1

2Q14 Earnings Release July 30, 2014

JULY 30, 2014

KLABIN
Market cap R$ 11 billion

KLBN11
Closing price R$11.10
Daily traded vol. 2Q14 R$28 million



CONFERENCE CALL
Portuguese (with simultaneous
translation)
Thursday, 7/31/14, 10 a.m. (EDT)
Phone: (11) 3193-1133 - Password:
Klabin
webcall.riweb.com.br/klabin



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

NET REVENUE

R$1,151
million
Net revenue of R$1,151 million, 5% up on 2Q13. In 6M14, net
revenue totaled R$2,355 million, 9% more than in 6M13;
SALES VOLUME

419 thousand
tonnes
Sales volume came to 419 thousand tonnes, impacted by the
stoppage for maintenance and the remodeling of Paper Machine 9
in Monte Alegre (PR). First-half sales volume totaled 861 thousand
tonnes, virtually identical to the 6M13 figure;
ADJUSTED EBITDA

R$334 million
Adjusted EBITDA of R$334 million, with a margin of 29%, 8% up
on 2Q13. In 6M14, EBITDA grew by 9% to R$758 million;
DEBT

1.7 x
Net debt/EBITDA ratio of 1.7 x at the close of June, identical to the
1Q14 figure;
CAPACITY INCREASE

Coated Boards
In June, Klabin installed equipment to increase Paper Machine 9s
coated board capacity by 50 thousand tonnes per year.

2Q14 Earnings Release
July 30, 2014
EBITDA of R$334 million in 2Q14 and R$758 million in
6M14, 9.4% up on 6M13
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 statements by equity income. Adjusted EBITDA is in accordance with CVM Instruction 527/12.
Notes:
Due to rounding, some figures in tables and graphs may not result in a precise sum.
The Adjusted EBITDA margin is calculated on pro-forma net revenue, which includes revenue from Vale do Corisco.
LTM Last twelve months


2Q14/1Q14 2Q14/2Q13 6M14/6M13
Sales volume (thousand tonnes) 419 443 429 -5% -2% 861 860 0%
% Domestic Market 71% 65% 70% 6 p.p. 1 p.p. 68% 70% -2 p.p.
Net Revenue 1,151 1,203 1,094 -4% 5% 2,355 2,160 9%
% Domestic Market 78% 72% 75% 6 p.p. 3 p.p. 75% 76% -1 p.p.
Adjusted EBITDA 334 424 309 -21% 8% 758 693 9%
Adjusted EBITDA Margin 29% 35% 28% -6 p.p. 1 p.p. 32% 32% 0 p.p.
Net Income (loss) 244 607 (130) -60% N/A 851 72 1086%
Net Debt 2,824 2,711 3,437 4% -18% 2,824 3,437 -18%
Net Debt / EBITDA (LTM) 1.7x 1.7x 2.4x 1.7x 2.4x
Capex 653 505 194 29% 237% 1,158 346 235%
6M14 6M13 R$ million 2Q14 1Q14 2Q13



2
2Q14 Earnings Release July 30, 2014
Summary
In 2Q14, the Brazilian economy continued to show
signs of fiscal deterioration, low economic growth
and high inflation. The Brazilian Central Bank,
reflecting a certain indetermination between
pursuing inflationary control or increased
economic growth, maintained the SELIC
benchmark interest rate at 11% p.a. at the last
meetings of the Monetary Policy Committee
(Copom).
Abroad, uncertainties regarding an upturn in U.S.
interest rates, together with the political tension in
Ukraine and the conflict in the Gaza Strip have led
to a more cautious climate in the international
markets. The Eurozone has still not given any clear
signs of recovery, leading to GDP growth
expectations of around 1% in 2014, according to
the International Monetary Fund (IMF),
accompanied by alarmingly low inflation.
Similarly to the vast majority of consumption
sectors in the country, the paper and packaging
markets in general were negatively affected in the
second quarter both by the weaker economy and
the impact of the World Cup. Preliminary figures
from the Brazilian Corrugated Boxes Association
(ABPO) indicate that the corrugated box market fell
by 3% year-on-year in 2Q14, while volume in the
first half as a whole remained flat. Data from the
Brazilian Association of Pulp and Paper Producers
(Bracelpa) indicate that demand for coated boards,
excluding liquid packaging boards, fell by 2% in the
both the second quarter and first half. Some
industries, however, especially beverages and
certain food segments, benefited from the World-
Cup-driven upturn in demand.
In the international kraftliner market, the
downward price trajectory in the opening months
of the year lost momentum in the second quarter
with prices in Europe averaging 552/t, according
to the FOEX index. However, average prices in reais
increased by 6% over 2Q13 due to the exchange
variation.












The focus on the most resilient segments of the
Brazilian paper and packaging market was a
determining factor in Klabins sales throughout
the quarter. Even with the economic slowdown,
sales remained strong, reaching 296 thousand
tonnes, raising the domestic markets share of
total sales to 71% in 2Q14, versus 70% in 2Q13
and 65% in 1Q14.
On the other hand, in May and June, the annual
scheduled maintenance stoppage and the
remodeling of Paper Machine 9 in order to
Source: ABPO Source: Bracelpa
6M13
264
6M14 6M13
Kraftliner ( / ton)
6M14
Source: FOEX
Kraftliner ( R$ / ton)
Brazilian corrugated shipments
(thousand tonnes)
Brazilian coated boards shipments
(thousand tonnes)
Kraftliner brown 175 g/m
2
list price
(/tonneand R$/tonne)
258
6M13 6M14
1,653 1,657
558
1,561
585
1,755
0%



3

2Q14 Earnings Release July 30, 2014

increase coated board capacity in Monte Alegre
(PR) impacted the sales volume of this product,
especially the portion routed to the export
market. There was an additional production loss
of around 15 thousand tonnes of coated boards as
a result of the remodeling, which had a significant
effect on the companys 2Q14 result.
However, despite the decline in sales volume and
the less favorable domestic economic scenario,
net revenue totaled R$1,151 million in the second
quarter, 5% up on 2Q13, and R$2,355 million in
the first half, 9% more than in 6M13. Given solid
sales revenue, based on the improved product
and market mix, Klabin continued to record
sustainable operating cash flow growth.
EBITDA totaled R$334 million in 2Q14 and R$758
million in the first six months, 9% up year-on-year,
accompanied by a margin of 32%. As a result, LTM
EBITDA came to R$1,627 million, recording its 12
th

consecutive quarterly upturn.

















Exchange Rate
In 2Q14, the Central Banks interventions, together with the uncertainties surrounding the Brazilian economic
scenario, helped reduced exchange rate volatility, and the R$/US$ rate continued to hover between
R$2.20/US$ and R$2.25/US$ for the most of the period. The rate closed the quarter at R$2.20/US$, real
appreciation of 3% over 1Q14, while the average rate stood at R$2.23/US$, 6% down on the previous three
months. In the first half, the average rate was 13% higher than in 6M13.



2Q14/1Q14 2Q14/2Q13 6M14/6M13
Average Rate 2.23 2.37 2.07 -6% 8% 2.30 2.03 13%
End Rate 2.20 2.26 2.22 -3% -1% 2.20 2.22 -1%
Source: Bacen
R$ / US$ 2Q14 1Q14 6M14 6M13 2Q13
Sales Volume LTM
(excluding wood million tonnes)
Adjusted EBITDA LTM
(R$ million)
922
939
1,027
1,089
1,180
1,286
1,351
1,424
1,452
1,504
1,562
1,602
1,627
400
600
800
1,000
1,200
1,400
1,600
1,800
Ajusted EBITDA LTM
(R$ million)
1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14



4

2Q14 Earnings Release July 30, 2014

Operating and financial performance
Sales Volume
Second-quarter sales volume, excluding wood, fell by 2% year-on-year to 419 thousand tonnes, impacted by
the additional 10-day stoppage for the installation of equipment to increase the capacity of Paper Machine 9
in the Monte Alegre plant.
Despite the shrinkage of the Brazilian paper and packaging markets in the quarter reported by Bracelpa and
ABPO, Klabin benefited from the flexibility of its product line and its exposure to more resilient sectors, such
as food and beverages, and domestic sales remained flat over 2Q13 at 296 thousand tonnes.
As a result, given the constraints on available volume and the recent appreciation of the real, 2Q14 export
sales volume fell by 6% year-on-year to 123 thousand tonnes, equivalent to 29% of total period sales, versus
30% in 2Q13 and 35% in 1Q14.
First-half sales volume came to 861 thousand tonnes, in line with 6M13. Exports accounted for 32% of the
total, versus 30% in the same period last year, still impacted by the Companys 1Q14 strategy of routing a
higher volume of sales abroad in order to take advantage of the higher exchange rate.

Net Revenue
Second-quarter net revenue, including wood, increased by 5% over 2Q13 to R$1,151 million, influenced by
the period product and market mix.
Despite stable volume and the weaker Brazilian economic scenario, 2Q14 domestic market net revenue
increased by 8% year-on-year to R$894 million, thanks to the larger share of higher added-value products in
the sales mix, accounting for 78% of total 2Q14 sales, versus 75% in 2Q13 and 72% in 1Q14. On the other
hand, export revenue fell by 4% over 2Q13 to R$257 million, due to lower volume.
Domestic market Exports
Sales volume
(excluding wood tsd tonnes)
Coated
boards
36%
Corrugated
boxes
33%
Kraftliner
22%
Industrial
bags
8%
Others
1%
Sales volume by product
6M14
6M13 6M14
68%
30%
70%
32%
860
861



5

2Q14 Earnings Release July 30, 2014

First-half net revenue totaled R$2,355 million, 9% up year-on-year, even though sales volume remained flat,
reflecting the Companys ability to adapt to different economic scenarios, benefiting from the product mix in
its various markets.
Pro-forma net revenue, including Klabins proportional share of revenue from Florestal Vale do Corisco S.A.,
came to R$1,165 million in 2Q14 and R$2,383 million in 6M14.

Operating Costs and Expenses
The unit cash cost, including fixed and variable costs and operating expenses, totaled R$1,975/t in 2Q14, 7%
higher than in 2Q13, impacted by the annual scheduled maintenance stoppage and the remodeling of Paper
Machine 9 in the Monte Alegre plant. The installation of equipment to increase annual capacity and the
consequent reduction in the number of working days affected the apportionment of fixed costs in the tonnes
produced in the quarter.
In addition to the non-recurring impacts on costs throughout the quarter, inflationary pressure on the cost of
inputs, including OCC, chemicals, fibers and freight, also pressured the cash cost. In 6M14, the unit cash cost
came to R$1,876/t, 9% up year-on-year.







The cost of goods sold (COGS) came to R$942 million in 2Q14, 17% up on 2Q13, due to the above-mentioned
increase in the unit cash cost and the higher depletion of the fair value of biological assets in the quarter. In
6M14, COGS totaled R$1,745 million, 14% more than in 6M13.
Net revenue
(R$ million)
Coated
boards
34%
Corrugated
boxes
32%
Kraftliner
13%
Industrial
bags
12%
Wood logs
8%
Others
1%
Net revenue by product
6M14
Domestic market Exports
6M13 6M14
75%
24%
76%
25%
2,160
2,355
Labor / third
parties
32%
Wood / fibers
16%
Chemicals
15%
Freight
11%
Maintenance
material/
stoppages
12%
Energy
11%
Others
3%
Cash cost breakdown
6M14
Labor / third
parties
32%
Wood / fibers
15%
Chemicals
15%
Freight
11%
Maintenance
material/
stoppages
8%
Energy
11%
Others
8%
Cash cost breakdown
6M13



6

2Q14 Earnings Release July 30, 2014

Selling expenses totaled R$87 million, 1% higher than in 2Q13. Despite the higher nominal value of these
expenses, which are mostly variable, they represented only 7.6% of net revenue in 2Q14, versus 7.9% in
2Q13. In 6M14, selling expenses totaled R$186 million, 7% up on the first six months of the year before.
Administrative expenses amounted to R$73 million, 9% up year-on-year, due to the impact of the collective
bargaining agreements in 2013 and, especially, the increase in provisions for profit sharing due to the
Companys improved results. Year-to-date administrative expenses totaled R$146 million, 11% up on 6M13.
Other operating revenue (expenses) resulted in revenue of R$17 million in 2Q14. In The first half, this line
was positive by R$26 million.
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$130 million in 2Q14, fueled by
the growth of forests that were recognized at their fair value. The effect of the depletion of the fair value of
biological assets on the cost of goods sold was R$176 million in 2Q14.
As a result, the non-cash impact of the variation in the fair value of biological assets on 2Q14 operating
income (EBIT) was a loss of R$46 million.
Operating Cash Flow (EBITDA)

Despite lower sales volume due to the remodeling of the coated board machine in Monte Alegre, the
slowdown in Brazilian economic activity, and the appreciation of the real throughout the quarter, Klabin
maintained its operating cash flow growth trajectory, underlining the flexibility of its product mix and the
resilience of the markets where it operates.
As a result, despite inflationary pressure on production costs, operating cash flow (adjusted EBITDA) came to
R$334 million, 8% more than in 2Q13, with an adjusted EBITDA margin of 29%.
In the first half, EBITDA stood at R$758 million, 9% up year-on-year, with a margin of 32%.
This amount includes Klabin's share of Florestal Vale do Corisco Ltda., which came to R$10 million in 2Q14
and R$19 million in 6M14.
Indebtedness and Financial Investments
Gross debt stood at R$8,346 million on June 30, R$765 million more than at the close of 1Q14, chiefly due to
the Companys 7
th
debenture issue totaling R$800 million, which was paid in in June. Of this total, R$4,627
million, or 55% (US$2,101 million) was denominated in dollars, primarily export pre-payment facilities.

2Q14/1Q14 2Q14/2Q13 6M14/6M13
Net Income (loss) 244 607 (130) -60% N/A 851 72 1086%
(+) Income taxes and social contribution 96 325 (79) -70% N/A 421 2 21702%
(+) Net Financial Revenues (138) (166) 418 -17% N/A (303) 401 N/A
(+) Depreciation, amortization, depletion 258 177 163 46% 58% 434 336 29%
Adjustments according to IN CVM 527/12 art. 4
(-) Biological assets adjustment (130) (522) (70) -75% 84% (652) (132) 394%
(-) Equity Pickup (6) (6) (1) -3% 325% (11) (2) 419%
(+) Vale do Corisco 10 9 8 2% 12% 19 16 20%
Ajusted EBITDA 334 424 309 -21% 8% 758 693 9%
Adjusted EBITDA Margin 29% 35% 28% -6 p.p. 1 p.p. 32% 32% 0 p.p.
N / A - Not applicable
Note: EBITDA margin is calculated considering the pro forma net revenue, which includes Vale do Corisco
1Q14 2Q13 6M14 6M13 R$ million 2Q14



7

2Q14 Earnings Release July 30, 2014

Cash and financial investments closed the quarter at R$5,522 million, R$652 million more than in 1Q14. This
amount exceeds financing amortizations in the next 59 months and was reinforced by the above-mentioned
debenture issue.
Consolidated net debt totaled R$2,824 million on June 30, R$113 million more than the R$2,711 million
recorded on March 31, influenced on the one hand by expenditures from new investments in the quarter,
and on the other by the positive impact of the exchange variation on dollar-denominated debt and the
Companys operating cash flow. As a result, the net debt/adjusted EBITDA ratio remained at 1.7x, identical to
the 1Q14 figure.
The average maturity term came to 42 months (39 months for local-currency financing and 44 months for
foreign-currency financing). Short-term debt accounted for 14% of the period total and borrowing rates in
local and foreign currency averaged 7.00% p.a. and 5.01% p.a., respectively.


2
,
0
0
2

1
,
8
9
3

2
,
3
1
3

2
,
7
3
5

2
,
6
7
4

3
,
0
1
4

3
,
0
9
0

3
,
2
7
8

3
,
1
3
6

3
,
4
3
7

3
,
5
9
5

3
,
9
8
5

2
,
7
1
1

2
,
8
2
4

2.1
2.0
2.4
2.5
2.3
2.5
2.4
2.5
2.2
2.4 2.4
2.6
1.7 1.7
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
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 Jun-14
Net debt
(R$ million)
Net Debt Net Debt / EBITDA (LTM)
Debt (R$ million)
Short term
Local currency 566 7% 514 7%
Foreign currency 634 7% 666 9%
Total short term 1,200 14% 1,180 16%
Long term
Local currency 3,153 38% 2,372 31%
Foreign currency 3,993 48% 4,029 53%
Total long term 7,146 86% 6,401 84%
Total local currency 3,719 45% 2,886 38%
Total foreign currency 4,627 55% 4,695 62%
Gross debt
8,346 7,581
(-) Cash 5,522 4,870
Net debt
2,824 2,711
Net debt / EBITDA (LTM) 1.7x 1.7x
06/30/2014 03/31/2014



8

2Q14 Earnings Release July 30, 2014

Financial Result
Financial expenses totaled R$97 million in2Q14, 13% down on 2Q13, and R$203 million in the first-half of
2014, same level observed in the first-half of 2013.
Financial revenue came to R$133 million, 181% up year-on-year and 10% more than in 1Q14, impacted by
increased gains from financial investments following the upturn in the Companys cash position and higher
Brazilian interest rates.
Consequently, the 2Q14 financial result, excluding the exchange variation, was positive by R$36 million,
versus a negative R$64 million in 2Q13. The first-half financial result was positive by R$51 million, versus a
negative R$107 million in 6M13.
The exchange rate closed the quarter 3% down on the end of March 2014. As a result, the net foreign
exchange variation was positive by R$102 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.


Business Performance
Consolidated information by business unit in 6M14:

BUSINESS UNIT FORESTRY

The export of wood products by the customers of Klabin, basically plywood and moldings, continued to be
driven by the growth of the indices presented by the North American construction during the 2Q14.
Log sales to third parties climbed by 29% over 2Q13, reaching 887 thousand tonnes. Higher sales volume
pushed up net revenue from wood sales to R$95 million, 26% up on 2Q13. First-half log sales came to 1,584
thousand tonnes, 19% more than in 6M13 and revenue stood at R$179 million, 24% up year-on-year.
R$ million Forestry Papers Conversion Consolidation Total
Net revenue
Domestic market 175 597 987 - 1,759
Exports - 520 76 - 596
Third part revenue 175 1,117 1,063 - 2,355
Segments revenue 273 531 7 (811) -
Total net revenue 448 1,648 1,070 (811) 2,355
Change in fair value - biological assets 652 - - - 652
Cost of goods sold (564) (1,117) (878) 814 (1,745)
Gross income 536 531 192 3 1,262
Operating expenses (21) (158) (107) (8) (294)
Operating results before financial results 515 373 85 (5) 968
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 in the period.

2Q14/1Q14 2Q14/2Q13 6M14/6M13
Wood 887 697 689 27% 29% 1,584 1,330 19%
R$ million
Wood 95 84 75 13% 26% 179 144 24%
6M13 6M14 2Q13 thousand tonnes 2Q14 1Q14



9

2Q14 Earnings Release July 30, 2014

BUSINESS UNIT PAPER

Kraftliner
Kraftliner sales in 2Q14 moved up by 10% year-on-year to 86 thousand tonnes, fueled by exports, which
totaled 52 thousand tonnes, 19% more than in 2Q13.
The upturn in sales volume also reflects the expansion of paper capacity from the new sack kraft machine in
Correia Pinto (SC), which began operations at the end of 2013. The machine continued its learning curve in
the quarter and has been recording an excellent operating performance.
Kraftliner list prices disclosed by FOEX averaged 552/t in 2Q14, versus 587/t in 2Q13, while the average
price in reais climbed by 6% due to the period currency devaluation. On the domestic market, OCC prices
remained high, sustaining packaging paper prices.
Thanks to the upturn in sales volume and the impact of the higher exchange rate on exports, net revenue
increased by 12% over 2Q13 to R$134 million. First-half net kraftliner sales totaled R$305 million, 18% up
year-on-year.
Coated boards
Second-quarter coated board output was affected by the 10-day general maintenance stoppage and the
remodeling of Paper Machine 9 in the Monte Alegre plant, which reduced the sales volume of this product.
Installing the equipment to add 50 thousand tonnes per year in coated board capacity took 10 days and cut
coated board production by around 15 thousand tonnes. It is worth noting, however, that the machine
recorded an excellent operating performance throughout July.
According to Bracelpa, the weakening of certain economic sectors in 2Q14 led to a 2% decline in domestic
demand for coated boards, excluding liquid packaging boards. However, Klabins own sales were sustained by
the non-durable goods market, especially the food segment. Domestic coated board sales volume, including
liquid packaging boards, came to 86 thousand tonnes in 2Q14, 3% up on 2Q13. As a result, due to the
production constraints and Klabins increased focus on the domestic market, coated board exports fell by
19% over 2Q13 to 63 thousand tonnes.
In 2Q14, the improved sales mix and the impact of the higher average exchange rate on exports offset the 7%
year-on-year reduction in total volume, and net revenue remained flat at R$377 million. Following the same
tendency, first-half net revenue moved up by 5%, despite the 5% decline in sales volume.

2Q14/1Q14 2Q14/2Q13 6M14/6M13
Kraftliner DM 35 33 35 6% -1% 67 77 -12%
Kraftliner EM 52 72 44 -28% 19% 124 92 34%
Total Kraftliner 86 105 78 -17% 10% 191 169 13%
Coated boards DM 86 89 84 -3% 3% 175 176 -1%
Coated boards EM 63 73 78 -13% -19% 136 150 -10%
Total Coated boards 149 161 161 -8% -7% 311 326 -5%
Total Paper 236 266 239 -11% -2% 501 495 1%
R$ million
Kraftliner 134 171 120 -22% 12% 305 257 18%
Coated boards 377 415 376 -9% 0% 792 752 5%
Total Paper 511 586 495 -13% 3% 1,097 1,009 9%
6M14 2Q13 6M13 thousand tonnes 2Q14 1Q14



10

2Q14 Earnings Release July 30, 2014

R$ million 2Q14 6M14
Forestry 22 45
Maintenance 85 149
Special projects and growth 82 151
Puma Project 464 813
Total 653 1,158
BUSINESS UNIT - CONVERSION

According to ABPO, the corrugated box market shrank by 3% year-on-year in 2Q14, reflecting the less
buoyant domestic scenario and the impact of events such as the World Cup and the lower number of working
days. However, certain non-durable goods sectors, such as beverages and frozen food, recorded growth. In
this context, Klabin continued to benefit from its strategic commercial positioning with the countrys leading
food producers.
Regarding the industrial bags market, the pace of sales of cement in Brazil published by SNIC also declined 3%
in April and May compared to the same period of 2013.
Given that the sluggish domestic economic activity was offset by Klabins efficient sales strategy and its
privileged positioning with large clients, converted product sales totaled 178 thousand tonnes in 2Q14, in line
with 2Q13. Year-to-date sales volume stood at 351 thousand tonnes, 2% up on year-on-year.
As a result of the price hikes at the end of 2013, net revenue climbed by 5% over 2Q13 to R$534 million. First-
half net revenue came to R$1,058 million, 8% upon 6M13.

Investments
Klabin invested R$653 million in 2Q14, led by
investments in the new pulp plant in Ortigueira (PR). Of
this total, R$85 million went to the continuity of mill
operations, R$22 million to forestry operations, R$82
million to special projects and capacity expansions, and
R$464 million to the Puma Project. In the first half,
investments totaled R$1,158 million, mainly related to
expenditures with the Puma Project, which totaled R$813 million.
In June, during the maintenance stoppage, the Company concluded the remodeling of the board machine in
Monte Alegre, which now has an additional capacity of 50 thousand tonnes per year. The next expansions will
involve the new recycled paper machine in Goiana, with a capacity of 110 thousand tonnes per year, and the
debottlenecking of the Piracicaba and Angatuba machines, which will jointly add 50 thousand tonnes of
recycled paper per year.
Puma Project
The Puma Project works moved ahead on schedule in 2Q14, despite strong rain in the South of the country.
The critical earth leveling phase was concluded, enabling the arrival of industrial equipment at the plant. By
the end of June, there were around 2,500 people working at the location, a number which is expected to
reach 5,000 by year-end. Since the beginning of 2013, the project has absorbed investments of R$911 million.

2Q14/1Q14 2Q14/2Q13 6M14/6M13
Total conversion 178 173 179 2% -1% 351 343 2%
R$ million
Total conversion 534 525 508 2% 5% 1,058 977 8%
6M14 6M13 2Q14 1Q14 thousand tonnes 2Q13



11

2Q14 Earnings Release July 30, 2014

After all the industrial equipment suppliers for the new pulp plant had been contracted, in 2Q14 the
Company contracted the construction firms for the effluent treatment station, turbogenerators and wagon
supply.
In regard to logistics infrastructure, the highways through which part of output will be transported are
scheduled for completion by mid-2015. Work on the railway that will carry remaining production to the port
of Paranagu will begin in October 2014, with delivery scheduled for the first quarter of 2016.

Capital Market
Shares
Klabins Units (KLBN11) fell by 4% in 2Q14, while the Ibovespa index appreciated by 5%. Klabins Units were
traded in all sessions of the BM&FBovespa, totaling 290 thousand trades involving 144 million shares, giving
average daily traded volume of R$28 million at the end of the period. The Units have been traded since
January 2014 and are currently substantially more liquid than the Companys preferred shares, as shown in
the graph below:
% Liquidity KLBN11 x KLBN4

Following closure of the four conversion windows for the formation of Units and the 5:1 stock split on March
20, Klabins capital stock was represented by 4,730 million shares, 1,769 million of which common shares and
2,961 million preferred shares. Klabins shares are also traded on the U.S. over-the-counter market as Level 1
ADRs, under the ticker KLBAY.
Fixed Income
Subsequent Event Notes Issue
On July 9, 2014, Klabin, through its subsidiary Klabin Finance S.A., concluded a Notes issue maturing in 10
years, totaling US$500 million and yielding 5.25% p.a. The operation gave the Company access to a new
financing source and extended the average term of its debt from 42 to 53 months. The Notes are traded on
the secondary market of the Luxembourg Stock Exchange.
0%
20%
40%
60%
80%
100%
Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14
% Units % PN`s



12

2Q14 Earnings Release July 30, 2014

Conference Call
Portuguese (with simultaneous
translation)
Thursday, July 31, 2014, at 11:00 a.m. (Braslia).
Password: Klabin
Phone: (11) 3193-1133 or (11) 2820-4133
Replay: (11) 3193-1012 or (11) 2820-4012 Password:
2133982#
The conference call will also be broadcast via the internet.
Access: http://webcall.riweb.com.br/klabin

English (with simultaneous
translation)
Thursday, July 31, 2014 at 10:00 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.

13



2Q14 Earnings Release July 30, 2014

Appendix 1
Consolidated Income Statement (R$ thousands)









2Q14/1Q14 2Q14/2Q13 6M14/6M13
Gross Revenue 1,399,323 1,441,810 1,325,897 -3% 6% 2,841,133 2,620,844 8%
Net Revenue 1,151,093 1,203,471 1,093,793 -4% 5% 2,354,564 2,160,197 9%
Change in fair value - biological assets 129,604 522,072 70,267 -75% 84% 651,676 131,876 394%
Cost of Products Sold (941,718) (802,852) (807,242) 17% 17% (1,744,570) (1,526,941) 14%
Gross Profit 338,979 922,691 356,818 -63% -5% 1,261,670 765,132 65%
Selling Expenses (87,474) (98,181) (86,645) -11% 1% (185,655) (173,124) 7%
General & Administrative Expenses (72,882) (72,930) (67,039) 0% 9% (145,812) (131,234) 11%
Other Revenues (Expenses) 17,459 8,957 4,574 95% 282% 26,416 11,938 121%
Total Operating Expenses (142,897) (162,154) (149,110) -12% -4% (305,051) (292,420) 4%
Operating Income (before Fin. Results) 196,082 760,537 207,708 -74% -6% 956,619 472,712 102%
Equity pickup 5,807 5,542 1,365 5% 325% 11,349 2,188 419%
Financial Expenses (97,103) (106,002) (111,336) -8% -13% (203,105) (200,142) 1%
Financial Revenues 133,008 121,236 47,459 10% 180% 254,244 93,557 172%
Net Foreign Exchange Losses 101,614 150,533 (354,319) -32% N/A 252,147 (294,657) N/A
Net Financial Revenues 137,519 165,767 (418,196) -17% N/A 303,286 (401,242) N/A
Net Income before Taxes 339,408 931,846 (209,123) -64% N/A 1,271,254 73,658 1626%
Income Tax and Soc. Contrib. (95,890) (324,672) 79,298 -70% N/A (420,562) (1,929) 21702%
Net income 243,518 607,174 (129,825) -60% N/A 850,692 71,729 1086%
- - 0%
Depreciation and amortization 257,832 176,551 163,258 46% 58% 434,383 336,324 29%
Change in fair value of biological assets (129,604) (522,072) (70,267) -75% 84% (651,676) (131,876) 394%
Vale do Corisco 9,550 9,388 8,495 2% 12% 18,938 15,758 20%
Adjusted EBITDA 333,860 424,404 309,194 -21% 8% 758,264 692,918 9%
6M13 (R$ thousand) 2Q14 1Q14 2Q13 6M14

14



2Q14 Earnings Release July 30, 2014

Appendix 2
Consolidated Balance Sheet (R$ thousands)






Current Assets 7.369.835 6.873.487 Current Liabilities 2.761.889 1.866.865
Cash and banks 378.892 162.654 Loans and financing 1.200.082 1.180.101
Short-term investments 4.672.149 4.248.061 Suppliers 1.227.436 314.801
Securities 471.337 459.759 Income tax and social contribution 32.335 0
Receivables 1.026.780 1.180.594 Taxes payable 47.327 62.782
Inventories 530.459 507.253 Salaries and payroll charges 131.470 96.137
Recoverble taxes and contributions 231.564 247.003 Dividends to pay 0 90.077
Other receivables 58.654 68.163 REFIS Adherence 50.400 50.400
Other accounts payable 72.839 72.567
Noncurrent Assets 12.365.963 10.935.381
Long term Noncurrent Liabilities 9.539.153 8.776.501
Taxes to compensate 132.678 124.218 Loans and financing 5.984.195 5.990.962
Judicial Deposits 85.545 92.419 Debentures 1.162.158 410.169
Other receivables 200.790 163.892 Deferred income tax and social contribution 1.716.346 1.691.752
Other investments 472.830 472.123 Other accounts payable - Investors SCPs 129.024 128.070
Property, plant & equipment, net 7.753.756 6.320.677 REFIS Adherence 389.274 391.697
Biological assets 3.708.818 3.751.099 Other accounts payable 158.156 163.851
Intangible assets 11.546 10.953
StockholdersEquity 7.434.756 7.165.502
Capital 2.271.500 2.271.500
Capital reserve 1.295.919 1.267.416
Revaluation reserve 48.914 49.091
Profit reserve 2.920.919 2.677.224
Valuation adjustments to shareholders'equity 1.052.896 1.053.329
Treasury stock (155.392) (153.058)
Total 19.735.798 17.808.868 Total 19.735.798 17.808.868
Assets jun-14 mar-14 Liabilities and Stockholders' Equity jun-14 mar-14

15



2Q14 Earnings Release July 30, 2014

Appendix 3
Loan Maturity Schedule June 30, 2014









R$ million 3Q14 4Q14 2014 2015 2016 2017 2018 2019 2020 2021
2022 onwards
Total
BNDES 106 108 215 507 237 198 185 135 48 16 9 1,549
Others 37 16 53 73 40 27 181 53 220 125 235 1,008
Debentures Interests 0 0 0 100 198 202 90 50 421 50 50 1,162
Local Currency
143 125 268 680 475 428 457 238 689 191 295 3,719
Trade Finance 164 88 252 410 198 477 548 564 403 297 212 3,362
Fixed Assets 6 5 10 20 18 18 22 27 22 13 7 157
Others 34 18 52 114 264 288 149 131 111 - - 1,108
Foreign Currency 203 111 314 543 480 783 719 721 536 310 219 4,627
Gross Debt
346 236 582 1,224 955 1,211 1,176 959 1,225 501 514 8,346
Local currency : R$ 3,7 billion
Average tenor: 39 months
Foreign currency: R$ 4,6 billion
Average tenor : 44 months
Foreign
Currency
4,627
Local
Currency
3,719
Gross Debt
8,346
R$ million
143
125
268
680
475
428
457
238
689
191 295
203
111
314
543
480
783
719
721
536
310 219
346
236
582
1,224
955
1,211
1,176
959
1,225
501 514
3Q14 4Q14 2014 2015 2016 2017 2018 2019 2020 2021 2022
onwards
Local Currency 7.00 % p.y. 39 months
Foreign Currency 5.01 % p.y. 44 months
Gross Debt 42 months
Average Cost Average Tenor

16



2Q14 Earnings Release July 30, 2014


Appendix 4
Consolidated Cash Flow Statement (R$ thousands)


Cash flow from operating activities 559,692 578,611
Operating activities 834,000 503,800
. Net income
850,692 71,729
. Depreciation and amortization
123,458 115,098
. Change in fair value - biolgical assets
(651,676) (131,876)
. Depletion in biological assets
310,925 221,226
.Income taxes and social contribution
496,447 (83,530)
. Interest and exchange variation on loans and financing
(110,128) 491,230
Payment of interest on loans
(171,400) (150,737)
. Interest, exchange variation and profit sharing of debentures
(45,247) -
. Variation of the present value of debentures
25,798 -
. REFIS Reserve
21,249 16,900
. Equity results
(3,580) 2,558
. Results on Equity Pickup
(11,349) (2,188)
. Deferred income taxes and social contribution
(9,043) (37,283)
. Others 7,854 (9,327)
Variations in Assets and Liabilities (274,308) 74,811
. Receivables
118,365 (32,427)
. Inventories
(34,607) (16,628)
. Recoverable taxes
(111,465) 91,281
. Marketable Securities
(221,826) 1,311
. Prepaid expenses
3,265 1,803
. Other receivables
29,587 31,916
. Suppliers
(58,291) 57,882
. Taxes and payable
18,155 (30,922)
. Salaries, vacation and payroll charges
4,114 (13,553)
. Other payables (21,605) (15,852)
Net Cash Investing Activities (1,123,517) (322,043)
. Purchase of property, plant and equipment
(1,089,139) (309,703)
. Cust biological assets planting (ex taxes)
(45,739) (36,390)
. Income of assets sale
6,261 13,850
. Sale of property, plant and equipment 5,100 10,200
Net Cash Financing Activities 2,884,994 (355,749)
. New loans and financing
1,066,749 253,116
. Debentures capitalization
2,470,151 -
. Loan amortization
(564,541) (534,691)
. Dividends payed
(90,077) (76,069)
. Stocks repurchase
(2,353) (2,999)
. Stocks disposal
5,391 4,894
. Minority shareholders exit (326) -
Increase (Decrease) in cash and cash equivalents 2,321,169 (99,181)
Cash and cash equivalents at beginning of period 2,729,872 2,517,312
Cash and cash equivalents at end of period 5,051,041 2,418,131
6M14 6M13