PressReleases

October 28, 2019

Klabin registers 12% growth in adjusted EBITDA in the third quarter of 2019

Adjusted EBITDA in the period was R$1.396 billion, up 12% from the third quarter in 2018. . Paperboard sales volume increased 25% in the third quarter of 2019 compared to the same period last year. . Maintenance shutdown at the Puma Unit in July was completed on time and within budget.

Klabin registers 12% growth in adjusted EBITDA in the third quarter of 2019

. Adjusted EBITDA in the period was R$1.396 billion, up 12% from the third quarter in 2018.

. Paperboard sales volume increased 25% in the third quarter of 2019 compared to the same period last year.

. Maintenance shutdown at the Puma Unit in July was completed on time and within budget.

São Paulo, October 28, 2019 – Klabin, Brazil’s largest packaging paper producer and exporter, the country’s only producer to offer solutions in hardwood, softwood and fluff pulp, and the leading producer of corrugated board packaging and industrial bags, registered 12% growth in adjusted EBITDA (earnings before interest, tax, depreciation and amortization) in the third quarter of 2019 compared to the same period last year, to R$ 1.396 billion.

Total sales volume in 3Q19, excluding wood, came to 799,000 tons, down 6% from the same period a year ago. The decline, explained by lower pulp sales volume resulting from the maintenance shutdown at the Puma Unit, was partially offset by the growth in shipped volumes by the paper units. The highlight was paperboard sales, which increased 25% in 3Q19 compared to 3Q18, thanks to Klabin’s successful commercial positioning and technological expertise in this market. The company’s total sales volume in the first nine months of the year grew 3% from the same period in 2018 to 2.4 million tons, led by the paperboard and pulp markets.

The Company’s successful positioning in diverse paper and packaging markets, coupled with its operational flexibility, drove growth in the packaging segment (corrugated board and industrial bags), which, despite the weak performance of the Brazilian economy, registered 6% growth in revenue in the third quarter of the year compared to the third quarter in 2018. Net revenue in the first nine months of the year grew 5% to R$7,568 million. Despite the lower prices in the pulp and kraftliner markets, net revenue growth is explained by the depreciation of the Brazilian real in the period, increased pulp and paper volumes, and the rebuilding of prices in the packaging business.

Investments

In the third quarter of 2019, Klabin invested R$845 million, of which R$79 million in forest operations, R$215 million in the operational continuity and maintenance of its plants and R$121 million in special and expansion projects.

Puma II Project

Investments in the Puma II Project totaled R$430 million in the third quarter of the year and R$718 million since construction began. Construction works advanced ahead of the initial schedule, with 6.6% of the first phase of the project already completed. Approved on April 16, 2019 and with total investment estimated at R$9.1 billion, the new expansion cycle involves the construction of two packaging paper (kraftliner) machines, with integrated pulp production, at the Company’s industrial unit in Ortigueira, Paraná, at the same site where the Puma Unit, its pulp mill inaugurated in 2016, is located.

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