Institutional Presentation - 2008

March 2009 March 2009

Shareholder Structure
12/31/2008

Family Control + Professional Management

C ommon
Monteiro Aranha; 20%

P referred
Treasury Stock; 3% Brazilian Investors; 41%

Klabin Irmos; 54%

Foreign Investors; 25%

Brazilian Investors; 26%

BNDESPAR; 31%

316,827,563 shares

600,855,733 shares Average daily trading volume R$ 7.9 million

IPO in 1979

Market Value of R$ 3 Bi

100% integrated
Lands 449,000 ha Eucalyptus 69,000 ha Pinus 155,000 ha OCC 300 Kt

Pulp

1.7 million t

Recycled paper
250 Kt

NBSK Wood 2,5 mi t

BEKP and UEKP

CTMP

Kraftliner 500 Kt

Coated boards 740 Kt

Industrial bags 160Kt

Corrugated Boxes 540 Kt

Notes: All figures refer to installed production capacity NBSK Northern Bleached Softwood pulp / BEKP Bleached Eucalyptus Kraft Pulp / UEKP Unbleached eucalyptus Kraft Pulp CTMP Chemi-thermomechanical Pulp / OCC Old Corrugated Container

Company profile
Net revenue: R$ 3,098 million in 2008
Forestry
Wood logs Kraftliner

Paper
Coated boards

Packaging
Corrugated boxes

Bags
Industrial Bags

#1 in Brazil 6%

#1 in Brazil 18%

#1 in Brazil 30%

#1 in Brazil 31%

#1 in Brazil 13%

LPB

FBB

CB

#1 in Brazil
Notes:

#2 in Brazil

#1 in Brazil

In 2008, 2% of net revenue was composed of other products. LPB Liquid Packaging Board / FBB Folding Box Board / CB Carrier Board

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) Ponte Nova (MG) 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)

Business and Markets

Forests
Forestry base
Land and Forests 12/31/2008 Company Land Planted Forests Pine Eucalyptus Native preserved forests thousand ha 449 224 155 69 187

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

Km 42

76 66 95

Wood
Housing starts

"US New Privately Owned Housing Units Started"

Seasonally Adjusted Annual Rate
Thousands

2,500 2,000 1,500 1,000 500 0

Jan-00

Jul-00

Jul-01

Jul-02

Jul-03

Jul-04

Jul-05

Jul-06

Jul-07

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Housing Units
Source: US Census Bureau

Average

Jan-08

Jul-08

Kraftliner Export Sales

Volume and Prices

thousand tonnes
160

US$ / tonne
900

797
140

679

719 657

800 700 600

120

100

500 400 300

80

60
200

40

100 0

20

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

Klabin Volume
Source: FOEX Kraftliner Brown 175 g/m

Kraftliner price (free delivered Europe)

Kraftliner
Cost competitiveness
US$ / tonne
400
352

Average cash cost (FOB)

378

350
306

300
276

286

250231

200

150

100

50

capacity
Monte Alegre Poland Brazil USA Canada Portugal Others Europe Sweden South Africa Others LA Russia France Austria

10 million t

20 million t

Fibers

Chemicals

Energy

Labor

Others

Source: RISI Analytical Cornerstone 4Q08

10

Kraftliner
Brazilian Exports 2008

Brazilian Export Market Share

Others; 13% Orsa; 3% Cocelpa; 4% Irani; 4%

Klabin Export destinations

Middle East 4% Africa 8% Far East 1%

Rigesa; 9%

Europe 33%

America 54%

Klabin; 76%

Source: Bracelpa

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Coated Boards
Klabin's Market Share Evolution
Sales in the domestic market (excluding LPB) 1995 / 2008 504 MM t
16 % 19 % 19 % 2 7% 10 % 8% 13 % 9% 7% 13 % 13 % 12 % 10 % 2 1% 15% 13 % 11%

508 MM t

3%

13%

18%

32%

34%

32%

32%

1995
S uza no

2000 Klabin
R ipa s a P a pirus

2007
Ibe m a It a pa g

2008
O ut ro s

Source: Bracelpa - 2008

12

Coated Boards Export Sales

Volume and Prices
thousand tonnes
80

US$ / tonne
1.200

1,102
70

1.100

1,047
60

1,014 970
1.000

50

900
40

800
30

700
20

10

600

500

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

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

Coated Boards List Price* (Delivered USA)

13

Coated Boards
FBB virgin fibers cost competitiveness
US$ / tonne
800 748 700

Average cash cost (FOB)

752

600 495 500 436 400 337 300

200

100

Monte Alegre

Canada

Finland

Poland

Brazil

Chile

Other Europe

Sweden

3 million t

USA

UK

capacity 7 million t

Fibers

Chemicals

Energy

Labor

Others

Source: RISI Analytical Cornerstone 4Q08

14

Global Boards Market

30 million tpy
100 k tpy

100 k tpy

20 k tpy 8,300 k tpy 9,600 k tpy

120 k tpy

10,900 k tpy

1,720 k tpy

Global market (including LPB) Klabins market (excluding LPB)

Source: Pory & Klabin LPB Liquid Packaging Board 15

Industrial Bags
Volume and main industries

Sales Volume
thousand tonnes

Consumption Main Industries

Others 13% Food 3% Seed 4% Chemical 4% Minerals 5% Building Industry 71%

40 35 30 25 20 15 10 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08

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Industrial Bags
Brazilian Consumption of Cement

Million 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

17

Corrugated Boxes
Brazilian Consumption per Main Industries and Market Share

Consumption Main Industries 2007

Market Share 2007

Other 26% Food 36% Beverages 4% Poultry 5% Fruits & Floriculture 8%

Ibria 3% INPA 3%

Others 31%

Klabin 20%

Rigesa 12%

Orsa 10% Adami 4% So Roberto 4% Penha 6% Trombini 7%

Chemicals 8%

Corrugated board sheets 14%

Total Brazilian shipments: 2.3 million tonnes

Source: ABPO
18

140 01/02 04/02 07/02

150

160

170

180

190

200

210

Brazilian shipments

Corrugated Boxes

Source: ABPO

179

10/02 01/03 04/03

157

07/03 10/03 01/04 04/04 07/04

176

Shipments
10/04 01/05 04/05 07/05 10/05 01/06 04/06 07/06 10/06 01/07 04/07

Thousand tonnes

180 182

Annual Average
07/07 10/07 01/08 04/08 07/08 10/08 01/09

187 189

160

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Financial Performance

20

Klabin's Performance

Sales Volume
1,000 tonnes

Net Revenue
R$ million

Net Revenue
US$ million

11%
3,097 2,796

10%
1,579 1,437 549 623
715

852 1,439 366 2244 1073

19%
1,713 462

2081

1251

888

956

2007

2008

2007

2008

2007

2008

Domestic Market

Export Market
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EBITDA and Net Debt

EBITDA Margin of 24% in 2008
30% 28% 28% 30% 26% 191 20% 155 242 18% 141 108

210

199

201 16%

1Q07

2Q07

3Q07 EBITDA

4Q07

1Q08

2Q08

3Q08

4Q08

Margem EBITDA (%)

Exchange rate (R$ / US$)

Average Closing

2.11 2.05

1.98 1.93

1.92 1.84

1.79 1.77

1.74 1.75

1.67 1.59

1.67 1.91

2.28 2.34

22

Capex and Net Debt

Investments and allocation in 2008

1,674 1.674
Corrugated Boxes, Industrial Bags and Others 9%

Forestry 52%

587 400 250

Paper 39%

2007

2008

2009*

* Forecast

23

Net Debt 12/31/08 Schedule

Debt
R$ million

The current cash position covers more than 30 months of debt maturities
1,931
Local Currency 46%

228
725
1,206

727
Foreign Currency 54%

1,703
479

479
Net Debt R$ 3,748 million Net Debt / EBITDA = 5.1x

Loans
2009 2010

Cash
2011
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Future

25

Growth Strategy
Increase production capacity from 2.0 million tpy to 3.5 million tpy 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

26

Klabin at a glance
Solid Solid Financial Financial Performance Performance Best global Best global LPB supplier LPB supplier

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

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

Alternative Alternative fuels research fuels research

Lowest CashLowest CashCost Producer Cost Producer

27

IR Contact IR Contact 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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