Klabin S.A. Quarterly Information (ITR) at March 31, 2013 and report on review of quarterly information

Transcription

1 Klabin S.A. Quarterly Information (ITR) at March 31, 2013 and report on review of quarterly information

2 Report on review of quarterly information To the Board of Directors and Stockholders Klabin S.A. Introduction We have reviewed the accompanying parent company and consolidated interim accounting information of Klabin S.A. (the "Company"), included in the Quarterly Information Form (ITR) for the quarter ended March 31, 2013, comprising the balance sheet as at that date and the statements of income, comprehensive income, changes in equity and cash flows for the quarter 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. 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. 2 PricewaterhouseCoopers, Av. Francisco Matarazzo 1400, Torre Torino, São Paulo, SP, Brasil , Caixa Postal T: (11) , F: (11) ,

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4 Contents Company information Capital composition 2 Dividends 3 Parent company financial statements Balance sheet - assets 4 Balance sheet - liabilities and equity 5 Statement of income 6 Statement of comprehensive income 7 Statement of cash flows - indirect method 8 Statement of changes in equity 1/1/2013 to 3/31/ /1/2012 to 3/31/ Statement of value added 11 Consolidated financial statements Balance sheet - assets 12 Balance sheet - liabilities and equity 13 Statement of income 14 Statement of comprehensive income 15 Statement of cash flows - indirect method 16 Statement of changes in equity 1/1/2013 to 3/31/ /1/2012 to 3/31/ Statement of value added 19 Comments on company performance 20 Notes to the Quarterly Information 32 Other information considered relevant by the company 81 Opinions and representations Report on special review - without exceptions 87 1

5 Company information/capital composition Number of shares Current quarter (in thousands) 3/31/2013 Paid-up capital Common shares 316,827,563 Preferred shares 600,855,733 Total 917,683,296 Treasury shares Common shares 0 Preferred shares 30,027,200 Total 30,027,200 2

6 Quarterly information (ITR) - 3/31/ Version: 1 Company information/dividends Event Date approved Description Initial date of payment Type of share Class of share Amount per share (R$/share) Annual General Stockholders' Meeting 4/2/2013 Dividend 4/23/2013 Common Annual General Stockholders' Meeting 4/2/2013 Dividend 4/23/2013 Preferred

7 Parent company financial statements/balance sheet - assets (R$ thousand) 1 Code 2 Description Current quarter 3/31/2013 Prior year 12/31/ Total assets 13,825,475 13,809, Current assets 4,227,345 4,207, Cash and cash equivalents 2,079,601 2,157, Financial investments 234, , Financial investments measured at fair value 234, , Available-for-sale investments 234, , Accounts receivable 1,268,345 1,158, Customers 791, , Trade receivables 838, , Provision for impairment of trade receivables -46,625-45, Other receivables 476, , Related parties 476, , Inventories 437, , Taxes recoverable 126, , Current taxes recoverable 126, , Prepaid expenses 18,539 22, Prepaid expenses - third parties 14,803 14, Prepaid expenses - related parties 3,736 7, Other current assets 62,915 60, Other 62,915 60, Non-current assets 9,598,130 9,602, Long-term receivables 3,276,079 3,311, Biological assets 2,917,840 2,944, Receivables from related parties 19,014 1, Receivables from subsidiaries 19,014 1, Receivables from other related parties Other non-current assets 339, , Taxes recoverable 108, , Judicial deposits 86,357 85, Other non-current assets 144, , Investments 1,275,011 1,278, Equity interests 1,263,469 1,267, Interests in subsidiaries 1,263,469 1,267, Investment property 11,542 11, Property, plant and equipment (PP&E) 5,038,235 5,003, Intangible assets 8,805 8, Intangible assets 8,805 8,486 4

8 Parent company financial statements/balance sheet - liabilities and equity (R$ thousand) 1 Code 2 Description Current quarter 3/31/2013 Prior year 12/31/ Total liabilities and equity 13,825,475 13,809, Current liabilities 1,652,284 1,754, Social and labor obligations 79, , Trade payables 286, , Tax obligations 113, , Borrowings 1,083,470 1,120, Other obligations 89,978 88, Payables to related parties 11,608 9, Payables to subsidiaries 8,563 6, Payables to other related parties 3,045 2, Other current 78,370 79, Enrollment in Tax Debt Refinancing Program (REFIS) 34,432 39, Other payables and provision 43,938 39, Non-current liabilities 6,555,580 6,634, Borrowings 4,802,576 4,914, Other obligations 459, , Other non-current 459, , Enrollment in REFIS 390, , Other 68,260 56, Deferred taxes 1,211,873 1,190, Deferred income tax and social contribution 1,211,873 1,190, Provision 81,884 83, Tax, social security, labor and civil provision 81,884 83, Equity 5,617,611 5,420, Share capital 2,271,500 2,271, Capital reserves 4,417 1, Revaluation reserves 49,802 49, Revenue reserves 2,020,439 2,016, Legal reserve 47,381 47, Statutory reserve 468, , Additional dividend proposed 76,002 76, Treasury shares -149, , Biological assets reserve 1,578,337 1,578, Retained earnings 201, Carrying value adjustments 1,095,200 1,096, Deemed cost of PP&E (land) 1,098,205 1,098, Stock option plan -3,005-1, Cumulative translation adjustments -17,638-15, Other comprehensive income (loss) -7,

9 Parent company financial statements/statement of income (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 3.01 Revenue from sale of goods and/or services 1,051, , Cost of goods and/or services sold -661, , Change in fair value of biological assets 61, , Cost of goods sold -723, , Gross profit 390, , Operating income (expenses) -122,647 57, Selling expenses -78,740-63, General and administrative expenses -62,756-58, Other operating income 8, Other operating expenses 0-2, Equity in the results of investees 10, , Profit before finance result and taxes 267, , Finance result 16,191 59, Finance income 39,204 57, Finance costs -23,013 1, Profit before taxes on income 284, , Income tax and social contribution on income -82, , Current -45,057-61, Deferred -37,476-80, Profit for the period from continuing operations 201, , Profit (loss) for the period 201, , Earnings per share - (R$/share) Basic earnings per share Common shares Preferred shares Diluted earnings per share Common shares Preferred shares

10 Parent company financial statements/statement of comprehensive income (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 4.01 Profit for the period 201, , Other comprehensive income (loss) -10,251-1, Foreign currency translation adjustments -2,410-1, Actuarial liability restatement -7, Comprehensive income for the period 191, ,786 7

11 Parent company financial statements/statement of cash flows - indirect method (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 6.01 Net cash provided by operating activities 110,738 5, Cash generated from operations 207, , Profit for the period 201, , Depreciation and amortization 58,922 51, Change in fair value of biological assets -61, , Depletion of biological assets 103,680 24, Deferred income tax and social contribution 37,476 80, Interest and exchange variation on borrowings 3,124-13, Payment of interest on borrowings -77,943-68, Accrued interest - REFIS 7,099 8, Gain on disposal of assets and subsidiaries 1, Equity in the results of investees -10, , Income tax and social contribution paid -32,029-52, Other -23,285-12, Changes in assets and liabilities -96, , Trade receivables and receivables from related parties -111,168-29, Inventories 1,089-14, Taxes recoverable 56,376 88, Securities (available-for-sale securities) 5,545-5, Prepaid expenses 3,793 5, Other assets -26,430-3, Trade payables 7, , Tax obligations 5,951 8, Social and labor obligations -44,726-21, Other liabilities 5,963 14, Net cash used in investing activities -118,940-37, Purchases of PP&E (net of taxes) -128,724-50, Planting cost of biological assets (net of taxes) -15,450-11, Sale of assets and subsidiaries 13,068 8, Acquisition of investments and capital contribution to subsidiaries Results received from subsidiaries 12,166 16, Net cash (used in) provided by financing activities -69, , New borrowings 156, , Repayments of borrowings -230, , Purchase of treasury shares 0-8, Disposal of treasury shares 4, Increase (decrease) in cash and cash equivalents -77, , Cash and cash equivalents at the beginning of the period 2,157,148 2,146, Cash and cash equivalents at the end of the period 2,079,601 2,497,335 8

12 Parent company financial statements/statement of changes in equity - 1/1/2013 to 3/31/2013 (R$ thousand) Capital reserves, stock options and treasury stock Retained earnings (accumulated deficit) Other comprehensive income 1 Code 2 Description Paid-up share capital Revenue reserves 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, Total comprehensive income (loss) ,554-10, , Profit for the period , , Other comprehensive income (loss) ,251-10, Translation adjustments for the period ,410-2, Actuarial liability restatement ,841-7, Internal changes in equity 0 2,994 3, ,407 5, Realization of revaluation reserve Taxes on realization of revaluation reserve Award of treasury shares 0 0 1, , Recognition of compensation stock option plan Disposal of treasury shares 0 2,994 1, , Closing balances 2,271,500 4,417 2,070, ,732 1,069,721 5,617,611 9

13 Parent company financial statements/statement of changes in equity - 1/1/2012 to 3/31/2012 (R$ thousand) Capital reserves, options granted and treasury stock Retained earnings (accumulated deficit) Other comprehensive income 1 Code 2 Description Paid-up share capital Revenue reserves Equity 5.01 Opening balances 2,271, ,601, ,085,045 4,958, Adjusted opening balances 2,271, ,601, ,085,045 4,958, Capital transactions with owners 0 0-8, , Treasury shares acquired 0 0-8, , Total comprehensive income (loss) ,518-1, , Profit for the period , , Other comprehensive income (loss) ,732-1, Translation adjustments for the period ,732-1, Internal changes in equity Realization of revaluation reserve Taxes on realization of revaluation reserve Closing balances 2,271, ,593, ,696 1,083,313 5,407,086 10

14 Parent company financial statements/statement of value added (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 7.01 Revenue 1,395,066 1,368, Sale of goods and services 1,333,502 1,187, Other revenue 63, , Change in fair value of biological assets 61, , Other 1, Change in provision for impairment of trade receivables -1, Inputs acquired from third parties -681, , Cost of sales and services -241, , Materials, energy, outsourced services and other -439, , Gross value added 713, , Retentions -162,602-75, Depreciation, amortization and depletion -162,602-75, Net value added generated by the Company 551, , Value added received through transfer 118, , Equity in the results of investees 10, , Finance income 108, , Total value added to distribute 670, , Distribution of value added 670, , Personnel 153, , Salaries and wages 118, , Benefits 27,160 23, Government Severance Indemnity Fund for Employees (FGTS) 8,608 8, Taxes and contributions 222, , Federal 196, , State 24,598 9, Municipal 1,727 2, Remuneration of third parties' capital 92,010 90, Interest 92,010 90, Remuneration of own capital 201, , Profits reinvested/loss for the period 201, ,518 11

15 Consolidated financial statements/balance sheet - assets (R$ thousand) 1 Code 2 Description Current quarter 3/31/2013 Prior year 12/31/ Total assets 14,103,002 14,097, Current assets 4,465,189 4,432, Cash and cash equivalents 2,515,531 2,517, Financial investments 234, , Financial investments measured at fair value 234, , Available-for-sale investments 234, , Accounts receivable 1,021, , Customers 1,021, , Trade receivables 1,068,545 1,027, Provision for impairment of trade receivables -47,177-45, Inventories 479, , Taxes recoverable 132, , Current taxes recoverable 132, , Prepaid expenses 18,539 22, Prepaid expenses - third parties 14,803 14, Prepaid expenses - related parties 3,736 7, Other current assets 63,468 61, Other 63,468 61, Non-current assets 9,637,813 9,665, Long-term receivables 3,756,030 3,815, Biological assets 3,411,079 3,441, Receivables from related parties Receivables from other related parties Other non-current assets 344, , Taxes recoverable 108, , Judicial deposits 87,789 87, Other non-current assets 149, , Investments 457, , Equity interests 446, , Interests in associates 446, , Investment property 11,542 11, PP&E 5,414,894 5,379, Intangible assets 8,973 8, Intangible assets 8,973 8,654 12

16 Consolidated financial statements/balance sheet - liabilities and equity (R$ thousand) 1 Code 2 Description Current quarter 3/31/2013 Prior year 12/31/ Total liabilities and equity 14,103,002 14,097, Current liabilities 1,660,897 1,767, Social and labor obligations 80, , Trade payables 289, , Tax obligations 119, , Borrowings 1,083,470 1,120, Other obligations 88,399 91, Payables to related parties 3,045 2, Payables to other related parties 3,045 2, Other current 85,354 88, Enrollment in REFIS 34,432 39, Other payables and provisions 50,922 49, Non-current liabilities 6,824,494 6,909, Borrowings 4,802,576 4,914, Other obligations 529, , Other non-current 529, , Payables - Investors' Silent Partnerships (SCPs) 70,561 69, Enrollment in REFIS 390, , Other 68,337 60, Deferred taxes 1,410,149 1,392, Deferred income tax and social contribution 1,410,149 1,392, Provision 81,884 83, Tax, social security, labor and civil provision 81,884 83, Consolidated equity 5,617,611 5,420, Share capital 2,271,500 2,271, Capital reserves 4,417 1, Revaluation reserves 49,802 49, Revenue reserves 2,020,439 2,016, Legal reserve 47,381 47, Statutory reserve 468, , Additional dividend proposed 76,002 76, Treasury shares -149, , Biological assets reserve 1,578,337 1,578, Retained earnings 201, Carrying value adjustments 1,095,200 1,096, Deemed cost of PP&E (land) 1,098,205 1,098, Stock option plan -3,005-1, Cumulative translation adjustments -17,638-15, Other comprehensive income (loss) -7,

17 Consolidated financial statements/statement of income (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 3.01 Revenue from sale of goods and/or services 1,066, , Cost of goods and/or services sold -658, , Change in fair value of biological assets 61, , Cost of goods sold -719, , Gross profit 408, , Operating income (expenses) -142, , Selling expenses -86,479-80, General and administrative expenses -64,195-59, Other operating income 7, Other operating expenses 0-4, Equity in the results of investees 823 3, Profit before finance result and taxes 265, , Finance result 16,954 54, Finance income 41,159 59, Finance costs -24,205-5, Profit before taxes on income 282, , Income tax and social contribution on income -81, , Current -47,070-73, Deferred -34, , Profit for the period from continuing operations 201, , Consolidated profit for the period 201, , Attributable to the owners of the parent company 201, , Earnings per share - (R$/share) Basic earnings per share Common shares Preferred shares Diluted earnings per share Common shares Preferred shares

18 Consolidated financial statements/statement of comprehensive income (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 4.01 Consolidated profit for the period 201, , Other comprehensive income (loss) -10,251-1, Foreign currency translation adjustments -2,410-1, Actuarial liability restatement -7, Consolidated comprehensive income for the period 191, , Attributable to the owners of the parent company 191, ,786 15

19 Consolidated financial statements/statement of cash flows - indirect method (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 6.01 Net cash provided by operating activities 201,556 46, Cash generated from operations 221, , Profit for the period (attributable to controlling interests) 201, , Depreciation and amortization 59,565 51, Change in fair value of biological assets -61, , Depletion of biological assets 113,501 55, Deferred income tax and social contribution 34, , Interest and exchange variation on borrowings 3,124-13, Payment of interest on borrowings -77,943-68, Accrued interest - REFIS 7,099 8, Gain on sale of assets 1, Equity in the results of investees , Income tax and social contribution paid -32,426-93, Other -25,498-12, Changes in assets and liabilities -20,263-60, Trade receivables -40,896 5, Inventories -5,576-13, Taxes recoverable 55, , Securities (available-for-sale securities) 5,545-5, Prepaid expenses 3,793 5, Other assets -6,344-5, Trade payables 5, , Tax obligations 7,745-25, Social and labor obligations -45,041-21, Other liabilities , Net cash used in investing activities -133,992-65, Purchase of PP&E (net of taxes) -130,956-51, Planting cost of biological assets (net of taxes) -21,204-21, Income on disposal of subsidiary 13,068 8, Acquisition and capital investment in subsidiaries Results received from subsidiaries 5, Net cash (used in) provided by financing activities -69, , New borrowings 156, , Repayments of borrowings -230, , Withdrawal of investors - SCPs Purchase of treasury shares 0-8, Disposal of treasury shares 4, Increase (decrease) in cash and cash equivalents -1, , Cash and cash equivalents at the beginning of the period 2,517,312 2,341, Cash and cash equivalents at the end of the period 2,515,531 2,705,468 16

20 Consolidated financial statements/statement of changes in equity - 1/1/2013 to 3/31/2013 (R$ thousand) Paid-up share capital Capital reserves, stock options and treasury stock Retained earnings (accumulated deficit) Other comprehensive income Noncontrolling interests Revenue Consolidated 1 Code 2 Description reserves 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, Total comprehensive income (loss) ,554-10, , , Profit for the period , , , Other comprehensive income (loss) ,251-10, , Translation adjustments for the period ,410-2, , Actuarial liability restatement ,841-7, , Internal changes in equity 0 2,994 3, ,407 5, , Realization of revaluation reserve Taxes on realization of revaluation reserve Award grant of treasury shares 0 0 1, , Recognition of compensation stock option plan Disposal of treasury shares 0 2,994 1, , , Closing balances 2,271,500 4,417 2,070, ,732 1,069,721 5,617, ,617,611 17

21 Consolidated financial statements/statement of changes in equity - 1/1/2012 to 3/31/2012 (R$ thousand) Paid-up share capital Capital reserves, stock options and treasury stock Retained earnings (accumulated deficit) Other comprehensive income Noncontrolling interests Revenue Consolidated 1 Code 2 Description reserves Equity equity 5.01 Opening balances 2,271, ,601, ,085,045 4,958, ,958, Adjusted opening balances 2,271, ,601, ,085,045 4,958, ,958, Capital transactions with owners 0 0-8, , , Treasury shares acquired 0 0-8, , , Total comprehensive income (loss) ,518-1, , , Profit for the period , , , Other comprehensive income (loss) ,732-1, , Translation adjustments for the period ,732-1, , Internal changes in equity Realization of revaluation reserve Taxes on realization of revaluation reserve Closing balances 2,271, ,593, ,696 1,083,313 5,407, ,407,086 18

22 Consolidated financial statements/statement of value added (R$ thousand) Accumulated - current period 1/1/2013 to 3/31/2013 Accumulated - prior period 1/1/2012 to 3/31/ Code 2 Description 7.01 Revenue 1,413,457 1,652, Sale of goods and services 1,352,243 1,218, Other revenue 62, , Change in fair value of biological assets 61, , Other 1, Change in provision for impairment of trade receivables -1, Inputs acquired from third parties -677, , Cost of sales and services -229, , Materials, energy, outsourced services and other -448, , Gross value added 736, , Retentions -173, , Depreciation, amortization and depletion -173, , Net value added generated by the Company 562, , Value added received through transfer 111, , Equity in the results of investees 823 3, Finance income 110, , Total value added to distribute 674,480 1,025, Distribution of value added 674,480 1,025, Personnel 157, , Salaries and wages 121, , Benefits 27,272 23, FGTS 8,631 9, Taxes and contributions 221, , Federal 195, , State 24,598 9, Municipal 1,727 2, Remuneration of third parties' capital 93,745 97, Interest 93,745 97, Remuneration of own capital 201, , Profits reinvested/loss for the period 201, ,518 19

23 Comments on company performance Summary In 2012, Klabin presented significant progress in its performance, culminating in the Company's best result in history, which resulted from the increase in the efficiency of its plants and improvement of the mix of products and markets. The combination of these factors continued to drive results during the first quarter of 2013, which presented an increase of the adjusted EBITDA of 23% in comparison with the same period in the previous year. In an international context, pessimism in relation to the Eurozone, which ended 2012 with four subsequent quarters of economic recession, was maintained at the beginning of the year. On the other hand, the United States gave signs of economic recovery in March when they disclosed the lowest unemployment rate since December In addition, there is the 2.2% increase in the US of the Gross National Product (GNP) at the end of 2012 in relation to the previous year. In Brazil, the disclosure of the previous year s GNP showed weak economic growth (increase of 1% in relation to 2011), frustrating the market projections established at the end of In the first months of 2013 the Bazilian Central Bank announced, during the last Monetary Policy Committee (Copom) meeting, an increase of 0.25% in the Selic rate. This increase, the first since 2011, was prompted by concerns about inflation, the low level of investments, and the ineffectiveness of heterodox policies put in practice by the government. The inflation, in part, is a reflection of the continuous increase in the Brazilian issuance of corrugated cardboard (thousand tons) Brazilian issuance of cardboard (thousand tons) continuous increase in the role of household consumption in the GNP which is a fundamental factor for maintaining the country's growth. Consumption grew 3% in 2012, according to the Brazilian Institute of Geography and Statistics (IBGE), the ninth subsequent year of positive variation, and is now responsible for 62% of Brazilian GNP. This fact contributed for the good results of Klabin in 2012 and in this quarter, due to the great interest of the company in markets related to the Brazilian consumption sector. Despite the unfavourable economic consitions, in 1Q13, the market for paper for packaging in Brazil presented growth. This was also influenced by the lower imports of packaged products, caused by the increased foreign exchange rate in comparison with 1Q12. Information of the Brazilian Pulp and Paper Association (Bracelpa) reveals an increase of 3% in the Brazilian demand for coated boards (excluding liquid packing board) in the first quarter of 2013 in relation to the same period of the previous year. In the same period, data from the Brazilian Corrugated Cardboard Association (ABPO) indicates that the corrugated cardboard market grew 4%. In the international markets, the price of kraftliner presented stability during the first three months of 2013, according to FOEX, with an average price of 582/t, 12% higher than 1Q12. Listed price of kraftliner brown 175 g/m2 ( /t and R$/t) 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 Kraftliner ( / ton) Kraftliner (R$ / ton) Source: ABPO Source: Bracelpa Source: FOEX 20

24 Comments on company performance In 1Q13, Klabin sold 430 thousand tons, 3% more than in 1Q12. In the same period, net sales revenue totaled R$ 1,066 million, with an increase of 10% over 1Q12. Sales in the domestic market, despite the seasonal effects usually noted during the first months of the year, reached 70% of the total amount sold. In the previous year, domestic sales represented 65% of the total amount. Sales of paper and packages in the domestic market presented an increase of 11% compared to 1Q12, reflecting the search for markets with better margins. Company ended the quarter with adjusted EBITDA of R$ 384 million, the same level reached in the last quarter of Consequently, the volume of exports decreased 12%; however, the revenue from exported products increased 9% in comparison with 1Q12. During the quarter, the structured measurements of efficiency gain in the Business Units continued to affect the Company's results. Therefore, with greater portions of the mix of products directed to domestic markets, cash generation was leveraged and the Seventh subsequent quarter of growth of adjusted EBITDA over the last 12 months: Margin Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 LTM: Last Twelve Months Sales volume LTM (excluding timber millions of tons) Adjusted EBITDA LTM (R$ millions) Note: Adjusted EBITDA excludes the gain with sale of the assets of 3Q11 and 4Q11. 21

25 Comments on company performance Foreign exchange The foreign exchange rate was R$ 2.04/US$ at December 31, 2012 and presented a slight decrease during the first quarter, falling to R$ 2.01/US$ at the end of March. The average foreign exchange rate for the quarter was R$ 2.00/US$, 13% higher than in the same period of 2012, a level which made imported packaged products in the Brazilian market more expensive. Average U.S. dollar Final U.S. dollar Source: Bacen Operating and financial performance Sales Volume Sales volume increased by 3% over the same period in the previous year, due to the better product mix and higher share of total sales to the domestic market. Sales volume, excluding wood, totaled 430 thousand tonnes in 1Q13, reflecting the 1% drop in paper (kraftliner and coated boards) sales and the 8% growth in converted product (packaging paper and industrial bags) sales. Despite the seasonality typical of first quarters, Klabin's domestic sales grew by 11% over 1Q12, accounting for 70% of total sales in 1Q13, versus 65% in 1Q12. Sales Volume by Product 6M12 As a result, exports declined by 12% compared with 1Q12, totaling 129 thousand tonnes. Sales volume (excluding wood tsd tonnes) Ind. Others Sales volume Bags by product 1% 8% 1Q % % Ind. Bags Kraftliner 9% 23% Others 3% Coated Boards 39% 65% 70% Kraftliner 21% Coated Boards 38% 1Q12 Domestic Market 1Q13 Export Market does not include wood Corrugated Boxes Corrugated 29% Boxes 29% 22

26 Comments on company performance In the first quarter, Klabin continued to concentrate its international sales in the emerging markets, especially Latin America and Asia. These regions accounted for 77% of exports, versus 72% in the same period last year. Sales volume export market 1Q12 Sales volume export market 1Q13 Africa 8% North America 3% Africa 3% North America 2% Europe 17% Latin America 44% Europe 18% Latin America 50% Asia 28% Asia 27% Net Revenue First-quarter net revenue, including wood, totaled R$ 1,066 million, 10% up on 1Q12, due to the more selective sales approach to the various markets. Net revenue from paper sales (kraftliner and coated boards) grew by 11% over 1Q12, while net revenue from converted products (corrugated boxes and industrial bags) increased by 12%. Net revenue from domestic sales came to R$ 812 million, 10% up on 1Q12, due to the increase in volume. Given the more favorable exchange rate, with a 13% appreciation in the reais over 1Q12, exports increased by 9% to R$ 254 million (US$ 128 million) in 1Q13. As a result, the mix remained stable in the comparison period. Pro-forma net revenue in the quarter, considering Klabin's proportional revenue from Florestal Vale do Corisco S.A., came to R$ 1,079 million. Net revenue (R$ million) Net revenue by product 1Q % 1,066 24% Kraftliner 13% Wood 7% Others 1% 76% 1Q12 76% 1Q13 Ind. Bags 14% Coated Boards 35% Domestic Market Export Market Corruated Boxes 30% 23

27 Comments on company performance The improved mix also affected the regional distribution of export revenue in 1Q13, and Latin America became the most representative market, accounting for half the total, versus 45% in 1Q12. Net revenue export market 1Q12 Africa 6% North America 3% Net revenue export market 1Q13 Africa 3% North America 2% Europe 14% Latin America 45% Europe 17% Latin America 50% Asia 32% Asia 28% Operating Costs and Expenses The unit cash cost (excluding non-recurring items) was R$ 1,613/t, 1% down over 4Q12. In comparison with 1Q12, the unit cash cost presented a nominal increase of 3%, reflecting the consistent, structured programs to improve operational efficiency, investments in productivity gains in 2012, and the payroll tax exemption implemented by the government. In 2Q13, maintenance stoppages will be carried out at the Monte Alegre (PR) and Otacílo da Costa (SC) plants for 11 and 7 days, respectively. Cash cost breakdown 1Q12 Cash cost breakdown 1Q13 Freight 12% Energy 10% Freight 12% Energy 10% Labor 33% Labor 32% Maintenance 15% Maintenance 15% Wood/ Fibers 15% Chemicals 15% Wood / Fibers 15% Chemicals 16% The cost of goods sold (COGS) came to R$ 720 million in 1Q13, 1% down on 4Q12 and 15% up on 1Q12, due to the increased depletion of the biological assets. However, excluding the effects of the depletion of biological assets, COGS grew by 6% from the same period last year. 24

28 Comments on company performance Selling expenses increased by 8% over 1Q12 to R$ 86 million, despite the 10% increase in net revenue in the period. Excluding freight expenses, selling expenses grew by 2%. Selling expenses remained stable compared with 4Q12 and represented 8.0% of net revenue. Administrative expenses came to R$ 64 million in 1Q13, 13% down on 4Q12, due to the effect of the payroll tax exemption, and 8% up on 1Q12. Other operating revenue/expenses was a revenue of R$ 7 million in 1Q13. Effect of the variation in the fair value of biological assets In 1Q13, the effect of the variation in the fair value of biological assets was a positive variation of R$ 62 million, driven by the increase in wood prices, despite the negative impact from the increase in Company's average cost of capital used to calculate the fair value of its forests. The effect from the depletion of the fair value of biological assets on cost of goods sold was R$ 104 million in 1Q13, unchanged from the prior quarter. As a result, the non-cash effect of the variation in the fair value of biological assets on operating income (EBIT) was a loss of R$ 42 million in 1Q13. Operating Cash Flow (EBITDA) Instruction 527/12, issued by the Securities and Exchange Commission of Brazil (CVM) established rules for the calculation of EBITDA. These rules, which are effective as of January 1, 2013, define EBITDA as net income plus income taxes, the net financial result, amortization, depreciation and depletion. Given its commitment to transparency and fair disclosure of information, and in accordance with article 4 of the referred instruction, the Company considers as necessary adjustments to the EBITDA, the effects of the equity income, of the variation in the fair value of biological assets, of the proportional EBITDA from jointly-owned subsidiaries (Vale do Corisco) as well as other items that may contribute to a better understanding of its information. Therefore, the company will adopt the term "adjusted EBITDA" to express this figure as of this quarter. R$ million 1Q13 4Q12 1Q12 1Q13/4Q12 1Q13/1Q12 Net Income (loss) % -56% (+) Income taxes and social contribution % -65% (+) Net Financial Revenues (17) 78 (54) n/a -69% (+) Depreciation, amortization, depletion % 60% Adjustments according to IN CVM 527/12 art. 4º (-) Equity Pickup (1) (0) (4) 65% -77% (-) Biological assets adjustment (62) (113) (435) -46% -86% (+) Vale do Corisco % 16% Ajusted EBITDA % 23% Adjusted EBITDA Margin 36% 35% 32% 1 p.p. 4 p.p. N / A - Not applicable Note: EBITDA margin is calculated considering the pro forma net revenue, which includes Vale do Corisco 25

29 Comments on company performance Impacted by the appreciation of the exchange rate in early 2013, which reduced imports of packaged products, the paper and packaging markets presented a solid performance in Brazil compared with 1Q12, despite the slow economic growth. In this context, Klabin improved its sales mix, increasing the share of products sold to the domestic market, significantly increasing net revenue compared with the same period in the previous year. As a result, despite the typical seasonal effects in the quarter, operating cash flow remained in line with 4Q12, which benefitted from a more positive environment, leading to a substantial increase of 23% in adjusted EBITDA over the same period a year earlier. Operating cash flow (adjusted EBITDA) totaled R$ 384 million in the first quarter, with an EBITDA margin of 36%. This figure includes EBITDA related to 51% of wood sales by Florestal Vale do Corisco S.A. (Klabin's share in the company), in the amount of R$ 7 million. Indebtedness and Financial Investments Gross debt stood at R$ 5,886 million on March 31, compared with R$ 6,035 million on December 31, The reduction was mainly due to amortization and the impact of foreign exchange variation on foreign-currency debt. Of this total, R$ 4,152 million, or 71% (US$ 2,062 million) was denominated in foreign currency, primarily export pre-payment facilities. Cash and financial investments remained stable at R$ 2,750 million. This amount exceeds the amortization of loans maturing in the next 33 months. Despite amortization, the cash generation kept the cash and financial investments stable during the quarter. Net debt stood at R$ 3,136 million on March 31, R$ 142 million lower than the R$ 3,278 million recorded on December 31, The better performance of the Company's results and the relatively stable exchange rate in the quarter reduced the net debt/adjusted EBITDA ratio from 2.4x in 4Q12 to 2.2x in 1Q13. At the end of March, the net foreign exchange exposure was US$ 1,903 million, of which US$ 2,062 million corresponded to export pre-payment facilities maturing by 2022 and with average terms of over 4 years and assets in foreign currency, maturing in the short term, of US$ 159 million. The average maturity term stood at 41 months (31 months for local currency debt and 44 months for foreign currency debt). At the end of March, short-term debt represented 18% of total debt, and the average borrowing costs in local and foreign currency stood at 6.72% p.a. and 4.50% p.a., respectively. 26

30 mar-11 jun-11 set-11 dez-11 mar-12 jun-12 set-12 dez-12 mar (A free translation of the original in Portuguese) Comments on company performance Net Debt/Adjusted EBITDA Dívida Líquida (R$ milhões) 2.3 Net Debt / Adjusted EBITDA (LTM) Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec Mar-13 6,0 5,5 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0-0,5-1,0-1,5-2,0 LTM: Last twelve months Endividamento Líquido Endividamento Liq. / EBITDA (UDM) Financial Result Financial expenses came to R$ 89 million in 1Q13, in line with 1Q12. Financial revenues came to R$ 46 million in the quarter, versus R$ 68 million in 1Q12, mainly due to the reductions in the Selic benchmark interest rate in With little dollar volatility during the quarter, the net foreign exchange variation was positive by R$ 60 million. Note that the effect from foreign exchange variation on the company's balance sheet has a merely accounting effect. The financial result, excluding foreign exchange variations, was an expense of R$ 43 million in 1Q13, versus an expense of R$ 21 million in 1Q12. 27

31 Comments on company performance Net Income The Company posted net income of R$ 202 million in 1Q13, primarily reflecting the operating cash flow in the period. Business Performance Consolidated information by business unit in 1Q13. Net revenue R$ million Forestry Papers Conversion Consolidation adjustments Domestic market Exports Third part revenue Segments revenue (370) - Total net revenue (370) Change in fair value - biological assets Cost of goods sold (229) (482) (376) 367 (720) Gross income (3) 408 Operating expenses (19) (74) (49) - (142) Operating results before financial results (3) 266 Note: In this table, total net revenue includes sales of other products. Nota: * Forestry cost of goods sold includes the exaustion of the fair value of biological assets of R$ 104 million in the period. Total BUSINESS UNIT - FORESTRY thousand tonnes 1Q13 4Q12 1Q12 1Q13/4Q12 1Q13/1Q12 Wood % -11% R$ million Wood % -3% In 1Q13, the depreciation of the reais against the dollar and the improvement in the U.S. construction industry continued to fuel exports of wood products to Klabin's clients. Even so, wood log sales to the Company's third parties fell by 11% over 1Q12, totaling 641 thousand tonnes, as a result of the heavy rainfall levels in the south region of Brazil in the period, which affected wood transportation, and the increase in wood transfers to paper producers. Net revenue from wood sales totaled R$ 69 million in 1Q13, 3% down on 1Q12. The cost reduction program at the Forestry Unit, whose initial results became apparent in September, affected the 4Q12 results and continued to affect costs in 1Q13. The measures involved benchmarking, implementing expense matrix management and the insourcing of planting and harvesting. 28

32 Comments on company performance BUSINESS UNIT - PAPER thousand tonnes 1Q13 4Q12 1Q12 1Q13/4Q12 1Q13/1Q12 Kraftliner DM % 25% Kraftliner EM % -22% Total Kraftliner % -5% Coated boards DM % 6% Coated boards EM % -6% Total Coated boards % 1% Total Paper % -1% R$ million Kraftliner % 16% Coated boards % 9% Total Paper % 11% Kraftliner The increase of approximately 6% in scrap prices in Europe supported the high kraftliner prices in 1Q13, consequently benefitting producers. According to FOEX, first-quarter international prices stood at 582/ton in euros, in line with 4Q12 and 12% up over 1Q12 (2% and 13% up, respectively, in dollars). Sales volume fell by 5% over 1Q12, due to the higher internal transfers of kraftliner for the production of corrugated boxes. However, net revenue increased by 16%. Domestic sales remained solid in 1Q13, totaling 42 thousand tonnes, 25% up in 1Q12. As a result, exports contracted, reaching 48 thousand tonnes. The mix improved considerably, since the domestic market accounted for 47% of total sales, versus 36% in 1Q12. Coated boards According to Bracelpa, domestic demand for coated boards, excluding liquid packaging boards, increased by 3% in relation to 1Q12. Klabin's domestic sales of coated boards, including liquid packaging boards, moved up by 6% over the same period last year. Klabin concentrated sales in the domestic market in the quarter, which came to 93 thousand tonnes, with exports totaling 72 thousand tonnes, 6% down on 1Q12, giving a total of 165 thousand tonnes, 1% higher than in the same period a year before. Net revenue stood at R$ 376 million, 9% up on 1Q12. 29

33 Comments on company performance BUSINESS UNIT - CONVERSION thousand tonnes 1Q13 4Q12 1Q12 1Q13/4Q12 1Q13/1Q12 Total conversion % 8% R$ million Total conversion % 12% According to ABPO, the corrugated box market expanded in 1Q13, with a 4% increase in Brazilian shipments of boxes and boards over 1Q12. In addition to the significant market growth, the Company's strategy of diversifying its client base for a steady adequate margin level has been contributing to these better results. The new corrugator in the Jundiaí (SP) plant is still in its introductory phase and will continue its operations in the coming months to meet the increased volume expected for the plant in the following quarters. Preliminary data from the National Cement Industry Union (SNIC) and market estimates indicate that domestic cement sales were down 2% in 1Q13 year over year, mainly due to the slowdown of the civil construction segment. The sales volume of converted products totaled 164 thousand tonnes in 1Q13, while net revenue stood at R$ 468 million. Compared to 1Q12, sales volume grew 8%, while net revenue increased by 12%. Capital Expenditure R$ million 1Q13 Forestry 21 Maintenance 60 Special Projects 6 Growth 65 Total 152 scheduled for mid Klabin invested R$ 152 million in 1Q13. Of this total, R$ 60 million went to the continuity of mill operations, R$ 21 million to forestry operations, R$ 6 million to special projects and R$ 65 million to expanding sack kraft and recycled paper capacity. The installation of the sack kraft machinery in Correia Pinto (SC) is within budget and schedule. The construction works have already been concluded and equipment has started to be installed. The Goiana plant is undergoing the land preparation and piping process in order to receive the 110 thousand tonne per year recycled paper machine. Start-up is The last Board of Directors' Meeting held on April 24 approved one more high-return project for the modernization of the Monte Alegre (PR) lumber yard, through the elimination of lumber reception lines so that the plant can receive 7-meter wood logs. The project will be carried out during the 2014 maintenance stoppage. 30

34 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 (A free translation of the original in Portuguese) Comments on company performance Capital Markets Stock performance In 1Q13, Klabin's preferred shares (KLBN4) appreciated by 9%, while the Ibovespa index depreciated 8%. Klabin stock was traded in all sessions on the BM&FBovespa, registering 351,000 transactions that involved 142 million shares, for average daily trading volume of R$ 32 million, 1% higher than in the previous quarter. Klabin's capital stock is represented by 918 million shares, comprising 317 million common and 601 million preferred shares. Klabin stock is also traded on the U.S. over-the-counter market as Level 1 ADRs, under the ticker KLBAY. Performance KLBN4 x Brazilian Index (Ibovespa) Average Daily Volume (R$ million/day) Klabin Ibovespa Index Dividends The Extraordinary Board of Directors' Meeting held on April 23 approved the distribution of supplementary dividends, which were paid as of April 23, corresponding to R$ per lot of one thousand common shares and R$ per lot of one thousand preferred shares, totaling R$ 76 million. Rating On March 15, 2013, Standard & Poor's Rating Services assigned investment grade to the Company, upgrading its rating from "BB+" to "BBB-" (Investment Grade) in its global scale and from "braa+" to "braaa" in its domestic scale, with a stable outlook. This confirms the rating previously assigned by Fitch Ratings. 31

35 Klabin S.A. Quarterly information for the three-month period ended March 31, 2013 PricewaterhouseCoopers Auditores Independentes