Institutional Presentation

2Q09

years old August 2009

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 in Brazil (Brazilian Corporate Law or BR GAAP) or with U.S. generally accepted accounting principles (US GAAP), and may be defined and calculated differently by other companies.

Shareholder Structure
06/30/2009
Family control + Professional management

Common
Monteiro Aranha ; 20%

Preferred
Treasury Stock; 3% Foreign Investors; 23%

Brazilian Investors ; 21%

Klabin Irmos; 59%

BNDES; 31%

Brazilian; Investors 43%

316,827,563 shares

600,855,733 shares Average daily trading volume R$ 7.1 million in 2Q09

IPO in 1979

Market Value of R$ 3 Bi

100% integrated
Lands 450 Kha

Eucalyptus 70 Kha

+
Pulp
NBSK

Pine 152 Kha

OCC 300 Kt

1.7 million t
BEKP and UEKP CTMP

Recycled paper 250 Kt

Wood Logs 2,5 mi t

Coated Boards 740 Kt

Sack Kraft 160 Kt

Kraftliner 800 Kt

Domestic

LPB

CB

FBB

Industrial bags 160 Kt

Exports 410 Kt

Domestic 90 Kt

Corrugated Boxes 540 Kt

Notes: All figures refer to installed production capacity NBSK Northern Bleached Softwood pulp / BEKP Bleached Eucalyptus Kraft Pulp / UEKP Unbleached eucalyptus Kraft Pulp CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container

Company profile
Net Revenue: R$ 3.0 billion in the last 12 months
Forestry
Wood logs Kraftliner

Paper
Coated boards

Packaging
Corrugated boxes

Bags
Industrial Bags

#1 in Brazil 5%

#1 in Brazil 14%

#1 in Brazil 32%

#1 in Brazil 31%

#1 in Brazil 14%

LPB

FBB

CB

#1 in Brazil

#2 in Brazil

#1 in Brazil

Notes: In the last 12 months, 2% of net revenue was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board

Klabins Presence
Forestry Alto Paranapanema (SP) Planalto Catarinense (SC) Campos Gerais (PR) Industrial Bags Lages (SC) Pilar (Argentina) Goiana (PE) Ports Suape (RN) Santos(SP) Paranagu (PR) Itaja (SC) So Francisco do Sul (SC)

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)

ARGENTINA

URUGUAI

Papers Angatuba (SP) Correia Pinto (SC) Otaclio Costa (SC) Telmaco Borba (PR)

Business and Markets

Wood
Housing starts, Sales Volume and Net Revenue

1.343 1.039 903 534

In 1H09, wood sales was 5% of the Net Revenue.

2,412

2,298 225 1,250 842 200 109 74

2007

2008

1H08

1H09

2007

2008

1H08

1H09

Sales Volume (1,000 tonnes)

US New Privately Owned Housing Units Started (monthly average - thousand units)

Net Revenue (R$ million)

Source: US Census Bureau

Forest
Forestry Base
Thousand ha Forests 07/31/2009 Planted Forests Eucalyptus Pine Native preserved forests
Paran 147 58 89 123 Santa Catarina 67 7 60 62 6 So Paulo 5 5

Total 219 70 149 191

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

Km 42

76 66 95

Forests
Competitive advantage
Average Productivity (m3/ha/year) 06/30/2009 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

Hardwood - Rotation (years)

20 25 25 35 45 100
100 120

Klabin South Africa Chile Portugal Sweden Finland

0 5

7 9 11 13 37 37 10 15 20 25 30 35 40

Source: Pyry

10

Coated Boards
Volume and Exports
Growth of sales volume with the Project MA 1100

Sales Volume (1,000 tonnes)

1H09 Export Destinations

Latin America; 12%

506

354
29%

43%

Asia; 17%
246
41%

Europe; 39%

238
42% 58%

71%

57% 59%

2007

2008

1H08

1H09

North America; 32%

Domestic Market

Export Market

11

Coated Boards
Net Revenue and Market Share
Market Share Coated Boards* (%) In 1H09, coated boards sales was 33% of the Net Revenue.
508 kt 430 kt
27 20

% 35

3 7 8 14

18

11 12

4%
935 695 447 463
30 18

32

2007

2008

1H08

1H09

1999

2008

Net Revenue (R$ million)

Source: Bracelpa (Brazilian Association of Pulp and Paper) * Excluding Liquid Packaging Board

Suzano Papirus Ibema Others

Ripasa Itapag

Klabin
12

Coated Boards
Global producers Annual production capacity
Klabin - 6th Largest Producer of Virgin Fiber Coated Boards
MeadWestvaco Stora Enso International Paper Graphic Packaging Korsnas/Frovi Klabin M Real Iggesund Potlatch Georgia Pacific
800 tpy 1.100 tpy 2.185 tpy 2.535 tpy

1.990 tpy

680 tpy

630 tpy

550 tpy

500 tpy

400 tpy

Liquid Packaging Board

Source: Pyry

Folding Box Board

Carrier Board

Solid Bleached Sulphate

13

Coated Boards
Global producers Annual production capacity
Klabin 3rd Largest Tetra Pak Supplier in 2009
Stora Enso Korsnas/Frovi Klabin International Paper
700 tpy

500 tpy

400 tpy

300 tpy

Potlatch 150 tpy MeadWestvaco 60 tpy Graphic Packaging M Real Iggesund

Liquid Packaging Board

Source: Pyry

Folding Box Board

Carrier Board

14

Coated Boards
FBB virgin fibers cost competitiveness
Average Cash Cost (FOB) and List Price Evolution
Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09

1,102

List price (US$/tonne)

970

1,014

1,047

1,081

671 578 489 Cash cost (US$/tonne) 365 330

Others Labor Energy Chemical

Fibers Sweden Swede Klabin USA Canada Others Others UK Finland Mexico Poland Brazil Chile Chili

8 million tonnes

17 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 1Q09

15

Kraftliner
Volume and Exports

Sales Volume (1,000 tonnes)

Export Destinations 1H09

Others; 14%

464

458

86%

80%

239 176
79% 86%

Africa ; 11%

Europe; 44%

14%

20%

21%

14%

2007

2008

1H08

1H09

Domestic Market

Export Market

Americas; 31%

16

Kraftliner
Net Revenue and Market Share
Brazilian Export Market Share 2008 (%) In 1H09, kraftliner sales was 13% of the Net Revenue.
3 2 3 4 7

Outros

3%

Orsa Cocelpa Irani Rigesa

-30%
529 545 262

81

Klabin

184

2007

2008

1H08

1H09

Net Revenue (R$ million)

Source: BRACELPA (Brazilian Association of Pulp and Paper)

17

Kraftliner Exports
Cash Cost and List Price
Average Cash Cost (FOB) and List Price Evolution
Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 jul/09

719

797

List price (US$/tonne)

634

679

548

358 Cash cost (US$/tonne) 272 236 285

Others Labor Energy Chemicals Fibers
capacity

305

North America

Poland

Klabin -

Others Latam

South Africa

Portugal

Brazil

Sweden

Austria

Russia

Others Europe

Norway

France

7.5 million tonnes

15 million tonnes

Notes: List Price Europe (US$/tonne). Source:Fibers Kraftliner Brown 175 g/m. Average Cash Cost FOB (US$/tonne). Source: RISI FOEX Chemicals Energy Labor Others Analytical Cornerstone 1Q09

18

Corrugated Boxes
Volume and Brazilian Consumption per Industries

Consumption Sales Volume (1,000 tonnes) Main Industries 2008

456

445

Others 31%

Food 35%

228

216

Textiles 3%

2007

2008

1H08

1H09

Tobacco 3% Health Care Beverages 9% 3% Cosmetics Fruits & 4% Poultry Floriculture 7% 5%

Source: ABPO (Brazilian Association of Corrugated Boxes)

19

Corrugated boxes
Net Revenue and Market Share
Market Share 2008 (%) In 1H09, corrugated boxes sales was 31% of the Net Revenue.

31

5%

3 3 4 4 6

Others Ibria INPA Adami So Roberto Penha

-5%
902 947 473

7 10

449

12

Trombini Orsa Rigesa

2007

2008

1H08

1H09

20

Klabin

Net Revenue (R$ million)

Source: ABPO (Brazilian Association of Corrugated Boxes)

20

Corrugated Boxes
Brazilian Shipments
1,000 tonnes
210

200

190

187
180

189

179
170

176 157

180

182 175

160

150

140 01/02 04/02 07/02 10/02 01/03 04/03 07/03 10/03 01/04 04/04 07/04 10/04 01/05 04/05 07/05 10/05 01/06 04/06 07/06 10/06 01/07 04/07 07/07 10/07 01/08 04/08 07/08 10/08 01/09 04/09

Shipments
Source: ABPO (Brazilian Association of Corrugated Boxes)

Annual Average

21

Industrial Bags
Volume and Exports

Sales Volume (1,000 tonnes)

Export Destinations 1H09

Others 4%

129

127

66

61

2007

2008

1H08

1H09

Domestic and Export Markets

Latin America 96%

22

Industrial Bags
Net Revenue and Brazilian Consumption per Industries

In 1H09, industrial bags sales was 14% of the Net Revenue

Consumption Main Industries 2008

Others 13% Food 3% Seed 4% C hemical 4% Minerals 5%

5%

3%
390 411 203 210

Building Industry 71%

2007

2008

1H08

1H09

Net Revenue (R$ million)

Source: Klabin

23

Industrial Bags
Brazilian Consumption of Cement

Million tonnes
5,0

4,0

3,0

2,0

Jan

Feb

Mar

Apr May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2006
Source: SNIC (National Labor Union of Cement Industry)

2007

2008

2009

24

Financial Performance

25

Results
Financial Figures Evolution
R$ million
Net Revenue Gross margin Operating Expenses Operating Income (EBIT) EBIT margin Net Financial Revenues Net Income (Losses) EBITDA EBITDA margin Net Revenue (US$ mi) Average Dollar Exports (US$ mi) Assets Stockholders Equity Net Debt / Capitalization

2007
2,796 33% (452) 474 17% 351 603 718 26% 1,440 1.95 367 7,778 2,714 40%

2008
3,097 26% (485) 325 10% (905) (349) 729 24% 1,714 1.84 462 8,242 2,247 62%

1H08
1,521 25% (238) 139 9% 165 221 332 22% 896 1.70 233 8,124 2,993 42%

1H09
1,404 26% (253) 112 8% 346 335 330 23% 641 2.19 175 7,857 2,540 55%
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The Companys information for fiscal years 2007 and 2008 are presented in accordance with Law 11.639 / 07.

EBITDA

26% 24% 22% 729 23%

718

332

330

2007

2008 EBITDA (R$ million)

1H08 EBITDA margin

1H09

27

Cash Cost Evolution

1H08

1H09

C hemicals 15% Labor/Services 26% Maint. Shutdown /Others 12%

C hemicals 16%

+ 5 p.p.

Maint. Shutdown /Others 17%

Labor/Services 28%

R$ 1.2 bi
Freights 11% Wood/Fibers 19% Energy/Oil 17%

R$ 1.1 bi
- 3 p.p.
Wood/Fibers 16% Freight 12%

Energy/Oil 11%

28

Fixed and Variable Costs

Variable Cost reduction in the first half

7% +1
1,637

1,921

69%

-13%
69%

973 845

-21%
71% 64% 31% 31% 29%

+3%

36%

2007

2008 Fixed Cost

1H08 Variable Cost

1H09

29

Capex
The Company invested R$ 155 million in 1H09 and the capex forecasted is R$ 300 million in 2009.
Packaging Bags Others

587

16% Forestry 43%

300 155

2008

1H09

2009*

Papers 41%

The Companys information for fiscal years 2007 and 2008 are presented in accordance with Law 11.639 / 07.

30

Loan Maturity Schedule

06/30/09

Current cash position cover next 29 months of debt maturities

Short term = 15%
R$ million

859 818

655 610
511 577

Foreign Currency 2,447 478

423 320
42 97

332 331

155

Gross Debt 4,803

267 208
114

164
323 307 283 279 323 141 146 67 18
After 2017

278

327 153

Local Currency 2,356

2H09

1H10

2H10

2011

2012

2013

2014

2015

2016

Local Currency

Foreign Currency

Net Debt R$ 3.1 billion Net Debt / EBITDA = 4.3x Average Maturity = 43 months

Debt cost Local currency: 8.8 % p.y. Foreign currency: 4.0% p.y. + FX
31

Dividend and Treasury Stocks

Dividends Payment (R$ million)

Treasury Stocks

283 237 191 192

The Company has 16,907,900 stocks in treasury

80

2005

2006

2007

2008

2009*

* Considering payment in August 31st, 2009

32

Future

33

Growth Strategy
Increase production capacity from 2.0 million tpy to 3.5 million tpy Operational stability and continuity R$ 2.2 billion investments concluded to reach 2.0 million tonnes capacity Financial discipline Future Cost reduction and higher productivity To prepare Klabin for the next growth cycle

4
Expansion program

3
Improving efficiencies Maturation of MA-1100 project

Solid Growth Prospects

34

Klabin at a glance
Solid Solid Financial Financial Performance Performance Best global Best global LPB supplier LPB supplier

Market Market Leadership and Leadership and Growth Growth Opportunities Opportunities Top Top Sustainability Sustainability Standards Standards

Successful R&D Successful R&D Track-Record Track-Record

Alternative Alternative fuels research fuels research

Lowest CashLowest CashCost Producer Cost Producer

35

IR Team IR Team Phone: (55 11) 3046-8404 / 8415 / 8416 Phone: (55 11) 3046-8404 / 8415 / 8416 www.klabin.com.br www.klabin.com.br invest@klabin.com.br invest@klabin.com.br
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