EARNINGS RELEASE 4Q16
FEBRUARY 01, 2017
4Q16 ADJUSTED EBITDA REACHES R$ 653 MILLION AND R$2.3 BILLION IN 2016, 16% YOY GROWTH
ADJUSTED EBITDA
PULP PRODUCTION VOLUME
PULP AND PAPER SALES VOLUME
SALES REVENUE
R$ 653 m
308 kt
777 kt
1
4Q16 HIGHLIGHTS
CONVERSION SALES VOLUME
|
|
|
|
R$ 1,964 m
+ 4%
December 31, 2016 KlabinMarket Value R$ 19.4 billion
KLBN11Closing Price R$ 17.72
Daily Volume 4Q16 R$ 39 million
Conference Call
Portuguese (with simultaneous translation) Thursday, 02/02/17, 11:00AM (BZ)
Tel: (11) 3193-1133 - Password: Klabin
http://cast.comunique-se.com.br/Klabin/4Q16
www.klabin.com.br/ri invest@klabin.com.br
+55 11 3046-8401
FINANCIAL HIGHLIGHTS | ∆ | ∆ | ∆ | ||||
R$ million 4Q16 | 3Q16 | 4Q15 | 4Q16/3Q16 | 4Q16/4Q15 | 2016 | 2015 | 2016/2015 |
Sales volume (thousand tonnes) 777 | 787 | 499 | -1% | 56% | 2,650 | 1,833 | 45% |
% Domestic Market 46% | 44% | 62% | 2 p.p. | -16 p.p. | 50% | 66% | -16 p.p. |
Net Revenue 1,964 | 1,965 | 1,596 | 0% | 23% | 7,091 | 5,688 | 25% |
% Domestic Market 58% | 57% | 62% | 1 p.p. | -4 p.p. | 60% | 68% | -8 p.p. |
Adjusted EBITDA 653 | 585 | 603 | 12% | 8% | 2,287 | 1,975 | 16% |
Adjusted EBITDA Margin 33% | 30% | 37% | 3 p.p. | -4 p.p. | 32% | 34% | -2 p.p. |
Net Income (loss) 109 | 31 | 521 | 246% | -79% | 2,482 | (1,253) | n/a |
Net Debt 12,005 | 11,473 | 12,411 | 5% | -3% | 12,005 | 12,411 | -3% |
Net Debt / EBITDA (LTM - BRL) 5.2x | 5.1x | 6.3x | 5.2x | 6.3x | |||
Capex 511 | 558 | 1,364 | -8% | -63% | 2,567 | 4,627 | -45% |
RELATÓRIO - 4T13 • 12 DE FEVEREIRO DE 2014
Klabin presents its consolidated financial statements according to international accounting standards (International Financial Reporting Standards - IFRS) as determined by CVM 457/07 and CVM 485/10 instructions. Information on Vale do Corisco is not consolidated in the Financial Statements, and is represented by the Equity Pick up method only. Adjusted EBITDA is in accordance with CVM Instruction 527/12.
Notes:
Some of the figures on the charts and tables may not express a precise result due to rounding. The EBITDA margin incorporates the effects of Vale do Corisco LTM - last 12 months.
SUMMARYThe last quarter of 2016 in Brazil saw the end of another year of economic decline, strong FX volatility and political turbulence. The Senate's recent approval of a ceiling on Federal Government spending and the improvement in inflation indices - ending the year below the Central Bank's upper tolerance level for inflation - boosted economic confidence. Improvements have not yet translated into a recovery in economic activity and job creation, but are paving the way for interest rate reductions.
On the external front, Donald Trump's election to the presidency of the United States affected markets at the end of 2016. Doubts concerning the new administration's economic policies, principally of a fiscal and tax nature, also generated a high degree of volatility in the prices of a broad range of assets worldwide.
Still impacted by the domestic economic crisis, the paper and packaging markets saw corrugated box shipments fall by 3% in the 4Q16 year-on-year, according to data published by the Brazilian Corrugated Board Association (ABPO). For the full
year, corrugated box shipments were 2% lower than in 2015.
In relation to international packaging paper markets, European kraftliner prices continued under pressure, and in December, the FOEX USD list price dropped to its lowest level since 2009. Thus, the average list price at US$596/tonne in the 4Q16 was 3% and 8% lower than in 3Q16 and 4Q15, respectively. For the full year, the average price at US$615/tonne was 5% below the average for 2015.
In the pulp market, despite a slight year-end improvement, hardwood pulp prices continued lackluster due to the prospects of new capacity coming on stream. Consequently, average FOEX prices in Europe decreased to US$655/t in 4Q16 from US$671/t in 3Q16. On the other hand, average softwood pulp prices remained steady using the same comparison, the spread between the two being US$148/t.
The Puma Unit, still at the ramp up stage, was responsible for the important increase in sales during the period, total sales volume reaching 777 thousand tonnes in 4Q16, a year-on-year increase of 56%. It is
RELATÓRIO - 4T13 • 12 DE FEVEREIRO DE 2014
also important to note that in light of the Real's appreciation in the final months of the year, the company's intrinsic flexibility and recent acquisitions of corrugated board units were instrumental in a 4% increase in conversion product sales in relation to 4Q15 and using largely paper originally destined for international markets. Thus, the increase in sales volume spearheaded by pulp sales, together with Klabin's competitiveness in the conversion market saw net revenues of R$1,964 million, a 23% growth in relation to the same period in the previous year.
With the increase in sales volumes in 4Q16, Klabin has benefited from the dilution of fixed and manageable costs. This fact, allied to strict cost
controls, has helped compensate for inflation, the effects of which still persist in the case of some raw materials and services.
Klabin's results in the 4Q16 were once more driven by the increase in pulp sales from the Puma Unit and by the company's flexibility in being able to quickly adapt to changes in economic scenario. Despite adverse conditions involving important variables such as Brazilian economic activity, FX rates and international pulp and paper prices, which characterized 2016 and continued to feed through to the final quarter, Klabin was still successful in posting a R$653 million adjusted EBITDA, an 8% growth over the same period in 2015.
1,881
1,976
2,026
2,173
2,238
2,287
22st QUARTER OF EBITDA GROWTH
1,027
1,089
1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.92.0
2.4
1,180
1,286
1,351
1,424
1,452
1,504
1,562
1,602
1,627
1,652
1,718
1,755
1,812
2.7
Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
∆ | ∆ | ∆ 2016 2015 2016/2015 | |||
R$ / US$ | 4Q16 | 3Q16 | 4Q15 | 4Q16/3Q16 | 4Q16/4Q15 |
Sales Volume LTM
(excluding wood - million tonnes)
Adjusted EBITDA LTM (R$ million)
Average Rate | 3.30 | 3.25 | 3.84 | 2% | -14% | 3.48 | 3.34 | 4% |
End Rate Source: Bacen | 3.26 | 3.25 | 3.90 | 0% | -17% | 3.26 | 3.90 | -17% |
The Brazilian political scenario and Donald Trump's election brought a strong degree of volatility to the FX market during the last quarter of the year. The shock result of elections in the United States drove up FX rates to R$3.46/US$. Conversely, the improvement in expectations in relation to the Brazilian economy, led the FX rate downwards to R$3.26/US$ by the end of the 4Q16, practically the same level as at the beginning of the quarter. The average FX rate during the quarter of R$3.30/US$ was in line with the 3Q16 but 14% lower than the R$3.84/US$ rate reported for the same quarter of the previous year, impacting revenues from exports and domestic products with dollar-linked prices.
RELATÓRIO - 4T13 • 12 DE FEVEREIRO DE 2014
OPERATING AND FINANCIAL PERFORMANCE Sales VolumeKlabin's sales volume continued to grow in 4Q16, driven mainly by the continuing ramp up in production at the Puma Unit, initiated in March. Excluding wood, volumes sold, reached 777 thousand tonnes, a 56% increase in relation to the 499 thousand tonnes sold in 4Q15. The Puma Unit contributed 301 thousand tonnes in sales during the quarter, of which 208 thousand tonnes of hardwood and 93 thousand tonnes of softwood and fluff pulp.
In addition to pulp sales, the company increased the commercialization of conversion products in a still recessive Brazilian economic environment and despite the drop in corrugated box shipments according to data published by ABPO, driven by Klabin's well consolidated positioning in these markets. In the light of a strengthening Real and the increase in recycled paper prices in relation to the end of 2015, Klabin decided to reduce the acquisition of recycled paper in the domestic market, redirecting part of its virgin fiber paper exports to its conversion operations. The year- on-year reduction in paper sales and 5% increase in conversion is a reflection of this strategy.
During the quarter under review, exports reached 54% of the total versus 38% in 4Q15 and 56% in 3Q16, driven mainly by increased pulp sales largely to overseas markets.
Sales volume (excluding wood - tsd tonnes) Sales volume by product 4Q16499
38%
-24
Paper / Conversion
+301
Pulp
777
54%
Kraftliner
12%
Others 1%
Pulp 39%
62%
46%
Conversion 24%
4T15
4T16
4Q15 4Q16
Domestic Market Exports
Coated Board
24%
In 2016, total sales reached 2,650 thousand tonnes, a year-on-year increase of 45% due to initial pulp sales and higher paper sales volume, still reflecting debottlenecking and capacity increases during 2015.
Net RevenuesBolstered by pulp revenues of R$471 million from the Puma Unit, 4Q16 net revenues, including wood, reached R$1,964 million, 23% higher than in 4Q15. Important to point out that revenues were negatively impacted by a lower average FX rate during the period in relation to 2015 and affecting revenue flows from products with prices indexed to the USDollar.
4
Klabin SA published this content on 01 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 February 2017 16:13:14 UTC.
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