Apresenta o Resultados 2010 eng - Celulose Irani › uploads › informacao_financeira_ri › ... · Irani.com.br Presentation of 4Q10 and 2010 results Joaçaba(SC), March 29, 2011.

Irani.com.br

Presentation of 4Q10 and 2010 results

Joaçaba (SC), March 29, 2011.

Irani.com.br

1. Celulose Irani S.A. 03

2. Operating Performance 19

2.1 Paper Segment 202.2 Packaging Segment (corrugated cardboard) 222.3 Forestry RS and Resins Segment 25

3. Economic-Financial Segment 27

3.1 Gross Revenue 283.2 Account Statements 333.3 Financial Indicators 38

Content

Irani.com.br






Content

Irani.com.br

• founded in 1941 and controlled by Habitasul Group since 1994;

• 1.687 direct employees (Dec/2010);

• 4 Industrial Units in 3 Brazilian states;

• 196,921 tons of paper produced in 2010;

• R$ 447,4 million net revenue in 2010;

• R$ 267,7 million invested from 2007 to 2010;

• 43,5 thousand hectares of planted forests and preservation areas;

Celulose Irani S.A.

Chose the commitment with sustainability to became more competitive, reaching

management excellence, higher profitability and higher market value

4

Irani.com.br

70 years of Sustainability

The Company produces Kraft paper,

sheet and boxes of corrugated paper and,

resins besides selling furniture.

Its activities show total

commitment to Sustainability.

Manages its business seeking positive and longstanding results to all involved

parties, with absolute respect to the environment and people.

5

Irani.com.br

In 1941, when IRANI was founded

ecology, preservation or sustainability were

not discussed.

Development was focused on concepts

suitable to that historical moment.

Nowadays, sustainability is the basic parameter

for management model at IRANI, allowing

higher economic, social and environmental

performance.

6

Irani.com.br

Ecologically Correct

Adopts procedures that avoid or

minimize negative impacts to the

environment.

Economically Feasible

Guarantees investments

profitability, adding value to

business.

Socially Fair

Generates benefits to local

communities, respecting the rights of

employees and their families

A Company that adopts the principles of SUSTAINABILITY has consciousness

that its acting, management policies and market strategies attend to

Triple Bottom Line: environment, society and economy. In other words:

7

Formed

a virtuous

circle

Ecologically

Correct

IRANI uses as raw

material its own planted

forests and parings –

paper and

cardboard already used by

society.

Economically Feasible

From raw material, the company produces pulp, paper, packaging

and other products, this production generates wealth to its clients

and investors.

Socially Fair

There are many jobs.

Company interaction in

local communities is

effective.

IRANI products used by

communities can serve

as parings.

8Irani.com.br

Irani.com.br

PLANTS

Paper and Packaging - Vargem Bonita (SC)

Packaging - Indaiatuba (SP)

Resins - Balneário Pinhal (RS)

DISTRIBUTION CENTER

Meu Móvel de Madeira - Rio Negrinho (SC)

OFFICES

Adm., Financial and IR - Joaçaba (SC)

Commercial - São Paulo (SP)

Headquarters - Porto Alegre (RS)

Location

São Paulo

Indaiatuba

Rio Negrinho

Joaçaba

Vargem Bonita

Balneário PinhalPortoAlegre

São Paulo

Paraná

Santa Catarina

Rio Grande do Sul

Cities of Água Doce,

Catanduvas,Vargem Bonita,Irani

and Ponte Serrada (SC)

Forestry Areas of Celulose Irani S.A.

Cities of Cidreira, Balneário Pinhal,

Mostardas and Tavares (RS)

Forestry Areas of Habitasul Florestal

Forests

9

Irani.com.br

• Market - domestic and foreign;

• Kraft Paper of 30 to 200 g/m2, brown, white and

colorful, for line: FineKraft, FlashKraft, FlatKraft,

FlexiKraf, BagKraft and EnveloKraft for flexible

packaging. And Kraft Liner, Test Liner, Miolo and

Recicled for hard packaging.

There are 4 updated machines

that produce paper with

capacity of 214,700tons in 2011.

Paper Segment

10

Irani.com.br

Cardboard Packaging

Segment

• PACKAGING SC:

2 corrugating machines and 6 printers with production

capacity of 66,000 t in 2011

• PACKAGING SP:

1 corrugating machine and 5 printers with production

capacity of de 96,000 t in 2011

11

Irani.com.br

Resins Segment

•extraction of resin from own pinus forest;

•produces Rosin and Turpentine;

•foreign market – Asia, Middle East, Europe,

Africa, North America, Central and South America

Production capacity of 8,000 t

in 2011

12

Irani.com.br

Furniture Segment

• sales of reforest wood furniture;

• digital store - Meu Móvel de Madeira -

www.meumoveldemadeira.com.br

(domestic market and Latin America);

13

Irani.com.br

Mission

To generate value for our clients, by furnish excellent and secure services as

renewable forestry products, with absolute respect towards both environment and

people, and guaranteeing sustainability of our business, by increased growth, fair

and lasting return to our investors.

14

Irani.com.br

Vision

To be among the 5 (five) largest and best Brazilian companies in the segments in

which we deal in as well as among the best 100 companies to work for in Brazil. To be

recognized and chosen by our clients, our suppliers partners and to be attractive to

our investors, by always seeking the highest level of operational effectiveness and

innovation in terms of our products and services.

15

Irani.com.br

Awards and Recognitions received in 2010

16

Fiema 2010 PrizeEnvironmental Technology Category

Corporate Citizem Prize ADVB/SCEnvironmental Preservation Category

Brazilian Environmental BenchmarkingAward – Awarded by Mais Projetos

5th Brazil Environmental PrizeBest air work in 2010 Category

The Best 500 of Dinheiro – Awarded byIsto É Dinheiro Magazine

Top 10 in Sustainability Reports3rd place in research realized by

FBDS and SustainAbility.

Expressão de Ecologia Prize

Pollution Control Category

RISI Magazine

Amanhã

Irani.com.br17

G3 – GRI Guidelines for Sustainability Reports

The Global Compact -

United Nations (UN) Initiative

Business Agreement for

Integrity and against

corruption

ETHOS Institute

Accession to principles and guidelines

Irani.com.br

Certifications received by IRANI

18

All production from Packaging Unit SC, at VargemBonita, is monitored and certified during all its

process

Chain of Custody Certification ensures that the product was manufactured following strict standards in the

entire production process, from forest to final consumer

FSC seal attests responsible forest management and

the proper acquisition of raw material by IRANI

The certification according to NBR

ISO 9001 establish requirements for

the Quality Management

System of IRANI and assure the quality of

its products and process.

Irani.com.br






Agenda

Irani.com.br

2.1 Paper Segment

20

Irani.com.br

Paper Production Volume IRANI

In tons

Paper dispatch IRANI

In tons

Source: Irani

Irani Market Share(%):

21

+3.8%

+0.5%

50,125

196,921184,868

48,29549,852

4Q10 3Q10 4Q09 2010 2009

+6.5%

4.6%

Foreign Market

11%Transfer for packaging

63%Domestic Market

26%122,517 ton

21,283 ton

51,384 ton

4.5%

Paper Segment

Irani.com.br22

2.2 Corrugated Cardboard

Segment

Irani.com.br

Over the last few years, packaging business has been growing significantly above market

IRANI Market Share (%):

Source: ABPO (Brazilian Association of

Corrugated Cardboard) and Irani

23

5.47% 5.0%

Packaging Sales Volume - IRANI Packaging Sales Volume - ABPO

In thousand square feet In thousand square feet

+9%

270,548

63,63969,447

217,300

72,657

4Q10 3Q10 4Q09 2010 2009

+24.5%

-4%

4,942,621

1,221,1011,253,435 1,257,989

4,365,837

4Q10 3Q10 4Q09 2010 2009

+13%

-0.4%

+3%

Irani.com.br

The same growth is shown in tons when compared to the market

Source: ABPO (Brazilian Association of

Corrugated Cardboard) and Irani

24

Packaging Sales Volume - IRANI Packaging Sales Volume - ABPO

In tons In tons

IRANI Market Share (%): 4.85% 4.58%

123,350

104,157

33,12931,50129,475

4Q10 3Q10 4Q09 2010 2009

+7%

-5%

+18%640,873

2,542,830

646,122

2,273,866

628,159

4Q10 3Q10 4Q09 2010 2009

+2%

-0.8%

+12%

Irani.com.br25

2.3 Forestry RS and Resins

Segment

Irani.com.br

Forestry RS and Resins Segment

Source: Irani

26

Rosin and Turpentine Production Volume Rosin and Turpentine Sales Volume

In tons In tons

-593

4,853

768

6,361

4Q10 3Q10 4Q09 2010 2009

6,351

12

1,291965

5,250

4Q10 3Q10 4Q09 2010 2009

-24%-17%

Irani.com.br






Agenda

Irani.com.br28

3.1 Gross Revenue

Gross revenue increased at an average rate of 13.9% p.y. since 2000

29Irani.com.br

59

137160

216

321

366 362 378

440

74

104 125149

174227

75 68 50 3538332722

52

2000 2001 2002 2003 2004 2005 2006 2007 2008

Gross Revenue (R$ million) Gross Revenue (U$ million) EBITDA

Δ Gross Revenue - 17% 35% 49% 14% -1% 4% 16% 10%

- 21% 19% 18% 17% 13% 13% 15% 15%Ebitda Margin

486

117

266271

2009

243

93

479

-1%

25%

48

575

328

92

20%

21%

CAGR + 13.9%

2010

CAGR - Compounded Annual Growth Rate

Irani.com.br

And in 2010 Packaging segment (SC and SP) accounted for 60% of net revenue

30

Net Revenue Breakdown 2010

Packaging Paper Resins Furniture Subsidiaries

60%

5%

2%

3%

30%

Irani.com.br

Net revenue increased 18.7% as compared to 2009, reaching 447 million

2010 Net Revenue Breakdown [million R$]

2010

447

398

49

89%

11%

100%

31

2009 Net Revenue Breakdown [million R$]

2009Foreign Market

Domestic Market

377

301

76

80%

20%

100%

Net revenue amount include discontinued operation

Foreign Market

Domestic Market

28.1

37.1

45.5

52.2

37.6

28.0

9.110.4

19.7

27.0 27.8

1.832.35

2.92 3.09 2.932.43 2.18 1.95 1.83 1.99 1.75

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CAGR - Compounded Annual Growth Rate

Amount in million

Exports increased at an average rate of 10.8% p.y. since 2000

Δ Exp - +14% +89% +37% +3% +1% +32% +23% +15% -28%

Δ Dollar -10%- +28% + 24% + 6% -5% -17% -11% -6% +9%

32Irani.com.br

-25%

-12%

CAGR +10.8%

Irani.com.br

3.2 Account Statements

33

Irani.com.br

Balance Sheet

34

Amount in R$ thousand

Consolidated Consolidated

01/01/09 12/31/09

Assets 1,140,805 1,062,465

Current 116,861 127,066

Assets available for sale

Non current 1,023,944 935,399

Liabilities 1,140,805 1,062,465

Current 195,197 205,005

Non current 520,937 414,739

Shareholders’ equity 424,671 442,721

Celulose Irani S.A

Amount of 2010 are impacted by the full adoption of IFRS in account methods. Figures of 12/31/09 and 01/01/09

represented for comparison with the same criteria.

The interim financial statements related to March, June and September 2010 will be represented with the adoption of new

account methods.

Consolidated

12/31/10

1,144,760

181,783

7,090

955,887

1,144,760

209,696

467,934

467,130

- -

Irani.com.br

Statements of Income

35

Net Revenue of Sales

Variation at fair value – biological assets

Cost of products sold

Gross Profit

Sale Expenses

General and Administrative Expenses

Net Financial Expenses

Other Operating Results

Operating Result

Income Tax and social contribution current

Income Tax and social contribution deferred

Net profit from continued operations

Net loss from discontinued operations

Celulose Irani S.A

3,696

349,997

(267,207)

86,486

(35,832)

(34,073)

12,845

16,261

45,687

(437)

(19,657)

25,593

2009

Consolidated

50,738

442,686

(320,090)

173,334

(37,661)

(48,458)

(41,619)

124

(3,831)

218

38,289

2010*

Consolidated

*The effects from the adoption of IRS are contemplated in

2010 fiscal period compared to 2009


Continued operations

Discontinued operations

Management participation

Net profit

(3,641)

-

21,952

(3,928)

(3,818)

34,361

41,902

Indebtedness

36Irani.com.br

Amount in R$ million

Celulose Irani S.A.

Gross Debt 392.2 100% 314.2 100% 349.9 100%

Short Term 154.7 39% 138.7 44% 131.3 38%

Tax installments 3.9 3% 3.6 3% 4.1 3%

Bank Indebtedness 143.8 93% 134.8 97% 101.7 77%

Real Estate Credit Certificates - 0% - 0% 13.3 10%

Debentures - 0% - 0% 12.3 9%

Related Parties 7.0 5% 0.3 0% - 0%

Long Term 237.5 61% 175.5 56% 218.7 62%

Tax installments 12.4 5% 6.8 4% 14.6 7%

Bank Indebtedness 223.9 94% 168.7 96% 93.3 43%

Real Estate Credit Certificates - 0% - 0% 22.1 10%

Debentures - 0% - 0% 88.7 41%

Related Parties 1,2 0% - 0% - 0%

Bank Indebtedness + Debentures 367.7 303.5 331.2

Related Parties 8.1 0.3 -( - ) Available (4.7) (15.2) (50.8)

Bank Net Debt 371.2 288.6 280.4

Currency Debt 392.5 100% 314.2 100% 349.9 100%

Domestic 138.8 35% 139.3 44% 229.0 65%

Short Term 63.5 46% 68.5 49% 99.7 44%

Long Term 75.3 54% 70.8 51% 129.3 56%

Foreign 253.7 65% 174.9 56% 120.9 35%

Short Term 60.4 24% 70.2 40% 31.6 26%

Long Term 193.3 76% 104.7 60% 89.4 74%

12/31/2008 12/31/2009 12/31/2010

Irani.com.br

Financial Result

37

Celulose Irani S.A.Realized

2008

Realized

2009

Realized

2010

Fx variation (61,894) 58,823 (360)

Negative Variation (96,028) (14,766) (31,190)

Positive Variation 34,134 73,589 30,830

Other expenses (31,855) (48,183) (46,963)

Interest (30,105) (43,976) (46,861)

Discounted granted (191) (928) (501)

Bank expenses (1,550) (2,978) 410

Other expenses (9) (301) (11)

Other revenue 2,560 1,948 4,579

Financial applications 2,042 269 3,006

Interest 475 1,165 824

Discounted 384 514 212

Disc. Loan anticipation (341) - 537

Financial Result (91,189) 12,588 (42,744)

Amount in R$ thousand. Include discontinued

operations in 2010

Irani.com.br

3.3 Financial Indicators

38

Irani.com.br

Main financial indicators

Include discontinued operations

R$ thousand 4Q10 3Q10 4Q09 2010 2009

Net Operating Revenue 115,836 124,851 96,451 447,472 376,879Domestic Market 107,862 112,282 86,389 397,902 301,132Foreign Market 7,974 12,569 10,062 49,570 75,747

Gross Profit 27,204 60,089 23,027 170,615 87,582Gross margin 23.5% 48.1% 23.9% 38.1% 23.2%

Operating result before taxes andparticipations (3,938) 31,714 9,520 39,765 40,116Operating Margin -3.4% 25.4% 9.9% 8.9% 10.6%

Net Result (2,331) 25,147 3,737 34,360 21,951

Net Margin -2.0% 20.1% 3.9% 7.7% 5.8%

R$ thousand 4Q10 3Q10 4Q09 2010 2009

Result before Taxes (3,938) 31,714 9,520 39,765 40,116

Fair value variation – biological assets 2,106 (23,842) (1,346) (50,738) (3,696)Depletion 4,729 4,109 3,733 16,212 25,001Depreciation and Amortization 9,129 8,641 9,338 34,801 37,281Financial Result 6,807 5,271 6,485 42,744 (12,588)EBITDA 18,833 25,893 27,730 82,784 86,114

Contingencies 2,408 2,663 1,683 9,432 4,581Non recurrent events* - - - - 1,645Adjusted EBITDA 21,241 28,556 29,413 92,216 92,340

EBITDA margin 18.3% 22.9% 30.5% 20.6% 24.5%

*Non recurring events: - - - - 1,645Asset sale - farm - - - - 188Windstorm - - - - 1,457

EBITDA - EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION(*)

Irani.com.br

-7.2%

Net operating revenue

As compared to 2009, net operating revenue increased 18.7% in 2010

+ 20.1%

40Irani.com.br

+ 18.7%

Amount in R$ thousand. Include discontinued operations

R$ 115,836 R$ 124,851

R$ 96,451

R$ 447,472

R$ 376,879

4Q10 3Q10 4Q09 2010 2009

Irani.com.br

Adjusted EBITDA of 2010 remained stable as

compared to 2009

41


-25.6%

-0.13%

-27.8%

R$ 21,241

R$ 28,556 R$ 29,413

R$ 92,216 R$ 92,340

R$ 0

R$ 20,000

R$ 40,000

R$ 60,000

R$ 80,000

R$ 100,000

4Q10 3Q10 4Q09 2010 2009

Irani.com.br

EBITDA margin was 20.6% in 2010 against 24.5% in 2009

EBITDA Margin – Quarter figures [%]

42

18.3%

22.9%

30.5%

20.6%

24.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

4Q10 3Q10 4Q09 2010 2009

Comments

•EBITDA in 2010 was not influenced by specific events, such as Refis adhesion and an extra sale of wood that were made in 2009 and help EBITDA on that period.

Irani.com.br

CommentsNet Debt [million R$]

• The figure of 6.35 times in 2008 carries the impact of dollar appreciation.

• In 2009 started the benefits from SuperaçãoProject and the settlement of the debt, and the rate ended 2009 at 3.13 times

•In 2010, this rate reflected good results and follows a decrease trend

Net Debt x Ebitda rate follows a decrease trend

43

288.6 280.4

58.882.2

126.6

200.9

371.5

1.17

2.333.36

3.86

6.35

3.13 3.04

2004 2005 2006 2007 2008 2009 2010

Net Debt Net Debt/EBITDA

Irani.com.br

The following material contains a presentation of general information related to Celulose Irani S.A. and its subsidiaries (together, “CeluloseIrani” or “Company”) in this particular date. This material was prepared exclusively for this presentation. This is summarized information without the purpose of being complete. We do not make any statement, implicit or explicit, and we do not guarantee any correction, adequacy or coverage of these information.

This presentation contains certain future statements and information related to Celulose Irani that reflect current visions and/or expectations of the Company and its management related to the performance, its businesses and future events. Statements include, without limitation, any statement that may contain forecast, indication or estimates and projection on future results, performance or goals, as well as, words like “we believe”, “we anticipate”, “we hope”, “we estimate”, “we project”, among others with similar meaning. These statements are subject to risks, uncertainties and future events. Warning is made to investors that several important aspects cause actual results to differ in a relevant way from such plans, objectives, expectations, projections and intentions expressed in this presentation. Under no circumstance, neither the Company, nor its subsidiaries, board of directors, executive board, agents or employees are responsible for any investment decision made by investors based on the information and statements presented in this material, or by any damage that may arise from it, correspondent or specific.

This presentation does not constitute any offer, invitation or subscription offer. Besides, neither this presentation, nor its content serves as basis for any contract or commitment of any kind.

The market and information of competitive positioning, including market projections cited throughout this presentation, were obtained from internal researches, market surveys, public and business information. Although we do not have any reasons to believe that these information or reports may not be accurate, we do not perform any kind of independent verification of competitive position, market position, growth rate or any other data provided by third parties or other industry publications. Celulose Irani is not responsible for the accuracy of this information.

This presentation and its content are property of the Company and can not be reproduced or circulate, partially and/or entirely, without the previous written consent of Celulose Irani.

Disclaimer

45

Apresenta o Resultados 2010 eng - Celulose Irani › uploads › informacao_financeira_ri › ... · Irani.com.br Presentation of 4Q10 and 2010 results Joaçaba(SC), March 29, 2011.

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