Earnings 4Q11

03.02.2012

Highlights
4Q11
Net revenue of R$ 994 million, 7% higher than in 4Q10 and stable in relation to 3Q11; Unit cash cost, excluding non-recurring revenue, of R$ 1,561/t, down 3% from 3Q11, giving continuity to the cost reduction program; Adjusted EBITDA amounted to R$ 319 million, with margin of 32%; Sale of property at the Del Castilho Unit (RJ), with positive effect of R$ 40 million in cash generation; Acquisition of 51% interest in Vale do Corisco, increasing planted forests in Paran state by 31 thousand hectares.

2011
Net revenue of R$ 3.9 billion, up 6% from 2010; Adjusted EBITDA of R$ 1,028 million, the best result in the Companys history; Net income of R$ 183 million, negatively impacted by the non-cash foreign exchange variation in the second half of the year;

Highlights

Sales volume (excluding wood) (thousand tonnes) 1,739

34%

Net revenue (R$ milliion) 3,889

22%

1,716
32%

3,663
22%

78%

78%

432
34% 66%

434
29% 71%

417
32% 68%

66%

68%

994
23% 77%

991
19% 81%

931
22% 78%

4Q11

3Q11

4Q10

2011

2010 Total

4Q11

3Q11

4Q10

2011

2010

Domestic Market

Export Market

Domestic Market Total

Export Market

EBITDA and EBITDA margin (R$ million)

Net Income (R$ million)

560

225
1.077 36% 28% 359 277 25% 231 28% 962 26%

122

183

4Q11

3Q11 (243)

4Q10

2011

2010

4Q11

3Q11

4Q10

2011

2010

Unit cash cost (R$ / tonne)

Unit cash cost excluding non-recurring items (R$ / tonne) -6% -5% -3%

3.5%

1,659

1,645

1,612

1,561

1,548

1,603

4Q10

2Q11

3Q11

4Q11

2010

2011

Net debt

5,500

6.0

4,500

Net Debt / EBITDA LTM (R$ million)

3.6 3.1

5.5 5.0 4.5 4.0 3.5

3,500

2.8 2.2 2.2 2.1 2.0

2.4

2.5 2,735

2.3 2,536

3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0

2,676

2,528

2,500

2,462

2,106

2,128

2,002

1,500

500

(500)

Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Jan-12

LTM Last Twelve Months

1,893

2,313

Capex
R$ million Forestry Papers Conversion Others Subtotal Vale do Corisco Total 4Q11 44 66 39 1 150 428 578 3Q11 31 43 20 2 96 96 4Q10 49 52 34 2 138 138 2011 142 233 75 4 455 428 883 2010 133 181 68 3 386 386

New biomass boilers at Otaclio Costa mill and Correia Pinto mill; Debottlenecking of the evaporation system at Otaclio Costa mill, Santa Catarina state; New transmission line in Monte Alegre, Paran state; Two new corrugators at the corrugated boxes units in Goiana, Pernambuco state, and in Jundia, So Paulo state; New complete valve bag production line in Lages, Santa Catarina state; Acquisition of 51% interest in Vale do Corisco, increasing planted forests in Paran state by 31 thousand hectares.

Free Cash Flow

R$ million EBITDA CAPEX Sale of assets Working capital Taxes and social contribuition Cash flow Interests (net) Dividends Free cash flow

2011 1,077.3 (882.6) 45.8 52.6 (111.6) 181.5 33.3 (207.0) 7.8

2010 961.7 (385.5) 0.6 230.8 (36.0) 771.6 (36.5) (177.0) 558.1

2009 747.4 (246.7) 11.0 146.6 (8.1) 650.2 (137.1) (123.0) 390.1

Investor Relations

www.klabin.com.br/ir
invest@klabin.com.br