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THE BIGGEST PAPERPRODUCER AND

EXPORTER IN BRAZIL

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RICARDO TADEU MARTINSPRESIDENT APIMEC/SP

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SC

OPENING REMARKS KLABIN: FABIO SCHVARTSMAN

COATED BOARDS: ARTHUR CANHISARES AND EDGARDAVEZUM

PUMA PROJECT: FRANCISCO RAZZOLINI,CRISTIANO TEIXEIRA AND JOS SOARES

EARNINGS 3Q14:FABIO SCHVARTSMAN AND SERGIO ALFAN

QUESTION AND ANWSERS

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FABIO SCHVARTSMANCEO

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boards

papers

conversion

GROWTH PERS

short f

f

en

boards

papers

conversion

2014

1.8 mm tonnes

2015 20

2.0 mm tonnes

3.5 mm

bo

pa

conv

values excluding energy volume

paperexpansions

GoianaAngatubaPiracicaba

PUMAconclusion

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COMPETITIVINESSKLABIN BOARDS

ARTHUR CANHISARESPAPER INDUSTRIAL DIRECTOR

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KLABIN COMPETITINTEGRATED PR

493 thousand haforests

211 thousand hapreserved area

242 thousand haplanted forests

paper

boards

750 thousand tpyporduction capacity

1,7 milliontonnes

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FORESTRY COMPETI

Source: Ib, Poyry and Klabin

highprodutivity

m3/ha/year

38 54

38 44

4 6

mix offibers

pine eucaliptus+

shortaveragedistance

48 KmBrazil

Nordics

Klabin

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KLABIN BOARDS: ADVA

integrated

mix of fibers

flexible

stiffness

resistance

printability

high quality printing

s

1ren

MONTE

ALEGRE

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Source: Klabin Monte Alegre

COATED BOARDS: PROAND COST RE

PRODUCTION CAPACITYthousand tonnes per year

650

2008

PM7+PM9

300

2007

PM7

700

2011

750

2014

PM9expansion

+50 mil tonnes

MONTEALEGRE

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LPB PRODUCTIfx

PM9 PM7

underconstruction

Source: Poyry

productioncapacity

productioncost

USD/tonne

CHINA

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BOARDS

MARKET

EDGARD AVEZUM JRBOARDS COMERCIAL DIRECTOR

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KLABIN

CarrierBoard

Folding BoxBoard

93%

food andbeverages

3% personalcare

4% others

LPBLiquid Packaging Board

OF

KLNERE

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17mm tonnes

other virginfiber boards

4mm tonnesLPB

2,6 mmasseptic

24mm tonnes

recycledboards

BOARDS WORLD

Source: Poyry

44%

VIRGIN FIBER B

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3,37

2,37 2,28

1,181,11

0,830,77 0,75

VIRGIN FIBER BMAIN P

3.37

IP

2.37

Stora

2.28

MWV

1.18

GraphicPackaging

1.11

BillerudKorsns

0.83

Metsa

0.77

GeorgiaPacific

0.75

Klabin

Source: Fisher, Poyry

BOARDS FOR LIQUID (AS

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KLABITHE 3

LARGPRODU

OF LP

BOARDS FOR LIQUID (ASMAIN P

Source: Fisher, Poyry

0.34

IP

0.73

Stora

0.15

MWV

0.79

BillerudKorsns

0.55

Klabin

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BOARDS FOR LIQUID (A

Source: Poyry, Euromonitor Food & Beverage Packaging

2.6mm

tonnes

2013

3.5mm

tonnes

2020

WORLD DEMANDmillion tonnes per year

2008 20092010

20112012

201320

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BOARDS GROWTH OPPORTUNITY fx

PM9 PM7

underconstruction

CHINA

Source: Poyry

PM10

emestudo

productioncapacity

productioncost

USD/tonne

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PROJECT

PUMA

FRANCISCO RAZZOLINIPROJECT AND TECHNOLOGY DIRECTOR

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PRODUCTIO

270 MW

of ENERSELF SUFFI

120 MWhavailable for

Puma use

1asm

ANNUAL PRODUCTION

CAPACITY1.5 MILLION

TONNES OF PULP

LOW OPERATIONCOST

1.1 milliontonnes ofSHORT FIBER

400 thousandtonnes ofLONG FIBERpart converted tofluff

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PUMAMONTE ALEGRE

ORTIGUEIRA

TELMACOBORBA

IMBA

PARAN

23 Km

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CURRENT

areas delivered toEPCs

98% of earthmovingconcluded

EPCs with Klabincoordination

dedicated team: strongfeedback and control

93% ofequipment

supplies,materials and

servicesconcluded

lowimpEU

COMPLETION COST

of the project completed according to the budget25,5%0%

46%

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INDUSTRIA46%

national equipments andmaterials

14%

importedequipments

14%

engineeringand otherservices

27%

civil construction and

assembly

INDU

R

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HIS

80%of workers arParana State

2572

jun2014

3371

jul2014

4471

ago2014

5542

set2014

55%of workers arclosest muni

MANAGEMENT STR

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teams

MANAGEMENT STR

directive committee

project director

technicalmanager

finance andadministration

manager

teams

administration META

planning ARCADIS

safety and health APS / SENAI

PROJ

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PROJ

WOOD PRE

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WOOD PRE

4 lines of350 msol/h eachworking with pine and eucaliptus

WOOD PRE

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picture s

WOOD PRE

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EUCALIPTUS line3.500 ADt/d

PINE l1.300 AD

2 linesof bleached

pulp

F

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F

pictur

CAUST

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C US

16.000 m3/dtwo lime owe

2 x 650 t

CAUST

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bottom og

PULP DRYING

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EUCALIPTUS line3.500 ADt/dbales (BEKP)

PINE line1.300 ADt/d

bales (BSKP)reels (fluff)

2 drying lines

colum

RECOVERY AND

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DES

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FOR THE RECOV

departing from CBC mill in Jundiai

TURBO GE

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TURBO GE

2 turbo generators x 165 MWh

TURBO GE

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TURBO GE

axis of turbine02

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LOGISTICS

CRISTIANO TEIXEIRASUPPLY CHAIN DIRECTOR

LO

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LOM

72 Kmforestry average

distance

pulp millforests

441 Kmrailway to the port

INBOUND OUTBOUND

FORESTRY

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FORESTRY

6,3 millionwood transpor

140 thoustrips per year

130vehicles

390drivers

72 Km is thforestry averagdistance

PURCHASE OF W

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PURCHASE OF W

prod

acquisition of306 wagonswith Randon

metric gauge under

construction withcapacity of 64 tonnes

PURCHASE OF LOCOM

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acquisition of

7 locomotives

with GE

UNDER CONSTRUCTION

single locomotive in southernnetwork to perform the transport fromend to end (mountains andhighlands)

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dimension of each composition

4 compositionsof 71 wagons

4,544 tonnesevery 42 horas

Prototype tests begin in nov/2014

1,250 meters

WAREHOUSE

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warehousein Km 5

warehin po

warehouseKm 5

Klabin ownsthe area

warehouse will beready for use in dec/15

maneuvercourtyard

ALL

WAREHOUSE IN TH

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Klabin ownsthe area

Static capacityof 80,000

tonnes

rail

directo theport a

Paranagu port

warehouse inthe port

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PULP

JOS SOARESKRAFTLINER COMERCIAL DIRECTOR

PULP

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long fib

f

PUDIS

Source: Hawkins Wright; RISI

52.6million tonnes

market pulp

112million tonnes

integrated pulp

164mm tvirginfiber pulp

PUMA: 6thLARGEST PU

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LARGEST MARKET PULP MILLS OF THE WORLD

Fibria Aracruz 2,340

April Riau 2,200

April Rizhao 1,700

Eldorado 1,500

CMPC Guaba 1,690

Suzano Mucuri 1,565

Klabin 1,500

Suzano Maranho 1,500

Source: Hawkins Wright (jul/14)

28.6short fiber 5

17.5

eucalyptus

WORLD DEMANmillion tonnes per year in 2

Montes del Plata1,300

million tonnes per year in 2014

4thLARGETS I

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Fonte: Hawkins Wright

WORLD CAPACITY OF FLUFFthousand tonnes per year in 2014

GP2,296

Weyco1,420

IP1,045

PumaKlabin

400

Domtar334

Resolute290

Stora255

Arauco250

Rock Tenn170

Rayonier110

UPM100

mills

converted influff mills

The only designed toproduce fluff from the start

fibra longafS

WORLD DEMAmillion tonnes per year

23,7

SBSK = pinus long fiber from U

FOCUS ON CONSUMER M

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Source: RISI Euromonitor

96%USA

50%BRA

72%ARG

MARKET PENETRATION INDISPOSABLE DIAPERS2013

high potential ofgrowth

Sophisticinnovation in high

adde

BRAZIL IS THE 3RDLARGEST MOF DISPOSABLE DIAPERS IN T

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OF DISPOSABLE DIAPERS IN T

3.3

2008

4.2

2009

4.9

2010

5.7

2011

SALES OF DIAPERS FR$ billion

Source: Euromonitor

0.4

2008

0.5

2009

0.6

2010

0.8

2011

1.0

2012

1.2

2013

SALES OF DIAPERS FORADULTSR$ billion

COMPOSITION OF D

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30 to 50% of the average

weightof a diaper is composed of fluff (20 to 40g)

SPREADS AMONG DIFFERENTCIF E US$/t

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mar13

apr13

may13

jun13

jul13

aug13

sep13

oct13

nov13

dec13

jan14

feb14

mar14

apr14

may14

long fiber x short fiber

CIF Europe US$/tonne

Source: RISI FOEX

PROJECT PUM

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EARNINGS

3Q14

ANTONIO SERGIO ACFO and IRO

FABIO SCHVARTSMANCEO

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SALES VOLUMEexcluding woodtsd tonnes

70%

30%1,313

9M13

68%

32%1,328

9M14

NET REVENR$ million

75%

25%3,363

9M13

exports

domestic

market

UNIT CA

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1,737R$/tonne

3T13

1,796R$/tonne

3T14

1,729R$/tonne

9M13

1,R$

9M

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SALES VOLUME LTMexcluding woodmillion tonnes

ADJUSTED EBITDA LTMR$ million

939

1.7

sep/11

1,089

1.7

mar/12

1,180

1.7

jun/12

1,027

1.7

dec/11

1,286

1.7

sep/12

1,351

1.7

dec/12

1,424

1.7

mar/13

1,452

1.7

jun/13

1,504

1.7

sep/13

1,562

1.8

dec/13

1,6

1.8

mar/

LTM: last twelve months

N

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2,313

sep/11

2,735

dec/11

2,674

mar/12

3,014

jun/12

3,090

sep/12

3,278

dec/12

3,136

mar/13

3,437

jun/13

3,595

sep/13

3,985

dec/13

2,7

mar/

2.4x 2.5x 2.3x 2.5x 2.4x 2.5x 2.2x2.4x 2.4x 2.6x

1.7

NET DEBTR$ million

NET DEBT/ EBITDA (LTM)

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forestry

CAPEXR$ million 9M143T14

9M143T147025

maintenance 21880

special projects andgrowth 26299

PUMA project 1.479666

total 2.029870

sack kraft machineCorreia Pinto (SC)

EXPA

debottlenecking MP9Monte Alegre (PR)

recycled paper machineGoiana (PE)

debottlenecking Angatuba aPiracicaba (SP)

PUMA project

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maintenance

CAPEXR$ million 2011

3T14296

special projects and growth 159

vale do corisco 428

PUMA project -

total 883

2012

3T14390

264

-

-

654

2013

3T14369

431

-

99

899

2014E

3T14331

531

-

2,473

3,335

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Q&A

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THE BIGGEST PAPERPRODUCER AND

EXPORTER IN BRAZIL