Fourth Quarter Results of 2005

4Q05 Results February 14th , 2006

www.klabin.com.br

December 29th , 2005

Carton boards exports reached a record in 2005

Sales volumes of paper and packaging reached a total of 1,377 thousand tons, 3% above 2004. The sales volume of carton boards posted a record in 2005, with a total of 330 thousand tons, 9% above 2004, and exports totaling 95 thousand tons, 27% over the previous year. Supplementary dividends to be paid in April, 2006: R$ 72.89 per thousand common shares and R$ 80.18 per thousand preferred shares. Dividends for the fiscal year 2005 come to R$ 172 million, equivalent to 58,5% of adjusted net profit.

KLBN4 (BOVESPA) / KLBAY (OTC) Total Shares PN (000) Local Price Share PN Book Value Free Float Daily Trade Volume 600,856 R$ 4.15 R$ 2.46 80% R$ 5,016 mil

Highligts of the Quarter Sales volume totaled 366 thousand tons, with net revenue of R$ 663 million. Net revenue in the domestic market was R$ 488 million. Export volume was 160 thousand tons, 24% up over the same period in 2004. Net revenue from Exports was USD 77 million, representing 26% of the total net revenue. Cash Generation (EBITDA) was R$ 115 million.
1

4Q05 Results February 14th , 2006

Initial Considerations
Operational and financial information of the Company referring to 4Q05, 4Q04, 2005 and 2004, except where otherwise indicated, is all presented in the form of consolidated numbers and in Reais, in accordance with Brazilian accounting practice.

Financial Highlights
R$ million Gross Revenue Net Revenue Domestic Market Exports % Exports Gross Profit Gross Margin Selling expenses General and administrative expenses Other operating (expenses) income, net EBIT EBIT Margin Depreciation, amortization and depletion EBITDA EBITDA Margin Net Income Net Debt Net Debt/EBTIDA (annualized) Capex Production Volume - 1,000 t ( * ) Sales Volume - 1,000 t Domestic Market Exports % Exports 4Q05 795.0 662.7 488.4 174.3 26% 185.5 28% (76.7) (42.2) (14.5) 52.1 8% 63.1 115.2 17% 26.1 318.8 0.4 70.7 362.0 366.4 206.7 159.7 44% 4Q04 827.5 702.2 504.7 197.5 28% 315.1 45% (66.6) (48.5) (10.6) 189.4 27% 59.1 248.5 35% 89.2 498.2 0.5 91.4 385.2 325.4 196.8 128.6 40% 2005 3,235.9 2,706.3 1,977.9 728.4 27% 1,025.5 38% (308.8) (163.3) (44.0) 509.4 19% 245.1 754.5 28% 309.1 318.8 0.4 365.9 1,492.1 1,377.1 809.8 567.3 41% 2004 3,201.8 2,729.5 1,914.3 815.2 30% 1,256.2 46% (291.2) (152.9) (53.4) 758.7 28% 231.8 990.5 36% 455.6 498.2 0.5 337.4 1,467.4 1,343.3 788.7 554.6 41% QoQ (4%) (6%) (3%) (12%) (41%) 15% (13%) 37% (72%) 7% (54%) (71%) (36%) (23%) (6%) 13% 5% 24% YoY 1% (1%) 3% (11%) (18%) 6% 7% (18%) (33%) 6% (24%) (32%) (36%) 8% 2% 3% 3% 2%

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

Operating, Economic and Financial Performance

Production Volume
Thousand tons

1,492

1,467

362

385

Production of paper and carton boards in the 4Q05 was affected by the downtime in the Angatuba mill (SP), to conclude the expansion project of carton boards.

4Q05

4Q04

2005

2004

4Q05 Results February 14th , 2006

Sales Volume
Sales volume in 4Q05, excluding wood, reached 366.4 thousand tons, with special mention to export sales. Export volume totaled 159.7 thousand tons, with a 44% share of the total (40% in 4Q04). Exports of carton boards remained strong in 4Q05, representing 12% of total exports. In 2005, the carton boards share in total sales volume grew to 24% (22% in 2004).
Volume by Market
Thousand tons
Industrial bags 8% Others 3%

Volume by Product 4Q05

1,377

1,343

41%

41%

Kraftliner 38%

366 44% 56% 4Q05

325 40% 60% 4Q04

59%

59%
Corrugated boxes 29%

2005

2004
Carton boards 22%

Exports Domestic Market

Wood not included

Net Revenue
In spite of the incipient recovery in the international prices of kraftliner in 4Q05, net revenue from exports was affected by the Reals strengthening against the dollar.
Net Revenue by Market
R$ million
2,706 2,730
Others 2%

Net Revenue by Product 4Q05

Wood 10% Kraftliner 19%

27%

30%
Industrial bags 13%

663

702

73%

70%

26% 74%
4Q05 Exports

28% 72%
4Q04 2005 2004
Corrugated boxes 32% Carton boards 24%

Domestic Market

Wood included

4Q05 Results February 14th , 2006

Exports Destination
By Volume
North America 1% Africa 6% Asia 10% Latin America (excluding Argentina) 12%

By Net Revenue
Africa 4% North America 4% Latin America (excluding Argentina) 14%

Asia 8%

Argentina 25%

Argentina 30%
Europe 46%

Europe 40%

2005: 567.3 thousand tons Operating Results

2005: USD 299.6 million

Gross profit in 4Q05 was R$ 185.5 million, totaling R$ 1,025.5 million in 2005, 18% below 2004. The decline in gross profit was due to the gain of the Real against the dollar, and the drop in the international kraftliner prices, Klabins main export product. Gross margin in 2005 was 38%, compared to 46% in 2004. Cost of products sold in 4Q05 was R$ 477.2 million, 23% more than 4Q04, and in 2005 total cost was R$ 1,680.8 million, 14% higher than in 2004, affected by the rise in cost of raw materials, especially fuel, chemicals and labor. Selling expenses in 4Q05 were R$ 76.7 million, and in the year of 2005 were R$ 308.8 million, 6% over 2004, R$ 199.1 million of which were related to freight. General and administrative expenses in 4Q05 were R$ 42.2 million, totaling R$ 163.3 million in 2005, an increase of 7% in relation to 2004, mainly influenced by the agreement with the unions. At the end of 2005, Klabin launched a result-oriented improvement program. As a part of this program, there was a voluntary dismissal program which was adhered to by 490 people, at a one-time cost of R$ 23.4 million. Operating results before financial expenses (EBIT) in 4Q05 was R$ 52.1 million, coming to a total of R$ 509.4 million, a drop of 33% compared to 2004.

Operating Cash Generation (EBITDA)

Operating cash generation (EBITDA) in 4Q05 was R$ 115.2 million, and accumulated R$ 754.5 million in 2005 (24% below 2004), with an EBITDA margin of 28%, due to the 11.8% gain of the Real against the dollar and the low international prices of kraftliner, which had a negative effect on exports revenue.

4Q05 Results February 14th , 2006

Financial Results and Indebtedness

Net financial expenses totaled R$ 25.7 million in 4Q05, accumulating to R$ 153.7 million in 2005, 2% below 2004 (R$ 156.2 million). At the end of 2005, gross debt totaled R$ 1,787.2 million Net debt is equivalent to 12% of total capitalization and 42% of EBITDA. Indebtedness
R$ million
Local Short Term Long Term GROSS DEBT Cash and Short Term Investments NET DEBT 101.4 894.5 995.9

31/12/2005
Currency Foreign 511.0 280.3 791.3 Total 612.4 1,174.8 1,787.2 (1,468.4) 318.8 Local 142.5 800.7 943.2

31/12/2004
Currency Foreign 262.5 417.3 679.8 Total 405.0 1,218.0 1,623.0 (1,124.8) 498.2

Net Profit
Net profit in 4Q05 were R$ 26.1 million, totaling R$ 309.1 million in 2005, 32% lower than 2004.

4Q05 Results February 14th , 2006

Business Performance
BUSINESS UNIT - FORESTRY In 4Q05, Klabin sold 1.9 million tons of Pine and Eucalyptus logs, 1.2 million tons of which were transferred to its own mills in Paran, Santa Catarina and So Paulo. The volume of wood sold to sawmills and laminating operations in Paran and Santa Catarina totaled 683.4 thousand tons in 4Q05. Net revenue from wood sales to third parties in 4Q05 reached R$ 64.1 million, representing a reduction of 14% in relation to 4Q04. Klabin harvested 8.0 million tons of Pine e Eucalyptus logs, chips and biomass for fuel in 2005, 5.1 million tons of these were inter-company transfers to its paper mills in Paran, Santa Catarina and So Paulo. A total of 2.9 million tons of wood was sold to sawmills and laminating operations in Paran and Santa Catarina in 2005, 11% below the previous year. Net revenue from wood sales to third parties was R$ 286.7 million, 5% below the year before. United States civil construction remained strong throughout the year and the housing starts index rose above 2 million new houses (compared to a historical average of 1.6 million). On the other hand, the strengthening of the Real against the dollar negatively affected the export prices of Klabin customers. Klabins forests in Paran and Santa Catarina have been certified by the Forest Stewardship Council - FSC, testifying to the fact that the companys forests are managed with social, economic and environmental responsibility. At the end of 2005, Klabin owned 355,000 hectares of forestry, 190,000 hectares of which are planted forests and 128,000 hectares are preserved native forests. 16,400 hectares were planted on company and leased land in 2005, and approximately 15,000 hectares were harvested to supply its own industrial operations and sell wood to third parties. In 2005, 5,865 hectares were planted with the incentive program in areas neighboring Klabins forestry operations in Paran and Santa Catarina and 1,230 local farm-owners were benefited. Since Klabins incentive program began in Santa Catarina in 1984 and in 1987 in Paran, 56,467 hectares have been planted. Today, there are some 11,000 farmers planting with incentives in these states. With Klabins forestry incentive program, the companys goal is to increase the amount of wood supplied by participants from 8% to 20% by the year 2012.

4Q05 Results February 14th , 2006

BUSINESS UNIT - PAPER The sales volume of paper and board to third parties was 221.2 thousand tons in 4Q05, an increase of 20% over 4Q04. In 2005 the total was 801.4 thousand tons, 2% over 2004. Exports accounted for 65% of the total and were up 2% over 2004. In 2005, the exports totaled 521.1 thousand tons, 2% over 2004. Net revenue from paper and boards in 4Q05 reached R$ 285.3 million, a drop of 5% in comparison with 4Q04, totaling R$ 1,153.6 million in 2005, and 4% less than 2004. Exports accounted for 54% of the total. Kraftliner sales were 139.6 thousand tons in 4Q05, of which 127.5 thousand tons were for the export market. During the year, total sales volume was 471.9 thousand tons, 2% below 2004. Exports of kraftliner in 2005 reached 426.1 thousand tons, with net revenue of R$ 443.5 million, 2% and 17% below 2004, respectively. Total kraftliner net revenue in 2005 was R$ 503.6 million, 15% below 2004. These results were negatively affected by the strengthening of the Real against the dollar and the drop in the international price of kraftliner, which began to recover as of 4Q05. For 2006, besides the domestic market, export strategy for kraftliner is looking to increase market share in Latin American markets, with special emphasis on Argentina that has been showing expressive economic growth. Sales volume of carton boards added up 81.6 thousand tons in 4Q05 or 14% greater than 4Q04. In 2005 the total was 329.5 thousand tons, 9% over 2004. The net revenue of carton boards in 4Q05 was R$ 156.6 million or 4% superior to 4Q04. In 2005 the total net revenue was R$ 650.0 million or 7% higher than 2004. Exports of carton boards in 4Q05 were 19.5 thousand tons, 11% more than 4Q04, totaling 95.0 thousand tons in 2005, 27% higher than 2004. In 2005 net revenue from exports reached R$ 181.9 million, 12% over 2004. BUSINESS UNIT CORRUGATED BOXES Preliminary data provided by the Brazilian Association of Corrugated Boxes Manufactures - ABPO indicated that the shipment of corrugated boxes, sheets and accessories amounted to 549.5 thousand tons in 4Q05 or 3.1% more than 4Q04. In 2005, total shipments were 2,156.4 thousand tons, 2.4% above 2004. Almost the same of 2002 (2,144.1 thousand tons). In 4Q05, the volume of corrugated boxes and sheets shipped by Klabin was 106.1 thousand tons, unchanged in relation to 4T04. In 2005, a total of 419.5 thousand tons were shipped, 2% above 2004, thus maintaining its position as leader in the sector with a market share of 20%. Net revenue totaled R$ 210.2 million in 4Q05, a decline of 4% in comparison with 4Q04. In 2005, net revenue totaled R$ 843.3 million, 5% over 2004.

4Q05 Results February 14th , 2006

BUSINESS UNIT INDUSTRIAL BAGS Sales volume of industrial bags in 4Q05 totaled 28.5 thousand tons, 1% below to the same period of 2004, with net revenue of R$ 85.4 million, 5% below 4Q04. In 2005, sales volume was 115.0 thousand tons, with net revenue of R$ 349.6 million. Klabin is the leader in the Brazilian multi-wall bags market, with a 45% market share. Klabin Argentina with sales volume of 23.7 thousand tons and net revenue of R$ 55.1 million boasts a market share of 45% in multi-wall bags.

Capital Expenditures
The chart below shows the investments made during the quarter and the accumulated figures for the year:
R$ Million Forestry Paper mills Converting Others Total 4Q05 16.9 20.9 32.0 0.9 70.7 2005 63.0 209.1 91.0 2.8 365.9

Capital Markets
In the 4Q05, Klabin preferred shares were negotiated on all the trading sessions of the So Paulo Stock Exchange (BOVESPA), totaling 12,943 transactions. There were 73 million Klabin shares being negotiated in the 4Q05. The average of daily traded volume was R$ 5.0 million. In 2005, Klabins preferred shares (KLBN4) devaluated 23.2%, while the So Paulo Stock Exchange Index (IBOVESPA) rose 27.7%. The Company shares were negotiated on all trading sessions of the So Paulo Stock Exchange (BOVESPA), totaling 55.700 transactions involving 253 million shares, and a daily traded volume of R$ 4.4 million. The capital stock of Klabin consists of 917.7 million shares, including 316.8 million common shares and 600.9 million preferred shares.

4Q05 Results February 14th , 2006

DIVIDENDS In October 2005, a total of R$ 100.5 million in dividends was paid in advance, being R$ 102.79 per thousand common shares and R$ 113.07 per thousand preferred shares. At the Annual General Meeting to be held in March, the Company Management will propose the distribution of R$ 71.3 million in supplementary dividends, being R$ 72.89 per thousand common shares and R$ 80.18 per thousand preferred shares. Thus, dividends relative to the year of 2005 will total R$ 171.8 million, equivalent to 58,5% of adjusted net profit.

Outlook
The steady recovery of international kraftliner prices, the growth in sales volume of liquid packaging boards and other grades of boards for European customers, and the improvement in sales of industrial bags and corrugated boxes will all contribute to an improved performance by the company in 2006. Klabin continues to strive for cost reduction and quality improvement in all of its plants. To increase competitiveness, a wide-ranging program has been launched to control costs in production, administration, logistics and finances. This will enable Klabin to add value in a sustainable way for both its shareholders and its investors. In January 2006, the Board of Directors approved the MA 1100 Project, thereby authorizing the Executive Directors to conclude negotiations to initiate the project, based on already established targets. This investment covers the increase of installed capacity in the Monte Alegre (PR) mill from the current 700 thousand tons per year to 1.1 million tons per year. Of this total 680 thousand tons will be carton boards and 420 thousand tons will be kraftliner, thus, board production will grow 106% from todays 330 thousand tons to 680 thousand tons. The budget for this expansion is R$ 1.5 billion, with disbursements scheduled in 2006, 2007 and partially in 2008. Of this total, 40% will be self-financed and 60% funded by loans, especially from the BNDES and international development agencies. With the start up of the expansion project, Klabin will increase its installed capacity of packaging paper and carton boards by 25% from 1.6 million tons/year to 2.0 million tons/year and carton board capacity will grow from todays 390 thousand tons to 740 thousand tons.

4Q05 Results February 14th , 2006

Conference Call
Wednesday, February 15th, 2006 10:00 a.m. (N.Y.) / 13:00 p.m. (Braslia) Password: 219 Phone: U.S. participants: 1-888-340-8477 International participants: 1-786-924-8430 Brazilian participants: (11) 4613-0509

Webcast
Audio of the Conference Call will also be transmitted via internet. Access: http://www.collaborate.com.br/klabin

For further information contact:

Ronald Seckelmann, Director of Finance and IR Luiz Marciano Candalaft IR manager marciano@klabin.com.br Tel: (55-11) 3225-4045

With a gross revenue of R$ 3.2 billion in 2005, Klabin is the largest integrated paper manufacturer in Brazil with a production capacity of 1.6 million tons/year of product. The Companys decision has been to focus its strategy on the following core businesses: wood, paper and carton boards for packaging, corrugated boxes, industrial bags and. The company is market leader in every segment it operates.
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 industry and, not least, in international markets.

10

Attachment 1 Consolidated Income Statement Brazilian Corporate Law (Thousand of R$)

R$ million
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 Net Foreign Exchange Losses Financial Revenues Net Financial Expenses Operating Income Non Operating Revenues (Expenses) Net Income before Taxes Income Tax and Soc. Contrib. Minority Interest Net Income Depreciation Amortization EBITDA

4Q05
795,012 662,749
(477,218) 185,531 (76,662) (42,247) (14,501)

4Q04
827,462 702,195
(387,073) 315,122 (66,630) (48,530) (10,564)

2005
3,235,881
2,706,308 (1,680,834) 1,025,474 (308,794) (163,279) (43,944) (516,017) 509,457 (151) (262,246) (87,764) 196,319 (153,691) 355,615 (2,551) 353,064 (18,126) (25,830) 309,108 204,331 40,739 754,527

2004
3,201,671
2,729,459 (1,473,250) 1,256,209 (291,163) (152,908) (53,539) (497,610) 758,599 (288) (190,125) (73,874) 107,815 (156,184) 602,127 (7,642) 594,485 (109,716) (29,225) 455,544 190,259 41,559 990,417

4Q05
100.0%
72.0% 28.0% 11.6% 6.4% 2.2% 20.1% 7.9% 0.0% 7.1% 4.5% 7.7% 3.9% 4.0% 0.1% 3.9% -0.8% 0.8% 3.9% 8.0% 1.5%

% of Net Revenue 4Q04 2005

100.0%
55.1% 44.9% 9.5% 6.9% 1.5% 17.9% 27.0% 0.0% 8.1% 2.3% 4.0% 6.5% 20.5% 1.3% 19.2% 4.0% 2.5% 12.7% 6.9% 1.5%

2004
100.0%
54.0% 46.0% 10.7% 5.6% 2.0% 18.2% 27.8% 0.0% 7.0% 2.7% 4.0% 5.7% 22.1% 0.3% 21.8% 4.0% 1.1% 16.7% 7.0% 1.5%

100.0%
62.1% 37.9% 11.4% 6.0% 1.6% 19.1% 18.8% 0.0% 9.7% 3.2% 7.3% 5.7% 13.1% 0.1% 13.0% 0.7% 1.0% 11.4% 7.6% 1.5%

(133,410) 52,121 (32)

(47,272) (29,514) 51,070

(125,724) 189,398 (44)

(57,158) (15,975) 27,797

(25,716) 26,373
(648)

(45,336) 144,018
(8,847)

25,725
5,534 (5,163)

135,171
(28,077) (17,882)

26,096
53,097 10,022 115,240

89,212
48,601 10,458 248,457

17.4%

35.4%

27.9%

36.3%

11

Attachment 2 Consolidated Balance Sheet Brazilian Corporate Law (Thousand of R$)

Assets
Current Assets Cash and banks Short-term investments Receivables Inventories Recoverble taxes and contributions Other receivables 31/12/2005 2,227,325 102,387 1,366,057 347,799 256,797 91,842 62,443 31/12/2004 2,032,678 20,561 1,104,202 487,933 269,761 109,674 40,547

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 Debentures Other accounts payable Minority Interests StockholdersEquity Capital Capital reserves Revaluation reserve Profit reserve Treasury stock Total

31/12/2005 31/12/2004 1,010,522 603,164 9,270 176,194 32,007 24,116 51,493 71,270 43,008 1,343,138 860,735 314,050 168,353 97,300 2,244,662 1,100,000 84,525 87,399 972,738 4,695,622 837,895 396,103 8,887 136,894 73,363 24,061 60,715 90,007 47,865 1,363,382 903,880 314,050 145,452 59,364 2,107,511 800,000 193,845 89,521 1,028,010 (3,865) 4,368,152

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

383,896 208,032 30,099 101,800 43,965

365,579 179,428 20,994 90,803 74,354

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

2,084,401 9,915 2,049,509 24,977 4,695,622

1,969,895 10,036 1,899,980 59,879 4,368,152

12

Attachment 3 Domestic Market

1Q04 Volume (1,000 t) Kraftliner Coated Boards Corrugated Boxes Bags Others Total Wood Volume (1,000 t) Net Revenue (R$ million) Kraftliner Coated Boards Corrugated Boxes Bags Others Wood Total 12.7 97.0 174.2 60.2 13.4 61.3 418.8 13.7 108.8 185.2 65.0 13.0 71.3 457.0 17.9 128.3 210.6 70.9 11.6 94.5 533.8 16.6 113.3 216.1 70.1 14.1 74.5 504.7 60.9 447.4 786.1 266.2 52.1 301.6 1,914.3 17.9 110.7 195.6 72.9 11.9 81.0 490.0 13.6 113.5 222.7 69.7 16.1 76.3 511.9 13.5 121.8 207.5 67.0 12.5 65.3 487.6 15.1 122.1 209.4 66.4 11.3 64.1 488.4 60.1 468.1 835.2 276.0 51.8 286.7 1,977.9 10.9 50.9 91.3 21.1 6.0 180.2 758.6 11.9 58.7 99.0 21.2 4.5 195.3 823.8 13.5 63.6 109.9 23.1 6.3 216.4 957.8 12.2 53.8 104.9 21.5 4.4 196.8 732.0 48.5 227.0 405.1 86.9 21.2 788.7 3,272.2 13.3 53.9 97.9 22.2 8.2 195.5 778.8 10.3 56.6 112.2 21.5 7.3 207.9 769.7 10.1 61.9 100.0 20.8 6.9 199.7 689.6 12.1 62.1 105.7 20.2 6.6 206.7 683.4 45.8 234.5 415.8 84.7 29.0 809.8 2,921.5 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05 4Q05 2005

13

Attachment 4 Exports
1Q04 Volume (1,000 t) Kraftliner Coated Boards Corrugated Boxes Bags Others Total Wood Volume (1,000 t) Net Revenue (R$ million) Kraftliner Coated Boards Corrugated Boxes Bags Others Wood Total 140.2 44.2 3.5 20.6 2.9 0.0 211.4 125.5 41.6 8.5 22.2 4.7 0.0 202.5 133.1 39.1 5.0 21.9 4.7 0.0 203.8 133.8 37.4 3.7 19.9 2.7 0.0 197.5 532.6 162.3 20.7 84.6 15.0 0.0 815.2 118.1 38.8 2.1 19.1 5.1 0.0 183.2 121.8 60.5 3.6 17.4 4.9 0.0 208.2 90.0 48.1 1.6 18.1 4.9 0.0 162.7 113.6 34.5 0.8 19.0 6.4 0.0 174.3 443.5 181.9 8.1 73.6 21.3 0.0 728.4 131.5 20.4 1.4 6.9 0.1 160.3 0.0 103.5 19.2 3.2 7.7 0.9 134.5 0.0 99.5 17.4 1.9 7.6 4.8 131.2 0.0 100.7 17.6 1.3 7.4 1.6 128.6 0.0 435.2 74.6 7.8 29.6 7.4 554.6 0.0 89.8 18.7 0.8 7.4 4.5 121.2 0.0 110.8 31.4 1.7 7.0 0.8 151.7 0.0 98.0 25.4 0.8 7.6 2.9 134.7 0.0 127.5 19.5 0.4 8.3 4.0 159.7 0.0 426.1 95.0 3.7 30.3 12.2 567.3 0.0 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05 4Q05 2005

14

Attachment 5 Total Sales

1Q04 Volume (1,000 t) Kraftliner Coated Boards Corrugated Boxes Bags Others Total Wood Volume (1,000 t) Net Revenue (R$ million) Kraftliner Coated Boards Corrugated Boxes Bags Others Wood Total 152.9 141.2 177.7 80.8 16.3 61.3 630.2 139.2 150.4 193.7 87.2 17.7 71.3 659.5 151.0 167.4 215.6 92.8 16.3 94.5 737.6 150.4 150.7 219.8 90.0 16.8 74.5 702.2 593.5 609.7 806.8 350.8 67.1 301.6 2,729.5 136.0 149.5 197.7 92.0 17.0 81.0 673.2 135.4 174.0 226.3 87.1 21.0 76.3 720.1 103.5 169.9 209.1 85.1 17.4 65.3 650.3 128.7 156.6 210.2 85.4 17.7 64.1 662.7 503.6 650.0 843.3 349.6 73.1 286.7 2,706.3 142.4 71.3 92.7 28.0 6.1 340.5 758.6 115.4 77.9 102.2 28.9 5.4 329.8 823.8 113.0 81.0 111.8 30.7 11.1 347.6 957.8 112.9 71.4 106.2 28.9 6.0 325.4 732.0 483.7 301.6 412.9 116.5 28.6 1,343.3 3,272.2 103.1 72.6 98.7 29.6 12.7 316.7 778.8 121.1 88.0 113.9 28.5 8.1 359.6 769.7 108.1 87.3 100.8 28.4 9.8 334.4 689.6 139.6 81.6 106.1 28.5 10.6 366.4 683.4 471.9 329.5 419.5 115.0 41.2 1,377.1 2,921.5 2Q04 3Q04 4Q04 2004 1Q05 2Q05 3Q05 4Q05 2005

15

Attachment 6
Financing Repayment Schedule 31/12/05
R$ million BNDES Finame Debentures Others Local Currency Trade Finance Hedge Others Fixed Assets Foreign Currency Gross Debt 1Q06 0.2 0.2 57.3 57.7 63.7 232.7 1.4 0.9 298.7 356.4 2Q06 1.6 9.3 12.0 22.9 77.0 3Q06 0.1 9.7 9.8 57.5 4Q06 1.4 9.6 11.0 77.0 2006 0.2 3.3 9.3 88.6 101.4 275.2 232.7 1.4 1.7 511.0 612.4 2007 13.7 2.8 314.1 174.9 505.5 67.9 2008 32.8 1.3 42.5 76.6 91.3 14.6 1.6 69.5 575.0 105.9 182.5 2009 32.8 2010 32.8 2011 32.8
2012 onwards

Total 178.3 7.4 323.4 486.8 995.9 483.6 232.7 71.7 3.3 791.3 1,787.2

33.2

32.5 65.3 32.8 14.6 47.4 112.7

46.3 79.1 16.4 17.6 34.0 113.1

46.3 79.1

55.7 88.9

17.6 17.6 96.7

5.9 5.9 94.8

77.0 99.9

0.8 58.3 68.1

77.0 88.0

R$ million

575 70

357

Foreign Currency Local Currency

Local Currency Foreign Currency Total Gross Debt

Average Cost 18.5% p.y 5.8% p.y

Average Term 33 months 15 months 25 months

506

299 100 77
58
1Q06

183 106
77

113 47
65
2009

113 34
79
2010

68 58
10
3Q06

88 77 11
4Q06 2007

97 18
79
2011

95 6
89
2012 onward

23
2Q06

2008

16

Attachment 7
Consolidated Cash Flow Statement (Thousand of R$)
4th Quarter 2005 Cash flow from operating activities Net income Items not affecting cash and cash equivalents Depreciation, amortization and depletion Gain (loss) on sale of assets Provision for loss on permanent assets Deferred income and social contribution Interest and exchange variation on loans and financing Equity in subsidiaries Exchange variation on foreign investments Reserve for contingencies Minority interest Decrease (increase) in assets Accounts receivable Inventories Recoverable taxes Prepaid expenses Other receivables Increase (decrease) in liabilities Suppliers Taxes 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 Cash, cash equivalents and investments Guarantee deposits Purchase of property, plant and equipment Increase in deferred charges Sale of property, plant and equipment Judicial deposits Others Net cash provided by (used in) investing activities Cash flow from financing activities New loans and financing Debentures Amortization of financing Payment of interest Capital contribution to subsidiaries by minority shareholders Dividends paid Net cash used in financing activities Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 26,096 63,119 (970) (443) 84,046 32 (658) 6,536 5,163 4,908 37,556 (9,979) 11,161 (5,899) 32,640 (114) (13,079) (14,363) (7,201) 218,551 (1,152) (70,721) (1,027) 956 311 (71,633) 224,264 (301,124) (55,369) 2004 89,212 62,354 (981) (1,391) (1,456) 19,507 44 1,528 (165) 17,882 25,501 (41,760) (14,703) 3,806 (4,234) (8,251) 2,740 25,882 5,758 (14,265) 167,008 (1,068) (91,365) (542) 9,368 (82) (83,689) 4,759 319,459 (53,601) (29,736) 10,493 (75,014) 176,360 259,679 830,949 1,090,628 259,679 2005 309,108 245,070 (1,153) 936 (29,461) 212,626 151 2,815 12,576 25,830 140,134 16,594 8,728 (322) 9,228 37,701 55 (41,538) (9,222) 6,093 945,949 (5,386) (365,948) (3,790) 3,446 (9,211) (32) (380,921) 662,964 (559,692) (151,599) 12,110 (190,516) (226,733) 338,295 1,090,628 1,428,923 338,295 Year 2004 455,544 231,818 664 (1,391) 26,687 156,193 288 2,538 (51,608) 29,225 (133,298) (23,190) (3,150) (3,194) 14,207 31,461 4,018 8,066 9,083 2,406 756,367 (34,135) 87,070 (337,373) (2,577) 12,100 (12,131) (82) (287,128) 441,715 319,459 (428,960) (99,983) 30,149 (275,252) (12,872) 456,367 634,261 1,090,628 456,367

(132,229) 14,689 1,414,234 1,428,923 14,689

17