Earnings Release 2Q11

08.02.2011

2Q11 highlights

Larger maintenance stoppage at Monte Alegre mill; Exchange rate: leading to lower exports revenue; Diversification of Klabin's coated board lines offsets the weaker market in Brazil; The stronger Brazilian real has not directly affected imports of packaging paper, but an increase in the imports of packaged goods has been observed; Sales strategy: higher selectivity aiming for batter margins.

Sales

Sales volume (excluding wood) (thousand tonnes) 873

36%

Net revenue (R$ milliion) 1,904 1,750

24% 23%

863
34%

435
34% 66%

438
39% 61%

430
30% 64% 70% 66%

947
22% 78%

957
26% 74%

905
21% 79% 76% 77%

2Q11

1Q11

2Q10

6M11
Export Market

6M10

2Q11

1Q11

2Q10

6M11 Export Market

6M10

Domestic Market Total

Domestic Market Total

Does not include wood

Includes wood

Unit cash cost (R$ / tonne)

Cash Cost (R$ / tonne)

12%

Cash cost without stoppage effects (R$ / tonne)

8% 8% 2%
1,742 1,616 1,557 1,645 1,616 1,527

2Q11

1Q11

2Q10

2Q11

1Q11

2Q10

EBITDA e Net income

500 450 400

EBITDA and EBITDA margin

(R$ million)

35%

Net income
(R$ milliion)

30%

26%
350 300 250 200 150 100

26%

25%

20% 249 190 236

20%

163
15%

140

10%

67
5%

50 0%

2Q11

1Q11

2Q10

2Q11

1Q11

2Q10

Net debt

5,500

Net Debt / EBITDA (R$ million) 4.4 3.7 3.6 3.1

3,192 2,886

4,500

3,500

2.8 2.2 2.2

2,128

2.1

2.0

2,676

2,528

2,462

2,500

1,500

500

(500)

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0

2,106

2,002

Net Debt (R$ million)

Net Debt / EBITDA (LTM)

1,893

Capex

R$ million Forestry Papers Conversion Others Total

2Q11 30 51 12 93

1Q11 37 74 4 115

2Q10 27 49 17 93

6M11 67 125 16 1 209

6M10 53 62 23 1 139

Cost reduction projects at the paper mills in Parana and Santa Catarina; Production capacity growth at the conversion mills (corrugated boxes and industrial bags); Capex for 2011: around R$ 500 million.

RI
invest@klabin.com.br