Klabin S.A. Quarterly Information (ITR) at June 30, 2014 and Report on Review of Quarterly Information

Transcription

1 Klabin S.A. Quarterly Information (ITR) at June 30, 2014 and Report on Review of Quarterly Information

2 Report on Review of Quarterly Information To the Board of Directors and Shareholders Klabin S.A. Introduction We have reviewed the accompanying parent company and consolidated interim accounting information of Klabin S.A., included in the Quarterly Information Form (ITR) for the quarter ended June 30, 2014, comprising the balance sheet as at that date and the statements of operations and comprehensive income (loss) for the quarter and six-month periods then ended, and the statements of changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation of the parent company interim accounting information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and of the consolidated interim accounting information in accordance with CPC 21 and International Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. 2

3 Klabin S.A. Conclusion on the parent company interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. Conclusion on the consolidated interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. Other matters Statements of value added We have also reviewed the parent company and consolidated statements of value added for the six-month period ended June 30, These statements are the responsibility of the Company's management, and are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information (ITR) and are considered supplementary information under IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the parent company and consolidated interim accounting information taken as a whole. São Paulo, July 30, 2014 PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5 Tadeu Cendón Ferreira Contador CRC 1SP188352/O-5 3

4 Registration Form Version: 2 Contents Information General information 1 Address 2 Securities 3 Auditor 4 Share registrar 5 Investor relations officer or equivalent 6 Stockholders' department 7

5 Registration Form Version: 2 1. General information Corporate name Date of adoption of the 10/26/2001 corporate name Type Previous corporate name Public company KLABIN RIOCELL S.A. Date of constitution 11/8/1978 Federal Corporate Taxpayers' Registration Number (CNPJ) Brazilian Securities Commission (CVM) code / CVM registration date 8/6/1997 CVM registration status Active Date of effectiveness of status 8/6/1997 Home country Country in which the securities are held in custody Brazil Brazil Other countries in which the securities can be traded Country Date of admission The United States of America 12/01/1994 Activity sector Description of activities Issuer category Paper and pulp Brazilian company engaged in forest-related business and the manufacturing of paper and cardboard for packaging, corrugated cardboard packaging and industrial sacks. In addition, the Company carries out recycling activities and is a producer of logs for lumber mills. Category A Date of registration in the current category 1/1/2010 Issuer status Operating phase Date of effectiveness of status 8/6/1997 Type of ownership control Private Date of last change in ownership control 12/28/2001 Date of last change of the fiscal year 12/31/2011 Month/day of the end of the fiscal year 12/31 Issuer's website on the Internet Newspapers in which the issuer Name of newspapers in which the issuer discloses its information State discloses its information Diário Oficial do Estado (State Official Gazette) SP Valor Econômico SP 1 of 7

6 Registration Form Version: 2 2. Address Mail address Avenida Brigadeiro Faria Lima, 3600, 3o., 4o. e 5o. andares, Itaim Bibi, São Paulo, SP, Brasil, CEP , Phone (11) , Fax (11) , invest@klabin.com.br Headquarters' address Avenida Brigadeiro Faria Lima, 3600, 3o., 4o. e 5o. andares, Itaim Bibi, São Paulo, SP, Brasil, CEP , Phone (11) , Fax (11) , klabin@klabin.com.br 2 of 7

7 Registration Form Version: 2 3. Securities Shares Trading Listing Market Managing entity Beginning End Trading segment Beginning End Stock exchange São Paulo Commodities, Futures and Stock Exchange (BM&FBOVESPA) 8/6/1997 Bovespa Level 2 1/9/ of 7

8 Registration Form Version: 2 4. Auditor Does the issuer have an auditor? Yes CVM code Type of auditor Brazilian Firm Name/corporate name PricewaterhouseCoopers Auditores Independentes Individual Taxpayers' Registration Number (CPF)/ Federal Corporate Taxpayers' Registration Number (CNPJ) / Period of services 4/1/2012 Partner responsible Period of services CPF Tadeu Cendon Ferreira 4/1/ of 7

9 Registration Form Version: 2 5. Share registrar Does the Company have a service provider? Corporate name Yes ITAU CORRETORA DE VALORES S.A. CNPJ / Period of services 11/4/1998 Service address Av. Brigadeiro Faria Lima, 3400, 10º andar, Itaim Bibi, São Paulo, SP, Brasil, CEP , Phone (11) , Fax (11) , investfone.investimento@itau-unibanco.com.br 5 of 7

10 Registration Form Version: 2 6. Investor Relations Officer or equivalent Name Antonio Sergio Alfano Investor Relations Officer CPF/CNPJ Mail address Avenida Brigadeiro Faria Lima 3600, 4o. andar, Itaim Bibi, São Paulo, SP, Brasil, CEP , Phone (11) , Fax (11) , salfano@klabin.com.br Date when the person assumed the position 4/1/2008 Date when the person left the position 6 of 7

11 Registration Form Version: 2 7. Stockholders' department Contact Vinicius José Ferreira Campos Date when the person assumed the position 8/1/2011 Date when the person left the position Mail address Avenida Brigadeiro Faria Lima 3600, 3o. andar, Itaim Bibi, São Paulo, SP, Brasil, CEP , Phone (11) , Fax (11) , vjcampos@klabin.com.br KLABIN614MEL.DOCX 7 of 7

12 Contents Company information Capital composition 1 Dividends 2 Parent company financial statements Balance sheet - assets 3 Balance sheet - liabilities and equity 4 Statement of operations 5 Statement of comprehensive income (loss) 6 Statement of cash flows - indirect method 7 Statement of changes in equity 1/1/2014 to 6/30/ /1/2013 to 6/30/ Statement of value added 10 Consolidated financial statements Balance sheet - assets 11 Balance sheet - liabilities and equity 12 Statement of operations 13 Statement of comprehensive income (loss) 14 Statement of cash flows - indirect method 15 Statement of changes in equity 1/1/2014 to 6/30/ /1/2013 to 6/30/ Statement of value added 18 Comments on Company performance 19 Notes to the Quartely Information (ITR) 30 Other information considered relevant by the Company 88 Opinions and representations Report on special review - without exceptions 94 KLABIN614MEL.DOCX

13 Company information/capital composition Number of shares Current quarter (units) 6/30/2014 Paid-up capital Common shares 1,768,769,959 Preferred shares 2,961,019,576 Total 4,729,789,535 Treasury shares Common shares 29,895,550 Preferred shares 119,582,200 Total 149,477,750 Page 1 of 95

14 Version: 1 Company information/dividends Event Date approved Description Initial date of payment Type of share Class of share Amount per share (R$/share) General Stockholders' Meeting 3/20/2014 Dividend 4/9/2014 Common General Stockholders' Meeting 3/20/2014 Dividend 4/9/2014 Preferred Page 2 of 95

15 Parent company financial statements/balance sheet - assets (All amounts in thousands of reais) Code Description Current quarter 6/30/2014 Previous year 12/31/ Total assets 19,416,252 14,642, Current assets 7,143,818 4,614, Cash and cash equivalents 4,636,497 2,401, Financial investments 471, , Financial investments measured at fair value 471, , Available-for-sale securities 471, , Accounts receivable 1,267,513 1,307, Customers 869, , Trade receivables 916, , Provision for impairment of trade receivables -47,229-47, Other receivables 398, , Related parties 398, , Inventory 486, , Taxes recoverable 223, , Current taxes recoverable 223, , Prepaid expenses 24,602 27, Prepaid expenses - third parties 19,760 22, Prepaid expenses - related parties 4,842 5, Other current assets 33,573 56, Other 33,573 56, Non-current assets 12,272,434 10,027, Long-term receivables 3,531,492 3,201, Biological assets 3,106,923 2,819, Receivables from related parties 1,928 1, Receivables from subsidiaries 1,928 1, Other non-current assets 422, , Taxes recoverable 132, , Judicial deposits 85,545 89, Other non-current assets 204, , Investments 1,215,450 1,145, Corporate investments 1,203,908 1,134, Investments in subsidiaries 1,203,908 1,134, Investment properties 11,542 11, Property, plant and equipment 7,514,114 5,670, Intangible assets 11,378 9, Intangible assets 11,378 9,133 Page 3 of 95

16 Parent company financial statements/balance sheet - liabilities and equity (All amounts in thousands of reais) Code Description Current quarter 6/30/2014 Previous year 12/31/ Total liabilities and equity 19,416,252 14,642, Current liabilities 2,771,237 1,799, Social and labor obligations 130, , Trade payables 1,222, , Tax obligations 71,223 54, Borrowings 1,201,194 1,126, Borrowings 1,201,194 1,126, Other obligations 146, , Payables to related parties 37,172 52, Payables to subsidiaries 33,920 49, Payables to other related parties 3,252 3, Other 109,280 98, Enrollment in Tax Recovery Program (REFIS) 50,400 50, Other payables and provision 58,880 48, Non-current liabilities 9,210,259 7,449, Borrowings 7,149,657 5,842, Borrowings 5,987,499 5,842, Debentures 1,162, Other obligations 459, , Other 459, , Enrollment in REFIS 389, , Other 70,148 72, Deferred taxes 1,513,698 1,045, Deferred income tax and social contribution 1,513,698 1,045, Provision 87,482 95, Provision for tax, social security, labor and civil contingencies 87,482 95, Equity 7,434,756 5,392, Share capital 2,271,500 2,271, Capital reserves 1,295,919 4, Goodwill on acquisition of shares 7,376 4, Debentures convertible into shares 1,260, Subscription bonus - debentures 28, Revaluation reserves 48,914 49, Revenue reserves 1,914,480 2,002, Legal reserve 61,886 61, Statutory reserve 506, , Tax incentive reserve 5,583 5, Additional dividend proposed 0 90, Treasury shares -155, , Biological assets reserve 1,496,061 1,496, Retained earnings 851, Carrying value adjustments 1,052,896 1,065,437 Page 4 of 95

17 Parent company financial statements/statement of income () Current quarter 4/1/2014 to 6/30/2014 Accumulated - current year 1/1/2014 to 6/30/2014 Same quarter of prior year 4/1/2013 to 6/30/2013 Accumulated - prior year 1/1/2013 to 6/30/2013 Code Description 3.01 Revenue from sales and/or services 1,128,705 2,307,477 1,055,448 2,107, Cost of products and/or services sold -814,013-1,175, ,763-1,397, Change in fair value of biological assets 115, ,129 54, , Cost of sales -929,369-1,733, ,908-1,513, Gross profit 314,692 1,131, , , Operating income (expenses) -118, , , , Selling expenses -83, ,494-77, , General and administrative expenses -71, ,838-65, , Other operating income 16,435 24,411 3,816 11, Equity in the results of investees 19,786 91,576 24,412 35, Profit before finance result and taxes 196, , , , Finance result 139, , , , Profit before taxation 335,713 1,236, ,504 70, Income tax and social contribution -92, ,708 83,679 1, Current -68,107 83,101-36,345-81, Deferred -24, , ,024 82, Profit (loss) for the period from continuing operations 243, , ,825 71, Profit (loss) for the period 243, , ,825 71, Earnings per share - (R$/share) Basic earnings per share Common shares Preferred shares Diluted earnings per share Common shares Preferred shares Page 5 of 95

18 Parent company financial statements/statement of comprehensive income (loss) (All amounts in thousands of reais) Current quarter 4/1/2014 to 6/30/2014 Accumulated - current year 1/1/2014 to 6/30/2014 Same quarter of prior year 4/1/2013 to 6/30/2013 Accumulated - prior year 1/1/2013 to 6/30/2013 Code Description 4.01 Profit (loss) for the period 243, , ,825 71, Other comprehensive income (loss) -1,795-12,538 2,069-8, Foreign currency translation adjustments -1,795-12,538 2, Actuarial liability restatement , Comprehensive income (loss) for the period 241, , ,756 63,547 Page 6 of 95

19 Parent company financial statements/statement of cash flows - indirect method (All amounts in thousands of reais) Accumulated - current year 1/1/2014 to 6/30/2014 Accumulated - previous year 1/1/2013 to 6/30/2013 Code Description 6.01 Net cash provided by operating activities 465, , Cash from operations 814, , Profit for the period 850,692 71, Depreciation and amortization 122, , Change in fair value of biological assets -557, , Depletion of biological assets 296, , Deferred income tax and social contribution 468,809-82, Interest and exchange variations on borrowings -110, , Payment of interest on borrowings -171, , Accrued interest - REFIS 21,249 16, Gain (loss) on disposal of assets and subsidiaries -3,580 2, Equity in the results of investees -91,576-35, Income tax and social contribution paid -7,453-36, Interest, monetary variation and interest on results of debentures -45, Amortization - adjustment at present value - debentures 25, Other 15,833-9, Changes in assets and liabilities -348,951 1, Trade receivables and related parties 39,934-69, Inventory -29,188-11, Taxes recoverable -111,326 89, Securities (available-for-sale securities) -221,826 1, Prepaid expenses 3,185 1, Other assets 19,413-1, Trade payables -37,178 54, Tax obligations 16,464-30, Social and labor obligations 4,629-14, Other liabilities -33,058-18, Net cash used in investing activities -1,116, , Purchases of property, plant and equipment (net of taxes) -1,107, , Planting cost of biological assets (net of taxes) -26,060-26, Sale of assets 6,261 13, Acquisition of investments and capital contributions - subsidiaries 0-9, Dividends received from subsidiaries 11,099 84, Net cash (used in) provided by financing activities 2,885, , New borrowings 1,066, , Repayment of borrowings -564, , Dividends paid -90,077-76, Purchase of treasury shares -2,353-2, Disposal of treasury shares 5,391 4, Collection of debentures 2,470, Increase (decrease) in cash and cash equivalents 2,234,675-98, Cash and cash equivalents at the beginning of the period 2,401,822 2,157, Cash and cash equivalents at the end of the period 4,636,497 2,058,556 Page 7 of 95

20 Parent company financial statements/statement of changes in equity - 1/1/2014 to 6/30/2014 (All amounts in thousands of reais) Capital reserves, options granted and treasury shares Other comprehensive income (loss) Code Description Paid-up share capital Revenue reserves Retained earnings Equity 5.01 Opening balances 2,271,500 4,419 2,051, ,065,437 5,392, Adjusted opening balances 2,271,500 4,419 2,051, ,065,437 5,392, Capital transactions with owners 0 1,291,500-87, ,434 1,201, Purchase of treasury shares 0 0-2, , Disposal of treasury shares 0 2,957 2, , Dividends , , Award of treasury shares 0 0 2, , Issuance of debentures convertible into shares 0 1,288, ,288, Total comprehensive income (loss) ,692-12, , Profit for the period , , Other comprehensive income (loss) ,538-12, Translation adjustments for the period ,538-12, Internal changes in equity ,431 2, Realization of revaluation reserve Recognition of the stock option plan remuneration ,431 2, Closing balances 2,271,500 1,295,919 1,963, ,047 1,052,896 7,434,756 Page 8 of 95

21 Parent company financial statements/statement of changes in equity - 1/1/2013 to 6/30/2013 (All amounts in thousands of reais) Capital reserves, options granted and treasury shares Other comprehensive income Code Description Paid-up share capital Revenue reserves Retained earnings Equity 5.01 Opening balances 2,271,500 1,423 2,066, ,081,379 5,420, Adjusted opening balances 2,271,500 1,423 2,066, ,081,379 5,420, Capital transactions with owners 0 2,994-74, ,590-74, Purchase of treasury shares 0 0-2, , Disposal of treasury shares 0 2,994 1, , Dividends , , Award of treasury shares 0 0 2, , Total comprehensive income (loss) ,729-8,182 63, Profit for the period , , Other comprehensive income (loss) ,182-8, Translation adjustments for the period Restatement of the actuarial liabilities ,841-7, Internal changes in equity ,463 1, Realization of revaluation reserve Taxes on realization of revaluation reserve Recognition of the stock option plan remuneration ,463 1, Closing balances 2,271,500 4,417 1,991,686 72,084 1,072,070 5,411,757 Page 9 of 95

22 Parent company financial statements/statement of value added (All amounts in thousands of reais) Accumulated - current year 1/1/2014 to 6/30/2014 Accumulated - prior year 1/1/2013 to 6/30/2013 Code Description 7.01 Revenue 3,463,549 2,800, Sale of products and services 2,900,234 2,672, Other revenue 563, , Change in fair value of biological assets 557, , Other 6,261 13,850 Provision/reversal of provision for impairment of trade receivables -75-2, Inputs acquired from third parties -1,507,114-1,409, Cost of sales and services -514, , Materials, energy, outsourced services and other -992, , Gross value added 1,956,435 1,390, Retentions -419, , Depreciation, amortization and depletion -419, , Net value added generated by the Company 1,537,327 1,076, Value added received through transfer 639, , Equity in the results of investees 91,576 35, Finance income 547, , Total value added to distribute 2,176,579 1,238, Distribution of value added 2,176,579 1,238, Personnel 396, , Direct compensation 301, , Benefits 72,060 56, Government Severance Indemnity Fund for Employees (FGTS) 22,217 18, Taxes and contributions 687, , Federal 611, , State 73,163 87, Municipal 3,200 2, Remuneration of third-party capital 242, , Interest 242, , Remuneration of own capital 850,692 71, Retained profits 850,692 71,729 Page 10 of 95

23 Consolidated financial statements/balance sheet - assets (All amounts in thousands of reais) Code Description Current quarter 6/30/2014 Prior year 12/31/ Total assets 19,735,798 14,919, Current assets 7,369,835 4,826, Cash and cash equivalents 5,051,041 2,729, Financial investments 471, , Financial investments measured at fair value 471, , Available-for-sale securities 471, , Accounts receivable 1,026,780 1,145, Customers 1,026,780 1,145, Trade receivables 1,074,087 1,192, Provision for impairment of trade receivables -47,307-47, Inventory 530, , Taxes recoverable 231, , Current taxes recoverable 231, , Prepaid expenses 24,602 27, Prepaid expenses - third parties 19,760 22, Prepaid expenses - related parties 4,842 5, Other current assets 34,052 57, Other 34,052 57, Non-current assets 12,365,963 10,093, Long-term receivables 4,127,831 3,707, Biological assets 3,708,818 3,321, Other non-current assets 419, , Taxes recoverable 132, , Judicial deposits 85,545 90, Other non-current assets 200, , Investments 472, , Corporate investments 461, , Investments in associates 461, , Investment properties 11,542 11, Property, plant and equipment 7,753,756 5,909, Intangible assets 11,546 9, Intangible assets 11,546 9,300 Page 11 of 95

24 Consolidated financial statements/balance sheet - liabilities and equity (All amounts in thousands of reais) Code Description Current quarter 6/30/2014 Prior year 12/31/ Total liabilities and equity 19,735,798 14,919, Current liabilities 2,761,889 1,779, Social and labor obligations 131, , Trade payables 1,227, , Tax obligations 79,662 61, Borrowings 1,200,082 1,124, Borrowings 1,200,082 1,124, Other obligations 123, , Payables to related parties 3,252 3, Payables to other related parties 3,252 3, Other 119, , Enrollment in REFIS 50,400 50, Other payables and provision 69,587 66, Non-current liabilities 9,539,153 7,747, Borrowings 7,146,353 5,838, Borrowings 5,984,195 5,838, Debentures 1,162, Other obligations 588, , Other 588, , Payables - investors in Special Partnership Companies (SPCs) 129, , Enrollment in REFIS 389, , Other 70,674 73, Deferred taxes 1,716,346 1,220, Deferred income tax and social contribution 1,716,346 1,220, Provision 87,482 95, Provision for tax, social security, labor and civil contingencies 87,482 95, Consolidated equity 7,434,756 5,392, Share capital 2,271,500 2,271, Capital reserves 1,295,919 4, Goodwill on the sale of shares 7,376 4, Debentures convertible into shares 1,260, Subscription bonus - debentures 28, Revaluation reserves 48,914 49, Revenue reserves 1,914,480 2,002, Legal reserve 61,886 61, Statutory reserve 506, , Tax incentive reserve 5,583 5, Additional dividend proposed 0 90, Treasury shares -155, , Biological assets reserve 1,496,061 1,496, Retained earnings 851, Carrying value adjustments 1,052,896 1,065,437 Page 12 of 95

25 Consolidated financial statements/statement of operations () Current quarter 4/1/2014 to 6/30/2014 Accumulated - current year 1/1/2014 to 6/30/2014 Same quarter of prior year 4/1/2013 to 6/30/2013 Accumulated - prior year 1/1/2013 to 6/30/2013 Code Description 3.01 Revenue from sales and/or services 1,151,093 2,354,564 1,093,793 2,160, Cost of products and/or services sold -812,114-1,092, ,975-1,395, Change in fair value of biological assets 129, ,676 70, , Cost of sales -941,718-1,744, ,242-1,526, Gross profit 338,979 1,261, , , Operating expenses -137, , , , Selling expenses -87, ,655-86, , General and administrative expenses -72, ,812-67, , Other operating income 17,459 26,416 4,574 11, Equity in the results of investees 5,807 11,349 1,365 2, Profit before finance result and taxes 201, , , , Finance result 137, , , , Profit before taxation 339,408 1,271, ,123 73, Income tax and social contribution -95, ,562 79,298-1, Current -71,208 75,885-38,389-85, Deferred -24, , ,687 83, Profit (loss) for the period from continuing operations 243, , ,825 71, Consolidated profit (loss) for the period 243, , ,825 71, Attributable to the owners of the parent company 243, , ,825 71, Earnings per share - (R$/share) Basic earnings per share Common shares Preferred shares Diluted earnings per share Common shares Preferred shares Page 13 of 95

26 Consolidated financial statements/statement of comprehensive income (loss) (All amounts in thousands of reais) Current quarter 4/1/2014 to 6/30/2014 Accumulated - current year 1/1/2014 to 6/30/2014 Same quarter of prior year 4/1/2013 to 6/30/2013 Accumulated - prior year 1/1/2013 to 6/30/2013 Code Description 4.01 Consolidated profit for the period 243, , ,825 71, Other comprehensive income (loss) -1,795-12,538 2,069-8, Foreign currency translation adjustments -1,795-12,538 2, Actuarial liability restatement , Consolidated comprehensive income (loss) for the period 241, , ,756 63, Attributable to the owners of the parent company 241, , ,756 63,547 Page 14 of 95

27 Consolidated financial statements/statement of cash flows - indirect method (All amounts in thousands of reais) Accumulated - current period 1/1/2014 to 6/30/2014 Accumulated - prior year 1/1/2013 to 6/30/2013 Code Description 6.01 Net cash provided by operating activities 582, , Cash from operations 834, , Profit for the period (attributable to controlling interests) 850,692 71, Depreciation and amortization 123, , Change in fair value of biological assets -651, , Depletion of biological assets 310, , Deferred income tax and social contribution 496,447-83, Interest and exchange variations on borrowings -110, , Payment of interest on borrowings -171, , Accrued interest - REFIS 21,249 16, Gain on disposal of assets -3,580 2, Equity in the results of investees -11,349-2, Income tax and social contribution paid -9,043-37, Interest, monetary variation and interest on results of debentures -45, Amortization - adjustment at present value - debentures 25, Other 7,854-9, Changes in assets and liabilities -251,341 74, Trade receivables 118,365-32, Inventory -34,607-16, Taxes recoverable -111,465 91, Securities (available-for-sale securities) -221,826 1, Prepaid expenses 3,265 1, Other assets 29,587 31, Trade payables -35,324 57, Tax obligations 18,155-30, Social and labor obligations 4,114-13, Other liabilities -21,605-15, Net cash used in investing activities -1,146, , Purchases of property, plant and equipment (net of taxes) -1,112, , Planting cost of biological assets (net of taxes) -45,739-36, Receipts on sale of assets and subsidiaries 6,261 13, Results received from subsidiaries 5,100 10, Net cash (used in) provided by financing activities 2,884, , New borrowings 1,066, , Repayments of borrowings -564, , Withdrawal of investors - SPCs Dividends paid -90,077-76, Purchase of treasury shares -2,353-2, Disposal of treasury shares 5,391 4, Collection of debentures (net of funding costs) 2,470, Increase (decrease) in cash and cash equivalents 2,321,169-99, Cash and cash equivalents at the beginning of the period 2,729,872 2,517, Cash and cash equivalents at the end of the period 5,051,041 2,418,131 Page 15 of 95

28 Consolidated financial statements/statement of changes in equity - 1/1/2014 to 6/30/2014 (All amounts in thousands of reais) Paid-up share capital Capital reserves, options granted and treasury shares Other comprehensive income (loss) Noncontrolling interests Revenue Retained Consolidated Code Description reserves earnings Equity equity 5.01 Opening balances 2,271,500 4,419 2,051, ,065,437 5,392, ,392, Adjusted opening balances 2,271,500 4,419 2,051, ,065,437 5,392, ,392, Capital transactions with owners 0 1,291,500-87, ,434 1,201, ,201, Purchase of treasury shares 0 0-2, , , Disposal of treasury shares 0 2,957 2, , , Dividends , , , Award of treasury shares 0 0 2, , Issuance of debentures convertible into shares 0 1,288, ,288, ,288, Total comprehensive income (loss) ,692-12, , , Profit for the period , , , Other comprehensive income (loss) ,538-12, , Translation adjustments for the period ,538-12, , Internal changes in equity ,431 2, , Realization of revaluation reserve Recognition of the stock option plan remuneration ,431 2, , Closing balances 2,271,500 1,295,919 1,963, ,047 1,052,896 7,434, ,434,756 Page 16 of 95

29 Consolidated financial statements/statement of changes in equity - 1/1/2013 to 6/30/2013 (All amounts in thousands of reais) Paid-up share capital Capital reserves, options granted and treasury shares Other comprehensive income Noncontrolling interests Revenue Retained Consolidated Code Description reserves earnings Equity equity 5.01 Opening balances 2,271,500 1,423 2,066, ,081,379 5,420, ,420, Adjusted opening balances 2,271,500 1,423 2,066, ,081,379 5,420, ,420, Capital transactions with owners 0 2,994-74, ,590-74, , Purchase of treasury shares 0 0-2, , , Disposal of treasury shares 0 2,994 1, , , Dividends , , , Award of treasury shares 0 0 2, , Total comprehensive income (loss) ,729-8,182 63, , Profit for the period , , , Other comprehensive income (loss) ,182-8, , Translation adjustments for the period Restatement of actuarial liabilities ,841-7, , Internal changes in equity ,463 1, , Realization of revaluation reserve Taxes on realization of revaluation reserve Recognition of the stock option plan remuneration ,463 1, , Closing balances 2,271,500 4,417 1,991,686 72,084 1,072,070 5,411, ,411,757 Page 17 of 95

30 Consolidated financial statements/statement of value added (All amounts in thousands of reais) Accumulated - current year 1/1/2014 to 6/30/2014 Accumulated - prior year 1/1/2013 to 6/30/2013 Code Description 7.01 Revenue 3,617,400 2,878, Sale of products and services 2,959,471 2,734, Other revenue 657, , Change in fair value of biological assets 651, , Other 6,261 13, Change in provision for impairment of trade receivables -8-2, Inputs acquired from third parties -1,518,629-1,421, Cost of sales and services -515, , Materials, energy, outsourced services and other -1,002, , Gross value added 2,098,771 1,456, Retentions -434, , Depreciation, amortization and depletion -434, , Net value added generated 1,664,388 1,120, Value added received through transfer 221, , Equity in the results of investees 11,349 2, Finance income 209, , Total value added to distribute 1,885,634 1,253, Distribution of value added 1,885,634 1,253, Personnel 403, , Direct compensation 308, , Benefits 72,379 56, FGTS 22,303 18, Taxes and contributions 724, , Federal 648, , State 73,163 87, Municipal 3,200 2, Remuneration of third-party capital -93, , Interest -93, , Remuneration of own capital 850,692 71, Retained profits 850,692 71,729 Page 18 of 95 KLABIN614MEL.DOCX

31 Comments on company performance 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 ambivalence between pursuing inflationary control or increased economic growth, maintained the Special System for Settlement and Custody (SELIC) benchmark interest rate at 11% p.a. at the last meeting 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 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. 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 both the second quarter and the 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/tonne, according to the FOEX index. Average prices in reais had increased by 6% over 2Q13 due to exchange variation. As with 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. Brazilian coated boards shipments (thousand tonnes) Brazilian corrugated shipments (thousand tonnes) Kraftliner brown 175 g/m 2 list price ( /tonneand R$/tonne) ,657 1,653 1,561 1,755 0% M13 6M14 6M13 6M14 6M13 Kraftliner ( / ton) 6M14 Kraftliner ( R$ / ton) Source: Bracelpa Source: ABPO Source: FOEX Page 19 of 95 KLABIN614MEL.DOCX

32 Comments on company performance The focus on the most resilient segments of the Brazilian paper and packaging market was a determining factor in Klabin s sales throughout the quarter. Even with the economic slowdown, sales remained strong, reaching 296 thousand tonnes, raising the domestic market 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 increase coated board capacity in Monte Alegre (PR) impacted on 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 company s 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. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) totaled R$334 million in 2Q14 and R$758 million in the first six months, 9% up year on year, representing a margin of 32%. As a result, LTM EBITDA came to R$1,627 million, the 12 th consecutive quarterly upturn. 1,800 Ajusted EBITDA LTM (R$ million).0 1,600 1,400.51, , ,602 1,627 1,562 1,504 1,424 1,452 1,351 1,286 1,180 1,089 1, 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 Sales Volume LTM (excluding wood million tonnes) Adjusted EBITDA LTM (R$ million) Page 20 of 95 KLABIN614MEL.DOCX

33 Comments on company performance Exchange Rate In 2Q14, the Central Bank s interventions, together with the uncertainties surrounding the Brazilian economic scenario, helped reduced exchange rate volatility, and the R$/US$ rate hovered between R$2.20/US$ and R$2.25/US$ for 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. R$ / US$ 2Q14 1Q14 2Q13 6M14 6M13 2Q14/1Q14 2Q14/2Q13 6M14/6M13 Average Rate % 8% % End Rate % 1% % Source: Bacen Operating and Financial Performance Sales Volume Second quarter sales volume, excluding wood, fell by 2% year on year to 419 thousand tonnes, affected by the ten 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 affected by the Company s 1Q14 strategy of routing a higher volume of sales abroad in order to take advantage of the higher exchange rate. Sales volume (excluding wood tsd tonnes) Sales volume by product 6M % 32% Industrial bags 8% Others 1% 70% 68% Kraftliner 22% Coated boards 36% 6M13 Domestic market 6M14 Exports Corrugated boxes 33% Page 21 of 95 KLABIN614MEL.DOCX

34 Comments on company performance 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% yearon year to R$894 million, thanks to the larger share of higher value added 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. First half net revenue totaled R$2,355 million, 9% up year on year, even though sales volume remained flat, reflecting the Company s ability to adapt to different economic scenarios by tailoring the product mix to its various markets. Pro forma net revenue, including Klabin s proportional share of revenue from Florestal Vale do Corisco S.A., came to R$1,165 million in 2Q14 and R$2,383 million in 6M14. Net revenue (R$ million) Net revenue by product 6M14 2,160 24% 76% 2,355 25% 75% Wood logs Industrial 8% bags 12% Others 1% Coated boards 34% Kraftliner 13% 6M13 Domestic market 6M14 Exports Corrugated boxes 32% 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, affected 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 to the tonnes produced in the quarter. In addition to the non recurring impact on costs throughout the quarter, inflationary pressure on the cost of inputs, including OCC, chemicals, fibers and freight, also put pressure on the cash cost. In 6M14, the unit cash cost came to R$1,876/tonne, 9% up year on year. Page 22 of 95

35 Comments on company performance Cash cost breakdown 6M13 Cash cost breakdown 6M14 Maintenance material/ stoppages 8% Energy 11% Others 8% Labor / third parties 32% Maintenance material/ stoppages 12% Energy 11% Others 3% Labor / third parties 32% Freight 11% Freight 11% Chemicals 15% Wood / fibers 15% Chemicals 15% Wood / fibers 16% The cost of goods sold (COGS) came to R$942 million in 2Q14, 17% up on 2Q13, due to the 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. Selling expenses totaled R$87 million, 1% higher than in 2Q13. Despite the higher nominal value of these expenses, which were 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 reached in 2013 and, especially, the increase in provision for profit sharing due to the Company s improved results. Year to date administrative expenses totaled R$146 million, 11% up on 6M13. Other operating revenue (expenses) totalled R$17 million in 2Q14. In the first half, the total was 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. Page 23 of 95

36 Comments on company performance Operating Cash Flow (EBITDA) R$ million 2Q14 1Q14 2Q13 6M14 6M13 2Q14/1Q14 2Q14/2Q13 6M14/6M13 Net Income (loss) (130) 60% N/A % (+) Income taxes and social contribution (79) 70% N/A % (+) Net Financial Revenues (138) (166) % N/A (303) 401 N/A (+) Depreciation, amortization, depletion % 58% % Adjustments according to IN CVM 527/12 art. 4º ( ) Biological assets adjustment (130) (522) (70) 75% 84% (652) (132) 394% ( ) Equity Pickup (6) (6) (1) 3% 325% (11) (2) 419% (+) Vale do Corisco % 12% % Ajusted EBITDA % 8% % 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 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, thanks to the flexibility of its product mix and the resilience of the markets in which 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 Company s seventh 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. 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 seventh 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 expenditure on new investments in the quarter, and on the other by the positive impact of the exchange variation on dollar denominated debt and the Company s 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. Page 24 of 95

37 Comments on company performance 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,002 1, ,313 2, , ,014 Net debt (R$ million) 3,090 3, , ,437 3, , 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 2,711 2, Net Debt Net Debt / EBITDA (LTM) Debt (R$ million) 06/30/ /31/2014 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 Page 25 of 95

38 Comments on company performance Financial Result Financial expenses totaled R$97 million in2q14, 13% down on 2Q13, and R$203 million in the first half of 2014, the same level observed in the first half of Financial revenue came to R$133 million, 181% up year on year and 10% more than in 1Q14, affected by increased gains from financial investments following the upturn in the Company s 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 As a result, the net foreign exchange variation was positive by R$102 million. Note that the exchange variation has an exclusively accounting effect on the Company s balance sheet, with no significant cash effect in the short term. Business Performance Consolidated information by business unit in 6M14: R$ million Forestry Papers Conversion Consolidation Total Net revenue Domestic market ,759 Exports Third part revenue 175 1,117 1,063 2,355 Segments revenue (811) Total net revenue 448 1,648 1,070 (811) 2,355 Change in fair value biological assets Cost of goods sold (564) (1,117) (878) 814 (1,745) Gross income ,262 Operating expenses (21) (158) (107) (8) (294) Operating results before financial results (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. BUSINESS UNIT FORESTRY thousand tonnes 2Q14 1Q14 2Q13 6M14 6M13 2Q14/1Q14 2Q14/2Q13 6M14/6M13 Wood % 29% 1,584 1,330 19% R$ million Wood % 26% % Page 26 of 95

39 Comments on company performance The export of wood products, mainly plywood and moldings, by the customers of Klabincontinued 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$179 million, 24% up year on year. BUSINESS UNIT PAPER Kraftliner thousand tonnes 2Q14 1Q14 2Q13 6M14 6M13 2Q14/1Q14 2Q14/2Q13 6M14/6M13 Kraftliner DM % 1% % Kraftliner EM % 19% % Total Kraftliner % 10% % Coated boards DM % 3% % Coated boards EM % 19% % Total Coated boards % 7% % Total Paper % 2% % R$ million Kraftliner % 12% % Coated boards % 0% % Total Paper % 3% 1,097 1,009 9% 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 The machine continued its learning curve in the quarter and has been recording excellent operating performance. Kraftliner list prices disclosed by FOEX averaged 552/tonne in 2Q14, versus 587/tonne 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 ten 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 ten days and cut coated board production by around 15 thousand tonnes. It is worth noting, however, that the machine recorded excellent operating performance throughout July. Page 27 of 95

40 Comments on company performance 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, Klabin s 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 Klabin s increased focus on the domestic market, coated board exports fell by 19% over 2Q13 to 63 thousand tonnes. In 2Q14, 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$377 million. Following the same tendency, first half net revenue moved up by 5%, despite the 5% decline in sales volume. BUSINESS UNIT CONVERSION thousand tonnes 2Q14 1Q14 2Q13 6M14 6M13 2Q14/1Q14 2Q14/2Q13 6M14/6M13 Total conversion % 1% % R$ million Total conversion % 5% 1, % 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 nondurable goods sectors, such as beverages and frozen food, recorded growth. In this context, Klabin continued to benefit from its strategic commercial positioning with the country s 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 Sluggish domestic economic activity was offset by Klabin s efficient sales strategy and its privileged positioning with large clients, and 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% up on 6M13. Page 28 of 95

41 Comments on company performance Investments R$ million 2Q14 6M14 Forestry Maintenance Special projects and growth Puma Project Total 653 1,158 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 expansion, and R$464 million to the Puma Project. In the first half, investments totaled R$1,158 million, mainly relating to expenditure on 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 expansion projects will involve the new recycled paper machine in Goiana, with a capacity of 110 thousand tonnes per year, and the de bottlenecking 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 earthleveling 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. 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. With regard to logistics infrastructure, the highways through which part of output will be transported are scheduled for completion by mid Work on the railway that will carry the remaining production to the port of Paranaguá will begin in October 2014, with delivery scheduled for the first quarter of Page 29 of 95

42 Notes to the Quarterly Information at June 30, 2014 Klabin S.A. Quarterly information (ITR) for the three- and six-month periods ended June 30, 2014 PricewaterhouseCoopers Auditores Independentes Page 30 of 95 KLABIN614MEL.DOCX