Institutional Presentation 3Q10

November, 2010

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.

History
Advanced on the packaging segment, producing corrugated Launched Klabin and Lafer families founded Klabin Irmos & Cia. production of newsprint and packaging paper boxes, bags and envelopes and became the major pulp, paper and paper products producer in Latin America Sale of non core assets and focus on packaging Start up MA 1100

1899
A company in the office supplies trading and printing businesses

1934

1947

1979
Professional management

2000

2003

2008

2010
Exame

Founded Klabin do Parana, the first integrated pulp and paper mill in Brazil

Acquisition of Igaras Papis e Embalagens

Magazine Best and Biggest Award Pulp and Paper

Shareholder Structure
01/11/2011

Common
Monteiro Aranha ; 20%

Preferred
Treasury; 4% Foreign Investors; 30%
Klabin Irmos ; 59%

Brazilian Investors ; 21%

BNDES; 17%

Brazilian Investors; 49%

316,827,563 shares

600,855,733 shares

KLBN4
Daily trading evolution
Average daily trading volume
R$ million/day
2 2 ,0

17 ,3 15 ,4 14 ,2 14 ,1

11,6 10 ,4 9 ,0 9 ,4 9 ,4 9 ,2 8 ,6 6 ,9 6 ,2 6 ,0 8 ,3 9 ,2 8 ,1 6 ,6 10 ,0

11,9

3 ,8 3 ,2

3 ,6

Jan/09

Jan/10

Mar/09

Mar/10

May/09

May/10

Dec/09

Sep/09

Aug/09

Nov/09

Dec/10

Jun/09

Jun/10

Sep/10

Apr/09

Apr/10

Aug/10

Feb/09

Feb/10

Nov/10

Jul/09

Jul/10

Oct/09

Oct/10

Corporate Governance
Joined BM&FBOVESPAs level 1 of Corporate Governance Tag along rights of 70% for preferred shares

Global Scale Corporate Credit Rating BB+ National Scale Brazil Rating brAA+

Level 1 ADRs program trading on OTCQX since March, 2010

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

Adopted insider trading policy for securities issued by the company and strict separation of Board of Directors and Executive Board Code of conduct adopted by all employees of the Company

A company 100% integrated

TOTAL LANDS 458 thousand ha
Eucalyptus

207 thousand ha planted

+ +

OCC
Pine 250 thousand

WOOD

PULP 1.7 million tonnes

Softwood

tonnes CTMP

Hardwood

3.0 million tonnes

PAPER 1.9 million tonnes

Coated board 710 K tonnes

Sack kraft 160 K tonnes

Kraftliner 800 K tonnes

Recycled 200 K tonnes *

COATED BOARDS

INDUSTRIAL BAGS

KRAFTLINER

CORRUGATED BOXES

Notes: All figures refer to installed production capacity. Production of paper packages generates 100 thousand tpy of edge trim, which returns to the process. * Does not includes 50 thousand tonnes per year from Ponte Nova Mill, that is temporarily closed. CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container

Company profile
Sales volume: 1,299 thousand tonnes in 9M10
Forestry Paper Conversion

Wood logs N/A

Kraftliner 21%

Coated boards 38%

Corrugated boxes Industrial Bags 30% 8%

LPB

FBB

CB

Notes: In 9M10, 3% of sales volume was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board

Company profile
Net Revenue: R$ 2,732 million in 9M10
Forestry Paper Conversion

Wood logs 7%

Kraftliner 13%

Coated boards 34%

Corrugated boxes Industrial Bags 31% 13%

LPB

FBB

CB

Notes: In 9M10, 2% of net revenue was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board

Businesses and Markets

10

Klabins Presence

Forestry Alto Paranapanema (SP) Planalto Catarinense (SC) Campos Gerais (PR)

Ports Suape (RN) Santos(SP) Paranagu (PR) Itaja (SC) So Francisco do Sul (SC)

Industrial Bags Lages (SC) Pilar (Argentina) Goiana (PE) 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) Papers Angatuba (SP) Correia Pinto (SC) Otaclio Costa (SC) Telmaco Borba (PR)

ARGENTINA

URUGUAI

11

Business Units
Forestry

Papers

Conversion

12

Forest
Forestry Base
Thousand ha Forests 09/30/2010 Planted Forests Eucalyptus Pine Native preserved forests Total Lands
Paran 139 59 80 123 302 Santa Catarina 64 7 58 63 140 3 9 3 7 So Paulo 5 5 Mato Grosso do Sul

Total 208 70 138 192 458

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

Km 42

76 66 95

13

Forest
Competitive advantage

Average Productivity (m3/ha/year) 09/30/2010 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

Klabin South Africa Chile Portugal Sweden Finland

0 5

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

Source: Pyry

14

Yield evolution
Eucalyptus
50 41 35 26

Forest
m / (ha * year)

55

Until 1973

1974 - 1985

1986 - 2005

2006 - 2008

2009 - 2011

Pine
36 24 39 42 46

Until 1969

1970 - 1989

1990 - 2004

2005 - 2008

2009 - 2011

15

Wood
Sales volume, net revenue and housing starts
Sales volume (thousand tonnes) Net revenue (R$ million) 194

2.352

1.355

115

854 682 513 536

817

69 42 42 53

72

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

Housing starts thousand units

1.297 1.151 1.053 1.025 868 658 528 540 587 559 617 602 589

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

Source: US Census Bureau

Quarter average

Housing starts

16

Coated Boards
Coated boards grades

Liquid Packaging Board (LPB)

Folding Box Board

Carrier Board

17

Coated Boards
Sales volume, net revenue and exports
Sales volume (thousand tonnes) 499 941 373
40% 47%

Net revenue (R$ million)

711

135
35% 65%

158
42% 58%

163
47% 53%

165
49% 51%

171
46% 60% 54% 53%

248

277

304

307

331

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10 Domestic Market Exports

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

Export Destinations 3Q10

Africa; 6% Asia; 11% Latin America; 30%

Europe; 25% North America; 28%

18

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 Jan/10 Apr/10 Jul/10

1,102

1,081

1,124

List price (US$/tonne)

970

1,014

1,047

765 Production cash cost (US$/tonne) 588 507 414

Others Labor Energy Chemical Fibers

784

717

532

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 2Q10

19

Coated Boards
Global production
MeadWestvaco Stora Enso International Paper Graphic Packaging Korsnas Klabin M Real Iggesund Potlatch Georgia Pacific 0 500 1.000 1.500 2.000 2.500 3.000 (Thousand tonnes)

6th largest producer of virgin fiber coated boards

Liquid Packaging Board

Folding Box Board

Carrier Board

Solid Bleached Sulphate

Korsnas Stora Enso Klabin International Paper MeadWestvaco Potlatch 0 500 1.000 1.500 2.000 (Thousand tonnes)

3rd largest supplier of Tetra Pak

Source: Pyry, 2008

20

Liquid packaging board

UHT Milk Consumption
World
UHT Milk Consumption versus total milk consumption Country France Spain Brazil Germany Italy Market Share 95% 94% 75% 65% 61% Country Canada USA UK Japan South Korea Market Share 9% 10% 11% 12% 24%

Brazil
UHT milk consumption versus total milk consumption (million litters)
6.660 5.080 3.615 4.353 3.600 3.100 1.700 730 5.230 5.700 4.220 5.993 5.050 4.403 5.308 7.103 7.042

5.252

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Total milk consumption

Source: ABLV (Brazilian Association of UHT Milk) and Tetrapak December, 2009

UHT milk consumption

21

Folding box board

Market share evolution and boards composition
Market share in the domestic market
(excluding LPB)

2007 2008 2009 2010 *

13% 18% 25% 26%

87% 82% 75% 74%

504 Kt 508 Kt 507 Kt 444 Kt

Others
75

Klabin
Source: Bracelpa

(*) From January to September, 2010 87 82

Coated boards composition

Triple layer coating Kraft pulp bleached, short fiber Kraft pulp short/long fiber mix + CTMP Kraft pulp long fiber Starch
22

Kraftliner
Sales volume, net revenue and OCC price
Sales volume (thousand tonnes) 284 279 342
58% 83%

Net revenue (R$ million)

279

108
78% 22%

109
65%

110 85
74% 47% 53%

85
48% 52% 17% 42%

96

106

117

104

122

35%

26%

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10 Domestic Market Exports

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

B razilian O C C delivered p rice

R$ / t onne 547 518 495 401 355 317 346 255 240 216 256

383

465

3Q 07

4Q07

1Q08

2Q08

3 Q 08

4Q 0 8

1Q09

2Q09

3Q09

4Q 09

1Q 10

2Q10

3 Q 10

S o urce : B ra ce lpa

Quart er average

Mont hly volume

23

Kraftliner Exports
Cash cost and list price
Average Cash Cost (FOB) and List Price Evolution

Jan07 Apr07

Jul07

Oc t07 Jan08 Apr08

Jul08 Oc t08 Jan09 Apr09

797

Jul09

Oc t09 Jan10 Apr10

Jul10

List price (US$/tonne)

719 713 634 610 547

679

Production cash cost (US$/tonne)

504 441 385 335 299

Others Labor Energy Chemicals Fibers

362

capacity

Klabin MA Poland

United States

South Africa

ustria Germany

Sweden

Spain

Others Europe

Canada

Russia

France

Portugal

Finland

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 2Q10.

24

Corrugated Boxes
Sales volume, net revenue and consumption distribution
Sales volume (thousand tonnes) 386 333 690 Net revenue (R$ million)

853

117

124

119

135

132 241

256

249

290

314

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

Consumption distribution
(September/10)
Others 21% Food 38%

Corrugated Boards 15%

Tobaccos 3% Beverages 4% Poultry Fruits & 4% floriculture Source: ABPO (Brazilian Association of Corrugated Boxes) 7%

Chemical 8%

25

Corrugated Boxes
Brazilian shipments and market share
Brazilian Corrugated Shipments
thousand tonnes 216 201 218

209 198 197 188 181 185 197 184 168 183

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

Quarter average
Source: Brazilian Association of C orrugated Boxes

Monthly volume

Market Share 2008 (%)

20

12

10

3 3

31

Klabin

Rigesa

Orsa

Trombini

Penha

So Roberto

Adami

INPA

Ibria

Outros Others

Source: ABPO (Brazilian Association of Corrugated Boxes)

26

Industrial Bags
Sales volume, net revenue and cement consumption
Sales volume (thousand tonnes) 108 95 321 Net revenue (R$ million) 356

34

35

33

36

38

111

108

109

119

128

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

3Q09 4Q09 1Q10 2Q10 3Q10 9M09 9M10

Brazilian cement consumption million tonnes

5,3 4,7 4,0 4,0 4,2 3,9 4,3 3,9 4,1 4,6 4,4 4,5 4,7

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

Quarter average
Source: Nation Labor Union of C ement Industry

Monthly consumption

27

Industrial Bags
Export destinations and consumption per industries

Export Destinations 2009

North America 6% Others 2%

Consumption Main Industries 2009

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

Food 10%

Latin America 92%

Building Industry 72%

Source: Klabin

28

Financial Performance

29

Financial Highlights

R$ million
Sales volume
(thousand tonnes - excluding wood)

3Q10
436
29%

2Q10
430
30%

3Q09
402
35%

3Q10 / 2Q10

3Q10 / 3Q09

9M10 9M09
1,299
32%

1%
-1 p.p.

8%
-6 p.p.

1,109
37%

% Exports

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)

983
35%

905
31%

750
16%

9% -2 p.p. 5% 32% 4 p.p.

31% 6 p.p. 0%

2,732 32% (378) 506 19% 18 335 730 27% 1,535 1.78 344

2,155 18% (376) 7 0% 520 391 529 25% 1,036 2.08 257

(136) 203
21%

(123) 154
17%

(123) (0)
0%

21 p.p. -17%

144 226 252

26%

(46) 67 236
26%

174 125 199

27%
235% 7%

80% 27% -1 p.p.

562 1.75 117

506 1.79 106

401 1.87 84

11% -2% 10%

40% -6% 39%

30

Financial Highlights

R$ million
Sales volume
(thousand tonnes - excluding wood)

2007
1,437

2008
1,579

2009
1,545

2009 / 2008

2008 / 2007

-2% -4%

10% 11% -6 p.p.

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)

2,796 33% (452) 474 17% 351 603 718 26% 1,440 1.95 367

3,097 26% (485) 325 10% (905) (349) 729 24% 1,714 1.84 462

2,960 26% (466) 309 10% 542 333 747 25% 1,486 1.99 358

-4% -5%

7% -31% -7 p.p.

2% 1 p.p. -13% 8% -23%

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

31

Sales volume*
thousand tonnes
1,109
+17%

1,299

+3%

408
32% 68%

421

700

37% 63%

878

+25%

9M09
Domestic market
(*) Excluding wood

9M10
Exports

32

Net Revenue*
R$ million
+27%

2,155

2,732

+14%

539 1,616
25% 75% 22% 78%

612 2,120

+31%

9M09
Domestic market
* Including wood

9M10
Exports

33

Exports destination
9M09
North America 7% Africa 7% Latin America 37%

9M10
North America 6% Africa 5%

Sales volume

Asia 19%

409 thousand tonnes

Europe 17%

421 thousand tonnes

Latin America 44%

Europe 30%

Asia 28%

North America 7%

Africa 5%

North America 6%

Africa 5%

Asia 17%

Net revenue

US$ 257 million

Latin America 49%

Europe 16%

US$ 344 million

Latin America 42%

Europe 22%
Asia 31%

34

EBITDA
R$ million
350 27% 300 25% 250 22% 200 199 180 150 150 100 219 242 236 252 27% 26% 26% 26% 24% 22% 20% 18% 16% 14% 50 12% 0 1Q09 2Q09 3Q09 EBITDA 4Q09 1Q10 EBITDA Margin 2Q10 3Q10 10% 29% 30% 28%

35

Cash Cost Composition

9M10
Freights; 11% Labor/Services; 30% Energy/Oil; 13%

R$ 1,997 mi

Chemicals; 15% Wood/Fibers; 16% Maint. Stopage/ Others; 15%

36

Unitary Cash Cost

R$/tonne
+3%

1,493
333

1,538
287

409

449

751

802

9M09
Variable costs Fixed Costs

9M10
SG&A

37

Working Capital
R$ million
Reduction in working capital requirements of R$ 210 million in 9M10.
1.900 1.800 1.700 1.600 1.500 1.400 1.300 1.200 1.100 1.000 900 800 700 600 500 400 300 200 100 0

38% 34%

37%

40%

26% 1,174 1,013

30%

23%

21% 16%
20%

1,108 782 714 680

10%

573
0%

-10%

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

Operating Working Capital (OWC)

OWC / Net Revenue

38

Indebtedness
Net Debt evolution
Net Debt R$ 2.1 billion Net Debt / EBITDA = 2.2x Average Maturity = 40 months Debt cost Local currency: 9.9 % p.y. Foreign currency: 3.7% p.y. + FX

6000

Net Debt (R$ million)

5.2
5000

5.3
5

4.7 4.4

4000

3.3
3000

3.5
3,766 3,786 3,192 2,867

3.7

3.6 3.1 2.8

2.8 2.4 2.0

2,096 1,851 1,476

2,886 2,676 2,528 2,462

2.2
2,106

2000

1.8

2,396

2,378

1000

1,278

0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Net Debt (R$ million)

Net Debt / EBITDA (LTM)

39

Loan Maturity Schedule

09/30/10
Current cash position cover next 40 months of debt maturities
R$ million

2,731

Cash and equivalents

788

786

844

648

680 470 308

249
Sep'10 4Q10 2011 2012 2013

64
2014 2015 2016 2017 / 2022

Debt covered by the cash Non covered debt

40

Enterprise Value
EV / EBITDA *

11.2 x 10.0 x 9.3 x 7.0 x

EV (R$ milhes)
8,050 7,459 6,748 6,610

5,954

2,982

4,783 4,504

3,766 2,096 2,676 2,106

2007

2008
Net Debt

2009
Market Value

Set'10

* Last 12 months 41

Capex
R$ million
The Company invested R$ 248 million in 9M10

1,674

Conversion/ Others 14%

587 247

350

Forestry 34%

Papers 52%

248

2007

2008

2009

2010*

*Estimated for 2010 42

Dividend and Treasury Stocks

Dividends Payment
(R$ million)

Treasury Stocks

283 237 192

177 123

The Company has 16,907,900 stocks in treasury

2006

2007

2008

2009

2010*

43

Strategy

44

Sustainable development
Economically viable, socially just and environmentally correct.

Economic

En vir on me nt al

l cia So

45

Evolution of forest productivity

Forest base for the new pulp mill

Yield of eucalyptus and pine

ADt / (ha x year)

21 16 14 11 12 10 13 14

2006 - 2008

2009 - 2011

2012 - 2014

from 2015

Eucalyptus

Pine

ADt Air dried tonne of pulp

46

Strategy
Short term Forestry
Planting of 20,000 hectares and forest maintenance: R$ 120 million; Harvesting system, machines and equipments : R$ 8 million.

Papers
Monte Alegre
High-voltage transmission line: R$ 60 million; Replacement of line 1 debarker: R$ 8 million.

Otaclio Costa
Biomass boiler: R$ 35 million; Technological update of evaporation line: R$ 35 million.

Correia Pinto
Acquisition of a new biomass boiler; Technological update of the recovery boiler: R$ 12 million
47

Strategy
Short term

Conversion
Corrugated Boxes
R$ 42 million investment in new printers, technological update of corrugators, material handling lines and the cargo unitization and palletization equipment; New R$ 98 million investment approved in October for acquisitions of new corrugator, a new printer, and technological updates.

Industrial Bags
New production line of multi-layered bags was acquired and will be installed at Lages plant in Santa Catarina, with startup expected in the first half of 2011.

48

Strategy
Long term
Capacity Expansion Construction of a global-scale pulp plant with 1.5 million tonnes per year capacity; Installation of a new coated board machine with 500,000 tonnes per year capacity, expanding total paper production to 2.4 million tonnes per year

Evolution of production capacity

tonnes per year

1.9 million 2010

3.4 million 2015/2016

49

IR Team IR Team Phone: (11) 3046-8404 / 8415 / 8416 Phone: (11) 3046-8404 / 8415 / 8416 www.klabin.com.br www.klabin.com.br invest@klabin.com.br invest@klabin.com.br
50