rd 3rd Quarter 2007

Contents

Company Profile Businesses and Markets Financial Highlights MA 1100 Expansion Project Future

Shareholder Structure 31/10/2007

Total Shares (Common + Preferred) Local Price Share (KLBN4) 30/10/07 Book Value (30/09/07) Average Daily Trading Volume - 3Q07 917,683,296 R$ 7.24 R$ 5.59 R$ 11.2 million

Common
Brazilian Investors 18%

Foreign Investors 3% Monteiro Aranha 20%

Preferred
Brazilian Investors 37% BNDESPAR 31%

Klabin Irmos 59% 316,827,563

Treasury Stock 2%

Foreign Investors 30% 600,855,733

History
With 108 years of history and tradition, Klabin grows sustainably, supported by projects structured towards value creation.
Already positioned The Klabin and Lafer families started Klabin Irmos & Cia. among the largest Brazilian paper producers. Started the 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 Company will reach production capacity of 2 million tons

1899
A company for imports and sales of office supplies and printing

20s

1934 1947

70s
Leadership consolidated

2000 2003 2006

Acquisition of Igaras Papis e Embalagens MA 1100 Expansion Project

2007
PM #9

Foundation of Klabin do Parana, the first integrated pulp and paper mill in Brazil.

Company Profile
A forestry based company focused on wood, coated boards, packaging paper and packaging paper products:
17 plants in Brazil and 1 in Argentina Largest Brazilian producer and exporter of paper (packaging paper and coated boards) Installed production capacity: 1.6 million t/year Market Capitalization: US$ 3.8 billion (31/10/2007)

Net Revenue: US$ 1.3 billion in 2006

Forestry
Wood logs

Packaging Paper
Kraftliner Coated Boards

Paper Packaging
Industrial Bags Corrugated Boxes

10%

21%

25%

13%

31%

Integrated Business Concept

Wood - 2.5 million ton Sack Kraft 155,000 ton 100% Integrated Coated Boards 390,000 ton
100% Integrated Industrial Bags

Forests
Lands 423,000 ha Planted Forests Pine 158,000 ha Eucalyptus 53,000 ha 1.3 million ton

Pulp
NBSK/ BEKP

155,000 ton

Liquid Packaging Board Carrier Board Folding Box Board 390,000 ton Exports 410,000 ton
35% Integrated

Domestic and Export Sales

Kraftliner 720,000 ton

Corrugated Boxes 540,000 ton

(*) Finished Products

OCC 380,000 ton

Recycled Paper 300,000 ton 1.6 million ton

100% Integrated

(*) All figures refer to installed production capacity

Klabin's presence

Forestry

Corrugated Boxes

Pulp and Paper Mills

Recycled Papers 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.

Businesses and Markets

10

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%

11

Global Market
Projected Demand Growth: 2003-2020 (%) 4
Other

Demand increase for paper and boards

Printing and Writing Papers Coated Woodfree Uncoated Coated Woodfree Mechanical

Industrial Grades

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

12

Forestry base and competitive advantage

Land and Forests 30/09/2007 Company Land Planted Forests Pine Eucalyptus Native preserved forests Average hauling distance: 55 Km thousand ha 423 211 158 53 171

Forests

Softwood - Rotation (years) Klabin South Africa Chile Australia USA Sweden
0 20 40 60 80

Hardw ood - 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
1 0 1 5 20 25 30 35 40

Source: Pyry

13

Wood

Products: wood logs Customers: Sawmills and laminators

Species Main Products Sawn Lumber Fence Clear Blocks Finger - Joint - Blanks Mouldings Plywood Sawn Lumber Veneer Plywood Glued Laminated Beams Edge Glued Panels Outdoor Furniture Destinations

USA Europe Domestic Market

Pine

Europe Asia USA Domestic Market

Eucalyptus

14

Housing starts

Wood

"US New Privately Owned Housing Units Started"

Seasonally Adjusted Annual Rate
Millions

2.400 2.200 2.000 1.800 1.600 1.400 1.200 1.000

0 2 1 3 4 5 6 0 1 2 3 4 5 6 Ju l0 Ju l0 Ju l0 Ju l0 Ju l0 Ju l0 Ju l0 Ja n0 Ja n0 Ja n0 Ja n0 Ja n0 Ja n0 Ja n0 Ja n0 Ju l0 7 7

Housing Units
Source: US Census Bureau

Average

15

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

16

Price evolution
US$/ton

Kraftliner

800 700 600 500 400 300 200 100 0

Jan-04

710 602 541 539

2004

Jan-05

2005

Jan-06

2006

Jan-07

2007

Kraftliner price (free delivered)

Source: FOEX

Average

17

Coated Boards

Liquid Packaging Boards (LPB)

Folding Box Boards

Carrier Boards Carrier Board

18

Boards Structure

Coated Boards

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
17

Stiffness Printability Runability

19

Kinds of Boards

Coated Boards
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

14

20

Kinds of Boards

Coated Boards
2) Carrier Board
Packaging Products
Beverages
Tins and bottles

Dairy Products
Plastic bottles and pots

Technical Attributes
Wet tear resistance Printability Runability

15

21

Kinds of Boards

Coated Boards
3) Folding Box Board
Packaging Products Powder Detergent Cereals Frozen Foods

Technical Attributes
Printability Runability Stiffness + Stacking

16

22

Brazilian Consumption per Main Industries and Market Share

Coated Boards

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

23

Brazilian UHT Milk Sales

Coated Boards

R : 12 CAG

%
5.1 4.8 4.2 4.2 4.4

4.0 3.6 3.4 3.1

2.5

1.7

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

UHT Milk Sales - Billion liters

Source: ABLV

24

Free delivered (USA) price evolution

US$/ton

Coated Boards

1,200

998
1,000

847
800

897

936

600

400

200

0
Jan-04

2004

Jan-05

2005

Jan-06

2006

Jan-07

2007

Coated Board Price

Source: RISI

Average

25

28 million tons/year

Global Board Market

Klabin is focused on the virgin fiber based segment which amounts to 10 million tons/year

1.5 8.4
North America

Eastern Europe

5.6

Europe

10.5 Asia 0.6

Africa and Middle East

1.4

Latin America

26

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
27

Klabin - 6th Largest Producer of Virgin Coated Boards

Coated Boards

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

500

1000

1500

2000

2500

3000

1,000 tons/year
Liquid Packaging Board Folding Box Board Carrier Board Solid Bleached Sulphate

Source: Poyry

28

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

29

Brazilian Consumption per Main Industries

Industrial Bags

Consumption Main Industries 2006

Building Industry 67%

Food 20%
Source: Klabin

Others 10%

Agribusines 8%

30

Brazilian Consumption of Cement Production

Industrial Bags

M illion tons

4.0

3.0

2.0

jan

fev

mar

abr

mai

jun

jul

ago

set

out

nov

dez

2005
Source: SNIC

2006

2007
31

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
32

Brazilian Consumption per Main Industries and Market Share

Corrugated Boxes

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% Tobacco 10% Fruits 8% Others 24%

Klabin 20%

Others 34%

Source: ABPO

33

140

150

160

170

180

190

200

210

Source: ABPO

Brazilian shipments

179 157

Corrugated Boxes

Shipments

Thousand tons

176 180

Monthly Average

182

Ja n02 A pr -0 2 Ju l-0 O 2 ct -0 2 Ja n03 A pr -0 3 Ju l-0 O 3 ct -0 3 Ja n04 A pr -0 4 Ju l-0 O 4 ct -0 4 Ja n05 A pr -0 5 Ju l-0 O 5 ct -0 5 Ja n06 A pr -0 6 Ju l-0 O 6 ct -0 6 Ja n07 A pr -0 7 Ju l-0 7

188

34

Financial Highlights

35

Klabin's Performance 9M07

Volume and Net Revenue growing Sales Volume
1,000 tons

Net Revenue
R$ million

1,393 1,097

2,713 2,128

1,036

2,018

3T

360

3T

356

3T

723 3T 715

705

2T

378

2T

341

2T

2T

667

1T

359

1T

340

1T

691

1T

645

9M07

9M06
Does not include wood

2006

9M07

9M06
Includes wood

2006

36

By Market

Sales Volume and Net Revenue 9M07

Growth with Domestic Market Sales Volume Net Revenue

Domestic Market 62%

Domestic Market 74%

Exports 26%

Exports 38% Does not include wood Includes wood

1,097 thousand ton

R$ 2,128 million R$ 1405

37

By Product

Sales Volume and Net Revenue 9M07

Corrugated Boxes sales are still consistent Sales Volume

Industrial Bags 8% Others 3% Kraftliner 32% Industrial Bags 14% Others 2%

Net Revenue
Wood 8% Kraftliner 19%

Corrugated Boxes 32%

Coated Boards 25% Does not include wood

Corrugated Boxes 32% Includes wood

Coated Boards 25%

1,097 thousand ton

R$ 2,128 million
38

Exports Destination 9M07

Latin America and Europe answer for 89% of the sales Sales Volume
Africa 5% Asia 5% North America 1% Latin America 53%

Net Revenue
Africa 4% Asia 5% North America 2% Latin America 59%

Europe 30% Europe 36%

422 thousand ton

US$ 277 million

39

EBITDA
Margins are recovering, despite the real appreciation
710 602 2.43 539
37% 33% 29% 246 239 24% 17% 155 115 186 25% 24% 170 26% 29% 203 28% 200

2.18 1.98
28% 200

169

184

1Q05 1Q05 1T05

2Q05 2Q05 2T05

3Q05 3Q05 3T05

4Q05 4Q05 4T05

1Q06 1Q06 1T06

2Q06 2Q06 2T06

3Q06 3Q06 3T06

4Q06 4Q06 4T06

1Q07 1Q07 1T07

2Q07 2Q07 2T07

3Q07 3Q07 3T07

Kraftliner FOEX (US$)

EBITDA - R$ million

EBITDA Margin

R$/US$

40

Capex and Net Debt

MA-1100 Project: Final phase of implementation Net Debt / EBITDA relation under control
R$ million

Capex

Net Debt
R$ million

1,449

1,755

2.2x
987 505 324
9M07 9M06

EBITDA
529

0.8x EBITDA
9M07 9M06

Capex

MA 1100

*Annualized EBITDA

41

30/09/07

Debt Amortization Schedule

Average Maturity growing; Low debt payment on 2008

Local Currency (49%)
NCE
5% Debentures 18% 11% Working Capital 67%

2,197
ST: 15%

R$ 3,533 Million
LT: 85%

Average Debt Maturity Average Annual Cost

BNDES

Local Foreign Total

45 months 61 months 53 months

11.4% 6.8%

Foreign Currency (51%)

Other NCE 24% 73% Trade Finance 3%

782 468 268 137

After 2014 427 355

389

499

507

483

Cash 69 Foreign Currency 2,128 Local Currency

2007 63 405

2008 87 50

2009 48 221

2010 193 196

2011 302 196

2012 338 169

2013 347 136

42

Spread Over LIBOR and Average Maturity of dollar denominated Debt

Months
70

Spread
8%

62
60

58
Average Maturity

7%

6%

50

Spread Over LIBOR

5%

40

4.8%

4.7%
4%

30

19
20

21

3%

13
10

2%

11 1.5% 1.1% 1.1% 0.9%

0% 1%

2002

2003

2004

2005

2006

2007

43

Net Income and Dividends

R$ million 6.1%* 473 3.5%*
213

6.2%**

309
91

231 172
110

372
176

218

71 101
2005

260
121
2006

2007
Declared Dividends 2H Declared Dividends 1H

Net Income 2H Net Income 1H

* Dividend Yield

** 2007 Annualized Yield

44

Market Capitalization and Daily Trade Volume

US$ million

Shares Performance at Bovespa

US$ billion

10.0
US$ million US$ billion

3.8 3.5 3.2

4.0

3.5

8.0

3.0 2.8
7.1

3.1 2.7
7.1 6.4 2.5 5.8 2.0 3.0

2.6

2.4
6.0

2.1 1.8
5.1

2.0

2.2 2.0 2.0 1.8

4.7

2.2 2.0 2.0

2.3

2.2 2.2
5.8 5.0 4.3 4.0 3.6

5.5

4.0 4.0 3.3 2.7 2.0 1.8 4.0 3.2 3.1 3.2 3.2 3.3

1.5

1.0

0.5

0.0
Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07

0.0 Daily Trade Volum e Market Capitalization

45

Increase of Coated Boards Capacity

MA 1100 Expansion Project

46

New Wood-Processing Line

MA 1100 Expansion Project

Operation Start UP: Sep/07 Processing Capacity: 4,500 tons/day

47

New CMTP Plant Chemo-Thermo-Mechanical Pulp

Operation Start Up: Sep/07 Capacity: 140.000 tons/year

MA 1100 Expansion Project

48

Double the Effluent Treatment Station

Operation Start Up: Oct/07 Reductions:

MA 1100 Expansion Project

25% of the BO5D and COD (biochemical Oxygen demand and chemical Oxygen demand) 15% of the effluent volume per produced ton

49

Paper Machine #9 - Start up: October 15th, 2007

MA 1100 Expansion Project

50

MA 1100 Expansion Project

Recovery Boiler Start Up: Dec/07
Burn capacity of 1,700 tons dry solid/day of black liquor

New Power Boiler Installation (Biomass) Start Up: Dec/07

Generation of 250 tons/hour of steam at 500C and 100 kg/cm of pressure

New Turbo Generator Start Up: Feb/08

Capacity of 72 MWh energy

51

MA 1100 Expansion Project

Reduced dependence on purchased energy

65% of electric energy self-sufficiency

Biomass 38%

80% of electric energy self-sufficiency

Biomass 65%

Hydroelectric 27%

Purchased E. Energy 35%

Hydroelectric 15%

Purchased E. Energy 20%

85 MWh

150 MWh

After MA 1100
52

Results

MA 1100 Expansion Project

Plant optimization Operational costs reduction Quality and costs leadership

Operational

Commercial

Focused in the production of coated boards More flexibility to develop new products Growth based on quality and competitiveness

Economic/ Financing

R$ 750 million increase in the annual revenue, when running at full capacity Strong value creation

Future

Plant prepared for future capacity expansion

53

Capex and Financing

MA 1100 Expansion Project

Project running on schedule and on budget...

Capex (R$ million)
R$ Million Gross Capex Refundable taxes Net Capex Completed 2006 3Q07 574 312 50 67 524 245 9M07 1,201 214 987 Total Planned 4Q07 2008 225 200 44 42 181 158 Total 2,200 350 1,850

... with proper financing

Financing
Sources BNDES
Cash Generation

Amount R$ million 1,488 712 2,200

% 68% 32% 100%

Grace Period

Amortization Maturity

months 30 78 108

Interest
TJLP+2.0%

Total

54

Start Up of the Main Equipment

MA 1100 Expansion Project

2007 Wood Yard CTMP Reforms (digester, bleaching) Effluent Treatment Paper Machine #9 Recovery Boiler Power Boiler (Biomass) Turbo Generator #8
Sep/07

2008

Sep/07

Sep/07

Oct/07

Oct/07

Dec/07

Dec/07

Feb/08

55

After MA 1100 Expansion Project

Forests
Lands 423,000 ha Planted Forests Pine 158,000 ha Eucalyptus 53,000 ha

Integrated Business Concept

Wood - 2.5 million ton Sack Kraft 155,000 ton 100% Integrated Coated Boards 740,000 ton
100% Integrated Industrial Bags

155,000 ton

Pulp
NBSK BEKP CTMP

Liquid Packaging Board Carrier Board Folding Box Board 740,000 ton Exports 500,000 ton
35% Integrated

Domestic and Export Sales

1.7 million ton

Kraftliner 770,000 ton

Corrugated Boxes 540,000 ton

(*) Finished Products

OCC 380,000 ton

Recycled Paper 300,000 ton 2.0 million ton

100% Integrated

(*) All figures refer to installed production capacity

56

Future

57

Growth Strategy

Wood

Coated Boards

Domestic Market
Maintain its Leadership in all Business Segments
Corrugated Boxes Industrial Bags

58

Growth Strategy

Coated Boards

Exports
Increase Participation in the Coated Boards Market
Kraftliner

Value added products Less volatile prices Growing market Costs competitiveness Entrance barriers Financial capacity Technology: use of long and short fibers and coating

Capacity increase opportunities Costs competitiveness Technology

59

Future

3.0 Million tons/year until 2012

Otaclio Costa (SC) Mill (Phase 1):
Technological update; Cost reduction; Improve environmental performance; 30 thousand tons kraftliner production increase

Correa Pinto (SC) Mill:

Transfer of PM4 from Monte Alegre; Increase sack kraft production from the present 130 thousand to 190 thousand tons/year; Guarantee supply of the industrial bags plants in Brazil and Argentina.

60

Future

3.0 Million tons/year until 2012

Monte Alegre (PR) Mill:
Installation of a new coated board machine; Production increase Use of the infra-structure implemented in the MA 1100 Project.

Otaclio Costa (SC) Mill (Phase 2):

Increase of 300 thousand tons/year; Cost reduction; New recovery boiler and turbo generator; New wood-processing line.

61

Future

4.0 Million tons/year from 2015 to 2020 Even more significant increase of the land and forest base

62

Creating Value and Growing

63

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