Klabin Sa S/Adr

Welcome to clubbing's conference call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session when instructions to participate will be provided. We kindly ask that for the benefit of time, each analyst asks a maximum of two questions. Should you require assistance during the call, please dial star zero. As a reminder, this conference call is being recorded and being broadcast simultaneously via webcast, which can be accessed through Clubbing's Investor Relations website, where the presentation is available. Forward-looking statements eventually made during this conference call in connection with Clubbing's business outlook, projections, Operating and financial targets and potential growth should be understood as merely forecasts based on the company's management expectations in relation to the future of lobbying. Such expectations are highly dependent on market conditions, on Brazil's overall economic performance, and on the industry and international market behavior, and therefore, are subject to change. Present with us today are Mr. Cristiano Teixeira, Joe Marcos Ivo, Chief Financial Officer and Investor Relations Officer, as well as company officers. Initially, Mr. Teixeira and Mr. Ivo will comment on the company's performance during the first quarter of 2023. After that, the officers will be available to answer any questions that you may have. Now I will turn the call over to Clubbing's CEO, Mr. Teixeira.

Go ahead.

Welcome, everyone, to Clubbing's conference call to discuss the first quarter of 2023 earnings results. facing a challenging market scenario with macroeconomic and geopolitical uncertainties that led to loss of profitability in the market due to falling product prices and cost inflation for producers in the pulp and paper sector, having achieved EBITDA of 1.9 billion barrels, up 13% compared to the same quarter last year and 2% compared to the fourth quarter of 2022. which reinforces our dynamism to face the most different scenarios in Brazil and globally. In the pulp business, clubbing differential in having long fiber afterwards proved once again to be strategic and efficient in diversifying our product portfolio. having privileges, long-term contracts, and diversification of the geographic mix, offering different solutions such as flow, bond, and short-term. This strategic positioning ensured solid margins and resilience in the business result. In the context of a weakened global market, our packaging and container board for businesses such as craft liner, recycled paper, and spec craft brought security and ability to the results, showing the importance of our business model. The model was reinforced with the startup of the new corrugator in Horizonte, state of Ceará, in addition to a new line of bags in Lages, state of Santa Catarina. In the consumer division, the consolidation of sales of paper machine 28 through long term contract and the selection of the portfolio for white coated board. brings good expectations for a market that remained heated in the first quarter, especially in the beverage segment, such as beer, milk, and liquid food, which translated into improved crop stability in the quarter. I now turn the floor to Marcos Ivo, who will bring the financial details about the first quarter. Thank you, Cristiano. Good morning, everyone, and thank you for joining our conference call. In the first quarter of 2023, we delivered consistent results, reaffirming the strength of Clubbing's business model. Among the highlights of the period, I would like to mention three. Net revenue of 4.8 billion BRLs in the quarter, up 9% year on year. Adjusted EBITDA of 1.9 billion BRLs, an increase of 13% over Q1 2022. and return on capital invested measured by ROIC of 19.4% in the last 12 months. On page four, sales volume in the quarter was down 2% compared to the same quarter of 2022. This dropped and mainly from lower demand for craft liner in the foreign market. net revenue in the period was 4.8 billion brls up nine percent year on year this increase is explained by price adjustments implemented over the past quarters which more than offset the reduction in sales volume in the appreciation of the brazilian currency against the dollar with this I just said EBITDA totaled 1,942,000,000 BRLs benefiting from the growth in net revenue, which more than offset the increase in cash cost. Please turn to slide five. Net revenue for the pulp business was 1.7 billion BRLs in Q1, 2023. Highlighting the period was once again the flexible sales mix between geographies and the portfolio with three types of fiber, short fiber, hardwood, non-fiber, softwood, and fluff, which positively impacted the average price in the period and net revenue. The cash cost of pulp production was 1,355 BRLs per ton in the quarter, same level quarter on quarter. leveraged by net revenue. The pulp segment suggested EBITDA reached 945 million BRLs in the quarter. On page six, in the coated board segment, which continues with healthy demand, production volume was 172,000 tons in the quarter. Net revenue per ton or net price per ton of coated board was 5,621 million bureaus in Q1 2023, up 14% and 8% year-on-year and quarter-on-quarter respectively. Driven by the price adjustment, net revenue of coated boards reached 965 million bureaus in Q1 2023, an increase of 11% year-on-year.