INSTITUTIONAL PRESENTATION

2016

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.

2
 INTEGRATED BUSINESS MODEL
DIVERSIFIED AND FLEXIBLE

TOTAL LAND FIBERS

489k hectares 3.5 million tpy

PUMA PULP
1.1mi tpy 0.4mi tpy
short fiber long fiber & fluff
pulp
PAPER

2.0 million tpy

PLANTED FORESTS COATED
230k hectares BOARDS CONVERSION
INTEGRATED 750k
PINE EUCALYPTUS 920 thousand tpy
PULP tpy
140k 90k 1.8mi tpy CORRUGATED INDUSTRIAL
hectares hectares CONTAINERBOARDS BAGS
BOXES
1.25mi tpy 750k tpy 170k tpy

RECYCLED FIBERS
265 THOUSAND TPY
* Installed capacity
 STRUCTURAL COMPETIVENESS
HIGH PRODUCTIVITY ON FIBERS

Forestry
Pine Eucalyptus m/ha/year PLANTED AREA
39 38
54 230 TSD HECTARES
44 OF HIGH YIELD FOREST
22 22 25
20
10 7 12 10
4 4 6 4

a b c d e f g a b c d e f g

Mean Annual Increment (MAI) - KLABIN

Pine Eucalyptus m3/ha/year

LOW AVERAGE 50
44
46 47 70 61
65
HAULING DISTANCE 39
42 42
60 52
58
50
PR with PUMA 66 Km 40 35
50 41
SC 74 Km 31
35
40
30
24 26
30
20 20
<69 70-89 90-04 05 06-09 10-11 12-15 16-20 21-25E <73 74-85 85-95 95-05 05-11 12-15 16-20 21-25E
* Source: Ib and Klabin
 STRUCTURAL COMPETITIVENESS
GLOBAL SOFTWOOD AND HARDWOOD CASH COST

Softwood
462
447
409 Hardwood

335
288
272

174

FOB
US$/TONNES 5 10 15 20 25 30 ANNUAL
CAPACITY
million million million million million million
tonnes tonnes tonnes tonnes tonnes tonnes

Source: Hawkins Wright april 2016

 STRUCTURAL COMPETITIVENESS
PUMA MILL EVOLUTION

PULP CASH COST

R$ per tonne

890 RAMP UP
85% OF THE MILL CAPACITY
781
768
TOTAL SALES IN 2016
797 THOUSAND TONNES

CASH COST REDUCTION

COST DILUTION ON TRACK
2Q16 3Q16 4Q16
 PAPER AND PACKAGING
LEADERSHIP IN RESILIENT MARKETS

KRAFTLINER COATED MARKETS DESTINATION

BOARDS
13%
Other
Market Share* Market Share consumer
goods Building
40% 50%
8%
Others
Food
INDUSTRIAL CORRUGATED
BAGS 67%

Market Share Market Share

50% 18%

* of Brazilian installed capacity

 PULP MARKETS
DIFFERENT FIBERS, DIFFERENT MARKETS

KLABIN, THE PULP SOLUTION

EUCALYPTUS PULP PINE PULP LONG FIBER FLUFF IN

BEKP IN BALES BSKP IN BALES REELS
 CONSISTENT PERFORMANCE
22th QUARTER OF CONSECUTIVE GROWTH

2,288
Adjusted EBITDA LTM

2,238
2,173
R$ million

2,026
1,975
1,881
SALES VOLUME LTM

1,812
1,755
Excluding wood million tonne

1,718
1,652
1,627
1,602
1,562
1,504
1,452
1,424
1,351
1,286
1,180
1,089
1,027
939

2.7
2.4
2.0
1.9
1.8

1.8

1.8

1.8

1.8

1.8

1.8

1.8
1.8
1.7

1.7

1.7

1.7

1.7

1.7

1.7
1.7

1.7

sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec mar jun sep dec
11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16
LTM: Last twelve months
 INCREASING FLEXIBILITY AND
INTEGRATION
NEW CORRUGATED BOXES UNITS
HEVI

Location: Manaus (AM)

INCREASE OF
KLABIN PRESENCE
IN DIFFERENT REGIONS

NO CLIENTS OVERLAP
NEW MARKETS
EMBALPLAN

Location : Rio Negro (PR) 70 THOUSAND TONNES

CAPACITY INCREASE
 SHORT TERM STRATEGY
FOCUS ON DELEVERAGE

OPERATIONAL PERFORMANCE
CASH COST REDUCTION AND
FINALIZE RAMP UP
IMPROVE CASH
GENERATION
STRONG DOMESTIC POSITION
CONVERSION AND FLUFF MARKET AND

REDUCE
LEVERAGE
CAPEX
FOCUS ON MAINTENANCE AND
HIGH RETURN PROJECTS
 FUTURE GROWTH
EXPANDING THE INTEGRATED BUSINESS MODEL

TOTAL LAND FIBERS PAPER AND CONVERSION

489k hectares 3.5 million tpy FUTURE GROWTH
PUMA PULP
1.1mi tpy
short fiber
0.4mi tpy
long fiber & fluff
FOCUS IN PAPER AND
pulp

PACKAGING
PLANTED FORESTS COATED
230k hectares BOARDS
INTEGRATED 750k
PINE EUCALYPTUS
PULP tpy
140k 90k 1.8mi tpy
hectares hectares CONTAINERBOARDS CORRUGATED INDUSTRIAL
1.25mi tpy BOXES BAGS
750k tpy 170k tpy

RECYCLED FIBERS
265 THOUSAND TPY
* Installed capacity
2016 RESULTS
 SALES VOLUME, NET REVENUE
AND EBITDA
SALES VOLUME NET REVENUE ADJUSTED EBITDA
Excluding wood- tsd tonnes R$ million R$ million

7,091
2,650 40%
5,688
50%
1,833 32% 2,287
EXPORTS
34% 1,975
68% 60%
66% 50%
DOMESTIC
MARKET

2015 2016 2015 2016 2015 2016

 PAPER
BUSINESS UNIT

COATED BOARDS KRAFTLINER

SALES VOLUME NET REVENUE SALES VOLUME NET REVENUE
tsd tonnes R$ million tsd tonnes R$ million

418
693 399
685 72% 858
42% 42% 2,190 75% 799
2,096

58% 58%
EXPORTS
28% 25%
DOMESTIC
MARKET
2015 2016 2015 2016 2015 2016 2015 2016
 CONVERSION
BUSINESS UNIT

SALES VOLUME NET REVENUE

tsd tonnes R$ million

690 708 2,381

2,251

2015 2016 2015 2016

 PULP
NEW BUSINESS UNIT

SALES VOLUME NET REVENUE

tsd tonnes R$ million

797
87% 1,247

EXPORTS

0
13% DOMESTIC 0
MARKET
2015 2016 2015 2016
 CASH COST

UNIT CASH COST

CASH COST BREAKDOWN
2016
R$/tonne 2016

Others
Fuel Oil 5%
Electricity 3%
7% Labor / third
2,041 parties
Maintenance /
36%
1,831 stoppage
9%

Freight
12%

Chemicals Wood /
13% Fibers
2015 2016 15%
 CAPEX

CAPEX
R$ million 2013 2014 2015 2016

maintenance 369 384 455 541

special projects and growth 231 319 129 320

PUMA project 99 2,242 4,053 1,707

total 899 2,945 4,627 2,567

 NET DEBT AND LEVERAGE
in12/31/16
Gross Debt R$ 18.5 billion
Cash NETR$
DEBT AND LEVERAGE
6.5 billion
17,000 Net Debt R$ 12 billion 7.0
6.2 6.3 5.9 6.5
15,000 5.2 5.1 5.2 6.0
5.5
4.5 5.0
4.2
13,000 4.5
4.0

12,411
3.0 3.5

12,009

12,005
11,000 2.6

11,614

11,473
11,382
2.4 3.0
1.7 1.7 2.5
9,000 2.0
1.5

8,144
7,000 1.0

7,440
0.5
0.0
5,000 -0.5

5,242
-1.0
3,985

4,028
3,000 -1.5
-2.0
2,711

2,824

1,000 -2.5
-3.0
-3.5

Dec-16
Sep-14

Sep-15

Sep-16
Dec-13

Dec-14

Dec-15
Jun-14

Jun-15

Jun-16
Mar-14

Mar-15

Mar-16
(1,000) -4.0

Net Debt (R$ million) Net Debt/EBITDA (R$)

 R$ million
Cash position
6,464
DEBT MATURITY
SOLID CASH POSITION

Foreign
Currency
13,133

Gross Debt
18,469

Local
Currency
5,336
Dec/2016

Local currency: R$ 5,3 billion Foreign currency: R$ 13,1 billion

Avarege tenor: 39 months Avarege tenor : 46 months
APPENDIX
 GLOBAL PULP
INCREASING DEMAND IN BOTH FIBERS

SHORT FIBER LONG FIBER

CAGR +2%
CAGR +3%
34.1 35.0 25.4 26.2 26.2
32.3 33.2 24.3 24.7 25.0
31.0 23.7
28.9 30.0
Latin America

North America

Asia/ Africa

Europe

China

2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020

Source: Hawkins Wright CHINA LEADS THE GROWTH

Million tonnes per year
 FLUFF
BRAZIL- 3RD LARGEST MARKET OF DISPOSABLE DIAPERS IN THE WORLD

SALES OF DIAPERS FOR ADULTS SALES OF DIAPERS FOR INFANT

R$ million R$ million
9,139
8,468
3,377 7,864
3,042 7,297
6,790
2,733 6,272
2,430 5,768
5,279
2,133 4,827
1,861 4,645
4,000
1,605
3,398
1,363
1,183
1,005
788
610

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source : Euromonitor
 PACKAGING MARKETS
FOCUS IN LARGE AND GROWING MARKETS
PAPER MARKETS DEMAND
Demand growth per year
(2014-2030)
4%
Tissue
KLABIN
3% Pulp
Containerboards
KLABIN kraftliner and recycled paper Cartonboards
2% KLABIN coated boards

1%

Market B Market D Market E

0%
Sackpaper
KLABIN sack kraft and
-1% industrial bags

-2%
Market C
-3% Market A
KLABIN MARKETS
-4%
0% 20% 40% 60% 80% 100%

Share of consumption in 2014

Source: POYRY
 US$/ton
1100
1200

400
500
600
700
800
900
1000

Jan-04
May-04
Sep-04
Jan-05
May-05

Source : FOEX e RISI

Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
BHKP May-08
Sep-08

*SBS Solid Bleached Sulfate folding carton USA

Jan-09
May-09
Sep-09
NBSK

Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
Coated Boards
*

May-12
Sep-12
Jan-13
May-13
Sep-13
Jan-14
May-14
Sep-14
Jan-15
May-15
Sep-15
Jan-16
May-16
Sep-16
COATED BOARDS
LOW VOLATILITY PRICES
 SUSTAINABILITY PERFORMANCE

WWF Environmental
Paper Company Index

Disclosing environmental footprint since 2006

4rd CONSECUTIVE YEAR
2015 BEST PRACTICE OF NATURAL CAPITAL One of the most sustainable WWF EPECI recognizes transparency
MANAGEMENT companies of Brazil and continual improvement
The company that advanced most in fighting
deforestation in supply chain 2014

Climate Change Score

Not
95 disclosed 82%
81
2015
Klabin
55 59
ISE 74,5%
39
2013

2013 2014 2015 2016

2011 2012 2013 2014 2015 2016

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