Indstrias Klabin

3rd Quarter 2000

November 20, 2000

1

Business Strategy
Klabin

Market
Pulp

4
4
4

BEKP
Dissolving pulp
Specialty Pulp

Forestry

4
4
4
4

Logs
Chips
By - Products
Solid Wood

Packaging

4
4
4
4
4

Boards
Kraftliner
Corr. Boxes
Sacks
Envelopes

Tissue

4
4

Newsprint

Family Care
Away From Home

Corporate Structure
Indstrias Klabin de Papel e Celulose
100%

Indstrias Klabin
50%

Klabin
Export

Klabin
Papis

Norske
Skog
Klabin

Klabin
Igaras

Klabin
Embalagens

Klabin
Celucat

Klabin
Ponsa

Klabin

Klabin
Madeira

Klabin
Kimberly

50%

KCK
Tissue

40%

Klabin
Riocell

61%

Klabin
Bacell

Argentina
3

Shareholder Structure
09/30/00

Common

Preferred
Brazilian Investors
79.2%

Brazilian
Investors
20.6%

Monteiro
Aranha
20.0%

Klabin Irmos
59.4%

Common Shares
Preferred Shares
Total
Shares

275,689,115
415,088,420
690,777,535

Foreign Investors
20.8%

The Company owns 10,102,783

Preferred Shares that
will be cancelled on 11/24/00
4

Klabin
Planted Forests Supply all the Wood Needs
Company Lands
Planted Forests
Permanent Preserved Native Forests
Others

426,950
254,677
135,111
37,162

hectares
hectares
hectares
hectares

Wood Productivity
(m3/ha/year)
Actual
Pinus
Eucalyptus

Company
Lands
So Paulo

Planted
Forests

9,713 ha

6,445 ha

Paran

229,500 ha

122,702 ha

Santa Catarina

118,321 ha

75,352 ha

49,857 ha
68,464 ha

30,708 ha
44,644 ha

69,416 ha

50,178 ha

426,950 ha

254,677 ha

4 Lages
4 Otaclio Costa

Rio Grande do Sul

Position in 09/30/00

35
50

Klabin - Consolidated Sales

9 Months00
Volume

Pulp
25%

Net Revenue

Newsprint/
Printing
Others
11%
1% Sacks/
Envelopes
8%

Tissue
11%

Corrugated
Boxes
23%
Packaging
21%

Volume
1,017,377 ton + 1.5%

Pulp
19%

Newsprint/
Printing
Others
9%
3% Sacks/
Envelopes
9%

Corrugated
Boixes
19%

Tissue
24%
Packaging
17%

Net Revenue
R$ 1,474 million + 29.4%
6

Klabin - Sales
1,000 ton

1st Q

1999
2nd Q 3rd Q

2000
4th Q

1st Q 2nd Q 3rd Q

Newsprint
Printing
Packaging
Tissue

24
11
65
31

21
11
77
33

21
10
73
32

23
17
75
36

27
11
74
34

26
10
62
37

28
10
81
38

Pulp
Klabin Riocell
Klabin Bacell

92
69
23

93
74
19

95
60
35

97
71
26

72
56
16

92
64
28

87
67
20

Corrugated Boxes
Sacks/Envelopes
Others

72
24
3

75
26
3

81
27
2

79
25
1

72
26
3

76
27
4

89
28
3

322

339

341

353

319

334

364

Sum

Klabin

Average Net Price - R$/ton

ex-tax

1999

2000

1st Q 2nd Q 3rd Q 4th Q

Newsprint
Printing
Packaging
Tissue
Pulp

796
1,023
1,059
2,050

1,019 930
934
1,091 1,152 1,575
991 1,124 1,203
2,085 2,516 3,002
836

1st Q 2nd Q

3rd Q

948
1,475
1,099
3,034

1,005
1,556
1,094
2,967

1,188
1,512
1,174
3,111

937

954

1,114

1,147

747

724

Klabin Riocell
Klabin Bacell

633
1,088

608
1,139

785
879
919 1,088

900
1,141

1,012
1,357

1,086
1,371

Corrugated Boxes
Sacks/Envelopes

878
1,370

947 1,060 1,139

1,422 1,449 1,668

1,133
1,626

1,132
1,611

1,117
1,652

Average

1,057

1,090 1,218 1,399

1,333

1,400

1,447
8

Klabin - Consolidated Sales

9 Months00

Volume

Net Revenue

Exports
34%

Exports
29%
Domestic
66%

Domestic
71%

1,000 ton
Total Sales
4 Domestic
4 Exports
Pulp
Paper

1,017
673
344
237
107

Total Sales
4 Domestic
4 Exports
Pulp
Paper

R$ Million
1,474
1,044
430
266
164
9

Klabin - Consolidated
Statement of Income
R$ Million
1999
1st Q
Volume - 1,000 ton

322.4

2nd Q

3rd Q

338.6

341.0

4th Q
353.4

Gross Revenue
354.1 383.7 440.3 503.3
Net Revenue
314.0 336.8 387.3 443.9
Cost of Products Sold
(192.5) (205.5) (238.9) (249.0)
Gross Profit
121.5 131.3 148.4 194.9
Selling Expenses
(34.4) (35.2) (37.4) (56.6)
G&A
(23.4) (26.4) (28.3) (38.7)
(0.5)
Others (expenses) Income
0.1
1.1
(4.4)
Operating Profit before
63.8
70.8
82.2
95.2
Financial Results
Financial Income
80.2
26.4
28.8
7.3
Financial Expenses
(364.8) (80.1) (154.2)
(0.4)
Operating Income (Loss)
(220.8)
17.1
(43.2) 102.1
Net Income (Loss)

(139.5)

3.7

(27.8)

47.1

1st Q
319.3

2000
2nd Q 3rd Q
333.7

364.4

463.4 489.5 535.2

407.9 433.0 471.7
(226.0) (248.1) (255.1)
181.9 184.9 216.6
(40.9) (47.5) (47.9)
(31.6) (35.5) (41.3)
4.0
(3.3)
(1.0)
106.1
11.4
(35.8)
81.7
37.7

105.9
13.4

126.4
13.6
(90.0) (88.9)
29.3
51.1
1.9

8.9

10

Klabin - Consolidated
Financial Highlights
R$ Million

1998

1999

1st Q

2000
2nd Q

Gross Sales
Net Sales
EBIT
EBITDA
EBITDA Margin
Net Income (Loss)
Total Assets
Total Debt
Short Term
Long Term
Domestic Currency
Foreign Currency
Cash/Short Term Securities
Net Debt
Equity
Minority Interest
Total Capitalization

1,264
1,106
24
181
16.4%
(34)
2,779
1,185
514
671
434
751
168
1,017
1,185
225
2,595

1,681
1,482
312
457
30.8%
(116)
3,189
1,634
412
1,222
589
1,046
280
1,354
1,017
238
2,889

463
408
106
144
35.3%
38
3,192
1,570
380
1,190
576
994
247
1,323
1,006
252
2,828

490
433
106
145
33.5%
2
3,154
1,524
326
1,198
565
959
130
1,394
968
261
2,753

535
472
126
164
34.7%
9
3,927
2,227
734
1,493
896
1,331
848
1,379
974
281
3,482

Net Debt / Total Capitalization

39.2%

46.9%

46.8%

50.6%

39.6%

3rd Q

11

Klabin - Consolidated
EBITDA
R$ Million

180

164.4

160

144.4

144.8

137.9

140
115.2

120

106.2
97.3

100
80

59.5 64.4 58.6

62.2
50.8

52.3

52.9

60
40
13.7

20
0
1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q

97

98

99

00

12

Klabin - Consolidated

Loans - 09/30/00 - Position

R$ Million

Short Term
Foreign Domestic
Currency Currency Sum

Long Term
Foreign Domestic
Currency Currency Sum

Total

55.4
10.6
66.0
0.0
53.3
7.6
43.6
0.3

415.0
0.0
415.0
0.0
0.0
0.0
0.0
0.3

470.4
10.6
481.0
0.0
53.3
7.6
43.6
0.6

465.6
(85.7)
379.9
0.0
0.0
499.8
15.0
0.2

452.8
0.0
452.8
0.6
0.9
0.0
0.0
2.9

918.4
(85.7)
832.7
0.6
0.9
499.8
15.0
3.1

1,388.8
(75.1)
1,313.7
0.6
54.2
507.4
58.6
3.7

Total 1

170.8

415.3

586.1

894.9

457.2 1,352.1

1,938.2

Klabin Kimberly
KCK Tissue
Klabin Riocell
Norske Skog Klabin

0.6
8.7
117.8
11.7

6.0
0.0
2.6
0.0

6.6
8.7
120.4
11.7

0.3
15.9
92.5
17.5

Total

309.6

423.9

733.5

1,021.1

Indstrias Klabin
Mirca
Ind, Klabin / Mirca
IKPC/Outras
Klabin Bacell
Klabin Export
Klabin Argentina
Klabin Ponsa

12.8
0.0
2.1
0.0

13.1
15.9
94.6
17.5

19.7
24.6
215.0
29.2

472.1 1,493.2

2,226.7
13

Klabin - Consolidated
Domestic Currency
09/30/00 - Position
R$ Million

Short Term

Long Term

BNDES Debentures Others Sum

Indstrias Klabin

71.6

10.7

IKPC/Outras

0.0

0.0

0.0

Klabin Bacell

0.0

0.0

Klabin Export

0.0

Klabin Argentina
Klabin Ponsa

Total

301.6

149.4

1.8

452.8

867.7

0.0

0.0

0.6

0.0

0.6

0.6

0.0

0.0

0.0

0.0

0.9

0.9

0.9

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.1

0.0

0.2

0.3

0.2

0.0

2.7

2.9

3.2

71.7

10.7

332.8 415.2

301.8

150.0

5.4

457.2

872.4

Klabin Kimberly

4.3

0.0

1.7

6.0

8.0

0.0

4.8

12.8

18.8

KCK Tissue

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Klabin Riocell

2.4

0.0

0.3

2.7

1.8

0.0

0.3

2.1

4.8

78.4

10.7

334.8 423.9

311.6

150.0

10.5

472.1

896.0

Total 1

Total

332.6 414.9

BNDES Debentures Others Sum

14

Klabin - Consolidated
Foreign Currency
09/30/00 - Position
US$ Million
Short Term
Trade
Finance
Indstrias Klabin
Mirca/Outras
Ind. Klabin / Mirca
Klabin Bacell
Klabin Export
Klabin Argentina
Klabin Ponsa

14.3
0.0
14.3

Bonds

Long Term

Others Sum

Trade
Finance

Bonds

Others Sum

Total

29.0
4.1
0.0
0.0

4.8
(2.0)
2.8
0.0
0.0
0.0
0.0

11.1
7.8
18.9
0.0
0.0
23.7
0.0

30.2
5.8
36.0
29.0
4.1
23.7
0.0

30.0
0.0
30.0
0.0
271.1
0.0
0.0

189.0
(94.2)
94.8
0.0
0.0
0.0
0.0

33.6
47.7
81.3
0.0
0.0
8.2
0.1

252.6
(46.5)
206.1
7.0
271.1
8.2
0.1

282.8
(40.7)
242.1
29.0
275.2
31.9
0.1

Total 1

47.4

2.8

42.6

92.8

301.1

94.8

89.6

485.5

578.3

Klabin Kimberly
KCK Tissue
Klabin Riocell
Norske Skog Klabin

0.0
0.0
56.0
0.0

0.0
0.0
7.8
0.0

0.3
4.7
0.1
6.3

0.3
4.7
63.9
6.3

0.0
0.0
0.0
0.0

0.0
0.0
50.0
0.0

0.2
8.6
0.2
9.5

0.2
8.6
50.2
9.5

0.5
13.3
114.1
15.8

103.4

10.6

54.0

168.0

301.1

144.8

108.1

554.0

722.0

Total

15

Klabin - Consolidated
Maturity Schedule
09/30/00 - Position
R$ Million

600
550
500
450
400
350
300

583.2
503.2

487.5

250
200
150

182.7

100

201.2

147.3

87.4

50

34.2

0
4th Q 2000

1st Half
2001

2nd Half
2001

2002

2003

2004

2005

2006
onwards
16

Klabin - Consolidated
Investments
R$ Million

Indstrias Klabin
- Klabin Paran Papis
- Klabin Embalagens
- Klabin Celucat
Klabin Kimberly
- Investments
- Acquisition Lalekla
- Acquisition Bacraft
Klabin Bacell
Klabin Ponsa
Klabin Riocell
KCK Tissue
Total

1998

1999

9 Months00

2000
Forecast

84.3
23.4
7.2

93.4
11.3
9.1

65.0
8.8
39.7

103.6
14.9
51.6

114.9

113.7

113.5

170.1

10.8
-

4.6
21.5
5.9

10.6
43.2
4.6

52.3
7.1
8.0

10.8

32.0

58.4

67.4

3.7
0.5
8.2
-

4.1
1.0
4.1
10.2

8.6
1.0
7.4
6.1

12.0
3.5
20.5
12.0

12.4

19.4

23.1

48.0

138.1

165.1

195.0

285.5

17

Klabin - Consolidated
R$ Million

2000

1999
1st Q 2nd Q 3rd Q 4th Q Total

1st Q 2nd Q 3rd Q

Total

26.0

26.7

27.4

29.0

30.6

28.7

88.3

Depletion

3.6

3.7

3.6

4.7

15.6

4.9

4.3

5.2

14.4

Amortization

5.3

5.4

4.3

4.5

19.5

4.3

4.1

4.0

12.5

34.9

35.8

35.3

38.4 144.4

38.2

39.0

37.9

115.1

Depreciation

29.2 109.3

18

Klabin
Installed Capacity
1,000 ton/year

Klabin Paran Papis

Pulp
630

275

Klabin Embalagens
Klabin Celucat

Paper
610

170

Corrugated Sacks &

Boxes Envelopes Tissue
410

125

105

Klabin Argentina

20

Klabin Kimberly

172

172

KCK Argentina

18

10

Klabin Riocell

300

Klabin Bacell

115

Klabin Igaras

436
Total

Position: 09/30/00

1,651

40
490

270

1,730

680

125

182
19

20

Klabin - Consolidated 100%

Statement of Income
R$ Million

2000

1999
1st Q

2nd Q

3rd Q

4th Q

322.4

338.6

341.0

353.4

319.3

333.7

364.4

Gross Revenue
Net Revenue
Cost of Products Sold
Gross Profit
Selling Expenses
G&A
Others Expenses
Operating Profit before
Financial Results

393.0
346.9
(212.7)
134.2
(41.9)

432.2
378.2
(235.8)
142.4

476.2
414.2
(251.5)
162.7

(26.1)
0.2

(41.9)
(28.3)
1.2

(44.7)
(31.0)

520.1
453.5
(253.1)
200.4
(50.9)
(34.8)

(0.2)

560.7
491.4
(278.0)
213.4
(65.9)
(42.0)
(4.4)

(3.3)

555.5
487.7
(281.7)
206.0
(58.6)
(39.2)
1.7

607.0
533.3
(292.2)
241.1
(59.7)
(44.7)
(3.4)

66.4

73.4

86.8

101.1

111.4

109.9

133.3

Financial Income
Financial Expenses
Operating Income (Loss)
Minority Interest
Net Income (Loss)

67.3
(383.4)
(249.7)
(64.7)
(139.4)

22.5
(86.2)
9.7
(5.6)
3.6

29.7
(155.2)
(38.7)
(10.4)
(27.8)

8.2
(2.4)
106.9
23.3
47.1

12.2
(38.0)
85.6
16.3
37.7

14.3
(93.6)
30.6
9.8
1.9

15.4
(94.9)
53.8
23.6
8.8

Volume - 1,000 ton

1st Q

2nd Q

3rd Q

21

Klabin - Consolidated 100%

Financial Highlights
R$ Million

Gross Sales
Net Sales
EBIT
EBITDA
EBITDA Margin
Net Income (Loss)
Total Assets
Total Debt
Short Term
Long Term
Domestic Currency
Foreign Currency
Cash / Short Term Securities
Net Debt
Equity
Minority Interest
Total Capitalization
Net Debt / Total Capitalization

1998

1999

1st Q

1,387
1,212
36
208
17.2%
(34)
3,051
1,284
541
743
483
801
198
1,086
1,185
382
2,851
38.1%

1,862
1,631
328
487
29.9%
(116)
3,416
1,683
427
1,256
613
1,070
299
1,384
1,017
387
3,087
44.8%

520
454
111
152
33.5%
38
3,438
1,648
405
1,243
596
1,052
274
1,374
1,006
421
3,075
44.7%

2000
2nd Q
556
488
110
152
31.1%
2
3,418
1,602
353
1,249
585
1,017
159
1,443
968
441
3,011
47.9%

3rd Q
607
533
133
174
32.6%
9
4,193
2,300
760
1,540
915
1,385
858
1,442
974
465
3,739
38.6%
22

Klabin - Consolidated 100%

EBITDA
R$ Million

174.2

180
142.5

160

152.4 151.7

124.4

140
106.0

120

114.0

100
65.0

80

57.1

56.9

60
29.6

40
20
0
1st Q

2nd Q 3rd Q

98

4th Q

1st Q

2nd Q 3rd Q

99

4th Q

1st Q

2nd Q 3rd Q

00

23

Klabin - Consolidated 100%

Loans - 09/30/00 - Position
R$ Million

Short Term
Foreign
Currency

Long Term

Domestic
Currency Sum

Foreign Domestic
Currency Currency Sum

Total

Indstrias Klabin
Mirca

55.4
10.6

415.0
0.0

470.4
10.6

465.6
(85.7)

452.8
0.0

918.4
(85.7)

1,388.8
(75.1)

Ind. Klabin / Mirca

66.0

415.0

481.0

379.9

452.8

832.7

1,313.7

IKPC
Klabin Bacell
Klabin Export
KlabinArgentina
Klabin Ponsa

0.0
53.3
7.6
43.6
0.3

0.0
0.0
0.0
0.0
0.3

0.0
0.0
499.8
15.0
0.2

0.6
0.9
0.0
0.0
2.9

0.6
0.9
499.8
15.0
3.1

0.6
54.2
507.4
58.6
3.7

Total 1

170.8

415.3

586.1

894.9

457.2

1,352.1

1,938.2

Klabin Kimberly
KCK Tissue
Klabin Riocell
Norske Skog Klabin

1.2
17.4
117.8
23.4

12.0
0.0
2.6
0.0

13.2
17.4
120.4
23.4

0.6
31.8
92.5
35.0

25.6
0.0
2.1
0.0

26.2
31.8
94.6
35.0

39.4
49.2
215.0
58.4

Total

330.6

429.9

760.5

1054.8

484.9

1,539.7

2,300.2

0.0
53.3
7.6
43.6
0.6

24

Klabin - Consolidated 100%

Domestic Currency
09/30/00 - Position
R$ Million

Short Term

Long Term

BNDES Debentures Others Sum

BNDES Debentures Others Sum

Indstrias Klabin 71.6

Total

10.7

332.6

414.9

301.6

149.4

1.8

452.8

867.7

IKPC/Outras
Klabin Bacell

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.6
0.0

0.0
0.9

0.6
0.9

0.6
0.9

Klabin Export

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Klabin Argentina

0.0
0.1

0.0
0.0

0.0
0.2

0.0
0.3

0.0
0.2

0.0
0.0

0.0
2.7

0.0
2.9

0.0
3.2

71.7

10.7

332.8

415.2

301.8

150.0

5.4

457.2

872.4

Klabin Kimberly

8.7

0.0

3.3

12.0

16.0

0.0

9.6

25.6

37.6

KCK Tissue

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Klabin Riocell

2.4

0.0

0.3

2.7

1.8

0.0

0.3

2.1

4.8

82.8

10.7

336.4

429.9

319.6

150.0

15.3

484.9

914.8

Klabin Ponsa
Total 1

Total

25

Klabin - Consolidated 100%

Foreign Currency
09/30/00 - Position
US$ Million
Short Term
Trade
Finance

Long Term

Bonds Others Sum

Trade
Finance

Bonds

Others Sum

Total

14.3
0.0
14.3
29.0
4.1
0.0

4.8
(2.0)
2.8
0.0
0.0
0.0

11.2
7.8
19.0
0.0
0.0
23.7

30.3
5.8
36.1
29.0
4.1
23.7

30.0
0.0
30.0
0.0
271.1
0.0

189.0
(94.2)
94.8
0.0
0.0
0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.1

0.1

0.1

Total 1

47.4

2.8

42.7

92.9

301.1

94.8

89.5

485.4

578.3

Klabin Kimberly
KCK Tissue
Klabin Riocell
Norske Skog Klabin

0.0
0.0
56.0
0.0

0.0
0.0
7.8
0.0

0.6
9.4
0.1
12.6

0.6
9.4
63.9
12.6

0.0
0.0
0.0
0.0

0.0
0.0
50.0
0.0

0.4
17.3
0.2
19.0

0.4
17.3
50.2
19.0

1.0
26.7
114.1
31.6

103.4

10.6

65.4

179.4

301.1

144.8

126.4

572.3

751.7

Indstrias Klabin
Mirca/Outras
Ind. Klabin / Mirca
Klabin Bacell
Klabin Export
Klabin Argentina
Klabin Ponsa

Total

33.5 252.5
47.7 (46.5)
81.2 206.0
0.0
0.0
0.0 271.1
8.2
8.2

282.8
(40.7)
242.1
29.0
275.2
31.9

26

Klabin - Consolidated 100%

Maturity Schedule
09/30/00 - Position
R$ Million

600
550
500
450
400
350
300

586.8
514.3

506.5

250
200
150

193.7

100

215.6

156.5
89.6

50

37.2

0
4th Q 2000

1st Half
2001

2nd Half
2001

2002

2003

2004

2005

2006
onwards
27

Klabin - Consolidated 100%

R$ Million

1999

2000

1st Q 2nd Q 3rd Q 4th Q

Total

1st Q

2nd Q

3rd Q

30.0

30.7

29.7

31.8

122.2

31.6

33.2

31.3

96.1

Depletion

3.6

3.7

3.6

4.7

15.6

4.9

4.3

5.2

14.4

Amortization

6.0

6.2

4.5

4.7

21.4

4.6

4.4

4.3

13.2

39.6

40.6

37.8

41.2

159.2

41.1

41.9

40.8

123.7

Depreciation

Total

28

Additional Information
Investor Relations Departament
Tel.: (11) 3225-4045
Fax.: (11) 3225-4241
marciano@klabin.com.br
www.klabin.com.br

29