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;

  1. 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.

2

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

4

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

5

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

EBITDA/t¹ 9M23

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.