Klabin SA Q1 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ricardo Monegaglia - Santander Investment Securities Inc., Research Division - Analyst : I have 2 questions. The first one has to do with inventories. Could you talk about this increase and how much of this increase is because of the gap between the Puma production and the sales of pulp in the quarter? And what about potential negotiations for exports of pulp? And my second question has to do with cash generation. It was a little bit worse than estimated because of the higher inventories. Could you give us some more color about the normal cash generation in the quarter? How much improvement should we see in this next quarter? And what about the leverage level that you've started to reverse for Puma II? Unidentified Company Representative Thank you, Ricardo. Regarding inventories (technical difficulty) so we have to prepare for stoppages. And we have another characteristic, that is the end of our contract with the old Fibria. And we've prepared these inventories in order to comply with our commitments so these inventories can -- should get into a normal pace. So there is nothing special for us to tell you besides what I have already shared. That is to say, the preparation for the stoppage, that starts in April. And the second question before the free cash flow, you asked something about pulp and the sale of pulp. And JosT Soares is going to answer this. He is our Commercial Director for pulp. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 03, 2019 / 2:00PM, KLBN4.SA - Q1 2019 Klabin SA Earnings Call