Corporate Presentation 1st Quarter 2016 Highlights Increase of - - PowerPoint PPT Presentation

Corporate Presentation 1st Quarter 2016

Highlights

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Increase of 80% in volume when compared to the same period in 2015 Colombian subsidiary is presenting excelent

• results. A tender offer was made for the

Company’s delisting Capital funding of R$ 675 million for 6 years with 98% of CDI

Wood: Increase in MDP price in March and MDF in April Deca: price increase in all portfolio starting in April

Exports Tablemac Price Bond

Consolidated Financial Highlights

Consolidated Net Revenues (R$ million) % Foreign Market over Total Net Revenue

2 (in R$ million)

1Q16 4Q15 % 1Q15 % Net Revenue 901,4 955,0

• 5,6% 1.001,5
• 10,0%

Wood Division Brazil 502,9 525,1

• 4,2% 593,2
• 15,2%

Tablemac 105,5 99,2 6,4% 72,2 46,1% Deca 292,9 330,7

• 11,4% 336,0
• 12,8%

Recurring Gross Margin 22,2% 25,2% 29,6%

Consolidated Financial Highlights

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(in R$ million) - Brazil 1Q16 4Q15 Var % 1Q15 Var % Deca Sales Volume (in '000 items) 6.218 6.249

• 0,5%

6.718

• 7,4%

Deca Shipment Volume (in '000 items) 5.422 6.217

• 12,8%

6.692

• 19,0%

Wood Volume (in m3) 532.984 528.331 0,9% 653.127

• 18,4%

Recurrent EBITDA 76,1 157,6

• 51,7%

199,3

• 61,8%

Recurrent EBITDA Margin 9,6% 18,4%

• 21,5%
• Recurrent Net Profit
• 42,1

62,2

• 167,7%

61,5

• 168,5%

Recurrent ROE

• 3,8%

5,4%

• 5,4%
• Colombia

1Q16 4Q15 Var % 1Q15 Var % Wood Volume (in m3) 68.000 67.295 1,0% 57.782 17,7% Recurrent EBITDA 30,2 27,8 8,6% 15,1 100% Recurrent EBITDA Margin 28,6% 28,0%

• 20,9%
• Recurrent Net Profit

12,6 14,0

• 10,4%

7,0 80,9% Consolidated 1Q16 4Q15 Var % 1Q15 Var % Deca Sales Volume (in '000 items) 6.218 6.249

• 0,5%

6.718

• 7,4%

Deca Shipment Volume (in '000 items) 5.422 6.217

• 12,8%

6.692

• 19,0%

Wood Volume (in m3) 600.984 595.626 0,9% 710.909

• 15,5%

Recurrent EBITDA 106,3 185,3

• 42,7%

214,4

• 50,4%

Recurrent EBITDA Margin 11,8% 19,4%

• 21,4%
• Recurrent Net Profit
• 29,6

76,2

• 138,8%

68,5

• 143,2%

Recurrent ROE

• 2,6%

6,5%

• 5,9%

Brazil’s Wood Panel Market

In ‘000 m3

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MDF Market MDP Markey

Annual Effective Capacity: 5.170 Annual Effective Capacity: 4.030

• 8,9%

13,4%

• 8,5%
• 14,9%
• 1,6%
• 14,9%

Operational Highlights

Wood

Installed Capacity and Occupancy Rate in the Quarter* Shipments (in ‘000 m3)

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* Considering Itapetininga’s capacity for the calculation +0,9%

• 15,5%

Financial Highlights

Wood

Net Revenue (R$ million) and Gross Margin (%) Recuring EBITDA (R$ million) and EBITDA Margin (%)

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• 2,5%

28,1%

• 8,6%
• 48,8%
• 54,1%

23,5% 20,2% 23,1% 22,1% 11,6%

Building Material Industry

Source: Brazilian Building Material Industry Association

ABRAMAT INDEX – INTERNAL MARKET

Measures growth in revenue of building materials in the internal market, relative performance to the same period in the previous year

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Operational Highlights

Installed Capacity and Occupancy Rate in the Quarter Shipments (in ‘000 items)

Deca

**

• 12,8%
• 19,0%

* For 1Q16 the sales volume was of 6.2 million items, with a great concentration in the end of the month of March, that was shipped in April ( 800k items)

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* Includes 536k items from Corona ** Includes 233k items from Corona

Financial Highlights

Deca

Net Revenue (R$ million) and Gross Margin (%) Recuring EBITDA (R$ million) and EBITDA Margin (%)

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32,5% 28,5% 26,4% 18,0% 14,3% 12,2%

• 11,4%
• 12,8%
• 24,8%
• 41,0%

For 1Q16 the sales volume was of 6.2 million items, with a great concentration in the end of the month of March, that was shipped in April ( 800k items) Corresponding to R$ 36 million of Net Revenue and an additional EBITDA of R$ 11.2million

Consolidated CAPEX and Main Investments

In R$ million

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3.719,6

635,8 832,2 601,5 607,9 556,2 486,0

Main Projetcs of 2016

Delisting of Colombian subsidiary Tablemac

Indebtedness

Amortization Schedule (R$ M) Debt Origin(%)

* 100% Hedge

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Main actions for the year of 2016

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Duratex Management System (Falconi) and Zero Based Budget Optimization of operational processes (logistics, sales and inventory management) Increase in exports CAPEX restricted to maintenance Capacity adjusted to current market

Internal Agenda

Management

External Market CAPEX

Capacity Utilization

Disclaimer

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The information contained herein was prepared by Duratex S.A. and does not constitute an offering material, to subscribe for or purchase any of the Company’s securities. This material also brings general information about Duratex S.A. and its markets. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented herein. The Company can give no assurance that expectations disclosed in this presentation will be confirmed. April 2016

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