INSTITUTIONAL PRESENTATION

1Q16

KLBN11

DEZEMBRO DE 2015
KLBN11 / KLBAY

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.

THE NEW KLABIN

INTEGRATED BUSINESS MODEL
1.5 MILLION
TPY

PULP
Long Fiber/ Fluff
400tsd tpy
Short Fiber
1.1tsd tpy

Exports

Domestic

750 TSD
TPY

HIGH YIELD
FORESTS
Pine
+
Eucalyptus

COATED
BOARDS

430 TSD
TPY

KRAFTLINER
SACK KRAFT

SALES VOLUME DESTINATION

PAPER AND PACKAGING*

610 TSD

INDUSTRIAL
BAGS

TPY

160 TSD
CORRUGATED
BOXES
RECYCLED
* Installed capacity

265 TSD
TPY

TPY

650 TSD
TPY

THE NEW KLABIN

3,5 mm tonnes
energy
fluff

HIGH

COMPETITIVENESS
LOW COSTS + HIGH QUALITY

FLEXIBILITY

PRODUCT LINE + DIFFERENT MARKETS

pulp (hardwood and

2,0 mm tonnes
conversion
papers

softwood)

conversion

LEADERSHIP AND

RESILIENTS
MARKETS

FOOD INDUSTRY + CONSUMER GOODS

papers

CONSISTENT

coated
boards

coated boards

2015

NEW

KLABIN

GROWTH

ROOTS OF COMPETIVENESS

MIX OF FIBERS

PLANTED AREA 232

TSD HECTARES
OF HIGH YIELD FOREST

141 tsd
hectares

91 tsd
hectares

LONG FIBER
Resistance

LOW AVERAGE
HAULING DISTANCE
PR with PUMA 66 Km
SC 74 Km

SHORT FIBER
Printability

PUMA COMPETITIVENESS
SOFTWOOD AND HARDWOOD

Softwood

462

447

409

Hardwood

335
288
272

PUMA

FOB
US$/TONNES
Source: Hawkins Wright april 2016

174

10

15

20

25

30

million
tonnes

million
tonnes

million
tonnes

million
tonnes

million
tonnes

million
tonnes

ANNUAL
CAPACITY

PAPER MARKETS

KRAFTLINER

* Of Brazilian installed capacity

COATED
BOARDS

Market Share*

Market Share

40%

50%

INDUSTRIAL
BAGS

CORRUGATED

Market Share

Market Share

50%

16%

PULP MARKETS

THREE KINDS OF FIBERS:

A PULP SOLUTION FOR CLIENTS

EUCALYPTUS PULP
BEKP IN BALES

PINE PULP
BSKP IN BALES

LONG FIBER FLUFF IN

REELS

CONSISTENT PERFORMANCE

19th Quarter of Growth

2,026

1.9

1,975

1.8

1,812

1,718

1,652

1,627

1,602

dec mar
13
14

1.8

sep
13

1.8

jun
13

1.8

mar
13

1.8

dec
12

1.8

sep
12

1.8

jun
12

1.8

mar
12

1.8

1.7

1,504

1.7

1,452

1.7

1,351

1.7

1,286

1.7

1,180

1,089

1.7

sep dec
11
11

1.7

1,027

1.7

1.7

939

Excluding wood million tonnes

1,424

SALES VOLUME LTM

1,562

R$ million

1,755

Adjusted EBITDA LTM

1,881

LTM: Last twelve months

jun
14

sep
14

dec
14

mar
15

jun
15

sep
15

dec
15

mar
16

NEW PUMA UNIT

ORTIGUEIRA/PR

LOW OPERATION
COST

PRODUCTION OF

ANNUAL PRODUCTION
CAPACITY

of ENERGY
SELF SUFFICIENT

1.5 MILLION
TONNES OF PULP

1.1 MILLION
TONNES OF

SHORT FIBER

400 THOUSAND
TONNES OF

LONG FIBER
PART CONVERTED TO FLUFF

270 MW
120 MW
FOR PUMA
USE

150 MW
FOR SALE IN
THE MARKET

KLABIN

PAPER
MACHINE
10
R$ million

Adjusted EDITDA LTM

PREPARED TO GROW

PAPER
MACHINE
11

COST
CUTTING
MIX
VOLUME

Puma
Unit
2,026
922

jun2011
CONSISTENT RESULTS

mar2016

2021

2016
FUTURE GROWTH

1Q16 RESULTS

SALES VOLUME, NET REVENUE AND EBITDA

SALES VOLUME

NET REVENUE

ADJUSTED EBITDA

Excluding wood- tsd tonnes

R$ million

R$ million

437
33%

1,308
30%

455
36%

1,463
35%

512

EXPORTS

461
66%

70%

64%

65%

DOMESTIC
MARKET

1Q15

1Q16

1Q15

1Q16

1Q15

1Q16

PAPER
BUSINESS UNIT

COATED BOARDS
VOLUME

KRAFTLINER

REVENUE

VOLUME

110

166

163

45%

REVENUE

46%

555

96

R$
million

35%

474

R$
million

181

R$
million

55%

244

27%

65%

54%

73%

R$
million

EXPORTS
DOMESTIC
MARKET
1Q15

1Q16

1Q15

1Q16

1Q15

1Q16

1Q15

1Q16

CONVERSION
BUSINESS UNIT
VOLUME

169
tsd
tonnes

1Q15

REVENUES

553
165
tsd
tonnes

1Q16

536

R$
million

R$
million

1Q15

1Q16

CASH COST
1Q16

UNIT
CASH COST

CASH COST
BREAKDOWN

1Q16

1Q16

R$ millions

Fuel Oil Others

2%
6%

2,108
1,943

Labor / third
parties
34%

Electricity
9%
Maintenance
materials /
stoppage
9%

Freight
11%

1Q15

1Q16

Chemicals
14%

Wood /
Fibers
15%

CAPEX

CAPEX
R$ millions

2013

2014

2015

2016E

maintenance

369

384

455

567

special projects and growth

231

319

129

95

PUMA project

99

2,242

4,053

1,883

899

2,945

4,627

2,545

total

NET DEBT AND LEVERAGE

NET DEBT AND LEVERAGE

20.000

6,2

in 03/30/16

18.000
Gross Debt
Cash
Net Debt

5,0

4,5

4,6

Net Debt (R$ million)

4,0
3,5

8.144

3,0
2,5

5.242

2,0
1,5
1,0

Net Debt/EBITDA (R$)

0,0

Net Debt / EBITDA (US$)

Mar-16

Sep-15

Jun-15

0,5
Mar-15

2.824

1,7

2,3

Dec-14

1,8

4.028

1,7

Sep-14

1,7

Jun-14

3.595

Sep-13

3.437

Jun-13

3.136

Mar-13

2,4

2.711

2,3

2,2

7.440

2,7

4.000

3,3

2,4

Mar-14

2,2

2,6

3.985

6.000

2,4

Dec-13

2,2

2,4

12.009

3,0

4,5
12.411

3,8

11.614

12.000
10.000

6,5

6,0 6,0
5,5

5,4
4,2

2.000

5,9

R$ 17.9 billion
R$ 5.9 billion
R$ 12.0 billion

14.000

8.000

6,3

Dec-15

16.000

7,0

DEBT MATURITY

5,880

R$ million

2.748
2.402
1.545

2.495
1.722

1.678
2.283

2.321

1.687

2.094

Foreign
Currency
12,508

1.803
1.300

1.468
816

Gross Debt
17,889

1.439
1.059

977
1.070

573

405

Cash
position

2Q16

858
212
129
84

278
115
163

3Q16

4Q16

651

773

390

596

2016

2017

713

2018

2019

502

2020

Local currency : R$ 5.4 billion

Average tenor: 40 months

2021

380
2022

218
323
2023

227
2024

216
1

2025/26

Foreign currency: R$ 12.5 billion

Average tenor : 51 months

Local
Currency
5,381

APPENDIX

PACKAGING MARKETS
FOCUS IN LARGE AND GROWING MARKETS
PAPER MARKETS DEMAND
(2014-2030)

Demand growth per year

4%

Tissue
KLABIN
Pulp

3%

Containerboards
KLABIN kraftliner and recycled paper

2%

Cartonboards
KLABIN coated boards

1%
Market B

0%

Market D

Market E
Sackpaper
KLABIN sack kraft and
industrial bags

-1%
-2%
Market C

-3% Market A

KLABIN MARKETS

-4%
0%
Source: POYRY

20%

40%

60%

Share of consumption in 2014

80%

100%

GLOBAL PULP
INCREASING DEMAND IN BOTH FIBERS

LONG FIBER

SHORT FIBER

CAGR +2%

CAGR +3%
28.9

30.0

31.0

32.3

33.2

34.1

35.0
23.7

24.3

24.7

25.0

2014

2015

2016

2017

25.4

26.2

26.2

2018

2019

2020

Latin America
North America
Asia/ Africa
Europe
China
2014

2015

2016

Source: Hawkins Wright

Million tons per year

2017

2018

2019

2020

CHINA

LEADS THE GROWTH

SPREADS AMONG DIFFERENT FIBERS

300

Fluff vs Short Fiber (Fluff x BHKP)

USD/TONNE

Long Fiber vs Short Fiber (NBSK x BHKP)

115

jan-13

Source: RISI

abr-13

jul-13

out-13

jan-14

abr-14

jul-14

out-14

jan-15

abr-15

jul-15

out-15

jan-16

abr-16

FLUFF
BRAZIL IS THE 3RD LARGEST MARKETOF DISPOSABLE DIAPERS IN THE WORLD

SALES OF DIAPERS FOR ADULTS

SALES OF DIAPERS FOR INFANT

R$ million

R$ million

8.468
7.864

3.377
7.297

3.042

6.790

2.733

6.272
5.768

2.430

5.279

2.133

4.645 4.827

1.861

4.000

1.605
1.005
610

2009

1.183

9.139

3.398

1.363

788

2010

2011

2012 2013

Fonte: Euromonitor

2014

2015

2016

2017

2018

2019

2020

2009

2010

2011

2012 2013

2014

2015

2016

2017

2018

2019

2020

COATED BOARDS
LOW VOLATILITY PRICES
1200
1100
1000

800
700
600
500

BHKP

Fonte: FOEX e RISI

*SBS Solid Bleached Sulfate folding carton USA

NBSK

Coated Boards*

2016

2015

2015

2014

2014

2014

2013

2013

2012

2012

2011

2011

2011

2010

2010

2009

2009

2009

2008

2008

2007

2007

2006

2006

2006

2005

2005

2004

2004

400

2004

US$/ton

900

INVESTOR RELATIONS
www.klabin.com.br/ri
invest@klabin.com.br
+55 (11) 3046-8401