Adjusted EBITDA, which has set successive records, reached R＄ 2.311 billion in the third quarter of the year, growing 20% from the same period in 2021;

Driven by growth across all business lines, net revenue in 3Q22 totaled R＄ 5.488 billion, up 26% from 3Q21;

Best result in Klabin's history underscores the Company's successful integrated, diversified and flexible business model.

São Paulo, October 26, 2022 - Klabin, Brazil’s largest producer and exporter of packaging paper and sustainable solutions in paper packaging, and the only one in the country to offer hardwood, softwood and fluff pulp, has reported the best quarterly results in its history.  Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) reached R＄2.311 billion in the third quarter of 2022 (3Q22), an increase of 20% from the third quarter of 2021 and a new record for the company.

Sales volume in the third quarter of 2022 was over 1 million tons, growing 4% from the same period in 2021, thanks to the strategic diversification of products and markets, combined with strong operating performance.  Sales volume of the paper business, which grew 15% year on year, benefitted from the additional volume of Eukaliner® produced by MP27 (first phase of the Puma II Project).

Net revenue reached R＄ 5.488 billion in 3Q22, increasing 26% from 3Q21, driven by higher sales volume and price adjustments in recent quarters across all business units, as well as the positive exchange rate effect in the period.

Return on Invested Capital (ROIC) in the last 12 months stood at 19.3%, underlining Klabin's ability to combine growth and value generation for shareholders in diverse scenarios.  The record results in 3Q22 further consolidate the Company's successful integrated, diversified and flexible business model, and reaffirm the confidence in its path of expansion followed consistently over the past few years.

INVESTMENTS

In the third quarter, Klabin invested R＄ 1.691 billion in its operations and expansion projects, of which R＄ 328 million went to forestry operations and R＄ 162 million to meet the working capital requirements of mills.  Investments in Special Projects and Expansions reached R＄ 267 million, continuing the projects announced in June 2021, the construction of the port terminal at the Port of Paranaguá, as well as the Horizonte and Figueira Projects.  Total investments in the Puma II Project reached R＄ 10.305 billion by the end of the quarter, of which R＄ 934 million were disbursed in 3Q22.  Physical progress of construction work on the Project's second paper machine (MP28) reached 65% and startup is scheduled for the second quarter of 2023.

HONORS

Klabin's commitment to the ESG Agenda won recognition from two important awards in the third quarter of 2022. For the seventh time, the Company received the Transparency Trophy from Brazil’s National Association of Finance, Administration and Accounting Executives (Anefac), which honors companies with the best transparency practices in disclosing to the market their accounting information through financial statements.  The company also won the Golden Tombstone Award, in the Debt category, which evaluates debt issues, for its “Sustainability Linked Bond (SLB)” issue.  Among the factors that helped Klabin win the award was its SLB bond issue in January 2021, which involved three important environmental targets, including one biodiversity target, making Klabin the first company in the world to link its performance in biodiversity to a financial instrument.