DISCLAIMER

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. 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.

BRAZILIAN PACKAGING MARKETS

HIGHER EXCHANGE RATE INHIBITED IMPORTS OF PACKAGED PRODUCTS
FX exchange rate (R$ / dollar) Brazilian imports of packaged products (monthly avg - tsd tonnes) Brazilian sales of coated boards

125

129

1,77

2,00

331 300

1Q12

1Q13

Brazilian sales of corrugated boxes

772

802

1Q12

1Q13

1Q12

1Q13

1Q12

1Q13 4

Source: BACEN, SECEX/MDIC, ABPO and Bracelpa

Tsd tonnes

DOMESTIC MARKET SALES

KLABIN GREW MORE THAN THE MARKET
Klabin Sales Volume (excluding wood tsd tonnes)

Competitive advantage of Klabins products cost and quality Focus on food markets Flexibility of product lines
273

302

1Q12

1Q13 5

SALES AND NET REVENUE

70% DOMESTIC MARKET SALES AND NET REVENUE INCREASE
Sales Volume (excluding wood tsd tonnes) Net Revenue (R$ million)

420
35%

430
30%

969
24%

1,066
24%

65%

70%

76%

76%

1Q12

1Q13

1Q12

1Q13

Domestic Market

Export Market

COST AND EBITDA

23% EBITDA GROWTH QOQ

3%
1,627 1,568 1,613

384 311
Higher domestic sales Higher exports prices Low cost

1Q12

1Q13

1Q12 (R$ million)

Unit cash cost

(R$/tonne)

Adjusted EBITDA

1Q13

ADJUSTED EBITDA LTM

7TH CONSECUTIVE QUARTER OF SOLID GROWTH
33% 32% 29% 28% 25% 26%
1,286 1,089 1,028 922 1.7 939 1,180 1,352 1,424

31%

24% Margin

1.7

1.7

1.7

1.7

1.7

1.7

1.7

Jun11

Sep11

Dec11

Mar12

Jun12

Sep12

Dec12

Mar13

LTM: Last twelve months

Sales Volume LTM (excluding wood million tonnes)

Adjusted EBITDA LTM (R$ million)

FROM NOW ON

2013

2014

2015

2016

More benefits from the cost reduction Forestry investments to increase productivity and reduce costs New sack kraft machine in the 4Q13 Recycled paper machine in the 3Q14 PM9 (coated boards) debottlenecking Modernization of the lumber yard in Monte Alegre New pulp mill New coated boards machine

10

NEW PULP PROJECT KLABIN PULP

The only pulp project under development in the region with flexible product mix Unique forestry productivity Other products: tall-oil, turpentine and Energy Efficient logistics is a key component of cost advantage Strong sponsorship from Brazils prominent pulp and paper company Start up

1,1 m hardwood 0,4m softwood/fluff

above Brazilian average

~32%

150 MW
Average distance from the forest to the mill years of experience in the sector

PULP PROJECT

74 km 114

2015
11

KLABIN PULP
Domestic and foreign markets

Competitive forest

Lower cost producer

Fluff market

FSC

Long and short fiber

Energy generation
12

KLABIN PULP

RECENT DEVELOPMENTS
Earth movement and land preparation
Started last February Prevent delays in the construction

Paranas Government infrastructure protocol

Compensation of infrastructure investments Signed in May

13

KLABIN PULP

RECENT DEVELOPMENTS
Suppliers, clients and downstream markets
Preparing the commercial structure Advanced negotiations with suppliers

Financial structure
Funding structure in final steps

14

15

CAPACITY
Domestic market 2.5 m t
wood logs

243 k ha
eucalyptus and pine forests

700 k t
coated boards

1.7 m t
planted forests: 243 thousand ha short fiber and long fiber pulp

145 k t 960 k t
kraftliner industrial bags

Domestic and export markets

Domestic market 250 k t

old corrugated containers

200 k t
recycled paper

540 k t
corrugated boxes

16

FORESTRY PRODUCTIVITY
PARAN
Cloning

71 58 62

49

55

Forestry 37 productivity
Eucalyptus m3/ (ha.year)

38 13 14 15

18

MAI
Tonnes of pulp/ (ha.year)

10

Growth Density Factory yield

2010
2012

1995

2000

2005

2015
17

FORESTRY LOGISTICS
Average hauling distance

Klabin Pulp

75 Km

Average hauling distance

Monte Alegre

50 Km

Klabin Pulp Klabin SA Vale do Corisco

18

MARKET POSITION
PAPER
Leader in the Brazilian packaging paper market, where we allocate more than 50% of our capacity Coated Boards Kraftliner

670

50%

40%
Sole supplier of liquid packaging board in Latin America

thousand

market share

387

installed capacity

thousand
tonnes sold in 2012
19

tonnes sold in 2012

MARKET POSITION
CONVERSION
Leader in the Brazilian packaging market where we allocate more than 95% of our capacity Industrial Bags Corrugated Boxes

market share

50%
Second players market share is 16%

market share

15%

Second players market share is 9%

20

DESTINATION OF KLABINS PRODUCTS

Strongly linked to the consumer market

68%

Food

13% 7%
Others

Other consumer goods

Building

Sales volume destination paper and packaging 21

SUPERIOR COST CONTROL

Matrix control of costs (Falconi)
Monte Alegre mill Forestry

3% 1,613 1,568

Reversion of excessive outsourcing High return investments

Mechanical Vapor Recompression (Debottlenecking in Monte Alegre) Biomass boilers in Santa Catarina State High voltage transmission line Evaporation system
22

1Q12
R$ / tonne

1Q13

Nominal cash cost

SUPERIOR COST CONTROL

TEAMWORK AND PROPER INCENTIVES

Group of executives with extensive experience in the market, merged with the hiring of new executives New compensation metrics: individual and collective goals Aggressive targets Variable compensation linked to results, focus on short-term and long-term Long-term incentives through stock matching
23

ADJUSTED EBITDA LTM

54% growth
33% 32% 29% 28% 25% 26%
1,286 1,089 1,028 922 1.7 939 1,180 1,352 1,424

31%

24% Margin

1.7

1.7

1.7

1.7

1.7

1.7

1.7

Jun11

Sep11

Dec11

Mar12

Jun12

Sep12

Dec12

Mar13

LTM: Last twelve months

Sales Volume LTM (excluding wood million tonnes)

Adjusted EBITDA LTM (R$ million)

24

NET DEBT

Net Debt/Adjusted EBITDA

2.1

2.0

2.4

2.5

2.3

2.5

2.3

2.4

2.2

Mar11

Jun11

Sep11

Dec11

Mar12

Jun12

Sep12

Dec12

Mar13

Net Debt / Adjusted EBITDA (LTM)

LTM: Last twelve months

25

LOAN MATURITY SCHEDULE

2,750

954 703 486 605

821 643 560 694 451 519 517

404 350
89

273

140 250 148 102 211 117 94 299 468

427

478

229

465

191 186

Cash

121

2Q13 3Q13 4Q13 1Q14 9M14 2015

87

178

127

124

2016 2017 2018 2019

81

2020 Forward
26

52

Local currency R$1.7 billion

Average tenor: 31 months

Foreign currency R$ 4.2 billion Gross debt R$ 5.9 billion

Average tenor: 44 months

CAPEX

R$ million Maintenance and special projects Sack kraft expansion Recycled expansion Total

2012 552 77 25 654

2013E 361 127 212 700

27

SUSTAINABILITY
Certifications

COMMITTED TO THE BEST PRACTICES

Forest management in the most rigorous environmental, social and economic standards: 94.5% of Klabin's forests certified by the FSC (Forest Stewardship Council ); Quality Management System ISO 9001; Environmental Management System ISO 14001; Occupational Health and Safety Management System OHSAS 18001.

Committed to fundamental principles and rights

Monitoring supply chain focusing on: prevention of child, forced or compulsory labor; combating discriminatory practices, on appreciation of diversity, preventing bullying and sexual harassment, and respect for freedom of association. Voluntary commitments and practices adhered to: the UN Global Compact, CPC - Companies for the Climate, CDP - Carbon Disclosure Project, Pact for Integrity and Against Corruption and Pact for the Eradication of Slave Labor, among others. Promoting local development, with a focus on socio-economic aspects of the communities where we operate and in generating income for populations surrounding the plants.
28

29

SHAREHOLDER STRUCTURE
Common
Monteiro Aranha 20%

Preferred
Treasury 5% BNDES 13%

Brazilian investors 42% Brazilian investors 20%

Klabin Irm os 60%

Foreign investors 40%

316,827,563 shares
Level 1 of Corporate Governance at BM&FBovespa Tag along rights of 70% for preferred shares

600,855,733 shares
Average daily trading volume in 2012 R$ 25 million Dividends in 2012 R$ 275 million (yield 4%)

30

PAPER BUSINESS UNIT

95 90 119 138

Kraftliner

64% 36% 1Q12

53% 47% 1Q13 1Q12 1Q13

345

376

boards
Kraftliner Recycled Kraftliner and coated boards

Coated

164 47% 53% 1Q12

165 44% 56% 1Q13 1Q12 1Q13

Thousand tonnes
Domestic market

R$ million
Export market

31

CONVERSION BUSINESS UNIT

152

164

419

468

conversion

Total

1Q12

1Q13

1Q12

1Q13

Thousand tonnes

R$ million

Corrugated boxes Industrial bags Corrugated boxes and industrial bags

32

INCOME STATEMENT
(R$ thousand)
Gross Revenue Net Revenue Change in fair value - biological assets Cost of Products Sold Gross Profit Selling Expenses General & Administrative Expenses Other Revenues (Expenses) Total Operating Expenses Operating Income (before Fin. Results) Equity pickup Financial Expenses Financial Revenues Net Foreign Exchange Losses Net Financial Revenues Net Income before Taxes Income Tax and Soc. Contrib. Net income Depreciation and amortization Change in fair value of biological assets Vale do Corisco EBITDA

1Q13
1,294,947 1,066,404 61,609 (719,699) 408,314 (86,479) (64,195) 7,364 (143,310) 265,004 823 (88,806) 46,098 59,662 16,954 282,781 (81,227) 201,554 173,066 (61,609) 7,263 383,724

4Q12
1,294,027 1,078,364 113,410 (724,937) 466,837 (85,958) (73,646) 14,537 (145,067) 321,770 498 (104,286) 51,381 (25,463) (78,368) 243,900 (97,385) 146,515 168,725 (113,410) 7,135 384,220

1Q12
1,165,113 969,241 434,606 (628,038) 775,809 (80,128) (59,565) (4,358) (144,051) 631,758 3,586 (89,152) 68,130 75,146 54,124 689,468 (230,950) 458,518 107,845 (434,606) 6,269 311,266

0% -1% -46% -1% -13% 1% -13% -49% -1% -18% 65% -15% -10% N/A N/A 16% -17% 38% 3% -46% 2% 0%

11% 10% -86% 15% -47% 8% 8% N/A -1% -58% -77% 0% -32% -21% -69% -59% -65% -56% 60% -86% 16% 23%

1Q13/4Q12 1Q13/1Q12

33

34

34