Duratex FS EN 2T18 · (3) For better understanding, the net revenue of BRL 57,072 related to the...

FACT SHEET2Q18

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, Satander.

MARKET CAP (06/30/2018)BRL 5,997.6 million

CLOSING SHARE PRICE ON 06/30/2018BRL 8.70

TOTAL SHARES AT THE END OF JUNE691,784,501

TREASURY SHARES2,410,659

FREE FLOAT40%

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

Teleconferência/Webcast:August 2nd 2018, Thursday Portuguese: Time: 10:00 a.m. BR Time (9:00 a.m. NYT) English: Time: 11:00 a.m. BR Time, (10:00 a.m. NYT) Supporting material: www.duratex.com.br/ri

To connect: Participants in Brazil: +55 11 3193-1001 or +55 11 2820-4001 Participants abroad: Dial-in: +1 646 828-8246 or Toll-free: +1 800 492-3904 (only in English) Password: Duratex Web conference: www.duratex.com.br/ri

For those unable to participate in 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: 4564258# and English: 5275852#.

2Duratex Fact Sheet 2Q18

Consolidated Financial Results

(1) EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization): Measure of operational performance in accordance with CVM Instruction No. 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) For better understanding, the net revenue of BRL 57,072 related to the sale of timber to Suzano Papel e Celulose was excluded from the calculation of Adjusted and Recurring EBITDA margin.

(4) Current liquidity: Current Assets Divided by Current Liabilities. Indicates the amount available in BRL to cover each BRL of short-term obligations.

(5) Net Indebtedness: Total Financial Debt (–) Cash balance.(6) Financial leverage calculated on the rolling EBITDA over the last 12 months, adjusted for events of a purely accounting and non-

cash nature.(7) ROE (Return on Equity): measure of performance obtained by taking the annualized Net Earnings over the period, annualized, and

dividing by Average Net Equity.(8) 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.

In BRL '000 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

Highlights

Volume shipped Deca (‘000 items) 6,821 6,252 9.1% 6,268 8.8% 13,089 13,058 0.2%

Volume shipped Ceramic tiles (m2) 1,237,116 - - 1,261,123 -1.9% 2,498,239 - 0.0%

Volume shipped Wood (m3) 613,601 526,572 16.5% 600,697 2.1% 1,214,298 1,112,558 9.1%

Consolidated net revenue 1,167,477 916,724 27.4% 1,005,982 16.1% 2,173,459 1,868,713 16.3%

Gross profit 309,858 245,306 26.3% 274,318 13.0% 584,176 477,398 22.4%

Gross margin 26.5% 26.8% 27.3% 26.9% 25.5%

EBITDA according to CVM No. 527/12(1) 501,521 218,639 129.4% 224,889 123.0% 726,410 411,507 76.5%

EBITDA Mg CVM No. 527/12 43.0% 23.9% 22.4% 33.4% 22.0%

Adjustments for non-cash events (28,248) (40,542) -30.3% (42,761) -33.9% (71,009) (82,567) -14.0%

Non-recurring events (253,254) - - (253,254) (2,672) 9,378.1%

Adjusted and recurring EBITDA(2) 220,019 178,097 23.5% 182,128 20.8% 402,147 326,268 23.3%

Adjustred and recurring EBITDA margin(3) 19.8% 19.4% 18.1% 19.0% 17.5%

Net income 166,584 24,767 572.6% 30,823 440.5% 197,407 17,253 1,044.2%

Recurring net income 27,498 24,767 11.0% 30,823 -10.8% 58,321 15,489 276.5%

Recurring net margin 2.5% 2.7% 3.1% 2.8% 0.8%

INDICATORS

Current ratio(4) 2.86 2.30 24.4% 1.98 44.6% 2.86 2.30 24.4%

Net debt(5) 2,163,101 2,108,077 2.6% 2,216,066 -2.4% 2,163,101 2,108,077 2.6%

Net debt/EBITDA LTM(6) 2.59 2.89 -10.5% 2.79 -7.3% 2.59 2.89 -10.5%

Average shareholder's equity 4,884,211 4,582,442 6.6% 4,743,865 3.0% 4,828,247 4,578,512 5.5%

ROE(7) 13.6% 2.2% 2.6% 8.2% 0.8%

Recurring ROE 2.3% 2.2% 2.6% 2.4% 0.7%

SHARES

Earnings per share (BRL)(8) 0.2415 0.0359 572.7% 0.0447 440.3% 0.2862 0.0250 1,044.8%

Closing share price (BRL) 8.70 8.17 6.5% 11.85 -26.6% 8.70 8.17 6.5%

Net equity per share (BRL) 7.25 6.67 8.7% 6.92 4.7% 7.25 6.67 8.7%

Treasury shares 2,410,659 2,485,759 -3.0% 2,478,659 -2.7% 2,410,659 2,485,759 -3.0%

Market cap (BRL 1,000) 5,997,552 5,631,571 6.5% 8,168,274 -26.6% 5,997,552 5,631,571 6.5%


Market and Business ScenarioThe set of macroeconomic indicators suggests that the economy continues to recover. Nonetheless, the expectations indicate that the pace of this recovery is more gradual than at the beginning of the year, signaling a slower recovery than previously expected. During the second quarter of 2018, we noticed a pick up in the domestic activity levels due to the growth in demand and unemployment rates following a downward trend at a moderate pace.

The performance of the quarter was negatively impacted by the halt in the transportation sector, which occurred in May. Our operations faced supply and shipping issues, which hampered the performance of all business divisions. This effect was partially offset in June.

According to ABRAMAT (Brazilian Association of the Building Materials Industry), the deflated sales of the building materials industry dropped by 0.4% in the first half of 2018. This data was impacted by the effects of

the truck drivers' strike; thus, the association maintains a positive expectation regarding the evolution of this indicator in the rest of the year, sustaining the growth estimate of 1.5% in 2018. Employment level in the sector continues to show a decreasing trend, with a decline of 1.2% year to date.

In the wood panels industry, IBÁ (Brazilian Industry of Panels) recorded a 2% growth in the local demand for wood panels during the first half of 2018. The demand for MDP grew 4% in volumes and the demand for MDF increased 1%. In the foreign market, exports grew 9% compared to the first half of 2017. MDP's volumes in exports increased 19%, while the MDF volumes grew 2%.

Despite the revised estimates, projections still point to a growth in GDP during 2018. The growth in household consumption and investments, coupled with continued monetary policy and a reduction in the level of unemployment may have a positive impact on our operations throughout the year.

Consolidated investments in the quarter amounted to BRL 115.3 million, mainly directed towards the sustaining of our operations. This amount consists of BRL 68.0 million for manufacturing maintenance and projects and BRL 47.3 million invested in the formation of biological assets. In the first half of the year, the total amount invested was BRL 196.6 million.

The internal agenda, supported by the solid Duratex Management System, remains a daily priority. The slower than expected resumption of the economy will demand even more efforts to save costs, gain productivity, and efficiently manage working capital and investments, with the clear objective of reaching a better return on our capital.

In 2018, we are stepping forward in an important stage of the Journey of Cultural Transformation, strengthening a new way of approaching our business. In order to stimulate a more results-oriented organizational culture,

we are investing in innovation and digital technology to sustain the growth of our operations.

As a result of a deep review of our asset base, we have implemented movements that will be material to improving the returns in our business. Earlier this year, we announced the transaction with Eucatex for the sale of machinery and equipment dedicated to the production of hardboard, which remains under analysis by CADE for its effective conclusion. In addition, we have sold forest assets in the state of São Paulo to Suzano Papel e Celulose. This operation was completed at the beginning of July, with the exercise of the call option by Suzano. Finally, we dedicate part of our forests in the Triângulo Mineiro region to an association with the Austrian group Lenzing AG, through the constitution of a Joint Venture, to produce dissolving wood pulp. These initiatives ended a cycle of adjustments of surplus assets in the Wood Division, contributing to leverage the results without harmful effects in current operations.

Strategic Management and Investiments


Lastly, as a subsequent event, we announced in July 2018 an investment plan to expand production capacity in Ceramic Tiles. We have announced our debut in this industry through the acquisition of Ceusa in the second half of 2017 and this project shall increase market share and has the target of increasing margins and the return of this operation. It will be invested BRL 94 million in the years 2018 and 2019 to modernize the existing lines and build a new line, increasing

production capacity by 83%. Therefore, the Ceramic Tiles operations will have annual production capacity of 11 million square meters after this project.

We are positioning the Company in a strategic competitiveness level through financial deleveraging, management excellence, a renewed organizational culture and the definition of avenues for growth.

NET REVENUESIn the second quarter of this year, the net revenues totaled BRL 1,167.5 million, which represents an increase in 27.4% versus the same period of 2017. Of this amount, BRL 238.8 million was derived from foreign markets, in other words, exports and our operations in Colombia.

The revenue growth in the domestic market mainly reflected the increase in the volume sold in the Wood and Deca Divisions, the sale of biological assets, the incorporation of the results of the Ceramic Tiles Division and price increases during the period. In the foreign market, the highlight is for the increase in exported volume of wood panels and the effects arising from the foreign exchange variation.

Net Revenue Breakdown (% in 2Q18):

32.1

64.0

3.9

COST OF GOODS SOLDCash Cost, that is the Cost of Goods Sold net of Depreciation, Amortization and Depletion, and of the variation in the Fair value of Biological Assets recorded in the second quarter was BRL 691.0 million, an increase of 17.6% in relation to 2Q17. The increase was a result of higher volumes shipped, the incorporation of Ceramic Tiles results, hikes in commodity costs and the cumulated inflation in the period. The gross margin remained flat at the level of 26.5%.

Consolidated FinancialHighlights (IFRS)

BRL '000 - consolidated 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

Net revenue 1,167,477 916,724 27.4% 1,005,982 16.1% 2,173,459 1,868,713 16.3%

Domestic market 928,670 756,489 22.8% 828,898 12.0% 1,757,568 1,559,591 12.7%

Foreign market 238,807 160,235 49.0% 177,084 34.9% 415,891 309,122 34.5%

Exports 122,910 81,120 51.5% 84,320 45.8% 207,230 146,172 41.8%

Duratex Colombia 115,897 79,115 46.5% 92,764 24.9% 208,661 162,950 28.1%

DECACERAMIC TILES

WOOD


BRL‘000 – consolidated 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

Cash COGS (690,982) (587,806) 17.6% (645,345) 7.1% (1,336,327) (1,217,183) 9.8%

Variation in fair value of biological assets 29,271 38,582 -24.1% 42,579 -31.3% 71,850 81,303 -11.6%

Depletion of biological assets (64,135) (27,384) 134.2% (31,146) 105.9% (95,281) (61,462) 55.0%

Depreciation, amortization and depletion (131,773) (94,810) 39.0% (97,752) 34.8% (229,525) (193,973) 18.3%

Gross profit 309,858 245,306 26.3% 274,318 13.0% 584,176 477,398 22.4%

Gross margin 26.5% 26.8% 27.3% 26.9% 25.5%

BRL‘000 – ex Duratex Colombia 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

Cash COGS (617,805) (539,228) 14.6% (589,402) 4.8% (1,207,207) (1,120,046) 7.8%

Variation in fair value of biological assets 29,130 38,801 -24.9% 41,670 -30.1% 70,800 80,942 -12.5%

Depletion of biological assets (64,135) (27,384) 134.2% (31,146) 105.9% (95,281) (61,462) 55.0%


Gross profit 271,011 218,891 23.8% 240,104 12.9% 511,115 418,856 22.0%

Gross margin 25.8% 26.1% 26.3% 26.0% 24.6%

Net Revenue (in BRL million) – ex Duratex Colômbia

Cash Cost (in BRL million) and Gross Margin (in %) – ex Duratex Colômbia

Cash CostGross Margin

32

10

11

4

4

39

249

17 12

1710

92

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

548.9549.5591.5534.5573.1 576.2 582.2 539.2560.8 584.5

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 3Q15 1Q16 3Q162Q15 4Q15 2Q16 4Q16 1Q17 2Q17 3Q17 4Q17

930.4 868.1 837.6 930.8 1,010.0

1Q18 2Q18

913.2 1,051.6

1Q15 3Q15 1Q16 3Q162Q15 4Q15 2Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

589.4 617.8

26.325.8

Other materials

Wood*Paper

Electricity

Resin

Depreciation and amortization

Labor

Fuel

Other materials

ElectricityLabor

Fuel

Metal

Depreciation and amortization

COGS Breakdown – Division Deca 2Q18 (%)

COGS Breakdown – Division Wood 2Q18 (%)



Selling expenses (163,779) (153,004) 7.0% (150,553) 8.8% (314,332) (299,755) 4.9%

% of net revenue 14.0% 16.7% 15.0% 14.5% 16.0%

SELLING EXPENSESSelling expenses amounted BRL 163.8 million in 2Q18. This result increased compared to the previous quarter and the same period last year.

The increase in sales combined with a higher share of exports in the sales resulted in a hike in variable commercial expenses. We also noticed an increase in the freight cost per unit, both in the domestic market and exports, which contributed to the growth of this expense. In relation to the fixed commercial expenses, we also recorded an increase over last year, mainly due to the acquisition of Ceusa and an increase in investments in advertising.

We are constantly developing alternatives for optimizing the Company's logistics chain within the Duratex Management System. This work’s objective is to improve the level of service to our customers with competitive transportation costs. We continue to monitor the consequences of the halt in the transportation sector, which may lead to an increase in freight costs in the coming quarters.

Selling Expenses (in BRL million) and % of Net Revenue – ex Duratex Colômbia

GENERAL & ADMINISTRATIVE EXPENSESIt was recorded BRL 42.5 million as general and administrative expenses in the quarter. The expenses increased in relation to previous periods, aligned with the strategy of greater investment in innovation and in the digital transformation of the Company. In addition, restructurings carried out in the period and expenses involved in strategic projects also contributed to this increase.

We continue to adopt the Zero Base Budget methodology as a main foundation of the Duratex Management System. We should note an increase in expenses in 2018 due to the restructuring of part of the administrative structure and the focus on innovation and digital transformation of the Company.


General and administrative expenses (42,553) (35,198) 20.9% (37,428) 13.7% (79,981) (69,934) 14.4%

% of net revenue 3.6% 3.8% - 3.7% - 3.7% 3.7% -

3Q164Q153Q152Q151Q15 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q181Q16 2Q16

15.915.415.3

16.0

15.014.6

13.6

15.3

15.8

17.216.7

15.5 14.616.1

138.3137.0141.8128.2126.1 142.3 137.3 143.8 155.7 162.9121.8 138.3 141.7 153.2

Cash costGross margin


EBITDA reconciliation in BRL‘000 – consolidated

2Q18 2Q17 % 1Q18 % 1H18 1H17 %

Net income 166,584 24,767 572.6% 30,823 440.5% 197,407 17,253 1044.2%

Income tax and social contribution 78,677 2,243 3407.7% 10,215 670.2% 88,892 (3,270) -2818.4%

Net financial result 48,544 59,084 -17.8% 43,275 12.2% 91,819 121,918 -24.7%

EBIT 293,805 86,094 241.3% 84,313 248.5% 378,118 135,901 178.2%

Depreciation, amortization and depletion

143,582 105,160 36.5% 109,430 31.2% 253,012 214,143 18.2%

Depletion of biological assets 64,134 27,385 134.2% 31,146 105.9% 95,280 61,463 55.0%

EBITDA according to CVM No. 527/12 501,521 218,639 129.4% 224,889 123.0% 726,410 411,507 76.5%

EBITDA margin CVM No. 527/12 43.0% 23.9% - 22.4% - 33.4% 22.0% -

Change in fair value of biological assets

(29,271) (38,582) -24.1% (42,579) -31.3% (71,850) (81,303) -11.6%

Employee benefits 1,023 (1,960) -152.2% (182) -662.1% 841 (1,264) -166.5%

Non-Recurring events(1) (253,254) - - - - (253,254) (2,672) 9378.1%

Adjusted and recurring EBITDA 220,019 178,097 23.5% 182,128 20.8% 402,147 326,268 23.3%

Adjusted and recurring EBITDA margin(2) 19.8% 19.4% - 18.1% - 19.0% 17.5% -

EBITDA The following table shows the reconciliation of EBITDA, in accordance to CVM No. 527/12. We have made two adjustments to this result in an attempt to better illustrate the operational cash generation: the exclusion of events

of a purely accounting and non-cash nature, and of non-recurring events. Thus, in keeping with best practices, the table below shows the calculation of the indicator which best reflects the Company’s cash generation.

Adjusted and recurring EBITDA was BRL 220.0 million in the second quarter of 2018, which represented an EBITDA margin of 19.9%. This result is net of one-off events, such as the sale of land and forest to Suzano Papel e Celulose.

The positive trend of EBITDA reinforces the slight improvement in the industries in which we operate. We are gradually returning to more attractive levels of profitability due to the increase in volumes sold, the cost savings within Duratex Management System and the commercial policy focusing on returns.

Adjusted and Recurring EBITDA in 2Q18

(1) Non-recurring events: 2Q18: results from the sale of lands from Duratex Forest (-) BRL 196.182; Results from the sale of timber from Duratex Forest in the transaction with Suzano Papel e Celulose (-) BRL 57.072; 1Q17: results from the sale of land from Duratex Forest (-) BRL 2.672;


21.4

74.2

4.3

DECAWOOD

CERAMIC TILES



Net earnings 166,584 24,767 572.6% 30,823 440.5% 197,407 17,253 1044.2%

Non-recurring events(1) (139,086) - - - - (139,086) (1,764) 7786.8%

Recurring net income 27,498 24,767 11.0% 30,823 -10.8% 58,321 15,489 276.5%

ROE 13.6% 2.2% - 2.6% - 8.2% 0.8% -

Recurring ROE 2.3% 2.2% - 2.6% - 2.4% 0.7% -

NET EARNINGSRecurring net income in 2Q18 was BRL 27.5 million, reflecting a recurring ROE of 2.3%. This result is net of non-recurring effects of the sale of land and forests in a transaction with Suzano.

ADDED VALUEValue Added in the quarter totaled BRL 621.9 million. Of this amount, BRL 176.2 million, equivalent to 28.3% of total Added Value, was allocated to the federal, state and municipal governments in the form of taxes and contributions.

Distribution of Added Value (in % in 2Q18)

30.7

14.2

26.8

28.3

(1) Non-recurring events: 2Q18: results from the sale of lands from Duratex Forest (-) BRL 129.480 mil; Results from the sale of timber from Duratex Forest in the transaction with Suzano Papel e Celulose (-) BRL 9.606 mil; 1Q17: results from the sale of lands from Duratex Forest (-) BRL 1.764 mil.

INDEBTEDNESS We recorded a reduction in the debt level in relation to the previous quarter, closing the net debt in BRL 2,163.1 million at the end of 2Q18. Financial leverage, measured by the ratio between net debt and EBITDA, was 2.59x, following a downward trend presented in the previous periods.

In 2Q18, the first tranche of the transaction with Suzano Papel e Celulose was partially received. On the other hand,

the respective taxes of BRL 81.0 million were disbursed for the first half of the operation.

The net financial result was BRL 48.5 million in the quarter, showing a significant decrease of 17.8% in relation to the same period of the previous year. We remain monitoring the market to evaluate opportunities to manage the Company's liabilities, in order to extend the debt average maturity and reduce the cost of debt.

Labor remuneration

Shareholder remunerationDebtholder remunerationGovernment remuneration


BRL ‘000 2Q18 2Q17 Var. R$ 1Q18 Var. R$ 2017 Var. R$

Short-Term debt 447,545 698,675 (251,130) 836,053 (388,508) 764,824 (317,279)

Long-Term debt 2,542,072 2,444,927 97,145 2,180,799 361,273 2,410,000 132,072

Total debt 2,989,617 3,143,602 (153,985) 3,016,852 (27,235) 3,174,824 (185,207)

Cash and equivalent 826,516 1,035,525 (209,009) 800,786 25,730 1,074,364 (247,848)

Net debt 2,163,101 2,108,077 55,024 2,216,066 (52,965) 2,100,460 62,641

Net debt/Adjusted and recurring EBITDA 2.59 2.89 2.79 2.76

Net debt/Equity (in %) 43.3% 45.9% - 46.4% - 44.5% -

FINANCIAL REVENUES AND EXPENSES

BRL‘000 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

Financial revenues 39,965 44,598 -10.4% 18,074 121.1% 58,039 86,268 -32.7%

Financial expenses (88,509) (103,682) -14.6% (61,349) 44.3% (149,858) (208,186) -28.0%

Net financial result (48,544) (59,084) -17.8% (43,275) 12.2% (91,819) (121,918) -24.7%

Amortization Schedule (in BRL million)

669.3

2022 and beyond

82.3

2021

1,300.9

2020

725.2

2019

173.3

2018

Total Debt at the End of June 2018 (in BRL million)

447.5

2,542.1

Origin of Debt (%)

87.9

12.1

Short termLong term

Local currencyForeign currency

(100% hedge for BRL)


Wood

HIGHTLIGHTS 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

SHIPMENTS (IN M3)

STANDARD 357,601 294,887 21.3% 356,428 0.3% 714,029 608,343 17.4%

COATED 256,000 231,685 10.5% 244,269 4.8% 500,269 504,215 -0.8%

TOTAL 613,601 526,572 16.5% 600,697 2.1% 1,214,298 1,112,558 9.1%

FINANCIAL HIGHLIGHTS (BRL '000)

NET REVENUE 747,488 563,536 32.6% 628,103 19.0% 1,375,591 1,172,462 17.3%

DOMESTIC MARKET 535,494 417,654 28.2% 468,729 14.2% 1,004,223 888,575 13.0%

FOREIGN MARKET 211,994 145,882 45.3% 159,374 33.0% 371,368 283,887 30.8%

Net revenue per unit (BRL/m3 shipped) 1125.19 1070.20 5.1% 1045.62 7.6% 1085.83 1053.84 3.0%

cash cost per unit (BRL/m3 shipped) (679.82) (711.19) -4.4% (662.03) 2.7% (671.02) (710.95) -5.6%

Gross profit 189,769 129,925 46.1% 169,448 12.0% 359,217 255,805 40.4%

Gross margin 25.4% 23.1% - 27.0% - 26.1% 21.8% -



Operating profit before financial results 268,212 35,305 659.7% 57,751 364.4% 325,963 55,170 490.8%

Depreciation, amortization and depletion 113,075 77,291 46.3% 79,554 42.1% 192,629 159,196 21.0%

Depletion tranche of biological assets 64,134 27,385 134.2% 31,146 105.9% 95,280 61,463 55.0%

EBITDA according to CVM No. 527/12(1) 445,421 139,981 218.2% 168,451 164.4% 613,872 275,829 122.6%

EBITDA margin according to CVM No. 527/12

59.6% 24.8% - 26.8% - 44.6% 23.5% -

Variation in fair value of biological assets (29,271) (38,582) -24.1% (42,579) -31.3% (71,850) (81,303) -11.6%

Employee benefits 419 (743) -156.4% 458 -8.5% 877 398 120.4%

Non recurring events (253,254) - - - - (253,254) (2,672) 9378.1%

Adjusted and recurring EBITDA 163,315 100,656 62.3% 126,330 29.3% 289,645 192,252 50.7%

Adjusted and recurring EBITDA margin(2) 23.7% 17.9% - 20.1% - 21.1% 16.4% -

Operations

(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measure of operational performance according to Instruction CVM No. 527/12;

(2) Non-recurring events: 2Q18: results from the sale of lands from Duratex Forest (-) BRL 196.182; Results from the sale of timber from Duratex Forest in the transaction with Suzano Papel e Celulose (-) BRL 57.072; 1Q17: results from the sale of land from Duratex Forest (-) BRL 2.672.



The second quarter of 2018 was positive for the Wood Division, continuing the process of recovery in the main markets, in spite of the negative effects of the truck drivers' strike. We noted a growth in volumes sold and the profitability of operations, following the gradual pace of recovery.

Net revenue for the quarter was BRL 747.5 million, up 32.6% over the previous year. The growth in the volume sold of wood panels was a result of a better level of local demand in the period, with an increase in market share and an increase in exports. In addition, there were important forest sales in the quarter, which also contributed to this growth. In the first tranche of the operation with Suzano Papel e Celulose, accounted in this quarter, approximately BRL 60.0 million of timber was sold. Moreover, there was also a sale of timber to other customers around BRL 20.0 million above the average level in other quarters.

In relation to the second quarter of last year, we had a higher concentration of lower value-added products goods in the composition of the product mix as a consequence of the market recovery in the furniture manufacturing chain. On the other hand, we noticed a better performance in the wood panel retail sector compared to the first quarter of that year, resulting in a slightly better mix than at the beginning of the year.

In the Division's cost structure, we had a concentration of planned shutdowns to maintenance in the first half of this year. In addition, we noted an increase in the cost of the main commodities, both for price hikes and for the depreciation of the Brazilian Real.

The adjusted and recurring EBITDA for the quarter was 163.3 million, with an EBITDA margin of 23.7%. It is worth mentioning that the recurring EBITDA and the respective margin disregard the sale of land and forests to Suzano Papel e Celulose. This result was also benefited by FX effect in the consolidation of Colombia's results, due to the appreciation of the Colombian Peso in relation to the Brazilian Real in the period.

We remain aiming attention at sustaining a commercial policy that focus on margins, without giving up our market share. Supported by the Duratex Management System and an efficient productivity management, we expect to continue the positive trend of profitability in the Wood Division.

Wood – Sales Breakdown (in % in 2018)

54.0

42.0

4.0

Furniture manufactures

Civil construction/othersResale


(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measure of operational performance according to Instruction CVM No. 527/12.

In spite of the still challenging scenario of the civil construction, the volumes shipped in the Deca showed a growth of approximately 9% in relation to the periods of comparison. Demand from new homes remained depressed; thus, the retail channel continued to be driver of demand for building materials in the period. In basic goods, we presented an increase of 14.2% compared to the same period of last year, in contrast to the 6.3% decrease compared to the previous quarter.

Deca’s net revenue was BRL 374.3 million in the quarter, driven by the higher volume sold. This result represents a growth of 6.0% in relation to 2Q17 and 12.2% in relation to the first quarter of this year. The positive evolution of revenue signals the recovery compared to the negative scenario presented at the beginning of 2018.

In relation to the same period last year, we noticed a deterioration of the mix of products sold in both Deca's three main businesses, with a concentration of sales

of lower value-added goods. This change reflected a reduction of 2.9% in net revenue per unit. Compared to 1Q18, there was a greater increase in sales of electronic showers, stimulated by the seasonality of sales of this type of product. In addition, metals and ceramic sanitary ware showed a slight improvement in the mix of products sold compared to the previous quarter.

Overall, costs continue to negatively pressure the results. The inflation of the raw materials in the Deca has been harmful to the profitability of the operations, with emphasis on the increase of the exchange rate and commodities costs. The initiatives within Duratex Management System partially offset this setback, but they were not sufficient to absorb all the worsening. We also noticed deterioration in industrial performance in the quarter, influenced mainly by the change of mix and instability in production.

Adjusted and recurring EBITDA in the quarter was BRL 47.2 million, with an EBITDA margin of 12.6%. This performance

Deca

HIGHTLIGHTS 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

SHIPMENTS (IN ‘000 ITEMS)

BASIC GOODS 1,851 1,621 14.2% 1,975 -6.3% 3,826 3,719 2.9%

FINISHING GOODS 4,970 4,631 7.3% 4,293 15.8% 9,263 9,339 -0.8%

TOTAL 6,821 6,252 9.1% 6,268 8.8% 13,089 13,058 0.2%

FINANCIAL HIGHLIGHTS (BRL 1,000)

NET REVENUE 374,334 353,188 6.0% 333,534 12.2% 707,868 696,251 1.7%

DOMESTIC MARKET 351,696 338,835 3.8% 319,476 10.1% 671,172 671,016 0.0%

EXPORTS 22,638 14,353 57.7% 14,058 61.0% 36,696 25,235 45.4%

Net revenue per unit (BRL per item shipped) 54.88 56.49 -2.9% 53.21 3.1% 54.08 53.32 1.4%

Cash cost per unit (BRL per item shipped) (36.36) (34.12) 6.6% (35.50) 2.4% (35.95) (32.64) 10.1%

Gross profit 101,746 115,381 -11.8% 87,108 16.8% 188,854 221,593 -14.8%

Gross margin 27.2% 32.7% - 26.1% - 26.7% 31.8% -

Selling expenses (61,490) (66,199) -7.1% (53,913) 14.1% (115,403) (124,754) -7.5%


Operating profit before financial results 17,591 50,789 -65.4% 17,864 -1.5% 35,455 80,731 -56.1%

Depreciation and amortization 28,980 27,869 4.0% 28,425 2.0% 57,405 54,947 4.5%

EBITDA according to CVM No. 527/12(1) 46,571 78,658 -40.8% 46,289 0.6% 92,860 135,678 -31.6%

EBITDA margin according to CVM No. 527/12

12.4% 22.3% - 13.9% - 13.1% 19.5% -

Employee benefits 604 (1,217) -149.6% (640) -194.4% (36) -1,662 -97.8%

Non-recurring events - - - - - - - -

Adjusted and recurring EBITDA 47,175 77,441 -39.1% 45,649 3.3% 92,824 134,016 -30.7%

Adjusted and recurring EBITDA margin 12.6% 21.9% - 13.7% - 13.1% 19.2% -


Ceramic Tiles

HIGHLIGHTS 2Q18 1Q18 % 1H18

SHIPMENTS (IN M2)

FINISHING GOODS 1,237,116 1,261,123 -1.9% 2,498,239

TOTAL 1,237,116 1,261,123 -1.9% 2,498,239

FINANCIAL HIGHLIGHTS (BRL 1,000)

NET REVENUE 45,655 44,345 3.0% 90,000

DOMESTIC MARKET 41,480 40,693 1.9% 82,173

EXPORTS 4,175 3,652 14.3% 7,827

Net revenue per unit (BRL per m2 shipped) 36.90 35.16 5.0% 36.03

Cash cost per unit (BRL per m2 shipped) (20.88) (19.95) 4.6% (20.41)

Gross profit 18,343 17,762 3.3% 36,105

Gross margin 40.2% 40.1% - 40.1%

Selling expenses (8,478) (7,377) 14.9% (15,855)

General and administrative expenses (1,817) (1,554) 16.9% (3,371)

Operating profit before financial results 8,002 8,698 -8.0% 16,700

Depreciation and amortization 1,527 1,451 5.2% 2,978

EBITDA according to CVM No. 527/12(1) 9,529 10,149 -6.1% 19,678

EBITDA margin according to CVM No. 527/12 20.9% 22.9% - 21.9%

Employee benefits - - -

Non-recurring events - - - -

Adjusted and recurring EBITDA 9,529 10,149 -6.1% 19,678

Adjusted and recurring EBITDA margin 20.9% 22.9% 21.9%

Sales Breakdown (in % in 2Q18)

66.3

3.4

22.9

7.4

was worse than the same period of last year, intensified by tax gains recorded at the time of around BRL 15.5 million. Compared to the first quarter of the year, there was an improvement of 3.3%.

Despite the uncertainties regarding the resumption of the construction segment and, consequently, the demand for building materials, we are concentrating efforts to recover the margins and profitability of the operation for the rest of the year. We have structured a plan with a holistic approach to the reversal of this scenario, with emphasis on the implementation of a second price readjustment in the year, execution capacity at the point of sale, establishment of industrial initiatives aimed at improving the Division's operational performance and productivity gains, revaluation of fixed expenses and restructuring in the manufacturing areas at the end of the second quarter to make the hierarchy leaner and more agile.

(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measure of operational performance according to Instruction CVM No. 527/12.

Retail

OthersWholesaleHomebuilders


Capital Markets and Corporate Governance

In the end of the second quarter of 2018, the market cap was equivalent to BRL 5,997.6 million as a result of a final share price of BRL 8.70.

During this period, there were 309,251 trades with our shares in the spot market of B3. It represented a trading volume of BRL 1,246.9 million or an average daily trading volume of BRL 19.8 million.

Our shares are listed on the Novo Mercado, a segment of B3 that brings together companies with the highest corporate governance standards. We also have a differentiated dividend distribution policy, with a payout ratio equivalent to 30% of adjusted net income. Lastly, we adhered to the Abrasca Code of Self-Regulation and Good Practices of Publicly-held Companies.

Shareholder Structure – June 2018 (in %)

40.0

20.0

8.3

0.3

29.2

2.2

Among the businesses that make up our portfolio of solutions, Ceusa was the largest affected by the transportation sector strike. Since the ceramic tiles operations are running with a high rate of capacity utilization, the stoppage directly affected the performance of the business.

We recorded a slight reduction of volumes compared to 1Q18, down 1.9%, due entirely to the effects of the truck drivers’ strike. On the other hand, there was an improvement in the mix of products sold, partially offsetting the effects of volume reduction. Net revenue was BRL 45.7 million, an increase of 3.0% over the previous period.

The worst dilution of fixed costs of the Ceramic Tiles Division had a direct impact on the performance of the quarter. Adjusted and recurring EBITDA was BRL 9.5 million, reflecting an EBITDA margin of 20.9%. This result was 6.1% lower than the one presented at the beginning of 2018. EBITA totaled BRL 19.7 million in the six-month period, representing a margin of 21.9%, a benchmark in the ceramic tile industry.

We expect a slight improvement over the result presented in this quarter for the rest of the year, including the total recovery of volumes not shipped at the strike. In the Ceramic Tiles Division, we remain focused on integrating our businesses and constantly improving the mix of products sold.

Itaúsa and families

Foreign investorsPension funds

Treasury

Ligna and families

Local investors


(BRL '000) 2Q18 2Q17 % 1Q18 % 1H18 1H17 %

Employees (quantity) 11,450 11,510 -0.5% 11,437 0.1% 11,450 11,510 -0.5%

Remuneration 112,885 106,925 5.6% 109,882 2.7% 222,767 209,657 6.3%

Obligatory legal charges 60,411 58,504 3.3% 52,542 15.0% 112,953 108,423 4.2%

Differentiated benefits 28,741 26,333 9.1% 26,644 7.9% 55,385 51,953 6.6%

Social and Environmental Responsability

The headcount showed a slight increase compared to the previous quarter, ending the period with 11,450 employees. In the comparison of the quarters, we presented a reduction in the workforce in spite of the incorporation of Ceusa employees, incorporated in October 2017.

In April, we launched the project "Proteger e Sorrir em Rede" in partnership with Childhood Brasil, which aims to contribute to the reduction of sexual violence against children and adolescents in Brazil. As a first step in the initiative, stakeholders were gathered around the Deca Sanitay ware unit in João Pessoa, Paraíba, to develop a methodology to help companies in the region identify and curb cases of sexual violence against children and adolescents. In the next steps of this work, Duratex will host, in the third quarter of 2018, a workshop to map the activities already carried out by the local communities for the protection of children and adolescents, regarding the care, prevention and diagnosis of situations of violence against this public. It will also address the public policies focused on the theme. Learn more at: http://www.duratex.com.br/en/noticias/duratex-promove-workshop-na-pb-sobre-combate-a-exploraca-sexual-infantil.

The results from the months of January to June are presented for the aspects water, effluent, total energy, electricity, waste and greenhouse gas emissions. The

monitoring of environmental indicators has been carried out since 2004 and is part of the Company's Environmental Management System, which is ISO 14001 certified (www.duratex.com.br/sustentabilidade/commitment/certifications). This practice is fundamental to ensure continuous evaluation and improvement of all our processes and products.


Waste Water Disposal (m³)

Total Energy* Electric Energy*

ener

gy G

Jv

Industrial Solid Waste in Landfill Areas*

indu

stria

l sol

id w

aste

ton

Water Consumption (m³)m

3 wat

er

Direct Emissions of Greenhouse Gases*

AFR – Accident Frequency Rate Accumulated in the period

-26.9%

-0.2%

-54.4%

-6.0%

-10.4%

-16.9%

Woodpanels

Wood panels

Wood panels

Wood panels

Wood panels

YTD 2017

YTD 2017

YTD 2017

YTD 2017

YTD 2017

YTD 2018

YTD 2018

YTD 2018

YTD 2018

YTD 2018

Forest

Forest

Forest

Forest

Forest

Metals

Metals

Metals

Metals

Metals

Sanitary ware

Sanitary ware

Sanitary ware

Sanitary ware

Sanitary ware

Ceusa

Ceusa

Ceusa

Ceusa

Ceusa

Hydra

Hydra

Hydra

Hydra

Hydra

1,795

,262

4,237

,647

5,886

977,4

78

1,070

,802

156,9

99

217,6

52

1,992

1,778

141,7

53

559,0

26

7,478

48,62

7

98,37

6

17,63

4

15,50

2

147

17,63

5

14,87

5

109,0

86

109,0

86

293

60,08

2

81,37

3

1,869

,019

4,254

,442

2,683

812,5

25

1,149

,719

114,8

34

217,2

17

1,872

1,592

156,1

45

520,1

40

6,395

40,01

3

95,22

2

13,99

7

15,65

2

209

13,99

7

15,03

2

33,07

8

330,8

12

1,371

33,07

8

43,72

2

63,10

7

113,0

48

164

40,35

5

85,29

6

10.2%

4.1%

0.4%

Duratex

YTD 2017 YTD 2018

86,777

76,578

-11.8%

-42.1%

3.6% 1.0%

42.3%

7.4%

4.8% 1.1%

-32.8%-20.6%

-7.0%

-14.5%

-43.8%

-20.6%-17.7%

-3.21%

TFA 2017 TFA 2018

0

2.0

4.0

6.0

8.0

10.0

3.65 3.58

8.92

0.0

4.19

2.53

4.11

1.65

3.682.78

0.00.0

Deca Hydra Woodpanels

Forest Headquartes Duratex

*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).

m3 w

aste

wat

eren

ergy

GJv

t CO

2e


Acknowledgements

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

The Management


CONSOLIDATED ASSETS 06/30/18 AV% 06/30/17 AV% 03/31/18 AV%

CURRENT 3,313,163 34.9% 2,949,932 32.5% 2,865,796 31.2%

Cash and cash equivalents 826,516 8.7% 1,035,525 11.4% 800,786 8.7%

Trade accounts receivable 971,535 10.2% 784,546 8.6% 891,335 9.7%

Related parties accounts receivable 40,949 0.4% 38,249 0.4% 30,781 0.3%

Inventories 876,314 9.2% 875,549 9.6% 785,866 8.5%

Other receivables 185,224 2.0% 49,870 0.5% 66,313 0.7%

Recoverable taxes and contributions 162,565 1.7% 142,188 1.6% 139,673 1.5%

Other credits 18,313 0.2% 18,497 0.2% 18,323 0.2%

Non current assets available for sale 231,747 2.4% 5,508 0.1% 132,719 1.4%

NON-CURRENT 6,174,728 65.1% 6,135,316 67.5% 6,330,386 68.8%

Restricted deposits 53,982 0.6% 51,802 0.6% 52,756 0.6%

Other receivables 111,742 1.2% 66,949 0.7% 104,145 1.1%

Pension plan credits 104,899 1.1% 101,746 1.1% 106,152 1.2%

Recoverable taxes and contributions 11,547 0.1% 14,506 0.2% 12,873 0.1%

Deferred income tax and social contribution 319,737 3.4% 260,798 2.9% 312,893 3.4%

Investments in subsidiaries and associates 5,588 0.1% - 0.0% 6,029 0.1%

Other investments 3,446 0.0% 921 0.0% 3,523 0.0%

Property, plant and equipment 3,346,080 35.3% 3,519,380 38.7% 3,379,760 36.8%

Biological assets 1,559,202 16.4% 1,598,673 17.6% 1,692,970 18.4%

Intangible assets 658,505 6.9% 520,541 5.7% 659,285 7.2%

TOTAL ASSETS 9,487,891 100.0% 9,085,248 100.0% 9,196,182 100.0%

Financial Statements


CONSOLIDATED LIABILITIES AND STOCKHOLDERS' EQUITY

06/30/18 AV% 06/30/17 AV% 03/31/18 AV%

CURRENT 1,159,729 12.2% 1,284,360 14.1% 1,450,927 15.8%

Loans and financing 447,545 4.7% 698,675 7.7% 836,053 9.1%

Suppliers 358,737 3.8% 289,648 3.2% 301,141 3.3%

Personnel 125,227 1.3% 116,256 1.3% 105,514 1.1%

Accounts payable 155,051 1.6% 135,691 1.5% 149,896 1.6%

Related parties accounts payable 2,640 0.0% 2,640 0.0% 2,640 0.0%

Taxes and contributions 70,097 0.7% 40,951 0.5% 55,266 0.6%

Dividends and interest on capital 432 0.0% 499 0.0% 417 0.0%

NON-CURRENT 3,331,152 35.0% 3,203,502 35.2% 2,973,844 32.2%

Loans and financing 2,542,072 26.8% 2,444,927 26.9% 2,180,799 23.7%

Contingencies 114,697 1.2% 110,272 1.2% 112,892 1.2%

Deferred income tax and social contribution

481,815 5.1% 467,241 5.1% 485,022 5.3%

Accounts payable 192,568 2.0% 181,062 2.0% 195,131 2.1%

STOCKHOLDERS' EQUITY 4,997,010 52.7% 4,597,386 50.6% 4,771,411 51.9%

Capital 1,970,189 20.8% 1,970,189 21.7% 1,970,189 21.4%

Costs on issue of shares (7,823) -0.1% (7,823) -0.1% (7,823) -0.1%

Capital reserves 346,564 3.7% 343,439 3.8% 345,640 3.8%

Capital transactions with partners (18,731) -0.2% (18,731) -0.2% (18,731) -0.2%

Revaluation reserves 55,085 0.6% 59,894 0.7% 56,912 0.6%

Revenue reserves 2,172,263 22.9% 1,871,304 20.6% 2,004,314 21.8%

Carrying value adjustments 505,245 5.3% 406,132 4.5% 447,640 4.9%

Treasury shares (27,087) -0.3% (27,931) -0.3% (27,851) -0.3%

Noncontrolling interests 1,305 0.0% 913 0.0% 1,121 0.0%

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 9,487,891 100.0% 9,085,248 100.0% 9,196,182 100.0%


CONSOLIDATED IFRS

Consolidates profit and loss statement (BRL '000) 2Q/18 2Q/17 Var % 1Q/18 Var % 1H/18 1H/17 Var %

2T18 X 2T17

2T18 X 1T18

1H18 X 1H17

NET SALES REVENUE 1,167,477 916,724 27.4% 1,005,982 16.1% 2,173,459 1,868,713 16.3%

Domestic market 928,670 756,489 22.76% 828,898 12.04% 1,757,568 1,559,591 12.69%

Foreign market 238,807 160,235 49.04% 177,084 34.86% 415,891 309,122 34.54%

Variations in the fair value of biological assets

29,271 38,582 -24.13% 42,579 -31.25% 71,850 81,303 -11.63%

Cost of products sold (690,982) (587,806) 17.55% (645,345) 7.07% (1,336,327) (1,217,183) 9.79%


Depletion of adjustment in the biological assets

(64,135) (27,384) 134.21% (31,146) 105.92% (95,281) (61,462) 55.02%

GROSS PROFIT 309,858 245,306 26.3% 274,318 13.0% 584,176 477,398 22.4%



Management fees (4,193) (3,893) 7.71% (4,059) 3.30% (8,252) (7,683) 7.41%

Other operating income (expenses), net 194,472 32,883 491.41% 2,035 9456.36% 196,507 35,875 447.75%

OPERATING PROFIT BEFORE FINANCIAL RESULT AND TAXES 293,805 86,094 241.3% 84,313 248.5% 378,118 135,901 178.2%

Financial income 39,965 44,598 -10.39% 18,074 121.12% 58,039 86,268 -32.72%

Financial expenses (88,509) (103,682) -14.63% (61,349) 44.27% (149,858) (208,186) -28.02%

PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 245,261 27,010 808.0% 41,038 497.6% 286,299 13,983 1947.5%

Income tax and social contribution − current

(98,089) (7,120) 1277.65% (16,794) 484.07% (114,883) (24,687) 365.36%

Income tax and social contribution − deferred

19,412 4,877 298.03% 6,579 195.06% 25,991 27,957 -7.03%

NET INCOME FOR THE PERIOD 166,584 24,767 572.6% 30,823 440.5% 197,407 17,253 1044.2%


STATEMENT OF CASH FLOW AV% AV%

2Q18 2Q17 2Q18 x 2Q17 1Q18 2Q18 X 2Q17

PROFIT (LOSS) BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 245,261 27,010 808.0% 41,038 497.6%

ADJUSTMENTS:Depreciation, amortization and depletion 207,715 132,545 56.7% 140,577 47.8%

Variations in the fair value of biological assets (29,271) (38,582) -24.1% (42,579) -31.3%

Interest, foreign exchange and monetary variations, net

58,632 97,111 -39.6% 55,158 6.3%

Provisions, disposal of assets 85,248 24,228 251.9% 2,876 2864.1%

INVESTMENTS IN WORKING CAPITAL (377,986) (156,569) 141.4% (104,143) 262.9%

(Increase)/Decrease in assets Trade accounts receivable (90,590) 4,028 -2349.0% 42,826 -311.5%

Inventory (85,959) (97,764) -12.1% (13,905) 518.2%

Other assets (282,675) (64,864) 335.8% (7,703) 3569.7%

Increase (Decrease) in liabilities Suppliers 51,609 28,843 78.9% 2,981 1631.3%

Personnel liabilities 19,408 23,191 -16.3% (13,700) -241.7%

Accounts payable (1,297) (756) 71.6% (20,110) -93.6%

Taxes and contributions 15,576 (37,939) -141.1% (91,217) -117.1%

Other liabilities (4,058) (11,308) -64.1% (3,315) 22.4%

Cash provided by operations 189,599 85,743 121.1% 92,927 104.0%

Income tax and social contribution paid (100,848) (4,214) 2293.2% (15,217) 562.7%

Interest paid (36,721) (46,373) -20.8% (40,378) -9.1%

CASH PROVIDED BY OPERATING ACTIVITIES 52,030 35,156 48.0% 37,332 39.4%

INVESTMENT ACTIVITIES: Investments in fixed assets (61,339) (52,608) 16.6% (35,038) 75.1%

Investments in intangible assets (6,693) (2,030) 229.7% (3,108) 115.3%

Investments in biological assets (47,278) (43,761) 8.0% (43,134) 9.6%

Receipt by sale of property, plant and equipment

125,981 - 534 -

CASH USED IN INVESTMENT ACTIVITIES 10,671 (98,399) -110.8% (80,746) -113.2%

FINANCING ACTIVITIES: Financing 385,000 1,143 33583.3% 4,850 7838.1%

Amortization of financing (428,021) (122,037) 250.7% (177,008) 141.8%

Interest on capital and dividends - (38) -100.0% (60,773) -100.0%

Treasury shares 764 - -

NET CASH FLOW FROM FINANCING ACTIVITIES (42,257) (120,932) -65.1% (232,931) -81.9%

Exchange variations on cash and cash equivalents

5,286 221 2291.9% 2,767 91.0%

INCREASE (DECREASE) IN CASH FOR THE PERIOD 25,730 (183,954) -114.0% (273,578) -109.4%

OPENING BALANCE 800,786 1,219,479 -34.3% 1,074,364 -25.5%

FINAL BALANCE 826,516 1,035,525 -20.2% 800,786 3.2%

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