- Adjusted EBITDA of R$1.798 billion in the period, increasing 35% from 2Q20

- Strong performance by all business lines drove 38% year-on-year growth in Net Revenue in the second quarter

- In June, the Company announced investments of R$342 million focused on special and expansion projects with quick and high returns

- During the period, the Company’s targets for reducing greenhouse gas emissions were approved by the Science Based Targets initiative (SBTi), underscoring its commitment to sustainability

São Paulo, August 10, 2021 – Klabin, Brazil's largest producer and exporter of paper for packaging and paper packaging, 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 35% growth in adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in the second quarter of 2021 compared to the same period last year, totaling R$1.798 billion.

Sales volume, excluding wood, grew 10% year on year in the quarter to 946,000 tons. The result was driven by strong demand in all the markets where Klabin operates. Sales growth combined with higher profitability across all business lines led to higher net revenue in 2Q21, which amounted to R$4.076 billion, up 38% from 2Q20 and 27% excluding revenue from assets acquired from International Paper in Brazil.

In June, the Company announced investments of R$342 million in special and expansion projects that will be implemented between 2021 and 2022. Most of this amount will be invested in the packaging segment to expand the Company’s capacity to convert paper into packaging and offer the market cutting-edge technology for top-quality printing.

The solid operational performance in the quarter combined with favorable market conditions once again enabled the Company to benefit from its integrated, diversified and flexible business model, which combines growth with value creation. Even during the investment cycle of the Puma II Project, Klabin reduced its leverage to 3.6x in 2Q21, from 4.0x in 1Q21, considering the net debt/EBITDA ratio in USD.

Investments
In 2Q21, Klabin invested a total of R$904 million in operational maintenance and expansion projects. Of this amount, R$70 million went to forestry operations, R$115 million to working capital requirements of mills and R$18 million to special projects and expansions. Puma II Project disbursements in the second quarter of 2021 amounted to R$700 million, bringing total investments to R$6.5 billion in the project, which is the largest investment in Klabin’s history.

Sustainability
The second quarter of the year also marked the approval by the Science Based Targets initiative (SBTi) of the Company’s targets for reducing its greenhouse gas emissions, an important milestone that underscores Klabin’s commitment to sustainable development, especially issues related to climate change. Between 2003 and 2020, the Company reduced its greenhouse gas (GHG) emissions by 64% and the target approved by SBTi, based on scientific criteria, represents a more ambitious contribution to combatting global warming. The commitment is to reduce CO2 emissions (scopes 1 – own emissions and 2 – emissions from purchased energy) per ton of pulp, papers and packaging, by 25% by 2025 and 49% by 2035, compared to the baseline year of 2019.