Klabin & the economic environment

7th Annual Citi Brazil Equity Conference

June 4, 2014 - So Paulo
KLBN11
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.
7th Annual Citi Brazil Equity Conference June 2014
Brazilian Economy
Economic review - 1Q2014
7th Annual Citi Brazil Equity Conference June 2014
Source: IBGE and Banco Central do Brasil
Brazilian GDP
(%)
1Q13 1Q14
2,10
2,20
2,30
2,40
2,50
Jan-14 Feb-14 Mar-14 Apr-14 May-14
BRL/US$ Average BRL/US$ Average expected by the market*
BRL/ US$ - Jan to May, 2014
BRL/US$ FX average
rate of the first 5 months
of 2014 is lower than
expected by the market
by the end of 2013, but
higher than the average
FX of the same period of
last year.
* Average expected for 2014 according to Relatrio Focus of December 27, 2013
Economic review - 1Q2014
INDUSTRY CONFIDENCE
7th Annual Citi Brazil Equity Conference June 2014
Source: FGV
70
80
90
100
110
120
130
Brazil Industrial Confidence Indicator - Expectations seasonally adjusted
100 = neutral / 0 = absolute pessimism / 200 = absolute optimism
In May 2014, the
INDEX reached the
lowest level since
May 2009.
Economic outlook - 2H2014
WHAT TO EXPECT?
7th Annual Citi Brazil Equity Conference June 2014
Main drivers:

World Cup
Elections
Brazilian inflation
Energy crisis
United States and China economies
What to expect:

BRL devaluation?
Low GDP?
Selic rate going up?
Eletric stoppage?
Tappering to continue?
Uncertain scenario and low
predictability
Klabin 1Q14 review and outlook
KLABIN GREW MORE
THAN THE MARKET
1Q14 Review
FOCUS IN CONVERTED PRODUCTS
7th Annual Citi Brazil Equity Conference June 2014
1Q13 1Q14
173
164
1Q13 1Q14
525
468
Net revenue
(R$ million)
Sales volume
(tsd tonnes)
Total conversion
Brazilian corrugated shipments
(thousand tonnes)
1Q13 1Q14
827
802
Volume
(tsd tonnes)
Source: ABPO
1Q14 Review
FOCUS IN THE EXPORT MARKET
7th Annual Citi Brazil Equity Conference June 2014
1Q13 1Q14
424
384
Adjusted EBITDA
(R$ million)
129
154
1Q13 1Q14
Sales volume in the Export Market
(excluding wood tsd tonnes)
256
339
1Q13 1Q14
Net revenue of the Export Market
(R$ million)
7th Annual Citi Brazil Equity Conference June 2014
2H14
HOW CAN KLABIN TAKE ADVANTAGE OF DIFFERENT SCENARIOS?
Flexibility of products Flexibility of markets
Coated
Boards
Kraftliner
Corrugated
Boxes
Industrial
Bags
DOMESTIC
MARKET
EXPORT MARKET
Expansion projects
NEW CAPACITIES
2013 2014 2015 2016
50,000
tonnes
per year
80,000
Tonnes per
year

debottlenecking
coated boards (PR)
STARTED IN JUN/2014

sack kraft
machine(SC)
STARTED IN
NOV/2013
recycled paper
machine(PE)
110,000
Tonnes per
year
PUMA
project
1,5 million
Tonnes per year
debottlenecking
PIRACICABA AND
ANGATUBA
50,000
Tonnes per
year
7th Annual Citi Brazil Equity Conference June 2014
Growth
ADDITIONAL CAPACITIES
3.5 million
tonnes per
year
2016 E
2.0 million
tonnes per
year
2015 E
1.8 million
tonnes per
year
2014 E
1.7 million
tonnes per
year
2013
7th Annual Citi Brazil Equity Conference June 2014
Project Puma
LOW OPERATION COST
272 MWh
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
ANNUAL PRODUCTION CAPACITY
1.5 MILLION
TONNES OF PULP
1.1 million
tonnes of SHORT
FIBER
400 thousand
tonnes of
LONG FIBER
part converted into fluff
7th Annual Citi Brazil Equity Conference June 2014
TOTAL INDUSTRIAL CAPEX
R$ 5.8 billion
Project Status
PUMA
Earthmovement well advanced (around 80%)
Start up: march 2016
100% of industrial equipment contracted
Civil construction already started
Infrastructure: lacking final negotiations
7th Annual Citi Brazil Equity Conference June 2014
k l a b i n . c o m . b r
Thank you!