klabin s.a.ri.klabin.com.br/enu/2484/freetranslationitrjun14.pdf · (a free translation of the...

(A free translation of the original in Portuguese)

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

(A free translation of the original in Portuguese)

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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 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - 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.

Klabin S.A.

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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, 2014. 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

(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. 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

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(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. Version: 2 1. General information Corporate name KLABIN S.A. Date of adoption of the 10/26/2001 corporate name Type Public company Previous corporate name KLABIN RIOCELL S.A. Date of constitution 11/8/1978 Federal Corporate Taxpayers' Registration Number (CNPJ)

89.637.490/0001-45

Brazilian Securities Commission (CVM) code

1265-3

CVM registration date 8/6/1997 CVM registration status Active Date of effectiveness of status 8/6/1997 Home country Brazil Country in which the securities Brazil are held in custody Other countries in which the securities can be traded Country Date of admission The United States of America 12/01/1994 Activity sector Paper and pulp Description of activities 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.

Issuer category 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 www.klabin.com.br 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

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(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. Version: 2 2. Address Mail address Avenida Brigadeiro Faria Lima, 3600, 3o., 4o. e 5o. andares, Itaim Bibi, São Paulo, SP,

Brasil, CEP 04538-132, Phone (11) 30465800, Fax (11) 30465846, E-mail: [email protected]

Headquarters' address Avenida Brigadeiro Faria Lima, 3600, 3o., 4o. e 5o. andares, Itaim Bibi, São Paulo, SP,


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(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. 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 1/9/2014

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(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. Version: 2 4. Auditor Does the issuer have an auditor? Yes CVM code 287-9 Type of auditor Brazilian Firm Name/corporate name PricewaterhouseCoopers Auditores Independentes Individual Taxpayers' Registration Number (CPF)/ Federal Corporate Taxpayers' Registration Number (CNPJ) 61.562.112/0001-20 Period of services 4/1/2012

Partner responsible Period of services CPF

Tadeu Cendon Ferreira 4/1/2012 530.920.666-34

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(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. Version: 2 5. Share registrar Does the Company have a service provider? Yes Corporate name ITAU CORRETORA DE VALORES S.A. CNPJ 61.194.353/0001-64 Period of services 11/4/1998 Service address Av. Brigadeiro Faria Lima, 3400, 10º andar, Itaim Bibi, São Paulo, SP, Brasil, CEP

04538-133, Phone (11) 50297780, Fax (11) 50291920, E-mail: [email protected]

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(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. Version: 2 6. Investor Relations Officer or equivalent Name Antonio Sergio Alfano Investor Relations Officer CPF/CNPJ 875.349.248-04 Mail address Avenida Brigadeiro Faria Lima 3600, 4o. andar, Itaim Bibi, São Paulo, SP,


Date when the person assumed the position 4/1/2008 Date when the person left the position

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(A free translation of the original in Portuguese) (Unaudited) Registration Form - 2014 - KLABIN S.A. 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

04538-132, Phone (11) 30468404, Fax (11) 30465833, E-mail: [email protected]

KLABIN614MEL.DOCX

(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 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 6/30/2014 8 1/1/2013 to 6/30/2013 9 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 6/30/2014 16 1/1/2013 to 6/30/2013 17 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

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 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

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(A free translation of the original in Portuguese) (Unaudited) 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 0.09520

General Stockholders' Meeting 3/20/2014 Dividend 4/9/2014 Preferred 0.09520

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Parent company financial statements/balance sheet - assets (All amounts in thousands of reais)

Code Description Current quarter

6/30/2014 Previous year

12/31/2012 1 Total assets 19,416,252 14,642,043 1.01 Current assets 7,143,818 4,614,938 1.01.01 Cash and cash equivalents 4,636,497 2,401,822 1.01.02 Financial investments 471,337 249,511 1.01.02.01 Financial investments measured at fair value 471,337 249,511 1.01.02.01.02 Available-for-sale securities 471,337 249,511 1.01.03 Accounts receivable 1,267,513 1,307,523 1.01.03.01 Customers 869,027 933,886 1.01.03.01.01 Trade receivables 916,256 981,039 1.01.03.01.02 Provision for impairment of trade receivables -47,229 -47,153 1.01.03.02 Other receivables 398,486 373,637 1.01.03.02.01 Related parties 398,486 373,637 1.01.04 Inventory 486,824 457,636 1.01.06 Taxes recoverable 223,472 113,687 1.01.06.01 Current taxes recoverable 223,472 113,687 1.01.07 Prepaid expenses 24,602 27,787 1.01.07.01 Prepaid expenses - third parties 19,760 22,490 1.01.07.02 Prepaid expenses - related parties 4,842 5,297 1.01.08 Other current assets 33,573 56,972 1.01.08.03 Other 33,573 56,972 1.02 Non-current assets 12,272,434 10,027,105 1.02.01 Long-term receivables 3,531,492 3,201,346 1.02.01.05 Biological assets 3,106,923 2,819,598 1.02.01.08 Receivables from related parties 1,928 1,526 1.02.01.08.02 Receivables from subsidiaries 1,928 1,526 1.02.01.09 Other non-current assets 422,641 380,222 1.02.01.09.03 Taxes recoverable 132,678 123,684 1.02.01.09.04 Judicial deposits 85,545 89,537 1.02.01.09.05 Other non-current assets 204,418 167,001 1.02.02 Investments 1,215,450 1,145,636 1.02.02.01 Corporate investments 1,203,908 1,134,094 1.02.02.01.02 Investments in subsidiaries 1,203,908 1,134,094 1.02.02.02 Investment properties 11,542 11,542 1.02.03 Property, plant and equipment 7,514,114 5,670,990 1.02.04 Intangible assets 11,378 9,133 1.02.04.01 Intangible assets 11,378 9,133

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Parent company financial statements/balance sheet - liabilities and equity (All amounts in thousands of reais)


6/30/2014 Previous year

12/31/2012 2 Total liabilities and equity 19,416,252 14,642,043 2.01 Current liabilities 2,771,237 1,799,847 2.01.01 Social and labor obligations 130,044 125,415 2.01.02 Trade payables 1,222,324 342,126 2.01.03 Tax obligations 71,223 54,759 2.01.04 Borrowings 1,201,194 1,126,153 2.01.04.01 Borrowings 1,201,194 1,126,153 2.01.05 Other obligations 146,452 151,394 2.01.05.01 Payables to related parties 37,172 52,912 2.01.05.01.02 Payables to subsidiaries 33,920 49,475 2.01.05.01.04 Payables to other related parties 3,252 3,437 2.01.05.02 Other 109,280 98,482 2.01.05.02.04 Enrollment in Tax Recovery Program (REFIS) 50,400 50,400 2.01.05.02.05 Other payables and provision 58,880 48,082 2.02 Non-current liabilities 9,210,259 7,449,529 2.02.01 Borrowings 7,149,657 5,842,135 2.02.01.01 Borrowings 5,987,499 5,842,135 2.02.01.02 Debentures 1,162,158 0 2.02.02 Other obligations 459,422 466,289 2.02.02.02 Other 459,422 466,289 2.02.02.02.03 Enrollment in REFIS 389,274 393,492 2.02.02.02.04 Other 70,148 72,797 2.02.03 Deferred taxes 1,513,698 1,045,201 2.02.03.01 Deferred income tax and social contribution 1,513,698 1,045,201 2.02.04 Provision 87,482 95,904 2.02.04.01 Provision for tax, social security, labor and civil contingencies 87,482 95,904 2.03 Equity 7,434,756 5,392,667 2.03.01 Share capital 2,271,500 2,271,500 2.03.02 Capital reserves 1,295,919 4,419 2.03.02.07 Goodwill on acquisition of shares 7,376 4,419 2.03.02.08 Debentures convertible into shares 1,260,040 0 2.03.02.09 Subscription bonus - debentures 28,503 0 2.03.03 Revaluation reserves 48,914 49,269 2.03.04 Revenue reserves 1,914,480 2,002,042 2.03.04.01 Legal reserve 61,886 61,886 2.03.04.02 Statutory reserve 506,342 506,413 2.03.04.07 Tax incentive reserve 5,583 5,583 2.03.04.08 Additional dividend proposed 0 90,006 2.03.04.09 Treasury shares -155,392 -157,907 2.03.04.10 Biological assets reserve 1,496,061 1,496,061 2.03.05 Retained earnings 851,047 0 2.03.06 Carrying value adjustments 1,052,896 1,065,437

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Code Description

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

3.01 Revenue from sales and/or services 1,128,705 2,307,477 1,055,448 2,107,297 3.02 Cost of products and/or services sold -814,013 -1,175,955 -735,763 -1,397,069 3.02.01 Change in fair value of biological assets 115,356 557,129 54,145 116,028 3.02.02 Cost of sales -929,369 -1,733,084 -789,908 -1,513,097 3.03 Gross profit 314,692 1,131,522 319,685 710,228 3.04 Operating income (expenses) -118,448 -200,345 -115,371 -238,018 3.04.01 Selling expenses -83,152 -173,494 -77,820 -156,560 3.04.02 General and administrative expenses -71,517 -142,838 -65,779 -128,535 3.04.04 Other operating income 16,435 24,411 3,816 11,875 3.04.06 Equity in the results of investees 19,786 91,576 24,412 35,202 3.05 Profit before finance result and taxes 196,244 931,177 204,314 472,210 3.06 Finance result 139,469 305,223 -417,818 -401,627 3.07 Profit before taxation 335,713 1,236,400 -213,504 70,583 3.08 Income tax and social contribution -92,195 -385,708 83,679 1,146 3.08.01 Current -68,107 83,101 -36,345 -81,402 3.08.02 Deferred -24,088 -468,809 120,024 82,548 3.09 Profit (loss) for the period from continuing operations 243,518 850,692 -129,825 71,729 3.11 Profit (loss) for the period 243,518 850,692 -129,825 71,729 3.99 Earnings per share - (R$/share) 3.99.01 Basic earnings per share 3.99.01.01 Common shares 0.04630 0.15810 -0.19490 0.07600 3.99.01.02 Preferred shares 0.04630 0.15810 -0.21440 0.08350 3.99.02 Diluted earnings per share 3.99.02.01 Common shares 0.04630 0.15810 -0.19440 0.07600 3.99.02.02 Preferred shares 0.04630 0.15810 -0.21440 0.08350

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Parent company financial statements/statement of comprehensive income (loss) (All amounts in thousands of reais)

Code Description



1/1/2014 to 6/30/2014


4/1/2013 to 6/30/2013


1/1/2013 to 6/30/2013

4.01 Profit (loss) for the period 243,518 850,692 -129,825 71,729 4.02 Other comprehensive income (loss) -1,795 -12,538 2,069 -8,182 4.02.01 Foreign currency translation adjustments -1,795 -12,538 2,069 -341 4.02.02 Actuarial liability restatement 0 0 0 -7,841 4.03 Comprehensive income (loss) for the period 241,723 838,154 -127,756 63,547

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Code Description


1/1/2014 to 6/30/2014

Accumulated - previous year

1/1/2013 to 6/30/2013 6.01 Net cash provided by operating activities 465,750 469,282 6.01.01 Cash from operations 814,701 467,451 6.01.01.01 Profit for the period 850,692 71,729 6.01.01.02 Depreciation and amortization 122,905 114,407 6.01.01.03 Change in fair value of biological assets -557,129 -116,028 6.01.01.04 Depletion of biological assets 296,203 200,031 6.01.01.05 Deferred income tax and social contribution 468,809 -82,548 6.01.01.06 Interest and exchange variations on borrowings -110,403 491,362 6.01.01.07 Payment of interest on borrowings -171,400 -150,737 6.01.01.08 Accrued interest - REFIS 21,249 16,900 6.01.91.09 Gain (loss) on disposal of assets and subsidiaries -3,580 2,558 6.01.01.10 Equity in the results of investees -91,576 -35,202 6.01.01.11 Income tax and social contribution paid -7,453 -36,017 6.01.01.12 Interest, monetary variation and interest on results of debentures -45,247 0 6.01.01.13 Amortization - adjustment at present value - debentures 25,798 0 6.01.01.14 Other 15,833 -9,004 6.01.02 Changes in assets and liabilities -348,951 1,831 6.01.02.01 Trade receivables and related parties 39,934 -69,224 6.01.02.02 Inventory -29,188 -11,417 6.01.02.03 Taxes recoverable -111,326 89,424 6.01.02.04 Securities (available-for-sale securities) -221,826 1,311 6.01.02.05 Prepaid expenses 3,185 1,813 6.01.02.06 Other assets 19,413 -1,410 6.01.02.07 Trade payables -37,178 54,840 6.01.02.08 Tax obligations 16,464 -30,659 6.01.02.09 Social and labor obligations 4,629 -14,007 6.01.02.10 Other liabilities -33,058 -18,840 6.02 Net cash used in investing activities -1,116,395 -216,429 6.02.01 Purchases of property, plant and equipment (net of taxes) -1,107,695 -279,842 6.02.02 Planting cost of biological assets (net of taxes) -26,060 -26,160 6.02.03 Sale of assets 6,261 13,850 6.02.04 Acquisition of investments and capital contributions - subsidiaries 0 -9,022 6.02.06 Dividends received from subsidiaries 11,099 84,745 6.03 Net cash (used in) provided by financing activities 2,885,320 -351,445 6.03.01 New borrowings 1,066,749 257,420 6.03.02 Repayment of borrowings -564,541 -534,691 6.03.03 Dividends paid -90,077 -76,069 6.03.04 Purchase of treasury shares -2,353 -2,999 6.03.05 Disposal of treasury shares 5,391 4,894 6.03.06 Collection of debentures 2,470,151 0 6.05 Increase (decrease) in cash and cash equivalents 2,234,675 -98,592 6.05.01 Cash and cash equivalents at the beginning of the period 2,401,822 2,157,148 6.05.02 Cash and cash equivalents at the end of the period 4,636,497 2,058,556

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Parent company financial statements/statement of changes in equity - 1/1/2014 to 6/30/2014 (All amounts in thousands of reais)

Code Description Paid-up

share capital

Capital reserves, options granted and

treasury shares Revenue reserves Retained earnings

Other comprehensive

income (loss) Equity 5.01 Opening balances 2,271,500 4,419 2,051,311 0 1,065,437 5,392,667 5.03 Adjusted opening balances 2,271,500 4,419 2,051,311 0 1,065,437 5,392,667 5.04 Capital transactions with owners 0 1,291,500 -87,562 0 -2,434 1,201,504 5.04.04 Purchase of treasury shares 0 0 -2,353 0 0 -2,353 5.04.05 Disposal of treasury shares 0 2,957 2,434 0 0 5,391 5.04.06 Dividends 0 0 -90,077 0 0 -90,077 5.04.08 Award of treasury shares 0 0 2,434 0 -2,434 0 5.04.09 Issuance of debentures convertible into shares 0 1,288,543 0 0 0 1,288,543 5.05 Total comprehensive income (loss) 0 0 0 850,692 -12,538 838,154 5.05.01 Profit for the period 0 0 0 850,692 0 850,692 5.05.02 Other comprehensive income (loss) 0 0 0 0 -12,538 -12,538 5.05.02.04 Translation adjustments for the period 0 0 0 0 -12,538 -12,538 5.06 Internal changes in equity 0 0 -355 355 2,431 2,431 5.06.02 Realization of revaluation reserve 0 0 -355 355 0 0

5.06.04 Recognition of the stock option plan remuneration 0 0 0 0 2,431 2,431

5.07 Closing balances 2,271,500 1,295,919 1,963,394 851,047 1,052,896 7,434,756

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Code Description Paid-up

share capital


treasury shares Revenue reserves Retained earnings

Other comprehensive

income Equity 5.01 Opening balances 2,271,500 1,423 2,066,619 0 1,081,379 5,420,921 5.03 Adjusted opening balances 2,271,500 1,423 2,066,619 0 1,081,379 5,420,921 5.04 Capital transactions with owners 0 2,994 -74,578 0 -2,590 -74,174 5.04.04 Purchase of treasury shares 0 0 -2,999 0 0 -2,999 5.04.05 Disposal of treasury shares 0 2,994 1,900 0 0 4,894 5.04.06 Dividends 0 0 -76,069 0 0 -76,069 5.04.08 Award of treasury shares 0 0 2,590 0 -2,590 0 5.05 Total comprehensive income (loss) 0 0 0 71,729 -8,182 63,547 5.05.01 Profit for the period 0 0 0 71,729 0 71,729 5.05.02 Other comprehensive income (loss) 0 0 0 0 -8,182 -8,182 5.05.02.04 Translation adjustments for the period 0 0 0 0 -341 -341 5.05.02.06 Restatement of the actuarial liabilities 0 0 0 0 -7,841 -7,841 5.06 Internal changes in equity 0 0 -355 355 1,463 1,463 5.06.02 Realization of revaluation reserve 0 0 -538 538 0 0 5.06.03 Taxes on realization of revaluation reserve 0 0 183 -183 0 0

5.06.04 Recognition of the stock option plan remuneration 0 0 0 0 1,463 1,463

5.07 Closing balances 2,271,500 4,417 1,991,686 72,084 1,072,070 5,411,757

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Code Description


1/1/2014 to 6/30/2014

Accumulated -prior year

1/1/2013 to 6/30/20137.01 Revenue 3,463,549 2,800,4337.01.01 Sale of products and services 2,900,234 2,672,6407.01.02 Other revenue 563,390 129,8787.01.02.01 Change in fair value of biological assets 557,129 116,0287.01.02.02 Other 6,261 13,850

7.01.04 Provision/reversal of provision for impairment of trade receivables -75 -2,085

7.02 Inputs acquired from third parties -1,507,114 -1,409,9887.02.01 Cost of sales and services -514,368 -487,4257.02.02 Materials, energy, outsourced services and other -992,746 -922,5637.03 Gross value added 1,956,435 1,390,4457.04 Retentions -419,108 -314,4387.04.01 Depreciation, amortization and depletion -419,108 -314,4387.05 Net value added generated by the Company 1,537,327 1,076,0077.06 Value added received through transfer 639,252 162,2177.06.01 Equity in the results of investees 91,576 35,2027.06.02 Finance income 547,676 127,0157.07 Total value added to distribute 2,176,579 1,238,2247.08 Distribution of value added 2,176,579 1,238,2247.08.01 Personnel 396,071 324,2927.08.01.01 Direct compensation 301,794 249,2447.08.01.02 Benefits 72,060 56,1207.08.01.03 Government Severance Indemnity Fund for Employees (FGTS) 22,217 18,9287.08.02 Taxes and contributions 687,363 313,5617.08.02.01 Federal 611,000 223,6257.08.02.02 State 73,163 87,0287.08.02.03 Municipal 3,200 2,9087.08.03 Remuneration of third-party capital 242,453 528,6427.08.03.01 Interest 242,453 528,6427.08.04 Remuneration of own capital 850,692 71,7297.08.04.03 Retained profits 850,692 71,729

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/balance sheet - assets (All amounts in thousands of reais)


6/30/2014 Prior year

12/31/2012 1 Total assets 19,735,798 14,919,496 1.01 Current assets 7,369,835 4,826,148 1.01.01 Cash and cash equivalents 5,051,041 2,729,872 1.01.02 Financial investments 471,337 249,511 1.01.02.01 Financial investments measured at fair value 471,337 249,511 1.01.02.01.02 Available-for-sale securities 471,337 249,511 1.01.03 Accounts receivable 1,026,780 1,145,154 1.01.03.01 Customers 1,026,780 1,145,154 1.01.03.01.01 Trade receivables 1,074,087 1,192,452 1.01.03.01.02 Provision for impairment of trade receivables -47,307 -47,298 1.01.04 Inventory 530,459 495,852 1.01.06 Taxes recoverable 231,564 120,050 1.01.06.01 Current taxes recoverable 231,564 120,050 1.01.07 Prepaid expenses 24,602 27,867 1.01.07.01 Prepaid expenses - third parties 19,760 22,570 1.01.07.02 Prepaid expenses - related parties 4,842 5,297 1.01.08 Other current assets 34,052 57,842 1.01.08.03 Other 34,052 57,842 1.02 Non-current assets 12,365,963 10,093,348 1.02.01 Long-term receivables 4,127,831 3,707,960 1.02.01.05 Biological assets 3,708,818 3,321,985 1.02.01.09 Other non-current assets 419,013 385,975 1.02.01.09.03 Taxes recoverable 132,678 123,684 1.02.01.09.04 Judicial deposits 85,545 90,969 1.02.01.09.05 Other non-current assets 200,790 171,322 1.02.02 Investments 472,830 466,581 1.02.02.01 Corporate investments 461,288 455,039 1.02.02.01.01 Investments in associates 461,288 455,039 1.02.02.02 Investment properties 11,542 11,542 1.02.03 Property, plant and equipment 7,753,756 5,909,507 1.02.04 Intangible assets 11,546 9,300 1.02.04.01 Intangible assets 11,546 9,300

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/balance sheet - liabilities and equity (All amounts in thousands of reais)


6/30/2014 Prior year

12/31/2013 2 Total liabilities and equity 19,735,798 14,919,496 2.01 Current liabilities 2,761,889 1,779,513 2.01.01 Social and labor obligations 131,470 127,356 2.01.02 Trade payables 1,227,436 345,384 2.01.03 Tax obligations 79,662 61,507 2.01.04 Borrowings 1,200,082 1,124,976 2.01.04.01 Borrowings 1,200,082 1,124,976 2.01.05 Other obligations 123,239 120,290 2.01.05.01 Payables to related parties 3,252 3,437 2.01.05.01.04 Payables to other related parties 3,252 3,437 2.01.05.02 Other 119,987 116,853 2.01.05.02.04 Enrollment in REFIS 50,400 50,400 2.01.05.02.05 Other payables and provision 69,587 66,453 2.02 Non-current liabilities 9,539,153 7,747,316 2.02.01 Borrowings 7,146,353 5,838,621 2.02.01.01 Borrowings 5,984,195 5,838,621 2.02.01.02 Debentures 1,162,158 0 2.02.02 Other obligations 588,972 592,603 2.02.02.02 Other 588,972 592,603 2.02.02.02.03 Payables - investors in Special Partnership Companies (SPCs) 129,024 125,767 2.02.02.02.04 Enrollment in REFIS 389,274 393,492 2.02.02.02.05 Other 70,674 73,344 2.02.03 Deferred taxes 1,716,346 1,220,187 2.02.03.01 Deferred income tax and social contribution 1,716,346 1,220,187 2.02.04 Provision 87,482 95,905 2.02.04.01 Provision for tax, social security, labor and civil contingencies 87,482 95,905 2.03 Consolidated equity 7,434,756 5,392,667 2.03.01 Share capital 2,271,500 2,271,500 2.03.02 Capital reserves 1,295,919 4,419 2.03.02.07 Goodwill on the sale of shares 7,376 4,419 2.03.02.08 Debentures convertible into shares 1,260,040 0 2.03.02.09 Subscription bonus - debentures 28,503 0 2.03.03 Revaluation reserves 48,914 49,269 2.03.04 Revenue reserves 1,914,480 2,002,042 2.03.04.01 Legal reserve 61,886 61,886 2.03.04.02 Statutory reserve 506,342 506,413 2.03.04.07 Tax incentive reserve 5,583 5,583 2.03.04.08 Additional dividend proposed 0 90,006 2.03.04.09 Treasury shares -155,392 -157,907 2.03.04.10 Biological assets reserve 1,496,061 1,496,061 2.03.05 Retained earnings 851,047 0 2.03.06 Carrying value adjustments 1,052,896 1,065,437

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/statement of operations (All amounts in thousands of reais unless otherwise stated)

Code Description



1/1/2014 to 6/30/2014


4/1/2013 to 6/30/2013


1/1/2013 to 6/30/2013

3.01 Revenue from sales and/or services 1,151,093 2,354,564 1,093,793 2,160,197 3.02 Cost of products and/or services sold -812,114 -1,092,894 -736,975 -1,395,065 3.02.01 Change in fair value of biological assets 129,604 651,676 70,267 131,876 3.02.02 Cost of sales -941,718 -1,744,570 -807,242 -1,526,941 3.03 Gross profit 338,979 1,261,670 356,818 765,132 3.04 Operating expenses -137,090 -293,702 -147,745 -290,232 3.04.01 Selling expenses -87,474 -185,655 -86,645 -173,124 3.04.02 General and administrative expenses -72,882 -145,812 -67,039 -131,234 3.04.04 Other operating income 17,459 26,416 4,574 11,938 3.04.06 Equity in the results of investees 5,807 11,349 1,365 2,188 3.05 Profit before finance result and taxes 201,889 967,968 209,073 474,900 3.06 Finance result 137,519 303,286 -418,196 -401,242 3.07 Profit before taxation 339,408 1,271,254 -209,123 73,658 3.08 Income tax and social contribution -95,890 -420,562 79,298 -1,929 3.08.01 Current -71,208 75,885 -38,389 -85,459 3.08.02 Deferred -24,682 -496,447 117,687 83,530 3.09 Profit (loss) for the period from continuing operations 243,518 850,692 -129,825 71,729 3.11 Consolidated profit (loss) for the period 243,518 850,692 -129,825 71,729 3.11.01 Attributable to the owners of the parent company 243,518 850,692 -129,825 71,729 3.99 Earnings per share - (R$/share) 3.99.01 Basic earnings per share 3.99.01.01 Common shares 0.04630 0.15810 0.19490 0.07600 3.99.01.02 Preferred shares 0.04630 0.15810 0.21440 0.08350 3.99.02 Diluted earnings per share 3.99.02.01 Common shares 0.04630 0.15810 0.19490 0.07600 3.99.02.02 Preferred shares 0.04630 0.18510 0.21440 0.08350

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/statement of comprehensive income (loss) (All amounts in thousands of reais)

Code Description



1/1/2014 to 6/30/2014


4/1/2013 to 6/30/2013


1/1/2013 to 6/30/2013

4.01 Consolidated profit for the period 243,518 850,692 -129,825 71,729 4.02 Other comprehensive income (loss) -1,795 -12,538 2,069 -8,182 4.02.01 Foreign currency translation adjustments -1,795 -12,538 2,069 -341 4.02.02 Actuarial liability restatement 0 0 0 -7,841 4.03 Consolidated comprehensive income (loss) for the period 241,723 838,154 -127,756 63,547 4.03.01 Attributable to the owners of the parent company 241,723 838,154 -127,756 63,547

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/statement of cash flows - indirect method (All amounts in thousands of reais)

Code Description

Accumulated - current period

1/1/2014 to 6/30/2014


1/1/2013 to 6/30/2013 6.01 Net cash provided by operating activities 582,659 578,611 6.01.01 Cash from operations 834,000 503,800 6.01.01.01 Profit for the period (attributable to controlling interests) 850,692 71,729 6.01.01.02 Depreciation and amortization 123,458 115,098 6.01.01.03 Change in fair value of biological assets -651,676 -131,876 6.01.01.04 Depletion of biological assets 310,925 221,226 6.01.01.05 Deferred income tax and social contribution 496,447 -83,530 6.01.01.06 Interest and exchange variations on borrowings -110,128 491,230 6.01.01.07 Payment of interest on borrowings -171,400 -150,737 6.01.01.08 Accrued interest - REFIS 21,249 16,900 6.01.01.09 Gain on disposal of assets -3,580 2,558 6.01.01.10 Equity in the results of investees -11,349 -2,188 6.01.01.11 Income tax and social contribution paid -9,043 -37,283 6.01.01.12 Interest, monetary variation and interest on results of debentures -45,247 0 6.01.01.13 Amortization - adjustment at present value - debentures 25,798 0 6.01.01.14 Other 7,854 -9,327 6.01.02 Changes in assets and liabilities -251,341 74,811 6.01.02.01 Trade receivables 118,365 -32,427 6.01.02.02 Inventory -34,607 -16,628 6.01.02.03 Taxes recoverable -111,465 91,281 6.01.02.04 Securities (available-for-sale securities) -221,826 1,311 6.01.02.05 Prepaid expenses 3,265 1,803 6.01.02.06 Other assets 29,587 31,916 6.01.02.07 Trade payables -35,324 57,882 6.01.02.08 Tax obligations 18,155 -30,922 6.01.02.09 Social and labor obligations 4,114 -13,553 6.01.02.10 Other liabilities -21,605 -15,852 6.02 Net cash used in investing activities -1,146,484 -322,043 6.02.01 Purchases of property, plant and equipment (net of taxes) -1,112,106 -309,703 6.02.02 Planting cost of biological assets (net of taxes) -45,739 -36,390 6.02.04 Receipts on sale of assets and subsidiaries 6,261 13,850 6.02.06 Results received from subsidiaries 5,100 10,200 6.03 Net cash (used in) provided by financing activities 2,884,994 -355,749 6.03.01 New borrowings 1,066,749 253,116 6.03.02 Repayments of borrowings -564,541 -534,691 6.03.04 Withdrawal of investors - SPCs -326 0 6.03.05 Dividends paid -90,077 -76,069 6.03.06 Purchase of treasury shares -2,353 -2,999 6.03.07 Disposal of treasury shares 5,391 4,894 6.03.08 Collection of debentures (net of funding costs) 2,470,151 0 6.05 Increase (decrease) in cash and cash equivalents 2,321,169 -99,181 6.05.01 Cash and cash equivalents at the beginning of the period 2,729,872 2,517,312 6.05.02 Cash and cash equivalents at the end of the period 5,051,041 2,418,131

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/statement of changes in equity - 1/1/2014 to 6/30/2014 (All amounts in thousands of reais)

Code Description

Paid-up share

capital


treasury shares Revenue reserves

Retained earnings

Other comprehensive

income (loss) Equity

Non-controlling

interests Consolidated

equity 5.01 Opening balances 2,271,500 4,419 2,051,311 0 1,065,437 5,392,667 0 5,392,667 5.03 Adjusted opening balances 2,271,500 4,419 2,051,311 0 1,065,437 5,392,667 0 5,392,667 5.04 Capital transactions with owners 0 1,291,500 -87,562 0 -2,434 1,201,504 0 1,201,504 5.04.04 Purchase of treasury shares 0 0 -2,353 0 0 -2,353 0 -2,353 5.04.05 Disposal of treasury shares 0 2,957 2,434 0 0 5,391 0 5,391 5.04.06 Dividends 0 0 -90,077 0 0 -90,077 0 -90,077 5.04.08 Award of treasury shares 0 0 2,434 0 -2,434 0 0 0 5.04.09 Issuance of debentures convertible into shares 0 1,288,543 0 0 0 1,288,543 0 1,288,543 5.05 Total comprehensive income (loss) 0 0 0 850,692 -12,538 838,154 0 838,154 5.05.01 Profit for the period 0 0 0 850,692 0 850,692 0 850,692 5.05.02 Other comprehensive income (loss) 0 0 0 0 -12,538 -12,538 0 -12,538 5.05.02.04 Translation adjustments for the period 0 0 0 0 -12,538 -12,538 0 -12,538 5.06 Internal changes in equity 0 0 -355 355 2,431 2,431 0 2,431 5.06.02 Realization of revaluation reserve 0 0 -355 355 0 0 0 0 5.06.04 Recognition of the stock option plan

remuneration 0 0 0 0 2,431 2,431 0 2,431 5.07 Closing balances 2,271,500 1,295,919 1,963,394 851,047 1,052,896 7,434,756 0 7,434,756

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/statement of changes in equity - 1/1/2013 to 6/30/2013 (All amounts in thousands of reais)

Code Description

Paid-up share

capital


treasury shares Revenue reserves

Retained earnings

Other comprehensive

income Equity

Non-controlling

interests Consolidated

equity 5.01 Opening balances 2,271,500 1,423 2,066,619 0 1,081,379 5,420,921 0 5,420,921 5.03 Adjusted opening balances 2,271,500 1,423 2,066,619 0 1,081,379 5,420,921 0 5,420,921 5.04 Capital transactions with owners 0 2,994 -74,578 0 -2,590 -74,174 0 -74,174 5.04.04 Purchase of treasury shares 0 0 -2,999 0 0 -2,999 0 -2,999 5.04.05 Disposal of treasury shares 0 2,994 1,900 0 0 4,894 0 4,894 5.04.06 Dividends 0 0 -76,069 0 0 -76,069 0 -76,069 5.04.08 Award of treasury shares 0 0 2,590 0 -2,590 0 0 0 5.05 Total comprehensive income (loss) 0 0 0 71,729 -8,182 63,547 0 63,547 5.05.01 Profit for the period 0 0 0 71,729 0 71,729 0 71,729 5.05.02 Other comprehensive income (loss) 0 0 0 0 -8,182 -8,182 0 -8,182 5.05.02.04 Translation adjustments for the period 0 0 0 0 -341 -341 0 -341 5.05.02.06 Restatement of actuarial liabilities 0 0 0 0 -7,841 -7,841 0 -7,841 5.06 Internal changes in equity 0 0 -355 355 1,463 1,463 0 1,463 5.06.02 Realization of revaluation reserve 0 0 -538 538 0 0 0 0 5.06.03 Taxes on realization of revaluation reserve 0 0 183 -183 0 0 0 0

5.06.04 Recognition of the stock option plan remuneration 0 0 0 0 1,463 1,463 0 1,463

5.07 Closing balances 2,271,500 4,417 1,991,686 72,084 1,072,070 5,411,757 0 5,411,757

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(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Consolidated financial statements/statement of value added (All amounts in thousands of reais)

Code Description


1/1/2014 to 6/30/2014


1/1/2013 to 6/30/2013 7.01 Revenue 3,617,400 2,878,311 7.01.01 Sale of products and services 2,959,471 2,734,794 7.01.02 Other revenue 657,937 145,726 7.01.02.01 Change in fair value of biological assets 651,676 131,876 7.01.02.02 Other 6,261 13,850 7.01.04 Change in provision for impairment of trade receivables -8 -2,209 7.02 Inputs acquired from third parties -1,518,629 -1,421,810 7.02.01 Cost of sales and services -515,925 -477,633 7.02.02 Materials, energy, outsourced services and other -1,002,704 -944,177 7.03 Gross value added 2,098,771 1,456,501 7.04 Retentions -434,383 -336,324 7.04.01 Depreciation, amortization and depletion -434,383 -336,324 7.05 Net value added generated 1,664,388 1,120,177 7.06 Value added received through transfer 221,246 133,518 7.06.01 Equity in the results of investees 11,349 2,188 7.06.02 Finance income 209,897 131,330 7.07 Total value added to distribute 1,885,634 1,253,695 7.08 Distribution of value added 1,885,634 1,253,695 7.08.01 Personnel 403,528 332,116 7.08.01.01 Direct compensation 308,846 256,749 7.08.01.02 Benefits 72,379 56,393 7.08.01.03 FGTS 22,303 18,974 7.08.02 Taxes and contributions 724,803 317,278 7.08.02.01 Federal 648,440 227,342 7.08.02.02 State 73,163 87,028 7.08.02.03 Municipal 3,200 2,908 7.08.03 Remuneration of third-party capital -93,389 532,572 7.08.03.01 Interest -93,389 532,572 7.08.04 Remuneration of own capital 850,692 71,729 7.08.04.03 Retained profits 850,692 71,729

(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Comments on company performance

Page 19 of 95 KLABIN614MEL.DOCX

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.

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.

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.

Source: ABPOSource: Bracelpa

6M13

264

6M14 6M13

Kraftliner (€ / ton)

6M14

Source: FOEX

Kraftliner ( R$ / ton)

Brazilian corrugated shipments(thousand tonnes)

Brazilian coated boards shipments(thousand tonnes)

Kraftliner brown 175 g/m2 list price (€/tonneand R$/tonne)

258

6M13 6M14

1,6531,657

558

1,561

585

1,755

0%



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 12th consecutive quarterly

upturn.

Sales Volume LTM(excluding wood – million tonnes)

Adjusted EBITDA LTM(R$ million)

922 939

1,0271,089

1,180

1,2861,351

1,424 1,4521,504

1,5621,602 1,627

400

600

800

1,000

1,200

1,400

1,600

1,800

Ajusted EBITDA LTM (R$ million)

1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8

-

.5

.0

.5

.0

.5

.0

.5

.0

.5

.0

Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 Dec‐12 Mar‐13 Jun‐13 Sep‐13 Dec‐13 Mar‐14 Jun‐14



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.

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.

∆ ∆ ∆2Q14/1Q14 2Q14/2Q13 6M14/6M13

Average Rate 2.23 2.37 2.07 ‐6% 8% 2.30 2.03 13%End Rate 2.20 2.26 2.22 ‐3% ‐1% 2.20 2.22 ‐1%Source: Bacen

R$ / US$ 2Q14 1Q14 6M14 6M132Q13

Domestic market Exports

Sales volume(excluding wood – tsd tonnes)

Coated boards36%

Corrugated boxes33%

Kraftliner22%

Industrial bags8%

Others1%

Sales volume by product6M14

6M13 6M14

68%

30%

70%

32%860 861

(A free translation of the original in Portuguese) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Comments on company performance

Page 22 of 95

Net Revenue

Second‐quarter net revenue, including wood, increased by 5% over 2Q13 to R$1,151 million, influenced by the period product

and market mix.

Despite stable volume and the weaker Brazilian economic scenario, 2Q14 domestic market net revenue increased by 8% year‐

on‐year to R$894 million, thanks to the larger share of higher 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.

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.

Net revenue(R$ million)

Coated boards34%

Corrugated boxes32%

Kraftliner13%

Industrial bags12%

Wood logs8%

Others1%

Net revenue by product 6M14

Domestic market Exports

6M13 6M14

75%

24%

76%

25%2,160

2,355


Page 23 of 95

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.

Labor / third parties32%

Wood / fibers16%Chemicals

15%

Freight11%

Maintenance material/ stoppages

12%

Energy11%

Others3%

Cash cost breakdown 6M14

Labor / third parties32%

Wood / fibers15%Chemicals

15%

Freight11%

Maintenance material/ stoppages

8%

Energy11%

Others8%

Cash cost breakdown6M13


Page 24 of 95

Operating Cash Flow (EBITDA)

Despite lower sales volume due to the remodeling of the coated board machine in Monte Alegre, the slowdown in Brazilian

economic activity, and the appreciation of the real throughout the quarter, Klabin maintained its operating cash flow growth

trajectory, 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.

∆ ∆ ∆ 2Q14/1Q14 2Q14/2Q13 6M14/6M13

Net Income (loss) 244 607 (130) ‐60% N/A 851 72 1086%(+) Income taxes and social contribution 96 325 (79) ‐70% N/A 421 2 21702%(+) Net Financial Revenues (138) (166) 418 ‐17% N/A (303) 401 N/A(+) Depreciation, amortization, depletion 258 177 163 46% 58% 434 336 29%Adjustments according to IN CVM 527/12 art. 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 10 9 8 2% 12% 19 16 20%Ajusted EBITDA 334 424 309 ‐21% 8% 758 693 9%Adjusted EBITDA Margin 29% 35% 28% ‐6 p.p. 1 p.p. 32% 32% 0 p.p.N / A ‐ Not applicable

Note: EBITDA margin is calculated considering the pro forma net revenue, which includes Vale do Corisco

1Q14 2Q13 6M14 6M13R$ million 2Q14


Page 25 of 95

2,002

1,893

2,313

2,735

2,674

3,014

3,090

3,278

3,136

3,437

3,595

3,985

2,711

2,824

2.1 2.02.4 2.5

2.3 2.5 2.4 2.52.2

2.4 2.4 2.6

1.7 1.7

‐2.0

‐1.5

‐1.0

‐0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

‐

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Mar‐11 Jun‐11 Sep‐11 Dec‐11 Mar‐12 Jun‐12 Sep‐12 Dec‐12 Mar‐13 Jun‐13 Sep‐13 Dec‐13 Mar‐14 Jun‐14

Net debt

(R$ million)

Net Debt Net Debt / EBITDA (LTM)

Debt (R$ million)

Short term

Local currency 566 7% 514 7%

Foreign currency 634 7% 666 9%

Total short term 1,200 14% 1,180 16%

Long term

Local currency 3,153 38% 2,372 31%

Foreign currency 3,993 48% 4,029 53%

Total long term 7,146 86% 6,401 84%

Total local currency 3,719 45% 2,886 38%

Total foreign currency 4,627 55% 4,695 62%

Gross debt 8,346 7,581

(‐) Cash 5,522 4,870

Net debt 2,824 2,711

Net debt / EBITDA (LTM) 1.7x 1.7x

06/30/2014 03/31/2014


Page 26 of 95

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 2013.

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 2014. As a result, the net foreign exchange variation was

positive by R$102 million. Note that the exchange variation has an exclusively accounting effect on the Company’s balance

sheet, with no significant cash effect in the short term.

Business Performance Consolidated information by business unit in 6M14:

BUSINESS UNIT – FORESTRY

R$ million Forestry Papers Conversion Consolidation Total

Net revenue

Domestic market 175 597 987 ‐ 1,759

Exports ‐ 520 76 ‐ 596

Third part revenue 175 1,117 1,063 ‐ 2,355

Segments revenue 273 531 7 (811) ‐

Total net revenue 448 1,648 1,070 (811) 2,355

Change in fair value ‐ biological assets 652 ‐ ‐ ‐ 652

Cost of goods sold (564) (1,117) (878) 814 (1,745)

Gross income 536 531 192 3 1,262

Operating expenses (21) (158) (107) (8) (294)

Operating results before financial results 515 373 85 (5) 968

Note: In this table, total net revenue includes sales of other products.

Nota: * Forestry COGS includes the exaustion of the fair value of biological assets in the period.

∆ ∆ ∆2Q14/1Q14 2Q14/2Q13 6M14/6M13

Wood 887 697 689 27% 29% 1,584 1,330 19%R$ million

Wood 95 84 75 13% 26% 179 144 24%

6M136M142Q13thousand tonnes 2Q14 1Q14


Page 27 of 95

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

Kraftliner sales in 2Q14 moved up by 10% year‐on‐year to 86 thousand tonnes, fueled by exports, which totaled 52 thousand

tonnes, 19% more than in 2Q13.

The upturn in sales volume also reflects the expansion of paper capacity from the new sack kraft machine in Correia Pinto

(SC), which began operations at the end of 2013. The machine continued its learning curve in the quarter and has been

recording 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.

∆ ∆ ∆2Q14/1Q14 2Q14/2Q13 6M14/6M13

Kraftliner DM 35 33 35 6% ‐1% 67 77 ‐12%Kraftliner EM 52 72 44 ‐28% 19% 124 92 34%Total Kraftliner 86 105 78 ‐17% 10% 191 169 13%Coated boards DM 86 89 84 ‐3% 3% 175 176 ‐1%Coated boards EM 63 73 78 ‐13% ‐19% 136 150 ‐10%Total Coated boards 149 161 161 ‐8% ‐7% 311 326 ‐5%Total Paper 236 266 239 ‐11% ‐2% 501 495 1%

R$ millionKraftliner 134 171 120 ‐22% 12% 305 257 18%Coated boards 377 415 376 ‐9% 0% 792 752 5%Total Paper 511 586 495 ‐13% 3% 1,097 1,009 9%

6M142Q13 6M13thousand tonnes 2Q14 1Q14


Page 28 of 95

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

According to ABPO, the corrugated box market shrank by 3% year‐on‐year in 2Q14, reflecting the less buoyant domestic

scenario and the impact of events such as the World Cup and the lower number of working days. However, certain non‐

durable goods sectors, such as beverages and frozen food, recorded growth. In this context, Klabin continued to benefit from

its strategic commercial positioning with the 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 2013.

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.

∆ ∆ ∆2Q14/1Q14 2Q14/2Q13 6M14/6M13

Total conversion 178 173 179 2% ‐1% 351 343 2%R$ million

Total conversion 534 525 508 2% 5% 1,058 977 8%

6M14 6M132Q14 1Q14thousand tonnes 2Q13


Page 29 of 95

R$ million 2Q14 6M14

Forestry 22 45

Maintenance 85 149

Special projects and growth 82 151

Puma Project 464 813

Total 653 1,158

Investments

Klabin invested R$653 million in 2Q14, led by investments in the new

pulp plant in Ortigueira (PR). Of this total, R$85 million went to the

continuity of mill operations, R$22 million to forestry operations, R$82

million to special projects and capacity 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 earth‐

leveling phase was concluded, enabling the arrival of industrial equipment at the plant. By the end of June, there were around

2,500 people working at the location, a number which is expected to reach 5,000 by year‐end. Since the beginning of 2013,

the project has absorbed investments of R$911 million.

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‐2015. 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 2016.

(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1

KLABIN S.A.

Notes to the Quarterly Information at June 30, 2014 All amounts in thousands of reais unless otherwise stated


Klabin S.A.

Quarterly information (ITR) for the three- and six-month periods ended June 30, 2014

PricewaterhouseCoopers Auditores Independentes


KLABIN S.A.


Page 31 of 95

CONTENTS Page ASSETS 32 LIABILITIES AND EQUITY 33 STATEMENT OF OPERATIONS 34 STATEMENT OF COMPREHENSIVE INCOME (LOSS) 36 STATEMENT OF CHANGES IN EQUITY 37 STATEMENT OF CASH FLOWS 38 STATEMENT OF VALUE ADDED 39 1 GENERAL INFORMATION 40 2 BASIS OF PRESENTATION OF THE QUARTERLY INFORMATION AND SIGNIFICANT

ACCOUNTING PRACTICES 42

3 CONSOLIDATED QUARTERLY INFORMATION 49

4 CASH AND CASH EQUIVALENTS 50

5 MARKETABLE SECURITIES 50

6 TRADE RECEIVABLES 51

7 RELATED PARTIES 52

8 INVENTORY 54

9 TAXES RECOVERABLE 54

10 INCOME TAX AND SOCIAL CONTRIBUTION 55

11 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED SUBSIDIARIES 58

12 PROPERTY, PLANT AND EQUIPMENT 59

13 BIOLOGICAL ASSETS 61

14 BORROWINGS 63

15 DEBENTURES 65

16 TRADE PAYABLES 67

17 TAX, SOCIAL SECURITY, CIVIL AND LABOR PROVISION 67

18 EQUITY 69

19 NET SALES REVENUE 72

20 INCOME (EXPENSES) BY NATURE 73

21 FINANCE INCOME AND COSTS 73

22 STOCK OPTION PLAN 74

23 EARNINGS PER SHARE 75

24 OPERATING SEGMENTS 77

25 RISK MANAGEMENT AND FINANCIAL INSTRUMENTS 81

26 EMPLOYEE BENEFITS AND PENSION PLAN 86

27 INSURANCE COVERAGE 87

28 EVENTS AFTER THE REPORTING PERIOD 87


KLABIN S.A.


Page 32 of 95

BALANCE SHEET AT JUNE 30, 2014 AND DECEMBER 31, 2013 (All amounts in thousands of reais)

Parent

company Consolidated

Note 6/30/2014 12/31/2013 6/30/2014 12/31/2013

A S S E T S

Current assets

Cash and cash equivalents 4 4,636,497 2,401,822 5,051,041 2,729,872

Marketable securities 5 471,337 249,511 471,337 249,511

Trade receivables:

. Trade receivables 6 916,256 981,039 1,074,087 1,192,452

. Provision for impairment of trade receivables 6 (47,229) (47,153) (47,307) (47,298)

. Related parties 7 398,486 373,637 - -

Inventory 8 486,824 457,636 530,459 495,852

Taxes recoverable 9 223,472 113,687 231,564 120,050

Prepaid expenses - related parties 7 4,842 5,297 4,842 5,297

Prepaid expenses - third parties 19,760 22,490 19,760 22,570

Other assets 33,573 56,972 34,052 57,842

Total current assets 7,143,818 4,614,938 7,369,835 4,826,148

Non-current assets

Long-term receivables

Related parties 7 1,928 1,526 - -

Judicial deposits 17 85,545 89,537 85,545 90,969

Taxes recoverable 9 132,678 123,684 132,678 123,684

Other assets 204,418 167,001 200,790 171,322

424,569 381,748 419,013 385,975

Investments:

. Investments in subsidiaries 11 1,203,908 1,134,094 461,288 455,039

. Other 11,542 11,542 11,542 11,542

Property, plant and equipment 12 7,514,114 5,670,990 7,753,756 5,909,507

Biological assets 13 3,106,923 2,819,598 3,708,818 3,321,985

Intangible assets 11,378 9,133 11,546 9,300

11,847,865 9,645,357 11,946,950 9,707,373

Total non-current assets 12,272,434 10,027,105 12,365,963 10,093,348

Total assets 19,416,252 14,642,043 19,735,798 14,919,496

The accompanying notes are an integral part of this quarterly information.


KLABIN S.A.


Page 33 of 95

BALANCE SHEET AT JUNE 30, 2014 AND DECEMBER 31, 2013 (All amounts in thousands of reais)

Parent company Consolidated Note 6/30/2014 12/31/2013 6/30/2014 12/31/2013 LIABILITIES AND EQUITY Current liabilities Borrowings 14 1,201,194 1,126,153 1,200,082 1,124,976 Trade payables 16 1,222,324 342,126 1,227,436 345,384 Tax obligations 40,484 37,899 47,327 43,298 Provision for income tax and social contribution 10 30,739 16,860 32,335 18,209 Social security and labor charges 130,044 125,415 131,470 127,356 Related parties 7 37,172 52,912 3,252 3,437 Enrollment in Tax Recovery Program (REFIS) 17 50,400 50,400 50,400 50,400 Other payables and provision 58,880 48,082 69,587 66,453 Total current liabilities 2,771,237 1,799,847 2,761,889 1,779,513 Non-current liabilities Borrowings 14 5,987,499 5,842,135 5,984,195 5,838,621 Debentures 1,162,158 - 1,162,158 - Deferred income tax and social contribution 10 1,513,698 1,045,201 1,716,346 1,220,187 Tax, social security, labor and civil provision 17 87,482 95,904 87,482 95,905 Payables - Investors in Special Partnership Companies (SPCs) - - 129,024 125,767 Enrollment in Tax Recovery Program (REFIS) 17 389,274 393,492 389,274 393,492 Other payables and provision 70,148 72,797 70,674 73,344 Total non-current liabilities 9,210,259 7,449,529 9,539,153 7,747,316 Total liabilities 11,981,496 9,249,376 12,301,042 9,526,829 Equity Share capital 2,271,500 2,271,500 2,271,500 2,271,500 Capital reserves 1,295,919 4,419 1,295,919 4,419 Revaluation reserve 48,914 49,269 48,914 49,269 Revenue reserves 2,069,872 2,159,949 2,069,872 2,159,949 Carrying value adjustment 1,052,896 1,065,437 1,052,896 1,065,437 Retained earnings 851,047 - 851,047 - Treasury shares (155,392) (157,907) (155,392) (157,907) Total equity 18 7,434,756 5,392,667 7,434,756 5,392,667

Total liabilities and equity 19,416,252 14,642,043 19,735,798 14,919,496



KLABIN S.A.


Page 34 of 95

STATEMENT OF OPERATIONS FOR THE THREE- AND SIX-MONTH PERIODS ENDED

JUNE 30, 2014 AND 2013 (All amounts in thousands of reais unless otherwise stated)

Parent company From 4/1 to From 1/1 to From 4/1 to From 1/1 to Note 6/30/2014 6/30/2014 6/30/2013 6/30/2013 Net sales 19 1,128,705 2,307,477 1,055,448 2,107,297Change in fair value of biological assets 13 115,356 557,129 54,145 116,028Cost of products sold 20 (929,369) (1,733,084) (789,908) (1,513,097)Gross profit 314,692 1,131,522 319,685 710,228 Operating income (expenses) Selling 20 (83,152) (173,494) (77,820) (156,560)General and administrative 20 (71,517) (142,838) (65,779) (128,535)Other, net 20 16,435 24,411 3,816 11,875 (138,234) (291,921) (139,783) (273,220) Equity in the earnings of investees 11 19,786 91,576 24,412 35,202 Profit before finance result and taxes 196,244 931,177 204,314 472,210 Finance result 21 139,469 305,223 (417,818) (401,627) Profit (loss) before taxes on income 335,713 1,236,400 (213,504) 70,583 Income tax and social contribution . Current 10 (68,107) 83,101 (36,345) (81,402). Deferred 10 (24,088) (468,809) 120,024 82,548 (92,195) (385,708) 83,679 1,146 Profit (loss) for the period 243,518 850,692 (129,825) 71,729

Basic and diluted earnings per common share - R$ 23 0.0463 0.1581 (0.0275) 0.0760

Basic and diluted earnings per preferred share - R$ 23 0.0463 0.1581 (0.0302) 0.0835



KLABIN S.A.


Page 35 of 95

STATEMENT OF OPERATIONS FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(All amounts in thousands of reais, except for basic/diluted earnings per share)

Consolidated

Note From 4/1 to From 1/1 to From 4/1 to From 1/1 to

6/30/2014 6/30/2014 6/30/2013 6/30/2013 Net sales 19 1,151,093 2,354,564 1,093,793 2,160,197Change in fair value of biological assets 13 129,604 651,676 70,267 131,876Cost of products sold 20 (941,718) (1,744,570) (807,242) (1,526,941)Gross profit 338,979 1,261,670 356,818 765,132 Operating income (expenses) Selling 20 (87,474) (185,655) (86,645) (173,124)General and administrative 20 (72,882) (145,812) (67,039) (131,234)Other, net 20 17,459 26,416 4,574 11,938 (142,897) (305,051) (149,110) (292,420) Equity in the earnings of investees 11 5,807 11,349 1,365 2,188 Profit before finance result and taxes 201,889 967,968 209,073 474,900 Finance result 21 137,519 303,286 (418,196) (401,242) Profit (loss) before taxes on income 339,408 1,271,254 (209,123) 73,658 Income tax and social contribution . Current 10 (71,208) 75,885 (38,389) (85,459). Deferred 10 (24,682) (496,447) 117,687 83,530 (95,890) (420,562) 79,298 (1,929) Profit (loss) for the period 243,518 850,692 (129,825) 71,729

Basic and diluted earnings per common share - R$ 23 0.0463 0.1581 (0.0275) 0.0760

Basic and diluted earnings per preferred share - R$ 23 0.0463 0.1581 (0.0302) 0.0835



KLABIN S.A.


Page 36 of 95

STATEMENT OF COMPREHENSIVE INCOME (LOSS) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(All amounts in thousands of reais)

Parent and consolidated

From 4/1 to From 1/1 to From 4/1 to From 1/1 to

6/30/2014 6/30/2014 6/30/2013 6/30/2013

Profit (loss) for the period 243,518 850,692 (129,825) 71,729

Other comprehensive income (loss):

. Foreign currency translation adjustments (1,795) (12,538) 2,069 (341)

. Actuarial liability restatement - - - (7,841)

Total comprehensive income (loss) for the period, net of taxes 241,723 838,154 (127,756) 63,547 The accompanying notes are an integral part of this quarterly information.


KLABIN S.A.

Notes to the quarterly information at June 30, 2013 All amounts in thousands of reais unless otherwise stated

Page 37 of 95

STATEMENT OF CHANGES IN EQUITY FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2014 AND 2013

(All amounts in thousands of reais)

Parent and consolidatedRevaluation

reserve Revenue reserves

Share capital

Capital reserves Own assets Legal

Tax incentives

Biological assets

Proposed dividends

Investment and working

capital

Carrying value

adjustment Treasury

shares Retained earnings Total

At December 31, 2013 2,271,500 4,419 49,269 61,886 5,583 1,496,061 90,006 506,413 1,065,437 (157,907) - 5,392,667

Profit for the period 850,692 850,692Other comprehensive income (loss) for the period (12,538) (12,538)Comprehensive income (loss) for the period - - - - - - - - (12,538) - 850,692 838,154Realization of revaluation reserve (355) 355 -Complementary dividends for 2013 - approved at the General Meeting of Stockholders (90,006) (71) (90,077)Purchase of treasury shares (2,353) (2,353)Issue of debentures convertible into shares 1,288,543 1,288,543Stock option plan: -. Treasury shares sold 2,957 2,434 5,391. Award of treasury shares (2,434) 2,434 -. Recognition of the stock option plan remuneration 2,431 2,431At June 30, 2014 2,271,500 1,295,919 48,914 61,886 5,583 1,496,061 - 506,342 1,052,896 (155,392) 851,047 7,434,756

Parent and consolidatedRevaluation

reserve Revenue reserves

Share capital

Capital reserves Own assets Legal

Tax incentives

Biological assets

Proposed dividends

Investment and working

capital

Carrying value

adjustment Treasury

shares Retained earnings Total

At December 31, 2012 2,271,500 1,423 49,980 47,381 - 1,578,337 76,002 468,495 1,081,379 (153,576) - 5,420,921

Profit for the period 71,729 71,729Other comprehensive income (loss) for the period (8,182) (8,182)Comprehensive income (loss) for the period - - - - - - - - (8,182) - 71,729 63,547Realization of revaluation reserve (355) 355 -Complementary dividends for 2012 - approved at the General Meeting of Stockholders (76,002) (67) (76,069)Purchase of treasury shares (2,999) (2,999)Stock option plan: . Treasury shares sold 2,994 1,900 4,894. Award of treasury shares (2,590) 2,590 -. Recognition of the stock option plan remuneration 1,463 1,463At June 30, 2013 2,271,500 4,417 49,625 47,381 - 1,578,337 - 468,428 1,072,070 (152,085) 72,084 5,411,757



KLABIN S.A.


Page 38 of 95

STATEMENT OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED

JUNE 30, 2014 AND 2013 (All amounts in thousands of reais)

Parent company Consolidated From 1/1 to From 1/1 to From 1/1 to From 1/1 to 6/30/2014 6/30/2013 6/30/2014 6/30/2013 Net cash provided by operating activities 465,750 469,282 582,659 578,611 Cash from operations 814,701 467,451 834,000 503,800 Profit for the period 850,692 71,729 850,692 71,729 Depreciation and amortization 122,905 114,407 123,458 115,098 Change in fair value of biological assets (557,129) (116,028) (651,676) (131,876) Depletion of biological assets 296,203 200,031 310,925 221,226 Deferred income tax and social contribution 468,809 (82,548) 496,447 (83,530) Interest and exchange variations on borrowings (110,403) 491,362 (110,128) 491,230 Interest, monetary variation and debenture results (45,247) - (45,247) - Amortization of adjustment to present value of debentures 25,798 - 25,798 - Payment of interest on borrowings (171,400) (150,737) (171,400) (150,737) Accrued interest - REFIS 21,249 16,900 21,249 16,900 Result on sale of assets and subsidiaries (3,580) 2,558 (3,580) 2,558 Equity in the results of investees (91,576) (35,202) (11,349) (2,188) Income tax and social contribution paid (7,453) (36,017) (9,043) (37,283) Other 15,833 (9,004) 7,854 (9,327) Changes in assets and liabilities (348,951) 1,831 (251,341) 74,811 Trade receivables and related parties 39,934 (69,224) 118,365 (32,427) Inventory (29,188) (11,417) (34,607) (16,628) Taxes recoverable (111,326) 89,424 (111,465) 91,281 Marketable securities (221,826) 1,311 (221,826) 1,311 Prepaid expenses 3,185 1,813 3,265 1,803 Other assets 19,413 (1,410) 29,587 31,916 Trade payables (37,178) 54,840 (35,324) 57,882 Tax obligations 16,464 (30,659) 18,155 (30,922) Social security and labor charges 4,629 (14,007) 4,114 (13,553) Other liabilities (33,058) (18,840) (21,605) (15,852) Net cash used in investing activities (1,116,395) (216,429) (1,146,484) (322,043) Purchase of property, plant and equipment (i) (1,107,695) (279,842) (1,112,106) (309,703) Planting cost of biological assets (i) (26,060) (26,160) (45,739) (36,390) Proceeds from sale of assets and subsidiaries 6,261 13,850 6,261 13,850 Acquisition of investments and payment of capital and subsidiaries - (9,022) - - Dividends received from subsidiaries 11,099 84,745 5,100 10,200 Net cash provided by (used in) financing activities 2,885,320 (351,445) 2,884,994 (355,749) New borrowings 1,066,749 257,420 1,066,749 253,116 Debentures (net of costs of funding) 2,470,151 - 2,470,151 - Repayment of borrowings (564,541) (534,691) (564,541) (534,691) Purchase of treasury shares (2,353) (2,999) (2,353) (2,999) Disposal of treasury shares 5,391 4,894 5,391 4,894 Withdrawal of investors - SPCs - - (326) - Dividends paid (90,077) (76,069) (90,077) (76,069) Increase (decrease) in cash and cash equivalents 2,234,675 (98,592) 2,321,169 (99,181) Cash and cash equivalents at the beginning of the period 2,401,822 2,157,148 2,729,872 2,517,312 Cash and cash equivalents at the end of the period 4,636,497 2,058,556 5,051,041 2,418,131 (i) Net of recoverable taxes The accompanying notes are an integral part of this quarterly information.


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STATEMENT OF VALUE ADDED FOR THE SIX-MONTH PERIODS ENDED

JUNE 30, 2014 AND 2013 (All amounts in thousands of reais)

Parent company Consolidated From 1/1 to From 1/1 to From 1/1 to From 1/1 to

6/30/2014 6/30/2013 6/30/2014 6/30/2013 Income . Sales of products 2,900,234 2,672,640 2,959,471 2,734,794 . Change in fair value of biological assets 557,129 116,028 651,676 131,876 . Other revenue 6,261 13,850 6,261 13,850 . Provision for impairment of trade receivables (75) (2,085) (8) (2,209) 3,463,549 2,800,433 3,617,400 2,878,311 Inputs acquired from third parties . Cost of sales (514,368) (487,425) (515,925) (477,633) . Materials, electricity, outsourced services and others (992,746) (922,563) (1,002,704) (944,177) (1,507,114) (1,409,988) (1,518,629) (1,421,810) Gross value added 1,956,435 1,390,445 2,098,771 1,456,501 Retentions . Depreciation, amortization and depletion (419,108) (314,438) (434,383) (336,324) Net value added generated by the Company 1,537,327 1,076,007 1,664,388 1,120,177 Value added received through transfer . Equity in the earnings of investees 91,576 35,202 11,349 2,188 . Finance income, including exchange variations 547,676 127,015 209,897 131,330

639,252 162,217 221,246 133,518 Total value added to distribute 2,176,579 1,238,224 1,885,634 1,253,695

Distribution of value added: Personnel . Direct compensation 301,794 249,244 308,846 256,749 . Benefits 72,060 56,120 72,379 56,393 . Government Severance Indemnity Fund for Employees (FGTS) 22,217 18,928 22,303 18,974

396,071 324,292 403,528 332,116 Taxes and contributions . Federal 611,000 223,625 648,440 227,342 . State 73,163 87,028 73,163 87,028 . Municipal 3,200 2,908 3,200 2,908 687,363 313,561 724,803 317,278 Third-party capital remuneration: . Interest 242,453 528,642 (93,389) 532,572

242,453 528,642 (93,389) 532,572 Remuneration of own capital . Profits reinvested for the period 850,692 71,729 850,692 71,729 850,692 71,729 850,692 71,729 2,176,579 1,238,224 1,885,634 1,253,695



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Notes to the quarterly information (ITR) presented in thousands of reais, unless otherwise indicated

1 GENERAL INFORMATION Klabin S.A. (the "Company") and its subsidiaries operate in various segments of the paper and pulp industry to serve domestic and foreign markets, supplying wood, packaging paper, paper sacks, and corrugated cardboard boxes. Their operations are fully integrated, from forestry to the production of final products. Klabin S.A. is a publicly held corporation whose shares and certificate of deposit of shares (Units) are traded on the São Paulo Commodities, Futures and Stock Exchange (BM&FBOVESPA). The Company is domiciled in Brazil and headquartered in São Paulo. The Company also has investments in Special Partnership Companies (SPCs) for the specific purpose of raising funds from third parties for reforestation projects. The Company, as an ostensible partner, has contributed forest assets, mainly forests and land, by granting the right to use, whereas the other investing stockholders have contributed cash to the SPCs. The SPCs give Klabin S.A. a preemptive right to acquire forestry products at market prices and under market conditions. The Company also has ownership interests in other companies (Notes 3 and 11) whose operational activities relate to the Company's business objectives. The issue of this interim accounting information of the Company and its subsidiaries was authorized by the Finance Director on July 30, 2014. 1.1 Approval of pulp project ("Puma Project") The Board of Directors, on October 21, 2013, decided to proceed with the Company's capitalization process to facilitate the construction of a new pulp plant in the City of Ortigueira (PR), with a capacity of 1.5 million metric tons per annum. Management approval and a Significant Event Notice were published on June 11, 2013. The estimated cost of the project is R$ 5.8 billion. In addition, R$ 0.8 billion will be paid in recoverable taxes on machinery and equipment and R$ 0.6 billion on infrastructure construction, also recoverable through Value-added Tax on Sales and Services (ICMS) credits, according to the agreement with the Government of the State of Paraná. The funds for the project will be obtained through the issue of shares or bonds convertible into shares, or both, after approval has been obtained from the relevant agencies. The remainder of the funds will be obtained through a borrowing line with the National Bank for Economic and Social Development (BNDES) as well as with multinational import agencies. The approved proposal for the project contemplates the Company being listed in the Level 2 segment of BM&FBOVESPA as well as the granting of a tag-along of 100% to non-controlling common stockholders and holders of preferred shares (PN).


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1.2 Creation of SPC Monte Alegre On September 18, 2013, the Company established a new SPC denominated Monte Alegre, with the specific purpose of raising funds from third parties for reforestation projects. The Company, as an ostensible partner, contributed R$ 122 million in forest assets and the right to use land for the constitution of this new SPC and the other investing stockholders contributed R$ 50 million in cash. The SPC ensures Klabin S.A. a preemptive right to acquire forestry products at market prices and under market conditions. 1.3 Merger of subsidiaries Centaurus Holdings S.A. and Klabin Celulose S.A. At the Extraordinary General Meeting held on December 27, 2013, the stockholders approved the merger at carrying amount of the subsidiaries Centaurus Holdings S.A. ("Centaurus") and Klabin Celulose S.A. ("Klabin Celulose"), with no increase in the subscribed capital. The respective subsidiaries were wholly-owned by the Company. The equity of Centaurus on the date of the merger corresponded to R$ 151 million, comprising mainly forestry assets (land and forests) held by the subsidiary. The equity of Klabin Celulose corresponded to R$ 215 thousand. Both merged into the Company's parent company balance sheet. This corporate restructuring was aimed at aligning the Company's structure with its strategy. 1.4 Corporate restructuring On January 7, 2014, the Company announced to the market, in a Significant Event Notice, that the resolutions approved by the Stockholders' Extraordinary General Meeting held on November 28, 2013 had entered into effect. These were: Listing on Level 2 of BM&FBOVESPA The Company adhered to the special listing segment Level 2 of BM&FBOVESPA, and the trading of the Company's shares as book-entry shares began on January 9, 2014. Issue of new shares After the corporate restructuring of the controlling stockholders Klabin Irmãos & Cia ("KIC") and Niblak Participações ("Niblak"), 28,274,611 new common shares in the Company (ON)were issued and granted to the controlling stockholders. After this issue of new shares, the Company's fully subscribed and paid-up capital corresponds to 945,957,907 shares, with 345,102,174 nominative ON and 600,855,733 nominative PN. These shareholding changes occurred before the stock splits on March 20, 2014.


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Changes in the bylaws Reviews and adjustments of the bylaws were approved due to the items mentioned above, which, besides the change in authorized capital, involved changing to 1,120,000,000 shares, eliminating the additional dividend of 10% to stockholders holding preferred shares and granting them the right to vote, as approved by the Special Meeting of Stockholders holding preferred shares held on November 29, 2013. Certificate of deposit of shares ("Units") The Company implemented a program to issue Units, which comprise one ON and four PN. The negotiations concerning the Units began on January 10, 2014. During the first quarter of 2014, three conversion windows were open, which resulted in the conversion of 598 million units. From April 24 to 29, the Company opened a new conversion window that allowed the formation of 14 million units more, totaling 612 million units in the whole program. At June 30, 2014, the Company's ownership interest (in million shares) is as follows:

Within units Outside units Total

ON 612 1,157 1,769

PN 2,446 515 2,961

3,058 1,672 4,730

1.5 Stock split At the Extraordinary General Meeting held on March 20, 2014, the stockholders approved a five-for-one stock split of shares of the same class and type. Therefore, on March 20, 2014 the Company's capital was represented by 4,729,789,535 shares, with 1,684,897,850 nominative ON and 3,044,891,685 nominative PN. The Company's bylaws were changed in order to reflect the changes in the amount of shares, and the capital limit was changed to 5,600,000,000 shares. 2 BASIS OF PRESENTATION OF THE QUARTERLY INFORMATION AND

SIGNIFICANT ACCOUNTING PRACTICES 2.1 Basis of presentation of the quarterly information The Company presents its quarterly information in accordance with the accounting standard CPC 21 - Interim Financial Reporting issued by the Brazilian Accounting Pronouncements Committee (CPC), and the consolidated quarterly information in accordance with CPC 21 and IAS 34 - Interim Financial Reporting issued by the International Accounting Standard Board (IASB) and the standards issued by the Brazilian Securities Commission (CVM).


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The parent company quarterly information has been prepared in accordance with accounting practices adopted in Brazil, which differ from the International Financial Reporting Standards (IFRS) only in that they measure investments in subsidiaries and jointly-controlled subsidiaries using the equity accounting method, instead of cost or fair value. 2.2 Summary of significant accounting practices adopted The main accounting practices adopted by the Company and its subsidiaries are defined below and were consistently applied during the periods presented. a) Functional currency and translation of foreign currencies The quarterly information is presented in Brazilian reais (R$), which is the functional and presentation currency of the Company and its subsidiaries, except for the subsidiary Klabin Argentina (Note 3), which has the Argentine peso (A$) as its functional currency. (i) Transactions and balances Foreign-currency transactions are originally recorded at the exchange rate effective on the transaction date. Foreign exchange gains and losses resulting from the difference between the translation of assets and liabilities in foreign currency at the end of the reporting period are recognized in the Company's statement of operations. (ii) Foreign subsidiaries Foreign subsidiaries with the characteristics of a branch have the same functional currency as the Company. The exchange differences arising in the Argentine subsidiary, resulting from the translation of its quarterly information, are recorded separately in an equity account named "Carrying value adjustments (comprehensive income (loss))". Upon the sale of a foreign subsidiary, the accumulated deferred amount recognized in equity relating to this foreign subsidiary is recognized in the statement of operations. The assets and liabilities of the foreign subsidiary are translated using the exchange rate prevailing at the end of the reporting period. Income and expenses are translated at the exchange rates prevailing at the dates of the transactions. b) Cash and cash equivalents Cash and cash equivalents include cash on hand, bank deposits and highly-liquid short-term investments that are readily convertible into a known amount of cash and are subject to immaterial risk of change in value. c) Financial instruments Financial instruments are initially recognized at fair value plus (in the case of financial assets or financial liabilities not carried at fair value through profit or loss) transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability. They are subsequently measured at the end of each reporting period based on the classification of financial instruments in the following categories: 1) financial assets: (i) measured at fair value through profit


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or loss, (ii) loans and receivables, and (iii) available for sale; 2) financial liabilities: (i) measured at fair value through profit or loss, and (ii) other financial liabilities. (i) Marketable securities Securities are considered as available-for-sale and are recognized in finance income (costs), according to their fair value. (ii) Borrowings The balance of borrowings refers to the amount of funds raised, plus interest and charges proportional to the period incurred, less installments paid, and includes the exchange variation on the liability, if applicable. (iii) Debentures The balance of debentures mandatorily convertible into shares, defined as hybrid financial instruments due to their nature, with are segregated when issued into components of debt and equity, representing in liabilities the interest amounts that will be paid to the debenture holders up to the conversion date, measured at present value, plus monetary variation recognized in liabilities, when applicable, and with the interest in results that may be attributed to it. Debentures that are not mandatorily convertible are represented in liabilities at the value corresponding to the amount of the funds raised, plus interest and charges proportional to the period incurred, net of the installments amortized and interest paid. d) Trade receivables Trade receivables are stated at the original amounts of the invoices for sales of products, plus exchange variations when applicable. The provision for impairment of trade receivables is recorded based on an individual analysis of receivables and at an amount considered sufficient by Management to cover probable losses on their realization, which can be modified as a result of the recovery of receivables from default customers or a change in a customer's financial situation. The adjustment to present value of trade receivables is not material due to the short period of their realization. e) Inventory Inventory is stated at average purchase cost, net of taxes to be offset, when applicable, and at the fair value of biological assets at the cut-off date, which are both lower than net realizable value. Inventory of finished products is valued based on the cost of processed raw materials, direct labor and other production costs. When necessary, the inventory balance is reduced by the amount of provision for losses, which is set up in cases of inventory devaluation, obsolescence of products and physical inventory losses. In addition, because of the nature of the Company's products, obsolete finished products may be recycled for reuse in production.


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f) Income tax and social contribution The Company calculates current and deferred corporate income tax (IRPJ) at 15%, plus a 10% surcharge on taxable profit exceeding R$ 240, and social contribution on net income (CSLL)at 9% of taxable profit. The balances are recognized in the Company's results on an accrual basis. The amounts of deferred income tax and social contribution are recorded at the net amounts in the balance sheet, in non-current assets or liabilities. Subsidiaries have their taxes calculated and accrued in accordance with the legislation of their country and/or their specific tax system, including, in some cases, presumed profit. The provision for current income tax and social contribution for the period is stated in the balance sheet net of tax prepayments made during the period. g) Investments These are investments in subsidiaries and jointly-controlled subsidiaries accounted for using the equity accounting method, based on the Company's ownership interest in these companies. The quarterly information of subsidiaries and jointly-controlled subsidiaries is prepared for the same reporting period as that adopted by the Company. When necessary, adjustments are made to bring their accounting policies into line with those adopted by the Company. Unrealized gains and losses resulting from transactions between the Company and its subsidiaries and jointly-controlled subsidiaries are eliminated for equity accounting purposes in the parent company balance sheet, as well as for consolidation purposes. At the end of each reporting period, the Company determines if there is objective evidence that the investment in the subsidiaries or jointly-controlled subsidiaries is impaired. If there is an indication of impairment, the Company calculates the amount of the impairment loss and recognizes it in the statement of operations. The exchange variation on investments in foreign subsidiaries recognized in "Comprehensive income (loss)" is classified as a carrying value adjustment and realized through the realization of the investment to which it refers. In the consolidated quarterly information, the Group's interest in SPCs (Notes 3 and 11) is presented in the balance sheet in liabilities, under "Other payables - investors in SPCs", as it refers to financial liabilities and not to equity instruments, in accordance with CPC 39 - Financial instruments: Presentation. The Company's management treats SPCs as independent entities with the characteristics of subsidiaries, which are recorded in the parent company ITR using the equity accounting method. h) Property, plant and equipment Property, plant and equipment is stated at acquisition or construction cost, less taxes to be offset, when applicable, and accumulated depreciation. Based on the option exercised by the Company on first-time adoption of IFRS, the deemed cost of property, plant and equipment (land) was determined.


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Depreciation is calculated on a straight-line basis taking into consideration the estimated useful lives of the assets based on expected future economic benefits, except for land, which is not depreciated. The estimated useful lives of assets are reviewed annually and adjusted, if necessary, and may vary based on the technological stage of each unit. The useful lives of the Company's assets are stated in Note 12. The costs of maintaining the Company's assets are allocated directly to profit for the period when realized. Finance charges are capitalized to property, plant and equipment, when incurred on construction in progress, if applicable. i) Impairment of assets Property, plant and equipment and other assets are tested for impairment on an annual basis or whenever significant events or changes in circumstances indicate that their carrying amounts may not be recoverable. When this is the case, the recoverable amount is calculated to determine if the assets are impaired. The recoverable amount of an asset is the higher of the net sales price and the value in use of the asset or its Cash-Generating Unit (CGU), and is determined individually for each asset, unless the asset does not generate cash inflows that are independent from those of other assets or groups of assets. In estimating the value in use, estimated future cash flows are discounted to their present value, using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount, which is the higher of the net sales price and the value in use of that asset. j) Biological assets Biological assets are eucalyptus and pine forests, which are used for the production of packaging paper, paper sacks and corrugated cardboard boxes as well as sold to third parties. Harvesting and replanting have an approximate cycle of seven - 14 years, which varies based on the crop and genetic material. Biological assets are measured at fair value, less estimated selling costs, at the time of harvest. Significant assumptions for determining the fair value of biological assets are stated in Note 13. The valuation of biological assets is carried out on a quarterly basis by the Company, and any gain or loss is recognized in the statement of operations in the period in which it occurs, in a specific line named "Change in fair value of biological assets". The depletion of biological assets is measured based on the amount of wood cut, evaluated at fair value. k) Non-current assets and liabilities Non-current assets and liabilities comprise receivables and payables maturing 12 months after the end of the reporting period, plus corresponding charges and monetary variations incurred, if applicable, through the end of the reporting period.


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l) Provision Provision is recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. The expense relating to any provision is presented in the statement of operations, net of any reimbursement. If the time effect of the amount is material, the provision is discounted using a discount rate that reflects the risks specific to the obligation, if applicable. The Company records provision for tax, social security, labor and civil claims, which is accrued when lawsuits are assessed by the Company's legal counsel and Management as likely to lead to losses. This assessment is carried out considering the nature of the lawsuits, similarities with prior lawsuits and the progress of pending litigation. When the Company expects that the amount of provision will be fully or partially reimbursed, this asset is recognized only when realization is considered clear and certain, with no recognition of assets in scenarios of uncertainty. m) Sales revenue Sales revenue is stated net of taxes, discounts and rebates, and is recognized when all the risks and rewards of ownership of the product are transferred to the buyer, to the extent that it is probable that economic benefits will be generated and will flow to the Company and its subsidiaries and jointly-controlled subsidiaries, and when it can be reliably measured based on the fair value of the consideration received or receivable, net of discounts, rebates and taxes or charges on sales. n) Employee benefits and pension plan The Company grants employee benefits such as life insurance, health care, profit sharing and other benefits, which are recognized on an accrual basis and are discontinued at the end of the employment relationship with the Company. Additionally, the Company has granted a private pension and health care plan to former employees who had retired by 2001. In relation to these benefits, the Company adopts practices for the recognition of the liability and the result based on an actuarial valuation by an independent expert. Gains and losses on the actuarial valuation of benefits generated by changes in actuarial assumptions and commitments on the actuarial liability are recognized in an account in equity named "Carrying value adjustments (comprehensive income)", as required by CPC 33 (R1) - Employee benefits. o) Stock option plan The stock option plan offered by the Company is measured at the fair value on the date of the grant and the related expense is recognized in the statement of operations during the period in which the granting right is acquired, against equity in the "Carrying value adjustments" group. p) Significant accounting judgments, estimates and assumptions In the preparation of the quarterly information, accounting judgments, estimates and assumptions have been used to account for certain assets, liabilities and transactions and to recognize income and expenses for the periods. The accounting judgments, estimates and assumptions adopted by


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management are made using the best information available at the quarterly information reporting date, and involve experience of past events, forecasts of future events and the assistance of experts, when applicable. The quarterly information includes various estimates, including, but not limited to, the realization of deferred tax assets, the fair value of biological assets, and need for provision for tax, social security, civil and labor claims and adjustment at the present value of the balances. Actual results may differ from these estimates, and the Company could be exposed to material losses. q) Statement of value added Brazilian corporate legislation requires listed companies to present a statement of value added as part of the quarterly information presented by a company. This statement is intended to evidence the wealth created by a company and its distribution during the periods presented. IFRS do not require the presentation of this statement. Consequently, this statement is presented as supplementary information, and is not part of the required set of quarterly information. 2.4 New technical pronouncements, revisions and interpretations not effective yet Up to the disclosure of this quarterly information, new technical pronouncements, changes and interpretations that are not yet in effect and were not adopted in advance by the Company, were approved and issued by IASB. The revision of the pronouncements is as follows: (i) IAS 41 – Agriculture (equivalent to CPC 29 – Biological Assets and Agricultural Produce) This standard currently requires that biological assets relating to agricultural activities be measured at fair value less costs to sell. When reviewing the standard, IASB decided that "bearer plants" should be recorded as property, plant and equipment (IAS16/CPC 27), that is, at cost less depreciation or impairment. "Bearer plants" are defined as those used to produce fruit for many years, but which, once mature, do not undergo significant biological transformations. Their only future economic benefit arises from the agricultural production that they generate. Examples of bearer plants include apple and orange trees and grapevines. In the case of plants that have their roots kept in the soil for a second harvest or cut and the roots of which are not sold, the roots meet the definition of a bearer plant, which is, therefore, applied to forests that are expected to undergo more than one cut during their management. The forests of the Company are harvested and replanted and, therefore, there is no second cut. Therefore, Management has concluded that the adoption of this reviewed standard does not have an impact on current accounting practice or the calculation of the fair value of its forests. The standard is applicable from January 1, 2016. (ii) IFRS 15 – Revenue from contracts with customers This new standard establishes the principles that an entity must apply to determine the measurement of revenue and when it is recognized. It becomes effective in 2017 and replaces IAS 11


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- Construction contracts, IAS 18 - Revenues and corresponding interpretations. Management is evaluating the impact of its adoption. (iii) IFRS 9 – Financial instruments

This new standard addresses the classification, measurement and recognition of financial assets and financial liabilities. The objective of IFRS 9 is, ultimately, to replace IAS 39 - Financial Instruments: Recognition and Measurement. This standard becomes effective as from 2018, but has been revised since its issue. Management has not yet concluded the evaluation of the impact of its adoption. It should be pointed out that such revisions and new standards have not been issued by CPC of the equivalent new or revised standards in the accounting practices adopted in Brazil, and they have not been approved by the competent regulatory agencies. In general, the accounting practices adopted in Brazil do not incorporate anticipated new or revised standards and interpretations, although this is encouraged by IASB, and are not permitted or are not available in the accounting practices adopted in Brazil. Therefore, these new and/or revised standards are not included in the Company's financial statements. 3 CONSOLIDATED QUARTERLY INFORMATION Subsidiaries are fully consolidated as from the date of acquisition of control and continue to be consolidated until the date on which such control ceases to exist, except for jointly-controlled subsidiaries (joint ventures), which are accounted for using the equity accounting method both in the parent company and in the consolidated quarterly information. The quarterly information of subsidiaries is prepared for the same reporting period as that of the parent company, using accounting policies consistent with the policies adopted by the parent company. The following criteria are adopted for consolidation purposes: (i) investments in subsidiaries and equity in the results of investees are eliminated and (ii) profits from intercompany transactions and the related assets and liabilities are also eliminated. The consolidated quarterly information comprises Klabin S.A. and its subsidiaries at June 30, 2014 and 2013 and December 31, 2013, as follows:

Ownership - % Country Activity Interest 6/30/2014 12/31/2013 6/30/2013 Subsidiary Klabin Argentina S.A. Argentina Industrial sacks Direct/indirect 100 100 100

Klabin Ltd. Cayman Islands Investments in other

companies Direct 100 100 100

Klabin Trade England Sale of products on foreign markets

Indirect 100 100 100

Klabin Forest Products Company United States Sale of products on foreign

markets Direct 100 100 100

IKAPÊ Empreendimentos Ltda. Brazil Hotel operation Direct 100 100 100

Klabin do Paraná Produtos Florestais Ltda. Brazil Manufacture of phytotherapic

products Direct 100 100 100

Klabin Florestal Ltda. Brazil Forestry Direct 100 100 100

Centaurus Holdings S.A. (i) (i) Brazil Investment in other

companies Direct - - 100

Klabin Finance S.A. Luxembourg Finance Direct 100 100 100 Klabin Celulose S.A. (i) Brazil Pulp Direct - - 100 SPCs Correia Pinto Brazil Reforestation Direct 90 91 90 CG Forest Brazil Reforestation Direct 70 67 64

Monte Alegre (ii) Brazil Reforestation Direct 68 65

- Joint ventures (not consolidated) Florestal Vale do Corisco S.A. (i) Brazil Reforestation Direct 51 51 51

(i) Merged subsidiaries, as detailed in Note 1. (ii) New subsidiary constituted, as disclosed in Note 1.


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Investment in joint ventures The investment in Florestal Vale do Corisco S.A., considering its characteristics, is classified as a joint venture and has not been consolidated using the proportional consolidation method. The investment is recorded using the equity accounting method as from the date when joint control was acquired. 4 CASH AND CASH EQUIVALENTS In accordance with its policy, the Company has made low-risk investments with no significant risk of change in value with financial institutions considered by management as prime banks both in Brazil and abroad, based on their ratings from risk rating agencies. Management considers these financial assets as cash and cash equivalents due to their immediate liquidity and the fact that they bear insignificant risk of change in value.

Parent company Consolidated

6/30/2014 12/31/2013 6/30/2014 12/31/2013

Cash and bank deposits 111,221 27,453 378,724 130,895 Financial investments in local currency 4,525,276 2,374,369 4,664,929 2,521,195 Financial investments in foreign currency - - 7,388 77,782

4,636,497 2,401,822 5,051,041 2,729,872

Financial investments in local currency relating to Bank Deposit Certificates (CDBs), and other repurchase transactions, are indexed to the variation of the Interbank Deposit Certificate (CDI) with an average annual yield of 11.00% (9.92% at December 31, 2013), and financial investments in foreign currency, relating to time deposits in U.S. dollars, with an average annual yield of 0.21% (0.21% at December 31, 2013). The investments have daily liquidity guaranteed by the financial institutions. 5 MARKETABLE SECURITIES Marketable securities are comprised of National Treasury Bills (LFTs), with yields indexed to the variation of the Special System for Settlement and Custody (SELIC) interest rate. At June 30, 2014, the balance of these securities was R$ 471,337 (R$ 249,511 at December 31, 2013). Management classified these securities as available-for-sale financial assets. The original maturities are up to 2015. However, there is an active trading market for securities with these characteristics, and their fair value basically represents the principal plus interest as originally established. Marketable securities are included in Level 1 of the fair value measurement hierarchy, according to the hierarchy of CPC 46 (equivalent to IFRS 13) - Fair value measurement, since they are assets with prices quoted in the market.


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6 TRADE RECEIVABLES


6/30/2014 12/31/2013 6/30/2014 12/31/2013

Trade receivables

. Local 803,879 847,056 803,951 847,103

. Foreign 112,377 133,983 270,136 345,349

Total trade receivables 916,256 981,039 1,074,087 1,192,452 Provision for impairment of trade receivables (47,229) (47,153) (47,307) (47,298)

869,027 933,886 1,026,780 1,145,154

Past due 186,361 101,246 206,842 116,419

% of total portfolio 20.34% 10.32% 19.26% 9.76%

1 to 10 days 1,984 8,213 6,793 8,213

11 to 30 days 67,803 23,982 80,324 34,610

31 to 60 days 51,110 13,613 53,243 17,509

61 to 90 days 10,692 3,364 11,710 3,364

Over 90 days 54,772 52,074 54,772 52,723

Not yet due 729,895 879,793 867,245 1,076,033

Total portfolio 916,256 981,039 1,074,087 1,192,452

The average collection period of trade receivables is approximately 90 days for domestic market sales and approximately 120 days for foreign market sales, and interest is charged after the contractual maturity date. As mentioned in Note 25, the Company has rules for monitoring receivables and past-due notes as well as for the risk of not receiving the amounts arising from term sale transactions. The provision for the impairment of trade receivables is considered sufficient to cover any losses on the outstanding receivables. The changes in provision for the impairment of trade receivables occurring during the period were as follows:


At December 31, 2012 (45,187) (45,663)

Provision for the year (7,442) (7,566)

Reversal of receivables 5,476 5,931

At December 31, 2013 (47,153) (47,298)

Provision for the period (2,326) (2,326)

Reversal of receivables 2,250 2,317

At June 30, 2014 (47,229) (47,307) The balance of provision for the impairment of trade receivables relates mainly to trade notes overdue for more than 90 days. The expense on the recognition of provision for the impairment of trade receivables was recorded in the statement of operations, under "Selling expenses".


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7 RELATED PARTIES a) Balances and transactions with related parties

Parent company 6/30/2014 12/31/2013 6/30/2013

Soc. Conta de Monteiro Klabin Klabin Klabin Participação Aranha Irmãos Trade Argentina Correia Pinto S.A. & Cia. (BNDES) Other Total Total Total

(i) and (vi) (i) (ii) and (v) (iii) (iii),(iv) and (viii) (vi) (vii) and (viii) Type of relationship Subsidiary Subsidiary Subsidiary Stockholder Stockholder Stockholder

Balances Current assets 384,572 7,720 6,194 4,842 403,328 378,934 Non-current assets 1,928 1,928 1,526 Current liabilities 29,634 5,361 488 2,381 487,204 420 525,488 476,212 Non-current liabilities 3,304 1,233,920 1,237,224 1,325,543

Transactions Sales revenue 337,584 178 14,528 352,290 441,999 Purchases (16,177) (16,177) (21,465) Interest expenses on financing 207 (53,220) (53,013) (54,121) Guarantee commission - expenses (5,251) (5,251) (7,832) Royalty expenses (2,949) (14,393) (2,314) (19,656) (17,996)

(i) Balance receivable from product sale transactions carried out under terms and conditions established between the parties. (ii) Purchase of timber at usual market prices and on normal terms and conditions. (iii) Licensing for use of brand. (iv) Prepaid expenses for guarantee commission, calculated based on the BNDES financing balance of 1% semiannually. (v) Supply of seedlings, seeds and services at usual market prices and on normal terms and conditions. (vi) Loans raised in usual market conditions. (vii) Advance for future capital payment. (viii) Other.


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Consolidated 6/30/2014 12/31/2013 6/30/2013

Monteiro Klabin Aranha Irmãos

S.A. & Cia. BNDES Other Total Total Total (i) (i), (ii), (iv) (iii) (iv)

Type of relationship Stockholder Stockholder Stockholder Balances Current assets 4,842 4,842 5,297 Current liabilities 488 2,381 487,204 383 490,456 425,560 Non-current liabilities 1,233,920 1,233,920 1,322,029 Transactions Interest expenses on financing (53,220) (53,220) (53,989) Guarantee commission - expense (5,251) (5,251) (7,832) Royalty expenses (2,949) (14,393) (2,314) (19,656) (17,996) (i) Licensing for use of brand. (ii) Prepaid expenses for guarantee commission, calculated based on the BNDES financing balance of 1% semiannually. (iii) Loans raised in usual market conditions. (iv) Other.

b) Management remuneration and benefits Management remuneration is determined by the stockholders at the Annual General Meeting, in accordance with Brazilian corporate legislation and the Company's bylaws. Accordingly, at the Annual General Meeting held on March 20, 2014, the stockholders established the overall amount of annual remuneration of the members of the Board of Directors and the Supervisory Board at up to R$ 35,800 for 2014. The compensation approved for 2013 amounted to R$ 34,200. The table below shows the remuneration of the members of the Board of Directors and the Supervisory Board:

Parent and consolidated

Short-term Long-term Total benefits 6/30/2014 6/30/2013 6/30/2014 6/30/2013 6/30/2014 6/30/2013

Board of Directors and Supervisory Board 10,664 13,694 388 349 11,052 14,043

Management remuneration includes the fees of the board members, along with the fees and variable remuneration of officers. Long-term benefits relate to contributions made by the Company to the pension plan. These amounts are mainly recorded under "Operating income (expenses) - administrative". In addition, the Company grants a stock option plan to statutory directors and other executives, as described in Note 22.


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8 INVENTORY

Parent company Consolidated 6/30/2014 12/31/2013 6/30/2014 12/31/2013

Finished goods 100,557 98,313 121,634 122,749 Raw materials 137,129 133,465 155,593 142,474 Timber and logs 111,567 106,072 111,567 106,072 Fuel and lubricants 5,790 4,110 5,790 4,110 Maintenance supplies 130,016 124,159 132,805 126,365 Provision for losses (18,205) (21,780) (18,205) (21,780) Other 19,970 13,297 21,275 15,862

486,824 457,636 530,459 495,852

Raw materials inventory included paper rolls transferred from paper units to conversion units. The expense on the recognition of the provision for inventory losses is recorded in the statement of operations under "Cost of goods sold". During the six-month periods ended June 30, 2014 and 2013, the net effect of provision for inventory losses was a reversal of provision of R$ 3,575 and an increase in provision of R$ 5,907, respectively. The Company does not have any inventory pledged as collateral. 9 TAXES RECOVERABLE 6/30/2014 12/31/2013

Current Non-

current Current Non-

current assets assets assets assets ICMS 48,941 52,516 58,184 44,367 Social Integration Program (PIS) 31 9,026 2,102 8,868 Social Contribution on Revenue (COFINS) 134 52,969 9,672 52,001 Corporate Income Tax / Social Contribution on Net Income 138,162 - 9,811 - Other 36,204 18,167 33,918 18,448 Parent company 223,472

132,678

113,687

123,684

Subsidiaries 8,092

-

6,363

- Consolidated 231,564

132,678

120,050

123,684

The Company recognized credits from taxes and contributions levied on purchases of property, plant and equipment, as permitted by prevailing legislation, which are being utilized for future offset against taxes payable, of the same nature or others. Based on analyses and the budget projection approved by Management, the Company does not foresee any risk of non-realization of these tax credits. PIS/COFINS and ICMS on current assets are expected to be offset against the same taxes payable in the next 12 months, according to Management's estimate. The balance of income tax/social contribution suffered from the change in the foreign exchange tax recognition system, mentioned in Note 10.


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10 INCOME TAX AND SOCIAL CONTRIBUTION a) Nature and expected realization of deferred taxes The balances of deferred tax assets and liabilities at June 30, 2014 and December 31, 2013 were as follows:


Provisions for tax, social security, labor and civil contingencies 25,645 28,526 25,645 28,526 Write-off of deferred charges (adoption of RTT) 10,623 12,096 10,623 12,096 Income tax and social contribution losses 19,447 - 19,447 100 Deferred exchange variations (*) - 354,658 - 354,658 Actuarial liability 19,492 19,492 19,492 19,492 Other temporary differences 43,740 47,827 43,814 47,826 Non-current assets 118,947 462,599 119,021 462,698

Fair value of biological assets 770,680 670,564 900,783 773,030 Revision of useful lives of property, plant and equipment (adoption of RTT) 255,056 229,008 255,056 229,008 Deemed cost of property, plant and equipment (land) 493,122 493,122 565,742 565,742 Adjustment to present value of balances 47,350 47,897 47,350 47,897 Asset revaluation reserve 25,199 25,382 25,199 25,382 Other temporary differences 41,238 41,827 41,237 41,826 Non-current liabilities 1,632,645 1,507,800 1,835,367 1,682,885

Net balance in the balance sheet (liabilities) 1,513,698 1,045,201 1,716,346 1,220,187

(*) Up to the end of 2013, management opted for the tax recognition of the foreign exchange variations of its receivables and payables on the cash basis, thereby generating temporary differences, but for 2014, it started to adopt the accrual basis to recognize foreign exchange variation, without constituting temporary differences.

In 2008, the Company adopted the RTT established by Law 11,941/09, for the tax treatment of income tax and social contribution on the effects arising from the adoption of CPCs. Management, based on the budgets approved by the Board of Directors, estimates that tax credits arising from temporary differences will be realized as follows:

6/30/2014 Parent company Consolidated

2015 49,715 49,715 2016 28,121 28,121 2017 40,720 40,720 2018 391 465 2019 onwards - -

118,947 119,021

The projected realization of the balance might not materialize if the estimates used in the preparation of the quarterly information differ from the actual amounts. Information on the Company's taxes under litigation is disclosed in Note 17.


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b) Analysis of income tax and social contribution Parent company From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013 Current tax expense (68,108) (167,802) (57,730) (99,363)Adoption of the foreign exchange variation accrual basis (*) - 243,045 - -Prior-year adjustment 1 7,858 21,385 17,961Current (68,107) 83,101 (36,345) (81,402)

Recognition and reversal of temporary differences (40,691) (93,400) 122,190 83,281Adoption of the foreign exchange variation accrual basis (*) - (262,416) - -Revision of useful lives of property, plant and equipment 292 (12,878) (12,477) (20,931)Variation in fair value and depletion of biological assets 16,311 (100,115) 10,311 20,198Deferred (24,088) (468,809) 120,024 82,548

Consolidated From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013 Current tax expense (71,209) (175,018) (59,774) (103,420)Adoption of the foreign exchange variation accrual basis (*) - 243,045 - -Prior-year adjustment 1 7,858 21,385 17,961Current (71,208) 75,885 (38,389) (85,459)

Recognition and reversal of temporary differences (40,690) (93,401) 121,657 82,994Adoption of the foreign exchange variation accrual basis (*) - (262,416) - -Revision of useful lives of property, plant and equipment 292 (12,878) (12,477) (20,931)Variation in fair value and depletion of biological assets 15,716 (127,752) 8,507 21,467Deferred (24,682) (496,447) 117,687 83,530

(*) Up to the end of 2013, Management opted to recognize the foreign exchange variations of its receivables and payables for tax on a cash basis, thereby generating temporary differences, but in 2014 it has started to use the accrual basis to recognize foreign exchange variation, avoiding temporary differences.

c) Reconciliation of income tax and social contribution with the result of applying the statutory tax rate to the result

Parent company From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013

Profit (loss) before income tax and social contribution 335,713 1,236,400 (213,504) 70,583

Income tax and social contribution at the rate of 34% (114,142) (420,376) 72,591 (23,998) Tax effects on permanent differences . Equity in the earnings of investees 6,727 31,136 8,300 11,969 . Other effects 15,220 3,532 2,788 13,175 (92,195) (385,708) 83,679 1,146 Income tax and social contribution . Current (68,107) 83,101 (36,345) (81,402) . Deferred (24,088) (468,809) 120,024 82,548 Income tax and social contribution expenses in the result (92,195) (385,708) 83,679 1,146


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Consolidated From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013

Profit (loss) before income tax and social contribution 339,408 1,271,254 (209,123) 73,658

Income tax and social contribution at the rate of 34% (115,399) (432,226) 71,102 (25,044) Tax effects on permanent differences . Difference in taxation - subsidiaries 5,626 4,063 2,552 5,357 . Equity in the earnings of investees 1,975 3,859 464 744 . Other effects 11,908 3,742 5,180 17,014 (95,890) (420,562) 79,298 (1,929) Income tax and social contribution . Current (71,208) 75,885 (38,389) (85,459) . Deferred (24,682) (496,447) 117,687 83,530 Income tax and social contribution expenses in the result (95,890) (420,562) 79,298 (1,929)

d) Analysis of the impact of Law 12,973/14 On May 13, 2014, Law 12,973 was published, regulating the conversion of Provisional Measure (MP) 627, revoking the Transitional Tax System (RTT), among other provisions. The MP is effective from 2015, but may be adopted early in 2014. The Company prepared a study of the possible effects that could arise from the early or normal adoption of this new law and concluded that its early adoption, or not, would have an immaterial impact on its information. Accordingly, the Company is evaluating whether to adopt the MP for 2014, or only in 2015.


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11 INVESTMENTS IN SUBSIDIARIES AND JOINTLY-CONTROLLED SUBSIDIARIES

Klabin Centaurus Forestry Soc. Conta de Soc. Conta de Soc. Conta de Klabin Argentina Holdings Vale do Corisco Participação Participação Participação Ltd. (i) S.A. S.A. S.A. Correia Pinto CG Forest Mt Alegre (iii) Other Total At December 31, 2012 76,912 43,269 205,686 450,651 429,510 52,736 - 8,491 1,267,255 Acquisitions and capital contributions 995 3,989 92,578 7,313 104,875 Dividends received (60,519) (17,850) (20,026) (98,395) Equity in the results of investees (ii) 29,091 10,445 13,317 22,238 18,568 (1,899) 1,590 (2,910) 90,440 Incorporation due to dissolution of subsidiaries (vi) (222,992) (218) (223,210) Exchange variation on investments abroad (6,871) (6,871) At December 31, 2013 46,479 46,843 - 455,039 428,052 50,837 94,168 12,676 1,134,094 Acquisitions and capital contributions 1,875 1,875 Dividends received (5,100) (5,999) (11,099) Equity in the results of investees (ii) 6,822 8,194 11,349 45,134 8,512 12,735 (1,170) 91,576 Exchange variation on investments abroad (12,538) (12,538) At June 30, 2014 53,301 42,499 - 461,288 467,187 59,349 106,903 13,381 1,203,908

Summary of financial information of subsidiaries at June 30, 2014: Total assets 53,301 61,426 - 1,207,724 677,504 98,968 196,784 Total liabilities - 18,448 - 303,237 156,291 14,621 39,882 Equity 53,301 42,978 - 904,487 521,213 84,347 156,902 Profit for the period 9,382 8,194 - 22,253 49,037 8,512 12,735 (i) Parent company of Klabin Trade. (ii) Includes the effects of variation in and realization of fair value of biological assets (Note 13). (iii) Corresponding to the creation of the new subsidiary denominated SPC Monte Alegre, mentioned in Notes 1 and 3. (iv) Refers to the merger of the subsidiaries Centaurus Holdings S.A and Klabin Celulose S.A., mentioned in Notes 1 and 3.


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12 PROPERTY, PLANT AND EQUIPMENT a) Composition

6/30/2014 12/31/2013

Accumulated depreciation

Parent company Cost Net Net

Land 1,784,897 - 1,784,897 1,785,738 Buildings and construction 646,972 (208,164) 438,808 445,688 Machinery, equipment and facilities 4,477,100 (1,904,882) 2,572,218 2,512,681 Construction in progress 2,547,477 - 2,547,477 780,192 Other (i) 366,895 (196,181) 170,714 146,691

9,823,341 (2,309,227) 7,514,114 5,670,990

Consolidated Land 2,014,612 - 2,014,612 2,014,311 Buildings and construction 652,218 (210,215) 442,003 450,102 Machinery, equipment and facilities 4,493,146 (1,915,394) 2,577,752 2,517,458 Construction in progress 2,548,227 - 2,548,227 780,357 Other (i) 368,523 (197,361) 171,162 147,279

10,076,726 (2,322,970) 7,753,756 5,909,507

(i) Refers to leasehold improvements, vehicles, furniture and fittings and IT equipment.

The information on property, plant and equipment pledged as collateral in transactions carried out by the Company is disclosed in Note 14, and information on the insurance coverage of assets is disclosed in Note 27. b) Summary of changes in property, plant and equipment

Parent company

Land

Buildings and

construction

Machinery, equipment and

facilities Construction

in progress Other Total

At December 31, 2012 1,639,159 420,754 2,307,403 623,105 13,286 5,003,707 Additions - - - 480,745 209,582 690,327 Reversals (14) (75) (3,122) - (6,644) (9,855) Depreciation - (22,539) (196,286) - (23,805) (242,630) Internal transfers - 47,548 405,169 (404,276) (48,441) - Merger of subsidiaries (i) 146,593 - - 84,402 2,027 233,022 Other - - (483) (3,784) 686 (3,581)

At December 31, 2013 1,785,738 445,688 2,512,681 780,192 146,691 5,670,990 Additions - - - 2,024,939 132 2,025,071 Reversals (841) (51) (759) - (185) (1,836) Depreciation - (11,733) (112,325) - (13,233) (137,291) Internal transfers - 4,909 173,001 (214,945) 37,035 - Other - (5) (380) (42,709) 274 (42,820)

At June 30, 2014 1,784,897 438,808 2,572,218 2,547,477 170,714 7,514,114


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Consolidated

Land

Buildings and

construction

Machinery, equipment and

facilities Construction

in progress Other Total

At December 31, 2012 2,002,793 425,976 2,313,454 623,350 13,853 5,379,426 Additions 3,967 - 352 565,177 211,865 781,361 Reversals (14) (75) (3,177) - (6,648) (9,914) Depreciation - (22,724) (197,326) - (23,969) (244,019) Internal transfers - 47,547 405,252 (404,358) (48,441) - Other 7,565 (622) (1,097) (3,812) 619 2,653

At December 31, 2013 2,014,311 450,102 2,517,458 780,357 147,279 5,909,507 Additions 1,302 35 1,330 2,026,577 238 2,029,482 Reversals (841) (277) (745) - (246) (2,109) Depreciation - (11,806) (112,724) - (13,314) (137,844) Internal transfers - 4,909 173,993 (215,937) 37,035 - Other (160) (960) (1,560) (42,770) 170 (45,280)

At June 30, 2014 2,014,612 442,003 2,577,752 2,548,227 171,162 7,753,756 (i) Refers to the merger of the subsidiaries Centaurus Holdings S.A and Klabin Celulose S.A., mentioned in Notes 1 and 3. Depreciation was mainly allocated to production cost for the period. c) Useful lives and depreciation method The table below shows the annual depreciation rates calculated using the straight-line method, which were applied during the six-month periods ended June 30, 2014 and 2013, defined based on the economic useful lives of the assets: Rate - % Buildings and construction 2.86 to 3.33 Machinery, equipment and facilities 2.86 to 10 (*) Other 4 to 20 (*) Prevailing rate of 6%. At the end of 2013, Management reviewed the useful lives of the Company's property, plant and equipment and decided to maintain the depreciation rates used in 2012. d) Construction in progress The balance of construction in progress at June 30, 2014 relates to the following main projects: (i) modernization of the wood preparation process in the Telêmaco Borba (PR) unit; (ii) the Puma Project; (iii) biomass drying process in the Otacílio Costa (SC) unit; (iv) treatment of gases at the Monte Alegre (PR) unit; (v) installation of a new recycled paper machine for the unit in Goiana (PE) and (vi) current investments in the continuing operations of the Company. e) Commitments Due to the pulp project ("Puma Project") described in Note 1, contracts with suppliers taking part in the project were negotiated in relation to the main machinery, equipment and services totalling R$ 4.5 billion at June 30, 2014. The amount is to be disbursed during the project up to the start-up date of the new factory, expected in 2016.


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f) Impairment of property, plant and equipment The Company did not identify indicators of impairment of its assets at June 30, 2014 or 2013. 13 BIOLOGICAL ASSETS The Company's biological assets comprise pine and eucalyptus trees planted for the supply of raw material for the production of the pulp used in the manufacture of paper and for sale as logs to third parties. Including its interest in the forestry area of its jointly-controlled subsidiary Florestal Vale do Corisco, the Company owned 240 thousand hectares of planted area at June 30, 2014 (242 thousand hectares as at December 31, 2013), not including the permanent preservation areas and legal reserve that are maintained in compliance with Brazilian environmental legislation. The balance of the Company's biological assets consists of the cost to grow forests and the fair value difference on the growing cost, less the costs necessary to prepare the assets for use or sale, so that the balance of biological assets as a whole is recorded at fair value, as follows:


Cost of development of biological assets 856,172 863,304 1,075,413 1,064,325 Fair value adjustment of biological assets 2,250,751 1,956,294 2,633,405 2,257,660

3,106,923 2,819,598 3,708,818 3,321,985

The fair value measurement of biological assets considers certain estimates, such as the price of wood, the discount rate, the harvesting plan for the forests and productivity level, all of which are subject to uncertainties, and could have an impact on the Company's future results due to their fluctuations. There are no biological assets pledged as collateral for transactions carried out by the Company and information on the insurance of biological assets and the financial risks of forestry operations is disclosed in Note 27. a) Assumptions regarding the recognition of the fair value of biological assets In accordance with CPC 29 - Biological Assets and Agricultural Product (equivalent to IAS 41), the Company recognizes its biological assets at fair value adopting the following assumptions in its calculation: (i) Eucalyptus forests are maintained at historical cost through the third year of planting and pine forests through the fifth year of planting, based on Management's understanding that during this period the historical cost of biological assets approximates their fair value. (ii) After the third and fifth years of planting, both eucalyptus and pine forests are measured at fair value, which reflects the sales price of the asset less the costs necessary to prepare the assets for the intended use or sale. (iii) The methodology used in the fair value measurement of biological assets corresponds to the discounted future cash flows estimated according to the projected productivity cycle of the forests, taking into consideration price variations and the growth of biological assets.


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(iv) The discount rate used for cash flows is the Company's Weighted Average Cost of Capital (WACC), which is periodically reviewed. (v) The projected productivity volumes of forests are determined using a stratification based on forest type, genetic material, handling system, productive potential, rotation and age. The set of these characteristics forms an index named Average Annual Growth (AAG), expressed in cubic meters per hectare/year, which is used as part of the basis of productivity projection. The Company's harvesting plan varies from six to seven years for eucalyptus trees and 14 to 15 years for pine trees. (vi) The prices of biological assets, denominated in R$/cubic meter, are obtained using market price surveys disclosed by specialized firms and prices charged by the Company on sales to third parties. The prices obtained are adjusted by deducting the capital costs relating to land, since the land is an asset that contributes to the planting of the forests, and other costs necessary to prepare the assets for sale or consumption. (vii) Planting expenses relate to the costs of the development of biological assets. (viii) The depletion of biological assets is calculated based on the fair value of biological assets harvested in the period. (ix) The Company has decided to review the fair value of its biological assets on a quarterly basis, since it understands that this period is sufficiently short to prevent any significant gap in the fair value of the biological assets as recorded in its quarterly information. b) Reconciliation and movement in fair value variations

Parent company Consolidated At December 31, 2012 2,944,187 3,441,495 Planting 59,520 81,095 Depletion: . Historical cost (57,347) (61,068) . Fair value adjustment (439,438) (468,244) Change in fair value associated with: . Price 111,330 103,186 . Growth 198,144 233,103 Capital increase in the new SPC (i) (121,463) - Incorporation due to dissolution of subsidiaries (ii) 124,665 - Transfers - (7,582) At December 31, 2013 2,819,598 3,321,985 Planting 26,060 45,739 Depletion: . Historical cost (33,530) (34,991) . Fair value adjustment (262,673) (275,934) Change in fair value associated with: . Price 248,621 316,221 . Growth 308,508 335,455 Transfers 339 343 At June 30, 2014 3,106,923 3,708,818

(i) Corresponding to the creation of the new subsidiaries denominated SPC CG Forest and SPC Monte Alegre, mentioned in Notes 1 and 3. (ii) Refers to the merger of the subsidiaries Centaurus Holdings S.A. and Klabin Celulose S.A., mentioned in Notes 1 and 3.

In 2014, the Company particularly wishes to note the variation in fair value, the increase in prices charged and the revision of the harvesting plans, mainly due to the reallocation of production in prospect of the Puma Project, expected to begin in 2016.


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The depletion of biological assets in the periods presented was mainly allocated to production cost, after allocation to inventory through the harvesting of forests and their use in the production process or sale to third parties. c) Sensitivity analysis In accordance with the hierarchy of CPC 46 - Measurements at fair value (equivalent to IFRS 13), the calculation of biological assets is classified as Level 3 due to its complexity and calculation structure. Assumptions utilized include sensitivity to the prices used in the evaluation and the discount rate used to calculate the discounted cash flow. Prices refer to the prices obtained in the regions in which the Company is located. The discount rate corresponds to the average cost of capital, taking into consideration the basic interest rate (SELIC) and inflation levels. Significant increases (decreases) in the prices used in the appraisal would result in an increase (decrease) in the measurement at fair value of biological assets. The average price used in the appraisal of the biological assets for the quarter ended June 30, 2014 was R$ 82.40/m3 (R$ 66.00/ m3 at December 31, 2013). The effects of a significant increase (decrease) in the discount rate used in the measurement of the fair value of biological assets would result in a decrease (increase) in the values measured. The Company's WACC is updated on an annual basis, and the new rate is applied as from the date of the first-quarter evaluation for each year, and this rate remains unchanged for the year. The discount rate used in the appraisal of the biological assets for the quarter ended June 30, 2014 was 5.9% in constant currency (5.7% at December 31, 2013). 14 BORROWINGS a) Composition of borrowings

Annual interest rate - % 6/30/2014 Non-current Current Total

In local currency . BNDES - Project MA1100 Long-Term Interest Rate

(TJLP) + 2.0 and basket(i) + 1.5 274,269 181,905 456,174

. BNDES - Other Long-Term Interest Rate (TJLP) + 4.8 and basket(i) +

2.5 154,489 680,689 835,178 . BNDES - Government Agency for Machinery and Equipment Financing (FINAME) 2.5 to 4.5 36,013 222,274 258,287 . Export credit notes (in R$) CDI 29,896 790,000 819,896 . Other 1.0 to 6.8 71,534 116,632 188,166 566,201 1,991,500 2,557,701 In foreign currency (ii) . BNDES - Other USD + 5.1 to 6.6% 22,433 149,052 171,485 . Export prepayments USD + Libor 6M + 1.1 to 6.4 482,403 2,879,080 3,361,483 . Export credit notes USD + 5.0 to 8.9 129,045 964,563 1,093,608 633,881 3,992,695 4,626,576 Total consolidated 1,200,082 5,984,195 7,184,277

Subsidiaries: . Export prepayments with subsidiaries (ii) USD + 3.1 1,112 3,304 4,416 Total parent company 1,201,194 5,987,499 7,188,693


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Annual interest rate - % 12/31/2013

Non-current

Current Total In local currency . BNDES - Project MA1100 Long-Term Interest Rate

(TJLP) + 4.5 and basket (i) + 1.5 258,936 328,407 587,343

. BNDES - Other Long-Term Interest Rate (TJLP) + 4.5 and basket (i)

+ 1.5 130,079 672,512 802,591 . BNDES - FINAME 2.5 to 4.5 15,475 187,502 202,977 . Export credit notes (in R$) CDI + 0.6 10,581 473,333 483,914 . Other 1.0 to 6.8 42,534 92,842 135,376 457,605 1,754,596 2,212,201 In foreign currency (ii) . BNDES - Other USD + 5.7 to 6.3% 17,633 133,608 151,241 . Export prepayments USD + Libor 6M + 1.1 to 6.4 541,694 2,838,491 3,380,185 . Export credit notes USD + 3.9 to 8.1 108,044 1,111,926 1,219,970 667,371 4,084,025 4,751,396 Total consolidated 1,124,976 5,838,621 6,963,597

Subsidiaries: . Export prepayments with subsidiaries (ii) USD + 3.1 1,177 3,514 4,691 Total parent company 1,126,153 5,842,135 6,968,288

BNDES

The Company has agreements with BNDES for the financing of industrial development projects, such as the construction of the new paper machine in Correia Pinto (SC), the construction of a new recycled paper machine in Goiana (PE) and the paper segment expansion project, referred to as MA 1100, which will be settled up to January 2017. This financing is repaid monthly along with the related interest. Export prepayments and export credit notes Export prepayment and credit note transactions were carried out with major banks for the purposes of working capital management and the development of the Company's operations. These agreements will be settled through until May 2022. b) Schedule of non-current maturities The maturity dates of the Company's borrowings at June 30, 2014, classified in non-current liabilities in the consolidated balance sheet, are as follows: 2022

Year 2015 2016 2017 2018 2019 2020 2021 onwards Total

Amount 505,570 757,446 1,008,929 1,085,646 908,927 803,386 450,618 463,673 5,984,195


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c) Summary of changes in borrowings


At December 31, 2012 6,035,104 6,035,104 Borrowings 1,411,497 1,407,193 Accrued interest 315,406 315,333 Monetary and foreign exchange variations 619,272 618,884 Repayments and payment of interest (1,412,991) (1,412,917) At December 31, 2013 6,968,288 6,963,597 Borrowings 1,066,749 1,066,749 Accrued interest 198,364 198,256 Monetary and foreign exchange variations (308,767) (308,384) Repayments and payment of interest (735,941) (735,941) At June 30, 2014 7,188,693 7,184,277

d) Guarantees The financing agreements with BNDES are guaranteed by the land, buildings, improvements, machinery, equipment and facilities of the plants in Correia Pinto (SC), and Monte Alegre (PR), of which the carrying amount, net of depreciation, was R$ 2,319,461 at June 30, 2014. The financing is also guaranteed by escrow deposits and sureties from the controlling stockholders. Export credits, export prepayments, and working capital loans are not collateralized. e) Restrictive covenants At the end of the reporting period, the Company and its subsidiaries did not have any financing agreements containing restrictive covenants on compliance with financial ratios on contracted transactions, in situations where non-compliance could accelerate the maturity of the debt. 15 DEBENTURES a) Sixth issue of debentures On January 7, 2014 the Company concluded the subscription and payment of 27,200,000 debentures issued in a private placement, with a unit par value of R$ 62.50, totaling R$ 1.7 billion. The debentures issued are subordinated, issued in a single series and in local currency, without guarantees, and mandatorily convertible into shares. The conversion of the debentures will be done in the proportion of one debenture for five units (considering the stock split mentioned in Note 1), and the Units comprise one nominative ON and four nominative PN. The funds obtained through the issue of the debentures are being allocated to the construction of a pulp plant related to the Puma Project, with production capacity of 1.5 million tons of pulp. The debentures will have a maturity term of five years, with maturity on January 8, 2019, and will be remunerated at 8% p.a., plus the variation of the Brazilian currency in relation to the U.S. dollar. They will also be included in any distribution of profit to the Company's stockholders.


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The conversion will be carried out at any time during the effective period of the debentures, after the lock-up period ending 18 months from the date of issue. In accordance with CPC 39 - Financial instruments: presentation, the Company recorded these debentures as a hybrid instrument, and the present value of the interest up to the conversion was determined and recognized as a financial liability, while the carrying amount of the equity instrument was recorded at the net amount (that is, the total amount of the debentures less the present value of the interest payable and less the issuance costs of the security), was recorded in the "Capital reserve" account in equity. b) Seventh issue of debentures The Company concluded the seventh issue of debentures on June 23, 2014, issuing 55,555,000 simple debentures, with personal sureties, combined with a subscription bonus, at the unit nominal value of R$ 14.40, totaling R$ 800 million, divided into two series of 27,777,500 debentures each, simultaneously.

Number Unit valueTotal value

(R$ thousand)

Interest rate

Maturity Amortization Interest Nature

Subscription bonus

First series: 27,777,500 14.40 399,996

Amplified Consumer Price Index (IPCA) + 7.25% 6/15/2020

Without amortization

Semi-annual

Convertible debt Yes Second series: 27,777,500 14.40 399,996 IPCA + 2.50% 6/15/2022 Semi-annual

Semi-annual

Debt No

55,555,000 799,992

First series - the first series debentures mature on June 15, 2020 and will yield IPCA + 7.25% per annum, with payment of interest on a biannual basis with a grace period of two years, without amortization of the principal, and will be in the nature of a convertible debt, since they may be used at any time after their maturity, at the discretion of the holder, to subscribe and pay up shares issued by the Company as Units (comprising one ON and four PN), at the proportion ofone Unit for each debenture, through the exercise of the Subscription Bonus that will be attributed with additional benefit to the debenture holders. Second series - the second series debentures mature on June 15, 2022, and will yield IPCA + 2.50% per annum, paid biannually together with the amortization of the principal, with a grace period of two years, and are not convertible; therefore they are not linked to the Subscription Bonus. Those who acquired the first series must acquire debentures of the second series. The amount of R$ 28,503, resulting from the Subscription Bonus on the debentures issued, was allocated to equity. In order to ensure the collection of funds, BNDES Participações - BNDESPAR undertook the firm commitment to subscribe to all the issued debentures, in the case that the Company's stockholders do not exercise their preference right. Therefore, 98.86% of the debentures were subscribed by BNDES and the remaining debentures by other stockholders on the market.


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c) Breakdown of the balance of debentures The balance at June 30, 2014 is as follows:

Parent company and consolidated 6/30/2014

Sixth issue Seventh

issue Total Non-current liabilities . Principal - 799,992 799,992 . Interest up to maturity 546,720 - 546,720 . Adjustment to present value of interest (110,804) - (110,804) . Restatement/profit sharing (45,247) - (45,247) . Subscription bonus - (28,503) (28,503)

390,669 771,489 1,162,158 Equity - capital reserve . Debentures issued 1,700,000 - 1,700,000 . Interest up to maturity at present value (410,119) - (410,119) . Subscription bonus - 28,503 28,503 . Cost of the issue of debentures (29,841) - (29,841)

1,260,040 28,503 1,288,543 Total 1,650,709 799,992 2,450,701

16 TRADE PAYABLES Parent company Consolidated 6/30/2014 12/31/2013 6/30/2014 12/31/2013 Local currency 1,202,786 330,778 1,203,183 331,386 Foreign currency 19,538 11,348 24,253 13,998 1,222,324 342,126 1,227,436 345,384

The Company's average payment term with operational suppliers is approximately 35 days. In the case of suppliers of property, plant and equipment, terms follow the commercial trade of each operation, without a specific average term. 17 TAX, SOCIAL SECURITY, CIVIL AND LABOR PROVISION a) Risks provided for Based on the individual analysis of lawsuits filed against the Company and its subsidiaries and the opinion of its legal counsel, provision is recorded in non-current liabilities for losses considered as probable, as follows: 6/30/2014 Restricted Unrestricted Provisioned judicial Liabilities judicial In the parent company: amount deposits net deposits Tax: . PIS/COFINS - - - 24,795 . Corporate Income Tax / Social Contribution on Net Income (12,056) 10,671 (1,385) - . Other (1,110) 1,110 - 28,992 (13,166) 11,781 (1,385) 53,787 Labor (65,267) 19,171 (46,096) -


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Civil (9,049) 806 (8,243) - (87,482) 31,758 (55,724) 53,787

Subsidiaries: Other - - - - Consolidated (87,482) 31,758 (55,724) 53,787

12/31/2013

Restricted judicial deposits

Unrestricted

judicial deposits

Provisioned

amount

Net

liability

In the parent company: Tax: . PIS/COFINS - - - 24,112 . Corporate Income Tax / Social Contribution on Net Income (12,003) 10,671 (1,332) - . Other (652) 652 - 34,587 (12,655) 11,323 (1,332) 58,699 Labor (74,879) 18,748 (56,131) - Civil (8,370) 767 (7,603) - (95,904) 30,838 (65,066) 58,699

Subsidiaries: Other (1) - (1) 1,432 Consolidated (95,905) 30,838 (65,067) 60,131

The risks provided for by the Company at June 30, 2014 relate to tax lawsuits - mainly challenges regarding income tax and social contribution on monetary restatements under Law 8,200/91, labor lawsuits filed by former employees of the Company's plants claiming in relation to labor rights (severance pay, overtime, hazardous duty and health hazard premiums), indemnities and joint liability, and civil lawsuits relating mainly to compensation claims for property damage and/or pain and suffering resulting from accidents. b) Summary of changes in the amount of provision Parent and consolidated Tax Labor Civil Net exposure At December 31, 2012 (1,135) (44,599) (6,210) (51,944) New lawsuits/increases and monetary restatements/derecognition (2,274) 1,868 - (406) (Provision)/reversals 2,077 (13,400) (1,393) (12,716) At December 31, 2013 (1,332) (56,131) (7,603) (65,066) New lawsuits/increases and monetary restatements/derecognition (965) 424 39 (502) (Provision)/reversals 912 9,611 (679) 9,844 At June 30, 2014 (1,385) (46,096) (8,243) (55,724)

c) Provision for tax, social security, labor and civil contingencies not recognized At June 30, 2014, the Company and its subsidiaries had other tax, labor and civil legal proceedings involving loss risks evaluated as "possible", totaling approximately: (i) tax R$ 582,077; (ii) labor R$ 120,058; and (iii) civil R$ 81,995 (R$ 534,238, R$ 101,391 and R$ 78,935 at December 31, 2013, respectively). Based on the individual analysis of lawsuits and the opinion of the Company's legal


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counsel, Management understands that these lawsuits do not need to be provided for since the likelihood of loss is assessed as only possible. d) Lawsuits filed by the Company At June 30, 2014, the Company was a plaintiff in lawsuits for which there was no provision in its quarterly information; the related assets will be recognized only after a final and unappealable decision is rendered and the gain is virtually certain. The Company's legal counsel assessed the likelihood of a favorable outcome in some of the lawsuits as "probable". These lawsuits relate to the requirement for presumed notional Excise Tax (IPI) credits on purchases of electric power, fuel oil and natural gas used in the production process. e) Enrollment in REFIS The REFIS (Law 11,941/09 and Law 12,865/13) balance payable recorded in the parent company and consolidated accounts totaled R$ 439,674 at June 30, 2014 (R$ 443,892 at December 31, 2013), which was restated at the effective interest rate, which considers future value and SELIC variation. The balance is being paid in monthly installments. f) Commitments The Company and its subsidiaries did not have any material future commitments at the end of the reporting period that have not been disclosed yet in the quarterly information. 18 EQUITY a) Share capital The Company's subscribed and paid-up capital was R$ 2,271,500 at June 30, 2014 and December 31, 2013, comprising 4,729,789,535 shares (917,683,296 at December 31, 2013 - see information in Note 1), without par value, held as follows: 6/30/2014 12/31/2013

Stockholders ON PN ON PN BNDESPAR 79,647,040 318,588,160 - 79,647,040 The Bank of New York Department - 279,311,875 - 56,502,205 Monteiro Aranha S/A 69,678,889 278,747,006 63,458,605 15,619,078 Klabin Irmãos & Cia 941,837,080 - 163,797,753 - Niblak Participações S.A. 142,023,010 - 24,699,654 - Other 505,688,390 1,964,790,335 64,871,551 418,473,910 Treasury shares 29,895,550 119,582,200 - 30,613,500 1,768,769,959 2,961,019,576 316,827,563 600,855,733

Besides nominative ON and PN, the Company negotiates Units corresponding to one ON and four PN. The Company's authorized capital comprises 5,600,000,000 ON and/or PN.


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b) Treasury shares

The Extraordinary Meeting of the Board of Directors held on December 9, 2013 approved the buyback of shares in the Company equivalent to 10% of the shares outstanding on the market at that date to 365-day period, to be held in treasury for subsequent sale or cancellation without a capital reduction.

The Company bought back 15,250 of its own PN in January 2014, at the average price of R$ 1.25, totaling R$ 19. In April 2014, the Company bought back 1,000,000 shares, corresponding to 200,000 units, for the average price of R$ 11.67, totaling R$ 2,335.

In accordance with the stock option plan granted as long-term remuneration to the Company's officers and described in Note 22, 2,302,500 preferred treasury shares were sold in March 2014, and the right to use the same amount was written off from treasury shares.

The Company maintained 148,477,750 shares of its own issue in treasury, corresponding to 29,895,550 units, at June 30, 2014. The price on the São Paulo Stock Exchange was R$ 11.00 per Unit at June 30, 2014.

c) Reserves

Capital reserve

The reserve was constituted as a result of the sale of shares held in treasury, which did not transit through the statement of operations. The balance can be utilized to offset losses, repurchase shares or pay dividends on PN, or can be incorporated into capital.

Additionally, the value of the sixth issue of debentures (see Note 15) has been allocated to the capital reserve, net of interest at present value and costs on the issue of securities, in the amount of R$ 1,260,040, and the value of the Subscription Bonus of the seventh issue of debentures of R$ 28,503 at June 30, 2014.

The debentures issued are mandatorily convertible into shares and will be transferred to capital when their conversion is realized.

Revaluation reserve

Based on CVM Resolution 27/86, this balance relates to the revaluation of property, plant and equipment in 1988, which is realized through the depreciation or sale of revalued assets. The balance is stated net of the applicable income tax and social contribution.

Revenue reserves

(i) Legal reserve

Under Brazilian corporate legislation, the Company should allocate 5% of the annual profit, not exceeding 20% of capital, to the legal reserve. The Company need not contribute to the legal reserve in any year in which the balance of this reserve, plus the amount of capital reserve, exceeds 30% of capital. The purpose of the legal reserve is to ensure the integrity of the Company's capital and it can be used only to offset losses or increase capital, as determined by the Stockholders' Meeting.


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(ii) Investment and working capital reserve

This statutory reserve, comprising the variable portion of annual profit adjusted as required by law and representing between 5% and 75% of profit according to the Company's bylaws, is intended to ensure funds for investment in property, plant and equipment and to reinforce working capital.

(iii) Biological assets reserve

As required by the Company's bylaws, the biological assets reserve is appropriated from the profit for the year, net of taxes. It is constituted every year, with appreciations in value arising from the fair value measurement of biological assets and reversed to retained earnings on the decrease in the fair value measurement of biological assets. The balance is realized through the depletion of the fair value of biological assets, limited to the existing balance in retained earnings.

The biological assets reserve relates to the biological assets of the Company and its subsidiaries and jointly-controlled subsidiaries as reflected in equity in the results of investees.

(iv) Reserve for proposed dividends

The reserve for proposed dividends is constituted based on Management's proposal for dividend distribution from the portion exceeding the mandatory minimum dividend, which is contingent upon the approval of the General Meeting of Stockholders.

d) Carrying value adjustment

Created by Law 11,638/07, the group "Carrying value adjustments" in the Company's equity comprises adjustments in respect of increases and decreases in assets and liabilities, when applicable, that are not computed in the result for the year, up to their effective realization.

The balance maintained by the Company corresponds to the adoption of the deemed cost of property, plant and equipment for the forest land, an option exercised on the initial adoption of the new accounting pronouncements in convergence with IFRS on January 1, 2009; the foreign exchange variations of the Argentine subsidiary (Note 1); balances relating to the stock option plan granted to executives (Note 22); and actuarial liability restatements (Note 26). Parent and consolidated

6/30/2014 12/31/2013 Deemed cost of property, plant and equipment (land) 1,098,205 1,098,205 Foreign exchange variations - subsidiary abroad (34,637) (22,099) Actuarial liability (9,792) (9,792) Stock option plan (880) (877) 1,052,896 1,065,437

e) Dividends

Dividends represent a portion of the profits earned by the Company which are distributed to the stockholders as remuneration for invested capital in the fiscal year. All stockholders are entitled to receive dividends proportionately to their ownership interest, as assured by Brazilian corporate legislation and the Company's bylaws. The bylaws also grant Management the option to prepay interim dividends during the year, "ad referendum" of the Ordinary General Meeting held to examine the accounts for the year.


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The calculation basis of the mandatory dividends defined in the Company's bylaws, which determe that it will be adjusted in accordance with the constitution, realization, and reversal, in the related year, of the biological assets reserve, entitles the Company's stockholders to receive, every year, a mandatory minimum dividend of 25% of the annual adjusted profit. According to the stockholders' approval issued at the Annual General Meeting held on March 20, 2014, the Company distributed supplementary dividends for 2013 of R$ 90,077, corresponding to R$ 19.04 per thousand shares and R$ 95.20 per thousand Units, paid on April 9, 2014. The balance of supplementary dividends is maintained in a specific account in equity named "Reserve for dividends proposed" until its approval and payment. The allocation of profit from the balance of retained earnings is recorded only at the end of the reporting period. 19 NET SALES REVENUE The Company's net sales revenue is comprised as follows: Parent company From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013 Gross sales revenue 1,369,456 2,779,223 1,280,693 2,555,663 Discounts and rebates (6,914) (7,892) (4,076) (6,668) Taxes on sales (233,837) (463,854) (221,169) (441,698) 1,128,705 2,307,477 1,055,448 2,107,297 . Domestic market 892,983 1,764,151 825,434 1,640,367 . Foreign market 235,722 543,326 230,014 466,930 Net sales revenue 1,128,705 2,307,477 1,055,448 2,107,297

Consolidated From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013 Gross sales revenue 1,399,323 2,841,133 1,325,897 2,620,844 Discounts and rebates (8,384) (10,368) (5,871) (9,702) Taxes on sales (239,846) (476,201) (226,233) (450,945)

1,151,093 2,354,564 1,093,793 2,160,197 . Domestic market 894,351 1,759,057 824,933 1,637,198 . Foreign market 256,742 595,507 268,860 522,999 Net sales revenue 1,151,093 2,354,564 1,093,793 2,160,197


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20 INCOME (EXPENSES) BY NATURE Parent company From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013 Variable costs (raw materials and consumables) (450,592) (892,337) (420,553) (805,260) Personnel (197,879) (384,045) (178,617) (340,788) Depreciation, amortization and depletion (273,014) (447,880) (152,449) (314,438) Freight (53,703) (113,487) (51,862) (105,549) Commission (2,490) (6,027) (789) (1,511) Services contracted (65,235) (122,700) (64,313) (119,686) Revenue from sale of property, plant and equipment 4,582 6,261 782 13,850 Cost of sale and write-off of property, plant and equipment (2,087) (2,681) (2,222) (16,408) Other (27,185) (62,109) (59,668) (96,527)

(1,067,603) (2,025,005) (929,691) (1,786,317)

Consolidated From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013 Variable costs (raw materials and consumables) (441,388) (876,160) (411,523) (783,795) Personnel (199,878) (387,924) (180,421) (344,230) Depreciation, amortization and depletion (257,832) (434,383) (163,258) (336,324) Freight (54,415) (115,295) (53,035) (107,717) Commission (5,386) (14,069) (7,393) (14,191) Services contracted (65,894) (123,939) (64,963) (120,895) Revenue from sale of property, plant and equipment 4,582 6,261 782 13,850 Cost of sale and write-off of property, plant and equipment (2,087) (2,681) (2,222) (16,408) Other (62,317) (101,431) (74,319) (109,651)

(1,084,615) (2,049,621) (956,352) (1,819,361)

21 FINANCE INCOME AND COSTS

Parent company From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013

Finance income . Income from financial investments 112,577 222,588 41,906 79,993 . Other 16,762 24,462 3,325 9,369

129,339 247,050 45,231 89,362 Finance costs . Interest, financing and debentures (67,124) (142,883) (77,002) (149,900) . Interest on REFIS (Note 17) (10,385) (21,249) (9,801) (16,900) . Compensation of investors - SCPs - - - - . Other (17,739) (33,985) (22,640) (29,726)

(95,248) (198,117) (109,443) (196,526) Foreign exchange variations . Exchange variation on assets (20,309) (44,336) 42,580 37,653 . Exchange variation on liabilities 125,687 300,626 (396,186) (332,116)

105,378 256,290 (353,606) (294,463) Finance result 139,469 305,223 (417,818) (401,627)


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Consolidated From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013

Finance income . Income from financial investments 116,200 229,832 44,228 84,283 . Other 16,808 24,412 3,231 9,274

133,008 254,244 47,459 93,557 Finance costs . Interest, financing and debentures (67,086) (142,810) (76,997) (149,895) . Interest on REFIS (Note 17) (10,385) (21,249) (9,801) (16,900) . Compensation of investors - SCPs (1,284) (3,901) (1,566) (3,043) . Other (18,350) (35,145) (22,972) (30,304)

(97,105) (203,105) (111,336) (200,142) Foreign exchange variations . Exchange variation on assets (20,204) (44,347) 42,712 37,773 . Exchange variation on liabilities 121,820 296,494 (397,031) (332,430)

101,616 252,147 (354,319) (294,657) Finance result 137,519 303,286 (418,196) (401,242)

22 STOCK OPTION PLAN The Extraordinary General Meeting of Stockholders held on July 10, 2012 approved the stock option plan as a benefit for the members of the Executive Board and the Company's key personnel. CVM authorized the Company, through Circular Letter/CVM/SEP/GEA-2/221/2012, to realize the private transactions included in the incentive plan for its directors and employees, except for controlling stockholders, by the private transfer of treasury shares. Pursuant to this plan, the Company established that its statutory and non-statutory directors could utilize 25% to 70% of their variable remuneration for the acquisition of treasury shares, and the Company will grant the right of use of the same amount of shares to the acquirers for three years, transferring the ownership of the shares to them after three years, provided that the clauses established in the Plan are complied with. The plan does not establish the acquisition of shares by the Company's key personnel, but only the granting of the right to use a certain number of shares for three years, the ownership of which will be transferred to the beneficiary, provided the established clauses are complied with. The right of use granted to the beneficiaries allows them to the dividends distributed in the period during which the benefit is valid. The value of the treasury shares acquired by the beneficiaries of the plan will be obtained based on the lower of the average of the market value quotations in the last 60 trading sessions of the Company's shares and their quotation on the acquisition date. The value of shares granted with right of use corresponds to the quoted value of shares traded on the BOVESPA on the transaction date. The clauses that grant the transfer of shares establish the participation of the beneficiary in the Company and stipulate that the shares acquired on adhesion to the plan may not be sold. The shares granted can be immediately assigned in the case of the termination of employment by the Company, or the retirement or death of the beneficiary, in which case the right to the shares becomes part of the estate of the deceased.


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The shares granted and the expense proportional to the grant term, recorded in the result, are accumulated in equity in the "Carrying value adjustments" group, up to time when the grant ends in accordance with the three-year maturity or any other clause of the plan that can trigger its termination. The table below presents information on the plans: a) Statutory and non-statutory board members

Plan 2011 Plan 2012 Plan 2013 Total Start of the plan 7/10/2012 3/1/2013 3/1/2014 - Final grant date 7/10//2015 3/1/2016 3/1/2017 - Treasury shares acquired by the beneficiaries (i) 2,375,000 1,904,500 2,302,500 6,582,000 Purchase value per share (R$) (i) 1.56 2.57 2.34 Treasury shares granted with right of use (i) 2,375,000 1,904,500 2,302,500 6,582,000 Value of the right of use per share (R$) (i) 1.75 2.67 2.29 Expense of the plan accumulated since the beginning 2,777 2,262 585 5,624 Expense of the plan - 1/1 to 6/30/2014 694 848 585 2,127 Expense of the plan - 1/1 to 6/30/2013 694 690 - 1,384 b) Key personnel Plan 2012 Start of the plan (ii) 3/1/2013 Final grant date 3/1/2016 Treasury shares granted with right of use (i) 682,500 Value of the right of use per share (R$) (i) 2.67 Expense of the plan accumulated since the beginning 811 Expense of the plan - 1/1 to 6/30/2014 304 Expense of the plan - 1/1 to 6/30/2013 203

(i) Considers the stock split mentioned in Note 1. (ii) The 2012 plan was granted in June 2013 on a retrospective basis.

23 EARNINGS PER SHARE Basic earnings per share are calculated by dividing profit for the period attributable to holders of Company ON and PN by the weighted average number of ON and PN available during the period. The Company has debentures mandatorily convertible into shares (see Note 15) recorded in equity, therefore the future conversion of the debentures into the total amount of shares is considered in the number of shares. The shares from the future conversion of the seventh issue of debentures (see Note 15) were disregarded in the calculation because they were issued at the end of June, with immaterial effect on the calculation for the three- and six-month periods ended June 30, 2014. Diluted earnings per share are equal to basic earnings per share since the Company does not have potentially dilutive ON or PN. As mentioned in Note 1, the Company realized a stock split on March 20, 2013, in the proportion of one for five shares of the same class and type. The calculation shown in this ITR considers all the information on shares, including the stock split mentioned, and represents the quarter and six-month periods ended June 30, 2013, for comparison purposes.


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As mentioned in Note 18, the changes in the balance of treasury shares affect the weighted average number of PN held in treasury in the calculation for the three- and six-month periods ended June 30, 2014. The weighted average used in the calculation of earnings per share was determined as follows:

Weighted average number of treasury shares - June 30, 2014 (*)

Jan to Feb Mar Apr to Jun First half of 2013

153,067,500 x 2/6 + 148,477,750 x 1/6 + 149,477,750 x 3/6 = 150,507,665 (*) Because the Company has only Units in treasury, nominative ON and PN are divided in conformity with the Units.

The table below, presented in R$, reconciles the profit for the three- and six-month periods ended June 30, 2014 and 2013 to the amounts used in the calculation of basic and diluted earnings per share: Parent and consolidated From 1/4 to 6/30/2014

Total ON PN (*) Denominator Total weighted average number of shares 1,768,769,959 2,961,019,576 4,729,789,535 Number of shares to be converted into debentures 136,000,000 544,000,000 680,000,000 Weighted average number of treasury shares (29,895,550) (119,582,200) (149,477,750) Weighted average number of outstanding shares 1,874,874,409 3,385,437,376 5,260,311,785

% of shares in relation to the total (*) 35.64% 64.36% 100%

Numerator Profit attributable to each class of shares (R$) 86,794,412 156,723,588 243,518,000

Weighted average number of outstanding shares 1,874,874,409 3,385,437,376 5,260,311,785

Basic and diluted earnings per share (R$) 0.0463 0.0463

Parent and consolidated From 1/1 to 6/30/2014

Total ON PN (*) Denominator Total weighted average number of shares 1,768,769,959 2,961,019,576 4,729,789,535 Number of shares to be converted into debentures 136,000,000 544,000,000 680,000,000 Weighted average number of treasury shares (30,101,533) (120,406,132) (150,507,665) Weighted average number of outstanding shares 1,874,668,426 3,384,613,444 5,259,281,870






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Total ON PN (*) Denominator Total weighted average number of shares 1,584,137,815 3,004,278,665 4,588,416,480 Weighted average number of treasury shares - (150,651,665) (150,651,665) Weighted average number of outstanding shares 1,584,137,815 2,853,627,000 4,437,764,815


Numerator Profit attributable to each class of shares (R$) (43,543,328) (86,281,672) (129,825,000)


Basic and diluted earnings per share (R$) (0.0275) (0.0302)


Total ON PN (*) Denominator Total weighted average number of shares 1,584,137,815 3,004,278,665 4,588,416,480 Weighted average number of treasury shares - (151,663,250) (151,663,250) Weighted average number of outstanding shares 1,584,137,815 2,852,615,415 4,436,753,230





24 OPERATING SEGMENTS a) Criteria for identification of operating segments The Company's operating structure is divided into segments according to the manner in which Management manages the business. The operating segments defined by Management are as follows: (i) Forestry segment: this includes operations for planting and growing pine and eucalyptus trees to supply the Company's paper plants. It also involves selling timber (logs) to third parties on the domestic market. (ii) Paper segment: this mainly involves the production and sale of cardboard, kraftliner and recycled paper rolls on the domestic and foreign markets. (iii) Conversion segment: this involves the production and sale of corrugated cardboard boxes, corrugated cardboard and industrial sacks on the domestic and foreign markets.


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b) Consolidated information on operating segments Consolidated From 1/4 to 6/30/2014 Corporate/ Forestry Paper Conversion eliminations Total Net revenue: .Domestic market 92,074 299,458 502,251 568 894,351 .Foreign market - 224,242 32,500 - 256,742 Revenue from sales to third parties 92,074 523,700 534,751 568 1,151,093 Revenue between segments 134,043 266,091 2,934 (403,068) - Total net sales 226,117 789,791 537,685 (402,500) 1,151,093 Changes in the fair value of biological assets 129,604 - - - 129,604 Cost of products sold (325,930) (580,685) (441,547) 406,444 (941,718) Gross profit 29,791 209,106 96,138 3,944 338,979 Operating income (expenses) (11,237) (72,274) (55,126) 1,547 (137,090) Operating result before finance result 18,554 136,832 41,012 5,491 201,889

Sale of products (in metric tons) .Domestic market - 126,238 169,838 - 296,076 .Foreign market - 115,706 6,780 - 122,486 .Intersegmental - 186,905 409 (187,314) -

- 428,849 177,027 (187,314) 418,562 Sale of timber (in metric tons) .Domestic market 887,323 - - - 887,323 .Intersegmental 1,733,663 - - (1,733,663) -

2,620,986 - - (1,733,663) 887,323

Investments in the period 34,281 565,019 32,518 315 632,133 Depreciation, depletion and amortization (186,008) (61,210) (9,578) (1,036) (257,832)

Consolidated From 1/1 to 6/30/2014 Corporate/ Forestry Paper Conversion eliminations Total Net revenue: .Domestic market 175,232 596,709 986,184 932 1,759,057 .Foreign market - 519,936 75,571 - 595,507 Revenue from sales to third parties 175,232 1,116,645 1,061,755 932 2,354,564 Revenue between segments 272,659 531,229 7,391 (811,279) - Total net sales 447,891 1,647,874 1,069,146 (810,347) 2,354,564 Changes in the fair value of biological assets 651,676 - - - 651,676 Cost of products sold (564,294) (1,116,532) (878,230) 814,486 (1,744,570) Gross profit 535,273 531,342 190,916 4,139 1,261,670 Operating income (expenses) (21,052) (157,760) (107,126) (7,764) (293,702) Operating result before finance result 514,221 373,582 83,790 (3,625) 967,968

Sale of products (in metric tons) .Domestic market - 250,933 333,879 - 584,812 .Foreign market - 261,085 15,234 - 276,319 .Intersegmental - 371,003 1,375 (372,378) -

- 883,021 350,488 (372,378) 861,131 Sale of timber (in metric tons) .Domestic market 1,584,408 - - - 1,584,408 .Intersegmental 3,520,583 - - (3,520,583) -

5,104,991 - - (3,520,583) 1,584,408

Investments in the period 62,360 1,019,644 51,916 958 1,134,878 Depreciation, depletion and amortization (308,850) (104,590) (19,117) (1,826) (434,383) Total assets - 6/30/2014 8,309,659 4,698,395 1,177,695 5,550,049 19,735,798 Total liabilities - 6/30/2014 2,367,768 523,479 172,452 9,237,343 12,301,042 Equity - 6/30/2014 5,941,891 4,174,916 1,005,243 (3,687,294) 7,434,756


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Consolidated From 1/1 to 6/30/2013 Corporate/ Forestry Paper Conversion eliminations Total Net revenue: .Domestic market 142,435 581,589 912,539 635 1,637,198 .Foreign market - 454,037 68,962 - 522,999 Revenue from sales to third parties 142,435 1,035,626 981,501 635 2,160,197 Revenue between segments 271,960 472,768 5,224 (749,952) - Total net sales 414,395 1,508,394 986,725 (749,317) 2,160,197 Changes in the fair value of biological assets 131,876 - - - 131,876 Cost of products sold (454,108) (1,023,920) (788,567) 739,654 (1,526,941) Gross profit 92,163 484,474 198,158 (9,663) 765,132 Operating income (expenses) (27,928) (150,127) (104,711) (7,466) (290,232) Operating result before finance result 64,235 334,347 93,447 (17,129) 474,900


- 883,226 344,119 (367,790) 859,555 Sale of timber (in metric tons) .Domestic market 1,329,626 - - - 1,329,626 .Intersegmental 3,562,687 - - (3,562,687) -

4,892,313 - - (3,562,687) 1,329,626

Investments in the period 40,156 262,274 31,673 11,990 346,093 Depreciation, depletion and amortization (227,317) (90,293) (17,351) (1,363) (336,324)

Consolidated From 1/4 to 6/30/2013 Corporate/ Forestry Paper Conversion eliminations Total Net revenue: .Domestic market 73,967 276,350 474,267 349 824,933 .Foreign market - 232,024 36,836 - 268,860 Revenue from sales to third parties 73,967 508,374 511,103 349 1,093,793 Revenue between segments 135,888 240,896 2,966 (379,750) - Total net sales 209,855 749,270 514,069 (379,401) 1,093,793 Changes in the fair value of biological assets 70,267 - - - 70,267 Cost of products sold (225,627) (542,322) (412,403) 373,110 (807,242) Gross profit 54,495 206,948 101,666 (6,291) 356,818 Operating income (expenses) (8,653) (76,418) (55,214) (7,460) (147,745) Operating result before finance result 45,842 130,530 46,452 (13,751) 209,073


- 437,620 179,841 (188,357) 429,104 Sale of timber (in metric tons) .Domestic market 688,926 - - - 688,926 .Intersegmental 1,769,888 - - (1,769,888) -

2,458,814 - - (1,769,888) 688,926 Investments in the period 17,608 160,993 11,629 3,703 193,933 Depreciation, depletion and amortization (108,137) (45,533) (8,941) (647) (163,258)

The balance in the column Corporate/eliminations refers to (i) corporate: the corporate unit's expenses not apportioned among the other segments, and (ii) eliminations: adjustments to the allocation of operations between the various segments.


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No information on the finance result or income tax was disclosed in segmental reporting because Management does not utilize such data on a segmental basis, and the data are instead managed and analyzed on a consolidated basis. c) Information on net sales revenue The Company's net revenue from sales to foreign market customers in consolidated profit (loss) for the three- and six-month periods ended June 30, 2014 amounted to R$256,742 and R$595,507, respectively (R$268,860 and R$ 522,999 for the three- and six-month periods ended June 30, 2013, respectively). The table below shows the distribution of net revenue by country: Consolidated From 1/04 to 6/30/2014 From 1/01 to 6/30/2014

Country Total revenue (R$/million)

% of total net revenue

Total revenue (R$/million)


Argentina 97 8.4% 200 8.5% China 29 2.5% 83 3.5% Singapore 28 2.4% 61 2.6% Nigeria 0 0.0% 23 1.0% Ecuador 4 0.3% 25 1.1% Italy 14 1.2% 24 1.0% Spain 7 0.6% 17 0.7% Turkey 2 0.2% 12 0.5% Germany 11 1.0% 18 0.8% France 6 0.5% 13 0.6% Other 59 5.1% 120 5.1% 257 22% 596 25%

Consolidated From 1/04 to 6/30/2013 From 1/01 to 6/30/2013

Country Total revenue (R$/million)


Total revenue (R$/million)


Argentina 102 9.9% 208 9.6% China 41 4.0% 79 3.7% Singapore 40 3.9% 70 3.2% Spain 17 1.7% 27 1.3% Germany 17 1.7% 24 1.1% Italy 8 0.8% 21 1.0% France 7 0.7% 15 0.7% South Africa 5 0.5% 10 0.5% Uruguay 3 0.3% 7 0.3% Venezuela 1 0.1% 6 0.3% Other 28 2.7% 56 2.6% 269 26% 523 24%

The Company's net revenue from sales to domestic market customers in consolidated profit (loss) for the three- and six-month period ended June 30, 2014 amounted to R$894,351 and R$1,759,057, respectively (R$ 824,933 and R$1,637,198 for the three- and six-month periods ended June 30, 2013, respectively). Concerning the paper segment, for the six-month period ended June 30, 2014, a single customer for cardboard represented approximately 21% of the Company's net revenue, corresponding to approximately R$ 498,000 (R$ 475,000 for the six-month period ended June 30, 2013). The remaining customer base is diluted as none of the other customers individually accounts for a material share (above 10%) of the Company's net sales revenue.


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25 RISK MANAGEMENT AND FINANCIAL INSTRUMENTS a) Risk management The Company and its subsidiaries enter into transactions involving financial instruments, all recorded in balance sheet accounts, in order to meet their operational needs and reduce exposure to financial risks (mainly relating to credit and the investment of funds), market risks (foreign exchange and interest rates) and liquidity risks, to which the Company understands that it is exposed based on the nature of its business and operating structure. These risks are managed through the definition of strategies prepared and approved by the Company's Management, which are linked to the control systems and limits established. The Company does not enter into transactions involving financial instruments for speculative purposes. Management also carries out prompt assessments of the Company's consolidated position, monitoring the financial results obtained, analyzing future projections to ensure compliance with the business plan defined, and monitoring the risks to which it is exposed. The main risks to which the Company is exposed are described below: Market risk Market risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate due to changes in market prices. Market prices are affected by two types of risk: interest rate risk and foreign exchange risk. The financial instruments affected by market risk are financial investments, trade receivables, trade payables, loans payable, available-for-sale instruments, and derivative financial instruments. (i) Foreign exchange risk The Company has transactions denominated in foreign currencies (mainly in U.S. dollars), which are exposed to market risks arising from fluctuations in foreign exchange rates. Any fluctuation in a foreign exchange rate could increase or reduce balances. The composition of this exposure during the periods in question was as follows:

Consolidated 6/30/2014 12/31/2013

Bank deposits and financial investments 265,188 174,612 Trade receivables (net of provision for impairment of trade receivables) and other assets 376,383 345,347 Other assets and liabilities 238,827 (9,940) Export prepayments (financing) (4,626,576) (4,751,396) Net exposure (3,746,178) (4,241,377)


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The balance of this net exposure at June 30, 2014 was as follows:

Year 2014 2015 2016 2017 2018 2019 2020 2021

onwards Total Amount 566,116 (543,470) (480,457) (783,347) (718,873) (721,219) (536,071) (528,857) (3,746,178)

The Company did not have derivative contracts to hedge against long-term foreign exchange exposure at June 30, 2014. However, in order to hedge against this net liability exposure, the Company has a sales plan under which the projected flow of export revenue is approximately USD 500 million annually and projected receipts, if realized, will exceed or approximate the flow of payments of the related liabilities, offsetting the cash effect of this foreign exchange exposure in the future. (ii) Interest rate risk The Company has loans indexed to the variation of long-term interest rate (TJLP), London Inter-Bank Offered Rate (LIBOR) and CDI, and financial investments indexed to the variation of the CDI and SELIC, which are exposed to fluctuations in interest rates as shown in the interest sensitivity analysis below. The Company does not have derivative contracts to swap/hedge against the exposure to these market risks. The practice adopted by the Company is to continuously monitor market interest rates in order to assess the possible need to contract derivatives to hedge against the risk of interest rate volatility. The Company considers that the high cost associated with entering into transactions at fixed interest rates in the Brazilian macroeconomic scenario justifies its employment of floating rates. The composition of the interest rate risk is as follows:

Consolidated 6/30/2014 12/31/2013

Financial investments - CDI 4,664,929 2,521,195 Financial investments - SELIC 471,337 249,511 Asset exposure 5,136,266 2,770,706

Financing - CDI (819,896) (483,914) Financing - TJLP (1,291,352) (1,592,911) Financing - LIBOR (3,361,483) (3,380,185) Debentures - IPCA (799,992) - Liability exposure (6,272,723) (5,457,010)

Risk relating to use of funds The Company is exposed to risk relating to the use of funds, including deposits in banks and financial institutions, foreign exchange transactions, financial investments and other financial instruments contracted. The amount of exposure relates mainly to financial investments and transactions involving securities, which are described in Notes 4 and 5. In relation to the financial assets of the Company invested in financial institutions, an internal policy is used for the approval of the type of operation being invested in and for the analysis of the ratingit has received from rating agencies, to assess the feasibility of the investment.


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The table below presents the cash, cash equivalents and marketable securities invested by the Company, classifying the amounts according to the classification of the financial institutions by the ratings agency Fitch:

Consolidated

6/30/2014 12/31/2013

National rating AAA(bra) (*) 5,396,067 2,859,196

National rating AA+(bra) 126,311 120,187

5,522,378 2,979,383 (*) The National Treasury Bills (LFTs) are considered in this group due to the low risk linked to the operating institution.

Credit risk Credit risk is the risk that a counterparty of a business will not fulfill an obligation established in a financial instrument or contract, leading to a financial loss. The Company is exposed to credit risk in its operating activities (mainly in connection with trade receivables). At June 30, 2014, the maximum amount exposed to credit risk is the carrying amount of trade receivables shown in Note 6. Credit risk in the Company's operating activities is managed based on specific rules for the acceptance of customers, credit analysis and the establishment of exposure limits per customer, which limits are periodically reviewed. Overdue receivables are followed up swiftly to ensure their realization. Liquidity risk The Company monitors the risk of shortages of funds, managing its capital through a recurring liquidity-planning tool, so that it has funds available for the fulfillment of its obligations, mainly concentrated in financing from financial institutions. The table below shows the maturity of the financial liabilities contracted by the Company and reported in the consolidated balance sheet, where amounts include principal and future interest to be levied on transactions, calculated using rates and indices prevailing at June 30, 2014: 2021 2014 2015 2016 2017 2018 2019 2020 onwards Total

Trade payables (1,227,436) - - - - - - - (1,227,436) Financing/ debentures (619,270) (1,450,431) (1,128,280) (1,389,956) (1,251,192) (1,246,349) (1,426,941) (1,324,471) (9,836,890)

Total (1,846,706) (1,450,431) (1,128,280) (1,389,956) (1,251,192) (1,246,349) (1,426,941) (1,324,471) (11,064,326)

The budget projection approved by the Board of Directors shows that the Company has the ability to meet these obligations as they materialize. Capital management The Company's capital structure comprises net debt, consisting of borrowings (Note 14) and debentures (Note 15) less cash and cash equivalents and securities (Notes 4 and 5), and equity, including the balance of issued capital and all the constituted reserves.


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The Company's net indebtedness ratio is comprised as follows:

Consolidated 6/30/2014 12/31/2013

Cash and cash equivalents and securities 5,522,378 2,979,383 Borrowings, financing and debentures (8,346,435) (6,963,597) Net indebtedness (2,824,057) (3,984,214) Equity 7,434,756 5,392,667 Net indebtedness ratio (0.38) (0.74)

b) Financial instruments by category The Company has the following financial instruments by category:

Consolidated 6/30/2014 12/31/2013

Assets - loans and receivables . Cash and cash equivalents 5,051,041 2,729,872 . Trade receivables, net of provision for impairment of trade receivables 1,026,780 1,145,154 . Other assets 344,989 348,000

6,422,810 4,223,026 Assets - available for sale . Marketable securities 471,337 249,511

471,337 249,511 Liabilities - at amortized cost . Borrowings, financing and debentures 8,346,435 6,963,597 . Trade payables 1,227,436 345,384 . Other payables 712,211 712,893

10,286,082 8,021,874 Loans and receivables and other financial liabilities at amortized cost The financial instruments included in this group refer to balances arising from usual transactions involving trade receivables, trade payables, borrowings, financial investments and cash and cash equivalents. All of them are recorded at their notional amounts plus, when applicable, contractual charges and interest rates, of which the related income and expenses are recognized in profit (loss) for the period. Available-for-sale financial assets The Company classifies the securities that comprise LFTs (Note 5) as financial assets held for trading, since they can be traded in the future and are recorded at the invested amount plus interest on the transaction. Due to the liquidity of these assets, their fair value approximates the amortized cost, not generating an effect on the Company's equity. The balance of these securities at June 30, 2014 in the consolidated balance sheet was R$ 471,337 (R$ 249,511 at December 31, 2013). c) Sensitivity analysis The Company presents below a sensitivity analysis of the foreign exchange and interest rate risks to which it is exposed, considering any effects that could impact on future results, based on the exposure at June 30, 2014. The effects on equity are basically the same as those on results.


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(i) Foreign exchange exposure The Company has assets and liabilities indexed to a foreign currency in the balance sheet at June 30, 2014 and, for sensitivity analysis purposes, it adopted as scenario I the future market rate in effect at the end of the reporting period. For scenarios II and III this rate was adjusted up by 25% and 50%, respectively. It is important to point out that most of the financing maturities will not occur in 2014 according to the maturity schedule shown in Note 14 and therefore exchange variations will not have an effect on cash. On the other hand, the Company's exports could be significantly affected by the exchange variation on cash during the year. The sensitivity analysis of the exchange variation is calculated on the net foreign exchange exposure (basically borrowings, trade receivables and trade payables in foreign currency), not considering the effect on the scenarios of projected export sales that, as previously mentioned, will offset any future exchange loss. Accordingly, the table below shows a simulation of the effect of exchange variation on the results for the next 12 months, if all other variables remain constant:

At 6/30/2014 Scenario I Scenario II Scenario III US$ Rate R$ gain (loss) Rate R$ gain (loss) Rate R$ gain (loss)

Assets Cash and cash equivalents 120,403 2.35 17,759 2.94 88,797 3.53 159,835 Trade receivables, net of

provision for impairment of trade receivables

170,889 2.35 25,206 2.94 126,031 3.53 226,855

Other assets and liabilities

108,435 2.35 15,994 2.94 79,971 3.53 143,947

Financing

(2,100,602) 2.35 (309,839) 2.94 (1,549,194) 3.53 (2,788,549) Net effect on finance result (250,880) (1,254,395) (2,257,912)

(ii) Interest rate exposure Financial investments and financing, except that subject to TJLP and LIBOR, are subject to the CDI floating interest rate. For sensitivity analysis purposes, the Company adopted the rates prevailing at dates close to the reporting dates, using the same rate for SELIC, LIBOR, IPCA and CDI due to their similarity in the scenario I projection. For scenarios II and III these rates were adjusted up by 25% and 50%, respectively. Accordingly, the table below shows a simulation of the effect of interest rate variation on the results for the next 12 months:

At 6/30/2014 Scenario I Scenario II Scenario III

R$ Rate R$ gain (loss)

Rate R$ gain

(loss) Rate R$ gain

(loss) Financial investments CDBs CDI 4,664,929 11.00% - 13.75% 128,286 16.50% 256,571 LFTs SELIC 471,337 11.00% - 13.75% 12,962 16.50% 25,924 Financing Export credit notes (R$) CDI (819,896) 11.00% - 13.75% (22,547) 16.50% (45,094) BNDES TJLP (1,291,352) 5.00% - 6.25% (16,142) 7.50% (32,284)


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At 6/30/2014 Scenario I Scenario II Scenario III

R$ Rate R$ gain (loss) Rate R$ gain

(loss) Rate R$ gain

(loss) Debentures IPCA (799,992) 6.44% 640 8.05% (12,240) 9.66% (25,120) Export prepayment LIBOR (3,361,483) 0.34% (259) 0.42% (3,079) 0.50% (5,899) Net effect on finance result 381 87,240 174,098

26 EMPLOYEE BENEFITS AND PENSION PLAN The Company and its subsidiaries grant their employees life insurance, healthcare and pension plan benefits. These benefits are recognized on an accrual basis and their granting is discontinued at the end of the employment relationship. a) Private pension plan Klabin S.A.'s pension plan - the Prever Plan, administered by Itaú Vida e Previdência S.A. - was established in 1986 as a defined benefit plan. In 1998, the plan was restructured to become a defined contribution plan. In November 2001 a new pension plan, Plano de Aposentadoria Complementar Klabin (PACK) (a complementary pension plan), was established; it is administered by Bradesco Vida e Previdência S.A. and structured as a Free Benefit Generating Plan (PGBL). The participants in the Prever Plan were offered the option to migrate to the new plan. In neither plan does the Company assume any responsibility for guaranteeing minimum benefit levels for retiring participants. b) Healthcare Under the agreement entered into with the Union of the São Paulo State Pulp and Paper Workers, the Company pays for a lifetime healthcare plan (Hospital SEPACO, main plan) for former employees who retired up until 2001, as well as for their dependents (until they reach the age of majority) and spouses. New beneficiaries are not allowed. The Company understands that this healthcare benefit is considered a defined benefit plan in accordance with accounting practices adopted in Brazil and, for this reason, had made provision for the estimated actuarial liability in the amount of R$ 57,328 at June 30, 2014 (R$ 57,328 at December 31, 2013), in non-current liabilities, under "Other payables and provision". In the actuarial valuation, the following economic and biometric assumptions were utilized: nominal discount rate of 12.25% p.a.; nominal growth rate of variable medical costs starting at 15.9% p.a. in 2014 and decreasing to 9.4% p.a. in 2027; long-term inflation of 5.4% p.a.; and biometric mortality table RP-2000. Actuarial restatements are maintained in equity in the group "Carrying value adjustments (comprehensive income (loss))", as required by CPC 33 (R1) - Employee benefits. An increase or decrease of one percentage point in the rates used in the actuarial calculations would not have a material effect on the Company's quarterly information.


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This plan does not have assets for disclosure. c) Other employee benefits The Company grants to its employees the following benefits: health care; day nursery reimbursement; assistance to parents with children with special needs; discounts in drugstores; school supplies; dental care plan; private pension plan and life insurance, in addition to the benefits established by law (meal vouchers, transportation vouchers, profit sharing and food purchase vouchers). Moreover, the Company has an organizational development program for its employees. For the six-month period ended June 30, 2014, expenditure on training programs totaled R$ 2,860 (R$ 2,388 for the six-month period ended June 30, 2013). All these benefits are recognized on an accrual basis and are discontinued at the end of the employment relationship with the Company. 27 INSURANCE COVERAGE At June 30, 2014, the Company had insurance against fire, lightning, explosions, electrical damage and windstorms for its industrial and administrative facilities and inventory. The Company also has insurance coverage for general civil liability, responsibility of directors and officers, auto damage, and multiperil risks for its chattels, amounting to R$ 2,897,797. In view of the nature of its activities, the distribution of forests in different areas, and the preventive measures adopted against fire and other forest risks, the Company has decided to not contract insurance against damage caused to forests, opting for the adoption of protection policies that, historically, have proven to be highly effective and have not impaired the Company's activities or financial position. Accordingly, Management understands that its financial risk management structure in relation to forest activities is appropriate to ensure its continuance as a going concern. 28 EVENTS AFTER THE REPORTING PERIOD a) Issue of bonds (notes) As disclosed to the market on July 10 through the "Communication to the Market" published on that date, the Company, through its wholly-owned subsidiary Klabin Finance S.A. issued notes representing debt (Notes) on the international market that were listed on the Luxembourg Securities Exchange (Euro MTF). The Notes amountsto USD 500 million, maturing within ten years, with a coupon of 5.25% paid semi-annually, of the Senior Notes 144A/Reg S type. The raising of funds was concluded on July 16, 2014, for the purpose of financing the Company and its subsidiaries' activities within the normal course of business in accordance with their business objectives. Notes issued by the subsidiary Klabin Finance S.A. are secured by the Company.

* * *

(A free translation of the original in Portuguese) (Unaudited) Quarterly information (ITR) - 6/30/2014 - KLABIN S.A. Version: 1 Other information considered relevant by the Company

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1 DISCLOSURE OF EBITDA

Pursuant to CVM instruction 527/12, the Company adhered to the voluntary disclosure of non-financial information as additional information included in its quarterly information, presenting Earnings before Interest, Tax, Depreciation and Amortization (EBITDA), for the three- and six-month periods ended June 30, 2013 and 2012. In general terms, EBITDA represents the Company's operational generation of cash, corresponding to the funds generated by the Company through its operating activities only, without taking into consideration financial effects or taxes. It is important to note that this does not represent the cash flows for the periods presented, and it must not be considered as a basis for the distribution of dividends, an alternative to profit, or an indication of liquidity. Consolidated From 4/1 to From 1/1 to From 4/1 to From 1/1 to 6/30/2014 6/30/2014 6/30/2013 6/30/2013

(=) Profit for the period 243,518 850,692 (129,825) 71,729 (+) Income tax and social contribution 95,890 420,562 (79,298) 1,929

(+/-) Finance result, net (137,519) (303,286) 418,196 401,242

(+) Amortization, depreciation and depletion in the result 257,832 434,383 163,258 336,324

EBITDA 459,721 1,402,351 372,331 811,224 Adjustment in conformity with CVM Instruction 527/12 (+/-) Change in fair value of biological assets (i) (129,604) (651,676) (70,267) (131,876) (+/-) Equity in the results of investees (ii) (5,807) (11,349) (1,365) (2,188) (+/-) EBITDA of a jointly-controlled subsidiary (ii) 9,550 18,938 8,495 15,758 EBITDA - adjusted 333,860 758,264 309,194 692,918

Adjustments for definition of EBITDA - adjusted: (i) Change in fair value of biological assets The variation in the fair value of biological assets corresponds to the gains or losses obtained on the biological transformation of forestry products up to their allocation in conditions of use/sale during the formation cycle. Since expectations relating to the value of assets are reflected in the Company's results and fair value is calculated based on the assumptions included in the calculation of discounted cash flows, without cash effects on its recognition, the variation of fair value is excluded from the calculation of EBITDA. (ii) Equity in the results and EBITDA of a jointly-controlled subsidiary In the Company's statement of operations, equity in the results of investees reflects the profit (loss) of a subsidiary in the parent company's financial statements, calculated in accordance with its percentage of participation in the investment. In the consolidated statement of operations, the equity in the results of investees recorded relates to the jointly-controlled subsidiary. The profit (loss) of the jointly-controlled subsidiary is influenced by items that are excluded from the EBITDA calculation, such as net finance result, income tax and social contribution, and the amortization, depreciation and depletion of, and variation in the fair value of biological assets. For this reason, the result of the equity in the profit (loss) of the subsidiary is excluded from the calculation, the EBITDA generated by the jointly-controlled subsidiary being calculated in the same manner, in proportion to the Company's participation in the entity.


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2 COMPANY'S OWNERSHIP INTEREST BY STOCKHOLDERS WITH MORE THAN 5% OF THE SHARES, DETAILED INDIVIDUALLY In the presentation of the amount of shares described below, for the whole period, the Company considered the stock split approved at the meeting held on March 20, 2014, establishing the division of each Unit share into five of the same class and type. a) Company's ownership interest

SHARES

STOCKHOLDER ON % PN % TOTAL %

Klabin Irmãos & Cia. 941,837,080 53.25 - - 941,837,080 19.91

Niblak Participações S.A. 142,023,010 8.03 - - 142,023,010 3.00

Monteiro Aranha S.A. (i) 69,678,889 3.94 278,715,556 9.41 348,394,445 7.37 The Bank Of New York ADR Department (*) - - 279,311,875 9.43 279,311,875 5.91 BNDES Participações S.A. BNDESPAR 79,647,040 4.50 313,588,160 10.76 398,235,200 8.42

Treasury shares 29,787,050 1.68 119,148,200 4.02 148,935,250 3.15

Other (**) 505,796,890 28.60 1,965,255,785 66.39 2,471,052,675 52.25

TOTAL 1,768,769,959 100.00 2,961,019,576 100.00 4,729,789,535 100.00

(*) Foreign stockholders.

(**) Stockholders with less than 5% of the shares. b) Distribution of the controlling stockholders' share capital at the individual level

CONTROLLING STOCKHOLDER/INVESTOR:

KLABIN IRMÃOS & CIA. QUOTAS

QUOTAHOLDERS Number % of capital

Jacob Klabin Lafer Adm. Partic. S.A. 1 12.52

Miguel Lafer Participações S.A. 1 6.26

VFV Participações S.A. 1 6.26

PRESH S.A. 1 12.52

GL Holdings S.A. 1 12.52

GLIMDAS Participações S.A. 1 11.07

DARO Participações S.A. 1 11.07

DAWOJOBE Participações S.A. 1 11.07

ESLI Participações S.A. 1 8.36

LKL Participações S.A. 1 8.35

TOTAL 10 100.00

General partnership, with capital of R$ 1,000,000.00, comprising quotas of different values.


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Jacob Klabin Lafer Adm. Partic. S.A.

SHARES

STOCKHOLDER ON % Total

Miguel Lafer 215,059,063 50.00

Vera Lafer 215,059,063 50.00

TOTAL 430,118,126 100.00 CONTROLLING STOCKHOLDER/INVESTOR:

Miguel Lafer Participações S.A.

SHARES


Miguel Lafer 223,510,726 99.9999

Vera Lafer 344 0.0001

TOTAL 223,511,070 100.0000 CONTROLLING STOCKHOLDER/INVESTOR:

VFV Participações S.A.

SHARES


Vera Lafer 981,094,312 99.9999

Other 688 0.0001

TOTAL 981,095,000 100.0000

CONTROLLING STOCKHOLDER/INVESTOR: PRESH S.A.

SHARES


Sylvia Lafer Piva - - 17,658,895 99.99993 17,658,895 66.66662

Pedro Franco Piva - - 12 0.00007 12 0.00005

Horácio Lafer Piva 2,943,151 33.33 - - 2,943,151 11.11111

Eduardo Lafer Piva 2,943,151 33.33 - - 2,943,151 11.11111

Regina Piva Coelho Magalhães 2,943,151 33.34 - - 2,943,151 11.11111

TOTAL 8,829,453 100.00 17,658,907 100.00000 26,488,360 100.00000 CONTROLLING STOCKHOLDER/INVESTOR:

GL Holdings S.A.

SHARES


Graziela Lafer Galvão 4,233,864 99.99991 8,467,726 99.99993 12,701,590 99.99992

Other 4 0.00009 6 0.00007 10 0.00008

TOTAL 4,233,868 100.00000 8,467,732 100.00000 12,701,600 100.00000


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GLIMDAS Participações S.A.

SHARES


Israel Klabin - - 1,287,625 90.0520 1,287,625 38.198

Alberto Klabin (*) 323,502 16.6664 23,707 1.6580 347,209 10.300

Leonardo Klabin (*) 323,502 16.6664 23,707 1.6580 347,209 10.300 Stela Klabin (*) 323,502 16.6664 23,707 1.6580 347,209 10.300 Maria Klabin (*) 323,502 16.6664 23,707 1.6580 347,209 10.300 Dan Klabin (*) 323,502 16.6664 23,707 1.6580 347,209 10.300 Gabriel Klabin (*) 323,502 16.6664 23,707 1.6580 347,209 10.300 Estate of Maurício Klabin (*) 32 0.0017 - - 32 0.001

TOTAL 1,941,044 100.0000 1,429,867 100.0000 3,370,911 100.0000 (*) Shares subject to right of use, with the beneficiary, Israel Klabin, having voting rights.


DARO Participações S.A. SHARES


Daniel Miguel Klabin 1,627,732 53.065

Rose Klabin (*) 479,900 15.645

Amanda Klabin (*) 479,900 15.645

David Klabin (*) 479,900 15.645

TOTAL 3,067,432 100.000 (*) Shares subject to right of use, with the beneficiary, Daniel Miguel Klabin, having voting rights.


DAWOJOBE Participações S.A. SHARES

STOCKHOLDER ON %

Armando Klabin 4 0.20

Wolff Klabin (*) 516 24.95

Daniela Klabin (*) 516 24.95

Bernardo Klabin (*) 516 24.95

José Klabin (*) 516 24.95

TOTAL 2,068 100.00 (*) Shares subject to right of use, with the beneficiary, Armando Klabin, having voting rights.


ESLI Participações S.A. SHARES


Cristina Levine Martins Xavier 5,891,253 33.3333

Regina Klabin Xavier 5,891,253 33.3333

Roberto Klabin Martins Xavier 5,891,254 33.3334

TOTAL 17,673,760 100.0000


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CONTROLLING STOCKHOLDER/INVESTOR: LKL Participações S.A. SHARES

STOCKHOLDER ON % Total Cristina Levine Martins Xavier 5,977,833 33.3333 Regina Klabin Xavier 5,977,833 33.3333 Roberto Klabin Martins Xavier 5,977,834 33.3334 TOTAL 17,933,500 100.000

CONTROLLING STOCKHOLDER/INVESTOR: NIBLAK PARTICIPAÇÕES S.A. SHARES

STOCKHOLDER ON % Total Miguel Lafer Part. S.A. 3,038,036 12.521 VFV Participações S.A. 3,038,035 12.521 GL Holdings S.A. 3,038,061 12.521 Glimdas Participações S.A. 2,686,869 11.074 Daro Participações S.A. 2,686,869 11.074 Dawojobe Partic. S.A. 2,562,686 10.562 Armando Klabin 124,183 0.511 Esli Participações S.A. 4,050,722 16.695 Pedro Franco Piva 3,038,061 12.521 TOTAL 24,263,522 100.000

3 CHANGES IN OWNERSHIP STRUCTURE

In the presentation of the amount of shares described below, for the whole period, the Company considered the stock split approved at the meeting held on March 20, 2014, establishing the division of each Unit share into five of the same class and type.

STOCKHOLDER Type

June 30, 2013 Changes June 30, 2014 Number of

shares % Purchase

subscription Sale New

members Withdrawal of members

Corporate changes*

Number of quotas %

Change %

Stockholders ON 1,010,532,275 64 428.441 (1,064,492) - - 55,833,282 - 60 5 PN 547,626,955 18 20,779,479 (18,181,363) - - (55,833,282) 499,068,105 17 (9) Members of the Board of ON 164,218,090 10 8,841,220 - - - (77,261,160) 95,798,150 5 (42) Directors PN 40,778,580 1 9,527,600 (17,929,390) - - 77,261,160 109,637,950 4 169 Members of the ON - - - - - - 2,582,600 2,582,600 0 - Executive Board PN 9,622,690 0 3,290,310 - - - (2,582,600) 10,330,400 0 7 Members of the Supervisory ON 5.000 0 - - - - 1.050 6.050 0 21 Board PN 42.600 0 - (20.250) - - (1.050) 21.300 0 (50) Treasury ON - - - - - - 29,692,500 29,692,500 2 - Shares PN 153,945,000 5 - (5,467,250) - - (29,692,500) 118,785,250 4 (23) Other ON 409,382,450 26 (9,269,661) 1,064,492 - - (10,848,272) 574,961,153 33 40 Stockholders PN 2,252,262,840 75 (33,597,389) 41,598,253 (2,796,405) - 10,848,272 2,291,655,366 77 1 Total ON 1,584,137,815 100 - - - - - 703,040,453 100 12 PN 3,004,278,665 100 - - - - - 3,029,498,371 100 (1)


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4 NUMBER OF COMPANY SHARES DIRECTLY OR INDIRECTLY HELD BY CONTROLLING STOCKHOLDERS AND MEMBERS OF THE BOARD OF DIRECTORS, EXECUTIVE BOARD AND STATUTORY AUDIT BOARD, AND NUMBER OF SHARES OUTSTANDING

In the presentation of the amount of shares described below, for the whole period, the Company considered the stock split approved at the meeting held on March 20, 2014, establishing the division of each Unit share into five of the same class and type.

6/30/2014 SHARES STOCKHOLDER ON PN Total

Stockholders 1,065,729,506 60.25 494,391,789 16.70 1,560,121,295 32.99 Members of the Board of Directors 95,798,150 5.42 109,637,950 3.70 205,436,100 4.34 Members of the Executive Board 2,582,600 0.15 10,330,400 0.35 12,913,000 0.27 Members of the Supervisory Board 6.050 0.00 21.300 0.00 27.350 0.00 Treasury Shares 29,692,500 1.68 118,785,250 4.01 148,477,750 3.14 Other Stockholders 574,961,153 32.51 2,227,852,887 75.24 2,802,814,040 59.26

Total 1,768,769,959 100.00 2,961,019,576 100.00 4,729,789,535 100.00 Number of shares outstanding 574,961,153 32.51 2,227,852,887 75.24 2,802,814,040 59.26

6/30/2013 SHARES STOCKHOLDER ON PN Total

Stockholders 1,010,532,275 63.79 547,626,955 18.23 1,558,159,230 33.96 Members of the Board of Directors 164,218,090 10.37 40,778,580 1.36 204,996,670 4.47 Members of the Executive Board 9,622,690 0.32 9,622,690 0.21 Members of the Supervisory Board 5.000 0.00 42.600 0.00 47.600 0.00 Treasury Shares 153,945,000 5.12 153,945,000 3.36 Other Stockholders 409,382,450 25.84 2,252,262,840 74.97 2,661,645,290 58.01

Total 1,584,137,815 100.00 3,004,278,665 100.00 4,588,416,480 100.00 Number of shares outstanding 409,387,450 25.84 2,252,305,440 74.97 2,661,692,890 58.01

5 OTHER INFORMATION

Relationship with independent auditors In conformity with CVM Instruction 381/03, the auditing firm PricewaterhouseCoopers Auditores Independentes did not provide services not relating to the external audit fees for which exceeded 5% of its total fees. The Company's policy on contracting services not relating to an external audit from its independent auditors is based on principles that preserve the independence of these professionals. These principles, which follow internationally accepted guidelines, consist of the following: (a) the auditor must not audit his/her own work, (b) the auditor must not perform managerial functions for his/her client, and (c) the auditor must not promote the interests of his/her clients.


Opinions and representations / report on special review - without exceptions

Page 94 of 95

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 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - 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.


Opinions and representations / report on special review - without exceptions


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, 2014. 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

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