Quarterly Release

Visit our website: www.klabin.com.br

jul / aug / sep 2007

Start up of Paper Machine # 9

On October 15 the Paper Machine #9 started up, representing the achievement of an important landmark of the MA 1100 Project. The machine installed in the Monte Alegre Mill at Telemaco Borba (PR) is considered the state of the art for the production of coated boards. With production capacity for packaging, the new Monte Alegre Mill to 1.1 boards mills in the world of coated boards.
R$ million Net Revenue
% Exports

of 350 thousand tons per year (tpy) of coated boards machine will increase the production capacity of the million tpy, placing the Mill among the largest carton and placing Klabin as the sixth largest global producer

3Q07 723
24%

2Q07 715
26%

3Q06 705
29%

9M07 2,128
26%

9M06 2,018
27%

3Q07/ 2Q07

3Q07/ 3Q06

9M07/ 9M06

1.2%

2.5%

5.5%

EBITDA
EBITDA Margin

200
28%

200
28%

170
24%

603
28%

526
26%

0.2%

17.7%

14.8%

Net Income
Net Debt Net Debt/EBTIDA (annualized) Capex

178 1,755 2.2 417 377 360

37%

207 1,336 1.7 482 406 378

37%

102 529 0.8 304 388 356

42%

550 1,755 2.2 1,449 1,164 1,097

38%

363 529 0.8 505 1,143 1,036

40%

-14.0% 31.3%

73.6% 231.7%

51.5% 231.7%

-13.6% -7.2% -4.7%

37.1% -3.0% 1.2%

186.9% 1.8% 5.9%

Production Volume - 1,000 t ( * ) Sales Volume - 1,000 t

% Exports

( * ) Figures related to paper, boards and recycled paper production, do not considered corrugated boxes and industrial bags.

Net Income Evolution

R$ Milion

550 10 363 62 301

+79%

540

9M06

9M07

Net income before non-recurring adjusts

Non-recurring adjusts

Investor Relations
Ronald Seckelmann, CFO and IR Director Luiz Marciano Candalaft, IR Manager Iago Whately, IR Analyst Daniel Rosolen, IR Analyst Phone: 55 (11) 3046-5800 invest@klabin.com.br

Results 3Q07 October 30th, 2007

Operating, Economic and Financial Performance

Production Volume
The production of paper and paper boards in the 3Q07 reached 376.7 thousand tons, 3% and 7% below 3Q06 and 2Q07, respectively. A twelve days period maintenance downtime occurred within the quarter in the Monte Alegre Mill (PR), when the final interconnections between the new equipment brought by the MA 1100 Project and the old equipment took place. The operation had a high degree of complexity, but has succeeded very well.
1,164 1,143

377

406

388

3Q07 thousand tons

2Q07

3Q06

9M07

9M06

Sales Volume
The Sales Volume in the 3Q07, without wood, reached 360.0 mil tons, 1% higher than 3Q06 and 5% lower than 2Q07. Export sales volume in the 3Q07 totaled 133.5 thousand tons, 11% and 3% below 3Q06 and 2Q07. The shorter sales volume was due to the maintenance downtime activities related to the MA 1100 Project in the Monte Alegre Mill.

Sales Volume by Market

Thousand tons

Sales Volume by Product 9M07

1,097

1,036

Industrial B ags 9% Co rrugated B o xes 32%

Others 2%

38%

40%

Kraftliner 32%

360
37% 63%

378
37%

356 42% 58% 3Q06

62%

60%

63%

3Q07

2Q07
Domestic Market

9M07
Foreign Market

9M06

Co ated B o ards 25%

does not include wood

Results 3Q07 October 30th, 2007

Net Revenue
Net revenue in the 3Q07, including wood, totaled R$ 722.8 million, 2% and 1% higher than 3Q06 and 2Q07, respectively. The highlights of the quarter compared to the same period of last year were: an increase of revenues of about 15% for corrugated boxes, 5% for industrial bags and 3% for coated boards. Net Income by Market
R$ million
2,128 26%

Net Income by Product 9M07

Wo o d Others 8% 2% Industrial B ags 1 4%

2,018 27%

Kraftliner 1 9%

723 24% 76%

715 26% 74%

705 29% 71%

74%

73%

Co rrugated B o xes 32%

9M07
Foreign Market

Co ated B o ards 25%

3Q07

2Q07
Domestic Market

3Q06

9M06

includes wood

Exports Destination
Volume 9M07
Nort h America Af rica 1% Asia 5% 5%

Net Income 9M07

Nort h America Africa 2% Asia 4% 5%

Europe 36%

Latin America 53%

Europe 30%

Latin America 59%

Results 3Q07 October 30th, 2007

Operating Result
Cost of goods sold in the 3Q07 was R$ 481.9 million, 8% and 6% higher than 3Q06 and 2Q07, respectively, due to additional expenses with the maintenance downtime in the Monte Alegre Mill. Selling expenses reached R$ 65.7 million in the 3Q07, 8% and 3 % lower than 3Q06 and 2Q07. Those expenses represented 9% of net income in the 3Q07, versus 10% in 3Q06 and 9% in the 2Q07. General and administrative expenses totaled R$ 41.2 million in the 3Q07, representing 6% of Net Income, versus 7% in the 3Q06 and 2Q07. Operating result before financial revenues (EBIT) was R$ 138.5 million in the 3Q07, a 20% increase when compared to 3Q06 and stable to 2Q07.

Operating Cash Generation (EBITDA)

Operating cash generation (EBITDA) in the 3Q07 was R$ 200.1 million, with 28% margin. EBITDA acumulated R$ 603.3 millions in the last nine months, with margin of 28%.

EBITDA and EBITDA Margin 29% 26% 25% 24% 186 169 170 184 29% 28% 203 28%

200

200

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

EBITDA - R$ Million

EBITDA Margin

Results 3Q07 October 30th, 2007

EBITDA Variation YTD - R$ Million

90 525
EBITDA Margin 26%

20

-35

-38

41 603
EBITDA Margin 28%

EBITDA 3Q06

Volume

Price

Exchange Rate

COGS

Operational Expenses

EBITDA 3Q07

Financial result and indebtedness

Net financial result accounted for R$ 101.2 million of financial revenues in the 3Q07, against financial revenues of R$ 10.1 million and R$ 139.1 million in the 3Q06 and 2Q07. In response to the Brazilian exchange rate appreciation against the dollar, the Company adopted a strategy of hedging cash flows from exports that achieved positive results of R$ 13.4 million in the 3Q07, totaling R$ 48.2 million in nine months. In the 3Q07 the BNDES cash allowances for MA 1100 Project reached R$ 216.3 million, totaling R$ 1,151.9 million since the beginning of the Project. Total financing will be R$ 1.7 billion, bearing interest of TJLP plus a spread of less than 2% per year. Gross debt increased from R$ 3,532.6 million as of June 30, 2007 to R$ 3,886.8 million at September 30, 2007, of which only 14% is short term. Foreign currency debt reached R$ 1,899.3 million, representing US$ 1,032.9 million. Average maturity of debt remained stable at 52 months. On November 1st 2007, Klabin will do the last payment of the debentures issued three years before in the amount of R$ 329.7 million, including financial charges. The payment will represent: a) a reduction in the average cost of local debt financing; b) an increase in the average maturity of total financing. Net debt was R$ 1,754.6 million at September 30, 2007, an increase of R$ 418.7 million compared to June 30, 2007. In 2007, Klabin paid for its shareholders R$ 283.0 million in dividends, invested R$ 1,449.0 million with expansion projects and the acquisition of land and forest and repurchased 9,243,000 preferred shares in the amount of R$ 47.8 million. In spite of these disbursements, net debt reached 2.2x annual cash generation in September of 2007.

Results 3Q07 October 30th, 2007

Net Debt YTD - R$ Million

283 1,780

49

-331

291

1,755

529

-787 -59

Net Debt 3Q06

EBITDA

Working Capital

Capex

Dividends Payment

Treasury Stock Purchase

Financial Result

Others

Net Debt 3Q07

Net Income
Net income in the 3Q07 was R$ 177.6 million. In nine months, net income accumulated R$ 549.6 million, or R$ 0.61 earnings per share, versus R$ 362.8 million and R$ 0.40 earnings per share in the same period of 2006.

R$ million Net Income Reversal in the Provision / Court Decision Gain Financial Result (Reversal in the Provision for Contingencies Related to PIS/COFINS) Income Taxes over Non-Recurring Results Net Income (before extraordinary adjustments)

9M07 550 (15) 0 5 540

9M06 363 0 (94) 32 301

9M07/ 9M06

51.5%

79.4%

Results 3Q07 October 30th, 2007

Business Performance
BUSINESS UNIT - FORESTRY
Klabin handled 1.8 million tons of Pine and Eucalyptus logs, as well as woodchips and biomass for energy generation in the 3Q07, volume 3% higher than 3Q06 and 2Q07. The amount transferred to the mills in Parana, Santa Catarina and So Paulo totaled 1.2 million tons. Sales volume of logs to sawmills and laminators was 668.8 thousand tons in the 3Q07, 5% lower than 3Q06 and 14% higher than 2Q07. Net revenue from logs sales to third parties in the 3Q07 reached R$ 61.5 million, 10% lower than 2Q06 and 12% higher than 2Q07. The slowdown in the US housing construction activity continues to affect negatively wood sales for third parties. In September, seasonally adjusted annual rate of new privately owned housing starts in the US was 1.2 million, 10% and 19% lower than August 2007 and September 2006, respectively.

"US New Privately Owned Housing Units Started" Seasonally Adjusted Annual Rate Millions
2,500

2,000

1,500

1,000
Jan- 00 Jul- 00 Jan-01 Jul-01 Jan- 02 Jul- 02 Jan-03 Jul-03 Jan- 04 Jul- 04 Jan-05 Jul-05 Jan- 06 Jul- 06 Jan-07 Jul- 07

So urce: U.S. Census B ureau

At the end of September, the company held 423 thousand hectares of land, of which 349 thousand hectares are owned and 74 thousand hectares are leased. Planted forests account for 211 thousand hectares, of which 158 thousand hectares are Pine and 53 thousand hectares are Eucalyptus. There are also 171 thousand hectares of permanent preservation areas and legal reserves. In order to prepare the company for the capacity expansion project under way, as well as future expansions, the company remains increasing timberland base by means of acquisitions and the incentive program.

Results 3Q07 October 30th, 2007

BUSINESS UNIT - PAPER

Sales Volume of paper and coated boards to third parties reached 203.1 thousand tons in the 3Q07, 4% and 2% lower than the 3Q06 and 2Q07, respectively. Net revenue of paper and coated boards totaled R$ 304.2 million in the 3Q07, 4% and 3% lower compared to the 3Q06 and 2Q07. Exports in the 3Q07 totaled 121.9 thousand tons, 12% and 3% lower than 3Q06 and 2Q07. The volume of products transferred from the paper mills to the corrugated boxes conversion plants in the months of July and August was higher than usual, reducing the availability of products for export. In September, after the maintenance downtime in the Monte Alegre Mill the volume available for export was even lower. Sales Volume of kraftliner totaled 113.2 thousand tons in the 3Q07, 7% and 3% below 3Q06 and 2Q07, respectively. Export sales reached 96.7 thousand tons in the 3Q07, the equivalent of 85% of the products sales. Net revenue of kraftliner reached R$ 127.4 million in the 3Q07, 12% and 7% lower than 3Q06 and 2Q07.

US$ 800 700 600 500

Kraftliner Prices x Currency

707

R$/US$ 4.00 3.50

602 539 2.43

3.00 2.50

400 300 200 1Q05 Source: FOEX 2Q05 3Q05 4Q05 1Q06

2.18

2.00

2.00 1.50

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Average Price (US$)

Average FX Rate (R$/US$)

Kraftliner price in Europe kept unchanged in the 3Q07; however, the prices in Latin America have gone up about US$ 40/ton, a price move that was followed by Klabin. The growth of industrial activity in Europe has sustained the rise of packaging demand and, on the cost side, OCC prices remained under pressure of Chinese demand. Under this scenario, the prices of packaging papers that were flat in the 3Q07 might regain the growth trend in the next quarters. Sales Volume of coated boards in 3Q07 reached 89.9 thousand tons, 2% higher than 3Q06 and 1% lower than the 2Q07. Net revenue reached R$ 176.8 million in the 3Q07, 3% higher than 3Q06 and stable when compared to the 2Q07. Coated boards exports totaled 25.2 thousand tons in the 3Q07, 10% and 8% lower than 3Q06 and 2Q07.

Results 3Q07 October 30th, 2007

BUSINESS UNIT CORRUGATED BOXES

The market volume remains positive. Preliminary data provided by Brazilian Association of Corrugated Boxes (ABPO) indicates that shipments of corrugated boxes and boards in the nine months of 2007 were 1,696 thousand tons, 5% higher than the same period of 2006. Klabins shipments reached 115.6 thousand tons in the 3Q07, 10% higher than 3Q06 and 10% lower than 2Q07. In the first nine months of 2007 shipments reached 351.1 thousand tons, 7% higher than the same period of 2006. On September, the market share of Klabin reached 21%.
Brazilian shipments of corrugated boxes - thousand tons 1,694 1,611 1,574 1,390 1,607 1,618

9M02
Source: ABPO

9M03

9M04

9M05

9M06

9M07

Net revenue on the 3Q07 totaled R$ 240.8 million, 15% and 2% higher than the 3Q06 and 2Q07, respectively. OCC prices fell in the 3Q07, on the other hand, corrugated boxes prices recovered.

BUSINESS UNIT INDUSTRIAL BAGS

Klabin is the market leader in the industrial bags industry. The housing construction (cement bags) and agribusiness (seed bags) are the main consumption markets. Sales Volume of industrial bags in the 3Q07 totaled 33.1 thousand tons, 9% and 7% higher than the 3Q06 and 2Q07. Net revenue in the 3Q07 was R$ 100.6 million, 5% higher than 3Q06 and 2Q07. The industrial bags unit has been affected positively by the housing construction industry. According to data provided by the National Union of the Cement Industry, cement consumption increased 8% from January to August of 2007 when compared with the same period of 2006.

Results 3Q07 October 30th, 2007

Consumption of National Cement Production

Million tons

4.0

3.0

2.0

jan

feb

mar

apr

may

jun

jul 2006

aug

sep 2007

oct

nov

dec

2005
So urce: Natio nal Cement Industy A sso ciatio n (SNIC)

Export sales volume in the 3Q07 reached 8.0 thousand tons, slightly below the previous quarters, in result of the strong demand in the local market. In the Lages (SC) conversion unit last generation equipment were installed, which are highly productive and will make possible the production of pasted valve sack of a higher quality. The productivity increase, in this unity, is presented in the chart below.

Average Productivity - Pasted Bags

Thousand / Man / Year 1100 1000 900 800 700 600 500 400 9M02 9M03 9M04 9M05 9M06 9M07 790 724 743 798 887 1059

10

Results 3Q07 October 30th, 2007

Capital Markets
At September 30th, 2007 Preferred Shares Share Price (KLBN4) Book Value Daily Trade Volume Market Capitalization 600.9 million R$ 7.00 R$ 3.04 R$ 11.2 million R$ 6.4 billion

The following chart shows the performance of Klabins preferred shares compared with Sao Paulo Stock Exchange Index (BOVESPA):
KLBN4 x IBOVESPA

140 130 120 110 100 90 80

Closing Price = 12/28/06

+36.0% +30.8%

In the 9M07, Klabins preferred shares (KLBN4) had a nominal price increase of 30.8% and IBOVESPA 36.0%. The shares were traded in all trading sessions of BOVESPA, totaling 123,055 transactions in the period, the equivalent of 327.4 million shares and an average daily trading volume of R$ 10.4 million, which is a 28% increase when compared to R$ 7.5 million in the same period of 2006. Klabins preferred shares were traded in BOVESPA within the 3Q07 at the average price of R$ 6.38/share, which means a slightly higher price level than the R$ 6.35/share average price in the 2Q07. Klabins shares are also traded over-the-counter (OTC) as Level I ADRs in the US market under the code KLBAY. The shareholders equity of Klabin consists of 917.7 million shares, of which 316.8 million are common shares and 600.9 million preferred shares.

Dividends
Since September 5th, shareholders received intermediary dividends in the amount of R$ 173.0 million, equivalent to R$ 179.97 per thousand ordinary shares and e R$ 197.97 per thousand preferred shares.

12 /2 8/ 06 01 /1 1/ 07 01 /2 5/ 07 02 /0 8/ 07 02 /2 2/ 07 03 /0 8/ 07 03 /2 2/ 07 04 /0 5/ 07 04 /1 9/ 07 05 /0 3/ 07 05 /1 7/ 07 05 /3 1/ 07 06 /1 4/ 07 06 /2 8/ 07 07 /1 2/ 07 07 /2 6/ 07 08 /0 9/ 07 08 /2 3/ 07 09 /0 6/ 07 09 /2 0/ 07

KLABIN

IBOVESPA

11

Results 3Q07 October 30th, 2007

Capex
The main investments made in 3Q07 are listed hereafter:
R$ Million Forestry Paper Corrugated Boxes Industrial Bags Others Total 3Q07 70 312 4 26 5 417 9M07 211 1,173 11 37 17 1,449

The MA 1100 Project investment is listed below: Completed R$ Million 9M07 2006 3Q07 Gross Capex 574 312 1,201 Refundable taxes 50 67 214 Net Capex 524 245 987

Total Planned 4Q07 2008 225 200 44 42 181 158

Total 2,200 350 1,850

The taxes mentioned above will be recovered up to a 4 years period.

MA 1100 Project
In September, during the maintenance downtime of the Monte Alegre Mill (PR), the final interconnections of the existing equipments with the new equipment installed by the carton board production expansion project took place. Furthermore, the operations of the new woodprocessing line, the CTMP plant, the reformed bleacher and the continuous digester started up. In October the Effluent Treatment Station started up and, finally, on October 15, the Paper Machine #9 produced its first paper reel.

12

Results 3Q07 October 30th, 2007

The new recovery boiler will be operational in December, as well as, the new power boiler powered by biomass. After the start of the new Turbo Generator in February of 2008, the largest expansion project of Klabins 109 years of history will be completed. In the picture below the Paper Machine #9:

Sales Agreements
In September, Klabin and MeadWestvaco announced a global sales and marketing agreement in which MeadWestvaco will sell a share of the coated boards produced in the Monte Alegre Mill to the United States, Europe and Asia. The agreement will go into effect on January 1st, 2008. In addition, the company announced the signature of a supplying agreement with Tetra Pak, which aims to increase the supply of coated boards to Tetra Paks plants in Brazil, Argentina and Asia. Last but not the least; the company announced a sales agency agreement with Perez Trading, which will market Klabin boards in some Latin American countries. The three agreements account for 530 thousand tpy of coated boards, or 72% of installed capacity of 740 thousand tpy.

13

Results 3Q07 October 30th, 2007

Future
Klabin is developing studies of engineering, economic and financial feasibility of several expansion projects in the mills of Santa Catarina (Otaclio Costa and Correia Pinto) and Parana (Monte Alegre). Those opportunities of organic growth will lead Klabin to a 3.0 million tpy production capacity of packaging paper and boards by 2012. Aiming to reach that production capacity, the company will continue the acquisitions of land and planted forests located in a short distance from its mills. The company has also set the goal of achieving the production capacity of 4.0 million tpy between 2015 and 2020; to sustain this expansion an even more significant increase of the land and forest base will be needed.

Conference Call

Wednesday, October 31st, 2007 9:00 a.m. (N.Y.) / 11:00 a.m. (Braslia) Password: Klabin Phone: U.S. participants: 1-888-700-0802 International participants: 1-786-924-8430 Brazilian participants: (55 11) 4688-6301 Replay: (55 11) 46886225 Password: 240

Webcast
The audio of the conference call will also be broadcasted by the internet. Access: www.collaborate.com.br/klabin
HTU

With a Gross revenue of R$ 3.2 billion in 2006, Klabin is the largest integrated manufacturer of packaging papers in Brazil, with an annual production capacity of 1.6 million tons of products. The Company has defined its strategic focus in the following fields of business: paper and coated boards for packaging, corrugated boxes, industrial sacks and wood. It is the market leader in all of these.
The declarations made in this release, which refer to the business prospects of the Company, its forecast of operational and financial results and to its potential growth, should be considered as mere speculation based on Managements expectations with regard to the Companys future. These expectations are highly susceptible to changes in the market, in the state of the Brazilian economy, in industrial and, not least, in international markets.

14

Results 3Q07 October 30th, 2007 Results 3Q07 October 30th, 2007
P P

Appendix 1 Statement of Consolidated Results Public Company Legislation (R$ thousand)

3Q07 Gross Revenue Net Revenue Cost of Products Sold Gross Profit Selling Expenses General & Administrative Expenses Other Revenues (Expenses) Total Operating Expenses Operating Income (before Fin. Results) Equity in net income (loss) of subsidiaries Financial Expenses Financial Revenues Net Foreign Exchange Losses Net Financial Revenues Operating Income Non Operating Revenues (Expenses) Net Income before Taxes Income Tax and Soc. Contrib. Minority Interest Net Income Depreciation/Amortization/Exhaustion EBITDA 869,035 722,756 (481,913) 240,843 (65,731) (41,251) 4,711 (102,271) 138,572 (120) (47,445) 80,676 67,963 101,194 239,646 1,015 240,661 (59,511) (3,632) 177,518 61,557 200,129 3Q06 838,698 705,283 (448,250) 257,033 (71,160) (49,855) (20,282) (141,297) 115,736 (131) (60,299) 1,840 68,513 10,054 125,659 689 126,348 (20,770) (3,200) 102,378 54,339 170,075 9M07 2,552,951 2,127,792 (1,372,736) 755,056 (200,036) (131,224) (2,983) (334,243) 420,813 (161) (151,714) 227,164 234,202 309,652 730,304 6,607 736,911 (176,780) (10,578) 549,553 182,495 603,308 9M06 2,413,428 2,017,781 (1,303,602) 714,179 (201,853) (131,564) (40,824) (374,241) 339,938 (339) (181,879) (11,538) 303,464 110,047 449,646 4,276 453,922 (79,957) (11,149) 362,816 185,606 525,544 100.0% 66.7% 33.3% 9.1% 5.7% -0.7% 14.2% 19.2% 0.0% 6.6% -11.2% 9.4% -14.0% 33.2% -0.1% 33.3% 8.2% 0.5% 24.6% 8.5% 27.7% 100.0% 63.6% 36.4% 10.1% 7.1% 2.9% 20.0% 16.4% 0.0% 8.5% -0.3% 9.7% -1.4% 17.8% -0.1% 17.9% 2.9% 0.5% 14.5% 7.7% 24.1% 100.0% 64.5% 35.5% 9.4% 6.2% 0.1% 15.7% 19.8% 0.0% 7.1% -10.7% 11.0% -14.6% 34.3% -0.3% 34.6% 8.3% 0.5% 25.8% 8.6% 28.4% 100.0% 64.6% 35.4% 10.0% 6.5% 2.0% 18.5% 16.8% 0.0% 9.0% 0.6% 15.0% -5.5% 22.3% -0.2% 22.5% 4.0% 0.6% 18.0% 9.2% 26.0% % of Net Income 3Q07 3Q06 9M07 9M06

15
T

15

Results 3Q07 October 30th, 2007 Results 3Q07 October 30th, 2007

Appendix 2 Consolidated Balance Sheet Public Company Legislation (R$ thousand)

Assets Current Assets Cash and banks Short-term investments Receivables Inventories Recoverble taxes and contributions Other receivables 9/30/2007 3,132,213 59,036 2,073,129 450,021 304,298 168,803 76,926 12/31/2006 3,142,402 31,618 2,258,563 388,358 275,956 128,963 58,944 Liabilities and StockholdersEquity Current Liabilities Loans and financing Debentures Suppliers Income tax and social contribution Taxes payable Salaries and payroll charges Dividends to pay Other accounts payable Long-Term Liabilities Loans and financing Other accounts payable Minority Interests StockholdersEquity Capital Capital reserves Revaluation reserve Profit reserve Treasury stock Total 9/30/2007 1,270,369 225,994 329,723 407,225 123,168 44,989 66,336 0 72,934 3,467,492 3,331,108 136,384 120,321 2,788,975 1,500,000 83,986 83,643 1,195,047 (73,701) 7,647,157 12/31/2006 1,072,587 285,548 320,552 212,514 9,234 24,239 64,482 110,003 46,015 2,477,842 2,386,522 91,320 112,253 2,460,771 1,100,000 84,878 85,220 1,216,552 (25,879) 6,123,453

Long-Term Receivables Deferred income tax and soc. Contrib. Taxes to compensate Judicial Deposits Other receivables

493,990 64,403 279,093 89,130 61,364

304,420 109,911 52,278 93,529 48,702

Permanent Assets Other investments Property, plant & equipment, net Deferred charges Total

4,020,954 63,113 3,836,096 121,745 7,647,157

2,676,631 2,634 2,616,263 57,734 6,123,453

16 16

Results 3Q07 October 30th, 2007

Appendix 3 Volume and Net revenue by Product and Market

Domestic Market Volume (1,000 t) Kraftliner Coated Boards Corrugated Boxes Industrial Bags Others Total Wood Volume (1,000 t) Net Revenue (R$ million) 1Q06 11.8 60.0 106.7 21.4 7.8 207.7 693.5 481.8 2Q06 12.4 56.2 113.1 19.5 9.1 210.3 689.1 492.0 3Q06 9M06 4Q06 2006 1Q07 12.4 60.8 106.8 23.2 5.2 208.4 626.3 487.3 2Q07 19.3 63.6 126.9 22.2 7.6 239.6 584.8 531.5 3Q07 9M07

11.6 35.8 60.5 176.7 104.5 324.3 21.5 62.4 6.9 23.8 205.0 623.0 701.1 2,083.7 498.3 1,472.1

12.6 48.4 67.3 244.0 105.1 429.4 23.3 85.7 6.4 30.2 214.7 837.7 542.1 2,625.8 503.9 1,976.0

16.5 48.2 64.7 189.1 114.9 348.6 25.1 70.5 5.3 18.1 226.5 674.5 668.8 1,879.9 550.6 1,569.4

Foreign Market Volume (1,000 t) Kraftliner Coated Boards Corrugated Boxes Industrial Bags Others Total Net Revenue (R$ million) Total Sales Volume (1,000 t) Kraftliner Coated Boards Corrugated Boxes Industrial Bags Others Total Wood Volume (1,000 t) Net Revenue (R$ million) Kraftliner Coated Boards Corrugated Boxes Industrial Bags Others Wood Total

1Q06 101.6 19.9 0.8 7.3 2.4 132.0 163.4 1Q06 113.4 79.9 107.5 28.7 10.2 339.7 693.5 121.3 155.6 202.0 88.8 9.4 68.1 645.2

2Q06 91.2 25.1 1.5 9.5 2.9 130.2 175.3 2Q06 103.6 81.3 114.6 29.0 12.0 340.5 689.1 117.8 160.5 216.1 87.9 19.4 65.6 667.3

3Q06 110.5 27.9 0.9 8.8 2.7 150.8 207.0 3Q06

9M06 303.3 72.9 3.2 25.6 8.0 413.0 545.7 9M06

4Q06 108.1 24.6 0.3 7.4 2.3 142.7 191.1 4Q06

2006 411.4 97.5 3.5 33.0 10.3 555.7 736.8 2006

1Q07 111.0 27.8 0.6 8.3 2.8 150.5 203.2 1Q07 123.4 88.6 107.4 31.5 8.0 358.9 626.3 142.2 174.9 201.3 96.6 15.2 60.3 690.5

2Q07 98.0 27.3 1.2 8.7 3.0 138.2 183.0 2Q07 117.3 90.9 128.1 30.9 10.6 377.8 584.8 136.7 177.1 236.4 95.6 13.9 54.8 714.5

3Q07 96.7 25.2 0.7 8.0 2.9 133.5 172.2 3Q07

9M07 305.7 80.3 2.5 25.0 8.7 422.2 558.4 9M07

122.1 339.1 88.4 249.6 105.4 327.5 30.3 88.0 9.6 31.8 355.8 1,036.0 701.1 2,083.7 144.6 383.7 172.2 488.3 209.4 627.5 95.4 272.1 15.5 44.3 68.2 201.9 705.3 2,017.8

120.7 459.8 91.9 341.5 105.4 432.9 30.7 118.7 8.7 40.5 357.4 1,393.4 542.1 2,625.8 142.4 526.1 180.1 668.4 210.3 837.8 92.6 364.7 15.2 59.5 54.4 256.3 695.0 2,712.8

113.2 353.9 89.9 269.4 115.6 351.1 33.1 95.5 8.2 26.8 360.0 1,096.7 668.8 1,879.9 127.4 406.3 176.8 528.8 240.8 678.5 100.6 292.8 15.7 44.8 61.5 176.6 722.8 2,127.8

17

Results 3Q07 October 30th, 2007 Results 3Q07 October 30th, 2007

Appendix 4 Loan Repayment Schedule 30/09/07

R$ Million Bndes Finame Debentures Others Local Currency Trade Finance Others Fixed Assets Foreign Currency Gross Debt 4Q07 14.2 1.5 329.7 52.4 397.8 46.8 0.0 4.8 51.7 449.5 2007 14.2 1.5 329.7 52.4 397.8 46.8 0.0 4.8 51.7 449.5 2008 37.8 1.4 19.0 58.2 55.2 0.1 15.8 71.1 129.3 2009 126.4 118.0 244.4 33.9 0.9 11.5 46.3 290.7 2010 211.0 25.0 236.0 164.7 0.9 32.1 197.6 433.7 2011 211.0 25.0 236.0 205.1 0.9 50.3 256.3 492.4 2012 195.9 12.5 208.4 319.0 0.9 48.0 367.9 576.3 2013 172.8 1.1 173.9 359.3 0.7 70.9 430.9 604.9
After 2014

Total 1,380.5 2.9 329.7 274.4 1,987.6 1,437.1 4.4 457.8 1,899.3 3,886.8
910

411.3 21.4 432.7 253.0 224.5 477.4 910.2

R$ m illion

Local Currency Foreign Currency Gross Debt

Average Cost Average Tenor 10.8 % p.y. 45 months 6.7 % p.y. 60 months 52 months
576 492 449 52 291 46 398 198 256 434 368

605

477

431

433 129 71 58 244 236 236 208 174

4Q07

2008

2009

2010

2011

2012

2013

After 2014

Local Currency

Foreign Currency

18
T

18

Results 3Q07 October 30th, 2007

Appendix 5 Statement of Consolidated Cash Flow Public Company Legislation (R$ thousand)
3 Quarter 2007 2006 Cash flow from operating activities Net income Items not affecting cash and cash equivalents Depreciation, amortization and depletion Provision for loss on permanent assets Deferred income and social contribution Interest and exchange variation on loans and financing Capitalized interest Equity and subsidiaries Exchange variation on foreign investments Reserve for contingencies Reversal of the reserve Minority interest Decrease (increase) in assets Accounts receivable Inventories Recoverable taxes Prepaid expenses Other receivables Increase (decrease) in liabilities Suppliers Taxes and payable Deferred income and social contribution Salaries, vacation and payroll charges Other payables Net cash provided by operating activities (carry forward) Cash flow from investing activities Purchase of property, plant and equipment Increase in deferred assets Goodwill in the acquisition of controlled company Sale of property, plant and equipment Judicial deposits Others Net cash provided by (used in) investing activities Cash from financing activities New loans and financing Amortization of financing Payment of interest Capital contribution to subsidiaries by minority shareholders Dividends paid Stock repurchase Others Net cash used in financing activities Increase (Decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 177.518 61.557 886 15.947 (22.133) (38.326) 120 2.231 448 3.632 (26.731) (19.212) (93.352) 4.557 (447) (674) (3.702) 39.383 6.815 33.926 142.443 (396.369) (20.154) 3.357 741 (412.425) 475.635 (42.408) (56.904) 2.092 (173.001) 22 205.436 (64.546) 2.196.711 2.132.165 (64.546) 102.378 54.339 2.593 18.737 57.663 (5.427) 131 (62) 6.129 3.200 28.148 5.356 (456) 7.612 (3.660) 62.158 (2.275) (530) 6.616 1.609 344.259 (282.994) (20.869) 109 (13.957) (1) (317.712) 24.102 (72.951) (38.078) 198 (121.113) (24.739) (232.581) (206.034) 2.018.248 1.812.214 (206.034) January to September 2007 2006 549.553 182.495 2.558 49.709 (75.080) (80.332) 161 2.540 3.246 10.578 (61.663) (28.811) (266.655) 2.538 (32.685) 194.866 20.750 113.355 1.854 64.051 645.591 (1.338.924) (56.203) (54.139) 5.194 4.465 (1.439.607) 1.394.830 (233.141) (192.406) 4.162 (283.007) (47.822) (6.616) 636.000 (158.016) 2.290.181 2.132.165 (158.016) 362.816 185.606 (1.743) 73.957 162.261 (9.323) 339 2.447 6.397 (55.510) 11.149 (6.237) (11.780) 21.200 (1.074) 17.919 (5.926) 2.586 (30.330) 15.319 5.120 670.256 (475.792) (29.283) 19.569 (15.725) (3) (461.713) 1.185.411 (648.813) (144.927) 199 (192.383) (24.739) 174.748 383.291 1.428.923 1.812.214 383.291

19