1Q14 Earnings Release April 24, 2014

1Q14 Earnings Release

April 24, 2014

Adjusted EBITDA of R$424 million in 1Q14, 11% up on 1Q13

NET REVENUE March 31, 2014

R$1,203 million
SALES VOLUME

First-quarter net revenue of R$1,203 million, 13% up on 1Q13;

KLABIN Market cap: R$11 billion

443 thousand tonnes

ADJUSTED EBITDA

Sales volume came to 443 thousand tonnes, 3% higher than in 1Q13;

KLBN11 Closing price: R$ 11.64 Average daily trading volume in March: R$20 million

R$424 million
NET DEBT/EBITDA

Adjusted EBITDA of R$424 million, with a margin of 35%, 11% up on 1Q13;

CONFERENCE CALL Portuguese (with simultaneous translation) Friday, 4/25/14, 09 a.m. (EDT) Phone: (55) (11) 3193-1133 Password: Klabin webcall.riweb.com.br/klabin

1.7x
EXPANSION

The net debt/adjusted EBITDA ratio fell from 2.6x to 1.7x in March 2014, with the issuance of the debentures mandatorily convertible into Units;

Puma Project

Klabin obtained final financing approval by the BNDES in the capitalization process for the construction of the new pulp plant in Ortigueira (PR).

IR Antonio Sergio Alfano Vinicius Campos Daniel Rosolen Lucia Reis Marcos Maciel +55 11 3046-8401 www.klabin.com.br/ri invest@klabin.com.br

Klabin's consolidated financial statements are presented in accordance with International Financial Reporting Standards (IFRS), as determined by CVM Instructions 457/07 and 485/10. Vale do Coriscos information is not consolidated, being represented in the financial statement by equity income. Adjusted EB ITDA according to CVM Instruction 527/12

R$ million
Sales volume (thousand tonnes) % Domestic Market Net Revenue % Domestic Market Adjusted EBITDA Adjusted EBITDA Margin Net Income (loss) Net Debt Net Debt / EBITDA (LTM) Capex

1Q14
443 65% 1,203 72% 424 35% 607 2,711 1.7x 503

4Q13
476 67% 1,236 73% 442 35% 22 3,984 2.6x 284

1Q13
431 70% 1,066 76% 384 36% 202 3,136 2.2x 152

1Q14/4Q13
-7% -2 p.p. -3% -1 p.p. -4% 0 p.p. 2721% -32%

1Q14/1Q13
3% -5 p.p. 13% -4 p.p. 11% - 1 p.p. 201% -14%

77%

231%

Notes: Due to rounding, some figures in tables and graphs may not result in a precise sum. Adjusted EBITDA margin is calculated over a pro-forma net revenue, which includes revenues from Vale do Corisco. LTM - last twelve months

1Q14 Earnings Release April 24, 2014

Summary
In the first quarter of 2014, the global economy continued giving signs of modest recovery in both the United States and the Euro Zone. These regions have been gradually removing the liquidity enhancing programs implemented after the 2008 crisis. Isolated facts, such as the political tension in the Crimea region, created uncertainties, which, however, were not strong enough to offset the gradual improvement in the U.S. and European economies. Unlike these more modern markets, Brazil began the year on a pessimistic note due to signs of fiscal deterioration and low economic growth. In order to control the rising inflation, the Brazilian Central Bank maintained its policy of increasing the Selic benchmark rate, which began the second quarter of 2014 at 11% p.a. This, however, did not reduce Brazilian household consumption, which represented more than 60% of GDP at the end of 2013. The unfavorable economic scenario affected Brazils various sectors in different ways.
Brazilian coated boards shipments (thousand tonnes) Brazilian corrugated shipments (thousand tonnes)

In the packaging paper market, consumption by producers of food and other non-durable consumer goods did not fall substantially, benefiting suppliers in these segments. Preliminary data from the Brazilian Corrugated Boxes Association (ABPO) indicate that the corrugated boxes market grew by 3% between 1Q13 and 1Q14. According to the Brazilian Association of Pulp and Paper Producers (Bracelpa), domestic demand for coated boards, excluding liquid packaging boards, fell by 3% over 1Q13, led by non-food segments. In the international markets, the downward trajectory of kraftliner prices in the final months of 2013 was maintained in 1Q14. The list price in Europe averaged 564/t in the quarter, according to the FOEX index. Due to the exchange variation, the average price in reais increased by 19% over 1Q13.

Kraftliner brown 175 g/m2 list price (/tonne and R$/tonne)

827 802

1,827

129

1,534
126

582

564

1Q13
Source: Bracelpa

1Q14

1Q13
Source: ABPO

1Q14

1Q13
Kraftliner ( / ton) Source: FOEX

1Q14
Kraftliner ( R$ / ton)

With the higher average exchange rate in the first three months of 2014, Klabin maintained its sales in the most attractive markets thanks to its product line flexibility. As a result, the Company

expanded the share of exports in its sales from 30% in 1Q13 to 35% in 1Q14, increasing its export sales volume by 19% year-on-year to 154 thousand tonnes.

1Q14 Earnings Release April 24, 2014

Of total domestic sales of 289 thousand tonnes, it is worth noting the increased share of converted product sales on the domestic market, with a 5% year-on-year upturn to 164 thousand tonnes. As a result, net revenue from sales totaled R$1,203 million, 13% up on 1Q13. Given its solid period revenue from sales, based on the improved

product and market mix, Klabin moved forward with its sustainable growth process, recording adjusted EBITDA growth for the 11 consecutive quarter. EBITDA came to R$1,602 million in the last 12 months and R$424 million in the first three months of 2014, 11% up year-on-year, accompanied by a margin of 35%.
th

1,800

Ajusted EBITDA LTM (R$ million)

1,600

1,400 5.0 4.5

4.0 3.5 3.0 2.5 1,000

1,424 1,286 1,180 1,027 922 939 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1,089 1,351

1,452

1,504

1,562

1,602

1,200

2.0 1.5 1.0 0.5 -

800

600

1.7

1.7

1.7

1.8

1.8

400

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Mar-14

Sales Volume LTM (excluding wood million tonnes)

Adjusted EBITDA LTM (R$ million)

Exchange Rate
Thanks to the reduction in the Federal Reserves bond repurchase program and the news of Brazils low economic growth and fiscal deterioration, the real continued to depreciate at the beginning of 2014, resulting in exchange rates above R$2.40/US$ at the end of January. As a result, the average dollar exchange rate was 4% higher than the 4Q13 average. Halfway through the quarter, however, there was an increase in the inflow of dollars into Brazil, following the upturn in domestic interest rates, and a higher volume of foreign investments in the stock market, bringing the exchange rate to R$2.26/US$ at the end of the period, 3% lower than at the end of 2013.
R$
Average Rate End Rate
Source: Bacen

1Q14
2.37 2.26

4Q13
2.27 2.34

1Q13
2.00 2.01

1Q14/4Q13
4% -3%

1Q14/1Q13
18% 12%

1Q14 Earnings Release April 24, 2014

Operating and financial performance

Sales Volume
First-quarter sales volume, excluding wood, increased by 3% year-on-year, totaling 443 thousand tonnes. Paper sales volume on the export market grew by 19% to 154 thousand tonnes, benefiting from the more favorable exchange rate. The export market accounted for 35% of total sales in 1Q14, versus 30% in 1Q13. Due to Klabins capacity constraints, domestic sales came to 289 thousand tonnes, 4% down year-on-year. In Brazil, the Company concentrated its sales volume in converted products (corrugated boxes and industrial bags), 6% up on the same period in 2013, in line with the growth reported by the Brazilian Corrugated Boxes Association (ABPO) and the National Cement Industry Association (SNIC).
Sales volume (excluding wood tsd tonnes)

Sales volume by product 1Q14

431 30% 70%

443 35%
Kraftliner 24%

Industrial Others bags 1% 8% Coated boards 36%

65%

1Q13
Domestic market

1Q14
Exports

Corrugated boxes 31%

Net Revenue
First-quarter net revenue, including wood, increased by 13% over 1Q13 to R$ 1,203 million. The Company expanded the share of exports in total sales, benefitting from the higher exchange rate and more favorable export market conditions. As a result, revenue from exports totaled R$339 million (US$143 million), a substantial 33% higher than in 1Q13. Despite the lower volume, revenue from domestic sales increased by 6% to R$865 million, fueled by the increased share of converted products in the sales mix Pro-forma net revenue, including Klabins portion of revenue from Florestal Vale do Corisco S.A., came to R$1,218 million in 1Q14.

1Q14 Earnings Release April 24, 2014

Net revenue (R$ million)

Net revenue by product 1Q14

1,066 24%

1,203 28%

Wood logs Others 1% Industrial 7% bags 13%

76%

72%
Kraftliner 14%

Coated boards 35%

1Q13
Domestic market

1Q14
Exports

Corrugated boxes 30%

Operating Costs and Expenses

The unit cash cost, including fixed and variable costs and operating expenses, totaled R$1,782/t in 1Q14, 11% higher than in 1Q13, due to the upturn in the sales of converted products, which have higher costs, the end of tax benefit related to the Reintegra program, and higher provisions for employee profit sharing, as a result of higher-than-expected performance in 2013. In March, there was a maintenance stoppage in the Correia Pinto (SC) plant, which also impacted costs in the quarter. The unit cash cost excluding the stoppage effects was R$1,759/t, a nominal increase of 9% over 1Q13. In addition to the change in the production and sales mix, inflation and the exchange rate variation pressured cost components, including OCC, chemicals, fibers and freight in the comparison period. In 2Q14, there will be a maintenance stoppage in the Monte Alegre (PR) plant, when board machine 9 will be debottlenecked, adding 50 thousand tonnes of coated boards to the plants annual capacity.

Cash cost breakdown 1Q13 Energy 11% Maintenance material/ stoppages 8%

Freight 12% Others 5%

Cash cost breakdown 1Q14 Energy 10%

Maintenance material/ stoppages 10% Freight 12% Others 4% Labor / third parties 32%

Labor / third parties 33%

Chemicals 15%

Wood / fibers 16%

Chemicals 15%

Wood / fibers 17%

1Q14 Earnings Release April 24, 2014

The cost of goods sold (COGS) came to R$803 million in 1Q14, 12% up on 1Q13, due to the period upturn in sales volume and the increase in the unit cash cost mentioned previously. Selling expenses totaled R$98 million, 14% more than in 1Q13. These expenses, which are mostly variable in nature, remained stable as a percentage of revenue from sales despite the nominal increase. Selling expenses represented 8.2% of 1Q14 net revenue. Administrative expenses amounted to R$73 million in 1Q14, 14% up year-on-year, chiefly due to the collective bargaining agreements of 2013 and higher provisions for employee profit sharing following better results. Other operating revenue (expenses) resulted in revenue of R$9 million in 1Q14, compared to R$ 7 million in the same period last year.

Effect of the variation in the fair value of biological assets

The effect of the variation in the fair value of biological assets was a gain of R$522 million in 1Q14, versus R$62 million in 1Q13, due to the higher prices used in the assessment and adjustments to the forest cutting plan as a result of the new pulp plant. The effect from the depletion of the fair value of biological assets on the cost of goods sold was R$99 million in 1Q14. As a result, the non-cash impact of the variation in the fair value of biological assets on 1Q14 operating income (EBIT) was a gain of R$423 million.

Operating Cash Flow (EBITDA)

R$ million
Net Income (loss) (+) Income taxes and social contribution (+) Net Financial Revenues (+) Depreciation, amortization, depletion Adjustments according to IN CVM 527/12 art. 4 (-) Biological assets adjustment (-) Equity Pickup (+) Vale do Corisco Ajusted EBITDA Adjusted EBITDA Margin (522) (6) 9 424 35% (56) (5) 9 442 35% (62) (1) 7 384 36% 826% 14% 1% -4% 0 p.p. 747% 573% 29% 11% -1 p.p.

1Q14
607 325 (166) 177

4Q13
22 8 249 217

1Q13
202 81 (17) 173

2721% 4180% -167% -19%

201% 300% 878% 2%

1Q14/4Q13 1Q14/1Q13

N / A - Not a ppl i ca bl e Note: EBITDA ma rgi n i s ca l cul a ted cons i deri ng the pro forma net revenue, whi ch i ncl udes Va l e do Cori s co

Product and market mix flexibility continued to be an essential factor in Klabin's sales strategy, enabling the Company to benefit from the higher average dollar exchange rate, which increased export revenue, and from the resilient domestic consumption of converted products despite modest economic growth. As a result, the solid increase in revenue from sales fueled EBITDA growth, despite inflationary pressure on

1Q14 Earnings Release April 24, 2014

production costs and operating cash flow (adjusted EBITDA) came to R$424 million in the first quarter, with an adjusted EBITDA margin of 35%. This figure includes Klabin's share of Florestal Vale do Corisco Ltda. totaling R$9 million.

Indebtedness and Financial Investments

Gross debt stood at R$7,581 million on March 31, R$617 million more than at the close of 4Q13, chiefly due to the inclusion of the present value of the interest on the debentures mandatorily convertible into Units, equivalent to approximately R$400 million, in the Companys debt. Of this total, R$4,695 million, or 62% (US$2,075 million) was denominated in dollars, primarily export pre-payment facilities. Cash and financial investments closed the quarter at R$4,870 million, R$1,891 million more than in 4Q13. This amount exceeds financing amortizations in the next 53 months and was reinforced by the issuance of debentures mandatorily convertible into Units totaling R$1,700 million. Consolidated net debt totaled R$2,711 million on March 31, 2014, R$1,274 million less than the R$3,985 million recorded on December 31, 2013, mainly due to the issuance of debentures mandatorily convertible into Units in January and the impact of the exchange variation on dollar-denominated debt. The exchange rate closed March at R$2.26/US$, 3% down on the end of December. As a result, the net debt/adjusted EBITDA ratio stood at 1.7x, 0.9x down on the previous quarter. The average maturity term came to 44 months (42 months for local-currency debt and 45 months for foreign-currency debt). Short-term debt accounted for 15% of the period total and borrowing rates in local and foreign currency averaged 7.32% p.a. and 5.00% p.a., respectively.
8.000 7.000 6.000 5.000 6,0 5,5 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 -0,5 -1,0 -1,5 -2,0

Net debt (R$ million)

2,1
4.000

2,4 2,0

2,5

2,3

2,5

2,4

2,5

2,2

2,4

2,4

2,6 1,7

3.278

2.735

3.014

3.090

3.136

3.000
2.313

3.437

3.595

3.985

2.000

2.002

1.000 -

Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Net Debt Net Debt / EBITDA (LTM)

1.893

2.674

2.711

1Q14 Earnings Release April 24, 2014

Debt (R$ million)

Short term Local currency Foreign currency Total short term Long term Local currency Foreign currency Total long term Total local currency Total foreign currency Gross debt (-) Cash Net debt Net debt / EBITDA (LTM)

03/31/2014

12/31/2013

514 666 1,180

7% 9% 16%

458 667 1,125

7% 10% 16%

2,372 4,029 6,401 2,886 4,695 7,581 4,870 2,711 1.7x

31% 53% 84% 38% 62%

1,754 4,085 5,839 2,212 4,752 6,964 2,979 3,985 2.6x

25% 59% 84% 32% 68%

Financial Result
Financial expenses totaled R$106 million in 1Q14, 19% higher than in 1Q13, chiefly due to the gross debt increase, which raised the average cost of debt in reais, and expenses related to the Refis tax installment payment program. Financial revenue came to R$121 million in the quarter, 163% up year-on-year and 87% higher than in 4Q13, impacted by increased gains from financial investments following the upturn in the Companys cash position and higher Brazilian interest rates. Consequently, the 1Q14 financial result, excluding the exchange variation, was a net revenue of R$15 million, versus an expense of R$43 million in 1Q13. In a period of high volatility, the exchange rate closed the quarter 3% down on the end of December 2013. As a result, the net foreign exchange variation was positive by R$150 million. Note that the exchange variation has an exclusively accounting effect on the Companys balance sheet, with no significant cash effect in the short term.

1Q14 Earnings Release April 24, 2014

Business Performance
Consolidated information by business unit in 1Q14.

R$ million
Net revenue Domestic market Exports Third part revenue Segments revenue Total net revenue Change in fair value - biological assets Cost of goods sold Gross income Operating expenses Operating results before financial results

Forestry
83 83 139 222 567 (238) 551 (10) 541

Papers
297 296 593 265 858 (536) 322 (85) 237

Conversion Consolidation
484 43 527 4 531 437 94 (52) 42 (408) (408) 408 (9) (9)

Total
864 339 1,203 1,203 567 (803) 967 (156) 811

Note: In this table, total net revenue includes sales of other products. Nota: * Forestry COGS includes the exaustion of the fair value of biological assets of R$ 104 million in the period.

BUSINESS UNIT FORESTRY

thousand tonnes
Wood R$ million Wood 84 81 69 4% 22%

1Q14
697

4Q13
745

1Q13
641

1Q14/4Q13
-6%

1Q14/1Q13
9%

The increase in the U.S. construction industry indices in 1Q14 and the dollar appreciation continued to fuel wood product exports by Klabins clients. This scenario increased wood prices by 11% over 4Q13 and boosted the volume of logs harvested for sale in the period. Log sales to third parties moved up by 9% over 1Q13, reaching 697 thousand tonnes. Sales volume growth and higher prices increased net revenue from wood sales, which totaled R$84 million in 1Q14, 22% up on 1Q13.

1Q14 Earnings Release April 24, 2014

BUSINESS UNIT PAPER

thousand tonnes
Kraftliner DM Kraftliner EM Total Kraftliner Coated boards DM Coated boards EM Total Coated boards Total Paper R$ million Kraftliner Coated boards Total Paper

1Q14
33 72 105 89 73 161 266 171 415 586

4Q13
41 75 116 102 73 175 291 187 430 617

1Q13
42 48 90 93 72 165 256 138 376 514

1Q14/4Q13
-21% -3% -10% -13% -1% -8% -8% -9% -3% -5%

1Q14/1Q13
-22% 49% 16% -4% 0% -2% 4% 24% 10% 14%

Kraftliner
Kraftliner sales totaled 105 thousand tonnes in 1Q14, 16% up year-on-year, led by the growth in exports, 49% up in the period, fueled by the devaluation of the real against the dollar. It is worth noting that the new sack kraft machine in Correia Pinto (SC) came on stream in November 2013, increasing sales volume. The new machine delivered excellent operating performance, reaching 80% of its nominal capacity in the first quarter after its start-up. Kraftliner list prices disclosed by FOEX averaged 564/t in 1Q14, versus 582/t in 1Q13. The average price in reais was 19% higher due to the depreciation of the Brazilian currency in 2013. On the domestic market, packaging paper prices increased thanks to higher demand for corrugated boxes and the sustained high OCC prices. As a result of sales growth and the higher exchange rate, net revenue totaled R$171 million in 1Q14, a 24% year-on-year improvement.

Coated boards
Demand for coated boards in the non-durable goods market, especially the food segment, remained flat in 1Q14, a seasonally weaker period due to the vacation period and the lower number of working days. On the other hand, according to Bracelpa, domestic demand for coated boards, excluding liquid packaging boards, fell by 3% year-on-year, due to the slowdown in certain durable goods segments. Klabins coated board sales, including liquid packaging boards, fell by 2% over 1Q13, chiefly due to the need to build up inventory before the lengthy stoppage for the debottlenecking of board machine 9 scheduled for June. Net revenue totaled R$415 million in the quarter, 10% more than in 1Q13, impacted by the higher exchange rate and an improved sales mix.

10

1Q14 Earnings Release April 24, 2014

BUSINESS UNIT CONVERSION

thousand tonnes
Total conversion R$ million Total conversion

1Q14
173 525

4Q13
175 523

1Q13
164 468

1Q14/4Q13
-1% 0%

1Q14/1Q13
6% 12%

According to the Brazilian Corrugated Boxes Association (ABPO), the market grew by 3% year-on-year, reflecting the less buoyant domestic scenario in the durable goods market, offset by sustainable growth in corrugated box shipments related to food exports. In this context, Klabin benefitted from its privileged positioning with large Brazilian food producers. Brazilian cement sales in 1Q14 increased by 6% over 1Q13 anticipating the volumes expected for the second and third quarters, according to the National Cement Industry Association (SNIC). The Northeast continues to account for a large share of this growth and, in order to serve this market, Klabin will begin production in its third bag line in Goiana (PE), increasing its production capacity in the region by 7 million bags per month. It is also worth noting the excellent performance of the new sack kraft machine installed in the Correia Pinto plant in November 2013, leading to technology and productivity gains and, consequently, reducing Klabins industrial bag supply chain costs. These markets generated a joint sales volume of 172 thousand tonnes and net revenue of R$525 million in 1Q14, 5% and 12% up on 1Q13, respectively, reinforcing the Companys strategy of increasing transfers for conversion.

Investments
R$ million
Forestry Maintenance Special projects and growth Puma Project Total

1Q14
23 55 78 347 503

1Q13
21 53 71 8 152

Klabin invested R$503 million in 1Q14, led by investments in the new pulp plant in Ortigueira (PR). Of this total, R$55 million went to the continuity of mill operations, R$23 million to forestry operations, R$78 million to special projects and expanding capacity and R$347 million to the Puma Project.

Two other major projects are scheduled for start-up in 2014. The debottlenecking of board machine in Monte Alegre will be concluded in June during the plant's scheduled maintenance stoppage. In Goiana, the concrete slabs of the new recycled paper machine have been finalized and the Company is beginning the assembly stage.

Puma Project
In 1Q14, the Company secured the main financing lines for the construction of the new pulp plant (Puma Project). In January, the Company issued debentures mandatorily convertible into Units totaling R$1.7 billion and, in February, it obtained financing of R$3.4 billion from the BNDES.

11

1Q14 Earnings Release April 24, 2014

BNDES Participaes S.A. approved an additional R$800 million through the subscription of debentures, also to be allocated to the Puma Project, whose conditions and characteristics are detailed in the Material Fact disclosed by the Company on April 22. As the funding process is virtually completed, the Company entered into agreements for 95% of the project, including construction and industrial equipment. Earthworks have begun in more than 65% of the site and the critical areas have already been released for the installation of machinery. Construction works will begin in May.

Capital Market
Level 2 and Unit Formation
In January 2014, Klabin completed its migration to the BM&FBovespa's Corporate Governance Level 2 listing segment. This has brought several benefits to minority shareholders, such as 100% tag along for all classes of shares, adhesion to the Arbitration Chamber and a guaranteed tender offer for the acquisition of shares at least at their economic value if the Company is delisted or leaves the listing segment. Subsequently, the Company created its Unit program, in which each Unit comprises one common share (ON) and four preferred shares (PN). As a result, conversion windows were opened so that shareholders who did not have this exact proportion of shares (4 PNs: 1 ON) could convert their preferred shares into common shares and vice-versa in order to form Units. After the first three conversion windows, approximately 90% of the shareholder base had adhered and, accordingly, the MSCI changed its tickers to include the Companys Units (KLBN11) and exclude its preferred shares (KLBN4). As a result, the Units, which have been traded since January under the ticker KLBN11, currently have more liquidity than the preferred shares, KLBN4, as shown in the graph below: % Liquidity KLBN11 x KLBN4
100%

80%

60%

40%

20%

0% 23-Jan

1-Feb

10-Feb

19-Feb

28-Feb

9-Mar

18-Mar

27-Mar

5-Apr

14-Apr

% Units

% PN`s

Source: Bloomberg

12

1Q14 Earnings Release April 24, 2014

Klabin, in an ongoing effort to concentrate the liquidity of its shares in the Units, announced the opening of the fourth conversion window creating an opportunity for those who have not yet adhered to the program. The request period will be open from April 24 to April 29, and the Units will be credited on May 2.

Stock Performance
Klabins Units were first traded on January 23, 2014 and have fallen by 1% since then, while the Ibovespa index appreciated by 4%. Since then, Klabins Units have been traded in all sessions of the BM&FBovespa, registering 60 thousand trades involving 60 million shares, giving average daily traded volume of R$15 million at the end of the first quarter of 2014. In 1Q14, Klabins preferred shares (KLBN4) fell by 5%, while the Ibovespa index depreciated 2%, registering 304 thousand trades involving 560 million shares (already considering the stock split) , giving average daily traded volume of R$22 million. On April 10, after the first three conversion windows for the formation of Units and the stock split (5:1) on March 20, Klabins capital stock was represented by 4,730 million shares, comprising 1,753 million common shares and 2,977 preferred shares. Klabin stock is also traded on the U.S. over-the-counter market as Level 1 ADRs, under the ticker KLBAY.

Dividends
On April 9, the Company began paying the interim dividends approved by the Annual Shareholders Meeting of March 20, 2014. The amount paid was R$98.33 per lot of one thousand common shares, R$98.33 per lot of one thousand preferred shares and R$491.65 per lot of one thousand Units, totaling R$90 million.

13

1Q14 Earnings Release April 24, 2014

Conference Call
Portuguese (with simultaneous translation)
Friday, April 25th, 2014 10:00 a.m. (Braslia) Password: Klabin Phone: (11) 3193-1133 or (11) 2820-4133 Replay: (11) 3193-1012 or (11)2820-4012 Password: 2342303# The conference call will also be broadcast via the internet. Access: http://webcall.riweb.com.br/klabin

English (with simultaneous translation)

Friday, April 25th, 2014 9:00 a.m. (EDT). Password: Klabin Phone: U.S. participants: 1-888-700-0802 International participants: 1-786-924-6977 Brazilian participants: (55 11) 3193-1133 Replay: (55 11) 3193-1012 or (55 11) 2820-4012 Password: 5176977# The conference call will also be broadcast via the internet. Access: http://webcall.riweb.com.br/klabin/english

With gross revenue of R$5.0 billion in 2013, Klabin is the largest integrated manufacturer, exporter and recycler of packaging paper in Brazil, with an annual production capacity of 1.9 million tonnes. Klabin has adopted a strategic focus on the following businesses: paper and coated boards for packaging, corrugated boxes, industrial bags and wood logs. It is the leader in all of its market segments.
The statements in this earnings release concerning the Company's business prospects, projected operating and financial results and potential growth are merely projections and were based on Management's expectations regarding the Company's future. These expectations are highly susceptible to changes in the market, the general performance of the Brazilian economy, the industry and the international markets, and are therefore subject to change.

14

1Q14 Earnings Release April 24, 2014

Appendix 1 Consolidated Income Statement (R$ thousands)

(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

1Q14
1,441,810 1,203,471 522,072 (802,852) 922,691 (98,181) (72,930) 8,957 (162,154) 760,537 5,542 (106,002) 121,236 150,533 165,767 931,846 (324,672) 607,174 176,551 (522,072) 9,388 424,404

4Q13
1,485,726 1,236,221 56,362 (845,033) 447,550 (96,777) (76,666) (1,342) (174,785) 272,765 4,860 (119,667) 64,803 (193,655) (248,519) 29,106 (7,586) 21,520 216,749 (56,362) 9,330 442,482

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

1Q14/4Q13 1Q14/1Q13
-3% -3% 826% -5% 106% 1% -5% N/A -7% 179% 14% -11% 87% N/A N/A 3102% 4180% 2721% -19% 826% 1% -4% 11% 13% 747% 12% 126% 14% 14% 22% 13% 187% 573% 19% 163% 152% 878% 230% 300% 201% 2% 747% 29% 11%

15

1Q14 Earnings Release April 24, 2014

Appendix 2 Consolidated Balance Sheet (R$ thousands)

Assets
Current Assets Cash and banks Short-term investments Securities Receivables Inventories Recoverble taxes and contributions Other receivables

mar-14
6,873,487 162,654 4,248,061 459,759 1,180,594 507,253 247,003 68,163

dec-13
4,826,148 130,836 2,599,036 249,511 1,145,154 495,852 120,050 85,709

Liabilities and Stockholders' Equity

Current Liabilities Loans and financing Suppliers Income tax and social contribution Taxes payable Salaries and payroll charges Dividends to pay REFIS Adherence Other accounts payable

mar-14
1,866,865 1,180,101 314,801 0 62,782 96,137 90,077 50,400 72,567

dec-13
1,779,513 1,124,976 345,384 18,209 43,298 127,356 0 50,400 69,890

Noncurrent Assets Long term Taxes to compensate Judicial Deposits Other receivables Other investments Property, plant & equipment, net Biological assets Intangible assets

10,935,381 124,218 92,419 163,892 472,123 6,320,677 3,751,099 10,953

10,093,348 Noncurrent Liabilities 123,684 90,969 171,322 466,581 5,909,507 3,321,985 9,300 StockholdersEquity Capital Capital reserve Revaluation reserve Profit reserve Valuation adjustments to shareholders'equity Treasury stock 7,165,502 2,271,500 1,267,416 49,091 2,677,224 1,053,329 (153,058) 17,808,868 5,392,667 2,271,500 4,419 49,269 2,159,949 1,065,437 (157,907) 14,919,496 Loans and financing Debentures Deferred income tax and social contribution Other accounts payable - Investors SCPs REFIS Adherence Other accounts payable 8,776,501 5,990,962 410,169 1,691,752 128,070 391,697 163,851 7,747,316 5,838,621 0 1,220,187 125,767 393,492 169,249

Total

17,808,868

14,919,496

Total

16

1Q14 Earnings Release April 24, 2014

Appendix 3 Loan Maturity Schedule March 31, 2014

R$ million
BNDES
Others Debentures Interests Local Currency

2Q14
102 39 -13 129 208 4 27 239 368

3Q14
99 28 -13 115 132 4 25 161 276

4Q14
108 12 -13 107 91 4 12 107 214

2014
310 79 -38 350 431 12 65 508 859

2015
501 39 93 633 421 18 117 556 1,189

2016
224 40 155 419 204 15 272 490 909

2017
185 27 155 367 479 15 296 790 1,157

2018
172 319 46 536 541 19 153 712 1,248

2019
122 90 0 212 557 24 134 715 928

2020
41 145 0 185 375 21 114 510 695

2021
16 56 0 72 265 14 279 350

2022 onwards

Total
1,579 897 410 2,886 3,399 144 1,151 4,695 7,581

9 102 0 112 127 8 135 246

Trade Finance Fixed Assets

Others Foreign Currency Gross Debt

Average Cost
R$ million
1,189
556

Average Tenor
42 months 45 months 44 months

1,248 1,157
790 712

Local Currency Foreign Currency

928
715

7.32 % p.y. 5,00 % p.y.

859
508

909
490

Gross Debt

695
633 510 536

Foreign Currency 4,695

350

368
239

276
161

419

Gross Debt 7,581

246
135

214
107 107

350

367 212 185

279

129

115

72

112

Local Currency 2,886

2Q14

3Q14

4Q14

2014

2015

2016

2017

2018

2019

2020

2021

2022 onwards

Local currency : R$ 2,9 billion Average tenor: 42 months

Foreign currency: R$ 4,7 billion Average tenor : 45 months

17

1Q14 Earnings Release April 24, 2014

Appendix 4 Consolidated Cash Flow Statement (R$ thousands)

1Q14
Cash flow from operating activities Operating activities . Net income . Depreciation and amortization . Change in fair value - biolgical assets . Depletion in biological assets .Income taxes and social contribution . Interest and exchange variation on loans and financing . Equity results . Interest, exchange variation and profit sharing of debentures . Variation of the present value of debentures . REFIS Reserve . Equity results . Results on Equity Pickup . Deferred income taxes and social contribution . Others Variations in Assets and Liabilities . Receivables . Inventories . Recoverable taxes . Marketable Securities . Prepaid expenses . Other receivables . Suppliers . Taxes and payable . Salaries, vacation and payroll charges . Other payables Net Cash Investing Activities . Purchase of property, plant and equipment . Cust biological assets planting (ex taxes) . Income of assets sale . Sale of property, plant and equipment Net Cash Financing Activities . New loans and financing . Debentures capitalization . Loan amortization . Stocks repurchase . Stocks disposal . Minority shareholders exit Increase (Decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 130,858 559,579 607,174 60,442 (522,072) 116,109 471,765 (81,216) (87,000) (12,848) 12,899 10,864 (1,085) (5,542) (8,258) (1,653) (428,721) (34,842) (11,401) (119,229) (210,248) 1,913 51,454 (68,321) 1,275 (31,219) (8,103) (501,066) (479,867) (22,878) 1,679 2,051,051 609,364 1,670,159 (233,682) (19) 5,391 (162) 1,680,843 2,729,872 4,410,715

1Q13
201,556 221,819 201,554 59,565 (61,609) 113,501 34,157 3,124 (77,943) 7,099 1,118 (823) (32,426) (25,498) (20,263) (40,896) (5,576) 55,803 5,545 3,793 (6,344) 5,614 7,745 (45,041) (906) (133,992) (130,956) (21,204) 13,068 5,100 (69,345) 156,347 (230,586) 4,894 (1,781) 2,517,312 2,515,531

18