3rd Quarter of 2008

October/08

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.

Contents

Company Profile Businesses and Markets Financial Performance

4 13 36

Expansion of Coated Boards

51

Future

55

Company Profile
A forestry based company focused on wood, coated boards, packaging paper and paper packaging products:
17 plants in Brazil and 1 in Argentina Largest Brazilian producer and exporter of paper (packaging paper and coated boards) Installed production capacity: 2.0 million tpy Market Capitalization: US$ 1.3 billion (10/28/2008)

Net Revenue: R$ 2,291 million in 9M08

Forestry
Wood logs

Packaging Paper
Kraftliner Coated Boards

Paper Packaging
Industrial Bags Corrugated Boxes

7%

17%

30%

13%

31%
4

Note: In 9M08, 2% of net revenue was composed of other products.

Integrated Business Concept

After MA 1100 Expansion Project
Wood - 2.5 million tpy Sack Kraft 155,000 tpy 100% Integrated Pulp
100% Integrated Industrial Bags

Forests
Lands 446,000 ha

155,000 tpy

Planted Forests Pine 156,000 ha Eucalyptus 64,000 ha

NBSK BEKP CTMP

Coated Boards 740,000 tpy

Liquid Packaging Board Carrier Board Folding Box Board 740,000 tpy

Domestic and Export Sales

Exports 410,000 tpy Exports 410,000 tpy Kraftliner 770,000 tpy

Domestic Market 90,000 tpy 35% Integrated

1.7 million tpy

OCC 380,000 tpy

Recycled Paper 300,000 tpy

Corrugated Boxes 540,000 tpy

(*) Finished Products

100% Integrated

2.0 million tpy

(*) All figures refer to installed production capacity

Klabin's presence

Corrugated Boxes

Forestry

Recycled Papers

Pulp and Paper Mills

Industrial Bags

Shareholder Structure
09/30/2008

Family control + Professional management

Common
Brazilian Investors 28% Brazilian Investors 38%

Preferred
Monteiro Aranha 20% BNDESPAR 31%

Klabin Irmos 52% 316,827,563 shares

Treasury Stock 2%

Foreign Investors 29% 600,855,733 shares

IPO in 1979

Total shares 918 million

Average daily trading volume R$ 9.3 million

7

Corporate Governance
Highlights

Joined BOVESPAs level 1 of Corporate Governance

Tag along rights of 70% for preferred shares

Liquidity:1,105 daily trades in 3Q08

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

Level 1 ADRs program

Adopted insider trading policy for securities issued by the company and strict separation of Board of Directors and Executive Board

Investment Thesis
Solid Solid Financial Financial Performance Performance Best Best global global LPB LPB supplier supplier

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

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

Alternative Alternative fuels fuels research research

Lowest Lowest Cash CashCost Cost Producer Producer

Successful R&D Track-Record

Forest productivity: 5% increase in yield over the past three years Expectation of 50% yield growth over the next 10 years Genetic improvement, cloning and silvicultural development Savings with new forests of approximately US$50 million per year Allow for brownfield expansion more productivity at low fixed costs Ensure sustained competitiveness

10

Outstanding Product Quality

Different fibers enable very specific and high quality products Coated boards with lower basis weight and same mechanical properties (due to internal R&D efforts) Sole supplier of Liquid Packaging Boards (LPB) in southern hemisphere Diversity of products Higher margins

11

Market Leadership and Growth Opportunities

Market leadership in all segments in Brazil with space to grow:
20% of Brazils Paper production 55% market share in Industrial Bags 20% market share in Corrugated Boxes 50% market share in Kraftliner 18% market share in Coated Boards 100% market share in Liquid Packaging Boards (LPB)

Largest paper exporter more than 50 countries Regular exporter more than 25 years Coated boards growing twice the market average in Brazil

12

Business and Markets

13

Global Market
Growth of Paper Demand 2007-2020

4,5

4,2% 3,8%

3,5 Average Growth in Demand (%)

2,5

CAGR Average = 2.8%

2,5%
2

1,9 %
1,5

0,5

0,6%
1 50 Accumulated Participation in Global Demand 2007 (%) Printing and writing Newsprint Tissue Containerboard Others 99

Source: RISI

14

Production of Packaging Paper - 2007

Global Production
Europe 22%

Brazil Production
Klabin 35%

Latin America 6%

Rigesa 9%

Orsa 8%
Asia 40% Noth America 27% Africa/ Oceania 5%

Others 35% Inpa 3% Irani 3% S Roberto 3%

Trombini 4%

128 million tonnes

3.6 million tonnes

Source: RISI and Bracelpa

15

Wood

Products: wood logs Customers: Sawmills and laminators

Species

Main Products Sawn Lumber Fence Clear Blocks Finger - Joint - Blanks Mouldings Plywood

Destinations

USA Europe Domestic Market

Pine

Eucalyptus

Sawn Lumber Veneer Plywood Glued Laminated Beams Edge Glued Panels Outdoor Furniture

Europe Asia USA Domestic Market

16

Forests
Forestry base
Land and Forests 09/30/2008 Company Land Planted Forests Pine Eucalyptus Native preserved forests thousand ha 446 220 156 64 186

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

Km 42

76 66 95

17

Forests
Competitive advantage
Average Productivity (m3/ha/year) 09/30/2008 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

18

Kraftliner
Pioneerism and leadership in the production of kraftliner in Latin America Largest producer and exporter of packaging paper - 74% of Brazilian exports 6% share of the global market, exporting to more than 50 countries

Supplies Klabins 9 corrugated boxes converting plants

19

Kraftliner
Price evolution
US$/tonne

900 800

5%
20%

758

720

700 600 500 400 300 200 100 0

Jan-04

0%

12 %

602

541

539

2004

Jan-05

2005

Jan-06

2006

Jan-07

2007

Jan-08

2008

Kraftliner price (free delivered Europe)

Source: FOEX/Kraftliner Brown 175 g/m2

Average
20

Kraftliner
Cost competitiveness
Average cash cost (delivered Northern Europe)
US$ / tonne
497 419 352 420 430 447 451 471 498

Klabin MA

Portugal

Brazil

France

USA

Poland

Austria

Russia

Sweden
21

Source: RISI Analytical Conerstone 2Q08 converted to October's exchange rate.

Coated Boards

Liquid Packaging Boards (LPB)

Folding Box Boards

Carrier Boards Carrier Board

22

Global Board Market

28 million tpy

1.5 8.4
North America

Eastern Europe

5.6

Europe

10.5 Asia 0.6

Africa and Middle East

1.4

Latin America

Klabin focus on the virgin fiber based segment, which amounts to 10 million tpy:
- Liquid Packaging Board: 3.1 million tpy - Carrier Board: 2.7 million tpy - Folding Boxboard: 4.3 million tpy
23

Coated Boards
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

500

1,000 1,000 tpy

1,500

2,000

2,500

3,000

Liquid Packaging Board

Folding Box Board

Carrier Board

Solid Bleached Sulphate

Source: Pyry

24

Coated Boards
Klabin 3rd Largest Tetra Pak Supplier in 2009
Stora Enso Korsnas/Frovi Klabin International Paper Potlatch MeadWestvaco Graphic Packaging M Real Iggesund

200

400

600 1,000 tpy

800

1,000

1,200

1,400

1,600

Liquid Packaging Board

Folding Box Board

Carrier Board

Source: Pyry

25

Coated Boards
Klabin's Market Share Evolution
Sales in the domestic market (excluding LPB) 1995 / 2008*

16 %

19 %

13 % 6% 2 7%

10 % 8% 13 %

9% 7%

10 % 13 % 11% 12 % 12 %

13 %

2 1%

15%

3%

15%

18%

32%

34%

3 1%

32%

1995
S uza no

2000 Klabin
R ipa s a P a pirus

2005
Ibe m a

2008*
It a pa g O ut ro s
26

Source: Bracelpa - * Jan to Sep, 2008

Coated Boards
Brazilian Consumption per Main Industries and Market Share

Consumption Main Industries 2007

Market Share 2007

Suzano 25%

Others 4% Personal Care 3%

Food/ Beverages 93%

Klabin 38%

Ripasa/MD 8% Nobrecel 1% Ramenzoni 2% Miguel Forte Bonet 4% 3%

Ibema 10%

Papirus 9%

Includes LPB

Source: BRACELPA

27

Coated Boards
List price evolution (Free delivered USA)
US$/tonne

1,200 1,000

1,048 936 847 897 1,003

800

600 400 200 0

Jan-04

2004

Jan-05

2005

Jan-06

2006

Jan-07

2007

Jan-08

2008

Coated Board List Price (USA)

Source: RISI Index List Price 20Pt. Clay-Coated Unbleached Folding Cartonboard

Average
28

Coated Boards
FBB cost competitiveness
Average cash cost (delivered Northern Europe)
US$ / tonne

903 780 702 643 577 472 827

904

915

Klabin - MA

Brazil

USA

Poland

France

Sweden

Finland

Germany

UK

Source: RISI Analytical Conerstone 2Q08 converted to October's exchange rate.

29

Industrial Bags

Market leadership in the segments of multiwall and SOS bags

Recognized for high quality products and customized customer service

Supplies for a variety of industries, highlighting the building industry, food, chemical products and agribusiness
30

Industrial Bags
Brazilian Consumption per Main Industries

Consumption Main Industries 2007

Building Industry 71%

Food 3%

Others 13%

Minerals 5% Chemicals Seeds 4% 4%

Source: Klabin
31

Industrial Bags
Brazilian Consumption of Cement

M illion tonnes
5,0

4,0

3,0

2,0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Sep

Oct

Nov Dec

2006
Source: SNIC

2007

2008
32

Corrugated Boxes

Leadership of the corrugated boxes market in Brazil

Largest production capacity in Brazil with nine corrugated boxes converting plants

Klabins products reach every industry sector, providing total protection for packaged products transported
33

Corrugated Boxes
Brazilian Consumption per Main Industries and Market Share

Consumption Main Industries 2007

Market Share 2007

Rigesa 12% Orsa 10% Trombini 7% Penha 6% So Roberto 4% Adami INPA4%

Chemicals

9%

Food / Beverages 38%

Klabin 20%

Fruits 6%

Others 47%

4% Ibria 3% Others 34%

Source: ABPO
34

Corrugated Boxes
Brazilian shipments
Thousand tonnes
210

200

190

193 187 179 176 157 180 182

180

170

160

150

140 Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep02 02 02 03 03 03 04 04 04 05 05 05 06 06 06 07 07 07 08 08 08

Shipments
Source: ABPO

Annual Average

35

Financial Performance

36

Income Statement
Consolidated

R$ Million Volume (1,000 tonnes) Net Revenue Gross Profit Gross Margin Total Operating Expenses Operating Profit (before fin Results) Net Financial (Expenses)/Revenue Net Income (loss)

2005 1,377 2,706 1,025 38% (516) 356 (154) 309

2006 1,393 2,713 963 35% (497) 598 132 473

2007 1,437 2,796 953 34% (455) 842 345 621

9M07 1,097 2,128 755 35% (334) 730 310 550

9M08 1,186 2,291 609 27% (372) (48) (284) (1)

3Q08 388 770 182 24% (133) (398) (447) (253)

37

Financial Highlights
Consolidated

R$ Million EBITDA EBITDA Margin EBIT EBIT Margin Total Assets Net Debt Equity Minority Interest Total Captalization Net Debt / Capitalization

2005 755 28% 509 19% 4,696 319 2,245 97 2,661 12%

2006 709 26% 466 17% 6,123 702 2,461 112 3,385 21%

2007 741 27% 498 18% 7,806 2,007 2,741 128 4,997 40%

9M07 603 28% 421 20% 7,647 1,755 2,789 120 4,664 38%

9M08 539 24% 236 10% 8,302 2,771 2,623 139 5,649 49%

38

Klabin's Performance
Volume and Net Revenue growing Sales Volume
1.000 tonnes

Net Revenue
R$ million

8%

8%

1,097

1,186

2,128

2,291

9M07

9M08
Does not include wood

9M07
Includes wood

9M08

39

Klabin's Performance
Domestic Market Volume and net revenue growing with stable prices Sales Volume
1,000 tonnes

Net Revenue
R$ million

9%

9%

675

732

1,569

1,718

9M07

9M08
Does not include wood

9M07
Includes wood

9M08

40

Klabin's Performance
Export Market Growth of coated boards exports

Sales Volume
1,000 tonnes

Net Revenue
R$ million

Net Revenue
US$ million

8%

3%

22%

422

454

558

573 279

340

9M07

9M08

9M07

9M08

9M07

9M08

41

Performance 9M08
Per Market

Sales Volume

Net Revenue

Domestic Market 62% Exports 25%

Domestic Market 75%

Exports 38% Does not include wood Includes wood

1,186 thousand tonnes

R$2,291 1405 million R$ million

42

Exports Destination
9M08

Sales Volume
North America 5% Africa 9% Asia 15% Latin America 43% Africa 7%

Net Revenue
North America 6%

Latin America 46%

Asia 16%

Europe 28%

Europe 25%

454 thousand tonnes

R$ 452 million

43

Performance 9M08
Per Product

Sales Volume
Industrial Bags 8% Others 3% Kraftliner 28% Industrial Bags 13% Others 2%

Net Revenue
Wood 7% Kraftliner 17%

Coated Boards 30%

Corrugated Boxes 29%

Coated Boards 32% Does not include wood

Corrugated Boxes 31% Includes wood

1,186 thousand tonnes

R$ 2,291 million

44

EBITDA
EBITDA Margin of 24% in the 9 months of 2008
28% 24%

28%

27% 26%

755 709

741 603 539

2005

2006

2007

9M07 EBITDA Margin

9M08

EBITDA - R$ million

45

Capex and Net Debt

MA-1100 Project: Final phase of implementation Capex
R$ million

Net Debt
R$ million

1,914
606

2,272

2,007
2.7x 4.1x EBITDA

836
312

EBITDA

1,308

486
432

702
1.0x EBITDA
2006 2007 9M08

524
2006 2007

54
9M08

Capex

MA 1100
46

Debt Amortization Schedule 09/30/08

Low debt repayment in 4Q08 and 2009
Local Currency (50%)
Others 21%

2,130

Average Debt Maturity Average Annual Cost Local Foreign Total 44 months 57 months 51 months 10.9% 5.1%

BNDES 79%

Foreign Currency (50%)

Trade Finance 72% Others 28%

806 669 434 646

847 602

839

58
Cash 4Q08 29 29 2009 56 378 2010 207 462 2011 327 319 2012 503 304 2013 567 279 2014 327 276 After 2015 442 397

Foreign Currency Local Currency

95 2.035

47

Export and trade finance operations

Low exposure level of the companys exports to trade finance operations.
US$ MM 600 510 500 400 300 200 118 100 0
Oct / 2009 Dec 08 Free exports Pre payment Export credit note Exposure 113 5 0 4% 404 18 88 21% 2010 388 67 95 29% 2011 376 153 22 32% 2012 308 216 27 44% 2013 238 273 39 57% 2014 366 146 38 33% 2015 469 43 38 15% 2016 476 0 74 13% 2017 550 0 0 0% 2018 550 0 0 0% 2019 524 0 26 5% 2020 499 0 51 9%
48

550

550

550

550

550

550

550

550

550

550

550

Net Income and Dividends

R$ million
6.0%* 6.1%*
473 621

3.5%*
309

293 231 172 117 252

2005

2006

2007

Net Income

Declared Dividends

1H08 * Dividend Yield

49

Shares Performance at Bovespa

Market capitalization and daily trading volume
US$ million US$ billion

10.0

3.7 3.5 3.2

4.0

3.6 3.4 3.2 3.1 3.0

3.5

3.6 3.4 3.2 2.8

3.5

8.0

3.0 2.8
7.1

3.1 2.7
6.9 6.4 6.2 5.5 5.6 5.4

3.0

2.6
2.5 5.7 5.0 4.4 4.4 4.4 4.3 4.3 3.9

6.0

2.2

2.2
5.8 5.0

1.9
2.0

5.5

4.0 4.0 3.6

4.3

1.5

1.0 2.0 0.5

0.0
Jan-07 Feb-07 Mar- 07 Apr- 07 May- 07 Jun-07 Jul-07 Aug-07 Sep-07 Oct - 07 Nov- 07 Dec-08 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun- 08 Jul-08 Aug-08 Sep-08

0.0 Daily Trading Volum e Market Capitalization

50

Expansion of Coated Boards

51

Projeto MA 1100
Brownfield project New coated board machine moving forward along the industrial and commercial learning curves Start up of the new power boiler (Biomass)
Completed the energy source of the Monte Alegre mill 70% of electric energy consumption provided by self-generation

52

Paper machine #9
PM9 average daily production evolution
1,000 tonnes / day

Forecast Forecast 2008 2008 = = 280,000 280,000 tonnes tonnes

861 823 756 792 756 791

873

620 541

368

386

198

Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Average Daily Production (tonnes)

Jul-08 Aug-08 Sep-08

2009 onwards

Nominal Capacity

53

Electrical Energy
Reduced dependence on purchased energy 65% of electric energy self-sufficiency
Biomass 38%

70% of electric energy self-sufficiency

After MAMA-1100

Biomass 55%

85 MWh

150 MWh

HidroElectric 27%

Purchased E.Energy 35%

HidroElectric 15%

Purchased E.Energy 30%

54

Future

55

Growth Strategy

Wood

Coated boards

Domestic Market
Maintain leadership in every business segment

Corrugated Boxes

Industrial Bags

56

Growth Strategy

Coated boards

Exports
Increase share in the coated boards market

More value added products Less volatile prices Growing market Costs competitiveness Entrance barriers Financial capacity Technology: use of long and short fibers and coating

Capacity increase opportunities Costs competitiveness Technology

Kraftliner

57

Growth Strategy
Increase production capacity from 2.0 million tpy to 3.0 million tpy by 2013 / 2014 Operational stability and continuity R$ 2.2 billion investments concluded to reach 2.0 million tonnes capacity Financial discipline Value creation 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

58

Future
3.0 Million tonnes/year

Feasibility studies for the capacity increase and modernization projects are under review, aiming to achieve higher profitability Capacity increase to 3 million tonnes by 2013 / 2014 Cost reduction and higher productivity

59

Value in all we do
IR IR Contact Contact Phone: -8404 / Phone: (55 (55 11) 11) 3046 3046-8404 / 8415 8415 / / 8416 8416 www.klabin.com.br www.klabin.com.br invest@klabin.com.br invest@klabin.com.br 60