Institutional Presentation 2010

March, 2011

Forward Looking Statement

The statements contained in this presentation related to the business outlook, operating and financial projections, and growth prospects of Klabin S.A. are merely projections, and as such are based exclusively on the expectations of the Companys management concerning the future of the business.

These forward-looking statements depend substantially on the market conditions, the performance of the Brazilian economy, the industry and international markets, and therefore are subject to change without prior notice.

This presentation on Klabins performance includes non-accounting and accounting data, such as operating and financial information, as well as projections based on Managements expectations. Note that the non-accounting data has not been reviewed by the Companys independent auditors.

The Companys management believes EBITDA may provide useful information on the Companys operating performance and allow for comparisons with other companies in the same industry. Note however that EBITDA is not a measure established in accordance with generally accepted accounting principles of the International Financial Reporting Standards IFRS, and may be defined and calculated differently by other companies.

History
Advanced on the packaging segment, producing corrugated Launched Klabin and Lafer families founded Klabin Irmos & Cia. production of newsprint and packaging paper boxes, bags and envelopes and became the major pulp, paper and paper products producer in Latin America Sale of non core assets and focus on packaging Start up MA 1100

1899
A company in the office supplies trading and printing businesses

1934

1947

1979
Professional management

2000

2003

2008

2011
February New CEO

Founded Klabin do Parana, the first integrated pulp and paper mill in Brazil

Acquisition of Igaras Papis e Embalagens

Shareholder Structure
02/28/2011

Common
Monteiro Aranha ; 20%

Preferred
Treasury; 4% Foreign Investors; 30%
Klabin Irmos ; 59%

Brazilian Investors ; 21%

BNDES; 17%

Brazilian Investors; 49%

316,827,563 shares

600,855,733 shares

KLBN4
Daily trading evolution
Average daily trading volume
R$ million/day
2 2 ,0

17 ,3 15 ,4 14 ,2 14 ,1 13 ,9 13 ,3 11,9 10 ,0 8 ,6 9 ,2 8 ,3 8 ,1 6 ,6

Jan/10

Mar/10

May/10

Dec/10

Sep/10

Apr/10

Aug/10

Jan/11

Jun/10

Feb/10

Nov/10

Feb/11

Jul/10

Oct/10

Corporate Governance
Joined BM&FBOVESPAs level 1 of Corporate Governance Tag along rights of 70% for preferred shares

Global Scale Corporate Credit Rating BB+ National Scale Brazil Rating brAA+

Level 1 ADRs program trading on OTCQX since March, 2010

Compensations for members of the Executive Board are linked to metrics that take into account the opportunity cost of investments

Adopted insider trading policy for securities issued by the company and strict separation of Board of Directors and Executive Board Code of conduct adopted by all employees of the Company

A company 100% integrated

TOTAL LANDS 458 thousand ha
Eucalyptus

212 thousand ha planted

+ +

OCC
Pine 250 thousand

WOOD

PULP 1.7 million tonnes

Softwood

tonnes CTMP

Hardwood

3.0 million tonnes

PAPER 1.9 million tonnes

Coated board 710 K tonnes

Sack kraft 160 K tonnes

Kraftliner 800 K tonnes

Recycled 200 K tonnes *

COATED BOARDS

INDUSTRIAL BAGS

KRAFTLINER

CORRUGATED BOXES

Notes: All figures refer to installed production capacity. Production of paper packages generates 100 thousand tpy of edge trim, which returns to the process. * Does not includes 50 thousand tonnes per year from Ponte Nova Mill, that is temporarily closed. CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container

Company profile
1,716 thousand tonnes and R$ 3.7 billion in 2010
Forestry Paper Conversion

Wood logs Volume Net revenue N/A 7%

Kraftliner 22% 13%

Coated boards 38% 34%

Corrugated boxes Industrial Bags 30% 31% 8% 13%

LPB

FBB

CB

Notes: In 2010, 2% of sales volume was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board

Businesses and Markets

Klabins Presence

Forestry Alto Paranapanema (SP) Planalto Catarinense (SC) Campos Gerais (PR)

Ports Suape (RN) Santos(SP) Paranagu (PR) Itaja (SC) So Francisco do Sul (SC)

Industrial Bags Lages (SC) Pilar (Argentina) Goiana (PE) Recycled Papers Goiana (PE) Guapimirim (RJ) Piracicaba (SP)

Corrugated packages Goiana (PE) Feira de Santana (BA) Betim (MG) Del Castilho (RJ) Jundia (SP) Piracicaba (SP) Itaja (SC) So Leopoldo (RS) Papers Angatuba (SP) Correia Pinto (SC) Otaclio Costa (SC) Telmaco Borba (PR)

ARGENTINA

URUGUAI

10

Business Units
Forestry

Papers

Conversion

11

Forest
Forestry Base
Thousand ha Forests 02/28/2011 Planted Forests Eucalyptus Pine Native preserved forests Total Lands
Paran 143 65 78 123 303 Santa Catarina 64 7 57 63 140 3 9 3 7 So Paulo 5 5 Mato Grosso do Sul

Total 212 77 135 192 458

Average Hauling Distance Paran Santa Catarina Correia Pinto Otaclio Costa So Paulo

Km 48

76 66 100

12

Forest
Competitive advantage

Average Productivity (m3/ha/year) 02/28/2011 Paran Santa Catarina So Paulo

Pine 39 42 -

Eucalyptus 50 27 34

Softwood - Rotation (years) Klabin South Africa Chile Australia USA Sweden
0 20 40 60 80

Hardw ood - Rotation (years) Klabin 7 9 11 13 37 37 0 10 20 30 40

20 25 25 35 45 100
100

South Africa Chile Portugal Sw eden Finland

Source: Pyry

13

Yield evolution
Eucalyptus
50 41 35 26

Forest
m / (ha * year)

55

Until 1973

1974 - 1985

1986 - 2005

2006 - 2008

2009 - 2011

Pine
36 24 39 42 46

Until 1969

1970 - 1989

1990 - 2004

2005 - 2008

2009 - 2011

14

Wood
Sales volume, net revenue and housing starts
Sales volume (thousand tonnes) Net revenue (R$ million)

+65%
3.113

+65%
260

1.892

158

536

682

854

817

761

42

53

69

72

66

4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010

4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010

Housing starts thousand units

1.151 1.053 1.025 868 658 528 540 587 559 617 602 589 538

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

Quarter average Source: US Census Bureau

Housing starts

15

Coated Boards
Coated boards grades

Liquid Packaging Board (LPB)

Folding Box Board

Carrier Board

16

Coated Boards
Sales volume, net revenue and exports
Sales volume (thousand tonnes) Net revenue (R$ million)

+24% 656
531
46% 40%

+26%
1.247

988

158
42% 58%

163
47% 53%

165
49% 51%

171
46% 54%

158
43% 57%

60%

54%

277

304

307

331

306

4Q09 1Q10 2Q10 3Q10 4Q10 2009 Domestic Market Exports

2010

4Q09 1Q10 2Q10 3Q10 4Q10 2009 2010

Export Destinations 2010

Africa; 6% Asia; 11% Latin America; 30%

Europe; 25% North America; 28%

17

Coated Boards
FBB virgin fibers cost competitiveness
Average Cash Cost (FOB) and List Price Evolution
Jan/07 Apr/07 Jul/07 Oct/07 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09 Oct/09 Jan/10 Apr/10 Jul/10 Oct/10 Jan/11
1,179

1,102

1,124 1,081

List price (US$/tonne)

1,014 970

1,047

765 Production cash cost (US$/tonne) 588 507 414

Others Labor Energy Chemical Fibers

784

717

532

Others

United States

Klabin MA

Sweden

Canada

Poland

Chile

Finland

Brazil

8 million tonnes

16 million tonnes

Notes: List Price North America (US$/tonne). Source: RISI Index List Price - * 20Pt. Clay-Coated Unbleached Folding Cartonboard. Average cash cost FOB (US$/tonne). Source: RISI Analytical Cornerstone 2Q10

18

Coated Boards
Global production
MeadWestvaco Stora Enso International Paper Graphic Packaging Korsnas Klabin M Real Iggesund Potlatch Georgia Pacific 0 500 1.000 1.500 2.000 2.500 3.000 (Thousand tonnes)

6th largest producer of virgin fiber coated boards

Liquid Packaging Board

Folding Box Board

Carrier Board

Solid Bleached Sulphate

Korsnas Stora Enso Klabin International Paper MeadWestvaco Potlatch 0 500 1.000 1.500 2.000 (Thousand tonnes)

3rd largest supplier of Tetra Pak

Source: Pyry, 2008

19

Liquid packaging board

UHT Milk Consumption
World
UHT Milk Consumption versus total milk consumption Country France Spain Brazil Germany Italy Market Share 95% 94% 75% 65% 61% Country Canada USA UK Japan South Korea Market Share 9% 10% 11% 12% 24%

Brazil
UHT milk consumption versus total milk consumption (million litters)
6.660 5.080 3.615 4.353 3.600 3.100 1.700 730 5.230 5.700 4.220 5.993 5.050 4.403 5.308 7.103 7.042

5.252

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Total milk consumption

Source: ABLV (Brazilian Association of UHT Milk) and Tetrapak December, 2009

UHT milk consumption

20

Folding box board

Market share evolution and boards composition
Market share in the domestic market
(excluding LPB)

2007 2008 2009 2010

13% 18% 25% 27%

87% 82% 75% 73%

504 Kt 508 Kt 507 Kt 576 Kt

Klabin
Source: Bracelpa, 2010

Others
87 82 75

Coated boards composition

Triple layer coating Kraft pulp bleached, short fiber Kraft pulp short/long fiber mix + CTMP Kraft pulp long fiber Starch
21

Kraftliner
Sales volume, net revenue and OCC price
Sales volume (thousand tonnes) 393
-6%

Net revenue (R$ million)

+21%

367 385

466

78%

60%

109
65% 35%

110
74% 26%

85
47% 53%

85
48% 52%

88
67% 33% 40% 22%

106

117

104

122

124

4Q09

1Q10

2Q10

3Q10

4Q10

2009
Exports

2010

4Q09

1Q10

2Q10

3Q10

4Q10

2009

2010

Domestic Market

B razilian O C C d elivered p rice R$ / tonne

495 401 346 355 317 255 240 256 216 383 380 518 465 493

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

3Q 09

4Q 09

1Q 10

2Q 10

3Q 1 0

4Q 10 1T 1 1

S o urc e : B ra ce lp a

Q u a rte r a ve ra g e

M o n th ly vo lu me

22

Kraftliner Exports
Cash cost and list price
Average Cash Cost (FOB) and List Price Evolution

Jan07 Apr07 Jul07 Oc t07 Jan08 Apr08 Jul08 Oc t08 Jan09 Apr09 Jul09 Oc t09 Jan10 Apr10 Jul10 Oc t10 Jan11
797

List price (US$/tonne)

798

719 634 713

679

Production cash cost (US$/tonne)

610 547

504 441 385 335 299

Others Labor Energy Chemicals Fibers

362

capacity

Klabin MA Poland

United States

South Africa

ustria Germany

Sweden

Spain

Others Europe

Canada

Russia

France

Portugal

Finland

Brazil

17 million tonnes

34 million tonnes

Notes: Most of US production includes recycled paper. List Price Europe (US$/tonne). Source: FOEX Kraftliner Brown 175 g/m. Average cash cost FOB (US$/tonne). Source: RISI Analytical Cornerstone 2Q10.

23

Corrugated Boxes
Sales volume, net revenue and consumption distribution
Sales volume (thousand tonnes)
+12%
512 457 946

Net revenue (R$ million)

+22%
1.157

124

119

135

132

126

256

249

290

314

304

4Q09

1Q10

2Q10

3Q10

4Q10

2009

2010

4Q09

1Q10

2Q10

3Q10

4Q10

2009

2010

Consumption distribution - 2010

Others 21% Food 38%

Corrugated Boards 15% Tobaccos 2% Beverages 4% Fruits & Poultry floriculture 5% 6% Source: ABPO (Brazilian Association of Corrugated Boxes)

Chemical 8%

24

Corrugated Boxes
Brazilian shipments

Brazilian Corrugated Shipments thousand tonnes

218 214 209 197 185 181 184 168 183 197 198 201 216

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1/11

Quarter average

Monthly volume

Source: ABPO (Brazilian Association of Corrugated Boxes)

25

Industrial Bags
Sales volume, net revenue and cement consumption
Sales volume (thousand tonnes) Net revenue (R$ million)
+10%
472 429 142 130

+9%

35

33

36

38

34

108

109

119

128

116

4Q09

1Q10

2Q10

3Q10

4Q10

2009

2010

4Q09

1Q10

2Q10

3Q10

4Q10

2009

2010

Brazilian cement consumption million tons

5,3 4,0 3,9 4,2 4,7 4,3 4,6 3,9 4,1 4,4 4,5 4,7 5,0

4Q07

1Q08

2Q08

3Q08

4Q08 1Q09 Quarter average

2Q09

3Q09 4Q09 1Q10 Monthly consumption

2Q10

3Q10

4Q10

Source: Nation Labor Union of Cement Industry

26

Industrial Bags
Export destinations and consumption per industries

Export Destinations 2010

North Others America 1% 3%

Consumption Main Industries 2010

M inerals O thers 2% C hemic als 1% 4% Seeds 6%

Food 11%

Latin America 96%

Building I ndus try 76%

Source: Klabin

27

Financial Performance

28

Financial Highlights

R$ million
Sales Volume - 1,000 t
% Domestic Market

4Q10 3Q10 4Q09

417
68%

4Q10/3Q10

4Q10/4Q09

2010
1.716
68%

2009
1.544
64%

2010/2009

436
71%

435
66%

-4%
-3 p.p.

-4%
2 p.p.

11%
4 p.p.

Net Revenue
% Domestic Market

931
78%

983
79%

805
78%

-5%
-1 p.p.

16%
0 p.p.

3.663
78%

2.960
76%

24%
2 p.p.

Operating Expenses Operating Income (EBIT) Financial Expenses Financial Income Net Income EBITDA
EBITDA Margin

118 315 (77) 33 225 231

25%

144 203 (74) 144 226 252

26%

109 53 (170) (75) (223) 219

27%

-18% 55% 4% -77% 0% -8%

-1 p.p.

8% 496% -55% -144% N/A 6%

-2 p.p.

521 821 (308) 51 560 962

26%

309 60 (390) 444 169 747

25%

69% N/A -21% -89% 232% 29%

1 p.p.

Ner Revenue (US$ mi) Exports (US$ mi)

Average Dollar
LTM - last twelve months

548 118
1,70
N/A - Non applicable

561 117
1,75

463 100
1,74

-2% 1%
-3%

18% 18%
-2%

2.081 462
1,76

1.488 358
1,99

40% 29%
-12%

29

Sales volume*
thousand tonnes
1,544
+11%

1,716

0%

555
32% 68%

554

989

36% 64%

1,161

+17%

2009
Domestic Market Exports

2010

(*) Excluding wood 30

Net Revenue*
R$ million
2,960
+24%

3,663

+14%

713 2,248
24% 76% 22% 78%

813 2,850

+27%

2009
Domestic Market Exports

2010

(*) Including wood 31

Exports destination 2010

Sales Volume Net Revenue

Africa North 6% America 5% Europe 15%

554 thousand tonnes

North America 6%

Africa 5%

Europe 17%

Latin America 45%

US$ 813 million

Latin America 44%

Asia 27%

Asia 30%

32

EBITDA
R$ million
1000 900
350 27% 300 250 22% 200 199 150 100 50 0 1Q09 2Q09 3Q09 4Q09 1Q10 EBITDA 2Q10 3Q10 4Q10 180 150 219 242 252 236 231 25% 27% 26% 26% 25% 29%

35% 962 30% 747 25% 26% 25%

800 30% 700 28%

26% 600 24% 500 22%

400 20%
18% 300 16% 200 14%

20%

15%

100 12%
10% 0

10% 2009 2010

EBITDA Margin

33

Cash Cost Composition

2010
Freights, 10%

Energy/Oil, 13%

Labor/Services, 30%

R$ 2,703 mi

Chemicals, 15%

Wood/Fibers, 16% Maint. Stopage/ Others; 16%

34

Unitary Cash Cost

R$/tonne
+10%

1,575 1,434
315 297 446 401

736

814

2009
Variable costs Fixed Costs

2010
SG&A

35

Indebtedness
Net Debt evolution
Net Debt R$ 2.1 billion Net Debt / EBITDA = 2.2x Average Maturity = 41 months Debt cost Local currency: 8.4 % p.y. Foreign currency: 3.8% p.y. + FX

Net Debt (R$ million)

6000 6

5.2
5000

5.3
5

4.7 4.4

4000

3.3
3000

3.5
3,766 3,786 3,192 2,867

3.7

3.6 3.1 2.8

2.8 2.4 2.0

2,096 1,851 1,476 1,278

2,886 2,676 2,528 2,462

2.2
2,106

2.2
2,129

2000

1.8

2,396

2,378

1000

0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Net Debt (R$ million)

Net Debt / EBITDA (LTM)

36

Loan Maturity Schedule

12/31/10
2,729

Current cash position cover next 40 months of debt maturities

R$ million

Cash and equivalents

841

788

845

460

684 504

255
2010 2011 2012 2013 2014 2015

310 167
2016 2017 2018/2022

Debt covered by the cash Non covered debt

37

Capex
R$ million
The Company invested R$ 386 million in 2010

1,674

Conversion/ Others 18%

Papers 47%

587 247 386

500
Forestry 35%

2007

2008

2009

2010

2011*

*Estimated for 2011 38

Dividend and Treasury Stocks

Dividends Payment
(R$ million)

Treasury Stocks

283 237 192

177 123

The Company has 27,2 million stocks in treasury

2006

2007

2008

2009

2010*

* R$ 57 million regarding 2009 39

Strategy

40

Sustainable development
Economically viable, socially just and environmentally correct.

Economic

En

vir on m

en ta l

l cia So

41

Evolution of forest productivity

Forest base for the new pulp mill

Yield of eucalyptus and pine

ADt / (ha x year)

21 16 14 11 12 10 13 14

2006 - 2008

2009 - 2011

2012 - 2014

from 2015

Eucalyptus

Pine

ADt Air dried tonne of pulp

42

Strategy
Short term Forestry
Planting of 20,000 hectares and forest maintenance: R$ 120 million; Harvesting system, machines and equipments : R$ 8 million.

Papers
Monte Alegre
High-voltage transmission line: R$ 60 million; Replacement of line 1 debarker: R$ 8 million.

Otaclio Costa
Biomass boiler: R$ 35 million; Technological update of evaporation line: R$ 35 million.

Correia Pinto
Acquisition of a new biomass boiler; Technological update of the recovery boiler: R$ 12 million
43

Strategy
Short term

Conversion
Corrugated Boxes
R$ 42 million investment in new printers, technological update of corrugators, material handling lines and the cargo unitization and palletization equipment; New R$ 98 million investment approved in October for acquisitions of new corrugator, a new printer, and technological updates.

Industrial Bags
New production line of multi-layered bags was acquired and will be installed at Lages plant in Santa Catarina, with startup expected in the first half of 2011.

44

Strategy
Long term
Capacity Expansion Construction of a global-scale pulp plant with 1.5 million tonnes per year capacity;

Evolution of production capacity

tonnes per year

1.9 million 2010

3.4 million 2015/2016

45

IR Team IR Team Phone: (11) 3046-8404 / 8415 / 8416 Phone: (11) 3046-8404 / 8415 / 8416 www.klabin.com.br www.klabin.com.br invest@klabin.com.br invest@klabin.com.br
46