2Q10 Results

August 3rd, 2010

Highlights
Slide 2

Sales volume excluding wood: + 22% over 1H09 and +8% over 1H08;

Wood sales volume: + 82% over 1H09 and +23% over 1H08;

Total net revenue: + 25% over 1H09 and 18% over 1H08;

Operating income (or EBIT): + 130% over 1H09 and +87% over 1H08;

Operating cash flow (or EBITDA): + 45% over 1H09 and +44% over 1H08;

Cash and cash equivalents: + 40% over 1H09;

Net debt: - 25% over 1H09;

Net Debt/EBITDA ratio fell to 2.6x in June 2010, down from 4.3x in June
2009.

Sales volume
Slide 3

Sales Volume *
(thousand tonnes)

1H10

1H09

1H10/1H09

Domestic
Market

570

438

30%

Exports

293

269

9%

Total

863

706

22%

* Excluding wood volume.

Note: Some figures in this table may not express an accurate result due to rounding.

Net revenue
Slide 4

Net Revenue
(R$ million)

1H10

1H09

1H10/1H09

Domestic
Market

1,342

1,022

31%

Exports

408

383

7%

Total

1,750

1,405

25%

* Including wood.
Note: Some figures in this table may not express an accurate result due to rounding.

Kraftliner prices
Slide 5
1,459
1,408

1,393

1,356

1,344

1,392
1,302
1,217

527

2Q07

529

3Q07

524

4Q07

516

1Q08

501

2Q08

487

3Q08

Quarter Average
Source: FOEX Kraftliner brown 175g/m

1,162

486

4Q08

462

1Q09

1,079

1,029

1,038

411

385

404

433

2Q09

3Q09

4Q09

1Q10

Kraftliner ( / tonne)

Kraftliner (R$ / tonne)

1,089

478

2Q10

Unitary cash cost (R$/tonne)

Slide 6
-5%

1,549

1,478
275

353

430

425

773

771

1H10

1H09

Variable Costs

Fixed Costs

SG&A

EBITDA and net result

Slide 7
400

35%

350
300

22%

250
200
150

27%

27%

219

199

29%

242

26%

30%

236

25%
20%

150

15%

100

10%

50

5%

0%

1Q09

2Q09

3Q09

4Q09

2Q10

306
183
31

50

4Q09

2Q10

-185
1Q09
EBITDA

2Q09

3Q09
EBITDA Margin

Net income (loss)

Working Capital (R$ million)

Slide 8

Working Capital

Dec/09

Jun/10

Current Assets

1,336.7

1,298.7

Current Liabilities

702.3

786.7

Working Capital

635.3

512.0

Reduction in working capital requirements of R$ 123 million in 1H10

Cash and indebtedness

Slide 8
Net Debt
(R$ million)

12/31/09

7000
Short term

568

12%

695

15%

Local currency

321

7%

492

11%

Foreign currency

247

5%

203

4%

Long term

4,142

88%

3,926

85%

Local currency

1,580

34%

1,683

36%

Foreign currency

2,562

54%

2,243

49%

3000

Gross debt

4,710

100%

4,621

100%

2000

Local currency total

1,901

40%

2,175

47%

Foreign currency total

2,809

60%

2,446

53%

Cash

2,370

2,052

Net debt

2,340

2,569

LTM - last twelve months

2.6 x

3.4 x

5.2

6000

4.3
5000

3.6

3.4
3.0

2,569

2,425

2,340

1000

2.6

2,804

4000

3,109

06/30/10

3,756

Debt (R$ million)

3Q09

4Q09

1Q10

2Q10

1Q09

2Q09

Net Debt (R$ million)

Net Debt / EBITDA (LTM)

6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

Strategy
Slide 9

Monte Alegre mill operating stably and with high quality

performance;

Investment in new printers for the corrugated boxes

conversion mills;

New boilers installation to replace the current fuel oil

consumption;

Investments planned for 2010 total approximately R$ 400

million.

Interim dividends payment totaling R$ 50 million, paid since

July 20th.

Investor relations:
Phone: (+55 11) 3046-8404 / 8415 / 8416
www.klabin.com.br
invest@klabin.com.br