kpresentation2008 2q ing

8/6/2019 KPresentation2008 2Q Ing

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Forward LookingForward LookingStatementStatement

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.


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3

ContentsContents

Expansion of Coated Boards 61

Businesses and Markets 15

Company Profile 4

Financial Performance 47

Future 65


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4

Company ProfileCompany Profile

A forestry based company focused on wood, coated boards,packaging paper and paper based packaging products:

Packaging Paper Paper Based Packaging

Net Revenue: US$ 897 million in 1H08

Forestry

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$ 3.4 billion (30/06/2008)

Wood logs

7%

Coated Boards

30%

Industrial Bags

13%

Corrugated Boxes

31%

Kraftliner

19%


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5

HistoryHistory

Klabin and Lafer

families founded

Klabin Irmos &

Cia.

A company in the

office supplies

trading andprinting businesses

Already

positioned

among the

largest

Brazilian

paper

producers

Launchedproduction of

newsprint and

packaging

paper

Advanced on the packaging

segment, producing

corrugated boxes, bags and

envelopes and became the

major pulp, paper and paper

products producer in Latin

America

Acquisition of

Igaras Papis e

Embalagens

Consolidated

Leadership

Sale of noncore assets

and focus on

packaging

MA 1100

Expansion

Project

1899 2008

Founded Klabin do

Parana, the first

integrated pulp andpaper mill in Brazil

Capacity of

2 million

tonnes

With 109 years of history and tradition, Klabin grows sustainably,supported by projects structured towards value creation.

1934 70s 2000 2003 2006194720s

Start up

MA 1100


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6

Corrugated

Boxes

540,000 tpy

FinishedProducts

(*)

Liquid Packaging Board

740,000 tpyFolding Box Board

Carrier Board

Wood - 2.5 million tpy

100%

Integrated

Kraftliner770,000 tpy

Sack Kraft155,000 tpy

CoatedBoards

740,000 tpy

OCC380,000 tpy

2.0 million tpy

RecycledPaper

300,000 tpy

100%Integrated

Exports 410,000 tpy

35%

Integrated

100%Integrated

(*) All figures refer toinstalled production capacity

Industrial Bags155,000 tpy

Domestic

and

Export

Sales

Lands

441,000 ha

Forests

PlantedForests

Pine

156,000 ha

Eucalyptus62,000 ha

Integrated Business ConceptAfter MA 1100 Expansion ProjectAfter MA 1100 Expansion Project

Pulp

NBSKBEKP

CTMP

1.7 milliontpy

Exports 410,000 tpy

Domestic Market 90,000 tpy


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7

Preferred

BNDESPAR

31%

ForeignInvestors

29%

Brazilian

Investors38%

600,855,733

Shareholder StructureShareholder Structure30/06/200830/06/2008

Total Shares (Common + Preferred)

Local Price Share (KLBN4) 30/06/08

Book Value (30/06/08)

Average Daily Trading Volume - 2Q08

917,683,296

R$ 5.99

R$ 3.26

R$ 8,0 million

Common

KlabinIrmos

52%

MonteiroAranha

20%

Brazilian

Investors28%

316,827,563

Treasury

Stock2%


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8

Klabin'sKlabin's presencepresence

Pulp and Paper Mills

Forestry

Industrial Bags

Corrugated Boxes

Recycled Papers


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i bili li


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Sustainability PolicySustainability PolicyPrinciplesPrinciples

1. aiming at sustained improvement of results,continuously perfecting processes, products and services so as to meet

customers, employees, shareholders, suppliers and communities expectations.

2. , in a

sustainable way and without any damage to either natural or associatedecosystems.

3. of pulp fiber in its production chain.

4. by means of reducing environmental impact from

effluents, solid residues and emissions to air.

5. , and to strive for

continuous improvement of their working environment, health and safety.

6. with focus on the communities where the

Company is present.

7. and regulations applicable to product, environment, health

and safety.

To seek competitive quality,

To ensure supply of its industrial units with wood from planted forests

To practice and promote the recycling

To prevent and avoid pollution

To promote employees personal and professional advancement

To exercise social responsibility

To comply with laws


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11

Investment ThesisInvestment Thesis

Outstanding

ProductQuality

OutstandingOutstanding

ProductProductQualityQuality

MarketLeadership and

GrowthOpportunities

MarketMarketLeadership andLeadership and

GrowthGrowthOpportunitiesOpportunities

TopSustainability

Standards

TopTopSustainabilitySustainability

StandardsStandards

One of theGlobal Lowest

Cash-CostProducer

One of theOne of theGlobal LowestGlobal Lowest

CashCash--CostCostProducerProducer

SolidFinancialPerformance

SolidSolidFinancialFinancialPerformancePerformance

Successful R&DTrack-Record

Successful R&DSuccessful R&DTrackTrack--RecordRecord


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M k t L d hi dMarket Leadership and


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14

Market Leadership andMarket Leadership andGrowth OpportunitiesGrowth Opportunities

1. Market leadership in all segments in Brazil with space to grow:

20% of Brazils paper production

55% market share in sacks

20% market share in boxes

50% market share in Kraftliner

17% market share in Coated Boards

100% market share in Liquid Packaging Boards (LPB)

2. Largest paper exporter more than 50 countries

3. Regular exporter more than 25 years

4. Coated boards growing twice the market average in Brazil


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Largest Producers of World


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16Source: RISI

Largest Producers of Worldpaper and board - 2007

1. USA 84,1

2. China 65,03. Japan 31,0

4. Germany 22,7

5. Canada 18,2

6. Finland 14,1

7. Sweden 12,1

8. South Korea 10,7

9. Italy 10,0

10. France 10,0

11. Brazil 9,0

Total 389,5

Country Million Tons

Production of PackagingProduction of Packaging


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17

Rigesa9%

Others35%

Klabin35%

Trombini4%

Orsa8%

Inpa3%

S Roberto3%

Irani3%

Source: RISI and Bracelpa

Production of PackagingProduction of PackagingPaperPaper -- 20072007

World ProductionWorld Production Production BrazilProduction Brazil

Africa/Oceania

5%

Europe22%

LatinAmerica

6%

Noth America27%

Asia40%

3,6 million tonnes128 million tonnes

I t CI t C W ldW ld ff P k iP k i


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Smurfit-Stone12%

Klabin2%

Weyerhaeuser

10%

International Paper11%

Koch6%

Inland6%

Others53%

Source: RISI

Inst. Cap.Inst. Cap. WorldWorld ofofPackagingPackagingPaperPaper -- 20072007

ContainerboardContainerboard KraftlinerKraftliner

Others80%Nine Dragons3%

Weyerhaeuser4%

Smurfit-Stone5%

Klabin1%

InternationalPaper3%

Smurfit KappaGroup

4%

35 million tonnes140 million tonnes

Global Packaging MarketGlobal Packaging Market


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19

Brazilian Market

Metallic21%

Plastic

32%

Paperboard31%

Paper 8%

Glass 6%

Wood 2%

Global Packaging Market

Metallic

20%

CoatedBoards 9%

Others 5%

Glass 10%

Rigid

Plastics

18%

Flexibles

17%

Corrugated

19%

Bags 2%

Global Packaging MarketGlobal Packaging MarketEUR 400 billionEUR 400 billion

30 % of the WorldPackaging Market

Market of EUR 120billion per yearSource: Pory

Source: IBGE

40% of the Brazilianmarket

Forestry based packaging:Forestry based packaging:

Global Market


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20Source: RISI

Global MarketGrowth of Paper Production2007-2020

Average Growth of Global Paper Production - 2007 - 2020

2,1 %

1,0%

3,3% 3,3%

1,9%

0

0,5

1

1,5

2

2,5

3

3,5

1 50 99

Accumulated Participation in Global Production 2007 (%)

AverageGrowth

inProduction(%)

Print and Write Newspaper Tissue Containerboard Others

CAGR Average = 2,5%


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WoodWood


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22

WoodWoodHousing startsHousing starts

"US New Privately Owned Housing Units Started"Seasonally Adjusted Annual Rate

Thousands

900

1.100

1.300

1.500

1.700

1.900

2.100

2.300

2.500

Jan-00

May

-00

Sep-00

Jan-01

May

-01

Sep-01

Jan-02

May

-02

Sep-02

Jan-03

May

-03

Sep-03

Jan-04

May

-04

Sep-04

Jan-05

May

-05

Sep-05

Jan-06

May

-06

Sep-06

Jan-07

May

-07

Sep-07

Jan-08

May

-08

Housing Units Average

Source: US Census Bureau

ForestsForests


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ForestsForestsForestry baseForestry base

Company Land

Planted Forests

thousand ha

441

218

Pine

Eucalyptus

156

62

183

Land and Forests 30/06/2008

Native preserved forests

Paran

Santa Catarina

Km

58

76

66

Average Hauling Distance

So Paulo

Correia Pinto

Otaclio Costa

100

ForestsForests


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ForestsForestsCompetitive advantageCompetitive advantage

Softwood - Rotation (years)

20

25

25

35

45

100

0 20 40 60 80 100 120

Klabin

South Africa

Chile

Australia

USA

Sweden

Hardwood - Rotation (years)

7

9

11

13

37

37

0 5 10 15 20 25 30 35 40

Klabin

South Africa

Chile

Portugal

Sweden

Finland

Source: Pyry

Paran

Santa Catarina

Eucalyptus

46

21

38

Average Productivity (m3/ha/year) 30/06/2008

So Paulo

Pine

33

35

25

K ftli eKraftliner


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KraftlinerKraftliner

Pioneerism and leadershipin the production ofkraftliner in Latin

America

Largest producer andexporter of packaging

paper - 74% ofBrazilian exports

6% share of the globalmarket, exporting to

more than 50 countries

Supplies Klabins 9corrugated boxes

converting plants



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0

100

200

300

400

500

600

700

800

900

Jan-04 Jan-05 Jan-06 Jan-07 Jan-08

Kraftliner price (free delivered) Average

KraftlinerKraftlinerPrice evolutionPrice evolution

Source: FOEX/Kraftliner Brown 175 g/m2

2004 2005 2006 2007 2008

541 539

602

720

US$/tonne

0%12%

20%

7818%

Coated BoardsCoated Boards


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Carrier Board

Liquid PackagingBoards (LPB)

Folding BoxBoards

Carrier Boards



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28Source: Bracelpa

Klabin'sKlabin's Market Share EvolutionMarket Share Evolution

1995 - 410 kt

Suzano32%

Ibema8%

Papirus

13%Itapag

10%

Ripasa21%

Others16%

2000 - 513 kt

Suzano34%

Ibema7%

Papirus

13%

Itapag

9%

Ripasa15%

Others19%

Klabin3%

2005 - 582 kt

Suzano31%

Ibema10%

Papirus13%

Itapag6%

Ripasa

12%

Klabin15%

Others13%

2008* - 252 kt*Jan-Jun

Suzano32%

Ibema11%

Papirus12%

Others27%

Klabin18%

Brazilian Board Shipment (excluding LPB)Brazilian Board Shipment (excluding LPB) 1995 / 20081995 / 2008

Global Board MarketGlobal Board Market


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Global Board MarketG o a oa d a e28 million tpy28 million tpy

Klabin focus on the virgin fiber based segment, whichKlabin focus on the virgin fiber based segment, which

amounts to 10 million tpy:amounts to 10 million tpy:

-- Liquid Packaging Board: 3.1 million tpyLiquid Packaging Board: 3.1 million tpy

-- Carrier Board: 2.7 million tpyCarrier Board: 2.7 million tpy

-- Folding Boxboard: 4.3 million tpyFolding Boxboard: 4.3 million tpy

North AmericaNorth America8.48.4

Latin AmericaLatin America1.41.4

Africa and Middle EastAfrica and Middle East0.60.6

EuropeEurope5.65.6

Eastern EuropeEastern Europe1.51.5

AsiaAsia10.510.5

OCCOCC (Old Corrugated Container)(Old Corrugated Container)


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30

0

100

200

300

400

500

600

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

OCC Price Average

392

429

405

479

379

473

540

261

360 342

423

( g )( g )

Price evolutionPrice evolution

Source: Klabin

R$/tonne



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Attributes Softwood Stiffness

Printability Hardwood + 3 coating

Runnability State of the art equipment

Starch

Unbleached Pulp softwood fibers

Unbleached Pulp mixed hard/soft fibers + CTMP

Bleached Pulp mixed hard/soft fibers

Triple clay coating

StructureStructure


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Coated BoardsCoated Boardsi k


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Aseptic package structureAseptic package structure

The layers of aseptic package,from the outer layer inwards:

Polyethylene

Paper

Aluminium foil

Polyethylene

Polyethylene

Polyethylene

Printed design

Paper makes the packages stiff

Plastic renders them liquid-tight

Aluminium foil blocks out light and oxygen

Coated BoardsCoated BoardsG dG d


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2)) Carrier BoardCarrier Board

Packaging ProductsPackaging Products

Wet tear resistanceWet tear resistance

PrintabilityPrintability

RunabilityRunability

Technical AttributesTechnical Attributes

BeveragesBeverages

Tins and bottlesTins and bottles

Dairy ProductsDairy Products

Plastic bottles and potsPlastic bottles and pots

GradesGrades


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Coated BoardsCoated BoardsBrazilian Consumption per MainBrazilian Consumption per Main


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Food/

Beverages93%

Personal

Care

3%

Others4%

p pp pIndustries and Market ShareIndustries and Market Share

Source: BRACELPA

ConsumptionConsumptionMain IndustriesMain Industries

20062006

Market ShareMarket Share20072007

Includes LPBIncludes LPB

Suzano

25%

Ripasa/MD

8%

Papirus9%

Klabin38%

Ibema

10%Miguel Forte

4%Bonet

3%

Ramenzoni

2%

Nobrecel

1%

Coated BoardsCoated BoardsFree delivered (USA) priceFree delivered (USA) price


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0

200

400

600

800

1.000

1.200

Jan-04 Jan-05 Jan-06 Jan-07 Jan-08

Coated Board Price Average

Free delivered (USA) priceFree delivered (USA) priceevolutionevolution

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

2004 2005 2006 2007 2008

847897

9361,003

US$/tonne

1,031



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Coated Boards

Source: Pyry

0 500 1,000 1,500 2,000 2,500 3,000

MeadWestvaco

Stora Enso

International Paper

Graphic Packaging

Korsnas/Frovi

Klabin

M Real

Iggesund

Potlatch

Georgia Pacific

1,000 tpy

Liquid Packaging Board Folding Box Board Carrier Board Solid Bleached Sulphate

KlabinKlabin -- 66thth Largest Producer of Virgin Fiber Coated BoardsLargest Producer of Virgin Fiber Coated Boards



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40Source: Pyry

0 200 400 600 800 1,000 1,200 1,400 1,600

Stora Enso

Korsnas/Frovi

Klabin

International Paper

Potlatch

MeadWestvaco

Graphic Packaging

M Real

Iggesund

1,000 tpy

Liquid Packaging Board Folding Box Board Carrier Board

KlabinKlabin 33rdrd Largest Tetra Pak Supplier in 2009Largest Tetra Pak Supplier in 2009

Industrial BagsIndustrial Bags


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Recognized for highquality products andcustomized customer

service

Market leadership in thesegments of multiwall

and SOS bags

Supplies for a variety ofindustries, highlightingthe building industry,

food, chemical productsand agribusiness


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Industrial BagsIndustrial BagsBrazilian Consumption of CementBrazilian Consumption of Cement


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Brazilian Consumption of CementBrazilian Consumption of Cement

Million tonnes

2,0

3,0

4,0

jan feb mar apr may jun jul aug sep oct nov dec

2006 2007 2008

Source: SNIC

Corrugated BoxesCorrugated Boxes


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Leadership of thecorrugated boxesmarket in Brazil

Largest production

capacity in Brazil withnine corrugated boxesconverting plants

Klabins products reachevery industry sector,

providing totalprotection for packaged

products transported


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Corrugated BoxesCorrugated BoxesBrazilian shipmentsBrazilian shipments


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46

Thousand tonnes

140

150

160

170

180

190

200

210

Jan-

02

May-

02

Sep-

02

Jan-

03

May-

03

Sep-

03

Jan-

04

May-

04

Sep-

04

Jan-

05

May-

05

Sep-

05

Jan-

06

May-

06

Sep-

06

Jan-

07

May-

07

Sep-

07

Jan-

08

May-

08

Shipments Annual Average

179

157

176180 182

187

Source: ABPO

189

p


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Income StatementIncome StatementConsolidatedConsolidated


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R$ Million 2005 2006 2007 1H07 1H08 2Q08

Volume (1,000 tonnes) 1.377 1.393 1.437 737 798 412

Net Revenue 2.706 2.713 2.796 1.405 1.521 780

Gross Profit 1.025 963 953 514 427 198

Gross Margin 38% 35% 34% 37% 28% 25%

Total Operating Expenses (516) (497) (455) (232) (239) (123)

Operating Profit (before fin Results) 356 598 842 282 187 75

Net Financial (Expenses)/Revenue (154) 132 345 208 163 174

Net Income (loss) 309 473 621 372 252 175


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Klabin'sKlabin's PerformancePerformance2Q082Q08


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50

780740 715

2Q08 1Q08 2Q07

412386 378

2Q08 1Q08 2Q07

Does not include wood Includes wood

Net RevenueNet RevenueR$ millionR$ million

Sales VolumeSales Volume1,000 tonnes1,000 tonnes

Volume and Net Revenue growingVolume and Net Revenue growing

PerformancePerformance 2Q082Q08Per MarketPer Market


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DomesticDomestic

MarketMarket63%63%

ExportsExports

37%37%

Does not include woodDoes not include wood

DomesticDomestic

MarketMarket76%76%

ExportsExports

24%24%

Includes woodIncludes wood

R$ 1405 millionR$ 1405 millionR$ 780 million412 thousand tonnes

Net RevenueNet RevenueSales VolumeSales Volume

PerformancePerformance 2Q082Q08Per ProductPer Product


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Does not include woodDoes not include wood Includes woodIncludes wood


CoatedCoated

BoardsBoards

32%32%

IndustrialIndustrial

BagsBags

8%8% KraftlinerKraftliner

28%28%

OthersOthers

2%2%

CorrugatedCorrugated

BoxesBoxes

30%30%

CoatedCoated

BoardsBoards

30%30%

IndustrialIndustrial

BagsBags

13%13%


16%16%

WoodWood

7%7%

CorrugatedCorrugated

BoxesBoxes

32%32%

OthersOthers

2%2%

R$ 780 million412 thousand tonnes

Exports DestinationExports Destination1H081H08


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US$ 233 million314 thousand tonnes


EuropeEurope

28%28%

AfricaAfrica

9%9%

LatinLatin

AmericaAmerica

43%43%

AsiaAsia

15%15%

NorthNorth

AmericaAmerica

5%5%

AsiaAsia

16%16%

EuropeEurope

25%25%

NorthNorth

AmericaAmerica

6%6%AfricaAfrica

7%7%LatinLatin

AmericaAmerica

46%46%

EBITDAEBITDA


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179

205

138

200200203

184

170169

186

23%

28%

21%

28%28%29%26%

24%25%

29%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08

EBITDA - R$ million EBITDA Margin

2Q08 EBITDA Margin of 23%2Q08 EBITDA Margin of 23%

Financial RatiosFinancial RatiosKlabin & CompsKlabin & Comps


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Highest margins + Lowest multiples + New plant start-up =

Upside Opportunity

Highest margins + Lowest multiples + New plant startHighest margins + Lowest multiples + New plant start--up =up =

Upside OpportunityUpside Opportunity

USA Brazil USA USA Finland Finland

NET SALES (mm USD) 21,890 1,444 6,906 2,316 18,332 13,755

EBITDA (mm USD) 2,740 363 920 441 1,934 2,055

EBITDA Margin (%) 12.5% 26.5% 13.3% 19.0% 10.9% 15.4%

Net Income (mm USD) 1,168 304 285 170 96 108

Net Margin(%) 5.3% 22.2% 4.1% 7.3% 0.5% 0.8%

Projected EPS Growth 2.0 0.1 0.2 0.4 0.4 0.8

P/E 2008 13.9 13.6 25.4 16.5 20.0 16.7

P/E 2009 10.9 13.0 19.0 14.1 15.6 14.4

Sou rce: Bloom berg , Reut ers, Yahoo! Finance, Goog le Finance, Com panies

CapexCapex and Net Debtand Net Debt


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524

322

750

307

1,914

836

1,354

2006 2007 1H08 2008E

Capex MA 1100

702

2,007

2,272

2006 2007 1H08

1.0xEBITDA

2.7x

EBITDA

Net DebtNet DebtR$ millionR$ million

CapexCapexR$ millionR$ million

MAMA--1100 Project: Final phase of implementation1100 Project: Final phase of implementation

3.1x

EBITDA

Debt AmortizationDebt AmortizationScheduleSchedule -- 30/06/0830/06/08


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Foreign Currency 58 28 13 41 41 172 271 417 471 247 340

Local Currency 2.035 17 14 31 367 446 308 293 269 268 384

Cash 3Q08 4Q08 2008 2009 2010 2011 2012 2013 2014After2015

2,093

72

408

618

27

R$ 4,365 Million

ST: 5% LT: 95%

10.5%

5.1%

Average Debt Maturity Average Annual Cost

Total 52 months

Local 47 months

Foreign 59 months

45

579

Low debt repayment in 2008Low debt repayment in 2008

710 740

515

724

Participation of Local andParticipation of Local andForeign DebtForeign Debt -- 30/06/0830/06/08


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Others

28%

Trade

Finance

72%

Other

21%

BNDES79%

Foreign Currency (46%)Foreign Currency (46%)Local Currency (54%)Local Currency (54%)

Balanced local and foreign currency debtBalanced local and foreign currency debt

Net Income andNet Income andDividendsDividends


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59

309

473

621

172

231

293

2005 2006 2007

Net Income Declared Dividends

R$ million

3.5%*

6.1%*

6.0%*

* Dividend Yield

ShareShares Performance ats Performance atBovespaBovespa


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4,4 4,4

3,6

7,1

5,8

4,04,3

5,0

6,4

5,5 5,6

6,9

6,2

5,4 5,55,0

4,4

5,7

3,63,43,4

2,2 2,2

2,6

2,8

3,03,2 3,1

2,7

3,5

3,73,6

3,23,0

3,1

3,5

0,0

2,0

4,0

6,0

8,0

10,0

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 0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

Daily Trading Volume Market Capitalization

US$ million US$ billion

Market capitalization and daily trading volumeMarket capitalization and daily trading volume


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Expansion of Coated BoardsExpansion of Coated Boards

MA 1100 Project


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Brownfield ProjectBrownfield Project

Progressive start up of equipmentsProgressive start up of equipments

New board machine moving forward along the industrial andNew board machine moving forward along the industrial andcommercial learning curvescommercial learning curves

Start up of the new power boiler (Biomass)Start up of the new power boiler (Biomass) Completed the energy source of the MonteCompleted the energy source of the Monte AlegreAlegre millmill

70% of electric energy consumption provided by self70% of electric energy consumption provided by self--generationgeneration

Reduction of variable costsReduction of variable costs

Fixed cost does not grow by the same amount of theFixed cost does not grow by the same amount of thecapacity expansioncapacity expansion


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Electrical Energy


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PurchasedE.Energy

35%

Hidro-Electric27%

Biomass38%

PurchasedE.Energy

30%

Hidro-Electric

15%

Biomass55%

After MAAfter MA--11001100

Reduced dependence on purchased energyReduced dependence on purchased energy

65% of electric energy65% of electric energy

selfself--sufficiencysufficiency

70% of electric energy70% of electric energy

selfself--sufficiencysufficiency

85 MWh 150150 MWhMWh


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FutureFuture


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New Structure


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CEO

BU KlabinForestry

BU KlabinPaper

BU KlabinPackaging

BU KlabinIndustrial Bags

HumanResources

Auditing

Communication

& SocialResponsibility

CFO &

IR Officer

Planning &

Control

Projects,Indl. Tech. &

Procurement

COO

Legal

Executive

Board

FutureFuture3.0 Million3.0 Million tonnestonnes/year/year


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Feasibility studies for the capacity increase andFeasibility studies for the capacity increase andmodernization projects are under review, aiming to achievemodernization projects are under review, aiming to achievehigher profitabilityhigher profitability

Capacity increase to 3 millionCapacity increase to 3 million tonnestonnes by 2012by 2012

Cost reduction and higher productivityCost reduction and higher productivity


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CreatingCreating Value and GrowingValue and Growing

IR ContactIR Contact

Phone: (55 11) 3046Phone: (55 11) 3046--8404 / 8415 / 84168404 / 8415 / 8416

www.klabin.com.brwww.klabin.com.br

[email protected]@klabin.com.br

kpresentation2008 2q ing

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