Klabin (KLBN4) Investor Day 2025 summary

Strategic direction, asset base, and business model

• Leverages a unique, irreplicable business model with both softwood and hardwood fibers, focusing on high-value, niche markets and long-term contracts with global brands.

• Maintains a diversified product portfolio across food-grade, hygiene, construction, pulp, paper, and packaging, with market leadership and strong commercial relationships.

• Unique forest asset base ensures privileged access to long fiber, high productivity, and competitive costs, supporting growth and asset appreciation.

• Prioritizes operational excellence, land management expertise, and sustainability, benefiting from optimal forestry conditions in southern Brazil.

• Completed a major investment cycle and is now focused on a harvest and deleveraging phase, maximizing returns from existing assets.

Financial discipline, capital allocation, and guidance

• Maintains strict cost control, keeping cash costs stable and below inflation, with 2026 guidance at R$3.2–3.3k/t for the fourth consecutive year.

• Strategic planning and financial discipline drive capital allocation, aligning growth, debt management, and shareholder returns.

• Robust deleveraging roadmap with extension of maturities and reduction of debt, maintaining leverage within policy limits.

• Investment guidance for 2025–2026 is BRL 3.3 billion, with actual 2025 investments expected below this level and no expansion CapEx planned.

• Reduced investment levels are strengthening cash generation and supporting further deleveraging.

Shareholder returns and capital actions

• Issued interim dividends and a 1% share bonus to mitigate potential regulatory changes, with R$1.3 billion in dividends paid in the last twelve months and a 5.5% yield.

• Early declaration of R$1.1 billion in interim dividends for 2026, to be paid in four quarterly installments.

• Capital increase with R$0.8 billion in bonus shares, representing 1% of the current share base.

• Focuses on reducing leverage to safer levels over the next five years, aiming for increased free cash flow and stable dividend payments.