Quarterly Report 3Q09

Jul/Aug/Sep 2009

3Q09 EBITDA reaches R$ 199 million, with 27% margin

Highlights 3Q09
Sales volume recovery: 402 thousand tonnes in the quarter, up 15% compared to 2Q09; Net debt decreased US$ 305 million in the quarter. In the year, net debt decreased R$ 944 million. Net debt / EBITDA ratio, which was 5.1x in December08, fell to 3.6x in Setember09; Strong cash position: cash and equivalents totaled R$ 1.9 billion at the end of September, versus R$ 1.7 billion in December08; Net financial income totaled R$ 174 million, resulting from the 9% depreciation of the US dollar; Net revenue of R$ 750 million, up 10% compared to 2Q09; Operating cash generation (EBITDA) of R$ 199 million, up 33% compared to last quarter. EBITDA margin was 27%, compared to 22% in the 2Q09; Net income of R$ 183 million in the quarter. In 9 months, net income was R$ 518 million, against losses of R$ 35 million in the same period of 2008; Interim dividends payment on August 31st, in amount of R$ 46.8 million, totaling R$ 79.6 million in 9 months.
R$ Million Law 11,638/07 Net Revenue
% Exports

3Q09 750
21%

2Q09 683
23%

3Q08 770
23%

3Q09/2Q09 3Q09/3Q08

9M09 2,155
25%

9M08 2,291
25%

9M09/9M08

10% 0% 33% 0% -40% -10% 0% -18% 15% 0%

-3% 0% 28% 0% N/A 1% 0% -47% 4% 0%

-6%
0%

EBITDA
EBITDA Margin

199
27%

150
22%

155
20%

529
25%

487
21%

9%
0%

Net Income
Net Debt Net Debt/EBTIDA (last 12 months) Capex

183 2,804 3.6 61 402

35%

306 3,109 4.3 74 351

34%

-256 2,771 4.7 115 388

36%

518 2,804 3.6 216 1,109

37%

-35 2,771 4.7 437 1,186

38%

N/A 1% 0% -51% -6%

0%

Sales Volume - 1,000 t

% Exports

N / A Non applicable This quarterly information is presented in compliance with the criteria established by Law 11,638/07, by the accounting notices (CPCs) approved by the Securities and Exchange Commission of Brazil (CVM) and by Law 11,941/09. Results presented in 2008 also have been modified by the same law.

Investor Relations:
Antonio Sergio Alfano, Luiz Marciano Candalaft, Vinicius Campos, Daniel Rosolen, Lucia Reis Tel: +55 (11) 3046-8404/8415/8416 invest@klabin.com.br Visit our website: www.klabin.com.br

3Q09 Results October 27th, 2009

Markets and Exchange Rate

The economic figures released over September 2009 highlight the continued improvement in the global economy. Although home sales in the United States are lower than those of 2008, the reversal of the downward trend in this market is noticeable, as pending sales of used real estate remained high, suggesting that future sales will be good. With stabilization in the housing market, recovery of the Brazilian industry, improvement of the financial market and return of hiring in the labor market activity, retail sales began to react. Improvement of the labor market is visible, boosting consumer confidence and purchase. With higher sales, retail sales aid the industry by invigorating the whole economy. In this scenario, sales of cement, corrugated boxes and papers increased, indicating the recovery of the Brazilian economy, confirming the notion that Brazil took longer to enter its recession and faster than developed countries to overcome it. Sales of cement in the domestic market reached 4.6 million tonnes in September representing a 2% decrease over the same month last year. In sales per day, however, cement was traded at 218 thousand tonnes per day, up 2% from 214 thousand tons per day in September of last year. The result is also higher than 4% on average per day of August this year, which was 209 thousand tonnes per day. These data are preliminary and were released by the National Labor Union of Cement Industry (SNIC). In the packaging market, according to preliminary data from the Brazilian Association of Corrugated Boxes (ABPO) shipments of boxes and corrugated boxes and sheets recorded in September the first consistent increase in the year, reaching 206 thousand tons in the month, a 5% increase over the same month last year. In August the index showed stability after the shortfall in the first 7 months of the year, also related to the same month last year. The consumption increase could also be seen in the coated boards segment. According to data released by the Brazilian Association of Pulp and Paper (BRACELPA), the consumption of coated boards in the market (excluding liquid packaging boards) reached 51 thousand tonnes in September, achieving a record in monthly shipped volume and a 17% increase over the same month in 2008 and 11% compared to August 2009. The OCC (Old Corrugated Container) market became more attractive. The OCC, which reached an average of R$ 200 per tonne in the first quarter, increased about 50% by September. Thus, the cost of recycled paper became more pressured, creating space for the papers of virgin fiber, such as kraftliner. In August, some producers have announced kraftliner price increases for European, Asian and Latin American markets. These increases should continue to be implemented during the fourth quarter. Demand for pulp also showed strong recovery and enabled prices increases of virgin fiber throughout the year, which may be applied in paper prices during the coming quarters. The vigorous entry of the US currency in Brazil led to reals continued appreciation against the US dollar. The exchange rate (final sale) closed the quarter at R$ 1.78 / US$, representing a reduction of 7% over the September 30, 2008 price and 9% compared to June 30, 2009. The average exchange rate for the quarter was $ 1.87 / US$, an increase of 12% compared to 3Q08 and 10% lower compared to the average of the previous quarter. During the 9 months of the year, the average exchange rate was R$ 2.08 / US$, 23% higher over the same period last year.
3Q09 Average FX Final FX 1.87 1.78 2Q09 2.07 1.95 1Q09 2.31 2.32 4Q08 2.28 2.34 3Q08 1.67 1.91
3Q09 / 2Q09 3Q09 / 3Q08 3Q09 / 4Q08

-10% -9%

12% -7%

-18% -24%

3Q09 Results October 27th, 2009

Operating and Financial Performance

Sales Volume
Sales volume in 3Q09, excluding wood volume, was of 402 thousand tonnes, 4% and 15% higher than 3Q08 and 2Q09, respectively. In the domestic market, sales volume of papers was 262 thousand tonnes, 6% and 14% higher than 3Q08 and 2Q09, respectively. The increase over the same period last year was found in the segments of coated board, corrugated boxes and industrial bags, since the Brazilian consumption has taken over to a pre-crisis level. The heating of the domestic market ensured the performance of the sales volume in 3Q09. Sales volume of exports in 3Q09 totaled 140 thousand tons, close to 3Q08 levels and 16% higher than 2Q09. In 9 months, paper sales volume reached 1,109 million tonnes, a reduction of 7% over the same period in 2008, 4% domestic and 10% in foreign markets. Domestic sales accounted for 63% of total sales.

Sales Volume (thousand tonnes)

1,186 1,109

Sales volume by product 9M09

Ind. Bags 9% Others 1%

38% 37%
Kraftliner 26%

Coated Boards 34%

402 35 65%

351 34% 66%

388 36% 64% 63%

62%

C orrugated Boxes

3Q09

2Q09

3Q08

9M09 Export Market

9M08

does not inc ludes wood

30%

Domestic Market

Net Revenue
Net revenue in 3Q09, including wood, totaled R$ 750 million, 3% lower than 3Q08 and 10% higher than 2Q09. In the domestic market, net revenue was R$ 594 million, stable compared to 3Q08 and 13% higher than 2Q09. Exports revenues in 3Q09 totaled R$ 157 million, 12% lower than 3Q08 due to decrease in kraftliner prices and 1% higher than 2Q09. In the first nine months of the year, net sales reached R$ 2,155 million, 6% below the same period in 2008 due to lower sales of paper and wood in the period. Domestic revenues totaled 79% of total revenue in the quarter and 75% in the nine months of the year.

3Q09 Results October 27th, 2009

Net Revenue (R$ million)

2,291 2,155 25% 25%

Net Revenue by Product - 9M09

Wood 5% Kraftliner 13%

Others 2% Coated Boards 33%

750 21% 79%

683 23% 77%

770 23% 77%

75% 75%

Ind. Bags 15%

C orrugated Boxes

3Q09

2Q09

3Q08

9M09

9M08

includes wood

32%

Domestic Market

Export Market

Exports
In 3Q09 the percentage of exports to Latin America, where sales of coated boards and industrial bags are stronger, continued to grow. Exports to Asia and Africa also grew in percentage, compared to the other periods of the year.

Volume - 9M09
North America 7%

Net Revenue - 9M09

North frica America 4% 7%

Africa 7%

Latin America Asia 19% 37%

Asia 18% Latin America 49%

Europe 30%

Europe 22%

Operating Results
The cost of goods sold in 3Q09 was R$ 540 million, 8% lower than 3Q08 and 4% higher compared to 2Q09. COGS per ton in the quarter was 11% and 9% lower than 3Q08 and 2Q09, respectively. In the quarter, there was a 7% and 12% decrease in variable and fixed costs per tonne compared to 2Q09. From January to September 2009, COGS was R$ 1,579 million, 9% below the same period in 2008. The reduction of R$ 150 million compared to last year is explained by a 7% lower sales volume. COGS per tonne in 9 months was 2% below the same period last year.

3Q09 Results October 27th, 2009

Sales, general and administrative expenses were R$ 117 million in 3Q09, 8% lower than 3Q08 and 5% higher than 2Q09. In the third quarter of 2009, freights totaled R$ 47 million, up 3% and 10% compared to 3Q08 and 2Q09, respectively due to higher sales volume. Excluding freights, these expenses fell 14% compared to 3Q08 and increased 3% compared to 2Q09. In 9 months, general, sales and administrative expenses reached R$ 358 million, 2% below the same period last year. Cash cost for the quarter was R$ 1,369 / tonne, 14% and 10% lower than 3Q08 and 2Q09, respectively. In the year the cash cost was R$ 1,466 / tonne, down 4% over the same period of 2008. Operating result before financial result (EBIT) in 3Q09 was R$ 87 million, 66% and 106% higher than 3Q08 and 2Q09, respectively. In nine months, EBIT was R$ 200 million, 4% over the same period of 2008.

EBITDA
Operating cash generation (EBITDA) in 3Q09 was R$ 199 million, 28% and 33% higher than 3Q08 and 2Q09, respectively. The EBITDA margin was 27% versus 20% in 3Q08 and 22% in 2Q09. In 9 nine months, EBITDA reached R$ 529 million, with a margin of 25%, 9% increase over the same period last year.
EBITDA Composition - R$ million Operational result (after financial result) (+) Financial result (+) Depreciation EBITDA
EBITDA Margin

3Q09 261 -174 112 199

27%

2Q09 426 -383 107 150

22%

3Q08 -399 451 103 155

20%

9M09 719 -519 329 529

25%

9M08 -95 286 296 487

21%

The increase in EBITDA compared to the prior quarter was due to higher sales and a reduction in cost of good sold per unit, partially offset by the depreciation of the dollar, which reduced export prices in Brazilian reais.

EBITDA QoQ - R$ Million

60 -29 150

20

-2

199

EBITDA 2Q09

Sales Volume

Price + FX

COGS + Deprec.

SG&A

EBITDA 3Q09

3Q09 Results October 27th, 2009

Indebtedness
The gross debt at September 30th, 2009 was R$ 4,689 million compared to R$ 5,451 million at December 31st, 2008, a R$ 762 million reduction. This decrease is mainly due to appreciation of 24% of the Brazilian real against the US dollar (final rate) from December 2008 until September 2009, which generated a foreign exchange gain, without effects in cash, of $ 694 million. From the total debt, R$ 2,411 million (51%) are denominated in foreign currency equivalent to US$ 1,356 million, substantially, pre-payment of exports.

Average debt term is 41 months, 34 months for local currency nominated debt and 48 months for foreign currency debt. The short-term debt at the end of September accounts for 17% of the total.
By the end of September the financial investments totaled R$ 1,885 million, R$ 182 million higher than in December 2008, and overcome at 2.4x gross debt liabilities of short term.

Net debt at September 30th, 2009 was US$ 2,804 million, R$ 944 million lower than in December 2008. The net debt / EBITDA ratio, which was 5.1x at December 31st, 2008, ended the third quarter at 3.6x.

12/31/08 Local Currency Foreign Currency Short Term % Short Term Local Currency Foreign Currency Long Term % Long Term Local Currency Total % Local Currency Foreign Currency Total % Foreign Currency Gross Debt Cash Net Debt 396 83 479 9% 2,092 2,880 4,972 91% 2,488 46% 2,963 54% 5,451 1,703 3,748

06/30/09 09/30/09 604 139 743 15% 1,753 2,307 4,060 85% 2,357 49% 2,446 51% 4,803 1,694 3,109 611 173 784 17% 1,667 2,238 3,905 83% 2,278 49% 2,411 51% 4,689 1,885 2,804

Net Income
Net income in 3Q09 was R$ 183 million, compared to a loss of R$ 256 million in 3Q08 and gain of R$ 306 million in 2Q09. In nine months, net income reached R$ 518 million, versus a loss of R$ 35 million in the same period of 2008. The appreciation of the Brazilian real contributed to the net income, generating gain of exchange variation.

3Q09 Results October 27th, 2009

Business Performance
BUSINESS UNIT - FORESTRY
Klabin handled 2.1 million tonnes of logs of pine and eucalyptus and biomass for pulp and energy in 3Q09, volume 1% lower than 3Q08 and 19% higher than 2Q09. Of this total, 1.6 million tonnes was transferred to the mills of Parana, Santa Catarina and Sao Paulo. The sales volume of logs to sawmills and laminators was of 513 thousand tons in 3Q09, 17% lower than 3Q08 and 20% higher than 2Q09. In 9 months of 2009, the volume of logs was 1.4 million tonnes, 28% below the same period last year.

Sales Volume (thousand tonnes) 1,871

Net Revenue (R$ Million) 162

1,355 115 622 427 42 37 53

513

3Q09

2Q09

3Q08

9M09

9M08

3Q09

2Q09

3Q08

9M09

9M08

Domestic Market

Net revenue - wood

Net revenues of wood logs to third parties in 3Q09 was R$ 42 million, 21% lower than 3Q08 and 14% higher compared to 2Q09. In 9 months, net revenues from wood sakes was R$ 115 million, a reduction of 29% over the same period last year. In 3Q09, the market for residential construction in the United States showed signs of recovery, with an increase of 9% over the average of the second quarter. Until September, the annual average rate of the starting of construction of new private residential units in the US was 553 thousand, 44% lower than the first nine months of 2008.

Housing starts thousand units

2,127 1,861 1,704 1,555 1,460 1,297 1,151 1,464 1,053 1,025 868 658 528 540 590

Jan/06
Source: US C ensus Bureau

Jan/07

Jan/08

Jan/09

Quarter average

Housing starts

3Q09 Results October 27th, 2009

By the end of September, the areas, owned and from third parties, totaled 216 thousand hectares, of which 147 hectares planted with pine and 69 hectares planted with eucalyptus, plus 191 hectares of conservation areas and legal reserves. BUSINESS UNIT - PAPER Paper and coated boards sales volume for third parties was 243 thousand tonnes in 3Q09, 5% and 23% higher than 3Q08 and 2Q09, respectively. In 9 months of 2009, the volume of papers reached 657 thousand tonnes, down 9% over the same period last year. Net revenues of paper and coated boards totaled R$ 344 million in 3Q09, 2% lower than 3Q08 and 17% higher than 2Q09. During the year, papers net revenues accumulated R$ 990 million until September, a reduction of 7% compared to 9 months of 2008. Exports in 3Q09 totaled 131 thousand tonnes, stable compared to 3Q08 and 16% higher compared to 2Q09. In 3Q09, exports accounted for 54% of the total volume sold, compared to 57% in 3Q08 and in 2Q09. By the end of September, exports reached 383 thousand tonnes, 9% below the same period in 2008.

Kraftliner
Kraftliner sales volume was 108 thousand tonnes in 3Q09, 9% and 29% higher than 3Q08 and 2Q09, respectively, explained by the increase in demand during this period in domestic and foreign markets. In 9 months, volume reached 284 thousand tonnes which is 16% lower than the first 9 months of 2008. Sales to export market reached 84 thousand tonnes in 3Q09, equivalent to 78% of total sales of this product. Sales to the domestic market reached 24 thousand tonnes in 3Q09, 7% lower than the 3Q08 and 56% higher than the 2Q09. Net revenues of kraftliner reached R$ 96 million in 3Q09, 18% lower than 3Q08 and 19% higher than 2Q09. In the year, kraftliner revenues reached US $ 279 million, 26% below the same period last year.

Sales Volume (thousand tonnes) 338 284

Net Revenue (R$ Million)

379
78%

279

83%

108 84
78% 82%

99
74%

96

117 81 2Q09 3Q08 9M09 9M08

3Q09

2Q09

3Q08

9M09

9M08

3Q09

Domestic Market

Exports

Net revenue - kraftliner

European prices have been adjusted in 25 / tonne in September and 20 / tonne in October. In November is expected a further increase of 40 / tonne. In Latin America the increase was US$ 30 / tonne in August and September, a further increase of US$ 30 / tonne was announced for November. For markets in Africa, Asia and the Middle East, price increased US$ 30 / tonne in September / October, with expectations of announcement of a further US$ 30 / tonne increase since November. According to data from FOEX, the dollar price of kraftliner remained stable in 3Q09.

3Q09 Results October 27th, 2009

Kraftliner Prices x Exchange Rate

1 8 0 0 2 9 . 0 1 6 0 0

7 .

1,318

1,308

1,398

1,329 1,191
2 5 . 0

2.43 2.18 602 720 1.95 1.83 732 2.08

3 .

1 .

539

570

9 .

7 .

5 .

1 Q05 2Q05 3Q05 4Q05 1 Q06 2Q06 3Q06 4Q06 1 Q07

2Q07 3Q07 4Q07 1 Q08 2Q08 3Q08 4Q08

1 Q09 2Q09 3Q09

Average Price Foex (US$)

So urce: FOEX - Kraftliner bro wn 1 75 g/m 2

Average Price Foex (R$)

Average FX Rate (R$/US$)

- P IX P A CKA GING EUROP E B enchmark Indexes

Coated boards
Coated boards sales volume in 3Q09 totaled to 135 thousand tonnes, 1% and 18% higher than 3Q08 and 2Q09, respectively. In the year, volume sold was 373 tonnes, 2% lower than in 9M08. Coated boards net revenues reached R$ 248 million in 3Q09, 6% and 16% higher than 3Q08 and 2Q09, respectively, due to higher volumes in the domestic market. In 9 months, net revenue of coated boards was R$ 711 million, 4% higher than the 9M08 explained by the increase in the average exchange rate. Coated boards prices remained stable in reais in the domestic market and in dollar in the foreign markets during the quarter. Exports of coated boards totaled 47 thousand tonnes in 3Q09, 19% lower than 3Q08 and 6% higher than 2Q09. According to data released by the Brazilian Association of Pulp and Paper - Bracelpa - sales of coated boards (excluding liquid packaging board) in the domestic market in the 3Q09 reached 142 thousand tonnes, 2% and 20% higher than 3Q08 and 2Q09 respectively. In nine months, sales have accumulated 360 thousand tonnes, still 8% below the same period of 2008.
Sales Volume (thousand tonnes) 373 380 711
40% 42%

Net Revenue (R$ Million) 682

135
35%

114
39%

133
44% 56% 60% 58%

248

214

235

65%

61%

3Q09

2Q09

3Q08

9M09
Exports

9M08

3Q09

2Q09

3Q08

9M09

9M08

Domestic Market

Net revenue - coated boards

3Q09 Results October 27th, 2009

BUSINESS UNIT CORRUGATED BOXES Klabins shipments of corrugated boxes reached 117 thousand tonnes in 3Q09, 4% and 2% higher than 3Q08 and 2Q09, respectively. In 9M09 the shipments totaled 333 thousand tonnes, a reduction of 2% over the same period last year. Net revenues in 3Q09 totaled R$ 241 million, stable compared to 3Q08 and 2% higher than 2Q09. In the year, net revenues were R$ 690 million until September, 4% lower than the 9M08.

Sales Volume (thousand tonnes) 333 340

Net Revenue (R$ Million) 690 717

117

115

112 241 237 244

3Q09

2Q09

3Q08

9M09

9M08

3Q09

2Q09

3Q08

9M09

9M08

Domestic Market

Net revenue - corrugated boxes

According to preliminary information from the Brazilian Association of Corrugated Boxes - ABPO - in the first half of 2009 shipments of boxes and corrugated sheets was 7% below the same period in 2008. In 3Q09 there was significant increase in consumption of packaging. The average shipments in the quarter were 198 thousand tons per month, 1% and 8% higher than 3Q08 and 2Q09, respectively. From January to September, the Brazilian shipments of corrugated boxes and sheets were 1,646 million tonnes, 4% lower than the 9M08.

Brazilian Corrugated Shipments thousand tonnes

197 187 182 196 188 185 181 197 184 168 183 198

175 181

184

Jan/06

Jan/07

Jan/08

Jan/09

Quarter average
Source: Brazilian Association of C orrugated Boxes

Monthly volume

BUSINESS UNIT INDUSTRIAL BAGS Industrial bags sales volume from Brazil and Argentina in the domestic and foreign markets in 3Q09 totaled 34 tonnes, 5% and 9% higher than 3Q08 and 2Q09, respectively. In 9 months, the volume of bags reached 95 tonnes, 3% lower than the 9M08.

10

3Q09 Results October 27th, 2009

Net revenue in 3Q09 was R$ 111 million, 5% and 6% higher than 3Q08 and 2Q09, respectively. For the year, net revenues until September, was R$ 321 million, 4% higher than the same period last year.
Sales Volume (thousand tonnes) Net Revenue (R$ Million) 321 309

95

98 111

105

106

34 3Q09

31 2Q09

32 3Q08 9M09 9M08 3Q09 2Q09 3Q08 9M09 9M08

Industrial Bags (Brazil and Latin America)

Net revenue - industrial bags

Preliminary data from the National Labor Union of Cement Industry (SNIC) and market estimates indicate that cement sales for the Brazilian market from January to September 2009 reached 38 million tonnes, 2% below the same period last year. In 3Q09, sales of cement have grown 11% over the previous quarter, although still have been 4% lower than 3Q08.

Brazilian cement consumption thousand tonnes

4.7 3.9 3.3 3.3 3.6 3.5 3.4 3.6 4.0 4.0 4.2 4.3 4.5 3.9 4.1

Jan/06

Jan/07

Jan/08

Jan/09

Quarter average
Source: Nation Labor Union of C ement Industry

Monthly consumption

Capex
The main investments made in nine months are listed below:

R$ Million Forestry Paper mills Corrugated Boxes Industrial Bags Others Total

9M09 85 104 25 1 1 216

9M08 192 214 29 1 1 437

Capex in the third quarter was R$ 61 million, totaling R$ 216 million in the first nine months of 2009, of which 48% was allocated to the Paper Business Unit, 39% in Forestry Business Unit and 12% in Corrugated Boxes Mills.

11

3Q09 Results October 27th, 2009

Capital Markets
In 3Q09, Klabin preferred stock (KLBN4) registered a nominal gain of 40.5%, while the Ibovespa gained 19.5%. The Company's stock was traded in all sessions on the So Paulo Stock Exchange (BM&FBovespa), registering 130,087 transactions involving 151.8 million shares in the quarter, at an average daily trading volume of R$ 8.5 million, 20% higher from previous quarter. The following chart shows the performance of Klabins preferred stock and the benchmark Ibovespa index:
KLBN4 x IBOVESPA Inception = 06/30/09

150 140 130 120 110 100 90 80

Jun-09 Jul-09 KLBN4 Aug-09 IBOVESPA Sep-09 19.5% 40.5%

Klabin stock also trades in the US market as Level I ADRs, listed on the over-the-counter market under the ticker KLBAY. Klabins equity is represented by 917.7 million shares, of which 316.8 million are common shares and 600.9 million are preferred shares. On June 30th, the Company held 16.9 million preferred shares in treasury.
At September 30st, 2009 Preferred Shares Share Price (KLBN4) Book Value Average Daily Trading Volume 3Q09 Market Capitalization 600.9 million R$ 4.20 R$ 2.91 R$ 8.5 million R$ 3.9 billion

Stocks Repurchase
In an extraordinary meeting of the Board held on 13 October 2009, it was authorized repurchase program of preferred shares to 45.7 million shares issued by the Company. This program is valid for 365 days or until October 12, 2010.

Dividends
On August 31, 2009, Klabin has paid interim dividends in the amount of R$ 46.8 million, R$ 46.80 per thousand shares and R$ 53.68 per thousand shares. In 2009 the Company paid a total of R$ 79.6 million.

12

3Q09 Results October 27th, 2009

Strategy
The continued economic recovery in Brazil, USA and Europe, creates a promising scenario for Klabin. The reaction of the Brazilian economy has been guaranteed the good demand for durable and nondurable goods. Klabins exports of boards for the United States and Europe tend to grow in the near future with the entry of new large customers already in the final stages of negotiation. Given this positive scenario, the management objectives for 2010 are:

Increase operating cash flow and deleverage the Company; Increase sales volume; Develop new large customers in the export market; Develop new products for the domestic market; Expand the planted area in Monte Alegre, especially with eucalyptus for future growth; Improve rating in global scale; Resume the studies for the establishment of a pulp mill hardwood and softwood with an annual capacity of 1.5 million tonnes.

13

3Q09 Results October 27th, 2009

Conference Call (in Portuguese)

Wednesday, October 28th, 2009 10:00 a.m. (Braslia). Code-in: Klabin Telephone: +55 (11) 4688-6331 Replay: +55 (11) 46886312 Password: 331 Conference Call (in English) Wednesday, October 28th, 2009 9:00 a.m. (N.Y.) / 11:00 a.m. (Braslia) Password: Klabin Phone: US participants: 1-888-700-0802 International participants: 1-786-924-6977 Brazilian participants: (55 11) 4688-6331 Replay: (55 11) 46886312 Password: 819 Webcast An audio webcast of the conference call is also available over the internet. Access: www.ccall.com.br/klabin With gross revenue of R$ 3.4 billion in 2008, Klabin is the largest integrated manufacturer of packaging paper in Brazil, with annual production capacity of 2.0 million tonnes. The Company has adopted a strategic focus in the following businesses: paper and coated board for packaging, corrugated boxes, industrial bags and wood. Klabin is the leader in all market segments in which it operates.
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 Managements expectations for the Companys future. These expectations are highly susceptible to changes in the market, in the state of the Brazilian economy, in the industry and in international markets, and therefore are subject to change.

14

Results 3Q09 October 27th, 2009

Attachment 1 Consolidated Income Statement BR GAAP Law 11,638/07 (thousands of R$)

3Q09 Gross Revenue Net Revenue Cost of Products Sold Gross Profit Selling Expenses General & Administrative Expenses Other Revenues (Expenses) Total Operating Expenses Operating Income (before Fin. Results) Equity in net income (loss) of subsidiaries Financial Expenses Financial Revenues Net Foreign Exchange Losses Net Financial Revenues Net Income before Taxes Income Tax and Soc. Contrib. Minority Interest Net Income Depreciation/Amortization/Exhaustion EBITDA 914,140 750,372 (540,423) 209,949 (72,313) (44,743) (5,915) (122,971) 86,978 (68,033) 42,196 199,788 173,951 260,929 (77,304) (822) 182,803 112,097 199,075 2Q09 832,421 682,695 (518,459) 164,236 (68,202) (42,853) (11,002) (122,057) 42,179 (53,820) 39,713 397,903 383,796 425,975 (118,962) (704) 306,309 107,385 149,564 3Q08 926,747 770,201 (585,280) 184,921 (73,584) (53,790) (5,085) (132,459) 52,462 (178) (126,613) 60,585 (385,363) (451,391) (399,107) 145,808 (2,409) (255,708) 102,895 155,357 9M09 2,610,043 2,154,841 (1,579,437) 575,404 (229,565) (128,183) (17,928) (375,676) 199,728 (220,376) 128,878 611,009 519,511 719,239 (199,162) (2,021) 518,056 328,869 528,597 9M08 2,754,796 2,290,851 (1,728,759) 562,092 (227,031) (138,741) (5,150) (370,922) 191,170 (238) (292,469) 203,442 (197,353) (286,380) (95,448) 69,156 (8,185) (34,477) 295,718 486,888 100.0% 72.0% 28.0% 9.6% 6.0% 0.8% 16.4% 11.6% 0.0% 9.1% 5.6% 26.6% 23.2% 34.8% 10.3% 0.1% 24.4% 14.9% 26.5% 100.0% 75.9% 24.1% 10.0% 6.3% 1.6% 17.9% 6.2% 0.0% 7.9% 5.8% 58.3% 56.2% 62.4% 17.4% 0.1% 44.9% 15.7% 21.9% 100.0% 76.0% 24.0% 9.6% 7.0% 0.7% 17.2% 6.8% 0.0% 16.4% 7.9% 50.0% 58.6% 51.8% 18.9% 0.3% 33.2% 13.4% 20.2% 100.0% 73.3% 26.7% 10.7% 5.9% 0.8% 17.4% 9.3% 0.0% 10.2% 6.0% 28.4% 24.1% 33.4% 9.2% 0.1% 24.0% 15.3% 24.5% % of Net Revenue 3Q09 2Q09 3Q08 9M09

15

Results 3Q09 October 27th, 2009

Attachment 2 Consolidated Balance Sheet BR GAAP Law 11,638/07 (thousands of R$)

Assets Current Assets Cash and banks Short-term investments Securities Receivables Inventories Recoverble taxes and contributions Other receivables 9/30/2009 3,219,798 11,644 1,534,078 339,736 520,619 443,769 326,378 43,574 12/31/2008 3,180,419 104,586 1,190,591 407,521 633,080 437,092 326,969 80,580 Liabilities and StockholdersEquity Current Liabilities Loans and financing Suppliers Income tax and social contribution Taxes payable Salaries and payroll charges Dividends to pay Other accounts payable Noncurrent Liabilities Loans and financing Other accounts payable Minority Interests Noncurrent Assets Deferred income tax and soc. Contrib. Taxes to compensate Judicial Deposits Other receivables Other investments Property, plant & equipment, net Intangible assets 4,673,065 118,199 185,232 33,963 109,375 11,552 4,159,319 55,425 5,061,781 314,062 206,514 79,793 106,028 8,700 4,299,443 47,241 StockholdersEquity Capital Capital reserves Revaluation reserve Profit reserve Valuation adjustments to shareholders'equity Treasury stock 9/30/2009 1,129,828 784,021 179,346 1,931 47,075 66,320 0 51,135 4,052,229 3,905,643 146,586 37,745 2,673,061 1,500,000 84,491 79,461 1,101,098 (12,179) (79,810) 12/31/2008 843,368 479,262 215,546 764 42,152 59,661 0 45,983 5,123,843 4,971,637 152,206 27,974 2,247,015 1,500,000 84,491 81,016 661,627 (309) (79,810)

Total

7,892,863

8,242,200

Total

7,892,863

8,242,200

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Results 3Q09 October 27th, 2009

Attachment 3 Loan Maturity Schedule September 30th, 2009

R$ million Bndes Others Local Currency Trade Finance Others Fixed Assets Foreign Currency Gross Debt 4Q09 82.2 123.5 205.7 16.2 0.4 5.5 22.2 227.9
Average Cost 8.3 % p.y. 3.9 % p.y.

2009 82.2 123.5 205.7 16.2 0.4 5.5 22.2 227.9

Average Tenor 34 months 48 months 41 months

2010 304.0 177.7 481.8 163.2 1.7 35.5 200.4 682.2

2011 304.0 16.7 320.7 261.5 1.7 48.9 312.1 632.8

2012 288.7 16.7 305.4 426.8 1.7 46.7 475.2 780.5

2013 263.1 18.0 281.1 491.1 1.4 69.1 561.5 842.6

2014 256.3 21.0 277.3 360.0 66.8 426.8 704.2

2015 290.2 30.9 321.1 81.7 66.8 148.6 469.6

2016 41.4 24.9 66.3 129.8 129.8 196.0

After 2017 0.7 18.0 18.7 135.0 135.0 153.7

Total 1,830.7 447.2 2,278.0 1,800.7 6.8 604.1 2,411.6 4,689.6

Local Currency Foreign Currency Gross Debt

R$ million

843 781 682 633

200 475 312 562 427

704 Foreign Currency 2,411.6 470

149

Gross Debt 4,689.6

228
22 206

228
22 206

482 321 305 281 277 321

196 154
130 135 66 19
After 2017

Local Currency 2,278.0

4Q09

2009

2010

2011

2012

2013

2014

2015

2016

Local Currency

Foreign Currency

17

3Q09 Results October 27th, 2009 Results 3Q0

Attachment 4 Consolidated Cash Flow Statement BR GAAP Law 11,638/07 (thousands of R$)
3Q09
Cash flow from operating activities Operating activities . Net income . Depreciation, amortization and depletion . Equity results . Deferred income and social contribution . Interest and exchange variation on loans and financing . Interest Payment . Results on Equity Pickup . Minority interest . Others Variations in Assets and Liabilities . Receivables . Inventories . Recoverable taxes . Marketable Securities . Prepaid expenses . Other receivables . Suppliers . Taxes and payable . Income and social contribution . Salaries, vacation and payroll charges . Other payables Net Cash Investing Activities . Purchase of property, plant and equipment . Increase in intangible . Sale of property, plant and equipment . Others Net Cash Financing Activities . New loans and financing . Amortization of financing . Payment of capital at subsidiaries by minority shareholders . Acquisition of minority shares in subsidiaries . Dividends Payment Increase (Decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 186,239 137,586 182,803 112,097 (1,182) 74,668 (162,092) (67,603) 822 (1,927) 48,653 45 (5,645) 35,470 (7,293) (7,394) 6,390 26,557 (1,224) 161 6,989 (5,403) (78,322) (76,612) (2,617) 2,195 (1,288) 76,591 197,385 (80,731) 6,744 (46,807) 184,508 1,361,214 1,545,722

9M09
546,951 299,838 518,056 328,869 (6,956) 191,460 (515,330) (226,908) 2,021 8,626 247,113 112,461 (6,237) 65,304 67,785 16,248 27,703 (35,971) 4,923 1,442 6,659 (13,204) (205,326) (212,973) (2,617) 11,552 (1,288) (91,080) 204,756 (223,753) 7,793 (265) (79,611) 250,545 1,295,177 1,545,722

3Q08
80,444 153,201 (255,708) 102,895 385 (147,708) 528,848 (69,048) 178 2,409 (9,050) (72,757) (2,795) (30,379) (29,704) 10,626 (5,144) (25,470) 1,350 324 9,587 (1,152) (120,056) (125,988) 4,865 1,067 75,935 94,412 (18,477)

9M08
16,038 439,893 (34,477) 295,718 989 (71,057) 460,227 (214,400) 238 8,185 (5,530) (423,855) (70,358) (62,115) (89,164) 11,248 (16,823) (164,236) (1,673) (30,247) 7,739 (8,226) (416,715) (429,427) 6,264 6,448 431,588 727,959 (178,661) 2,292 (120,002) 30,911 2,098,641 2,129,552

36,323 2,093,229 2,129,552

18