KPresentation2007 Ing

8/6/2019 KPresentation2007 Ing

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3rd Quarter 200733 rdrd Quarter 2007Quarter 2007


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ContentsContents

MA 1100 Expansion Project

Businesses and Markets

Company Profile

Financial Highlights

Future


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3

Preferred

BNDESPAR

31%

Foreign

Investors

30%

Brazilian

Investors

37%

600,855,733

Shareholder StructureShareholder Structure 31/10/200731/10/2007

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$ 5.59R$ 11.2 million

Common

Klabin

Irmos

59%

Monteiro

Aranha

20%

Foreign

Investors

3%Brazilian

Investors

18%

316,827,563

Treasury

Stock

2%


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HistoryHistory

The Klabin and

Lafer families

started Klabin

Irmos & Cia.

A company for

imports and sales

of office supplies

and printing

Already

positioned

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.

Acquisition of

Igaras Papis e

Embalagens

Leadership

consolidated

Sale of non

core assets

and focus on

packaging

MA 1100

Expansion

Project

1899 2007

Foundation of Klabin

do Parana, the first

integrated pulp and

paper mill in Brazil.

1934

Company

w ill reach

production

capacity of

2 million

tons

With 108 years of history and tradition, Klabin grows sustainably,

supported by projects structured towards value creation.

70s 2000 2003 2006

PM #9

194720s


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Company ProfileCompany Profile

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

Packaging Paper Paper Packaging

Net Revenue: US$ 1.3 bi llion in 2006

Forestry

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)

Wood logs

10%

Coated Boards

25%

Industrial Bags

13%

Corrugated Boxes

31%

Kraftliner

21%


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CorrugatedBoxes

540,000 ton

Finished

Products

(*)

Liquid Packaging Board

390,000 ton

Folding Box BoardCarrier Board

Wood - 2.5 mil lion ton

100%

Integrated

Kraftliner720,000 ton

Sack Kraft155,000 ton

CoatedBoards

390,000 ton

OCC380,000 ton

1.6 million ton

RecycledPaper

300,000 ton

100%Integrated

Exports410,000 ton

35%

Integrated

100%

Integrated

NBSK/BEKP

1.3 millionton

Pulp

Industrial Bags155,000 ton

Domestic

andExport

Sales

Lands

423,000 ha

Forests

PlantedForests

Pine158,000 ha

Eucalyptus53,000 ha

(*) All figures refer toinstalled production capacity

Integrated Business Concept


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Klabin'sKlabin's presencepresence

Pulp and Paper Mills

Forestry

Industrial Bags

Corrugated Boxes

Recycled Papers


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w ith frequent communication w ith Internal and

Joined BOVESPAs of Corporate Governance

Klabins preferred shares are traded at I BOVESPA, I BX-5 0 e MSCI Braz i l

rights of 70% for preferred shares

Adopted for securities issued by the company

of Board of Directors and Executive Board

for members of the Executive Board are linked to

are rehired only after a

by the Board of Directors

Level I

Tag Along

i ns ide r t rad in g po l i cy

St r i ct separa t ion

Compensa t ions va lue c rea t ion

m e t r i c s (EVA) that take into account the opportunity cost of investments

I n d epen d en t Au d i t o r s f o r m al an d docu m en t ed ev alu at ion

Per m an en t Fisca l Cou n ci l Ex t er n al

A u d i t o r s

Corporate GovernanceCorporate GovernanceHighlightsHighlights


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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 w ithout 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. w ith 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 w ith 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 w ith laws


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Businesses and MarketsBusinesses and Markets


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Brazilian Market

Metallic

21%

Plastic

32%

Paperboard

31%

Paper 8%

Glass 6%

Wood 2%

Global Packaging Market

Metallic

20%

Coated

Boards 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:


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Global MarketDemand increase for paper and boards

Source: Pyry

0 10 20 30 40 50 60 70 80 90 1000

1

2

3

4

Newsprint

Uncoated

Mechanical

CoatedMechanical

UncoatedWoodfree

CoatedWoodfree

TissueCorrugating Material

Cartonboards

OtherPaperandBoard

SackPaper

Share of Consumption in 2003 (% )

Projected

DemandGro

wth:2003-2020(%)

Avg. Demand Grow th 2.2%

Printing and WritingPapers

Other Industrial Grades


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ForestsForestsForestry base and competitive advantageForestry base and competitive advantage

Softwood - Rotation (years)

20

25

25

35

45

100

0 20 40 60 80 100 120

Klabin

South Africa

Chile

Australia

USA

Sweden

Hardw ood - 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

Company Land

Planted Forests

thousand ha

423

211

Pine

Eucalyptus

158

53

171

Land and Forests 30/ 09/ 2007

Native preserved forests

Average hauling distance: 55 Km


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WoodWood

Products: wood logs

Customers: Sawmills and laminators

Pine

Eucalyptus

Sawn LumberFence

Clear BlocksFinger - Joint - Blanks

MouldingsPlywood

Sawn LumberVeneerPlywood

Glued Laminated Beams

Edge Glued PanelsOutdoor Furniture

Main Products

USA

Europe

DomesticMarket

Europe

Asia

USA

DomesticMarket

DestinationsSpecies


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WoodWoodHousing startsHousing starts

"US New Privately Ow ned Housing Units Started"

Seasonally Adjusted Annual RateMillions

1.000

1.200

1.400

1.600

1.800

2.000

2.200

2.400

J

an-0

0

Jul-00

J

an-0

1

Jul-01

J

an-02

Jul-02

J

an-03

Jul-03

J

an-0

4

Jul-04

J

an-05

Jul-05

J

an-0

6

Jul-06

J

an-07

Jul-07

Housing Units Average

Source: US Census Bureau


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KraftlinerKraftliner

Pioneerism and leadershipin the production ofkraftliner in Latin

America

Largest producer andexporter of packaging

paper - 74% of

Brazilian exports

6% share of the globalmarket, exporting to

more than 50 countries

Supplies Klabins 9

corrugated boxesconverting plants


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0

100

200

300

400

500

600

700

800

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

Kraftliner price (free delivered) AverageSource: FOEX

KraftlinerKraftlinerPrice evolutionPrice evolution

2004 2005 2006 2007

541 539

602

710

US$/ton


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Coated BoardsCoated Boards

Car r ie r Board

Liquid PackagingBoards (LPB)

Folding BoxBoards

Carrier Boards


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Attributes

Softwood Stiffness

Printability Hardwood + 3 coating

Runability 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

17

Coated BoardsCoated BoardsBoardsBoards StructureStructure


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1) LPB1) LPB -- Liquid Packaging BoardLiquid Packaging Board

Packaging ProductsPackaging P roducts

Wet tear resistanceWet tear resistance StiffnessStiffness

Edge WeakeningEdge Weakening

PrintabilityPrintability

RunabilityRunability

Technical AttributesTechnical Attributes

Product must be kept refrigeratedProduct must be kept refrigerated

NonNon--aseptic Packagingaseptic Packaging

Aseptic PackagingAseptic Packaging Long LifeLong Life

Isolates product and free of contaminationIsolates product and free of contamination

14

Coated BoardsCoated BoardsKinds of BoardsKinds of Boards


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2)) Carrier BoardCarrier Board

Packaging ProductsPackaging Products

Wet tear resistanceWet tear resistance




BeveragesBeverages

Tins and bottlesTins and bottles

Dairy ProductsDairy Products

Plastic bottles and potsPlastic bottles and pots

1515



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3) Folding Box Board3) Folding Box Board

Frozen FoodsFrozen Foods

Packaging ProductsPackaging Products



Stiffness + StackingStiffness + Stacking


Powder DetergentPowder Detergent

CerealsCereals

16


Coated BoardsCoated Boards


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Food/Beverages

93%

Personal

Care

3%

Others

4%

ConsumptionConsumptionMain IndustriesMain Industries

20062006

Coated BoardsCoated BoardsBrazilian Consumption per Main IndustriesBrazilian Consumption per Main Industriesand Market Shareand Market Share

Source: BRACELPA

Market ShareMarket Share20062006

Includes LPBIncludes LPB

Suzano

25%

Ripasa

11%

Papirus

10%

Nobrecel1%

Klabin

37%

Miguel Forte

5%

Ibema

8%

Bonet

3%

d d


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3.6

4.0

4.24.4

4.8

5.1

2.5

1.7

3.1

4.2

3.4

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

UHT Milk Sales - Billion liters

Source: ABLV

CAGR:12%

Coated BoardsCoated BoardsBrazilian UHT Milk SalesBrazilian UHT Milk Sales


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25

0

200

400

600

800

1,000

1,200

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

Coated Board Price AverageSource: RISI

Coated BoardsCoated BoardsFree delivered (USA) price evolutionFree delivered (USA) price evolution

2004 2005 2006 2007

847897 936

998

US$/ton


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Global Board MarketGlobal Board Market28 million tons/ year28 million tons/ year

Klabin is focused on the virgin fiber based segment whichKlabin is focused on the virgin fiber based segment which

amounts to 10 million tons/ yearamounts to 10 million tons/ year

North AmericaNorth America8.48.4

Latin AmericaLatin America1.41.4

Africa and Middle EastAfrica and Middle East0.60.6

EuropeEurope5.65.6

Eastern EuropeEastern Europe

1.51.5

AsiaAsia10.510.5


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Coated Board Global MarketDemand Growth

Source: Pyry

100

110

120

130

140

150

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

Paper Boards

CAGR Paper: 2.1%

CAGR Boards: 2.6%

Inception 1990 = 100


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Coated BoardsCoated BoardsKlabinKlabin -- 66 thth Largest Producer of Virgin Coated BoardsLargest Producer of Virgin Coated Boards

Source: Poyry

0 500 1000 1500 2000 2500 3000

MeadWestvaco

Stora Enso

International Paper

Graphic Packaging

Korsnas/Frovi

Klabin

M Real

Iggesund

Potlatch

Georgia Pacific

1,000 tons/year

Liquid Packaging Board Folding Box Board Carrier Board Solid Bleached Sulphate


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Industrial BagsIndustrial Bags

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

I d t i l BI d t i l B


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Industrial BagsIndustrial BagsBrazilian Consumption per Main IndustriesBrazilian Consumption per Main Industries

Building

Industry

67%

Agribusines

8%

Others10%

Food

20%


20062006

Source: Klabin

Ind st ial BagsIndustrial Bags


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Industrial BagsIndustrial BagsBrazilian Consumption of Cement ProductionBrazilian Consumption of Cement Production

Million tons

2.0

3.0

4.0

jan fev mar abr mai jun jul ago set out nov dez

2005 2006 2007

Source: SNIC

C t d BC t d B


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Corrugated BoxesCorrugated Boxes

Leadership of thecorrugated boxes

market in Brazil

Largest productioncapacity in Brazil withnine corrugated boxes

converting plants

Klabins products reachevery industry sector,

providing totalprotection for packagedproducts transported



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ggBrazilian Consumption per Main IndustriesBrazilian Consumption per Main Industriesand Market Shareand Market Share

Tobacco

10%

Personal

Care

8%

Fruits

8%

Others

24%

Food/

Beverages

50%

Rigesa

12% Orsa

10%

Trombini

7%

Penha

5%

So

Roberto

4%

Adami4%INPA

4%Others

34%

Klabin

20%


20062006

Market ShareMarket Share20062006

Source: ABPO



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Corrugated BoxesCorrugated BoxesBrazilian shipmentsBrazilian shipments

Thousand tons

140

150

160

170

180

190

200

210

Jan-02

Apr-0

2

Jul-0

2

Oct

-02

Jan-03

Apr-0

3

Jul-0

3

Oct

-03

Jan-04

Apr-0

4

Jul-0

4

Oct

-04

Jan-05

Apr-0

5

Jul-0

5

Oct

-05

Jan-06

Apr-0

6

Jul-0

6

Oct

-06

Jan-07

Apr-07

Jul-0

7

Shipments Monthly Average

179

157

176 180182

188

Source: ABPO

Fi i l Hi hli htFinancial Highlights


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Financial HighlightsFinancial Highlights

Klabin'sKlabin's PerformancePerformance 9M079M07


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2,128

2,018

2,713

691 645

9M07 9M06 2006

1,097

1,036

1,393

359 340

9M07 9M06 2006

Klabin'sKlabin's PerformancePerformance 9M079M07

Does not include wood Includes wood

Net RevenueNet Revenue

R$ millionR$ million

715

667

1T

2T

1T

2T

7237053T

3T

Sales VolumeSales Volume1,000 tons1,000 tons

1T1T

2T

2T

378

341

3T 3T360

356

Volume and Net Revenue growingVolume and Net Revenue growing

Sales Volume and Net RevenueSales Volume and Net Revenue 9M079M07


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Sales Volume and Net RevenueSales Volume and Net Revenue 9M079M07By MarketBy Market

DomesticDomestic

MarketMarket

62%62%

ExportsExports

38%38%

Does not include woodDoes not include wood

DomesticDomestic

MarketMarket

74%74%

ExportsExports

26%26%

Includes woodIncludes wood

R$ 1405 millionR$ 1405 millionR$ 2,128 mil lion1,097 thousand ton

Net RevenueNet RevenueSales VolumeSales Volume

Growth w ith Domestic MarketGrowth w ith Domestic Market

Sales Volume and Net RevenueSales Volume and Net Revenue 9M079M07


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Does not include woodDoes not include wood Includes woodIncludes wood

R$ 2,128 mil lion1,097 thousand ton


Sales Volume and Net Revenue 9M07By ProductBy Product

Corrugated Boxes sales are still consistentCorrugated Boxes sales are still consistent

CoatedCoated

BoardsBoards

25%25%

IndustrialIndustrial

BagsBags

8%8% KraftlinerKraftliner

32%32%

OthersOthers

3%3%

CorrugatedCorrugatedBoxesBoxes

32%32%

CoatedCoated

BoardsBoards

25%25%

IndustrialIndustrial

BagsBags14%14%

KraftlinerKraftliner

19%19%

WoodWood

8%8%

CorrugatedCorrugated

BoxesBoxes

32%32%

OthersOthers

2%2%

Exports DestinationExports Destination 9M079M07


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Exports DestinationExports Destination 9M079M07

US$ 277 million422 thousand ton


Latin America and Europe answer for 89% of the salesLatin America and Europe answer for 89% of the sales

EuropeEurope36%36%

AfricaAfrica

5%5%

LatinLatin

AmericaAmerica

53%53%AsiaAsia

5%5%

NorthNorthAmericaAmerica

1%1%

AsiaAsia

5%5%

EuropeEurope

30%30%

NorthNorth

AmericaAmerica

2%2%

AfricaAfrica

4%4%LatinLatin

AmericaAmerica

59%59%

EBITDAEBITDA


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1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

R$/US$

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07Kraftliner FOEX (US$)

200200203

184170169186

115

155

239246 28%28%29%26%

24%25%

29%

17%

24%

33%

37%

1T05 2T05 3T05 4T05 1T06 2T06 3T06 4T06 1T07 2T07 3T07

EBITDA - R$ million EBITDA Margin

1.98

539

2.43602

710

2.18

EBITDAEBITDA

Margins are recovering, despite the real appreciationMargins are recovering, despite the real appreciation

CapexCapex and Net Debtand Net Debt


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1,449

505

987

324

9 M 0 7 9 M 0 6

Capex MA 1100

1,755

529

9M 07 9 M 06

0.8x

EBITDA

CapexCapex and Net Debtand Net Debt

2.2x

EBITDA

*Annualized EBITDA

Net DebtNet DebtR$ millionR$ million

CapexCapexR$ millionR$ million

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

Net Debt / EBITDA relation under controlNet Debt / EBITDA relation under control

Debt Amortization ScheduleDebt Amortization Schedule


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Foreign Currency 69 63 87 48 193 302 338 347 427

Local Currency 2,128 405 50 221 196 196 169 136 355

Cash 2007 2008 2009 2010 2011 2012 2013

After

2014

2,197

137

468 499 507

782

483389

R$ 3,533 Million

ST: 15% LT: 85%

11.4%

6.8%

268

30/09/0730/09/07

Local Currency (49%)

BNDES

WorkingCapital

NCE

Debentures 18%

5%

67%

11%

Foreign Currency (51%)

Other

NCE

24%

73%

3%

TradeFinance

Average Debt Maturity Average Annual Cost

Total 53 months

Local 45 months

Foreign 61 months

Average Maturity grow ing; Low debt payment on 2008Average Maturity grow ing; Low debt payment on 2008

Spread Over LIBOR and Average MaturitySpread Over LIBOR and Average Maturity


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of dollar denominated Debtof dollar denominated Debt

4.8%

1.1%

4.7%

1.5%

1.1%0.9%

1311

19

62

21

58

0

10

20

30

40

50

60

70

2002 2003 2004 2005 2006 2007

0%

1%

2%

3%

4%

5%

6%

7%

8%

Months

Spread

Over

LIBOR

Average

Maturity

Spread

Net Income and DividendsNet Income and Dividends


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2005 2006 2007

218

260

372

91

213

101 121176

71

110

* Dividend Yield ** 2007 Annualized Yield

172

231

Net Income and DividendsNet Income and Dividends

R$ million

309

473

3.5%*

6.1%*

6.2%**

Net Income 1H

Net Income 2H Declared Dividends 2H

Declared Dividends 1H

ShareShares Performance at Bovespas Performance at BovespaMarket Capitalization and Daily Trade VolumeMarket Capitalization and Daily Trade Volume


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Market Capitalization and Daily Trade VolumeMarket Capitalization and Daily Trade Volume

US$ million US$ billion

4.3

5.0

6.4

5.5 5.8

7.1

4.0

5.8

7.1

3.6

3.33.23.2

4.7

3.1

1.8

3.2

4.04.0

3.3

5.1

2.7

3.0

3.2

2.7

3.5

3.8

3.1

2.8

2.2

2.6

2.22.2

2.02.01.8

2.0

2.2

2.0

2.4

2.0

2.1

1.8

2.3

0.0

2.0

4.0

6.0

8.0

10.0

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

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Daily Trade Volume Market Capitalization

US$ million US$ billion

MA 1100 Expansion ProjectMA 1100 Expansion Project


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Increase of Coated Boards CapacityIncrease of Coated Boards Capacity

MA 1100 ExpansionMA 1100 Expansion ProjectProjectd i i


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Operation Start UP: Sep/ 07

Processing Capacity: 4,500 tons/ day

New WoodNew Wood--Processing LineProcessing Line

MA 1100 Expansion ProjectMA 1100 Expansion ProjectN CMTP P l tN CMTP P l t ChCh ThTh M h i l P lM h i l P l


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New CMTP P lantNew CMTP P lant ChemoChemo--ThermoThermo--Mechanical PulpMechanical Pulp

Operation Start Up: Sep/ 07

Capacity: 140.000 tons/ year

MA 1100 Expansion ProjectMA 1100 Expansion ProjectD bl th Effl t T t t St tiD bl th Effl t T t t St ti


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Operation Start Up: Oct/ 07 Reductions:

25% of the BO5D and COD (biochemical Oxygen demand and chemical Oxygen demand)

15% of the effluent volume per produced ton

Double the Effluent Treatment StationDouble the Effluent Treatment Station

MA 1100 Expansion ProjectMA 1100 Expansion ProjectPaper Machine #9Paper Machine #9 Start up: October 15Start up: October 15 thth 20072007


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

MA 1100 Expansion Project


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New Turbo Generator Start Up: Feb/ 08

Capacity of 72 MWh energy

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

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

Recovery Boiler Start Up: Dec/ 07

Burn capacity of 1,700 tons dry solid/day of black liquor

MA 1100 Expansion ProjectMA 1100 Expansion Project


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Hydro-

electric

27%

Purchased

E. Energy

35%

Biomass

38%

After MA 1100

65% of electric energy65% of electric energy

selfself--sufficiencysufficiency

85 MWh

80% of electric energy80% of electric energy

selfself--sufficiencysufficiency

Biomass

65%

Purchased

E. Energy

20%

Hydro-

electric15%

150150 MWhMWh

Reduced dependence on purchased energyReduced dependence on purchased energy

MA 1100 Expansion ProjectMA 1100 Expansion ProjectResultsResults


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ResultsResults

Operational costs reduction

Plant optimization

Quality and costs leadership

Grow th based on quality and competitiveness

More flexibility to develop new products

Focused in the production of coated boards

Operational

Commercial

Economic/Financing

Future Plant prepared for future capacity expansion

Strong value creation

R$ 750 million increase in the annual revenue,

when running at full capacity

MA 1100 Expansion ProjectMA 1100 Expansion ProjectCapexCapex and Financingand Financing


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CapexCapex and Financingand Financing

Project running on schedule and on budget...

... w ith proper financing

Financing

Capex (R$ mill ion)

Amount Grace Period Amortization MaturityR$ million months

BNDES 1,488 68% 30 78 108 TJLP+2.0%

Cash Generation 712 32%

Total 2,200 100%

InterestSources %

Total2006 3Q07 9M07 4Q07 2008Gross Capex 574 312 1,201 225 200 2,200

Refundable taxes 50 67 214 44 42 350

Net Capex 524 245 987 181 158 1,850

R$ MillionCompleted Total P lanned

MA 1100 Expansion ProjectMA 1100 Expansion ProjectStart Up of the Main EquipmentStart Up of the Main Equipment


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Start Up of the Main EquipmentStart Up of the Main Equipment

20072007 20082008

Wood Ya rd Sep/ 07

Sep/ 07CTMP

Sep/07Refo rm s ( d igest e r , b leach in g )

Oct/ 07Pape r M ach ine # 9

Dec/ 07Recover y Bo i le r

Feb/ 08Tu r b o Ge n er a t o r # 8

Dec/07Pow er Bo i l er ( B iom ass)

Oct/ 07Ef f l uen t Trea t m en t

Integrated Business ConceptAfter MA 1100 Expansion ProjectAfter MA 1100 Expansion Project


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Corrugated

Boxes

540,000 ton

FinishedProducts

(*)

Liquid Packaging Board

740,000 ton

Folding Box BoardCarrier Board

Wood - 2.5 mil lion ton

100

%

Integrate

d

Kraftliner770,000 ton

Sack Kraft155,000 ton

CoatedBoards

740,000 ton

OCC380,000 ton

2.0 million ton

RecycledPaper

300,000 ton

100%Integrated

Exports500,000 ton

35%

Integrated

100%Integrated

NBSKBEKPCTMP

1.7 millionton

Pulp

Industrial Bags155,000 ton

Domestic

and

Export

Sales

Lands

423,000 ha

Forests

PlantedForests

Pine

158,000 ha

Eucalyptus53,000 ha

(*) All figures refer toinstalled production capacity

After MA 1100 Expansion ProjectAfter MA 1100 Expansion Project

FutureFuture


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Grow th StrategyGrow th Strategy


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Coated BoardsWood

Industrial BagsCorrugated Boxes

Domestic Market

Maintain its Leadershipin all BusinessSegments

Grow th StrategyGrow th Strategy


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Coated Boards

Kraftliner

Increase Participationin the Coated Boards

Market

Exports

Value added products

Less volatile prices

Growing market

Costs competitiveness

Entrance barriers

Financial capacity

Technology: use of long and shortfibers and coating

Capacity increase opportunities

Costs competitiveness

Technology

FutureFuture3.0 Million tons/ year until 20123.0 Million tons/ year until 2012


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y

Otaclio Costa (SC) Mill (Phase 1):

Technological update;

Cost reduction;

Improve environmental performance;

30 thousand tons kraftliner production

increase

Correa P into (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.

FutureFuture3.0 Million tons/ year until 20123.0 Million tons/ year until 2012


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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.

FutureFuture4.0 Million tons/ year from 2015 to 20204.0 Million tons/ year from 2015 to 2020


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Even more significant increase of the land and forest baseEven more significant increase of the land and forest base
http://epmma/sites/MA1100/Registro%20de%20Fotos1/34-Reflorestamento/02-%2027-03-2007/Reflorestamento%2003.JPG


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CreatingCreating Value and GrowingValue and Growing


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Klabin IR

Phone: (55 11) 3046-8404 / 8415

[email protected]

KPresentation2007 Ing

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