project puma presentation

7/28/2019 Project Puma Presentation

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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.

DISCLAIMER

2

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.


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PUMA PROJECT

Domestic andforeignmarkets

Domestic andforeignmarkets

Competitiveforest

Competitiveforest

Lower costproducer

Lower costproducer

The most competitive pulp plant in the world

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Long and

short fiber

Long and

short fiber

Fluff market

Fluff market FSC

FSC

Energy

generation

Energy

generation


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FOREST OVERVIEW

Well distributed and located forest base: averagedistance of 74km

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

A singular forest base located in one the most prolific regions of the world

Africa

Chile

Scandinavia

Brazil

Iberian

Productivity m3/(ha*year)

Hardwood Softwood

Klabin

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Puma will operate with low logistics costs

Railroad logistics based on already existing rail

infrastructure from America Latina Logistica (ALL)

Terminal at the Port of Paranagu

A dedicated warehouse will be built

Location

LOGISTICS OVERVIEWIntegrated logistics solution assuring efficiency and competitiveness

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Paranagu port supports large vessels

Klabin Area

27,530 sq m


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FLEXIBLE PRODUCTION MIX

Hardwood Softwood Fluff 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

Most of the softwood used in the

domestic market comes from

imports which are less competitive

Main markets: packaging and tissue

Global and local demand for fluff

should grow substantially

Focus in the local market: huge

opportunity

Main markets: hygiene products

Global demand for hardwood(mm t)

Softwood market pulp in Brazil

Demand for fluff

Brazilian market 000 tonnes

Exposure to high growth markets with the most updated technology available

+

2015

33

7

11

3

9

3

2010

28

6

8

2

9

3

2005

23

63

9

3

OthersChina

Latin America

EuropeNorth America

(000 tonnes)

Mkt pulp

24%

Integrated

76%

Market PulpImportsDomestic sale

Brazilian market (2012)

Global market

+3%

2011 2015

+5%

2010 2015

(mm tonnes)

6Source: Poyry and J ohn Starr


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SCHEDULE

Feb

2013

May June

Since the beggining of 2013, Project Puma already presented a relevant progress

2016

1Q16

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Approval /

Announcement

Paranas

Government

infrastructure

protocol

Commercial

structure and

negotiations

with suppliers

Earth movement

and land preparationStart up


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CAPITAL EXPENDITUREThe industrial capex of Project Puma is estimated at R$5.3 bn and will be fundedboth in debt and equity

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Note:

1 Does not include the forests, working capital, infra structure and taxes


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NEW PROPOSAL

Step 1: Migration to Level 2 Considerable upgrade in terms of corporate

governance:

Right of public offering of shares ateconomic value;

Arbitrage;

Tag along: 100%;

Step 2: Conversion into units

1 unit = 1 common and 4 preferred

shares

Ste 3: Follow on

The new proposal will contemplate 3 different steps in order to be implemented

Preferred shareholders have the right tovote in key corporate events(e.g.: change in the corporate purpose,merger, related party transactions)

Equalization of dividends

Premium to controlling shareholders: 15%

Dilution of preferred and common minority

shareholders: 3%

This proposal must be approved by the commonminority and preferred shareholders

100% primary offering in order to

raise R$1.7 billion

Proceeds will be used to fund the

equity portion required by Project

Puma

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ADVANTAGES OF NEW PROPOSALNew proposal will be extremely benefical to the Company and its Shareholders

Lower cost to the Company

Allows future integration with packaging paper machines

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r ngs s gn can opera ona ga ns an synerg es roug ou e w o e pro uc on c a n

Increases shares liquidity

Expands the shareholders base

Improves corporate governance


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