Klabin is a Brazilian company, the largest producer and exporter of paper for packaging and leader in the manufacture of paperboard and coated board for packaging, corrugated boxes, and industrial bags. Founded in 1889, Klabin operates 25 industrial units — 24 in Brazil and one in Argentina.
Our story began with the arrival of two immigrant families in Brazil: Klabin and Lafer and the opening of a workshop for manufacturing and importing office supplies and printing items. In 1902, they expanded their businesses by leasing their first paper factory – Fábrica de Papel Paulista. In 1909, they constituted their first factory – Companhia Fabricadora de Papel – which by the second decade of the last century was already one of the largest manufacturers in Brazil. Since then Klabin has never stopped growing, becoming the leading manufacturer of paper and coated paper for packaging, corrugated boxes and industrial bags. To find out more about our history, please access the Klabin Memory tab in our klabin.com.br website
Production of raw material for the other business areas, pulp and sales of logs to sawmills and laminators.
Production of paperboard, kraft paper and recycled paper for packaging companies.
Long and short fiber pulp and fluff pulp.
Corrugated Board and Industrial Bags
Conversion of paperboard for the manufacture of all types of packaging with uses in sectors such as foodstuffs, beverages and fresh fruit and vegetables as well as industrial bags for segments such as civil construction, animal feed, among others.
Pine and eucalyptus logs from certified rigorously managed plantations with FSC® (C001941) certification for meeting the demand for raw materials from our manufacturing units. Any excess supply goes to the market for use in furniture making, civil construction and sawmills.
- Paperboard — this consists of three layers which can be made of long/short and/or recycled fiber according to the client’s requirements. The types of paperboard manufactured by Klabin are:
– Liquid Packaging Board (LPB) — packaging for liquid products such as milk and fruit juices;
– Carrier Board (CB) — highly resistant packaging, such as multi-pack packaging for beer;
– Folding Box Board (FBB) — medium resistance packaging such as boxes for frozen foods and laundry detergent.
- Recycled paper — used in the company’s own production of corrugated board packaging as well as being sold to other packaging companies. Approximately 15% of the raw materials are obtained from the corrugated board packaging conversion units and the remainder from scrap paper merchants. The Piracicaba plant has the largest paper recycling machine in Brazil with a production capacity of 240 tons/day.
- Kraftliner — uses 100% virgin pine and eucalyptus fibers, a mix which gives resistance, excellent printability, has a wide range of uses and a high performance in the most varied of industrial equipment such as corrugators and printers.
- Sack Kraft — uses 100% virgin pine fibers providing high resistance to the product. Ideal for the manufacture of industrial bags.
Corrugated Board and Industrial Bags
- Corrugated board — made of kraftliner and recycled paper, this product is manufactured by Klabin for use in any type of packaging according to client specifications, with uses in various segments such as foodstuffs, beverages, cosmetics, electro-electronic goods, hygiene and cleaning materials, fresh fruit and vegetables and flowers, electrical materials, chemicals and derivatives, apparel and footwear, glass and ceramics.
- Industrial bags — made from sack kraft and produced for the civil construction industry, food and chemical products, agribusiness, animal rations, among others.
- Long fiber
- Short fiber
|TOTAL AREA||THOUSAND HECTARES|
|TOTAL CAPACITY||THOUSAND TONS|
|TOTAL CAPACITY||THOUSAND TONS|
|TOTAL CAPACITY||THOUSAND TONS|
|Short fiber pulp||1,150|
|Long fiber pulp / Fluff pulp||450|
In Brazil, we trade our shares on the São Paulo Stock Exchange (B3) under the following ticker symbols:
- Units: KLBN11
- Preferred: KLBN4
- Common: KLBN3
In the United States, our shares are listed under the ADR1 program, the securities trade on the over-the-counter – OTC market under the KLBAY ticker symbol.
We sell our products to the domestic market as well as more than 80 countries. We have the flexibility to choose the market which offers us the best commercial conditions, albeit always maintaining our commitment to supply the domestic market.
We have a total area of 542 thousand hectares split between 294 thousand hectares of preserved indigenous forest and 248 thousand hectares of
pine and eucalyptus plantations in the South of Brazil. In this region, the conditions of soil and temperature are ideal for the development and maturing of pine (14 years) and eucalyptus (7 years).
This forestry base allows us to produce long and short fiber and adjust the mix between the two fibers according to the specifications of the different types of manufactured papers.
In addition, we are always striving to modernize our manufacturing units and develop new technologies for reducing their costs and optimizing processes.
With the Puma Project, we are the only Brazilian company to produce three types of fiber: short and long (some of which converted into fluff) through an excellent logistical relationship between forest, industrial units, and port.
We have an area of 542 thousand hectares of which 294 thousand hectares consist of preserved indigenous forest cover and a further 248 thousand put over to pine and eucalyptus plantations as well as being the pioneer in adopting forestry management techniques in a mosaic format — a system that blends pine and eucalyptus plantations with preserved indigenous forest.
In 1998, we were the first in the pulp and paper sector in the southern hemisphere to obtain, FSC® (C001941) – Forest Stewardship Council® certification, attesting to management that conserves natural resources, provides fair labor conditions, and fosters good relations with the community.
We also operate programs for expanding and diversifying income in the communities where we operate by installing forest plantations on rural properties. The activity helps prevent rural depopulation, encourages the use of good environmental and social practices as well as cultivation methods together with the sustainable management of the properties. A total of 19 thousand rural producers have already benefited from these initiatives while more than 160 million seedlings have been distributed.
Since 2014, we have been part of B3’s Corporate Sustainability Index (ISE) and in 2020, we have also been a component of the Dow Jones Sustainability Index (DJSI) in the World Index and the Emerging Market Index portfolios.
We have operations in Brazil (24 plants) and Argentina (1 factory). In Brazil, there are production units operating in the states of São Paulo (Angatuba, Jundiaí, Piracicaba, Paulínia, Suzano, Franco da Rocha), Minas Gerais (Betim), Goiás (Rio Verde), Santa Catarina (Correia Pinto, Itajaí, Lajes and Otacílio Costa), Paraná (Monte Alegre, Ortigueira and Rio Negro), Rio Grande do Sul (São Leopoldo), Bahia (Feira de Santana), Pernambuco (Goiana), Amazonas (Manaus) and Ceará (Horizonte). Klabin has offices in São Paulo, Rio de Janeiro, Pernambuco, Santa Catarina, Rio Grande do Sul, Ceará, Bahia, Minas Gerais and Austria.
In general terms the difference lies in the properties of each fiber. The long fiber (softwood) is a pulp originating from the pine (gymnosperm), the length of which varies from 2 to 5 millimeters. Short fiber (hardwood) comes from the eucalyptus (angiosperm) and on average is 0.5 to 2 millimeters in length. The long fiber pulp has greater mechanical resistance. The short fiber has greater homogeneity and the qualities of heat absorption and opacity.
The fluff pulp comes from the pine’s long fiber. It possesses unique characteristics of softness. Previously only imported, it is now produced domestically thanks to Klabin´s pioneering initiatives.
Klabin produces both types of pulp enabling us to make use of the characteristics of both fibers and in this way, further improve our products.
Due to its characteristics of absorption, short fiber is used to produce writing and printing papers and the sanitary/tissue category (tissue paper, napkins, paper handkerchiefs, among others).
Due to its greater resistance, long fiber is used in the internal layers of paperboard and in the production of packaging as well as cardboard. We are specialists in the production of the latter with a broad range of industrial clients. Fluff pulps are widely used in the market for high quality diapers and sanitary pads.
The Puma II Project involves the expansion of the Puma Unit and constitutes the largest investment in our history. The industrial complex in Ortigueira, state of Paraná, will consist of two stages in an expansion project due for completion by 2023 and involving the building of two innovative paper machines. The project will make Klabin the first company in the world to produce Eukaliner, for which it already has the patent. Together with White Top Kraftliner, the papers require less energy for their production with results up to 20% superior than products currently on the market.
Pulp is said to be integrated when upon being manufactured it is dispatched directly to an adjacent plant for manufacturing products for sale. An example is the production of short fiber pulp which is then delivered to a contiguous plant for producing paperboard.
Pulp described as market pulp is a product which is sold directly to the market. The Puma unit is such an example where part of the pulp output is sold directly to outside clients.
There are two leading types of manufacturing: chemical and mechanical. The chemical method uses only chemical reagents and heat to dissolve the lignin which binds the wood fibers together. The second method uses mechanical energy to breakdown and remove the fibers. Kraft manufacturing uses the first technique. The highlight here is the production of a pulp with the highest resistance, great flexibility, and an efficient system for recovering the chemical reagents and for producing energy.
They are innumerable, but the principal ones are pulp prices, regulatory changes, interruptions/faults in production, labor issues, the currency market, the domestic and international economic scenario and the demand for pulp and paper.
China consumes much more than it produces. Its consumption of paper is 30% of the world total and the country imports substantial amounts of pulp for conversion into packaging. Its principal raw material is recycled paper which is transformed into packaging for its export industries, contrary to Brazil where the raw material is predominantly virgin fiber pulp. The different inputs imply distinct production processes since we use virgin fiber in the manufacture of packaging for food and beverages.
A large proportion of Brazilian companies export their products and have overseas lines of business. Thus, the oscillations in Brazilian currency in relation to the Euro, and principally, to the US Dollar, have a direct effect on the share prices of these companies since such oscillations can translate into higher or lower export revenues.
ADR (American Depositary Receipts) is a certificate of deposit issued by American banks, representing shares of companies with their registered offices outside the United States, facilitating in this way, foreign investment in Klabin S.A. The price of an ADR is usually close to that of the share in its market of origin, adjusted proportionally between the ADR and the original share.
Each ADR corresponds to 2 Units of Klabin (1 ADR = 2 KLBN11).
Corporate Governance may be understood as a compendium of rules and good corporate practices which align the objectives of the company’s managers with those of the interests of the investors. It is conducive to improved administration and monitoring of the management of the company.
The São Paulo Stock Exchange (B3) has created various levels for companies which adopt these practices. Depending on the level of commitment, the company is listed as Level 1, 2 or Novo Mercado. Level 1 reflects compliance with a more restricted set of practices while the Novo Mercado is the most comprehensive set of practices that can be adopted.
Since January 9, 2014, we have adopted B3’s Level 2 Corporate Governance Practices.
For more information on the advantages of being part of Level 2 Corporate Governance, please access B3’s website.
The financial statements provide data for analysis of the past and present situation of a company. They indicate the prospects over the short, medium, and long-term.
Click here to consult our quarterly financial statements.
Our public meeting is held annually and has an audience of analysts and other interested parties. The dates for publishing the reports and the public meeting can be found here.
For each fiscal year, shareholders are granted a minimum dividend of at least 25% (twenty-five per cent) of the adjusted Net Income in accordance with the legislation. However, it is company practice on many occasions, to pay dividends at 20% of the adjusted EBITDA. Our different share classes enjoy the same economic rights and for this reason there is no difference in the amount paid in dividends between them.
Check here to check the dates of the last dividend payments.
The Annual General Meeting (AGM) is an event called by the board of directors of a company to examine, discuss and vote on the financial statements as well as to decide on the allocation of the Net Income for the fiscal year and dividends. It must be held within four months of the end of the fiscal year. The call notice for the AGM must be published at least three times using the company’s official communication channels.
Ex-dividends is the date on which the shares are traded without rights to dividends.
We became components of the ISE in 2014, a further indication of our commitment to sustainable development which seeks integrated and responsible growth, combining profitability, social development, and environmental commitment.
According to the definition of the São Paulo Stock Exchange (B3), “ISE is a tool for comparative analysis of the performance of the companies listed on the Stock Exchange from the point of view of corporate sustainability, based on economic efficiency, environmental equilibrium, social justice and corporate governance. It also serves to expand the understanding of companies and groups committed to sustainability, differentiating them by quality, degree of commitment to sustainable development, equitability, transparency and accountability, nature of the product, as well as corporate performance in the economic-financial, social, environmental dimensions and in terms of climate change”.
This achievement reinforces our company’s historic commitment to sustainable development. For us, sustainability is present along the entire value chain, from our unique forestry base to the relationship with the clients, suppliers, investors and communities in the regions where we operate. We are also pioneers in the pulp and paper sector certifications and in management of the biodiversity. With this additional market recognition, we seek to reinforce our vision of caring and respecting the planet.
We are now a component in the Dow Jones Sustainability Index in two portfolios: the World Index and the Emerging Markets Index. The DJSI showcases companies which are world leaders in terms of economic performance, governance practices and socio-environmental operations.
Klabin is the only Brazilian company in the pulp and paper sector to be a component of the Dow Jones World Sustainability Index, thus enhancing the visibility of its operations in the forest plantation sector of the country..
ERNST & YOUNG Auditores Independentes S.S.
The accounting rules most used in Brazil are the International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles in the United States (US GAAP) and Brazilian Accounting Norms (BR GAAP).
Our consolidated account statements are prepared according to the accounting practices adopted in Brazil which encompass the standards of the Brazilian Securities and Exchange Commission (CVM) and the Pronouncements, Guidance and Interpretation issued by the Accounting Pronouncements Committee (CPC) and are in line with international accounting norms (International Financial Reporting Standard — IFRS), issued by the International Accounting Standard Board (IASB).
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a financial indicator which measures how much a company generates in resources from its operation alone.
It corresponds to net income before tax/social contribution, depreciation and amortization expenses and the financial result. EBITDA does not measure financial performance according to the account practices adopted in Brazil, IFRS or US GAAP, neither should it be considered in isolation or as an alternative to net income, as a measure of operational performance or as an alternative to the operational cash flows or again as a measure of liquidity.
Other companies may calculate EBITDA differently from that of Klabin. EBITDA has various limitations that render it a less than perfect tool for measuring profitability since it does not sweep up certain costs arising from our businesses and which could significantly affect profits such as financial expenses, taxes, depreciation, capital expenses and other related charges.
EBIT (Earnings Before Interest and Taxes) is another financial indicator that measures the result of the operation of a company. It is the difference between operational revenues and expenses. Having calculated EBITDA, subtract depreciation and amortization expenses to obtain EBIT. The EBITDA Margin is the ratio of EBITDA to Net Revenue.
According to the Accounting Pronouncement Committee’s Pronouncement 29 (CPC 29), a biological asset is a live animal or plant. It must be recognized in the account statements when it is under the control of the company for account of past events and can be shown that the company will enjoy the future economic benefits associated with this asset or when the fair value/cost can be measured correctly.
As part of our businesses, we have a vast area of forests which are booked as biological assets. Variations in fair value of our forests (biological assets), on many occasions, give rise to major changes in the net result for the period. As a way of taking these variations into consideration, other businesses in which Klabin is the controller in addition to its participation in Vale do Corisco as well as other sector companies, calculate Adjusted EBITDA to reflect their situation more precisely.
The price list is a reference price for commodities in certain regions of the world. It varies according to supply and demand in the region. It is used as a basis for price negotiations.
For the pulp and paper sector, the analysis of costs through the Cost of Goods Sold (COGS) is now no longer applicable since it covers costs which do not represent cash disbursements such as in the case of depreciation and amortization of the means of production. Thus, the cash cost of production is known as the cost of manufacture comprising all the costs which represent disbursement of cash. This method recognizes all the direct costs involved from manufacture to dispatch from the factory gates. It is how much the company disburses cash to produce.
Represents all products sold during a given period, before discounts to clients, returned products or taxes or other adjustments.
These are the purchases of raw materials and services, including direct and indirect labor, maintenance stoppages, wood, inputs, fuels, depreciation and depletion among other costs.
Gross Profit is the difference between a company’s different forms of invoicing and the Cost of Goods Sold (COGS).
Represents the remaining profit after all costs and expenses (including taxes) have been deducted from total revenue in a given period. If the result is positive, we call it profit and if negative, a loss.
These expenses include typically the payroll for employees involved in the company’s sales and administration, outsourced services, logistics, communications, among others.
Contrary to conventional wisdom, this is not the amount a company needs for its operations. Rather it is the amalgamation of three accounts: Suppliers (how much my suppliers finance me), Accounts Receivable (how much I finance my clients) and Inventories. The first account has a positive impact and the second two, a negative impact on working capital.
The Weighted Average Cost of Capital is the minimum rate required by investors for a company to make an investment. It is calculated as a weighted average of the relative participation of third party and proprietary capital.
This account includes revenues and expenses with interest related to financial transactions, raising of new debt and amortization of past debt.