3Q23
Earnings Presentation
ri.klabin.com.br
ri.klabin.com.br | Earnings Presentation 3Q23 |
DISCLAIMER
This presentation may contain forward-looking projections or statements. Such statements are exposed to known and unknown risks and different nature uncertainties that may cause these expectations not to materialize or to differ materially from those anticipated. Furthermore, these expectations and projections are made based on estimates, information or methodology that may be inaccurate or incorrect.
Those risks and uncertainties, among others, are related to: (i) future demand for the Company's products; (ii) changes in the aspects that impact the domestic and international product prices; (iii) changes in cost structures;
- changes in the seasonality of markets; (v) competition in the markets in which the Company operates; (vi) exchange variations; (vii) changes in the global market and especially in the markets where the Company operates or sells its products; (viii) capital markets; and (ix) factors that affect the company's operation, including changes in laws and regulations. For additional information on factors that may impact the Company's statements, please consult the Reference Form, in particular item 4 (Risk Factors), which is registered with CVM and also available on the Company's Investor Relations website.
There is no guarantee that the Company's expectations or projections will occur and current results are no guarantee of future performance. This presentation is up to this date and Klabin has no obligation to update it in light of new information and/or future events.
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ri.klabin.com.brEarnings Presentation 3Q23
3Q23 PERFORMANCE - Sales Volume
Pulp | ||
426 | SHORT FIBER | 33% |
315 k tons | ||
k tons | LONG FIBER/FLUFF | |
11% | ||
111 k tons | ||
Paper - Market | ||
COATED BOARDS | 17% | |
268 | 166 k tons | |
k tons | KRAFTLINER | 10% |
102 k tons | ||
Packaging
CORRUGATED BOX | 23% | |
262 | 226 k tons | |
k tons | INDUSTRIAL BAGS | 4% |
36 k tons | ||
Total 967 | % of total sales | Adjusted EBITDA by |
Sales¹ k tons | volume | Segment³ 3Q23 |
R$ 1.352 bn |
Convertion
(Integration)
Pulp
CORRUGATED32%
BOX
Paper & | |
69% | Packaging |
68% | |
Integration² INDUSTRIAL | |
BAGS |
1 - Excludes wood sales
2 - It considers the amount of paper used for the production of
packaging in relation to the volume of containerboard produced in the period (430kt)
3 - Result of 'Other' allocated in their respective businesses | 3 |
ri.klabin.com.br | Earnings Presentation 3Q23 |
EXPECTED TREND IN 4Q23 COMPARED TO 3Q23
Demand Prices
Short Fiber
PULP
Long Fiber/Fluff
Coated Boards
PAPER
Kraftliner
Corrugated Box
PACKAGING
Industrial Bags
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ri.klabin.com.br | Earnings Presentation 3Q23 |
3Q23 RESULTS
Sales Volume¹ | Net Revenue² |
(thousand tons) | (R$ million) |
Adjusted EBITDA by Segment³
(R$ million)
42%
-5%
1,015 967
44% | 44% |
56% | 56% |
3Q22 3Q23
Foreign Market
Domestic
Market
-20% | |||
5,488 | |||
42% | 4,400 | ||
33% | |||
58% | 67% |
3Q22 3Q23
31% | EBITDA Margin |
Paper & Packaging |
Pulp | |||||||||
-41% | |||||||||
2,311 | |||||||||
1,103 | 1,352 | ||||||||
913 | |||||||||
1,208 | |||||||||
439 | |||||||||
3Q22 | 3Q23 |
1 - Excludes wood sales
2 - Includes wood sales and other revenues
3 - ' Other' results were allocated in the respective businesses
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ri.klabin.com.br | Earnings Presentation 3Q23 |
PULP
Geographic flexibility, diversified portfolio and fluff's record volume benefited the result
EBITDA/t³ 3Q23
Sales Volume
(thousand tons)
+4%
411 426
Short Fiber 295 | 315 |
Long Fiber | 33 | |
19 | ||
Fluff | 83 | 92 |
Pulp R$ 1,031/t
Short Fiber and Long | Production Cash Cost² | ||||||||||||||||||
Fiber/Fluff Net Price | |||||||||||||||||||
(R$/t) | |||||||||||||||||||
(US$/t¹) | |||||||||||||||||||
-20% | US$ | US$ | US$ | ||||||||||||||||
270/t¹ | 275/t¹ | 269/t¹ | |||||||||||||||||
-36% | Short Fiber | ||||||||||||||||||
Long Fiber+ Fluff | - 7% | ||||||||||||||||||
1,183 | |||||||||||||||||||
948 | -4% | ||||||||||||||||||
836 | |||||||||||||||||||
538 | 1,417 | 1,363 | 1,314 | ||||||||||||||||
3Q22 | 3Q23 | 3Q22 | 3Q23 | 3Q22 | 2Q23 | 3Q23 |
1 - Calculated based on the average dólar for the period | 6 | |
2 | - Excludes schedules maintenance effects | |
3 | - See methodology on the EBITDA section in the Earnings Release |
ri.klabin.com.br | Earnings Presentation 3Q23 |
PAPER & PACKAGING
Integrated business model and high exposure to the food and beverage segments bring greater stability to results
Paper & | R$ 1,824/t | |||
Net Price | Packaging | + 7% | ||
(R$/t) | EBITDA/t¹ | |||
Paper | Packaging | Paper & Packaging | ||
(R$/t) |
-35% | Coated Board | +14% | Corrugated Box | +3% | |||||||||||||||
+7% | Containerboard | +2% | Industrial Bags | ||||||||||||||||
5,524 | 8,940 | 1,876² | |||||||||||||||||
1,827 | |||||||||||||||||||
5,173 | 5,199 | ||||||||||||||||||
7,853 | |||||||||||||||||||
5,859 | |||||||||||||||||||
3,370 | 5,754 |
3Q22 | 3T23 | 3Q22 | 3Q23 | 3Q22 | 3Q23 |
1 - See methodology on the EBITDA section in the Earnings Release | 7 |
2 - Excludes maintenance stoppage effects |
ri.klabin.com.br | Earnings Presentation 3Q23 |
CASH COST
Lower costs explained by the drop in the commodities prices, production stoppages due to market conditions and actions to reduce fixed costs and operational efficiency
Cash Cost1
(R$/t)
-3%
-6%
3,134 3,243 3,042
3Q22 2Q23 3Q23
Accumulated Cash Cost1
(R$/t)
+5%
3,019 3,181
9M22 9M23
Cash Cost Composition
(R$ million)
Paper/OCC | Electricity | ||||
Fuel oil | |||||
2% | |||||
Others | |||||
3% | |||||
Labor | 7% | ||||
3% |
30%
11% Maintenance
3Q23
12% Chemicals
17%
Wood15% Freight
1 - Excludes schedules maintenance effects | 8 |
ri.klabin.com.br | Earnings Presentation 3Q23 |
FREE CASH FLOW (FCF)
Discipline in investment management and working capital management led Adjusted FCF Yield to 17.6%, a 3.7 p.p growth compared to 3Q22
R$ million | 3Q23 |
2Q23 3Q22
LTM 3Q23
LTM 3Q22
Adjusted EBITDA¹ | 1,352 | 1,344 | 2,311 | 6,544 | 7,911 | |
(-) Capex² | (1,093) | (1,029) | (1,691) | (4,878) | (5,394) | |
(-) Lease contracts - IFRS 16 | (80) | (60) | (65) | (270) | (215) | |
(-) Interest Paid/Received | (111) | (208) | (334) | (772) | (1,224) | |
(-) Income tax | (17) | (47) | (81) | (267) | (582) | |
(+/-) Working Capital Variation | 2 | 152 | (164) | 537 | (956) | |
(-) Dividends & IOC | (269) | (389) | (399) | (1,541) | (1,524) | |
(+/-) Others | (21) | (9) | 8 | 130 | (15) | |
Free Cash Flow | (237) | (245) | (415) | (518) | (2,000) | |
Dividends & IOC | 269 | 389 | 399 | 1,541 | 1,524 | |
Puma II Project | 399 | 433 | 934 | 2,146 | 3,169 | |
Special Projects and Growth | 185 | 210 | 267 | 858 | 734 | |
Adjusted Free Cash Flow3 | 616 | 787 | 1.186 | 4,027 | 3,428 | |
Adjusted FCF Yield4 | 17.6% | 13.9% |
1 | - Includes the non-recurring effect of R$ 147 million in 2Q22 related to the extemporaneous PIS/COFINS credit on OCC purchases | |
2 - Capex under cash accrual method does not consider investments into SPVs (Special Purpose Vehicles) | 9 | |
3 | - Excluding dividends, Ioc and special and expansion projects | |
4 | - Yield - Adjusted FCF per unit (excluding treasury stock) divided by the average price of the Units in the LTM |
ri.klabin.com.br | Earnings Presentation 3Q23 |
NET DEBT AND LEVERAGE
Company's leverage within leverage target defined in the Indebtedness Policy
Position in 09/30/2023
Gross Debt | R$ 28.7 billion | |||||||||||||||||||||||||||||||||
Cash³ | R$ 7.8 billion | |||||||||||||||||||||||||||||||||
4.6 | ||||||||||||||||||||||||||||||||||
4.2 | Net Debt | R$ 20.9 billion | ||||||||||||||||||||||||||||||||
4.0 | 3.6 | |||||||||||||||||||||||||||||||||
3.2 | 3.0 | 3.2 | ||||||||||||||||||||||||||||||||
4.0 | 4.0 | 4.0 | 2.7 | 2.7 | 2.7 | 2.7 | 2.6 | 2.8 | ||||||||||||||||||||||||||
3.3 | 3.1 | 2.9 | 3.2 | |||||||||||||||||||||||||||||||
2.4 | 2.7 | 2.6 | 2.6 | 2.6 | 2.6 | |||||||||||||||||||||||||||||
21,053 | 19,782 | 21,744 | 19,950 | 20,916 | 17,890 | 20,525 | 21,435 | 21,038 | 20,985 | 19,515 | 20,882 | |||||||||||||||||||||||
18,770 | ||||||||||||||||||||||||||||||||||
4,558 | 4,906 | 5,153 | 5,618 | 6,313 | 6,885 | 7,336 | 7,528 | 7,911 | 7,931 | 8,148 | 7,502 | 6,544 | ||||||||||||||||||||||
3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | ||||||||||||||||||||||
Net Debt (R$ million) | Adjusted EBITDA LTM¹ (R$ million) | Net Debt/EBITDA (LTM - R$)³ | Net Debt/EBITDA (LTM - US$)4 | |||||||||||||||||||||||||||||||
1 | - LTM: Last twelve months | |||||||||||||||||||||||||||||||||
2 | - Access the Policy in our IR site | 10 | ||||||||||||||||||||||||||||||||
3 | - Excludes the Revolving Credit Facility of US$ 500 million due in Oct/26 | |||||||||||||||||||||||||||||||||
4 | - Net Debt/EBITDA (US$): considers the final dollar of the period to calculate the Net Debt and the average dollar of the period for EBITDA |
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Disclaimer
Klabin SA published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 14:03:41 UTC.