. Refurbishment of the evaporation line, for investment of R$35 million.
Correia Pinto
1. Acquisition of a new biomass boiler for installation within 18 months; 2. Refurbishment of the recovery boiler for investment of R$ 12 million;
Forestry
1. Planting of 20 thousand hectares and forestry maintenance, for investment of R$ 120 million. Increase in the pace of forest planting to assure the supply of raw materials to the new pulp plant; Collection modules, machinery and equipment for investment of R$ 8 million;
2.
The long-term strategic objectives are still in the planning phase and envisage:
1. Construction of a global-scale pulp plant with capacity between 1.3 and 1.5 million t/year, expanding Klabin's pulp production capacity to 3.2 million t/year; 2. Installation of a new coated board machine with capacity of between 400 thousand and 500 thousand t/year, boosting coated board capacity to 1.2 million t/year and paper and paper packaging capacity to 2.4 million t/year.
17
17
Conference Call
Friday, November 12, 2010 at 11:00 a.m. (Brazil). Code: Klabin Dial-in: +55 (11) 4688-6331 Replay: +55 (11) 46886312 Code: 47718
Conference Call
Friday, November 12, 2010 at 9:00 a.m. (EST) / 12:00 p.m. (Brazil) Code: Klabin Dial-in: U.S. participants: 1-888-700-0802 International participants: 1-786-924-6977 Brazilian participants: (55 11) 4688-6331 Replay: (55 11) 46886312 Code: 47720
Webcast
An audio webcast of the conference call will also be available on the internet. Access: www.ccall.com.br/klabin
With gross revenue of R$ 3.6 billion in 2009, Klabin is the largest integrated manufacturer of packaging paper in Brazil, with annual production capacity of 1.9 million metric tons. Klabin has adopted a strategic focus on the following businesses: paper and coated boards for packaging, corrugated boxes, industrial bags and wood. Klabin is the leader in all its market segments.
The statements made in this earnings release concerning the Company's business prospects, projected operating and financial results and potential growth are merely projections and were based on Managements expectations of the Companys future. These expectations are highly susceptible to changes in the market, in the state of the Brazilian economy, in the industry and in international markets, and therefore are subject to change.
18
18
19
19
20
20
1Q11 76 0 76 23 0 28 51 128
2Q11 76 8 84 73 0 73 158
3Q11 82 0 82 55 1 22 78 160
After 2017
456
470 308
402 230
342 249
164 86
4Q10
102
128
51 76
1Q11
158
73 84
2Q11
160
78 82
3Q11 4Q11
240
330
306
302
346
79
2012 2013 2014 2015 2016
68
After 2017
Local Currency
Foreign Currency
21
21
9M10
724,446 549,687 334,634 165,359 359,980 (301,012) 2,815 97,828 92,633 (219,881) 13,259 4,072 174,759 (137,413) (15,046) 141,231 16,612 7,772 (8,930) 79,186 1,940 97,696 25,368 (33,657) (247,725) (169,296) (76,049) (3,013) 633 219,662 759,162 (509,585) 80,261 (2,436) (107,740) 696,383 1,841,652 2,538,035
3Q09
183,396 125,111 125,128 104,321 109,183 (15,655) (1,182) 44,959 (162,092) (67,603) 822 (12,770) 58,285 9,677 (5,645) 35,470 (7,293) (7,394) 6,390 26,557 (1,224) 161 6,989 (5,403) (77,034) (60,500) (16,112) (2,617) 2,195 78,146 198,940 (80,731) 6,744
9M09
481,795 298,550 391,270 312,504 253,794 (46,963) (6,956) 126,147 (515,330) (226,908) 2,021 8,971 183,245 48,593 (6,237) 65,304 67,785 16,248 27,703 (35,971) 4,923 1,442 6,659 (13,204) (204,038) (131,967) (81,006) (2,617) 11,552 (27,212) 268,624 (223,753) 7,793 (265)
22