Earnings Release 1Q12 EBITDA of R 311 million in 1Q12, R$ up 25% from 1Q11

Klabin's consolidated financial statements are presented in accordance with International Financial Reporting Standards (IFRS), as determined by CVM Instructions determined 457/07 and 485/10. The information related to Vale do Corisco is not consolidated in the Financial Statements. It is only presented through the equity income method. Statements.

R$ million
Sales volume - thousand tonnes % Domestic Market Net Revenue % Domestic Market Operational Result (EBIT) EBITDA Adjusted EBITDA Adjusted EBITDA Margin Net Income Net Debt Net Debt / EBITDA (LTM) Capex*

1Q12
420 65% 969 76% 632 311 311 32% 459 2,674 2.3 x 94

4Q11
432 66% 994 77% 270 359 319 32% 122 2,735 2.5 x 578

1Q11
438 61% 957 74% 203 249 249 26% 140 2,002 2.1 x 116

1Q12/4Q11 -3% -1 p.p. -2% -1 p.p. 134% -13% -3% 0 p.p. 275% -2%

1Q12/1Q11 -4% 4 p.p. 1% 2 p.p. 211% 25% 25% 6 p.p. 227% 34%

-84%

-19%

LTM - last twelve months Note: Due to rounding, some figures in tables and graphs may not result in a precise sum.

1Q12 Highlights
Share of domestic sales volume reached at 65%, compared to 61% in 1Q11; Net revenue of R$ 969 million, up 1% on 1Q11; Unit cash cost, excluding non-recurring events, was stable in relation to 4Q11; recurring EBITDA of R$ 311 million in 1Q12, with margin of 32%, 25% higher than in 1Q11, despite in a challenging market environment; Net Debt/EBITDA ratio which was 2.5x in December 31 , 2011 fell to 2,3x in March 31 , 2012; Payment of complementary dividends amounting to R$ 80 million on April 23 , 2012.
rd st st

Conference call Friday, 04/27/12, 10:00 a.m. (EST) US Participants: 1-888-700-0802 BR Participants: +55 11 4688-6331 Password: Klabin [Link]/klabin/english

Contact IR +55 11 3046 55 3046-8401 [Link]/ir invest@[Link]

IR Team Antonio Sergio Alfano Vinicius Campos Daniel Rosolen Lucia Reis Mariana Arajo

KLBN4 March 31st, 2012 Preferred shares Stock price Daily trading vol. 1Q Market cap 600.9 million R$ 8.44 R$ 25 million R$ 7.5 billion

Results 1Q12 Markets and Exchange Rate

April 26th, 2012

In the first three months of 2012, the international scenario did not change significantly, with volatility in the European economies, slowdown of growth in China and in the emerging economies, and lackluster performance of the U.S. market. In Brazil, the seasonal effect of the year-end holiday season in January and February resulted in an even slower pace of economic activity than in the closing months of 2011. Amid this unfavorable and challenging scenario, Klabin continued to concentrate its efforts on operating performance and, consequently, on increasing margins and return on assets. The quarterly results have once again confirmed the success of this strategy.

Domestic Market
The weaker performance of the Brazilian economy during the period led to a revision of the GDP growth estimates for 2012. The lower share of the industrial production indicator among the GDP components also raised concerns. During the quarter, was announced by the government a series of measures to boost consumption, including the extension of the IPI tax holiday on certain white goods, new financing lines from the Brazilian Development Bank (BNDES), reduction in interest rates to consumers by government banks, and continued cuts in the basic interest (SELIC) rate. Nevertheless those measures did not impact the Brazilian packaging market during the first quarter. According to the Brazilian Corrugated Boxes Association (ABPO), the countrys corrugated box shipments grew 1.5% in 1Q12 over 1Q11. Brazilian shipments totaled 771 thousand tonnes, versus 760 thousand tonnes in the same period last year. According to the Brazilian Pulp and Paper Producers Association (Bracelpa), domestic coated board sales (excluding liquid packaging boards) increased 5% from the same period in 2011 and reached 125 thousand tonnes.
Brazilian Coated Boards Shipments thousand tonnes
125

Brazilian Corrugated Shipments thousand tonnes

760 771

119

1Q11
Source: ABPO

1Q12

1Q11
Source: Bracelpa

1Q12

Export Market
The export market too was unfavorable in the quarter, with uncertainties surrounding the economic situation in Europe, growth below estimates in China and a slow recovery in the U.S., all of which directly reflected on the packaging paper market.

Results 1Q12

April 26th, 2012

International kraftliner prices continue to contract during the quarter. According to data published by FOEX, average kraftliner list price in Europe fell 6% in relation to the 4Q11, to an average price of 519/t. The average list price in Brazilian real was R$ 1,202/t in 1Q12, 10% down from 4Q11. Though kraftliner prices declined during the course of 1Q12, they started showing signs of recovery in late March and April, with higher prices in Europe and a reversal of the FOEX list price trends.
Kraftliner brown 175 g/m list price (/tonne and R$/tonne)
1,373 1,202

602

519

1Q11

1Q12

Kraftliner ( / t)
Source: FOEX

Kraftliner (R$ / t)

Exchange Rate
The foreign exchange rate, which closed at R$ 1.88/US$ on December 31 , 2011, fell by 3% in 1Q12 to R$ 1.82/US$ at the end of March. The average exchange rate in 1Q12 was R$ 1.77/US$, down 2% from 4Q11 and up 6% from 1Q11.
1Q12 4Q11 1Q11
1Q12/4Q11

st

1Q12/1Q11

Average Rate End Rate

Source: Bacen

1.77 1.82

1.80 1.88

1.67 1.63

-2% -3%

6% 12%

Operating and Financial Performance

Sales volume
Sales volume in 1Q12, excluding wood, totaled 420 thousand tonnes, down 4% from 1Q11. In the domestic market, sales volume grew 2% from 1Q11 to 273 thousand tonnes. As the international prices fell to lower levels, Klabins strategy was to reduce exports in order to avoid losing margins. Export volume came to 147 thousand tonnes in the quarter, down 13% from 1Q11. As a result, the share of domestic sales volume reached 65% in 1Q12, which is atypical for a first quarter that is historically lower.

Results 1Q12
In 1Q12, the breakdown of exports by region remained in line with 1Q11.
Sales Volume (excluding wood) (thousand tonnes)
438

April 26th, 2012

420 35%
34%

432 35%

420

39%

61%

65%

66%

65%

1Q11

1Q12

4Q11

1Q12

Domestic Market

Export Market

Sales Volume by Product 1Q12

Sales Volume Export Market 1Q12 North America 3%

Ind. Bags 8%

Others 2%

Africa 8%

Kraftliner 23%

Coated Boards 39%

Europe 17%

Latin America 44%

Corrugated Boxes 28%

does not include wood

Asia 28%

Net Revenue
Net revenue, including wood sales, totaled R$ 969 million in 1Q12, up 1% from 1Q11, despite the 4% reduction in sales volume, which confirms that the Company conducted its business appropriately in a scenario of low global prices, reflecting its strategy to pursue higher margins. Pro forma net revenue, considering Klabins proportional revenue from Companhia Florestal Vale do Corisco, totaled R$ 980 million. Net revenue in the domestic market was R$ 737 million, 4% more than in 1Q11, corresponding to 76% of total net revenue, 2 p.p. more than in 1Q11. Exports came to R$ 233 million (US$ 131 million) in 1Q12, down 5% from 1Q11, due to the lower kraftliner and coated boards sales. Compared to 4Q11, revenue from exports remained stable.

Results 1Q12

April 26th, 2012

Latin America was the region least affected by Klabins reduced exports, accounting for 45% of the net revenue in the quarter. Europe absorbed 14% of exports in 1Q12, down from 17% in 1Q11.
Net Revenue (R$ million)
957 26% 24% 969
994 969 24%

23%

74%

76%

77%

76%

34

1Q11

1Q12

4Q11

1Q12

Domestic Market

Export Market

Net Revenue by Product 1Q12

Net Revenue Export Market 1Q12 North America 3%

Ind. Bags 12%

Wood 7%

Others 1%

Africa 6% Europe 14%

Coated boards 36% Kraftliner 14%

Latin America 45%

Corrugated Boards 30%

includes wood

Asia 32%

Operational Costs and Expenses

Unit cash cost, including fixed and variable costs and operating expenses, and excluding non-recurring items, stood at R$ 1,566/t in 1Q12, stable from 4Q11. In relation to 1Q11, unit cash cost fell 2%, despite the impact of inflation on the cash cost's components between periods and the increase in labor costs due to the wage increase in October. This drop is result of the sustainable reduction in costs implemented over the course of 2011. The efforts to lower the fixed costs were first implemented at the Monte Alegre mill and will focus on the forestry unit and the paper production mills in Santa Catarina in 2012. In addition, variable costs also dropped, reflecting the high-yield

Results 1Q12

April 26th, 2012

investments in new equipment to reduce electricity acquisition costs and fuel oil consumption, and to improve operating efficiency. Cost of goods sold in 1Q12 came to R$ 628 million, down 12% on 1Q11 or 7% excluding the effects of the biological assets depletion booked in the periods. COGS were also impacted by the lower sales volume. Selling expenses amounted to R$ 80 million, down 7% from 1Q11, mainly due to non-recurring items that impacted 1Q11. General and administrative expenses was R$ 60 million and increased by 8% from 1Q11, chiefly due to the higher personnel expenses after the wage increase in October. Compared to 4Q11, G&A expenses contracted 18%, due to the additional provision for profit-sharing booked in the period on account of the better-than-expected results in 2011. Other operating revenues (expenses) resulted in an expense of R$ 4 million in the quarter, with no nonrecurring impact.

Effect of variations in the fair value of biological assets

The effect of the variation in the fair value of biological assets was a gain of R$ 435 million in 1Q12, due to the annual change in the Companys WACC, used to calculate the present value of lands and forests. The depletion of the fair value of biological assets on COGS generated an impact of R$ 45 million in the quarter, influenced by the difference in prices and in the depleted wood mix in the period. As a result, the non-cash effect of the fair value of biological assets on operating income (EBIT) was a gain of R$ 390 million in 1Q12.

Operating Income
Operating income before financial result (EBIT) was R$ 632 million in 1Q12.

Operating cash flow (EBITDA)

1Q12/4Q11 235% N/A 26% N/A 2 2 359 (40) 311 32% 319 32% 249 26% 249 (108) N/A 178% -13% N/A -3% 0 p.p.

R$ million
Operational result (after financial result) (+) Financial result (+) Depreciation, amortization, depletion (-) Equity Pickup (-) Biological assets adjustment (+) Vale do Corisco EBITDA (-) Sale of assets Adjusted EBITDA Adjusted EBITDA Margin
N / A - Not applicable

1Q12
689 (54) 108 (4) (435) 6 311

4Q11
206 64 85

1Q11
228 (25) 154

1Q12/1Q11 202% 118% -30% N/A 303% N/A 25% N/A 25% 6 p.p.

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

Despite the unfavorable economic scenario, with the market affected by seasonal factors, the Company registered consistent improvement in its results. Operating cash flow (EBITDA) was R$ 311 million in the quarter, 25% more than in the same period last year. EBITDA margin stood at 32%, up 6 p.p. on 1Q11 and stable in relation to 4Q11.

Results 1Q12

April 26th, 2012

EBITDA in 1Q12 was positively impacted by the booking of EBITDA of R$ 6 million from the sale of wood of Florestal Vale do Corisco Ltda. The sustainable EBITDA growth in the period once again reflected the improved performance resulting from the implementation of the cost reduction program and the pursuit of higher margins from product sales in 2011, whose results was observed since 3Q11.
R$ million Pro forma Net Revenue EBITDA Adjusted EBITDA* Adjusted EBITDA Margin
*Excluding gain from the sale of assets Pro forma Net Revenue includes Vale do Corisco

1Q10 844 242 242 29%

2Q10 905 236 236 26%

3Q10 983 252 252 26%

4Q10 931 231 231 25%

1Q11 957 249 249 26%

2Q11 947 190 190 20%

3Q11 991 277 269 27%

4Q11 998 359 319 32%

1Q12 980 311 311 32%

Indebtedness and financial investments

5.500 6,0 5,5 5,0 4.500 3.1 4,5 4,0 3.500 2.8 2.2 2.500
2,528 2,462 2,106 2,128 2,313 2,002

Net Debt / EBIDA (R$ million)

3,5 2.2 2.1 2.4 2.0

2,735

2.5

2.3
2,674

3,0 2,5 2,0 1,5 1,0 0,5 0,0 -0,5 -1,0 -1,5 -2,0

1.500

500
Sep-10 Mar-10 Mar-11 Sep-11 Mar-12 Dec-10 Dec-11 Jun-10 Jun-11

(500)

Net Debt (R$ million)

1,893

Net Debt / EBITDA (LTM)

Consolidated net debt stood at R$ 2,674 million, compared to R$ 2,735 million on December 31 , 2011, influenced by the exchange rate variation in the period. The net debt/EBITDA ratio fell from 2.5x at the end of 2011 to 2.3x in 1Q12. Gross debt stood at R$ 5,606 million on March 31 , 2012, compared to R$ 5,297 million on December 31 , 2011. Of the total debt, R$ 4,008 million (US$ 2,200 million), or 71%, was denominated in foreign currency, primarily export pre-payment facilities. Cash and financial investments stood at R$ 2,932 million on March 31 . This amount exceeds the amortizations of loans coming due in the next 39 months. At the end of March 2012, the net foreign exchange exposure was US$ 2,009 million, of which US$ 2,200 million corresponded to export pre-payment facilities with average term of over 4 years and assets in foreign currency of US$ 191 million. The average debt term stood at 45 months, with 32 months for local currency debt and 50 months for foreign currency debt. At the end of March, short-term debt represented 18% of total debt, and the average debt cost in local and foreign currency stood at 8.0% p.a. and 4.2% p.a., respectively.
st st st

st

Results 1Q12
Debt (R$ million)
Short term Local currency Foreign currency Long term Local currency Foreign currency Gross debt Local currency total Foreign currency total (-) Cash Net debt Net debt / EBITDA (LTM)
LTM - last twelve months

April 26th, 2012

03/31/12
1,014 365 649 4,592 1,233 3,359 5,606 1,598 4,008 2,932 2,674 2.3 x 18% 7% 12% 82% 22% 60% 100% 29% 71%

12/31/11
910 373 537 4,387 1,295 3,092 5,297 1,668 3,629 2,562 2,735 2.5 x 17% 7% 10% 83% 24% 58% 100% 31% 69%

Financial Result
Financial expenses totaled R$ 89 million in 1Q12, down 13% from 1Q11. Financial revenues amounted to R$ 68 million in the quarter, remaining stable compared to the same period last year. Net foreign exchange variations resulted in a gain of R$ 75 million in 1Q12, reflecting the impact of the dollars depreciation on the Companys balance sheet in the quarter. Thus, the financial result in 1Q12 was a gain of R$ 54 million. Excluding the effect of net foreign exchange variations, the financial result in 1Q12 was a loss of R$ 21 million, versus a loss of R$ 34 million in 1Q11.

Net Income
Net income in 1Q12 came to R$ 459 million. Beside the facts that impacted EBITDA, net income in the quarter was affected by the higher variation in the fair value of biological assets and the depreciation of the dollar, which impacted debt denominated in foreign currency.

Business Performance
Consolidated information by business unit in 1Q12.

R$ million Net revenue Domestic market Exports Third part revenue Segments revenue Total net revenue Change in fair value - biological assets Cost of goods sold Gross income Operating expenses Operating results before financial results
Note: In this table, total net revenue includes sales of other products.

Forestry

Papers

Conversion

Consolidation adjustments (351) (351) 346 (5) (5) (10)

Total

75 75 127 202 435 (180) 457 (16) 441

269 205 474 218 692 (446) 246 (73) 173

392 28 420 6 426 (348) 78 (47) 31

736 233 969 969 435 (628) 776 (141) 635

Results 1Q12 BUSINESS UNIT FORESTRY

thousand tonnes Wood R$ million Wood 71 64 68 1Q12 719 4Q11 663 1Q11 737

April 26th, 2012

1Q12/4Q11

1Q12/1Q11

8% 11%

-2% 4%

Demand for wood in Brazil fell during the period. The average quarterly Construction Confidence Index (ICST) stood at 129 points, down 7% from 139 points in 1Q11. Wood log sales to third parties in 1Q12 was 2% lower than in 1Q11 and stood at 719 thousand tonnes. Nonetheless, net revenue from log sales in 1Q12 was R$ 71 million, up 4% from 1Q11. The Company continues to invest in optimizing its logistics processes and in improving the efficiency and productivity of its forestry areas. As planned, the company has already started to reverse outsourcing in the harvesting process at Angatuba, which is already producing results. In addition, since the beginning of 2012 the Company is focusing in the cost reduction in the forestry areas of Paran and Santa Catarina, giving continuity to its strategy of improving performance.

BUSINESS UNIT PAPER

thousand tonnes Kraftliner DM Kraftliner EM Kraftliner Coated boards DM Coated boards EM Coated boards Total Paper R$ million Kraftliner Coated boards Total Paper 1Q12 32 62 94 88 77 165 259 117 347 464 4Q11 32 69 101 96 69 165 266 135 345 480 1Q11 32 79 111 84 84 168 279 141 332 473 1Q12/4Q11 2% -11% -7% -8% 12% 0% -2% -13% 1% -3% 1Q12/1Q11 0% -21% -15% 5% -8% -2% -7% -17% 5% -2%

Kraftliner
International kraftliner prices maintained the downward trend in the quarter, reaching their lowest level in March 2012. However, global producers announced price increases last month, pointing to a reversal of the trend observed last year. Klabin recorded a 15% drop in sales volume from 1Q11, while net revenue fell 17%, which shows that the average price swing was quite little, despite the drop in international list prices of 14% in Euros. This fact is explained by the better sales selectiveness. Domestic sales volume remained strong at 32 thousand tonnes, stable in comparison with 1Q11. On the external front, the Company scaled down its exports, thus avoiding sales at low prices. As a result, exports in 1Q12 totaled 62 thousand tonnes.

Results 1Q12
Coated boards

April 26th, 2012

According to Bracelpa, domestic demand for coated boards in 1Q12, excluding liquid packaging boards, increased 5% in relation to 1Q11. Klabins domestic coated board sales also grew 5% in the same period, showing that the Company accompanied market growth. The 4 thousand tonnes increase in domestic sales volume was offset by reduced exports. Consequently, total coated board sales volume was 165 thousand tonnes in 1Q12, slightly below the 1Q11 figure. Net revenue from coated board sales totaled R$ 347 million in the quarter, up 5% from 1Q11, with a higher share of sales directed to markets with higher margins. The flexibility of Klabins coated board line was again fundamental to the positive result of the commercial during the quarter.

BUSINESS UNIT - CONVERSION

thousand tonnes Corrugated boxes Industrial bags Total Conversion R$ million Corrugated boxes Industrial bags Total Conversion 1Q12 118 34 152 287 132 419 4Q11 123 35 158 304 130 434 1Q11 121 33 153 288 116 404 1Q12/4Q11 -4% -2% -4% -6% 2% -4% 1Q12/1Q11 -2% 4% -1% 0% 14% 4%

Corrugated boxes
The corrugated boxes market remained stable in the first quarter of the year, and preliminary data from ABPO pointed to 1.5% growth in Brazilian shipments of boxes and boards compared with 1Q11. Corrugated box sales came to 118 thousand tonnes in 1Q12, 2% lower than in the same period last year. Nonetheless, net revenue remained stable in the period, totaling R$ 287 million in 1Q12. The Company continues to invest in technology to improve the quality of its paper production and to boost production capacity. Last year, two new corrugators were acquired. The first, with capacity of 72 thousand tonnes, became operational in September 2011 at the Goiana mill (PE), and the second, with capacity of 100 thousand tonnes, is slated for start-up in June. The new corrugators will more than compensate the shutting down of Del Castilho (RJ) mill and other less productive equipments.

Industrial Bags
In 1Q12, the Company moved forward in its strategy implemented in 2011, of adopting a selective approach in the sale of industrial bags. This strategy intended to diversify the client base to optimize its sales mix in the domestic and export markets, reducing its presence in the cement market and entering new sectors with better margins. Industrial bag sales in Brazil and Argentina, in the domestic and export markets totaled 34 thousand tonnes in 1Q12, while net revenue totaled R$ 132 million. Volumes grew 4% over 1Q11 while, net revenue grew 14%. Despite the seasonality of the period, rainfall in the beginning of the year which impacted cement sales, and the holidays and carnival seasons, which resulted in a lower number of business days, the unit registered excellent performance. The substantial gain in relation to 1Q11 further evidences the benefits of the Companys strategy one year after its implementation.

10

Results 1Q12 Capital Expenditure

R$ million Forestry Maintenance Special Projects Other Total 1Q12 20 42 28 4 94

April 26th, 2012

Investments came to R$ 94 million in 1Q12, of which 45% was allocated to the continuity of operations at the mills, 30% to special projects to increase corrugation capacity and reduce costs, and 21% to the forestry unit. The biomass boiler at the Correa Pinto mill is in the final testing phase and its start-up was brought forward to May 2012. As a result, fuel oil consumption at the unit should begin to drop in

the same month. Debottlenecking at the Monte Alegre unit, which will boost bleached pulp production capacity, should be concluded in October 2012 and will also reduce variable costs. A corrugator is being installed at the Jundia-DI (SP) mill, with production capacity of 100 thousand tonnes, which is scheduled to start up in the end of 2Q12. In addition, a new complete line was acquired for the production of bags, which is expected to arrive this year-end. The Forestry Business Unit is investing in the mechanization of soil preparation through the acquisition of new large machines.

Capital Markets
Stock Performance
During the three months, Klabins preferred shares (KLBN4) appreciated by 5%, while the Ibovespa index gained 14%. Klabins shares were traded in all sessions of BM&FBovespa in 1Q12, registering 340 thousand trades involving 188 million shares, for an average daily trading volume of R$ 25 million, 95% than in the same quarter in 2011 and 15% higher than in 4Q11. Klabin's capital stock is represented by 918 million shares, consisting of 317 million common shares and 601 million preferred shares. Klabins shares are also traded in the U.S. market as Level I ADRs listed in the over-thecounter market under the ticker KLBAY.
Performance KLBN4 x Brazilian Index (Ibovespa) Average Daily Volume (R$ million/day)
24 19

32

24 21 139 17 14 13 12 16 12 11 13 14 21

100

97

Feb11

Jul11

Aug11

Mar11

Sep11

Dec11

Feb12

Jan11

Oct11

Apr11

Jun11

Jan12

May11

Aug11

Mar11

Sep11

May11

Klabin

Ibovespa Index

Dec11

Nov11

Mar12

11

Nov11

Mar12

Jul11

Feb12

Apr11

Oct11

Jun11

Jan12

Results 1Q12
Annual Shareholders Meeting

April 26th, 2012

The General Ordinary Shareholders Meeting held on April 3 , 2012 elected the members of the Board of Directors and Fiscal Council, including the representative of the Companys preferred shareholders. The Meeting established the total annual management and Fiscal Council compensation at up to R$ 30 million for fiscal year 2012.

rd

Dividends
The Annual Shareholders Meeting held on April 3 , 2012 approved the payment of complementary dividends for fiscal year 2011 of R$ 84.78 per lot of thousand common shares and R$ 93.26 per lot of thousand preferred shares, totaling R$ 80 million. With this, total dividends relating to fiscal year 2011 came to R$ 217 million.
rd

New independent audit company

In April 10th, the Company announced to the market the hiring of PricewaterhouseCoopers ("PwC") to conduct independent external audit of the Company and its subsidiaries as a result of the process of rotation of auditors every period of 5 years. PwC started its activities from the review of the quarterly financial statements ("ITRs") of the first quarter of 2012 fiscal year.

12

Results 1Q12 Conference Call

Portuguese
Friday, April 27 , 2012 at 10:00 a.m. (Braslia). Password: Klabin Dial-in: (11) 4688-6331 Replay: +55 (11) 46886312 Code: 1390340# Webcast: [Link]/klabin
th

April 26th, 2012

English
Friday, April 27 , 2012 at 10:00 a.m. (EST). Password: Klabin Dial-in: U.S. participants: 1-888-700-0802 International participants: 1-786-924-6977 Brazilian participants: (55 11) 4688-6331 Replay: (55 11) 46886312 Password: 7296992# Webcast: [Link]/klabin/english
th

With gross revenue of R$ 4.7 billion in 2011, Klabin is the largest integrated manufacturer, exporter and recycler of packaging paper in Brazil, with annual production capacity of 1.9 million tonnes. Klabin has adopted a strategic focus on the following businesses: paper and coated boards for packaging, corrugated boxes, industrial bags and wood logs. Klabin is the leader in all its market segments.

The statements made in this earnings release concerning the Company's business prospects, projected operating and financial results and potential growth are merely projections and were based on Management's expectations regarding the Company's future. These expectations are highly susceptible to changes in the market, the general economic performance of the Brazilian economy, industry and international markets, and therefore are subject to change.

13

Results 1Q12

April 26th, 2012

Appendix 1 Consolidated Income Statement (R$ thousands)

1Q12
Gross Revenue Net Revenue Change in fair value - biological assets Cost of Products Sold Gross Profit Selling Expenses General & Administrative Expenses Other Revenues (Expenses) Total Operating Expenses Operating Income (before Fin. Results) Equity pickup Financial Expenses Financial Revenues Net Foreign Exchange Losses Net Financial Revenues Net Income before Taxes Income Tax and Soc. Contrib. Net income Depreciation and amortization Change in fair value of biological assets Vale do Corisco EBITDA 1.165.117 969.241 434.606 (628.038) 775.809 (80.128) (59.565) (4.358) (144.051) 631.758 3.586 (89.152) 68.130 75.146 54.124 689.468 (230.950) 458.518 107.845 (434.606) 6.369 311.366

4Q11
1.197.225 994.076 (1.569) (613.922) 378.585 (82.059) (73.038) 46.676 (108.421) 270.164 (429) (96.303) 74.333 (42.229) (64.199) 205.536 (83.105) 122.431 85.433 1.569 2.295 359.461

1Q11
1.144.430 957.005 107.807 (711.334) 353.478 (85.750) (55.341) (9.124) (150.215) 203.263

1Q12/4Q11 -3% -2% N/A 2% 105% -2% -18% N/A 33% 134% N/A

1Q12/1Q11 2% 1% 303% -12% 119% -7% 8% -52% -4% 211% N/A -13% -1% 28% 118% 202% 163% 227% -30% 303% N/A 25%

(102.700) 68.753 58.728 24.781 228.044 (87.842) 140.202 153.894 (107.807)

-7% -8% N/A N/A 235% 178% 275% 26% N/A 178%

249.350

-13%

14 14

Results 1Q12

April 26th, 2012

Appendix 2 Consolidated Balance Sheet (R$ thousands)

Assets
Current Assets Cash and banks Short-term investments Securities Receivables Inventories Recoverble taxes and contributions Other receivables

Mar-12
4.407.879 34.146 2.671.322 226.864 814.916 521.218 64.825 74.588

Dec-12
4.083.482 87.342 2.253.722 221.260 821.148 506.218 100.619 93.173

Liabilities and Stockholders' Equity

Current Liabilities Loans and financing Suppliers Income tax and social contribution Taxes payable Salaries and payroll charges REFIS reserve Other accounts payable Noncurrent Liabilities Loans and financing Deferred income tax and social contribution Other accounts payable - Investors SCPs Other accounts payable StockholdersEquity Capital Revaluation reserve Profit reserve Valuation adjustments to shareholders'equity Treasury stock Total

Mar-12
1.867.782 1.013.784 204.801 30.032 42.108 81.656 427.786 67.615 6.220.330 4.592.672 1.258.742 205.978 162.938 5.407.086 2.271.500 50.513 2.151.238 1.083.313 (149.478) 13.495.198

Dec-12
1.932.606 910.497 335.045 56.852 40.426 103.121 430.213 56.452 5.850.687 4.386.839 1.101.160 200.014 162.674 4.958.302 2.271.500 50.691 1.692.542 1.085.045 (141.476) 12.741.595

Noncurrent Assets Long term Taxes to compensate Judicial Deposits Other receivables Other investments Property, plant & equipment, net Biological assets Intangible assets

9.087.319 134.398 108.651 164.521 622.113 4.934.806 3.114.549 8.281

8.658.113 136.752 102.457 160.923 618.029 4.917.083 2.715.769 7.100

Total

13.495.198

12.741.595

15 15

Results 1Q12

April 26th, 2012

Appendix 3 Loan Maturity Schedule March 31st, 2012

R$ million 2Q12 108 1 108 112 3 6 121 229
R$ Million
1,359
Local Currency Foreign Currency Gross Debt

3Q12 85 0 85 87 2 22 111 196

4Q12 90 0 90 272 2 9 284 374

1Q13 82 0 82 98 2 32 133 215

9M13 257 1 259 432 7 39 478 737

2014 332 5 337 395 8 68 471 808

2015 366 15 381 339 8 68 416 796

2016 87 8 95 164 5 133 302 397

2017 32 12 45 386 5 61 452 496

2018 Forward 86 32 118 954 27 260 1,241 1,359

Total 1,524 75 1,598 3,240 70 697 4,008 5,606

BNDES
Others Local Currency

Trade Finance Fixed Assets

Others Foreign Currency Gross Debt

Average Cost
8.0 % p.y. 4.2 % p.y.

Average Tenor
32 months 50 months 45 months

737
471

808

796

1.241

Foreign Currency 4,008 Gross Debt 5,606

416

374 229
121 108 2Q12 111 85 3Q12 90 4Q12

478

496 397
302 95 452 45 2016 2017 118 2018 Forward

196

284

215
133 82 1Q13 9M13 2014 2015 259 337 381

Local Currency 1,598

16 16

Results 1Q12

April 26th, 2012

Appendix 4 Consolidated Cash Flow Statement (R$ thousands)

1Q12 Cash flow from operating activities Operating activities . Net income . Depreciation and amortization . Depletion in biological assets . Change in fair value - biolgical assets . Equity results . Results on Equity Pickup . Deferred income taxes and social contribution .Income taxes and social contribution . Interest and exchange variation on loans and financing . Interest Payment . REFIS Reserve . Others Variations in Assets and Liabilities . Receivables . Inventories . Recoverable taxes . Marketable Securities . Prepaid expenses . Other receivables . Suppliers . Taxes and payable . Salaries, vacation and payroll charges . Other payables Net Cash Investing Activities . Purchase of property, plant and equipment . Cust biological assets planting (ex taxes) . Income of assets sale . Sale of property, plant and equipment Net Cash Financing Activities . New loans and financing . Loan amortization . Minority shareholders entrance . Minority shareholders exit . Stocks repurchase Increase (Decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 54,784 107,088 458,518 51,985 55,860 (434,606) 618 (3,586) 157,671 (93,444) (13,388) (68,871) 8,897 (12,566) (52,304) 5,893 (13,567) 131,592 (5,604) 5,865 2,928 (150,691) (25,138) (21,465) 17,883 (73,037) (51,106) (21,467) 34 (498) 382,657 656,231 (264,852) (720) (8,002) 364,404 2,341,064 2,705,468 1Q11 151,564 127,187 140,202 57,890 96,004 (107,807) (1,460) 37,125 (56,422) (2,903) (67,320) 23,842 8,036 24,377 (21,037) (15,318) 99,350 (5,243) 6,469 (1,077) 2,436 (26,571) (28,639) 14,007 (113,603) (83,342) (32,137) 1,876 (134,193) 1,336 (147,312) 12,507 (724) (96,232) 2,531,105 2,434,873

17