March, 2010

Institutional Presentation 2009

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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
12/31/2009 Preferred
Treasury;
Monteiro Aranha ; 20%

Common
Foreign Investors; 23%
Klabin Irmos; 59%

3%

Brazilian Investors ; 21%

BNDES; 31%

Brazilian Investors; 43%

316,827,563 shares

600,855,733 shares

IPO in 1979

Market Value of R$ 4,8 Bi

Average daily trading volume R$ 12 million in December 2009

Corporate Governance
Joined BOVESPAs level 1 of Corporate Governance

Tag along rights of 70% for preferred shares

Liquidity: 2,204 daily trades in 4Q09

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

Level 1 ADRs program OTCQX March10 Adopted insider trading policy for securities issued by the company and strict separation of Board of Directors and Executive Board

Company profile
Net Revenue: R$ 3.0 billion in 2009
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 2009, 2% of net revenue was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board

A company 100% integrated

Production Capacity of pulp and papers in 2010: 1.9 million tpy Production Capacity of sales products in 2010: 1.8 million tpy *

Lands

457 Kha
Pine 144 Kha

OCC 280 Kt

Eucalyptus 67 Kha

+
NBSK

Pulp - 1.7 million t

BEKP and UEKP CTMP Recycled Paper 200 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 250 Kt

Domestic

Corrugated Boxes 540Kt

Notes: All figures refer to installed production capacity * The production of paper packages generates 100 thousand tpy of edge trim, which returns to the process. ** Does not includes 50 thousand tpy of Ponte Nova Mill capacity that is temporarily closed. NBSK Northern Bleached Softwood pulp / BEKP Bleached Eucalyptus Kraft Pulp / UEKP Unbleached eucalyptus Kraft Pulp CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container

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)

Businesses and Markets

Forest
Forestry Base
Thousand ha Forests 01/31/2010 Planted Forests Eucalyptus Pine Native preserved forests Total Lands
Paran 141 56 85 123 301 Santa Catarina 65 6 59 62 140 3 16 3 7 So Paulo 5 5 Mato Grosso do Sul

Total 211 70 144 191 457

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

Km 48

76 66 100

Forests
Competitive advantage

Average Productivity (m3/ha/year) 01/31/2010 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

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Wood
Sales Volume, Net Revenue and Housing starts
Sales volume (thousand tonnes)
-5% -18%

2,412

2,298 1,892

2007

2008

2009

Housing starts thousand units

2,127 1,861 1,704

1,555 1,460

1,464 1,297 1,053 1,025 1,151 868 658 528 590 540 555

Jan/06
Source: US C ensus Bureau

Jan/07

Jan/08

Jan/09

Quarter average

Housing starts

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Coated Boards
Sales volume, net revenue and exports
Sales volume (thousand tonnes)
5% 43%
506 531

Net revenue (R$ million)

6% 35%

354

43%

40%

935 695

988

29%

71%

57%

60%

2007

2008

2009

2007

2008

2009

Domestic Market

Export Market

Export Destinations 2009

Latin America; 12% Asia; 17% Europe; 39%

North America; 32%

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Coated Boards
Domestic Market Share*
Domestic Market Share Coated Boards* (%)
504 Kt 508 Kt 507 Kt

82 87

75

13
2007

18
2008

25

2009

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

Klabin

Others

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Coated Boards
UHT Milk Consumption
Brazil UHT milk sales million liters
5,700 4,220 5,767 4,227 5,993 4,403 6,352 4,804 6,660 5,066 6,743 5,040 7,103

5,125 3,425

5,230 3,600

5,390 3,951

5,311

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

UHT Milk sales

Total milk consumption

World
UHT Milk Consumption versus total milk consumption Country Spain Portugal Belgium France Brazil Market Share 97% 97% 95% 94% 75% Country Italy Argentina Hong Kong Mexico Market Share 59% 62% 47% 36%

Source: ABLV (Brazilian Association of UHT Milk)

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Coated Boards
FBB virgin fibers cost competitiveness
Average Cash Cost (FOB) and List Price Evolution
Jan/07 Apr/07 Jul/07 Oct/07 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09 Oct/09

1,102

List price (US$/tonne)

970

1,014

1,047

1,081

733 676 Production cash cost (US$/tonne) 495 434

Others Labor Energy Chemical

751

500

Fibers

Others

United States

Klabin MA

Sweden

Canada

Poland

Chile

Finland

Brazil

8 million tonnes

16 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 4Q09

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Kraftliner
Sales volume, net revenue and exports
Sales volume (thousand tonnes)
-1%
464 458 393

Net revenue (R$ million)

3% -29%

-14%

86%

80%

78%

529

545 385

14%

20%

22%

2007

2008

2009

2007

2008

2009

Domestic Market

Export Market

Export Destinations 2009

Others; 14% Europe; 44%

Africa ; 11%

Americas; 31%
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Kraftliner Exports
Cash cost and List Price
Average Cash Cost (FOB) and List Price Evolution
Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09

797

List price (US$/tonne)

719 634 547

679

613

551 Production cash cost (US$/tonne) 365 275 297

Others Labor Energy Chemicals Fibers
capacity

414

299

United States

Klabin MA Others LatAm Spain

South Africa

ustria Germany

Others Sweden

Canada

Russia

France

Finland

Poland

Brazil

17 million tonnes

34 million tonnes

Notes: Most of US production includes recycled paper. List Price Europe (US$/tonne). Source: FOEX Kraftliner Brown 175 g/m. Average cash cost FOB (US$/tonne). Source: RISI Analytical Cornerstone 4Q09.

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Corrugated Boxes
Sales volume, net revenue and consumption distribuition
Sales volume (thousand tonnes)
-2% 2%

Net revenue (R$ million)

5% 0%

902
456 445 457

947

946

2007

2008

2009

2007

2008

2009

Consumption distribution
(December/09)
Drugs Clothing 2% 2% Cosmetics 3% Others 11%

Textilles 3%

Food 42%

Tobaccos 4% Beverages 4% Miscellaneous 5% Poultry 6%

Fruits & floriculture 8%

Chemical 11%

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Corrugated Boxes
Brazilian Shipments and market share
Brazilian Shipments
(million tonnes)

Market Share 2008 (%)

209
31

197

197

198

187

196 184 188 185 181

Others
3 3 4 4 6 7

Ibria INPA Adami So Roberto Penha Trombini Orsa Rigesa

175 181

184

182

183

168
10

12

Klabin

20

jan/06

jan/07

jan/08 Quarter average

jan/09 Monthly volume

Source: ABPO (Brazilian Association of Corrugated Boxes)

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Industrial Bags
Sales volume, net revenue and cement consumption
Sales volume (thousand tonnes)
-2% 2% 5%

Net revenue (R$ million)

4%

129

127

130
390

411

429

2007

2008

2009

2007

2008

2009

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 4,6 3,9 4,1 4,4

jan/06

jan/07

jan/08

jan/09

Quarter average
Source: Nation Labor Union of Cement Industry

Monthly consumption

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Industrial Bags
Export destinations and cement per industries

Export Destinations 2009

Others 2%

Consumption Main Industries 2009

North America 6%

Minerals Others 5% C hemicals 3% 4% Seeds 6%

Food 10%

Latin America 92%

Building Industry 72%

Source: Klabin

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Financial Performance

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Results
Financial Figures Evolution
R$ million
Sales volume 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
(excluding wood)

2007
1,437 2,796 33% (452) 474 17% 351 603 718 26% 1,440 1.95 367 7,778 2,714 40%

2008
1,579 3,097 26% (485) 325 10% (905) (349) 729 24% 1,714 1.84 462 8,242 2,247 62%

2009
1,545 2,960 26% (466) 309 10% 542 333 747 25% 1,486 1.99 358 7,998 2,387 51%

2009 / 2008

2008 / 2007

-2% -4%

10% 11% -6 p.p.

-4% -5%

7% -31% -7 p.p.

2% 1 p.p. -13% 8% -23% -3% 6% -18%

2% -2 p.p. 19% -6% 26% 6% -17% 55%

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The Companys information for fiscal years 2007, 2008 and 2009 are presented in accordance with Law 11.639 / 07.

EBITDA
R$ million

26% 24%

25%

718

729

747

2007 EBITDA

2008 EBITDA margin

2009

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Cash Cost Composition

2009

Wood / Fibers 16%

C hemicals 15%

Labor/Services 30%

R$ 2.2 bi
Maint Shutdown /Others 15% Energy/Oil 12%

Freight 12%

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Cost of Good Sold

Unit COGS (R$/tonne)
-5%

-2%

1.461

1.420

1.392

4Q07

4Q08

4Q09

26

Capex
R$ million
The Company invested R$ 247 million in 2009
Packaging Bags Others

1674

11% Forestry 40%

587 247
Papers 49%

2007

2008

2009

27

Loan Maturity Schedule

12/31/09

Current cash position cover next 34 months of debt maturities

2,052
Short term = 15% 843 783 708 632 566
467 306 551 420 234

R$ Million

Foreign Currency 2,446

Gross Debt 4,620

311
47

199 141
264 64 77

194

118
42 76
3Q10

125
49 76
4Q10

326

316

292

288

332 127 138

Local Currency 2,175

72
2011 2012 2013 2014 2015 2016

57
After 2017

Cash

1Q10

2Q10

Local Currency

Foreign Currency

Net Debt R$ 2.6 billion Net Debt / EBITDA = 3.4x Average Maturity = 40 months

Debt cost Local currency: 8.0 % p.y. Foreign currency: 3.6% p.y. + FX
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Dividend and Treasury Stocks

Dividends Payment (R$ million)

Treasury Stocks

283 237 191 192

123

The Company has 16,907,900 stocks in treasury

2005

2006

2007

2008

2009

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Future

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Strategy
Managements short term goals:
To increase sales volume; To develop new products for the domestic and international markets; To increase planted area

To attract key clients in the international market;

To increase operating cash flow; To extend financing terms, thereby improving the debt profile; To reduce the net debt/EBITDA ratio; To improve our Global Scale Rating.

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Strategy
Long term goal: Capacity growth Construction of a global-scale pulp plant with a capacity of between 1.3 and 1.5 million tonnes per year;

Installation of a new coated board machine with a capacity of between 400,000 and 500,000 tonnes per year, expanding total paper and paper packaging production to 2.4 million tonnes per year.

Capacity evolution
tonnes per year

1.9 million

3.4 million

2010

2015/2016
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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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