FACT SHEET - Duratex SHEET 4Q17 CORPORATE GOVERNANCE Email for addressing matters related to Corporate Governance to senior management: [email protected] Shares

FACT SHEET4Q17

CORPORATE GOVERNANCE

Email for addressing matters related to Corporate Governance to senior management: [email protected]

Shares listed on the Novo Mercado of B3; Only ordinary shares are in circulation, that is, each share

confers the right to one vote at the General Shareholder Meetings;

100% Tag-Along rights for the shares; 3 independent members on the Senior Board of

Directors; Advisory Committees to the Board: People, Nomination

and Governance, Sustainability, Auditing and Risk Management, Trading and Disclosure, and Evaluation of Transactions with Related Parties;

Dividend policy requiring a minimum distribution of 30% of adjusted net earnings;

Policy in force for the disclosure of Material Events and Facts in the Trading of Securities;

Compliance with the ABRASCA Code for Self-regulation and Good Practices in Publicly Traded Companies;

Brokers that cover the company: Bradesco BBI, BTG Pactual, Citibank, Empiricus Research, HSBC, JP Morgan, Merrill Lynch, Morgan Stanley, Nau Securities, Safra, Santander.

Duratex investor relationsInvestor Relations Officer: Carlos Henrique Pinto Haddad Executive Manager: Guilherme Setubal Souza e Silva [email protected]

Teleconference/Webcast:February 6th,2018, tuesday Portuguese: Time: 10:00 am (BR time; 7:00 a.m. NYT) February 6th, 2018, tuesday English: Time: 11:00 am (BR time; 8:00 a.m. NYT)

To connect: Participants in Brazi: +55 11 3193-1001 or +55 11 2820-4001 Participants in USA: Toll free: +1 786 924-6977 or +1 888 700-0802 (English only) Access code: Duratex Web conference: www.duratex.com.br/ri

MARKET CAP (12/31/2017)BRL 6,341.6 million

CLOSING SHARE PRICE ON 12/31/2017BRL 9.20

NUMBER OF SHARES IN ISSUE ATE THE END OF DECEMBER691,784,501

TREASURY SHARES 2,478,659

FREE FLOAT40%

For those unable to accompany the conference calls live, full audio playback will be available via the Company’s website (www.duratex.com.br) or via telephone (55-11) 3193-1012 or (55-11) 2820-4012 for both Portuguese and English versions, the access codes being, Portuguese: 5875155# and English: 3580903#.

2Duratex Fact Sheet 4Q17

BRL '000 4Q17 4Q16 % 3Q17 % 2017 2016 %

HIGHLIGHTS

Volume shipped Deca (‘000 items) 6,224 5,944 4.7% 6,771 -8.1% 26,053 24,590 5.9%

Volume shipped Deca (‘000 m2) 531,463 265,287 - - - 531,463 - -

Volume shipped wood (m3) 671,731 638,596 5.2% 614,845 9.3% 2,399,134 2,433,246 -1.4%

Consolidated net revenue 1,102,632 1,028,665 7.2% 1,019,521 8.2% 3,990,866 3,909,760 2.1%

Gross profit 369,562 - 39.3% 296,809 24.5% 1,143,769 1,009,132 13.3%

Gross margin 33.5% 25.8% - 29.1% 28.7% 25.8%

EBITDA according to CVM No, 527/12(1) 279,879 289,294 -3.3% 295,402 -5.3% 986,788 901,184 9.5%

EBITDA Margin CVM No, 527/12 25.4% 28.1% 29.0% 24.7% 23.0%

Adjustments for non-cash events (93,915) (44,041) 113.2% (43,709) 114.9% (220,191) (161,090) 36.7%

Non-recurring events 42,906 (28,146) (46,821) -191.6% (6,587) (59,133)

Recurring and adjusted EBITDA(2) 228,870 217,107 5.4% 204,872 11.7% 760,010 680,961 11.6%

Recurring and adjusted EBITDA margin 20.8% 21.1% - 20.1% - 19.0% 17.4% -

Net income 84,618 25,207 235.7% 83,144 1.8% 185,015 26,229 605.4%

Recurring net income 112,936 6,463 1647.4% 52,242 116.2% 180,668 (12,966) -1493.4%

Recurring net margin 10.2% 0.6% - 5.1% 4.5% -0.3% -

INDICATORS

Current ratio(3) 1.95 2.69 -27.4% 2.08 -6.1% 1.95 2.69 -27.4%

Net debt(4) 2,100,460 2,040,681 2.9% 2,069,537 1.5% 2,100,460 2,040,681 2.9%

Net debt/EBITDA LTM(5) 2.76 2.997 -7.8% 2.77 -0.1% 2.76 2.997 -7.8%

Average net equity 4,697,209 4,570,741 2.8% 4,637,743 1.3% 4,625,991 4,563,840 1.4%

ROE (6) 7.2% 2.2% - 7.2% - 4.0% 0.6% -

Recurring ROE 9.6% 0.6% - 4.5% - 3.9% -0.3% -

SHARES

Basic net earning per share (BR)(7) 0.1227 0.0368 233.4% 0.1205 1.8% 0.2682 0.0346 675.1%

Closing share price (BRL) 9.20 6.80 35.3% 9.47 -2.9% 9.20 6.80 35.3%

Net equity per share (BRL) 6.84 6.63 3.2% 6.79 0.8% 6.84 6.63 3.2%

Shares held in treasury (shares) 2,478,659 2,485,759 -0.3% 2,478,659 0.0% 2,478,659 2,485,759 -0.3%

Market Value (BRL1,000) 6,341,614 4,687,231 35.3% 6,527,726 -2.9% 6,341,614 4,687,231 35.3%

Consolidated Financial Results

(1) EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization): Measure of operational performance in accordance with CVM Instruction 527/12. (2) EBITDA adjusted for non-cash events arising from variation in the fair value of biological assets and combination of businesses, in addition to

extraordinary events. (3) Current liquidity: Current Assets Divided by Current Liabilities. Indicates the amount available in BRL to cover each BRL of short-term obligations.(4) Net Indebtedness: Total Financial Debt (–) Cash balance.(5) Financial leverage calculated on the rolling EBITDA over the last 12 months, adjusted for events of a purely accounting and non-cash nature.(6) ROE (Return on Equity): measure of performance obtained by taking the annualized Net Earnings over the period, annualized, and dividing by

Average Net Equity(7) Net earnings per share is calculated by dividing the earnings attributable to the company’s shareholders by the average weighted number of

ordinary shares issued during the period, excluding the ordinary shares held by the Treasury.


Market & Business Scenario

Strategic Management & Investiment

The fourth quarter of 2017 has brought the consolidation of economic recovery in Brazil, reflecting positively on our operations. Inflation below the target’s lower band, along with the downward path of interest rates and the return of credit and consumption have provided the necessary foundations for the recovery of activity in the Wood and Deca divisions. One of the propellers behind the return of activity in our business has been the recovery of demand, driven mainly by an increase in consumption by part of Brazilian families which, after undergoing a tough period of deleveraging, have now started to take credit once again. The Brazilian Institute for Geography and Statistics (IBGE) has registered a net increase of 9.8% in the consumption of furniture and electric appliances up to November, after two consecutive downturns in 2015 and 2016.

In the wood panel segment, the Brazilian Institute of Trees (Instituto Brasileiro de Árvores - IBÁ) has registered an increase in domestic demand of 13% in the fourth quarter and 4% in the year. The demand in the

foreign market has increased 21% in the year and 6% in the quarter. The demand for wood panels has grown 6% in the year when considering both domestic and foreign markets.

The Brazilian Institute of Construction Materials (Associação Brasileira da Indústria de Materiais de Construção - ABRAMAT), which is responsible for measuring evolution in the construction sector, points towards a fall in revenues of 4% in the year, in line with their projections, and a decrease of 5.7% in employment within the industry. The institute estimates a discreet growth of 1.5% in 2018, which is in line with our assumption of gradual recovery in demand.

The Brazilian economy is expected to stabilize in 2018, and GDP to grow at 2.66%, according to the average of estimates in the FOCUS report published by the Central Bank on 01/26/2018. We remain cautiously optimistic with the recovery of our sectors of activity which have been negatively impacted by the political and economic crises of the past few years.

Total investments closed the year at BRL 82.6 million within the last three months of the year, of which BRL 39 million have been directed to forest OPEX and BRL 43.6 million to maintenance and projects. In 2017, investments have represented BRL 365.9 million, below our original estimate of BRL 420 million. This result illustrates Duratex’s commitment to maximizing cash generation and financial deleveraging.

The results of recently acquired Ceusa, a reference in the ceramic tile sector, have been consolidated into Duratex in October, after CADE’s- Conselho Administrativo de Defesa Econômica approval. As previously disclosed, Ceusa was acquired for BRL 280 million and marked the Duratex’s entrance into the ceramic tile sector, thus complimenting the Company’s solution portfolio. We expect to integrate operations and to start capturing synergies, thus further leveraging the businesses’ returns, in 2018.

One of the highlights of 2017 was the consolidation of the Duratex Management System (Sistema de Gestão Duratex – SGD), encompassing all of the company’s efforts in terms of gains in efficiency, productivity, cost management and asset returns. An office with a dedicated team was created specifically for the management and dissemination of

this project, besides the structuring of a methodology to measure progress. The P100, an initiative promoted in the second quarter with the purpose of cutting costs and offsetting the slow economic recovery, closed the year with a saving of BRL 76 million. Although this result is lower than the one originally intended, it is reflective of the Company’s commitment to a more effective cost management.

The Company has reached an important landmark in its journey towards cultural transformation, where all leaderships have been capacitated. It has been two years since we embarked on this transformation, and one can already take notice of a more rejuvenated and innovative company, ever committed to the return of its operations. In addition, we completed the assessment of Great Place to Work’s, and were recognized for our good environment for employees, in their opinion. Regarding the next periods, the commitment and accountability of everyone, especially the leadership, is going to be fundamental in encouraging the development of teams in terms of performance and behavior, thus ensuring Duratex’s prominence in its sectors of activity and as an employer.


We have disclosed on January 31, 2018, as a subsequent event, the sale of installations and machinery dedicated to the production of Thin Wood Fiber Boards (hardboard) located in the city of Botucatu. The evolution of the wood panel market in Brazil, and the decision to resume activities in the Itapetininga unit, has made these lines, which are directed mainly towards exports, small within Duratex’s portfolio of solutions. This product has therefore lost relevance within the Company’s strategy that is being redirected towards products with a larger added value.

The transaction refers to the swap of installation and equipment for a production farm located in the city of Capão Bonito, in the State of São Paulo, strategically closer to our unit in Itapetininga, at the base amount of BRL 60 million. The remaining lines of Thick and Thin Wood Fiber Board (MDF and HDF) continue to be operated as usual by Duratex.

As legally required, this operation is being forwarded to CADE and will be finalized as soon as approval is received. The management of these lines remain with Duratex in the regular production standards for the time being.

Being the search for higher returns and greater efficiency central objective in our strategy, we have announced on February 5th, 2018, the sale of land and forests located in the the state of São Paulo to Suzano Papel e Celulose. The evolution of forest management and technology within the last six decades has allowed the Duratex to increase its productivity, and therefore, to hold a volume of land

and forests that exceeds the current and projected needs of its wood panel factories. In line with the permanent search for better return on its assets, Duratex has opted for the sale of such exceeding assets.

The transaction foresees the sale of land and forests in the the central region of the state of São Paulo, and is structured in two parts, being:

i) Acquisition of about 9,500 (nine thousand five hundred) hectares of rural property and forests in the total value of BRL 308.1 million.

(ii) Exclusive option for Suzano to purchase an additional 20,000 (twenty thousand) hectares of land and forests in the total amount of BRL 749.4 million, to be exercised until 02/07/2018.

This operation is subject to the conditions usual to this type of transaction and to approval by the Conselho Administrativo de Defesa Econômica - CADE.

The values received will be directed towards the significant reduction of net debt, thus reducing financial costs and positioning the company at a strategic level of competitiveness

These movements take place in the direction of increasing productivity, efficiency and of improving the use of our assets, and thus contribute to a higher return on operations.

Consolidated FinancialHighlights (IFRS)

NET REVENUEConsolidated net revenue for the quarter has shown an increase of 7.2% in comparison to the same period of 2016, totaling BRL 1,102.6 million, due mostly to larger volume of sales, the successful implementation of price increases, and the incorporation of Ceusa’s results. Of this, BRL 190.7 million come from the foreign market through our exports and operations in Duratex Colombia. Foreign revenue, therefore, represents 17.3% of total revenue.

BRL '000 - consolidated 4Q17 4Q16 % 3Q17 % 2017 2016 %

Net revenue 1,102,632 1,028,665 7.2% 1,019,521 8.2% 3,990,866 3,909,760 2.1%

Domestic market 911,888 841,765 8.3% 843,921 8.1% 3,315,400 3,159,474 4.9%

Foreign Market 190,744 186,900 2.1% 175,600 8.6% 675,466 750,286 -10.0%

Duratex Colombia 98,026 88,654 10.6% 86,896 12.8% 331,094 334,911 -1.1%

Exports from Brazil 92,718 98,246 -5.6% 88,704 4.5% 344,372 415,375 -17.1%


Net Revenues by area of operation (in % in 4Q17):

37.2

62.8DECA DIVISIONWOOD DIVISION

COST OF GOODS SOLDThe Cash Cost, that is, the Cost of Goods Sold net of Depreciation, Amortization and Exhaustion, and of the net variation in the Fair Value of Biological Assets, closed the fourth quarter at BRL 695.4 million. This result represents an increase of 9.8% in comparison to the same period of 2016; slightly above the increase in net revenue. A mild deterioration of the mix in both business divisions and the hike in the cost of commodities have contributed to this increase, which was partially offset by the cost-cutting projects.

The Duratex Management System (SGD) is the Company’s main tool for increasing the efficiency and profitability of operations, and closed the year with a cost cut of BRL 76 million. Excellency in management remains one of the fundamental pillars in Duratex’s strategy, and aims to achieve short term objectives designed to recover the business’ returns and at preparing the Company for new cycles of growth.

BRL‘000 – consolidated 4Q17 4Q16 % 3Q17 % 2017 2016 %

Cash COGS (695,393) (633,043) 9.8% (628,298) 10.7% (2,540,874) (2,513,754) 1.1%

Variation in fair value of biological assets (1) 93,603 43,135 117.0% 40,027 133.8% 214,933 157,973 36.1%

Depletion tranche of biological assets (31,284) (64,596) -51.6% (30,372) 3.0% (123,118) (142,297) -13.5%

Depreciation, amortization and depletion (99,996) (108,874) -8.2% (104,069) -3.9% (398,038) (402,550) -1.1%

Gross profit 369,562 265,287 39.3% 296,809 24.5% 1,143,769 1,009,132 13.3%

Gross margin 33.5% 25.8% - 29.1% - 28.7% 25.8% -

BRL‘000 – ex Duratex Colombia 4Q17 4Q16 % 3Q17 % 2017 2016 %

Cash COGS (639,579) (576,186) 11.0% (575,609) 11.1% (2,335,234) (2,270,441) 2.9%

Variation in fair value of biological assets (1) 93,483 42,834 118.2% 39,470 136.8% 213,895 157,744 35.6%

Depletion tranche of biological assets (31,284) (64,596) -51.6% (30,372) 3.0% (123,118) (142,297) -13.5%

Depreciation. amortization and depletion (96,759) (104,655) -7.5% (100,174) -3.4% (383,274) (384,175) -0.2%

Gross profit 335,775 227,816 47.4% 264,132 27.1% 1,018,763 855,216 19.1%

Gross margin 33.2% 24.5% - 28.4% - 27.6% 24.5% -


Net Revenues – ex Duratex Colombia(in BRL million)

548.9549.5591.5534.5573.1 576.2 582.2 539.2

Cash Cost (in BRL million) and Gross Margin (in %) - ex Duratex Colombia

Cash Cost Gross Margin

Cost of Goods Sold – Deca Division(in % in 4Q17)

32

11

9

4

4

40Other materials

ElectricityLabor

Fuel

Metals

Depreciation & Amortization

Cost of Goods Sold – Wood Division(in % in 4Q17)

239

17 11

1512

103

Other materials

Wood*Paper

Electricity

Resin

Depreciation & Amortization

Labor

Fuel

* Includes exhaustion of the amount invested related to the cost of wood.

560.8 584.5

26.926.0

20.1

23.9

26.626.629.0

24.523.0

26.1

28.433.2

575.6 639.6 872.2895.9795.9855.8947.9881.5929.2

1Q15 1Q153Q15 3Q151Q16 1Q163Q16 3Q162Q15 2Q154Q15 4Q152Q16 2Q164Q16 4Q161Q17 1Q172Q17 2Q173Q17 3Q174Q17 4Q17

930.4 868.1 837.6 930.8 1,010.0


3Q164Q153Q152Q151Q15 4Q16 1Q17 2Q17 3Q17 4Q171Q16 2Q16

SELLING EXPENSESSelling expenses closed the quarter at BRL 172.9 million, equivalent to 12.4% of the consolidated net revenue. In the year, these expenses totaled BRL 638.5 million, representing 16.0% of net revenue.

We have verified in 2017 the increase of certain variables that had a direct impact on Selling Expenses. Amongst them, there was the increase in Freight Costs, especially with regards to exports. There was also an increase in branding investments, through means of advertising and participation in fairs. These investments are in line with the strategy of commercial positioning of our solution portfolio, and of straightening the proximity with the final customer. Despite slightly higher expenses in 2017, we consider these investments to be instrumental to the development of our activities in products and solutions.

Aiming at a larger efficiency within the scope of SGD, we constantly revise the Company’s logistic model in order to guarantee competitive costs and differentiated services for our clients. This balance of high level of service with cost efficiency is one of the Company’s top internal priorities.


Selling expenses (172,905) (154,070) 12.2% (165,861) 4.2% (638,521) (591,429) 8.0%

Percentage of net revenue 15.7% 15.0% 16.3% 16.0% 15.1% -


General and administrative expenses (37,117) (34,318) 8.2% (36,257) 2.4% (143,308) (141,552) 1.2%

Percentage of net revenue 3.4% 3.3% - 3.6% - 3.6% 3.6% -

Sales Expenses (in BRL million) and % in Relation to Net Revenues – ex Duratex Colombia

15.915.415.3

16.0

15.014.6

13.6

15.315.8

17.216.7 16.1 GENERAL & ADMINISTRATIVE EXPENSES

General and Administrative expenses have totaled BRL 37.1 million in the fourth quarter. These expenses closed the year at BRL 143.3 million, representing 3.6% of net revenue, in line with the results of 2016.

Here, we would like to highlight our commitment to SGD, which holds turning our operations leaner and more efficient as a top priority. We have been able to maintain our General and Administrative Expenses stable in a year of transformation and investments, which proves the efficiency of our management system.

138.3137.0141.8128.2126.1 142.3 137.3 143.8 155.7 162.9121.8 138.3

Cash Cost Gross Margin


EBITDA The table below shows a reconciliation of EBITDA, in line with the system set out in CVM Instruction No. 527/12. Based on this result, and as a way of better expressing the Company's operational cash generation, two adjustments have been made: the exclusion of events of

a purely accounting and non-cash nature from EBITDA, and the disregarding of extraordinary events. Thus, in keeping with best practices, the following table shows the calculation of the indicator which best reflects the Company's cash generation.

EBITDA reconciliation in BRL‘000 – consolidated

4Q17 4Q16 % 3Q17 % 2017 2016 %

Net income 84,618 25,207 235.7% 83,144 1.8% 185,015 26,229 605.4%

Income tax and social contribution (4,082) 1,910 -313.7% 37,565 -110.9% 30,213 (8,386) -460.3%

Net financial result 54,285 78,801 -31.1% 29,910 81.5% 206,113 299,272 -31.1%

EBIT 134,821 105,918 27.3% 150,619 -10.5% 421,341 317,115 32.9%

Depreciation. amortization and depletion

113,774 118,780 -4.2% 114,411 -0.6% 442,329 441,772 0.1%

Depletion tranche of biological assets

31,284 64,596 -51.6% 30,372 3.0% 123,118 142,297 -13.5%

EBITDA according to CVM No. 527/12 279,879 289,294 -3.3% 295,402 -5.3% 986,788 901,184 9.5%

EBITDA margin CVM No. 527/12 25.4% 28.1% - 29.0% - 24.7% 23.0% -

Change in fair value of biological assets

(93,603) (43,135) 117.0% (40,027) 133.8% (214,933) (157,973) 36.1%

Employee benefit (312) (906) -65.6% (3,682) -91.5% (5,258) (3,117) 68.7%

Extraordinary events(1) 42,906 (28,146) - (46,821) -191.6% (6,587) (59,133) -88.9%

Recurring and adjusted EBITDA 228,870 217,107 5.4% 204,872 11.7% 760,010 680,961 11.6%


Despite the challenging scenario, 2017 marked the retake of operations, and consequentially, the improvement of returns. Although the increase in earnings was discreet, initiatives implemented in our management under the Duratex Management System, have positioned the Company for an advance in returns. The expansion of the EBITDA was largely a results of these initiatives.

The adjusted and recurring EBITDA of 4Q17 was BRL 228.9 million, above both periods of comparison.The EBITDA margin closed the quarter at 20,8% This index represented BRL 760.0 million in the year, with a margin of 19.0%

Extraordinary events were removed from the adjusted and recurring EBITDA. The subsidiary Duratex Florestal sold land which lead to an extraordinary result of BRL 7.9 million. The wood panel division executed a provision for non-recovered assets which are no longer central to the Company’s strategy in the amount of BRL 50.8 million.

Origin of Adjusted Recurring EBITDA(in % in 4Q17)

31.2

68.8

DECA DIVISIONWOOD DIVISION

(1) Extraordinary events, including: 3Q16: (i) results from the sale of lands from the subsidiary Duratex Florestal (-) BRL 30,814 K; (ii) devolution of excess from the private pension plan (-) BRL 7,752 K; (iii) non-recurring employee restitution (+) BRL 7,579 K; 4Q16: (i) results from the sale of lands from the subsidiary Duratex (-) BRL 30,939 K; (ii) results from the sale of furniture line pertaining to da Duratex Colômbia (+) BRL 2,793 K; 1Q17: (i) results from the sale of lands from the subsidiary Duratex Florestal (-) BRL 2,672 K; 3Q17: (i) results from the sale of lands from the subsidiary Duratex Florestal (-) BRL 46,821 K; 4Q17: (i) results from the sale of lands from the subsidiary Duratex Florestal (-) BRL 7,890 K; provision for non-recovered assets BRL (+) 50,796.

Although these initiatives did not impact our result, they are part of the Company’s strategy of optimizing its asset base in order to improve cash generation and increase returns on all its operations.


NET EARNINGSConsolidated net earnings for 4Q17 was BRL 84.6 million, which represents a ROE of 9.6%. This result was affected by extraordinary events, with the positive impact of BRL 5.2 million due to the result of sale of land and the negative impact of BRL 33.5 due to provisions for non-recovered assets which were no longer central to the Company’s strategy.

The earnings improvement in 2017 reflects mainly the cost savings resulting from the Duratex Management System (SGD), the price hikes implemented and a more favorable financial result due to the fall of interest rates and the liability management.


Net earnings 84,618 25,207 235.7% 83,144 1.8% 185,015 26,229 605.4%

Extraordinary events 28,318 (18,744) -251.1% (30,902) -191.6% (4,347) (39,195) -88.9%

Recurring net earning 112,936 6,463 1647.4% 52,242 116.2% 180,668 (12,966) -1493.4%

ROE 7.2% 2.2% - 7.2% - 4.0% 0.6% -

Recurrent ROE 9.6% 0.6% - 4.5% - 3.9% -0.3% -

(1) Net effect of extraordinary events mentioned previously, including 3Q16: (i) result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 20,337 K; (ii) devolution of excess from the private pension plan (-) BRL 5.116 K; (iii) Non-recurring employee restitution (+) BRL 5, 002 K; 4Q16: (i) result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 20,420 K; (ii) results from the sale of furniture line pertaining to da Duratex Colômbia (+) BRL 1,676 K; 1Q17: (i) result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 1,763 K; 3Q17: (i) result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 30,902 K; 4T17: (i) result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 5,207 K; provision for non-recovered assets BRL (+) 33,525.

ADDED VALUEThe Added Value for the quarter totaled BRL 479.6m. Of this amount, BRL 133.6m, equivalent to 27.9% of the total Value Added, was destined for the federal, state and municipal governments in the form of taxes and contributions.

Distribution of Value Added in 4Q17

37.6

16.9

17.6

27.9Labor remuneration

Shareholder remunerationDebtholders remunerationGovernment remuneration

16,5


INDEBTEDNESS The combination of a better operating cash generation, lower interest rates, liability management and a better management of our assets resulted in a deleveraging process over the course of 2017.

The net debt at the end of the year was BRL 2,100.5 million, which represents a leverage ratio of 2.76%. Although we have done important investments in the year, such as Ceusa’s acquisition, we noticed a reduction of this ratio. This reduction was a commitment since the beginning of the year.

Reducing the financial leverage continues to be one of our main priorities for 2018 and the foundation of our long-term strategy. The sale of assets, informed in a subsequent event, will have a material impact in this process over the next quarters, since the amounts received are going to be used mostly to reduce net debt and improve our financial performance.

FINANCIAL REVENUES AND EXPENSES

BRL‘000 4Q17 4Q16 % 3Q17 % 2017 2016 %

Financial revenues 27,600 28,674 -3.7% 49,163 -43.9% 163,031 147,964 10.2%

Financial expenses (81,885) (107,475) -23.8% (79,073) 3.6% (369,144) (447,236) -17.5%

Net financial result (54,285) (78,801) -31.1% (29,910) 81.5% (206,113) (299,272) -31.1%

Amortization Schedule (in BRL millions)

702.4

2022 &beyond

81.9

2021

899.7

2020

726.0

2019

764.8

2018

DIVIDENDSDuratex’s dividend policy requires a minimum dividend distribution of 30% of the adjusted net earnings. According to the proposal addressed by the Board, it was considered BRL 60.8 million as dividends, as interest on equity, equivalent to BRL 0.08826330461 per share.

BRL‘000 31/12/17 31/12/16 Var BRL 30/09/17 Var BRL

Short-Term debt 764,824 681,110 83,714 827,234 (62,410)

Long-Term debt 2,410,000 2,775,931 (365,931) 2,209,991 200,009

Total debt 3,174,824 3,457,041 (282,217) 3,037,225 137,599

Cash and equivalent 1,074,364 1,416,360 (341,996) 918,208 156,156

Financial Investments - - - 49,480 (49,480)

Net debt 2,100,460 2,040,681 59,779 2,069,537 30,923

Net debt/Recurring and adjusted EBITDA 2.76 2.997 - 2.77

Net debt/Equity (in %) 44.5% 44.6% - 44.2% -


Gross Indebtedness as of the end of December, 2017 (in BRL million)

764,8

2.410.0

Short-termLong-term

Origin of Debt (%)

81.0

19.0

Local currencyForeign currency (100% hedged to BRL)

OperationsWood Division

HIGHTLIGHTS 4Q17 4Q16 % 3Q17 % 2017 2016 %

SHIPMENTS (IN M3)

STANDARD 419,948 373,698 12.4% 360,064 16.6% 1,388,355 1,381,624 0.5%

COATED 251,783 264,898 -5.0% 254,781 -1.2% 1,010,779 1,051,622 -3.9%

TOTAL 671,731 638,596 5.2% 614,845 9.3% 2,399,134 2,433,246 -1.4%

FINANCIAL HIGHLIGHTS (BRL '000)

NET REVENUE 692,122 692,011 0.0% 651,148 6.3% 2,515,732 2,594,548 -3.0%

DOMESTIC MARKET 524,511 521,286 0.6% 489,220 7.2% 1,902,306 1,902,396 0.0%

EXPORT MARKET 167,611 170,725 -1.8% 161,928 3.5% 613,426 692,152 -11.4%

Net unit revenue (BRL/m3 shipped) 1030.36 1083.64 -4.9% 1059.04 -2.7% 1048.60 1066.29 -1.7%

Unit cash cost (BRL/m3 shipped) (629.31) (649.63) -3.1% (644.27) -2.3% (671.00) (680.64) -1.4%

Gross profit 257,133 170,303 51.0% 185,327 38.7% 698,265 645,748 8.1%

Gross margin 37.2% 24.6% - 28.5% - 27.8% 24.9% -

Sales expenses (101,798) (90,667) 12.3% (96,584) 5.4% (373,383) (360,558) 3.6%

General and administrative expenses (18,320) (18,538) -1.2% (17,711) 3.4% (73,597) (77,571) -5.1%

Operating profit before financial results 95,296 89,038 7.0% 124,197 -23.3% 274,663 247,755 10.9%

Depreciation. amortization and depletion 81,579 93,509 -12.8% 86,315 -5.5% 327,091 337,087 -3.0%

Depletion tranche of biological assets 31,284 64,596 -51.6% 30,372 3.0% 123,118 142,297 -13.5%

EBITDA according to CVM No. 527/12(1) 208,159 247,143 -15.8% 240,884 -13.6% 724,872 727,139 -0.3%

EBITDA margin according to CVM No. 527/12

30.1% 35.7% - 37.0% - 28.8% 28.0% -

Variation in fair value of biological assets (93,603) (43,135) 117.0% (40,027) 133.8% (214,933) (157,973) 36.1%

Employee benefits (63) (626) -89.9% (1,632) -96.1% (1,297) (2,675) -51.5%

Extraordinary event(2) 42,906 (28,146) -252.4% (46,821) -191.6% (6,587) (62,269) -89.4%

Recurring and adjusted EBITDA 157,399 175,236 -10.2% 152,404 3.3% 502,055 504,222 -0.4%


(1) EBITDA (Earnings Before Interest,Taxes, Depreciation and Amortization): Measure of operational performance according to Instruction CVM527/12.(2) Extraordinary events, including: 3Q16: (i) result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 30,814 K ; (ii) devolution of

excess from the private pension plan (-) BRL 3.309 K; 4Q16: result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 30,939 K; results from the sale of furniture line pertaining to da Duratex Colômbia: (+) BRL 2.793 K; 1Q17: result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 2,672 K; 3Q17: result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 46,821 K ; 4Q17: result from the sale of lands from the subsidiary Duratex Florestal (-) BRL 7,890 K; provision for non-recovered assets BRL (+) 50,796.


2017 ended on a positive tone for the Wood Division, reflecting Duratex’s new positioning in wood panels and a gradual improvement of demand. Several initiatives were successfully implemented throughout the year, including price increases, and commercial and product development actions aimed at stimulating demand and improving the mix, along with efforts in cost reduction, as previously stated.

As registered by IBÁ, the positive scenario in demand propelled the volume of wood panels marketed, which, along with the normalization of market share, lead to an expedition of 671.7 thousand m3. This quarter registered the best expedition of the year, 5.2% above 2016.

We have noticed a slight deterioration of the mix in this quarter, due to the fact that most of the growth in volume was concentrated in the standard lines that have a smaller added value. This deterioration was offset by a more efficient cost dilution, a consequence of operational leveraging. The result was a fourth quarter EBITDA of BRL 158.0 million, and a margin of 22.8%, in line with the results registered in the previous quarter.

Efforts related to cost reduction and gains in efficiency within the scope of the SGD will continue to be our focus in 2018. We have the opportunity to rearrange the mix of our production by exploring our logistic system and the competitive advantage of each of our five wood panel production units. We are taking measures to stimulate the demand for wood panels and the fidelity of clients, by offering high quality services while maintaining prices at levels that benefit the return of our operations.

Regarding 2018, the focus will continue on the initiatives to save costs and gain efficiency, under the umbrella of SGD. We have the opportunity to leverage our supply chain and the competitive advantage of our 5 wood panels mills, reallocating the mix of production among them. We are developing tools to stimulate the demand for wood panels, increase the customer loyalty, improve the service level and sustain the prices at a level that benefits the returns of our operations.

Wood – Sales Breakdown (in % in 4Q17)

Furniture Industry

Civil Construction/OthersResales

50.9

48.0

1.4


DECA Division

HIGHLIGHTS 4Q17 4Q16 % 3Q17 % 2017 2016 %

SHIPMENTS (IN ‘000 ITEMS)

BASIC PRODUCTS 1,902 1,757 8.3% 2,045 -7.0% 7,666 7,257 5.6%

FINISHING PRODUCTS 4,322 4,187 3.2% 4,726 -8.5% 18,387 17,333 6.1%

TOTAL 6,224 5,944 4.7% 6,771 -8.1% 26,053 24,590 5.9%

SHIPMENTS (in ‘m2)

FINISHING PRODUCTS 531,463 531,463

FINANCIAL HIGHLIGHTS (BRL1.000)

NET REVENUE 410,510 336,654 21.9% 368,373 11.4% 1,475,134 1,315,212 12.2%

DOMESTIC MARKET 387,377 320,479 20.9% 354,701 9.2% 1,413,094 1,257,078 12.4%

EXPORT MARKET 23,133 16,175 43.0% 13,672 69.2 % 62,040 58,134 6.7%

Net unit revenue (BRL per item shipped) 58.85 56.64 3.9% 54.40 8.2% 54.92 53.49 2.7%

Net unit revenue (BRL per m2 shipped) 83.21 - - - 83.21 - -

Unit cash cost (BRL per item shipped) (39.95) (36.71) 8.8% (34.29) 16.5% (34.81) (34.88) -0.2%

Unit cash cost (BRL per m2 shipped) (45.24) - - - - (45.24) - -

Gross profit 112,429 94,984 18.4% 111,482 0.8% 445,504 363,384 22.6%

Gross margin 27.4% 28.2% - 30.3% - 30.2% 27.6% -

Sales expenses (71,107) (63,403) 12.2% (69,277) 2.6% (265,138) (230,871) 14.8%

General and administrative expenses (18,797) (15,780) 19.1% (18,546) 1.4% (69,711) (63,981) 9.0%

Operating profit before financial results 39,525 16,880 134.2% 26,422 49.6% 146,678 69,360 111.5%

Depreciation and amortization 32,195 25,271 27.4% 28,096 14.6% 115,238 104,685 10.1%

EBITDA according to CVM No. 527/12(1) 71,720 42,151 70.2% 54,518 31.6% 261,916 174,045 50.5%

EBITDA margin according to CVM No. 527/12

17.5% 12.5% - 14.8% - 17.8% 13.2% -

Employees benefits (249) (280) -11.1% (2,050) -87.9% (3,961) (442) 796.2%

Extraordinary event (2) - 0 - - - - 3,136 -

Recurring and adjusted EBITDA 71,471 41,871 70.7% 52,468 36.2% 257,955 176,739 46.0%


(1) EBITDA (Earnings Before Interest,Taxes, Depreciation and Amortization): Measure of operational performance according to Instruction CVM527/12. (2) Extraordinary Events: 3Q16: (i) devolution of excess from the private pension plan (-) BRL 4,443 K; (ii)Non-recurring employee restitutions (+)

BRL 7,579 K.


The civil construction materials industry registered a quarter of mild contraction, and we now begin to glimpse at a discreet growth of the sector in 2018. Despite this challenging scenario, Deca presented a growth of 2.4% in volumes in comparison to 2018. Net revenue was positively affected in the quarter by the incorporation of the results of the recently-acquired Ceusa, which recorded an expedition of 531.5 thousand m2 in the quarter. When excluding this effect, Deca’s net revenue presented an increase of 8.8% in comparison to the same period of 2016. We have noticed a positive expansion in Deca’s sales this year, reflecting the strength and recognition of the brand, that are instrumental in the development of our activities in this difficult moment. Deca registered an increase of 8.8% in net revenue in comparison to the same period last year, when excluding the positive effects of Ceusa’s incorporation into the results.

We have also noticed a mild deterioration of mix, which is natural due to the seasonality of Deca’s products that show a lighter participation of finished products. This effect is mainly due to the smaller expedition of electric shower heads due to the higher temperatures this time of the year. The gross margin, however, increased from 28.2% to 30.7%, mainly a consequence of the incorporation of Ceusa into the results.

Additionally, there were planned stops within Deca’s production units. These stops resulted in a negative impact of approximately BRL 10 million in the costs of the division.

The investments in advertising and promotions were intensified during the last months of the year, due mainly to efforts in the positioning of the brand and more aggressive competition. In addition to this effect, there was an increase in freight costs and larger administrative expenses resulting from adjustments made throughout the second semester.

With regards to Ceusa, there was the recognition of BRL 25.4 million as revenue resulting from the adhesion to the REFIS PERT program. This amount was accounted as other operational results, and had a positive impact on Deca this quarter.

As a result, Deca’s Adjusted and Recurring EBITDA was BRL 71.5 million and BRL 257.9 million in the year, respectively, with a margin of 18%. The annual result presented an evolution of 46% in comparison to 2016. This improvement is a reflection of all the adjustments made in this division, even in a period of crisis.

Considering the slow and gradual recovery of the sector, we continue to focus on the differentiated positioning of the division, brought forth by the brands Deca, Hydra, and the recently-acquired Ceusa, along with the emphasis on relationships with clients, consumers and specifiers, allied with consistent cost-management, as the main proponents of results in 2018.

Deca – Sales Breakdown (in % in 4Q17)

69.0

3.0

20.0

8.0

Resales/Home Center

OthersWholesaleConstruction companies


Capital Markets

Duratex closed 2017 with a Market Cap of BRL 6,341.6 million, based on a closing share price of BRL 9.20.

There were 459.4 thousand trades in DTEX3 at the B3 spot market within the fourth quarter. This represents a trading volume equivalent to BRL 1,639.9 million, or a daily trading volume of BRL 27.8 million.

Our shares are listed on the Novo Mercado sections of B3 which brings together companies with the highest standards of corporate governance. We also have a differentiated dividend policy, with the distribution of 30% of adjusted net earnings to shareholders, while also adhering to the Abrasca Code for Self-Regulation and Good Practices for Listed Companies.

Shareholding Structure as of December 2017(in %)

40.0

20.0

8.7

0.4

29.4

1.5

Itaúsa and Families

Foreign InvestorsPension Funds

Treasury

Ligna and Family

Other Domestic Investors

There was an increase in our headcount once Ceusa was incorporated into Duratex. We closed 2017 with 11,400 employees.

It is worth mentioning that, despite the increase in headcount, the amount dedicated to employee remuneration varied with less intensity in 2017, thus reflecting our efforts in adjusting processes and capturing cost cuts in the Duratex Management system (SGD).

Since 2016, a commitment was made towards greater transparency with our environmental efforts. The results relating to water, waste, total energy, electricity and residues from 2017 are presented below. Tracking of environmental indicators has been carried out since 2004 and is part of the SGA (Environmental Management System – www.duratex.com.br/ sustentabilidade/meio-ambiente/sistema-de 40,020,027,61030,41,7DuratexFactSheet3Q1613gestaoambiental) of the Company, which holds ISO 14001 certification (www.duratex.com.br/sustentabilidade/compromisso/certificacoes). This practice is fundamental to ensuring the evaluation and continuous improvement of all our processes and products.

(BRL'000) 4Q17 4Q16 % 3Q17 % 2017 2016 %

Employees (quantity) 11,400 11,055 3.1% 11,150 2.2% 11,400 11,055 3.1%

Remuneration 107,270 105,317 1.9% 104,532 2.6% 421,459 419,363 0.5%

Obligatory legal charges 55,411 50,374 10.0% 52,496 5.6% 216,330 219,354 -1.4%

Differentiated benefits 27,026 26,726 1.1% 27,345 -1.2% 106,324 104,425 1.8%

Social and Enviromental Responsability


AFR – Accident Frequency Rate Accumulated in the period

Deca Hydra Woodpanels

Forest Headquartes Duratex

2016 2017

0

0

m3 w

aste

wat

er

1000000

1500000

2000000

2500000

3000000

500000

1,0

2,0

3,0

4,0

5,0

6,0

7,0

Wastewater disposal*

2,82 2,66

4,15

2,16

3,11

2.345.144

4.424126.584

106.814

4,765,245,27

3,13

4,53

1.839.078

3.963 86.337110.659

Total energy* Electric energy*

2016 2017

0

ener

gy G

J

6000000

4000000

2000000

8.941.745

276.4461.043.558

224.426

7.081.749

-20,8% -6,6%-20%

-31,8%-10,4%

221.157

1.087.241

209.576

2016

0

ener

gy G

Jv

400000

800000

1200000

1600000

2000000

2400000 2.334.644

4.103194.681162.590

2.109.868

3.409189.108156.298

Industrial Solid Waste in Landfill Areas*

2016

2016

2017

2017

0

indu

stria

l sol

id w

aste

ton

14000

8000

6000

2000

10.220

25

16.110

318

8.810

0

13.576

293

-9,6% -3,9% -2,8%

-7,7% -15,7%

8000000

2017

12000

10000

Water consumption*

Woodpanels

Woodpanels

Woodpanels

Woodpanels

Woodpanels

2016 2017

Forest

Forest

Forest

Forest

Forest

Metals

Metals

Metals

Metals

Metals

Sanitayware

Sanitayware

Sanitayware

Sanitayware

Sanitayware

0

m3 w

ater

1000000

4.412.838

343.192 131.744126.113

3.482.205

292.230309.078

131.744

-21,1%

4,5% 7,0% 3,6%

-14,8%

2000000

3000000

4000000

4500000

Direct emissions of greenhouse gases*

Duratex

2016 2017

0

t CO

2e

251.105223.484

-11%

3000000

2500000

2000000

1500000

1000000

50000

-21,6%

10000000

4,2%

-16,9%

-13,8%

4000

*The environmental performance for Hydra and our Central Office were not presented in the graphs above, for they represent a small part of the Company (0.5% of the water consumption, 1% of effluent discharges, 0.1% of the total energy consumption, 0.3% of electric energy consumption, 3.6% of the total residue discharge).

16000

18000

3,24

0,0


Acknowledgements

We are grateful for all the support received from our shareholders, the dedication and commitment of our employees, the partnerships we have with our suppliers and the confidence placed in us by our clients and consumers.

The Management


Consolidated assets (BRL '000) 12/31/17 VA% 09/30/17 VA% 12/31/16 VA%

CURRENT 3,023,458 31.9% 2,921,206 32.3% 3,214,706 34.4%

Cash and equivalents 1,074,364 11.4% 918,208 10.2% 1,416,360 15.2%

Financial Investments - 0.0% 49,480 0.5%

Clients accounts receivable 932,917 9.9% 854,701 9.5% 814,204 8.7%

Accounts receivable from related parties 35,146 0.4% 35,335 0.4% 21,025 0.2%

Inventory 760,093 8.0% 836,864 9.3% 802,498 8.6%

Ammounts receivable 63,529 0.7% 75,384 0.8% 47,969 0.5%

Recoverable taxes and contributions 138,878 1.5% 128,416 1.4% 95,839 1.0%

Other assets 13,023 0.1% 17,310 0.2% 11,303 0.1%

Non current assets available for sale 5,508 0.1% 5,508 0.1% 5,508 0.1%

NON-CURRENT 6,442,116 68.1% 6,111,353 67.7% 6,126,090 65.6%

Linked deposits 51,343 0.5% 51,192 0.6% 49,626 0.5%

Amounts receivable 106,493 1.1% 83,201 0.9% 68,158 0.7%

Pension plans credit 105,740 1.1% 105,428 1.2% 100,482 1.1%

Recoverable taxes and contributions 13,215 0.1% 14,695 0.2% 17,645 0.2%

Deffered income tax and contributions 313,146 3.3% 252,531 2.8% 255,142 2.7%

Investments in subsidiaries and addiliates 6,260 0.1% - 0.0% - 0.0%

Other investments 1,638 0.0% 921 0.0% 921 0.0%

Fixed assets 3,490,141 36.9% 3,469,993 38.4% 3,571,895 38.2%

Biological assets 1,698,855 17.9% 1,620,592 17.9% 1,528,917 16.4%

Intangible assets 655,285 6.9% 512,800 5.7% 533,304 5.7%

TOTAL ASSETS 9,465,574 100.0% 9,032,559 100.0% 9,340,796 100.0%

Financial Statements


CONSOLIDATED LIABILITIES 12/31/2017 VA% 09/30/2017 VA% 12/31/2016 VA%

CURRENT 1,551,576 16.4% 1,407,296 15.6% 1,197,206 12.8%

Loans and Financing 764,824 8.1% 827,234 9.2% 681,110 7.3%

Suppliers 296,372 3.1% 251,656 2.8% 214,226 2.3%

Staff Obligations 119,037 1.3% 134,979 1.5% 89,346 1.0%

Accounts Payable 163,704 1.7% 134,046 1.5% 134,692 1.4%

Accounts receivable from related parties 2,640 0.0% 2,640 0.0% 2,640 0.0%

Taxes and contribution 143,726 1.5% 56,311 0.6% 68,558 0.7%

Dividends and equity-on-interest payable 61,273 0.6% 430 0.0% 6,634 0.1%

NON-CURRENT 3,196,593 33.7% 2,947,164 32.5% 3,572,938 38.2%

Loans and financing 2,410,000 25.5% 2,209,991 24.5% 2,775,931 29.7%

Contigency Provisions 113,346 1.2% 85,478 0.9% 109,595 1.2%

Deffered income tax and social contribution

483,338 5.1% 470,660 5.2% 488,028 5.2%

Other accounts payable 189,909 2.0% 181,035 2.0% 185,410 2.0%

Taxes and contribution - 0.0% - 0.0% 13,974 0.1%

SHAREHOLDERS'S EQUITY 4,716,319 49.8% 4,678,099 51.8% 4,570,652 48.9%

Equity 1,970,189 20.8% 1,970,189 21.8% 1,970,189 21.1%

Cost of share issued (7,823) -0.1% (7,823) -0.1% (7,823) -0.1%

Capital reserves 345,300 3.6% 344,335 3.8% 342,212 3.7%

Transactions between partner and partnership

(18,731) -0.2% (18,731) -0.2% (18,731) -0.2%

Re-evaluation reserves 57,344 0.6% 57,812 0.6% 60,903 0.7%

Profit reserves 1,980,082 20.9% 1,956,457 21.7% 1,852,527 19.8%

Adjustments in equity valuation 416,855 4.4% 402,771 4.5% 398,161 4.3%

Shares held in treasury (27,851) -0.3% (27,851) -0.3% (27,931) -0.3%

Participation of non-controlling shareholders

954 0.0% 940 0.0% 1,145 0.0%

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 9,464,488 100.0% 9,032,559 100.0% 9,340,796 100.0%


CONSOLIDATED IN IFRS

Consolidates profit and loss statement (BRL '000)

4Q17 4Q16 VAR % 3Q17 VAR % 2017 2016 VAR %

4Q17 X 4Q17 4Q17 X 3Q17 2017 X 2016

NET SALES REVENUE 1,102,632 1,028,665 7.2% 1,019,521 8.2% 3,990,866 3,909,760 2.1%

Domestic Market 911,888 841,765 8.33% 843,921 8.05% 3,315,400 3,159,474 4.9%

Foreign Market 190,744 186,900 2.06% 175,600 8.62% 675,466 750,286 -10.0%

Biological asset 93,603 43,135 117.00% 40,027 133.85% 214,933 157,973 36.1%

Cost of goods sold (695,393) (633,043) 9.85% (628,298) 10.68% (2,540,874) (2,513,754) 1.1%

Depreciation/amortization/ depletion

(99,996) (108,874) -8.15% (104,069) -3.91% (398,038) (402,550) -1.1%

Depletion of biological assets (31,284) (64,596) -51.57% (30,372) 3.00% (123,118) (142,297) -13.5%

GROSS PROFIT 369,562 265,287 39.3% 296,809 24.5% 1,143,769 1,009,132 13.3%

Selling expenses (172,905) (154,070) 12.22% (165,861) 4.25% (638,521) (591,429) 8.0%

General and administrative expenses

(37,117) (34,318) 8.16% (36,257) 2.37% (143,308) (141,552) 1.2%

Management compensation (4,048) (3,715) 8.96% (3,881) 4.30% (15,612) (14,331) 8.9%

Other operating results. net (20,671) 32,734 -163.15% 59,809 -134.56% 75,013 55,295 35.7%

OPERATING PROFIT BEFORE FINANCIAL RESULTS 134,821 105,918 27.3% 150,619 -10.5% 421,341 317,115 32.9%

Financial revenues 27,600 28,674 -3.75% 49,163 -43.86% 163,031 147,964 10.2%

Financial expenses (81,885) (107,475) -23.81% (79,073) 3.56% (369,144) (447,236) -17.5%

PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 80,536 27,117 197.0% 120,709 -33.3% 215,228 17,843 1106.2%

Income tax and contribution - current

(7,940) (18,321) -56.66% (25,617) -69.00% (58,244) (80,121) -27.3%

Income tax and contribution - deffered

12,022 16,411 -26.74% (11,948) -200.62% 28,031 88,507 -68.3%

NET INCOME FOR THE PERIOD 84,618 25,207 235.7% 83,144 1.8% 185,015 26,229 605.4%


CASH FLOW 4Q17 4Q16 VAR % 3Q17 VAR % 2017 2016

4Q17 X 4Q17

4Q17 X 3Q17

Profit before income tax and social contribution 80,536 27,117 53,419 120,709 (40,173) 215,228 17,843

Items with no cash effect:Depreciation/amortization/depletion 145,060 183,380 (38,320) 144,783 277 565,449 584,102

Variation in fair value of biological assets (93,603) (43,135) (50,468) (40,027) (53,576) (214,933) (157,973)

Interest. exchange rate and monetary variations. net

68,028 101,102 (33,074) 72,367 (4,339) 332,540 411,517

Provisions. asset write-offs 79,652 26,628 53,024 (3,508) 83,160 116,056 82,524

Investment in working capital (50,062) (31,160) (18,902) (90,910) 40,848 (305,126) (151,400)

Increase (reduction) in assetsClients receivable accounts (43,720) (42,175) (1,545) (68,793) 25,073 (168,617) (66,015)

Inventories 94,983 40,775 54,208 45,805 49,178 62,201 (10,404)

Other assets (27,934) (21,515) (6,419) (26,475) (1,459) (107,663) (5,962)

Increase (reduction) in liabilitiesSuppliers 13,004 28,949 (15,945) (36,948) 49,952 51,164 12,673

Staff obligations (22,779) (44,783) 22,004 18,744 (41,523) 22,873 (19,155)

Accounts payable (136,199) 16,914 (153,113) 1,640 (137,839) (140,982) 18,917

Taxes and contribution 86,859 (5,517) 92,376 (5,412) 92,271 26,805 (53,503)

Other liabilities (14,276) (3,808) (10,468) (19,471) 5,195 (50,907) (27,951)

Cash from operations 229,611 263,932 (34,321) 203,414 26,197 709,214 786,613

Income tax and contribution paid (28,558) (3,324) (25,234) (4,710) (23,848) (44,906) (14,771)

Interest paid (69,905) (64,515) (5,390) (62,811) (7,094) (259,610) (321,244)

Cash generated from operational activies 131,148 196,093 (64,945) 135,893 (4,745) 404,698 450,598

Investment activitiesDebentures 49,171 - 49,171 (49,171) 98,342 -

Investimentos em ativo imobilizado (39,470) (41,723) 2,253 (43,942) 4,472 (178,162) (177,095)

Investiments in intangible assets (4,175) (4,062) (113) (1,032) (3,143) (8,975) (12,957)

Investiments in biological assets (38,977) (50,685) 11,708 (41,529) 2,552 (178,775) (190,783)

Acquisition of subsidiary (50,270) - (50,270) - (50,270) (50,270) (92,907)

Cash used in investment activities (83,721) (96,470) 12,749 (135,674) 51,953 (416,182) (473,742)

Funding activitiesFinancing 475,715 909,545 (433,830) 4,260 471,455 496,058 2,015,008

Debentures - - - - - (152,611)

Amortization of financing (368,397) (844,178) 475,781 (121,426) (246,971) (821,997) (1,241,178)

Interest on capital/Dividends - (8) 8 - - (6,084) (105,516)

Shares on treasury - - - 80 (80) 80 -

Capital increase by private subscription of shares

- - - - - 20,640

Cash (used) in funding activities 107,318 65,359 41,959 (117,086) 224,404 (331,943) 536,343

Exchange rate variation on cash and equivalents

1,411 (1,616) 3,027 (450) 1,861 1,431 (7,560)

Increase (reduction) in cash in the period 156,156 163,366 (7,210) (117,317) 273,473 (341,996) 505,639

Initial balance 918,208 1,252,994 (334,786) 1,035,525 (117,317) 1,416,360 910,721

Closing balance 1,074,364 1,416,360 (341,996) 918,208 156,156 1,074,364 1,416,360

Documents

FACT SHEET - Duratex SHEET 4Q17 CORPORATE GOVERNANCE Email for addressing matters related to Corporate Governance to senior management: [email protected] Shares