Klabin Institutional Presentation May 2008

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.

Contents

Company Profile Businesses and Markets Financial Performance

4 11 39

Expansion of Coated Boards

51

Future

56

Company Profile
A forestry based company focused on wood, coated boards, packaging paper and paper based packaging products:
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 (14/04/2008)

Net Revenue: US$ 1.4 billion in 2007

Forestry
Wood logs

Packaging Paper
Kraftliner Coated Boards

Paper Based Packaging

Industrial Bags Corrugated Boxes

8%

21%

25%

14%

32%
4

History
With 108 years of history and tradition, Klabin grows sustainably, supported by projects structured towards value creation.
Already positioned Klabin and Lafer families founded Klabin Irmos & Cia. among the largest Brazilian paper producers Launched production 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 Sale of non core assets and focus on packaging Capacity of 2 million tonnes

1899
A company in the office supplies trading and printing businesses

20s

1934 1947
Founded Klabin do Parana, the first integrated pulp and paper mill in Brazil

70s
Consolidated Leadership

2000

2003 2006
MA 1100 Expansion Project

2007
PM #9

Acquisition of Igaras Papis e Embalagens

Integrated Business Concept

After MA 1100 Expansion Project

Forests
Lands 431,000 ha

Wood - 2.5 million tpy Sack Kraft 155,000 tpy 100% Integrated
100% Integrated Industrial Bags

155,000 tpy

Pulp
NBSK BEKP CTMP

Planted Forests Pine 157,000 ha Eucalyptus 58,000 ha

Coated Boards 740,000 tpy

Liquid Packaging Board Carrier Board Folding Box Board 740,000 tpy

Domestic and Export

1.7 million tpy

Kraftliner 770,000 tpy

Exports 500,000 tpy

35% Integrated

Sales

OCC 380,000 tpy

Recycled Paper 300,000 tpy

Corrugated Boxes 540,000 tpy

(*) Finished Products

100% Integrated

2.0 million tpy

(*) All figures refer to installed production capacity

Shareholder Structure
31/03/2008
Total Shares (Common + Preferred) Local Price Share (KLBN4) 14/04/08 Book Value (31/03/08) Average Daily Trading Volume - 4Q07 917,683,296 R$ 6.24 R$ 3.07 R$ 8.7 million

Common
Brazilian Investors 17% Foreign Investors 3% Monteiro Aranha 20% Brazilian Investors 38%

Preferred
BNDESPAR 31%

Klabin Irmos 60% 316,827,563

Treasury Stock 2%

Foreign Investors 29% 600,855,733

Klabin's presence

Corrugated Boxes

Forestry

Recycled Papers

Pulp and Paper Mills

Industrial Bags

Corporate Governance
Highlights
Klabins preferred shares are traded at IBOVESPA, IBX-50 e MSCI Brazil Joined BOVESPAs Level I of Corporate Governance Tag Along rights of 70% for preferred shares Adopted insider trading policy for securities issued by the company Strict separation of Board of Directors and Executive Board Compensations for members of the Executive Board are linked to value creation metrics (EVA) that take into account the opportunity cost of investments Independent Auditors are rehired only after a formal and documented evaluation by the Board of Directors Permanent Fiscal Council with frequent communication with Internal and External Auditors

Sustainability Policy
Principles
1. To seek competitive quality, aiming at sustained improvement of results, continuously perfecting processes, products and services so as to meet customers, employees, shareholders, suppliers and communities expectations. 2. To ensure supply of its industrial units with wood from planted forests, in a sustainable way and without any damage to either natural or associated ecosystems. 3. To practice and promote the recycling of pulp fiber in its production chain. 4. To prevent and avoid pollution by means of reducing environmental impact from effluents, solid residues and emissions to air. 5. To promote employees personal and professional advancement , and to strive for continuous improvement of their working environment, health and safety. 6. To exercise social responsibility with focus on the communities where the Company is present. 7. To comply with laws and regulations applicable to product, environment, health and safety.

10

Business and Markets

11

Global Packaging Market

EUR 400 billion
Global Packaging Market
Flexibles 17% Rigid Plastics 18% Corrugated 19%

Forestry based packaging:

30 % of the World Packaging Market

Coated Boards 9%

Bags 2% Others 5% Glass 10%

Source: Pory

Metallic 20%

Market of EUR 120 billion per year

Brazilian Market
Plastic 32% Wood 2% Paper 8%

40% of the Brazilian market

Paperboard 31% Metallic 21%

Source: IBGE

Glass 6%

12

Global Market
Demand increase for paper and boards
Projected Demand Growth: 2003-2020 (%) 4
Other

Printing and Writing Papers Coated Woodfree Uncoated Coated Woodfree Mechanical

Industrial Grades

3 Tissue

Avg. Demand Growth 2.2% Corrugating Material Cartonboards

Uncoated Mechanical Newsprint

Other Paper and Sack Board Paper

10

20

30

40

50

60

70

80

90

100

Share of Consumption in 2003 (%)

Source: Pyry
13

Wood

Products: wood logs Customers: Sawmills and laminators

Species

Main Products Sawn Lumber Fence Clear Blocks Finger - Joint - Blanks Mouldings Plywood

Destinations

USA Europe Domestic Market

Pine

Eucalyptus

Sawn Lumber Veneer Plywood Glued Laminated Beams Edge Glued Panels Outdoor Furniture

Europe Asia USA Domestic Market

14

Wood
Housing starts

"US New Privately Owned Housing Units Started"

Seasonally Adjusted Annual Rate
Thousands

2.500 2.300 2.100 1.900 1.700 1.500 1.300 1.100 900

Ja n M - 00 a yS 00 ep Ja 00 n M - 01 a yS 01 ep Ja 01 n M - 02 a yS 02 ep Ja 02 n M - 03 a yS 03 ep Ja 03 n M - 04 a yS 04 ep Ja 04 n M -0 a 5 yS 05 ep Ja 05 n M - 06 a yS 06 ep Ja 06 n M - 07 a yS 07 ep Ja 07 n08

Housing Units
Source: US Census Bureau

Average
15

Forests
Forestry base
Land and Forests 31/03/2008 Company Land Planted Forests Pine Eucalyptus Native preserved forests thousand ha 436 216 156 60 175

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

Km 58

76 66 100

16

Forests
Competitive advantage
Average Productivity (m3/ha/year) 31/03/2008 Paran Santa Catarina So Paulo Pine 33 35 25 Eucalyptus 46 21 38

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

17

Kraftliner
Pioneerism and leadership in the production of kraftliner in Latin America Largest producer and exporter of packaging paper - 74% of Brazilian exports 6% share of the global market, exporting to more than 50 countries

Supplies Klabins 9 corrugated boxes converting plants

18

Kraftliner
Price evolution
US$/tonne

900 800

8%

781

20 %
700 600 500 400 300 200 100 0
Jan-04

720

0%

12%

602

541

539

2004

Jan-05

2005

Jan-06

2006

Jan-07

2007

Jan-08

2008

Kraftliner price (free delivered)

Source: FOEX/Kraftliner Brown 175 g/m2

Average
19

Coated Boards

Liquid Packaging Boards (LPB)

Folding Box Boards

Carrier Boards Carrier Board

20

Global Board Market

28 million tpy

1.5 8.4
North America

Eastern Europe

5.6

Europe

10.5 Asia 0.6

Africa and Middle East

1.4

Latin America

Klabin focus on the virgin fiber based segment, which amounts to 10 million tpy:
- Liquid Packaging Board: 3.1 million tpy - Carrier Board: 2.7 million tpy - Folding Boxboard: 4.3 million tpy
21

Coated Board
Global Market Demand Growth

150

Inception 1990 = 100

CAGR Boards: 2.6%

140

130
CAGR Paper: 2.1%

120

110

100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Paper
Source: Pyry

Boards
22

Coated Boards
Structure

Triple clay coating Bleached Pulp mixed hard/soft fibers Unbleached Pulp mixed hard/soft fibers + CTMP Unbleached Pulp softwood fibers Starch

Attributes
Softwood Hardwood + 3 coating State of the art equipment Stiffness Printability Runnability
23

Coated Boards
Grades

1) LPB - Liquid Packaging Board

Packaging Products Aseptic Packaging Long Life
Isolates product and free of contamination

Non-aseptic Packaging
Product must be kept refrigerated

Technical Attributes
Wet tear resistance Stiffness Edge Weakening Printability Runability

24

Coated Boards
Aseptic package structure

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

Polyethylene Printed design Paper Polyethylene Aluminium foil Polyethylene Polyethylene

Paper makes the packages stiff Plastic renders them liquid-tight Aluminium foil blocks out light and oxygen
25

Coated Boards
Grades

2) Carrier Board
Packaging Products
Beverages
Tins and bottles

Dairy Products
Plastic bottles and pots

Technical Attributes
Wet tear resistance Printability Runability

26

Coated Boards
Grades

3) Folding Box Board

Packaging Products Powder Detergent Cereals Frozen Foods

Technical Attributes Printability Runability Stiffness + Stacking

27

Commercial Agreements
Coated Boards

Tetra Pak

MeadWestvaco

Perez Trading

These agreements represent 530,000 tonnes of coated boards, or 72% of the 740,000 tpy installed capacity.
28

Coated Boards
Brazilian Consumption per Main Industries and Market Share

Consumption Main Industries 2006

Market Share 2006

Klabin 37%
Others 4% Personal Care 3% Food/ Beverages 93%

Suzano 25%

Ripasa 11% Nobrecel 1% Bonet 3% Miguel Forte 5% Ibema 8%

Papirus 10%

Includes LPB

Source: BRACELPA

29

Coated Boards
Free delivered (USA) price evolution
US$/tonne

1.200

1,003
1.000

1,022

847
800

897

936

600 400 200 0

Jan-04

2004

Jan-05

2005

Jan-06

2006

Jan-07

2007

Jan-08

2008

Coated Board Price

Average
30

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

Coated Boards
Klabin - 6th Largest Producer of Virgin Fiber Coated Boards

MeadWestvaco Stora Enso International Paper Graphic Packaging Korsnas/Frovi Klabin M Real Iggesund Potlatch Georgia Pacific

500

1,000 1,000 tpy

1,500

2,000

2,500

3,000

Liquid Packaging Board

Folding Box Board

Carrier Board

Solid Bleached Sulphate

Source: Pyry

31

Coated Boards
Klabin 3rd Largest Tetra Pak Supplier in 2009
Stora Enso Korsnas/Frovi Klabin International Paper Potlatch MeadWestvaco Graphic Packaging M Real Iggesund

200

400

600 1,000 tpy

800

1,000

1,200

1,400

1,600

Liquid Packaging Board

Folding Box Board

Carrier Board

Source: Pyry

32

Industrial Bags

Market leadership in the segments of multiwall and SOS bags

Recognized for high quality products and customized customer service

Supplies for a variety of industries, highlighting the building industry, food, chemical products and agribusiness
33

Industrial Bags
Brazilian Consumption per Main Industries

Consumption Main Industries 2006

Building Industry 67%

Food 20%
Source: Klabin

Others 10%

Agribusiness 8%

34

Industrial Bags
Brazilian Consumption of Cement Production

M illion tonnes

4.0

3.0

2.0

jan

feb

mar

apr

may

jun

jul

aug

sep

oct

nov

dec

2006
Source: SNIC

2007

2008

35

Corrugated Boxes

Leadership of the corrugated boxes market in Brazil

Largest production capacity in Brazil with nine corrugated boxes converting plants

Klabins products reach every industry sector, providing total protection for packaged products transported
36

Corrugated Boxes
Brazilian Consumption per Main Industries and Market Share

Consumption Main Industries 2006

Market Share 2006

Rigesa 12%

Orsa 10% Trombini 7% Penha 5% So Roberto 4% Adami 4% INPA 4%

Food/ Beverages 50%

Personal Care 8%

Klabin 20%

Tobacco 10% Fruits 8%

Others 24%
Others 34%

Source: ABPO
37

Corrugated Boxes
Brazilian shipments
Thousand tons
210

200

187
190

184
180

179
170

176 157

180

182

160

150

140 Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan- May- Sep- Jan02 02 02 03 03 03 04 04 04 05 05 05 06 06 06 07 07 07 08

Shipments
Source: ABPO

Annual Average

38

Financial Performance

39

Klabin's Performance 1Q08

Volume and Net Revenue growing Sales Volume
1,000 tonnes

Net Revenue
R$ million

386 341

359

740

715

691

1Q08

4Q07
Does not include wood

1Q07

1Q08

4Q07
Includes wood

1Q07

40

Performance 1Q08
Per Market

Sales Volume

Net Revenue

Domestic Market 58%

Domestic Market 72%

Exports 28%

Exports 42% Does not include wood Includes wood

386 thousand tonnes

R$ 1405 million 740 million

41

Performance 1Q08
Per Product

Sales Volume
Industrial Bags 9% Others 2% Kraftliner 31% Industrial Bags 14% Others 2%

Net Revenue
Wood 8% Kraftliner 18%

Coated Boards 28% Corrugated Boxes 28%

Coated Corrugated Boards Boxes 30% 30% Does not include wood Includes wood

386 thousand tonnes

740 million

42

Exports Destination 1Q08

Sales Volume
Africa 4% North America 3% Latin America 44% Asia 16% Africa 4%

Net Revenue
North America 4%

Asia 15%

Latin America 46%

Europe 30% Europe 34%

161 thousand tonnes

US$ 118 thousand

43

EBITDA
1Q08 EBITDA Margin of 28% versus 21% in 4Q07
37% 33% 29% 246 24% 25% 26% 24% 21% 17% 155 115 203 186 169 170 184 138 200 200 205 29% 28% 28% 28%

239

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

EBITDA - R$ million

EBITDA Margin

44

Capex and Net Debt

MA-1100 Project: Final phase of implementation Capex
R$ million

Net Debt
R$ million

2287

1,914

2,007

1,354 836 750

702
1.0x

2.7x EBITDA

3.1x EBITDA

524 322
2006 2007 2008E

EBITDA
2006 2007 1Q08

Capex

MA 1100
45

Debt Amortization Schedule - 31/03/08

Low debt repayment in 2008
2,159
ST: 3%

R$ 4,446 Million
LT: 97%

Average Debt Maturity Average Annual Cost Local Foreign Total 49 months 59 months 54 months 10.8% 5.9%

742 622 588 404 61

Cash Foreign Currency Local Currency 94 2,065 2Q08 40 21

777 530

664

121 40
3Q08 28 12

20
4Q08 8 12 2008 76 45 2009 45 360 2010 188 434 2011 298 291 2012 458 284 2013 517 260 2014 271 259 After 2015 283 381

46

Participation of Local and Foreign Debt - 31/03/08

Balanced local and foreign currency debt Local Currency (52%)
BNDES 79%

Foreign Currency (48%)

Others 24%

Trade Finance 78%

Other 21%

47

Dollar denominated Debt

Spread over LIBOR and Average Maturity
Months
70 7% 60

72

74

Spread 8%

58
Average Maturity Spread Over LIBOR
6%

50

4,7%

5%

40

4,8%
4%

30

3%

19
20

21
2%

13
10

11 1,5% 1,1% 1,1% 1,0%

0%

1,6%

1%

2002

2003

2004

2005

2006

2007

1T08
48

Net Income and Dividends

R$ million
6.0%* 6.1%*

621

3.5%*
309

473

293 231 172

2005

2006

2007

Net Income

Declared Dividends

* Dividend Yield
49

Shares Performance at Bovespa

Market capitalization and daily trading volume
US$ million US$ billion

10.0

3.7 3.5 3.2

4.0

3.6 3.4 3.2 3.1 3.0

3.5
3.5

8.0

3.0 2.8
7.1

3.1 2.7
6.9 6.4 6.2 5.5 5.6 5.4

3.0

2.6
2.5 5.7 5.0 4.4 2.0

6.0

2.2

2.2
5.8 5.0

5.5

4.0 4.0 3.6

4.3

1.5

1.0 2.0 0.5

0.0
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

0.0 Daily Trading Volum e Market Capitalization

50

Expansion of Coated Boards

51

MA 1100 Project

Brownfield Project Progressive start up of equipments New board machine moving forward along the industrial and commercial learning curves Start up of the new power boiler (Biomass)
Completed the energy source of the Monte Alegre mill 80% of electric energy consumption provided by self-generation

Reduction of variable costs Fixed cost does not grow by the same amount of the capacity expansion

52

Paper Machine #9
PM9 average daily production evolution

1,000 tonnes/day

Forecast Forecast 2008 2008 = = 280,000 280,000 tonnes tonnes

823 756 620

368

386

198
Oct'07 Nov'07 Dec'07 Jan'08 Feb'08 Mar'08 From 2009 onwards
Nominal Capacity 53

Average Daily Production (tonnes)

Other Equipments
New Turbo Generator
Capacity of 72 MWh energy Start up: Mar/08

New Power Boiler Installation (Biomass)

Generation of 250 tonnes/hour of steam at 500C and 100 kg/cm pressure Start up: Apr/08

54

Electrical Energy
Reduced dependence on purchased energy 65% of electric energy self-sufficiency
Biomass 38%

75% of electric energy self-sufficiency

After MAMA-1100

Biomass 55%

85 MWh

150 MWh

HidroElectric 27%

Purchased E.Energy 35%

HidroElectric 15%

Purchased E.Energy 30%

55

Future

56

New Structure

CEO

Auditing

Human Resources

Legal

Communication & Social Responsibility

CFO & IR Officer

Planning & Control

Projects, Indl. Tech. & Procurement

COO

Executive Board

BU Klabin Forestry

BU Klabin Paper

BU Klabin Packaging

BU Klabin Industrial Bags

57

Managements Mission

Obtain the best return on investments Mainly, the MA 1100 Project, with total investments of R$ 2.2 billion

Value creation for the company and our shareholders

Growth oriented by financial discipline

To prepare Klabin for the next growth cycle

58

Future
3.0 Million tonnes/year

Feasibility studies for the capacity increase and modernization projects are under review, aiming to achieve higher profitability Capacity increase to 3 million tonnes by 2012 Cost reduction and higher productivity

59

Creating Value and Growing

IR Contact Phone: (55 11) 3046-8404 / 8415 / 8416 www.klabin.com.br invest@klabin.com.br 60