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October 26, 2020

Klabin reports 59% growth in adjusted EBITDA in the third quarter of 2020 compared to the same period last year

– Adjusted EBITDA reached R$1.233 billion in the third quarter of this year.

– Net revenue in 3Q20 was a record R$3.109 billion.

– Total sales volume in the third quarter of 2020 increased 14% from the same period in 2019, with growth across all business lines.

São Paulo, October 26, 2020 – Klabin, Brazil’s largest producer and exporter of packaging paper, 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, has registered adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) of R$1.233 billion in the third quarter of 2020, an increase of 59% from the same period in 2019, excluding the non-recurring effects reported in the 3Q19 results.

Driven by growth across all business lines, the Company posted record net revenue of R$3.109 billion in 3Q20, an increase of 25% from 3Q19. Excluding wood, total sales volume in August, September and October this year stood at 910 thousand tons, 14% higher than in the third quarter last year. This is due to Klabin’s operational efficiency and flexibility, as well as the fact that it serves the basic needs sectors – especially in the industrialized and fresh foods, personal hygiene, hospital and cleaning products segments, as well as the construction materials and durable goods sectors, which registered strong growth in demand during the period.

In the third quarter of 2020, adjusted free cash flow, which excludes discretionary factors, stood at R$1.8 billion. In the last twelve months, adjusted free cash flow reached R$4.0 billion. During the third quarter, Klabin invested R$1,348 million in its operations and expansion projects, with R$88 million going to forestry operations, R$104 million to meet the working capital requirements of mills and R$15 million to special projects. A total of R$3.848 billion have been invested in the Puma II Project so far, including R$1.141 billion spent in the third quarter of 2020. In the Project, 57% of the first machine has already been built.

In October this year, Klabin took over the Brazilian operations of the packaging paper and corrugated board packaging businesses acquired from International Paper in March 2020.

The Company’s results in the third quarter of 2020 demonstrate its capacity to deliver even during a sensitive period for the economy, thanks to an integrated and verticalized business model, which gives Klabin the operational flexibility to adapt its production and sales to changing needs, while keeping essential sectors for the population supplied.

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