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.

COMPANY

A DIFERENTIATED

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 1.0 m 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

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
5

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%

DESTINATION OF KLABINS PRODUCTS

Strongly linked to the consumer market

68%

Food

13%

Other consumer goods

7%
Others Sales volume destination paper and packaging

Building

FROM 2008 TO 2013

COST REDUCTION AND CHANGE IN COMMERCIAL PRACTICES HIGH RETURN INVESTMENTS EXPANSION OF CONVERsION CAPACITY

MONTE ALEGRE, PR OTACLIO COSTA, SC CORREIA PINTO, SC FORESTRY UNIT

EXPANSION OF EVAPORATION SYSTEM

OTACLIO COSTA AND MONTE ALEGRE
GOIANA, PE

JUNDIA DISTR. IND, SP

NEW CORRUGATOR

NEW CORRUGATOR

BIOMASS BOILER
OTACLIO COSTA AND CORREIA PINTO

NEW INDUSTRIAL BAGS EQUIPMENTS

GOIANA, PE

INSOURCING MECHANIZATION OF SILVICULTURE AND HARVESTING HIGH VOLTAGE TRANSMISSION LINE

MONTE ALEGRE

NEW PRINTERS FOR CORRUGATED BOXES

ADJUSTED EBITDA LTM

63% growth
31% 32% 33% 33% 34%

24% Margin

25%

26%

28%

29%

1,424
1,180 1,286

1,452

1,504

1,352

1,028 922 1.7 939

1,089

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

1.7

jun11

sep11

dec11

mar12

jun12

sep12

dec12

mar13

jun13

sep13

LTM: Last twelve months

Sales Volume LTM (excluding wood million tonnes)

Adjusted EBITDA LTM (R$ million)

FROM NOW ON
HIGH RETURN INVESTMENTS

COST REDUCTION

DEBOTTLENECKING AT THE WOOD YARD FORESTRY UNIT CORRUGATED BOXES UNIT

MONTE ALEGRE

BIOMASS DRYING PROCESS

OTACLIO COSTA

10

EXPANSION PROJECTS
debottlenecking coated boards (PR) 50,000 sack kraft machine(SC)
NOV/2013
tonnes per year

PIRACICABA AND ANGATUBA

debottleneckings (not approved)

60,000
tonnes per year

PUMA
project 1.5 million
tonnes per year

80,000
tonnes per year

recycled paper machine(PE) 110,000

tonnes per year

2013

2014

2015

2016

PRODUCTION CAPACITY
3.5
million tonnes per year

1.7

million tonnes per year

1.8

2.0

million tonnes per year

million tonnes per year

2013

2014 E

2015 E

2016 E

KLABIN JOINS ISE

ISE SUSTAINABILITY INDEX

180 questions grade higher than average

KLABIN 2020
MARKET ECONOMIC SOCIAL ENVIRONMENTAL

SUSTAINABILITY VISION

50 employees envolved

13

RESULTS

9M13

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 *

398

412

1,92

2,12

333

9M12
280

9M13

Brazilian sales of corrugated boxes

2,454

2,519

9M12

9M13

9M12

9M13

9M12

9M13

Source: BACEN, SECEX/MDIC, ABPO and Bracelpa * Excluding LPB

Tsd tonnes

15

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
878

915

9M12

9M13

16

SALES AND NET REVENUE

Sales volume (excluding wood tsd tonnes)
1.290 1.313

Net revenue (R$ million) 1,066

24%
1,086 22%

Net revenue (R$ million)

3,085 24%
3,363 25%

969

440 28% 72%

453 31%

32%

30%

24%

1,203
26%

68% 69% 70%

70%

76% 75%
75% 74%

75% 76%

76%
9M12 9M13

78%

76%

3Q12

3Q13

1Q12

3Q12

1Q13

3Q13

9M12

9M13

Domestic Market

Export Market
17

PAPER BUSINESS UNIT

286 410 261 56% 44% 381

Kraftliner

57% 43%

9M12

9M13

9M12

9M13

0% 502 500 45% 55% 9M13

1,111

1,178

boards
Kraftliner Recycled Kraftliner and coated boards

Coated

45% 55% 9M12

9M12

9M13

Thousand tonnes
Domestic market

R$ million
Export market

18

CONVERSION BUSINESS UNIT

477

518

1,494
1,324

conversion

Total
9M12 9M13 9M12 9M13

Thousand tonnes

R$ million

Corrugated boxes Industrial bags Corrugated boxes and industrial bags

19

COST AND EBITDA

16% EBITDA GROWTH YOY

4%
1,627 1,600 1,670

1,119 967
Higher domestic sales Higher exports prices Low cost

9M12

9M13

9M12 (R$ million)

Unit cash cost

(R$/tonne)

Adjusted EBITDA

9M13

20

NET DEBT
Net Debt /Adjusted EBITDA

2.4
3,0 2,5 2,0 1,5 1,0 0,5 0,0

2.5

2.3

2.5

2.4

2.5

2.2

2.4

2.4

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12

Mar-13

Jun-13 Sep-13

Net Debt / Adjusted EBITDA (LTM)

LTM: Last twelve months

21

CAPEX
R$ MILLION
MAINTENANCE SPECIAL PROJECTS AND EXPANSION VALE DO CORISCO PUMA PROJECT

2011
296 159 428 -

2012
390 264 -

2013E 2014E 2015E

318 475 141 372 431 2,762 360 3,470

TOTAL

883

654

934

3,565

3,830

22

PUMA

PROJECT

LOW OPERATION COST

ANNUAL PRODUCTION CAPACITY

THE PROJECT

1.5 MILLION
TONNES OF PULP

of ELECTRICAL ENERGY production SELF SUFFICIENCY

122 MWh for internal use 150 MWh to the market
enough to supply a city of 500 thousand inhabitants

272 MWh

1.1 million

tonnes of SHORT FIBER

400 thousand
tonnes of

LONG FIBER

part converted into fluff

24

PROJECT FEATURES

PUMA

production of hardwood pulp (eucalyptus) and softwood (pine)

fluff production

lowest cash cost in Brazil

domestic sales

25

PARAN STATE

PROJECT FEATURES

LOCALIZATION

PUMA
KLABIN FORESTS MONTE ALEGRE VALE DO CORISCO FORESTS

PROJECT FEATURES
LESS FORESTRY AREA NEEDED

300 thousand
hectares

700thousand
hectares

Europe

nordic countries

238 thousand
hectares

south USA

planted forest needed for a 1.5 million tonnes of hardwood pulp mill
160
thousand hectares

140 thousand
hectares

Brazil

100 thousand
hectares

Chile

KLABIN PUMA

PRODUTIVITY
27

HUGE

PRODUCTS
PUMA PROJECT PRODUCES 3 DIFFERENT TYPES OF FIBER that could lead to combined sales to the same client

EUCALYPTUS PULP
BEKP

PINE PULP

IN BALES

IN BALES

BSKP

MADE FROM BSKP

FLUFF IN REELS

* BEKP: bleached eucaliptus kraft pulp BSKP: bleached softwood pulp

28

WORLD DEMAND BLEACHED PULP

TONNES IN 2013
tonnes 17.4 million EUCALIPTUS million tonnes

52 MILLION
16.5

LONG FIBER

24 million
LONG FIBER
tonnes

28 million
11.6
FLUFF
million tonnes

SHORT FIBER

tonnes

6.5 OTHER

million tonnes

SHORT FIBER
29

SOURCE: HAWKINS WRIGHT

WORLD DEMAND SHORT FIBER

CAGR

3.3% 28.2

million tonnes

32.2

million tonnes

SHORT FIBER

SHORT FIBER

2013
SOURCE: HAWKINS WRIGHT

2013 2017
anualizado

2013

2017

30

LONG FIBER IMPORTS IN BRAZIL

GROWTH

LONG FIBER

MARKET

7%
tonnes

410 thousand
IMPORTED LONG FIBER

439 thousand

tonnes

IMPORTED LONG FIBER

DOMESTIC MARKET FOCUS IMPORTS SUBSTITUTION

2012

2013
anualized SOURCE: BRACELPA

31

MARKET
DISPOSABLE DIAPERS DEMAND IN BRAZIL

FLUFF

CAGR

4%

11.8 billion

CAGR

11%

units

9.8 billion

units

DISPOSABLE DIAPERS

fluff domestic demand is expected to grow significantly imports substitution Major markets: infant and adult diapers and women disposal

DISPOSABLE DIAPERS

5.8 billion
units

DISPOSABLE DIAPERS 2007 2012 2017E

SOURCE: EUROMONITOR INTERNATIONAL

GLOBAL CASH COST (SHORT FIBER)

700

600

500

400

PUMA
5
SOURCE: HAWKINS WRIGHT

300

10 15 20 annual capacity (millions of tonnes)

25
33

CIF Europe cash cost (US$/tonne)

COMMERCIAL STRATEGY

SHORT FIBER LONG FIBER FLUFF

1 2 3 4 5

PUMA

DOMESTIC MARKET EXPORTS

KLABIN WILL NOT AIM FOR LARGE VOLUMES

INTEGRATION 6

34

LOGISTIC SHORT DISTANCES

DOMESTIC MARKET

INBOUND

OUTBOUND highway

forestry average distance forests

72 Km

pulp mill

railway to the port

441 Km

Paranagu port
EXPORTS

35

CAPEX AND FUNDING

CAPEX
R$
R$

FUNDING
R$
R$

7.2 BILLION

REAIS

7.2 BILLION

REAIS BID

OFF THE FENCE(recovered)

R$

0,6 billion reais

0,7 billion reais

ECAs

net debt/EBITDA in sep/2013: 2.4x

RETURNABLE TAXES

0,8 billion reais

R$

0,8 billion reais

R$

1,7 billion reais

CAPITALIZATION

adjusted with capital increase R$ 1,7 bi

R$

5,8 billion reais INDUSTRIAL CAPEX

R$

4 billion reais

BNDES

Klabin will start the project with 1,3x net debt/EBITDA

36

PROJECT STATUS
earthmovement well advanced already contracted:
turbo generators balance of plant electrical engines

SIEMENS

POYRY AMEC/KSH

WEG

other negotiations underway start up: March 2016

37

3D PROJECT

EARTHMOVEMENT

APPENDIX

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 Adjusted EBITDA

3Q13
1,447,775 1,202,919 148,051 (834,943) 516,027 (92,737) (72,626) 876 (164,487) 351,540 15,187 (103,541) 54,597 (40,329) (89,273) 277,454 (80,606) 196,848 213,480 (148,051) 9,312 426,281

2Q13
1,325,897 1,093,793 70,267 (807,242) 356,818 (86,645) (67,039) 4,574 (149,110) 207,708 1,365 (111,336) 47,459 (354,319) (418,196) (209,123) 79,298 (129,825) 163,258 (70,267) 8,495 309,194

3Q12
1,305,430 1,085,766 333,122 (714,806) 704,082 (81,989) (74,243) 1,236 (154,996) 549,086 1,755 (115,435) 75,953 (15,377) (54,859) 495,982 (165,144) 330,838 151,759 (333,122) 7,033 374,756

3Q13/2Q13 9% 10% 111% 3% 45% 7% 8% -81% 10% 69% 1013% -7% 15% -89% -79% N/A N/A N/A 31% 111% 10% 38%

3Q13/3Q12 11% 11% -56% 17% -27% 13% -2% -29% 6% -36% 765% -10% -28% 162% 63% -44% -51% -41% 41% -56% 32% 14%

9M13
4,068,619 3,363,116 279,927 (2,361,884) 1,281,159 (265,861) (203,860) 12,814 (456,907) 824,252 17,375 (303,683) 148,154 (334,986) (490,515) 351,112 (82,535) 268,577 549,804 (279,927) 25,070 1,119,199

9M12
3,702,632 3,085,306 772,578 (2,098,211) 1,759,673 (258,616) (200,272) (4,164) (463,052) 1,296,621 25,329 (333,592) 216,569 (352,371) (469,394) 852,556 (247,106) 605,450 423,952 (772,578) 19,403 967,398

9M13/9M12 10% 9% -64% 13% -27% 3% 2% N/A -1% -36% -31% -9% -32% -5% 4% -59% -67% -56% 30% -64% 29% 16%

41

42

42