Klabin : Release 2Q16

EARNINGS RELEASE - 2Q16

JULY 26, 2016

INITIAL SALES OF PULP FROM THE PUMA UNIT PROPELLED ADJUSTED EBITDA TO R$ 538 MILLION IN THE 2Q16, 37% ABOVE THE 2Q15.

SALES VOLUME 2Q16

HIGHLIGHTS 2Q16

SALES VOLUME FROM PAPER AND PACKAGING

FIRST QUARTER EVER OF PULP SALES

ADJUSTED EBITDA

ANNUAL PLANT MAINTENANCE SHUTDOWN

June 30, 2016

Klabin

Market Value R$ 19 billion

KLBN11

Closing Price R$ 15.42

Daily Volume 2Q16 R$ 58 million

Teleconference

Portuguese (with simultaneous translation) Wednesday, 07/27/16, 11am (Brasília)

Tel: +55 (11) 3193-1133 - Password: Klabin http://cast.comunique-se.com.br/Klabin/2Q16

IR

Antonio Sergio Alfano Tiago Rocha Brasil Daniel Rosolen Marcos Maciel

Lucia Reis Natasha Utescher

www.klabin.com.br/ri invest@klabin.com.br

+55 11 3046-8401

RELATÓRIO - 4T13 • 12 DE FEVEREIRO DE 2014

∆ ∆ ∆

R$ million 2Q16 1Q16 2Q15 2Q16/1Q16 2Q16/2Q15

6M16 6M156M16/6M15

Klabin´s consolidated financial statements are presented pursuant to the international accounting standards (International Financial Reporting Standards - IFRS), as set forth by the CVM 457/07 and CVM 485/10 instructions. The Vale do Corisco information is not consolidated in the Financial Statements, they are represented by the Capital Equity method. Adjusted EBITDA pursuant to CVM 527/12 instruction.

Notes:

Some figures from the chart and graphs presented may not express a precise result due to rounding. The calculated Ebitda margin takes into account the effects of Vale do Corisco.

This quarterly report is the first to consider the sales of Klabin´s new pulp production coming from the Puma Unit. After the start of operations in March of this year, precisely on schedule and within the budget, the plant´s sales were first registered in the month of April, evolving over the second quarter.

The operation of the plant has been in line with the learning curve set up by Klabin. Over the second quarter the fiber production grew steadily, contributing with sales volume equivalent to 50% of the nominal capacity of the Puma Plant.

From this quarter onwards Klabin starts a new phase in its history. The company advances towards different markets and becomes the single Brazilian company to supply simultaneously short fiber bleached pulp, long fiber bleached pulp, and fluff pulp in a single plant, designed precisely for this purpose.

RELATÓRIO - 4T13 • 12 DE FEVEREIRO DE 2014

The second quarter of 2016 was marked by a turnaround in the economic expectations of the domestic scenario after recent political events and the arrival of the new economic team lead by Henrique Meirelles. In the foreign scenario, the 2Q16 was of great volatility in the markets, especially after the referendum that sealed the exit of the United Kingdom from the European Union. In addition, the uncertainties in regard to American economic activities have kept the world´s interest rates low, or even negative, bringing a greater liquidity to global markets.

Thus, despite few changes in the majority of the domestic economic activity indexes, the greater confidence in Brazilian economic policy and the low world interest rates in relation to the two digit rates in Brazil have lead to strong appreciation of the Ibovespa and of the Real.

In the Brazilian market of paper and packaging, despite the 2% decrease in the Brazilian shipments of corrugated boxes in the first half of the year, figures from the Brazilian Association of Corrugated Boxes (ABPO) have started to show signs of improvement with figures of the month of June point towards a growth of 2% in comparison with the same period of last year.

In the international market for packaging paper, Kraftliner prices in Europe were pressured during the period. On the other hand, with the depreciation Dollar in the quarter, the FOEX list price was stable in relation to the 1Q16, closing with an average of US$ 621/t in the period.

The second quarter of 2016 marks the beginning of the sales of pulp from the Puma Plant and a new era of growth for the company. During the period, the short fiber list price in Europe announced by FOEX had an average of US$ 693/t while the long fiber had an average of US$ 796/t. The opposite movements from the price drop of short fiber pulp and increase in the prices of long fiber pulp made the spread between both fibers rise from US$ 53/t to US$ 124/t in the 2Q16.

With the important addition of the sale of pulp, Klabin´s sales volume reached 631 thousand tonnes in the 2Q16, 45% greater in comparison to the same period of the previous year. It is also important to highlight the increase of the capacity of paper production, enhanced over 2015, which enabled the increase of sales to the foreign market. The depreciated Real, comparing with the exchange rate of 2Q15, also played its role in this advance in the foreign market. Domestically the sales volume of paper and conversion, compared to the same period of the previous year, remained stable, which not only proves the competitiveness of the company in an adverse scenario but also the resilience of the markets in which Klabin operates. As a result of the increase in sales volume driven by the sales of pulp, of the more depreciated Real in relation to the 2Q15 and Klabin´s competitiveness in the domestic market, the net profit in the period reached R$ 1,699 million, a 27% growth in relation to the same period of 2015.

With this increase in sales volume in the 2Q16, Klabin obtained considerable benefit from the dilution of their fixed and administrative expenses. This in combination with the Company´s efforts in cost control made up for the impacts of inflation, persistent on some inputs and services hired by Klabin, even in a quarter impacted by the scheduled maintenance shutdowns of the Monte Alegre (PR) and Otacílio Costa (SC) plants.

In short, Klabin´s results in this quarter were driven by the beginning of sales of pulp from the Puma Unit, but also by the cost discipline and flexibility of the Company, which enabled for an increase in sales volume of paper and packaging even in an extremely challenging scenario. In this quarter, Klabin reached adjusted EBITDA of R$ 538 million, a 37% growth over the same period of last year. It is worth reminding that the new Puma Plant started operations in March, strictly within project schedule and budget. The start of operations of the Puma Plant, which is still undergoing a ramp up process, opens up one more growing cycle of Klabin and confirms its operating capacity and consistent delivery of results.

RELATÓRIO - 4T13 • 12 DE FEVEREIRO DE 2014

1,351

1,424

1,452

1,504

1,562

1,602

1,627

1,652

1,718

1,755

1,812

1,881

1,976

2,026

2,173

Exchange Rate

922

939

1,027

1,089

1,180

1,286

Sales Volume LTM

(excluding wood - million tonnes)

Adjusted EBITDA LTM (R$ million)

With the improvement in confidence in relation to the course of the Brazilian economy and a higher level of liquidity in a more mature market, the Real depreciated by 10% in the 2Q16, closing the period with a rate of R$ 3.21/US$, a level that has not been observed since July 2015. In the same comparison, the average exchange also dropped by 10%, however, it was still 14% higher if compared with the 2Q15.

Sales Volume

With the beginning of operations of the Puma Plant in March, Klabin´s sales volume in the 2Q16, without the sales of wood, was 631 thousand tonnes, a 45% increase in relation to the 435 thousand tonnes sold in the 2Q15. The Puma Plant, although undergoing a ramp up process, in its first quarter of operations contributed to the sales volume of pulp with 181 thousand tonnes, that is, approximately 50% of its nominal capacity.

Beyond the additional volume of pulp in the 2Q16 the company obtained a 4% increase in the sales volume of paper and conversion. This growth was possible due to the debottlenecking carried out over 2015, the increase of capacity, and to the flexibility of the markets and products which enabled Klabin to direct its products to different destinations.