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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.

PUMA PROJECT

The most competitive pulp plant in the world

Domestic and foreign markets

Competitive forest

Lower cost producer

Fluff market

FSC

Long and short fiber

Energy generation
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FOREST OVERVIEW
A singular forest base located in one the most prolific regions of the world
107,000 hectares planted with pine and eucalyptus Paran region has one of the highest forest yields in the world ~ 32% above Brazilian average

Well distributed and located forest base: average distance of 74km

FSC certified

Productivity m3/(ha*year)
Hardwood
Brazil Africa Chile Iberian Scandinavia Klabin 4

Softwood

LOGISTICS OVERVIEW

Integrated logistics solution assuring efficiency and competitiveness

Puma will operate with low logistics costs Railroad logistics based on already existing rail infrastructure from America Latina Logistica (ALL)

Location

Terminal at the Port of Paranagu A dedicated warehouse will be built Paranagu port supports large vessels

Klabin Area 27,530 sq m

FLEXIBLE PRODUCTION MIX


Exposure to high growth markets with the most updated technology available

Hardwood
Global demand should keep growing at healthy levels in the next years Asia should be the driver for this growth Main markets: tissue and specialties

Softwood
Most of the softwood used in the domestic market comes from imports which are less competitive Main markets: packaging and tissue

Fluff
Global and local demand for fluff should grow substantially Focus in the local market: huge opportunity Main markets: hygiene products

Global demand for hardwood


(mm t)

Softwood market pulp in Brazil


Mkt pulp 24% 76% Integrated

Demand for fluff


Brazilian market +5%
(000 tonnes)

+3% 28 3 9 2 8 6 2010
North America Europe Latin America

23 3 9 3 6 2005

33 3 9 3 11 7 2015
China Others

Brazilian market (2012)


(000 tonnes)

2010

2015
(mm tonnes)

Global market +3%

Domestic sale

Imports

Market Pulp

2011

2015

Source: Poyry and John Starr

SCHEDULE
2013 Feb

Since the beggining of 2013, Project Puma already presented a relevant progress

2016 May June 1Q16

Earth movement and land preparation

Paranas Government infrastructure protocol Commercial structure and negotiations with suppliers

Approval / Announcement

Start up

CAPITAL EXPENDITURE

The industrial capex of Project Puma is estimated at R$5.3 bn and will be funded both in debt and equity

Note: 1 Does not include the forests, working capital, infra structure and taxes

NEW PROPOSAL
Step 1:

The new proposal will contemplate 3 different steps in order to be implemented

Considerable upgrade in terms of corporate governance: Right of public offering of shares at economic value; Arbitrage; Tag along: 100%; Preferred shareholders have the right to vote in key corporate events (e.g.: change in the corporate purpose, merger, related party transactions)

Migration to Level 2

Step 2:

Conversion into units


1 unit = 1 common and 4 preferred shares

Step 3:

Follow on
100% primary offering in order to raise R$1.7 billion Proceeds will be used to fund the equity portion required by Project Puma

Equalization of dividends Premium to controlling shareholders: 15% Dilution of preferred and common minority shareholders: 3%

This proposal must be approved by the common minority and preferred shareholders
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ADVANTAGES OF NEW PROPOSAL


Lower cost to the Company Allows future integration with packaging paper machines

New proposal will be extremely benefical to the Company and its Shareholders

Brings significant operational gains and synergies throughout the whole production chain Increases shares liquidity Expands the shareholders base Improves corporate governance
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