KPresentation2006 Ing

8/6/2019 KPresentation2006 Ing

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1

3 rd Quarter 2006

November 2006


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Company P rofile

Largest packaging paper and coated board producer

Paper, coated board and recycled paper installed production capacity 1.6 million t/year

Net Revenue: US$ 1.2 billion in the last twelve months

Market Capitalization: US$ 2.2 billion (30/09/2006)

There are 17 plants in Brazil and 1 in Argentina

I s a forestry base company focused on w ood, coated boards,packaging paper and packaging paper products

Industrial Bags 13%

Kraftliner 19% Corrugated Boxes 31%

Coated Boards 24%

Wood logs 13%

Production process flow

Packaging Paper Paper P ackaging

Main prod ucts and share of Net Revenue in the nine months of 2006

Forestry

Plants Location

Industrial Bags

Forestry

Packaging paperRecycled Paper

Corrugated Box

Industrial Bags

Forestry

Packaging paperRecycled Paper

Corrugated Box


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CorrugatedBoxes

540,000 ton

FinishedProducts

(*)

Wood - 2.5 million ton

1 0 0 %

I n t e g r a

t e d

Kraftliner720,000

ton

Sack Kraft

155,000ton

CoatedBoards390,000

ton

OCC 380,000 ton

1.6 million ton

RecycledPaper

300,000ton

100%

IntegratedIndustrial Bags

155,000 ton

Liquid Packaging BoardCarrier Board

Folding Box Board390,000 ton

Exports420,000 ton

40%Integrated

100%Integrated

(*) All figures refer toInstalled production capacity

Domestic

andExportSales

NBSK andBEKP

1.3 millionton

PulpPine

eEucalyptus

Total371,000 ha

Forests

Planted192,000 ha

Klabin Largest I ntegrated Producer of Coated CartonBoards, Packaging Paper and P ackaging ProductsInstalled Capacity 30/ 09/ 06


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WoodCustomers, Main P roducts and Destinations

WoodLogs

Products

Sawmillsand

Laminatings

Customers

Pine

Eucalyptus

Sawn LumberFence

Clear BlocksFinger Joint Blanks

MouldingsPlywood

Sawn Lumber

VeneerPlywoodLaminated Beam

Edge - Glue - PanelsOutdoor Furniture

Main Products

USA

Europe

Domestic

Market

Europe

AsiaUSA

DomesticMarket

DestinationsSpecies


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Industrial Bags

BuildingIndustry

53%

Agribusiness12%

Others15%

Food20%

Others4%

PersonalCare5%

Food/Beverages

91%

Coated Boards

Poultry13%

PersonalCare12%

Fruits/Tobacco

15%

Others26%

Food/Beverages

34%

Corrugated Boxes

Coated Boards, Corrugated Boxes andI ndustrial BagsConsumption per Main I ndustries in 2005


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KraftlinerConsumption per Main Markets and Destinations

Klabins Converting Plants 300,000 t

Exports

370,000 t

SoutheastSouth

Middle WestNortheast

InstalledCapacity

720,000t/year Domestic

Market50,000 t

Argentina

Chile

Europe

Asia

NonIntegrated

CorrugatedBoxesProducers

Markets DestinationsProduction


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Maintain its Leadershipin all

Business Segments

Domestic Market

Corrugated Boxes

Industrial Bags

Wood

Coated Boards

Grow th Strategy


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Exports

Coated Boards

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

fibers and coating

Kraftliner

Increase Participationin the

Coated Boards Market

Capacity increase opportunities

Grow th Strategy


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Forestry

Company Land

Planted Forests

thousand ha

371

192PineEucalyptus

14844

135

Land and Forests 30/09/2006

Native preserved forests

Company Forests

Planted Forests

thousand ha

192

170

Leased Forests 22

Planted Forests 30/09/2006


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Pulpwood regime (m 3 /ha/year)Sawlog regime (m 3 /ha/year)

Pine

4335

Productivity of new rotations (30/09/06)PR SC

4539

Eucalyptus(*)

5447

PR SC

33-

* PR 14 years rotation, 2 cuts | SC 20 years rotation

Paran

Santa Catarina

Km

48

Otaclio Costa

Correa Pinto

44

8353

Average Distance (30/09/06)

Average hauling distance

Forestry


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Competitive Advantage - Forestry

Country Softwood

Klabin

Productivity(m3/ha/year)

33

New ZealandSouth Africa

Australia

USA

2519

15-17

12-15

Sweden 3

Country - Hardwood

Klabin 46

South AfricaChile

Portugal

Sweden

2020

12

5

Finland 4

Softwood - Rotation (years)

100

45

35

25

25

20

0 20 40 60 80 100 120

Sweden

USA

Australia

Chile

South Africa

Klabin

Hardw ood - Rotation (years)

7

9

1113

37

37

0 5 10 15 20 25 30 35 40

Klabin

South Africa

ChilePortugal

Sweden

Finland

Productivity(m3/ha/year)

Source: Jaakko Pyry


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Shareholder Structure 30/ 09/ 2006

Total Shares (Common + Preferred)

Local Price Share (KLBN4) 30/09/06

Book Value Daily Trade Volume - 3Q06

917,683,296

R$ 4.62

R$ 2.68R$ 7.0 million

Common Preferred

Klabin Irmos59%

Monteiro Aranha20%

ForeignInvestors

3%BrazilianInvestors

18%

BNDESPAR31%

ForeignInvestors

28%

BrazilianInvestors

41%

316,827,563 600,855,733


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Dividends

(1) Includes complementary dividends related to 2005 paid in April06

Stock Buyback Plan

Dividends Distribution

As of September 29 th, 2006, the Company had repurchased 5.5 million shares at anaverage price of R$ 4.49 per share

Payments done twice a year

2003: equivalent to 28% of adjusted net profit



Dividends

Year 2006

121 (1)

2005

165

2004

Preferred Shares R$ 0.1363R$ 0.1933

172 (1)

R$ 0.169Common Shares

R$ million

R$ 0.1239R$ 0.1757

R$ 0.187R$ / share

R$ / share

(2) Prepayment paid in October06 related to 2006


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Shares P erformance at BovespaMarket Capitalization and Daily Trade Volume

US$ million US$ billion

4.7

3.1

1.8

3.2

4.04.0

3.2

5.1

2.7

2.0

2.52.3

1.8

2.0

2.2

2.0

2.4

2.0

2.1

1.8

1.61.81.8 2.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

oc t/05 nov/05 dec /05 jan/06 feb/06 mar/06 apr/06 may/06 jun/06 jul/06 aug/06 sep/060.0

0.5

1.0

1.5

2.0

2.5

Daily Trade Volume Market Capitalization

US$ million US$ billion


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Financial Highlights


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9M05 9M069M05 9M06

Sales Volume1,000 t

Net RevenueR$ million

Highlights

+2% -1%1,011 1,036 2,0182,044


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630659

702673

720

650 663 645 667705738

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

Net RevenueR$ million

Highlights


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9M05 9M06 9M05 9M06

Net RevenueDomestic Market

R$ million

Sales VolumeDomestic Market

1,000 t-1%

+1%603 6231,490 1,472

Highlights


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9M05 9M06 9M05 9M06

Exports

1,000 t

Exports Net Revenue

US$ million+1% +13%408 413

222250

Highlights


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170169

186

115

155

239246248

282

229230

37%35%

38%

35%37%

33%

29%

25%24%

17%

24%

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

EBITDA - R$ million EBITDA Margin

Highlights


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Highlights

EBITDA QoQ Variation - R$ million

+24169 170

-19+5

-1-8

EB I TD A2Q06

25% (*)

Volume Price ExchangeRate COGSSG&A eOthers EBITDA

3Q0624% (*)

(*) EBITDA M argin


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181

324

9M05 9M06Klabin MA 1100 Project

9M05 9M06

Net DebtR$ million

CapexR$ million

+38%+69%

298

505

383

529

Highlights


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Highlights

Net Debt QoQ Variation - R$ million529+14

+121

+304352

+25

-117

-170

Net Deb tJun '06

Net Deb tSep '06

EBITDA WorkingCapital

Decrease

Capex DividendsPaid

SharesRepurchase

Others


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3.4x

3.8x

4.2x

2.9x

2.4x

1.6x

0.5x 0.6x 0.5x 0.6x 0.5x 0.5x0.4x 0.4x 0.4x 0.4x 0.4x

0.5x

0.8x

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3T06

Net Debt / EBITDA (Annualized)


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Spread Over LI BOR and Average Tenor of US$ Debt

1.0%1.3%

1.4% 1.4%1.5%

5.0% 5.0%

4.2% 3.9%

1.9%

0.8% 0.8%

1820

22

12

19

28

53

60 59

68

15

0

10

20

30

40

50

60

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q060%

1%

2%

3%

4%

5%

6%

7%

8%

Months

Spread Over LIBOR

Average Tenor

Spread


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513 498 529

319

124

337366

505

2003 2004 2005 9M06

Net Debt Capex

Net Debt and CapexR$ m i l l i o n


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9M05 9M06

Net IncomeR$ million

+28%283

363

2005(*) 2006(*)

Dividend Yield*%

2,4

2,9+0,5 bps

*Related to interim dividends paid by Klabin in September of each year (2005: R$ 100.5 million; 2006: R$ 121.1 million) divided by market capitalizationon the last day of September at each year

Highlights


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Business Performance and Markets


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Sales Volume and Net Volume 9M06By market

Volume Net Revenue

1,036 thousand ton R$ 2,018 million

DomesticMarket

60%

Exports40%

Does not include wood

DomesticMarket

73%

Exports27%

Include wood


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Sales Volume and Net Revenue 9M06By product

Volume Net Revenue

CoatedBoards

24%

IndustrialBags9%

1,036 thousand ton R$ 2,018 million

Kraftliner33%

Others2%

CorrugatedBoxes32%

CoatedBoards

24%

IndustrialBags13%

Kraftliner19%

Wood10%

CorrugatedBoxes32%

Others2%

Does not include woodInclude wood


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Exports Destination 9M06

Volume Net Revenue

Europe39%

Africa9%

LatinAmerica

43%Asia8% Asia

6%

Europe34%

NorthAmerica

1%Africa

8%

NorthAmerica

1% LatinAmerica

51%

408 thousand ton US$ 250 million


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Klabin33 %

Rigesa7%

Orsa7%Trombini

5%

Iran i4%

Others44 %

P ackaging Paper Production 2005

World Brazil

127,2 million ton 4.2 million ton

Africa2%

M . Ea s t2%Latin

America

6% N o r t hAmerica

28%

Asia &Oceania

38%

Europe24 %

Source: Paperloop


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Klabin11%

Rigesa5%

Orsa8%

Adami4%

Trombini6%

Others63%

Cataguases3 %

Brazilian Packaging P aper Production 2005

Kraftliner Testliner / Fluting

1.8 million ton 1.7 million ton

Trombini2%

Tedesco4%

Others12%

S. Roberto3%

Klabin58%

Orsa8%

Rigesa13%

Source: Bracelpa

Klabin is the largest Brazilian packaging paper producer Responsible for 87% of Brazilian Kraftliner exports


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Suzano32 %

Ripasa12 %

Papi rus13%

Ibema9%

Others19%

Klabin15 %

Cartonboard P roduction 2005

World Brazil

28 million ton 596 thousand ton*

No rth America32%

Europe25%

Latin America5%

Asia37%

Africa/Oceania1%

* Does not include Liquid Packaging Boards

Source: Paperloop


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Corrugated Boxes Shipment 2005

Source: ICCA and ABPO

Asia37%

Europe27%

LatinAmerica

6%

NorthAmerica

27%

Africa/Oceania

3%

Klabin19%

Rigesa12%

Others36%

SoRoberto

4%INPA

4%

Nossa Sr a daPenha

5%

Trombini6%

Orsa10%

85.6 million ton

BrazilWorld

2.2 million ton

Irani4%


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Brazilian Corrugated Boxes Shipment

Source: ABPO

180

176

157

179 180

140

150

160

170

180

190

200

J a n -

0 2

M a r - 0

2

M a y - 0

2 J u l - 0

2

S e p -

0 2

N o v - 0

2

J a n -

0 3

M a r - 0

3

M a y - 0

3 J u l - 0

3

S e p -

0 3

N o v - 0

3

J a n -

0 4

M a r - 0

4

M a y - 0

4 J u l - 0

4

S e p -

0 4

N o v - 0

4

J a n -

0 5

M a r - 0

5

M a y - 0

5 J u l - 0

5

S e p -

0 5

N o v - 0

5

J a n -

0 6

M a r - 0

6

M a y - 0

6 J u l - 0

6

S e p -

0 6

1,000

ton

Shipment Average

2002 2003 2004 2005 2006


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Corrugated BoxesBrazilian shipments destinations

49%

9%

31%

6%

4%Southeast has the largest corrugatedbox consumption

In spite of low volume, North Region isincreasing over than others

The exports has low share in thecorrugated box consumption

Exports

North Region

Northeast Region

Middle-West Region

Southeast Region

South Region

Brazilian shipment w as 2.2 milliontons in 2005

1%

Shippments Evolution by Region - base 100 = 2000

-11.7%

+28.1%

+14.2%+26.6%

+117.5%

-19.4%

30%

60%

90%

120%

150%

180%

210%

240%

2000 2001 2002 2003 2004 2005

So utheast So ut h No rtheast Cent er-West No rt h Expo rts


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Sustainability and Corporate Governance


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Corporate GovernanceHighlights

Klabins preferred shares are traded at IBOVESPA, IBX-50 and MSCI

Joined BOVESPAs Level 1 of Corporate Governance

Guarantee 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 creationmetrics that take into account the opportunity cost of investments

Independent Auditors have the possibility of being rehired only after a formaland documented evaluation by the Board of Directors

Fiscal Council has frequent communication with Internal and Independent Auditors


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Sustainability Policy

4. To prevent and avoid pollution by means of reducing environmentalimpact 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, healthand safety.

6. To exercise social responsibility with focus on the communities where theCompany is present.

7. To comply with laws and regulations applicable to product, environment,health and safety.

Continues...


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Black Liquor

40%

Biomass

36%

ElectricEnergy

7%

Heavy Oil

14%

Natural Gas

3%

Klabin s Energy Sources - 2005

Clean Energy / renewable (biomass e black liquor): 82%

Non-renewable Energy / fossil fuel (BPF oil and natural gas) : 18%


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Greenhouse effect gas emissionMil l ion t on s CO 2 / y ear

2.67

0.58

2.72

0.62

2.81

0.59

2003 2004 2005

Renewable Fossil


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Certifications and Aw ards

Forest Stewardship Council Quality and Environment

Native Forestry

Commercial Plantation

Aromatic and Medical Plants

Custody Chain

ISO 14001 Environment

OHSAS 18001 Occupational Healthand Security

ISO 9001 / 9002 Quality

HACCP - Environment Security -Hazard Analysis of Critical ControlPoints

ISEGA German certification institute -Packaging papers may be used indirect contact with food

GMP People & Equipments cleanness- Good Manufacturing Practices

Awards

Rainforest Alliance Award May/2004

Eco 2005 Prize - BusinessManagement for Sustainability -American Chamber of Commerce

SIG Integrated Management System:

Environmental Benchmarking Award2006


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Klabin MA 1100 ProjectExpansion of Coated Boards Capacity


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Klabin MA 1100 ProjectProject Target and Strategic Motivation

Double the Coated Board capacity in the Monte Alegre mill(PR), with the installation of a new 350,000 tpy machine.

Opportunity of sustained growth for Klabin in the Virgin-fiber CoatedBoard Market, with higher profitability and less price fluctuation;

Place Klabin among the 6 largest manufacturers in the Virgin-fiberCoated Board Market assuring its role as a global player;

Use the expertise acquired in the Liquid Packaging Market to grow inthe Carrier Board and Folding Boxboard Markets;

Improve operational reliability in Monte Alegre with the installation ofa new recovery boiler.


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Milliontons

2) Recycled Boards 14.0

Total 28.0

Global Board M arket

Folding Boxboard 4.3

Carrier Board 2.7

Liquid Packaging Board 3.1

Solid Bleached Sulphate / Cupstock 3.9

1) Virgin Fiber Boards 13,014.0

The coated boards global market which Klabin plays amounts 10.0 million t/year

Global Board M arket


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North America8,4

Latin America1,4

Africa and Middle East0,6

Europe 5,6 Eastern Europe1,5

Asia10,5

Global Board M arket28 million t/ year

P rices Evolution:


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979 986 986 9771001 1002 1005 1007

465

437

465

435458

493505 501

511

475

429436422449

368

515

389

m a y / 0 3

a u g / 0 3

n o v / 0 3

f e b / 0 4

m a y / 0 4

a u g / 0 4

n o v / 0 4

f e b / 0 5

m a y / 0 5

a u g / 0 5

n o v / 0 5

f e b / 0 6

m a y / 0 6

a u g / 0 6

Coated Boards have lower prices volatility than others products

Duplex Coated Board, Kraftliner and Pulp

Pr i c es CFR ( c o st a n d f r e i g h t ) - D e li v e r e d t o N o r t h Eu r o p e

Euros/ t

Duplex Coated Board

Kraftliner

Pulp

Source: RISI

LPB M k G h


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LPB Market Grow th

With the increase of the Liquid Packaging Board sales volume to Tetra Pak,

the others carton board available amount is falling sharply

Market Growth UHT Milk Juice Packaging % July 2006

Carton

Packaging81%

Others

4%

Plastic

15%

4.84.44.24.2

4.03.63.4

3.1

2.5

1.71.1

0.70.50.40.2

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

CAGR: 25%

Source: ABLV

Billion of Liters

Highlight Position


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Klabin has a highlight position in this market, achieving sales growth due to

high quality products and competitiveness costs.

Highlight PositionTetra Pak Supplier Evaluation Ranking

7

8

6

5

4

5

3

2

3

2

5

6

1

1 Q 0 0

2 Q 0 0

3 Q 0 0

4 Q 0 0

1 Q 0 1

2 Q 0 1

3 Q 0 1

4 Q 0 1

1 Q 0 2

2 Q 0 2

3 Q 0 2

4 Q 0 2

1 Q 0 3

2 Q 0 3

3 Q 0 3

4 Q 0 3

1 Q 0 4

2 Q 0 4

3 Q 0 4

4 Q 0 4

1 Q 0 5

2 Q 0 5

3 Q 0 5

4 Q 0 5

1 Q 0 6

2 Q 0 6

3 Q 0 6

C t d B d


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Coated BoardStructure

Softwood Stiffness

Printability Hardwood + 3 coating

Runability State of art equipment

Unbleached Pulp softwood fibers

Unbleached Pulp mixed hard/soft + CTMP

Bleached Pulp mixed hard/soft fibers

Triple clay coating

Starch

Attributes

Aseptic Liquid P ackage Composition


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Aseptic Liquid P ackage Composition

1 - Polyethylene

2 - Paper

4 - Aluminium

5 - Polyethylene

6 - Polyethylene

3 - Polyethylene

Paper: to provide strength and stiffness

Polyethylene : to make packages liquid tight and to provide a barrier to microorganismsAluminium : to keep out air, light, and off-flavours - all the things that can cause food to deteriorate

Grow th Opportunity


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In face of this opportunity, Klabin needs to increase its installed capacity, thusto consolidate and increase its share in Coated Boards market

Grow th Opportunity

Installed CapacityCoated Boards and Papers

(1000 tpy )

Current After Klabin MA 1100

700

1,100

+ 57%

Installed CapacityCoated Boards

(1000 tpy )

Current After Klabin MA 1100

330

680

+ 106%

Monte Alegre (PR)

Klabin MA 1100 Project


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0 500 1000 1500 2000 2500 3000

'000 tons/yr

Georgia Pacific

Potlatch

Iggesund

M Real

Klabin

Korsnas/Frvi

Graphic Packaging

International Paper

StoraEnso

MeadWestvaco

SBS FBB Carrier LPB MP 09

Klabin MA 1100 Project6 Largest World Manufacturers of Virgin Coated Boards

Source: Jaakko Poyry

Location


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Monte Alegre Farm Telmaco Borba PR



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Klabin MA 1100 ProjectImplantation

Description of main areas to be implanted with Project:

State-of-the-art Machine for production of Coated Boards;

1) PM 9 Paper Machine/Coating Kitchen:

Production capacity: 350,000 tpy;

Trim width of 6.55m;

Basis weights of Coated Boards from 200 to 400 gsm;

On-machine coating of the boards, coating color prepared at a new Coating KItchen

Best option to cover needed fiber capacity;

2) CTMP Production (Chemical Thermo Mechanical Pulp):

Enables increases in stiffness of Coated Board and consequent reduction in basis weights;

High yield: approaching 90%;

Eucalyptus-based CTMP is ideal for production of Liquid and Folding Coated Boards;

Plant capacity 140,000 tpy



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Capacity to burn 1,700 tons dry solids/day of black liquor at 80% concentration;

3) Recovery Boiler:

Steam generation of 100 kg/cm at 500C;

Substitution of current boilers with high oil consumption and reaching end of life cycle;

4) Power Boiler (Biomass) and Turbo-Generator:

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

Expansion of processing system and transport of biomass, as a result of additional consumption of600,000 tpy of biomass;

New Turbo-Generator with capacity of 72 MWh energy;

New wood-processing line including: debarker, chipper, chip classification and transport system;

5) Woodyard:

Process capacity 330 m/hour of wood;




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Increase of current processing capacity of the Digester from 1,700 tpd to 2,200 tpd;

6) Rebuild of Digester 2 (Kamyr) and of Bleaching Plant:

Increase of current bleaching capacity from140,000 tpy to 240,000 tpy; Substitution of the TCF Bleaching process to ECF, guaranteeing absence of elementary chlorine,

having the benefit of cost reduction;

Increase in capacity of lime recovery from 270 tpd to 520 tpd ;

7) Lime Kiln:

Addition of an Evaporator with increase in current capacity from 555 m/hour to 700 m/hour;

8) Evaporation and Caustification:

Caustification will be increased to 6,000 m/day;




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Double current capacity, which is at its operational limit, by installing new clarifiers, coolingtower, aerobic treatment system of activated mud and tertiary treatment;

9) Effluent Treatment:

25% reduction in the current emission levels of BOD 5 (biochemical oxygen demand) and alsoCOD (chemical oxygen demand) to the Tibagi river.

15% reduction of the volume of effluent per ton of production.

jImplantation



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jProcess

Project Fluxogram :

Black Liquor

Brown FiberBrown Fiber740,000 tpy740,000 tpy

PM07330,000 ton

RecoveryBoiler

BiomassBoiler

Wood PreparationWood Preparation

New LineNew Line

DebarkingDebarking

ChippingChipping

3.8 million tpy3.8 million tpy

Pulp PlantPulp Plant

Kamyr RebuildKamyr Rebuild

WashingWashing

1 million tpy1 million tpy

BleachingBleachingECFECF 220,000 tpy220,000 tpy

PM09350,000

tpy

PM09PM09350,000350,000

tpytpyBoiler

250 ton/h steam

BoilerBoiler250 ton/h steam250 ton/h steam

CTMP140,000 tpy

CTMPCTMP140,000 tpy140,000 tpy

+ 1 million tpy+ 1 million tpy+ 1 million tpyTG

70 MWTGTG

70 MW70 MW

Rec. BoilerRec. Boiler1.700 tpd1.700 tpd

PM06180,000 ton

PM0445,000 ton

PM0340,000 ton

PM01125,000 ton

Klabin MA 1100 ProjectProgress Summary of the project


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The project is running according to schedule.

80% of the earthmoving, i.e. 562,000 m3, has been done ;

All the demolition work has been completed ;

Construction of the building for machine #9 has been initiated, and foundations have been laid for thenew boilers, CTMP (chemi-thermomechanical pulp) plant as well as the building that is to house the rollcutters;

The 17 EPC (Engineering, Procurement & Construction) and 5 BOP (Balance of Plant) packages havebeen contracted;

Progress Summary of the project

Klabin MA 1100 ProjectProgress Summary of the project


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Progress Summary of the project

The first compound, with a housing capacity for 1,500 people and all the required facilities (infirmary,

service center and security), has been delivered;

The cafeteria built for the employees working on the project is already operating, with a catering

capacity of 3,000 meals per day;

There were altogether 1,800 people working on the project at the end of September ;

In the 3Q06 were invested R$ 232.0 million, accounting as of September06 R$ 324.0 million

Klabin MA 1100 ProjectFinancial Schedule


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Financial Schedule

Completed by

Sep'06

2006E 2007E 2008E Total

324.0 600.0 1,430.0 170.0 2,200.0E - Estimated

Financial Disbursement ScheduleR$ Million


Klabin MA 1100 ProjectW orks process


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W orks process

Pr o j e c t A p p r o v a l

Eng inee r ing

Ci v i l w o r k s

Elec t ro-Mechanica l Erec t ion

Com m ission ing MP9

Sta r t up MP9

Star t up TG8

20062006 20072007 20082008

13/01/2006

30/01/2008

01/10/2007

SeptemberSeptember

MP9 General

and Details

Klabin


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and Growth

Klabin Creating Value

Investor Relations


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Ronald Seckelmann, CFO and IR Director

Luiz Marciano Candalaft, IR ManagerPhone : (55 11) 3225-4045 - [email protected]

Gustavo Schroden, IR AnalystPhone : (55 11) 3225-4059 - [email protected]

Iago Whately, IR AnalystPhone : (55 11) 3225-4046 [email protected]

[email protected]

KPresentation2006 Ing

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