KLBN4 Klabin

Klabin S.A. is a publicly traded company with shares listed on B3 (tickers KLBN11, KLBN3 and KLBN4). Its history dates back to 1899, when it was founded in São Paulo by the Klabin-Lafer family to sell stationery products and office and printing supplies. A few years later, the company leased a small printing paper mill and began operating in paper production, a segment in which it remains to this day. In 1909, Companhia Fabricadora de Papel was created, and by the 1920s it already ranked among the three largest paper producers in Brazil, supported by a technology innovation strategy based on frequent contact with European industrial centers. A major milestone occurred in 1934, with the acquisition of Fazenda Monte Alegre in Paraná to install the country’s first integrated pulp and paper mill, IKPC, driving the verticalization of the business.

From the 1940s onward, Klabin began developing planted forests, first with araucaria and eucalyptus, then with large-scale pine, and in 1946 it started producing newsprint and packaging papers, reducing Brazil’s dependence on imported newsprint. Between the late 1960s and mid-1970s, the company underwent strong industrial expansion, installing new plants in the South, Southeast and Northeast regions. This growth culminated in its IPO in 1979, strengthening its capital structure to support long-term investments in paper and pulp. In 2003, after a financial restructuring, the company focused its business on the production of packaging paper and paperboard and paper packaging, consolidating the focus that still defines its operating model today.

Klabin currently operates across the entire value chain, from forestry to converting paper into final packaging. The company organizes its operations into four segments: Forestry, Pulp, Paper and Packaging. The Forestry Segment comprises the planting and cultivation of pine (long fiber) and eucalyptus (short fiber) forests, mainly to supply its mills, although part of the wood is also sold to third parties in the domestic market. The Pulp Segment covers the production and sale of bleached hardwood, softwood and fluff pulp, supplying tissue, printing and writing, specialty, packaging paper and hygiene product markets. In the Paper Segment, Klabin produces kraftliner, coated board and high-value recycled papers, which are destined for consumer goods industries in several sectors. The Packaging Segment focuses on the production and sale of corrugated cardboard boxes and sheets and industrial bags, serving both the domestic and foreign markets.

From a revenue standpoint, the company shows a diversified profile within the paper, pulp and packaging chain. In 2024, net operating revenue reached R$ 19.6 billion, with a contribution of 3% from the Forestry Segment, 31% from Pulp, 33% from Paper and 34% from Packaging. In the first half of 2025, net revenue came to R$ 10.1 billion, maintaining a balanced mix: 3% Forestry, 29% Pulp, 33% Paper and 35% Packaging. Exports are highly relevant to the business, accounting for 35% of total net revenue in 2023 and 2024, and 39% in the first half of 2025. The customer base is diversified, with no single client accounting for more than 10% of annual revenue in 2024, although in the first half of 2025 one customer in the paper segment exceeded this threshold.

From a production standpoint, Klabin controls a significant forest base of 911 thousand hectares, of which 463 thousand hectares are productive for pine and eucalyptus plantations, 373 thousand hectares correspond to preserved native forests and 74 thousand hectares are allocated to roads, separators and other improvements. All forest areas located in São Paulo, Paraná and Santa Catarina are certified by FSC and PEFC, which underpins responsible forest management practices. In pulp, the company operates, among others, the MC25 and MC26 machines at the Puma I unit in Ortigueira (PR), with combined sellable capacity of approximately 1.5 million tons per year of hardwood, softwood and fluff pulp. In paper, the company has an industrial park distributed across units in Paraná, Santa Catarina, São Paulo and Pernambuco, with machines specialized in containerboard, paperboard and 100% recycled papers, totaling sellable capacity of millions of tons per year, including specific lines such as Eukaliner, kraftliner and the recycled papers Ekoflute and Ekoliner.

Klabin is present in all regions of Brazil with 22 industrial plants, in addition to a mill in Pilar, Argentina. According to the Brazilian Tree Industry (IBÁ) and internal estimates, the company is the largest producer, exporter and recycler of packaging paper in Brazil and one of the largest integrated paper producers in Latin America, with production capacity of 4.5 million tons of pulp, packaging and packaging paper in 2024. The company also operates its own port terminal at the Port of Paranaguá in Paraná, subject to ANTAQ regulation and oversight by the local port authority and the Federal Revenue Service as the customs authority, which strengthens its logistics infrastructure for exports.

On the regulatory front, Klabin depends on a broad set of environmental licenses and water use grants, permits for forest suppression and management and waste management licenses, in compliance with the National Environmental Policy, the Forest Code, the National Solid Waste Policy and the National Water Resources Policy, as well as state and municipal laws. The company also requires operating permits, authorizations to use controlled chemical products and other registrations with civilian and military authorities. As described in its Reference Form, the company maintains a relationship with public authorities based on transparency and diligence, seeking to keep its authorizations valid and to adapt its business to regulatory requirements with the least possible impact on operational planning.

The environmental, social and governance (ESG) dimension is a core pillar of Klabin’s corporate strategy. The company was the first in the Southern Hemisphere in the pulp and paper sector to obtain FSC certification for its forest unit in Paraná in 1998, and today its forests and production processes are fully certified. Its shares have been listed on B3’s Level 2 corporate governance segment since 2014, and the company has been part of the exchange’s Corporate Sustainability Index (ISE) for more than eleven years. It is also included in the Dow Jones Sustainability Index, both in the Global and Emerging Markets portfolios, having achieved high scores in recent assessments. Klabin has embraced the UN Sustainable Development Goals agenda, set greenhouse gas emission reduction targets approved by the Science Based Targets initiative, and established the “Klabin Targets for Sustainable Development” for 2030, with public monitoring through its own ESG dashboard. These initiatives, together with the Sustainability Policy approved by the Board of Directors, demonstrate the formal incorporation of sustainability criteria into the company’s business model.

For individual investors, Klabin combines the profile of an integrated industrial company, with a strong base of forest and industrial assets, a relevant presence in domestic and international markets, and a track record of more than a century in the paper, pulp and packaging sector. The KLBN11, KLBN3 and KLBN4 shares provide access to an issuer that operates across the entire chain, from forest planting to delivery of packaging to the end customer, with revenue distributed among pulp, paper and packaging and inclusion in domestic and international sustainability indices. The business dynamics are tied both to the global pulp and paper cycle and to demand from a range of packaging-consuming sectors such as food, beverages, hygiene, electronics and construction, within a regulatory environment marked by significant environmental requirements and the need for continuous management of social, environmental and operational risks.