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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
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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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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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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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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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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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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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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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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
www.klabin.com.br