FACT SHEET 1Q2020 - Duratex · to Suzano Papel e Celulose and others. (4) EBITDA adjusted for...

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MARKET CAP (31/03/2020)

R$6.45bn

CLOSING SHARE PRICE ON 31/03/2020

R$9.35

NUMBER OF SHARES IN ISSUE - MARCH

691,784,501

TREASURY SHARES

1,642,337

FREE FLOAT

40%

Duratex Investor Relations

Director of Investor Relations: Carlos Henrique Pinto Haddad

Manager: Guilherme Setubal Souza e Silva

[email protected]

Teleconference Webcast:

Thursday May 7, 2020

Portuguese (simultaneous translation): Time: 10h30

((Brasilia time; 9:30a.m. NYT) Support materials: www.duratex.com.br/ri

To connect:

Participants in Brazil: +55 11 3181-8565 or +55 11 4210-1803 Participants in the USA: Dial-in: +1 844 204-8942 or +1 412 717-9627 (English only) Access code: Duratex

Web-conference: www.duratex.com.br/ri

FACT SHEET

1Q2020

HEADLINES

COVID-19 is already impacting volumes across all the divisions;

Adjusted and Recurring EBITDA of R$219.3m in 1Q20, an

increase of 22.3% on 1Q20, and margin of 18.9%, when

excluding spending associated with the dissolving wood pulp

project;

Cash generation of R$635.0m, ensuring the Company retained

healthy levels of liquidity and balanced cash flow;

Wood Division:

Increase in sales volumes of wood panels to the external

market over the 4Q19;

Excellent cost management contributing to an EBITDA Margin

of 22.9% versus the 18.7% shown in 1Q19;

Deca Division:

Fall of 8.8% in sales volumes explained mainly by the COVID-

19 pandemic;

Increase of 5.0% in unit revenue, arising from the improved

product mix and pricing strategy;

Ceramic Tiles Division:

Launch of the new product lines, focused on the large

designs which ramped up the new line;

EBITDA Margin of 19.5% in 1Q20, reflecting the success in

capturing synergies;

Dissolving Wood Pulp: Start of the construction of the new

dissolving wood pulp unit.

For those unable to accompany the conference calls live, full audio playback will be available via the Company's website (www.duratex.com.br/ri).

mailto:[email protected]

http://www.duratex.com.br/ri

http://www.duratex.com.br/ri)

COVID-19

Since the beginning of the outbreak of COVID-19, the Company has sought measures that prioritize the health and safety of its workers. Thus, a Crisis

Committee has been formed, made up of executives from different areas, whose objective is to serve as an information center, managing risks and responses

and aligning interested parties, while always counting on the support of health specialists. Within the Committee, 5 fronts of operation have been set up: People

& Communication, Manufacturing/Supply, Sales, IT and Finance.

On the People & Communication front, actions plans are being developed that aim to minimize the impact on the community, protect the work force and provide

effective communication. Within this front, actions taken include the introduction of ‘home office’ (working from home) for the administrative and sales areas,

reducing the flow of workers and physical contact at the business units; the reinforcement of hygiene and disinfecting practices at our business units and head

office, especially with relation to refectories, transport areas and common areas; the increase in the size of the transport fleet to facilitate distancing measures;

and work plans for each business unit.

Providing all of the support necessary to ensure workers’ safety while continuing to carry out their activities, the IT front is focused on ensuring that all systems

and connections can support operations being carried out through the new Home Office model.

On the Manufacturing/Supply front, the Company is reviewing the operating/production model, assessing the risks concerning restocking from suppliers, while

managing the relationship with the same. This front manages all of the specific activities with our new partners, with a view to adapting them to the current

environment. This front is also carrying out Strategic Inventory management for the Company, managing the productive and supply chains with a view to

ensuring the best use of resources. Within the activities carried out is the temporary suspension of the Wood Division units, along with the electric shower unit

and the Queimados sanitary wares unit (RJ), as well as reduction in production capacity at the remaining units of the Deca and Ceramic Tiles Divisions. It

should be mentioned that some of these units have already re-started operations, while we continue to balance supply with demand.

In parallel to the strategic inventory analysis, the Company is aiming, through the Sales front, to guarantee supply to all of its clients, while respecting

governmental restrictions. Moreover, we are highly committed to preserving the relationship with clients, something we view as fundamental, with a view to

exploring the best solutions for continuing operations and securing partnerships for the long term.

On the Finance front, given the difficulty in measuring the impacts on the Economy arising from the pandemic, Duratex is focused on ensuring financial liquidity,

such as through the ongoing work on debt management being carried out, which has captured R$1.4bn, with R$635m in March and R$760m in April, and more

in the pipeline. It is important to mention that 100% of the payments programmed for 2020, including the dissolving wood pulp project and the continuity of

operations, have been addressed in this initiative. In addition, the Company is focused on reducing its costs and expenses, optimizing the maintenance of its

assets and focusing on the projects, which are essential to its activities. Through these actions, Duratex hopes to ensure its financial security, something that

is fundamental in moments of crisis.

As a way of contributing and helping society and, especially, the communities where it operates, the Company donated more than R $ 2.6 million in products

from the Deca and Duratex brands, in addition to masks and hygiene items, for public hospitals and organs linked to health, with the purpose of fighting the

epidemic.

In addition to all of the efforts mentioned above, the Company is directing some of its time to preparing for the moment when normal activities will resume, with

detailed plans that enable the re-start of operations at any of its units at very short notice. It remains focused on understanding the new dynamics of the market,

with a view to supporting the market needs as they arise, while always seeking to be a pioneer in innovation and quality in attending our clients.

Consolidated Financial Results

(1) Non-recurring event: 1Q20: COGS: restructuring of ceramic finishings (+) R$ 624.0k; 4T19: COGS: wood restructuring (+) R$ 19,923k, review of inventory policy (+) R$ 59,572k, Deca restructuring (+) R$ 2,889k, ceramic finishings restructuring (+) R$ 6,699k; Net Revenue: disposal of forestry assets (-) 4.546k; 1Q19: Net Revenue: disposal of forestry assets (-) R$ 5,535k; (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measure of operational performance in accordance with CVM Instruction CVM 527/12. (3) Event of extraordinary nature: 1Q20: sales of farms and other assets (-) R$ 2,281k, inventory provision reversal (-) R$ 1,600k, ceramic finishings restructuring (+) R$ 1,712k; 4T19: wood restructuring (-) R$ 433,778; Deca

restructuring (-)18,241k, restructuring of ceramic finishings (-) R$ 25,500k, review of inventory policy (-) R$ 59,572k, bad debt provisions (-) R$ 3,035k, national insurance provision (-) R$ 12,760k, rouanet law (-) R$ 4,406k, reversal of ICMS base calculation of PIS/COFINS (social security contributions) (-) R$ 16,415k; 1Q19: net operating income of R$ 25,474, relating to the sale of forests

to Suzano Papel e Celulose and others. (4) 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. (5) Current liquidity: current assets divided by current liabilities. Indicates the amount available in R$ to cover each R$ of short-term obligations. (6) Net Corporate Debt: Total Financial Debt (–) Cash balance. (7) Financial leverage calculated on the rolling EBITDA over the last 12 months, adjusted for events of a purely accounting and non-cash nature. (8) ROE (Return on Equity): measure of performance obtained by taking the annualized Net Earnings over the period, annualized, and dividing by Average Net Equity. (9) 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 1Q20 1Q19 % 4Q19 %

Highlights

Volume shipped Deca (‘000 items) 5,240 5,748 -8.8% 7,011 -25.3%

Volume shipped Ceramic tiles (m2) 4,851,703 1,242,396 290.5% 5,830,102 -16.8%

Volume shipped Wood (m3) 587,958 598,258 -1.7% 653,733 -10.1%

Consolidated Net Revenue 1,161,588 1,072,534 8.3% 1,486,157 -21.8%

Consolidated Net Revenue - Pro Forma (1)1,161,588 1,048,549 10.8% 1,378,757 -15.8%

Gross profit 388,226 281,460 37.9% 315,501 23.1%

Gross profit - Pro Forma (1)388,850 275,925 40.9% 400,039 -2.8%

Gross margin 33.4% 26.2% 21.2%

Gross margin - Pro Forma (1)33.5% 26.3% 29.0%

EBITDA according to CVM No. 527/12 (2)266,343 228,776 16.4% 596,810 -55.4%

EBITDA Mg CVM No. 527/12 22.9% 21.3% 40.2%

Adjustments for non-cash events (64,032) (23,995) 166.9% (27,390) 133.8%

Non-recurring events (1)(3)(2,169) (25,474) -91.5% (291,085) -99.3%

Adjusted and Recurring EBITDA (4)200,142 179,307 11.6% 278,335 -28.1%

Adjusted and Recurring EBITDA margin (1)(3)17.2% 17.1% 18.7%

Net Income 51,991 23,898 117.6% 284,736 -81.7%

Recurring Net Income 50,560 19,262 162.5% 157,775 -68.0%

Recurring net margin 4.4% 1.8% 11.4%

INDICATORS

Current ratio (5)1.92 1.91 0.2% 1.63 17.4%

Net debt (6)2,058,761 2,010,152 2.4% 1,705,318 20.7%

Net debt / EBITDA LTM(7)2.21 2.38 -6.8% 1.88 18.0%

Average Shareholder's equity 4,854,767 4,652,880 4.3% 4,849,252 0.1%

ROE (8)4.3% 2.1% 23.5%

Recurring ROE 4.2% 1.7% 13.0%

SHARES

Earnings per share (BRL) (9)0.0753 0.0346 117.6% 0.4128 -81.8%

Closing share price (BRL) 9.35 10.97 -14.8% 16.72 -44.1%

Net equity per share (BRL) 6.92 6.77 2.2% 7.15 -3.2%

Treasury Shares 1,642,337 2,191,131 -25.0% 2,051,716 -20.0%

Market Cap (BRL1.000) 6,452,829 7,564,839 -14.7% 11,532,332 -44.0%

Market & Business Scenario

In the midst of a gradual economic recovery, the year 2020 began with a slight improvement in the main indicators of consumer and business

confidence. However, the advent of the COVID-19 pandemic, in the middle of March, has led to the temporary paralyzation of economic activity and

uncertainty surrounding any resumption, as well as difficulties in measuring the impact on the global and Brazilian economy. In Brazil, the efforts of

the Government in adopting compensatory measures, with the reduction in interest rates to 3.75% together with monetary and fiscal stimuli, seek to

preserve income and employment levels, but their impact is as yet unclear. The results from the first quarter, despite the possible softening of any

impact, already suggest signs of economic slowdown across all sectors, reflected in the fall in the estimates for the quarterly GDP growth from 2.2%

to 0.0%.

Given this scenario, the Brazilian Association of Construction Materials (ABRAMAT) until the month of February, reported a drop of 2.2% in deflated

revenue year-to-date in the civil construction materials industry construction, in relation to the same two-month period of the previous year, with the

billing of the sale and base products having decreased by 1, 5% and finished products 3.4%.

According to the National Association of Ceramic Manufacturers (ANFACER), the market for ceramic tiles reported a fall of 3.7% in the first quarter

of 2020, with sales volumes of 207.4 million m², of which 146.0 m² was sold in the first two months of the year. In the internal market, sales fell 3.8%,

while exports fell by 2.5% in the same period.

In 1Q20, the wood panels sector, according to data from the IBÁ (the Brazilian Panel Industry), saw a fall of 1.2% in local demand for wood panels

compared to the same quarter last year, with volumes of MDP showing a fall of 3.0% and MDF an increase of 0.2%. In the external market, there was

an increase of 4.8% in comparison to 1Q19, with exports of MDP and MDF falling 11.3% and 0.6% respectively.

Recognizing the difficulty of measuring the recessionary impacts arising from the COVID-19 pandemic, the GDP projections for 2020 from the FOCUS

research by the Central Bank is for GDP to shrink 3.3%.

Strategic Management & Investment

Consolidated investment totaled R$96.1m in the quarter, of which R$66.3m was in fixed and intangible assets and R$29.8m in the development of

biological assets. Within the investment in fixed assets was the disbursement of R$4.2m for the project to expand the ceramic tiles unit, which began

operations in October 2019.

It should be noted that the Company is reviewing all of its investment and costs foreseen for the year 2020, with a view to reducing spend as much

as possible, so as not to jeopardize its operations while ensuring the least consumption of cash during the current scenario.

Consolidated Financial Results (IFRS) NET REVENUE Consolidated net revenue for the first quarter of 2020 was R$1.16bn, growth of 8.3%

in relation to the same period the previous year, due mainly to the incorporation of

results from Cecrisa Revestimentos Cerâmicos. It should be noted that with the

consolidation and process of capturing synergies, the result of the Ceramic Tiles

Division now represents 15.5% of the Company's total net revenue.

It is worth noting that, despite the growth shown, results for the quarter have been

impacted by the reduction in internal demand arising from the COVID-19 pandemic.

Net Revenue arising from the external market was R$220.3m, an increase of 14.4%

in relation to the first quarter of 2019. The external market’s share of total revenue

represented 19.0%, an increase of 1.0 p.p in relation to the previous year. This

growth is explained by greater currency fluctuation in the period, which favored the profitability of products exported by the Company.

COST OF GOODS SOLD The 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 out the first three months of the year at R$715.7m, an increase of 9.0% in relation to the same period of 2019. This change arose

from the incorporation of the results from Cecrisa, and from the increase in expenditure on imported raw materials on the back of the currency

devaluation, despite being partially compensated by the internal initiatives for reducing costs and expenses driven by the Duratex Management

System (SGD).

The Company’s gross margin closed out the first quarter at 33.4%, an increase of 7.2 p.p in relation to the same period last year, leveraged by a

positive variance in biological assets, arising from forestry inventory in Minas Gerais, and lower depreciation and exhaustion following the recent

restructuring of assets carried out.

BRL '000 - consolidated 1Q20 1Q19 % 4Q19 %

Net revenue 1,161,588 1,072,534 8.3% 1,486,157 -21.8%

Domestic market 941,337 879,992 7.0% 1,270,675 -25.9%

Foreign Market 220,251 192,542 14.4% 215,482 2.2%

Exports 115,564 86,719 33.3% 106,543 8.5%

Duratex Colombia 104,687 105,823 -1.1% 108,939 -3.9%

Net Revenues Breakdown

(% in 1Q2020):

55,8%28,7%

15,5%

WOOD

DECA

CERAMIC TILES

(1) Non-recurring event: 1Q20: COGS: restructuring of ceramic tiles (+) R $ 624.0 thousand; 4Q19: COGS: wood restructuring (+) R$ 19,923k, review of inventory policy (+) R$ 59,572k, Deca

restructuring (+) R$ 2,889k, ceramic finishings restructuring (+) R$ 6,699k; Net Revenue: disposal of forestry assets (-) 4,546k, 1Q19: Net Revenue: disposal of forestry assets (-) R$ 5,535k.

SALES EXPENSES Sales expenses totaled R$181.6m for the period, growth of 12.3% in relation to 1Q19. This growth arose mainly from the incorporation of the

Ceramic Tiles Division, carried out in August 2019. Excluding this effect, sales expenses showed a fall of 4.3% in the period, due to lower spending

on international freight and a reduction in volumes shipped.

Sales expenses represented 15.6% of Consolidated Net Revenue, a deterioration of 0.5 p.p in relation to the same period in the previous year.

BRL´000 - Consolidated 1Q20 1Q19 % 4Q19 %

Cash COGS (715,662) (656,520) 9.0% (953,788) 14.9%

Non Recurring Event (1)624 - 0.0% 81,362 0.0%

Cash COGS Pro Forma (715,038) (656,520) 9.0% (872,427) 5.5%

Variation in fair value of biological assets 68,537 19,173 257.5% 17,279 42.5%

Depletion of biological assets (21,545) (38,487) -44.0% (73,088) 151.5%

Depreciation, amortization and depletion (104,692) (115,240) -9.2% (161,059) 44.3%

Gross Profit 388,226 281,460 37.9% 315,501 -9.7%

Recurring Gross Profit (1)388,850 275,925 40.9% 400,039 -2.8%

GROSS MARGIN 33.4% 26.2% 21.2%

Recurring Gross Margin (1)33.5% 26.6% 29.0%

BRL‘000 – ex Duratex Colombia 1Q20 1Q19 % 4Q19 %

Cash COGS (652,194) (595,365) 9.5% (885,862) -26.4%

Variation in fair value of biological assets 67,705 19,136 253.8% 16,989 298.5%

Depletion of biological assets (21,545) (38,487) -44.0% (73,088) -70.5%

Depreciation, amortization and depletion (99,043) (109,596) -9.6% (155,779) -36.4%

Gross profit 351,824 242,399 45.1% 279,478 25.9%

Gross margin 33.3% 25.1% 20.3%

Net revenue (BRL million) –

ex Duratex Colombia

Cash cost (BRL million) and Gross Margin (%) –

ex Duratex Colombia

966.71,039.6

1,200.8

1,377.2

1,056.9

1Q19 2Q19 3Q19 4Q19 1Q20

25.1

29.9

26.020;3

33.3

595.4

670.7 765.3

885.9

652.2

1Q19 2Q19 3Q19 4Q19 1Q20

BRL‘000 – consolidated 1Q20 1Q19 % 4Q19 %

Selling expenses (181,586) (161,709) 12.3% (200,561) -9.5%

% of net revenue 15.6% 15.1% 13.5%

GENERAL & ADMINISTRATIVE EXPENSES General and admin expenses closed out the first quarter of the year at R$53.2m, an

increase of 14.0% in relation to the same period of the previous year. However, it’s worth

remembering that in 1Q19, the Company still hadn’t incorporated Cecrisa into its results,

so if we discount this effect, growth was only 2.7%.

As a proportion of net revenue, general and admin expenses were 4.6% in the quarter.

EBITDA The following table shows a reconciliation of the EBITDA, in accordance with CVM instruction 527/12. From this result, and as a way of better

identifying the Company’s generation of cash from operations, two adjustments have been made: the purging of events of an accounting and non-

cash nature from the EBITDA and the discounting of events of an extraordinary nature. Thus, aligned with best practices, the table below shows the

calculation of the indicator that best reflects the Company’s cash generation.

(1) Event of extraordinary nature: 1Q20: Inventory provision reversal in the Wood Division(-) R$ 1,600k; sale of assets and forests (-) R$2,281k; restructuring of ceramic tiles (+) R$ 1,712k; 4T19:

wood restructuring (-) R$ 433,778; Deca restructuring (-)18,241k, restructuring of ceramic tiles (-) R$ 25,500k, review of inventory policy (-) R$ 59,572k, bad debt provisions (-) R$ 3,035k, national

insurance provision (-) R$ 12,760k, rouanet law (-) R$ 4,406k, reversal of ICMS base calculation of PIS/COFINS (social security contributions) (-) R$ 16,415k; 1Q19: Sale of forests controlled by

Duratex Florestal in operation with Suzano (-) R$ 23,985k sale of forests to third parties (-) R$ 1,489k;.


General and administrative expenses (53,176) (46,643) 14.0% (65,851) -19.2%

% of net revenue 4.6% 4.3% - 4.4% -

EBITDA reconciliation in BRL‘000 – consolidated 1Q20 1Q19 % 4Q19 %

Net income 51,991 23,898 117.6% 284,736 -81.7%

Income tax and social contribution 30,398 10,536 188.5% 26,742 13.7%

Net f inancial result 43,263 28,526 51.7% 38,108 13.5%

EBIT 125,652 62,960 99.6% 349,586 -64.1%

Depreciation, amortization and depletion 119,146 127,329 -6.4% 174,136 -31.6%

Depletion of biological assets 21,545 38,487 -44.0% 73,088 -70.5%

EBITDA according to CVM No. 527/12 266,343 228,776 16.4% 596,810 -55.4%

EBITDA margin CVM No. 527/12 22.9% 21.3% 40.2% -

Change in fair value of biological assets (68,537) (19,173) 257.5% (17,279) 296.6%

Employee benefits 4,505 (4,822) -193.4% (10,111) -144.6%

Non-Recurring events (1)(2,169) (25,474) -91.5% (291,085) -99.3%

Adjusted and Recurring EBITDA 200,142 179,307 11.6% 278,335 -28.1%

Adjusted and Recurring EBITDA margin 17.2% 17.1% 18.7%

Sales Expenses (BRL million) and % in relation to

Net Revenue – excl. Duratex Colômbia:

152.4 158.8174.2

190.7 171.3

1Q19 2Q19 3Q19 4Q19 1Q20

15.8 15.3

14.513.8

16.2

In the quarter, the Adjusted and Recurring EBITDA totaled R$200.1m, an increase

of 11.6% in relation to the first quarter of 2019, arising from an improvement in the

Wood Division and from consolidation of the results from Cecrisa in the Ceramic

Tiles Division. The margin reported for the period was 17.2%, in line with that

reported for the same period in the previous year.

It should be noted that the Adjusted and Recurring EBITDA was impacted by the

consolidation of the new Dissolving Wood Pulp division, whose results obtained

through asset equivalence were negative by R$19.2m. Excluding this effect, the

Adjusted and Recurring EBITDA was R$219.3m in the first quarter of 2020, a

growth of 22.3% over 1Q19.

FINANCIAL RESULTS

The Company reported a loss of R$43.3m in its financial results in the first quarter of the year, 51.7% greater than for the same period in 2019. Total

financial income was R$64.2m, an increase of 154.0% versus 1Q19, arising from an improved cash position and and exchange variation for the

period. On the other hand, total financial costs were R$107.5m for the quarter, 99.8% greater than for the same quarter in 2019. This increase

stemmed from growth in gross corporate debt, arising from the incorporation of Cecrisa’s debt, and from Company’s focus on improving liquidity in

the face of the economic crisis caused by COVID-19.

NET INCOME Recurring net income reached R$50.6m in the quarter, 162.5% greater than for the same period the previous year. This result stems from the positive

impacts in the variation of biological assets, due to the adjustments to forestry inventory located in Minas Gerais; from the improvement in results in

the Wood Division; and from the incorporation of the results from Cecrisa.

The recurring ROE for 1Q20 was 4.2%, a significant improvement compared to the previous periods, reinforcing the Company’s gradual operational

improvement.

(1) Net effect of events of an extraordinary nature to note: 1Q20: Inventory provision reversal in the Wood Division (-) R$ 1,600k; sale of assets and forests (-) R$ 962k; restructuring of ceramic tiles

(+) R$ 1,130k; 4Q19: restructuring of the Wood Division (-) R$ 187,575k, Deca restructuring (+) R$ 41,034k, restructuring of ceramic tiles (+) 19,500k; 1Q19: extraordinary adjustments related to the

disposal of land and forest R$ 4,636k.

ADDED VALUE Added Value in the year totaled R$502.1m. Of this amount, R$135.5m, equivalent to

27.0% of the Added Value, was paid to the federal, state and municipal governments in

the form of tax and social security contributions.


Financial revenues 64,229 25,286 154.0% 17,320 270.8%

Financial expenses (107,492) (53,812) 99.8% (55,428) 93.9%

Net financial result (43,263) (28,526) 51.7% (38,108) 13.5%


Net earnings 51,991 23,898 117.6% 284,736 -81.7%

Non-recurring events (1)(1,431) (4,636) -69.1% (126,961) -98.9%

Recurring net income 50,560 19,262 162.5% 157,775 -68.0%

ROE 4.3% 2.1% 23.5%

Recurring ROE (1)4.2% 1.7% 13.0%

Origin of Adjusted and

Recurring EBITDA in 1Q2020:

66,4%

17,3%

16,3%

WOOD

DECA

CERAMIC TILES

Distribution of Added Value in 1Q20

41,3

27

21,4

10,4

Labor Remuneration

Government Remuneration

Financing Remuneration

Shareholders Remuneration

CASH FLOW

(1) EBITDA: disregards the amounts of R $ 19.2 million related to the consolidation of the new Dissolving Wood Pulp unit; (2) Projects: 1Q20 Bracell transaction taxes: (-) R $ 46 million; DWP project:

(-) R $ 19 million; Ceramic tile expansion: (-) R$ 4 million; 4Q19: Expansion of the ceramic tiles unit (-) R$ 8,121k; Cecrisa acquisition (-) R$ 36,665k; Payment of Cecrisa contingencies (-) R$ 39,190k;

Investment in landscaping of the new dissolving wood pulp factory (-) R$ 36,800k; Disposal of land and forests (+) R$ 420,745k; Restructuring ceramic tiles unit (-) R$ 14,338k; Debt restructuring (-)

2,952k; Other (-) 11,210k; 1Q19: Expansion of the ceramic tiles unit (-) R$ 1,716k.

The Company’s actions in mitigating the effects of the current COVID-19 crisis on its results are already partially reflected in its management of

working capital in the quarter. Even with the positive result of the structural review of the supplier term, the increase in inventories, due to the drop in

sales at the end of the quarter, added at the customer extensions ended up generating negative impacts on its working capital. This deterioration

together with the payment of taxes arising from the sale of land and forest in 3Q19, has led to the Company consuming R$69.4m in cash.

It should be noted that the Company remains focused on improving its working capital position and on generating cash, even in the face of an

uncertain scenario.

CORPORATE DEBT The Company’s net debt position at the end of the first quarter stood at R$2.059bn, R$353.4m greater than at the end of 4Q19, which took the

leverage index to 2.21x (Net Debt over Adjusted & Recurring EBITDA). This increase stemmed mainly from the payment of interest on own capital

(R$257.6m) arising in the period and a fall in the generation of cash due to greater consumption of working capital.

The average cost of financing ended the period at 113.2% of CDI, an increase of 3.2 p.p. on the fourth quarter of 2019. The average financing term

was 3.6 years. The Company is committed to strengthening both its cash and liquidity positions, with a view to increasing its financial robustness in

this time of uncertainty to reflect the current market conditions.

(R$ millions) 1Q20 1Q19 % 4Q19 %

Total EBITDA 219.3 179.3 22.3% 278.3 -21.2%

CAPEX (97.6) (80.0) 22.0% (111.3) -12.3%

EBITDA - CAPEX 121.7 99.3 22.5% 167.0 -27.1%

Δ Working Capital (121.4) (114.3) - 313.7 -

Cash provided by operations 0.3 (15.0) -101.7% 480.7 -99.9%

Income tax and social contribution paid (8.0) (18.1) -55.5% (12.5) -35.6%

Financial f low (4.8) (10.3) -53.8% (117.8) -95.9%

Others 12.4 27.4 9.3

Free Cash Flow (0.2) (16.0) -99.0% 359.8 -100.0%

Projects (69.0) (1.7) 3920.8% 270.0 -125.6%

Free Cash Flow ex-Projects (69.2) (17.7) 291.1% 629.8 -111.0%

BRL‘000 03/31/2020 03/31/2019 Var R$ 12/31/2019 Var R$

Short-Term debt 877,083 628,512 248,571 871,865 5,218

Long-Term debt 2,510,753 2,017,044 493,709 2,076,675 434,078

Total debt 3,387,836 2,645,556 742,280 2,948,540 439,296

Cash and equivalent 1,329,075 635,404 693,671 1,243,223 85,852

Net debt 2,058,761 2,010,152 48,609 1,705,317 353,444

Net debt/Adjusted and Recurring EBITDA 2.21 2.38 1.88

Net debt/Equity (in %) 43.1% 43.0% 34.6%

DIVIDENDS

Shareholders are statutorily guaranteed a minimum dividend corresponding to 30% of the adjusted net income for the period.

Following a resolution from the Board, interest on own capital was paid to the value of R$257.6m or R$0.3734054776 per share, with 15% tax retained

at source except for corporate shareholders who are proven to be immune or exempt, resulting in net interest of R$0.31739465596 per share. This

interest was calculated based on the closing share price on 16/12/2019, with the monies credited individually to each registered shareholder on

30.12.2019.

Subsequent Event

Continuing the process of debt reprofiling and of reinforcing the cash position, during the month of April/20, the Company raised R$760m from major financial institutions for working capital, with a term of 1 year.

On April 6, 2020, the Company paid in R$62,720 to the affiliate LD Celulose S.A., relating to part of the issue on January 15, 2020.

Gross corporate debt at the end of December 2019

(BRL million)

Debt Origin(%)

877,1

2.510,8

Short term

Long term

99

1

Local currency

Foreign currency

Operations

(1) Non-recurring event: 4Q19: COGS: wood restructuring (+) R $ 19,923 thousand, review of the inventory policy (+) R $ 34,529 thousand, Net Revenue: sale of forest assets (-) 107,400 thousand,

1Q19: Revenue Net: sale of forest assets (-) 23,985 thousand and sale of forests to third parties (-) R $ 1,489 thousand. COGS: depreciation, amortization and depletion (+) R $ 18,450 thousand,

related to the sale of forests to Suzano Papel e Celulose and others; (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operational performance in accordance

with CVM Instruction 527/12. (3) Event of an extraordinary nature: 1Q20: Reversal of inventory provision in the Wood Division (-) R $ 1,600 thousand; sale of assets and forests (-) R $ 2,281 thousand;

4Q19: wood restructuring (-) R $ 433,778; inventory policy review (-) R $ 34,529 thousand, PDD adjustments (-) R $ 3,035 thousand, INSS provision (-) R $ 12,760 thousand, rouanet law (-) R $ 4,406

thousand, reversal of ICMS PIS calculation base / COFINS (-) R $ 16,415 thousand; 1Q19: Sale of land and forests (-) 23,985 thousand and sale of forests to third parties (-) R $ 1,489 thousand

.

WOOD

HIGHTLIGHTS 1Q20 1Q19 % 4Q19 %

SHIPMENTS (in m³)

STANDARD 342,283 343,042 -0.2% 388,030 -11.8%

COATED 245,675 255,216 -3.7% 265,703 -7.5%

TOTAL 587,958 598,258 -1.7% 653,733 -10.1%

FINANCIAL HIGHLIGHTS (BRL`000)

NET REVENUE 647,967 678,122 -4.4% 829,814 -21.9%

NET REVENUE - Pro Forma (1) 647,967 654,137 -0.9% 722,414 -10.3%

DOMESTIC MARKET 468,072 503,299 -7.0% 652,638 -28.3%

FOREIGN MARKET 179,895 174,823 2.9% 177,176 1.5%

Net revenue per unit (BRL/m3 shipped) 1102.06 1133.49 -2.8% 1269.35 -13.2%

Net revenue per unit - Pro Forma (BRL/m3 shipped) (1)1102.06 1093.40 0.8% 1105.06 -0.3%

Cash cost per unit (BRL/m3 shipped) (657.46) (675.73) -2.7% (765.50) -14.1%

Cash cost per unit (BRL/m3 shipped) (1) (657.46) (675.73) -2.7% (682.21) -3.6%

Gross profit 234,722 166,249 41.2% 143,190 63.9%

Gross profit - Pro Forma (1) 234,722 160,714 46.0% 193,096 21.6%

Gross margin 36.2% 24.5% 17.3%

Gross margin - Pro Forma (1) 36.2% 24.6% 26.7%

Selling expenses (94,864) (100,604) -5.7% (87,385) 8.6%


Operating profit before f inancial results 111,655 38,170 192.5% 361,213 -69.1%

Depreciation, amortization and depletion 82,564 96,019 -14.0% 138,574 -40.4%

Depletion tranche of biological assets 21,545 38,487 -44.0% 73,088 -70.5%

EBITDA according to CVM No. 527/12 (2) 215,764 172,676 25.0% 572,875 -62.3%

EBITDA margin according to CVM No. 527/12 33.3% 25.5% - 69.0% -

Variation in fair value of biological assets (68,537) (19,173) 257.5% (17,279) 296.6%

Employee benefits 2,362 (2,271) -204.0% (4,614) -151.2%

Non-recurring events (3) (3,881) (25,474) -84.8% (383,124) -99.0%

Adjusted and Recurring EBITDA 145,708 125,758 167,858 -13.2%

Adjusted and Recurring EBITDA margin 22.5% 19.2% 23.2% -

The market for wood panels began the year showing only a slow recovery in

demand, which, together with the isolation measures arising from the COVID-19

crisis during the month of March, led the sector to shrink 1.2% versus 1Q19 (-3.0%

in MDP and +0.2% in MDF), according to data provided by the IBÁ. The Wood

Division showed a fall in line with the market. However, the continued improvement

in cost management and product positioning led the Division to show an increase

in profitability once again.

The Division shipped 588.0k m³ in 1Q20, a fall of 1.7% in relation to the same

period in 2019, with an increase in the sale of white MDF and unfinished products.

Exports were more profitable due to the reduction in freight costs and the currency

devaluation. This led to an expansion of operations in the international market with

a 25% increase in the volume exported in relation to the fourth quarter of 2019.

Unit revenue for the quarter was in line with that reported for the same period the previous year, if the non-recurring sale of forestry assets in

1Q19 is discounted.

The discipline in controlling costs and expenses arising from the Duratex

Management System (SGD) was once again the highlight of the quarter.

Even with the currency fluctuation in the period, the unit cash cost saw a

reduction of 2.7% in relation to the first quarter of 2019. While sales

expenses showed a fall of 5.7% in the quarter, general and admin expenses

rose 5.9%, due to greater spending on strategy consultancies in the period.

The focus on controlling costs and expenses led the Adjusted and Recurring

EBITDA for the Division to close the quarter at R$145.7m, an increase of

15.9% in relation to the same period of the previous year. The Adjusted and

Recurring EBITDA margin was 22.5%, 3.3 p.p. higher than the figure for

1Q19.

Given the current market environment, the Wood Division, which has had its operations temporarily suspended, already has detailed plans in

place for restarting operations when appropriate, with a differentiated logistical structure and greater proximity to its clients.

Wood - Segmentation of sales 1Q2020 (%):

47,0

49,0

4,0

Resale

Furniture Industry

Civil contruction/Other

Wood - Cost of Goods Sold 1Q2020 (%):

22

19

18

13

9

9

9 1

Other materiais

Resin

Wood

Paper

Labor

Depreciation and amortization

Electricity

Fuel

(1) 4Q19: COGS: closure of the São Leopoldo unit (+) R $ 23,859 thousand. (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operational performance in accordance with CVM Instruction 527/12. (3) Event of an extraordinary nature: 4Q19: Deca restructuring (-) 18,241 thousand, review of the inventory policy (-) R $ 20,970 thousand, PDD adjustments (-) R $ 1,763 thousand, INSS provision (-) R $ 5,603 thousand , reversal of ICMS PIS / COFINS calculation base (-) R $ 12,739 thousand.

DECA


SHIPMENTS (in ‘000 items)

BASIC GOODS 1,649 1,794 -8.1% 2,433 -32.2%

FINISHING GOODS 3,591 3,954 -9.2% 4,578 -21.6%

TOTAL 5,240 5,748 -8.8% 7,011 -25.3%

FINANCIAL HIGHLIGHTS (BRL1,000)

NET REVENUE (sales in items) 333,138 348,013 -4.3% 437,776 -23.9%

DOMESTIC MARKET 312,739 332,217 -5.9% 417,090 -25.0%

EXPORTS 20,399 15,796 29.1% 20,686 -1.4%

Net revenue per unit (BRL per item shipped) 64 61 5.0% 62.44 1.8%

Cash cost per unit (BRL/m³ shipped) (41.70) (39.12) 6.6% (44.19) -5.6%

Cash cost per unit (BRL/m³ shipped) - Pro Forma (1)(41.70) (39.12) 6.6% (40.78) 2.2%

Gross profit 91,248 97,952 -6.8% 104,253 -12.5%

Gross profit - Pro Forma (1)91,248 97,952 -6.8% 128,112 -28.8%

Gross margin 27.4% 28.1% - 23.8% -

Gross margin - Pro Forma (1)27.4% 28.1% - 29.3% -


General and administrative expenses (21,284) (22,865) -6.9% (25,273) -15.8%

Operating profit before financial results 8,297 18,252 -54.5% (17,097) (1.5)

Depreciation and amortization 27,784 29,489 -5.8% 27,958 -0.6%

EBITDA according to CVM No. 527/12 (2)36,081 47,741 (0.2) 10,861 232.2%

EBITDA margin according to CVM No. 527/12 10.8% 13.7% 2.5%

Employee benefits 1,807 (2,551) (1.7) (6,014) (1.3)

Non-recurring events (3)- - 62,173 0.0%

Adjusted and Recurring EBITDA 37,888 45,190 -16.2% 67,020 -43.5%

Adjusted and Recurring EBITDA margin 11.4% 13.0% 15.3%

The year began with the Deca Division facing some major challenges. With demand

still only recovering slowly, in February the Division suffered the impact of the heavy

rains that fell in the city of São Paulo, which ended up flooding part of the metals

unit located in the region. In March, when the market was starting to show stronger

signs of recovery, the isolation measures and uncertainty arising from the COVID-

19 crisis, led Deca to suffer a strong fall in sales volumes.

For the quarter as a whole, Deca saw an increase of 5.0% in Unit Revenue in

relation to 1Q19, partially compensating for the fall of 8.8% in volumes versus the

same period of the previous year. The improvement in Unit Revenue reflects the

Division’s focus on ensuring the better positioning of its products and strengthening

the premium position of its brand, leveraged through the Excellence in Sales

Execution pillar.

In relation to costs and expenses, the aforementioned effects of the heavy rains

incurred some extraordinary spending, which caused the quarterly COGS to increase

6.6% on the same period in 2019. Also, the focus on sales activities, through marketing

actions, and on the launch of products via Revestir Fair, led to one-off increase in sales

expenses of 8.1% in the period. On the other hand, the greater control arising from the

Duratex Management System (SGD), drove a reduction in general and administrative

expenses of 6.9% versus the first quarter of the previous year.

On the back of the adversity arising, Deca’s quarterly Adjusted and Recurring EBITDA

totaled R$37.9m, a fall of 16.2% in relation to first quarter of 2019, with a margin of

11.4%.

With a view to reducing the impacts of the aforementioned events, the Deca Division is even more committed to its project of structural cost reduction,

and of perfecting operational efficiency. In addition, Deca is tracking market and consumer trends, and getting closer to clients, seeking to position

itself with innovation and technology, so that it can return to the market with service levels even above those seen ‘pre-crisis’.

Deca - Segmentation of sales 1Q2020 (%):

62,1

22,7

10,2

5

Resale/Home center

Civil Construction

Wholesale

Others

Deca - Cost of Goods Sold 1Q2020 (%):

33

36

15

9

4 3

Other materials

Metals

Labor

Electricity

Depreciation and amortization

Fuel

(1) COGS: 1Q20: restructuring of ceramic tiles (+) R$ 1,130k; 4Q19: payment of indemnities (-) R$ 6,699, review of inventory policy (-) R$ 4,073m; (2) SG&A: 4Q19: payment of indemnities (-)

R$18,819k; (3) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measure of operational performance in accordance with CVM Instruction CVM 527/12. (4) Event of extraordinary nature: restructuring of ceramic tiles (+) R$ 1,712k; 4Q19: restructuring of ceramic tiles (-) R$ 25,500k, review of inventory policy (-) R$ 4,073k, provision relating to civil and labor-

related legal cases (-) R$ 275k.

Ceramic Tiles


SHIPMENTS (IN ‘000 ITEMS)

FINISHING GOODS 4,851,703 1,242,396 290.5% 5,830,102 -16.8%

TOTAL 4,851,703 1,242,396 290.5% 5,830,102 -16.8%

FINANCIAL HIGHLIGHTS (BRL1,000)

NET REVENUE 180,483 46,399 289.0% 218,567 -17.4%

DOMESTIC MARKET 160,526 44,476 260.9% 200,947 -20.1%

EXPORTS 19,957 1,923 937.8% 17,620 13.3%

Net revenue per unit (BRL per m² shipped) 37.20 37.35 -0.4% 37.49 -0.8%

Cash cost per unit (BRL per m² shipped) (22.80) (22.05) 3.4% (24.62) -7.4%

Cash cost per unit (BRL per m² shipped) - Pro Forma (1) (22.67) (22.05) 2.8% (22.78) -0.5%

Gross profit 62,256 17,259 260.7% 68,058 -8.5%

Gross profit - Pro Forma (1)62,880 17,259 264.3% 78,830 -20.2%

Gross margin 34.5% 37.2% - 31.1% -

Gross margin - Pro Forma (1)34.8% 37.2% - 36.1% -


Selling expenses - Pro Forma (2)(29,840) (8,469) 252.3% (31,487) -5.2%


General and administrative expenses - Pro Forma (2) (6,588) (2,008) 228.1% (8,538) -22.8%

Operating profit before f inancial results 24,886 6,538 280.6% 5,470 355.0%

Depreciation and amortization 8,798 1,821 383.1% 7,604 15.7%

EBITDA according to CVM No. 527/12 (3)33,684 8,359 303.0% 13,074 157.6%

EBITDA margin according to CVM No. 527/12 18.7% 18.0% - 6.0% -

Employee benefits 336 - 0.0% 517 0.0%

Non-recurring events (4)1,712 - - 29,866 -

Adjusted and Recurring EBITDA 35,732 8,359 327.5% 43,457 -17.8%

Adjusted and Recurring EBITDA margin 19.8% 18.0% - 19.9% -

Sales in the market for ceramic tiles performed well until the middle of March, when

the effects of the COVID-19 pandemic kicked in, with a strong fall in demand. In

the quarter, according to ANFACER, the sector showed a fall of 3.7% in relation

to the same period in 2019. The Ceramic Tiles Division, which includes the brands

Ceusa and Portinari, in line with the market, saw its volumes affected at the end

of March, closing the quarter below initial expectations.

The volume shipped in the first quarter of 2020 was 4,851 million m², representing

growth of 290.5% in relation to the same period of the previous year. However, it

should be remembered that in 1Q19, the Division didn’t yet count on the volumes

arising from the acquisition of Cecrisa, which increased annual capacity by 20

million m².

Even with the significant increase in volume and change of mix, the Unit Net Revenue for the Division was flat versus the first quarter of 2019. This

result stems from the success of the sale of new lines with large designs launched at 2020 Revestir Fair;

With regards to costs and expenses, the efforts to capture synergies between the

Ceusa and Portinari brands are already reflected in the Division’s first quarter results.

The unit cash cost showed growth of only 2.8% in relation to 1Q19, below inflation

during the period. General and administrative expenses showed a strong reduction in

relation to 4Q19, shrinking 22.8%, and as a proportion of net revenue fell 0.7 p.p. in

relation to 1Q19. Sales expenses as a proportion of revenue represented 16.5%, 1.7

p.p. below the first quarter of the previous year.

The Adjusted and Recurring EBITDA for the Division in the quarter was R$35.7m, with

an EBITDA margin of 19.8%, 1.8 p.p. above that reported for the same period in 2019,

already reflecting the initial benefits of the process for capturing synergies.

The Division has stepped up its focus on the process to capture synergies, despite the

uncertainties created by the COVID-19 pandemic, and the effects on both the ceramic tiles market and on operations.

Ceramic Tiles – Segmentation of sales 1Q2020 (%):

51,4

23,3

13,7

11,6

Resale

Home center

Engineering

Others

Ceramic Tiles - Cost of Goods Sold 1Q2020 (%):

43

25

17

7

7

Other materials

Labor

Fuel

Electricity

Depreciation andamortization

DISSOLVING WOOD PULP In December 2019, the Company approved the creation of a new dissolving wood pulp JV in partnership with the Austrian firm Lenzing. This project

involves the construction of a new dissolving wood pulp factory with an annual production capacity of 500k tonnes, located in the region of Triângulo

Mineiro (MG). The works have already begun, with all of the landscaping process completed.

In the quarter, Duratex has effectuated the contribution of the forests that will supply the new unit. The Division showed a negative contribution of

R$19.2m, as a result of the spending with consultancies and the structure of the new company, which has already been incorporated into the

EBITDA of the Company.

The isolation measures arising from the COVID-19 pandemic, have led to the adoption of safety measures in order to preserve the health of

employees. However, the final timeline for the projected is unchanged.

Capital Markets At the end of the first quarter of 2020, the Company had a market

value of R$6.45bn, based on a closing share price of R$ 9.35.

During the quarter, there were 757,016 trades in the shares on the

B3 market, representing a trading volume equivalent to

approximately R$3.8bn or an average daily trading volume of

R$60.8m.

The Company`s shares are listed on the Novo Mercado, under the

B3 segment, which brings together companies with the highest level

of corporate governance. The Company also has a differentiated

dividend policy, with the distribution of the equivalent of 30% of

adjusted net earnings, while also adhering to the Abrasca Code for

Self-Regulation and Good Practices for Publicly Listed Companies.

Shareholders Structure 1Q2020

40

20

24

1600

Itausa and Families

Ligna and Families

Foreign Investors

Other Investors

Treasurie

Socio-environmental Performance

The Company ended the first quarter of 2020 with 11,943 employees. This figure is 7.5% greater than that reported for 1Q19. The

main factor responsible for this increase was the restructuring arising mainly from the Ceramic Finishings Division.

Included in the environmental results for the first quarter of 2020 are the business units acquired from Cecrisa, in 2019, which have

been added to the consumption of natural resources and emissions from other Duratex operations. Thus, including the new

operations, there was an increase in the indices for consumption of water and energy and the emission of residue of 15%, on

average. The most significant impact, however, was on the issue of greenhouse gases, reflecting an effective increase in the

Company’s total emissions of 91%, due to the more carbon intensive power sources.

For effluent, the new units contributed positively to Duratex’s overall performance, due to the significant re-use of water in the

operations, which is based on a closed circuit of grinding/polishing treatment stations, which lose a mere 3% of the water volume.

In addition, the Wood and Deca divisions have also reduced their generation of effluent, especially at the ceramics operation in

Recife and at the panel operations at Uberaba and Agudos. Meanwhile, the ongoing efforts to reduce the generation of residues

have resulted in a fall of around 26% in landfill waste, and a total fall in waste production of 5% compared to the same period in

2019 throughout the business, except for Ceramic Tiles, which showed an increase during the period.

It should also be noted that due to the reduction in operations in March caused by the COVID-19 crisis, consumption and emissions

at the business units was lower than for the previous year.

Duratex also monitors emissions of Greenhouse Gases arising from its industrial and agricultural activities, in keeping with the

market directives for tracking and reporting corporate emissions. Between the years 2018 and 2019, the Company carried out a

project to review the recording of greenhouse gases, while also critically evaluating the level of both manufacturing and agriculturally

related emissions. As a result of this work, on the agricultural side in particular, the Company has introduced improvements to the

(R$ ‘000) 1Q20 1Q19 % 4Q19 %

Employees (quantity) 11,714 11,223 4.4% 11,688 0.2%

Remuneration 118,718 112,297 5.7% 118,013 0.6%

Obligatory legal charges 67,697 58,360 16.0% 62,113 9.0%

Differentiated benefis 30,102 29,145 3.3% 30,435 -1.1%

methodology relating to native areas and planted areas. In 2019, 204.6k tons of carbon were removed from the atmosphere,

contributing a positive impact to the Climate.

Water consumption (m³)

Discharge of effluent ( m³)

EEG Emission and Removals Inventory (tCO2e) - 2019

Brasil* 2019

SCOPE 1 (338.486)

Emissions 154.479

Biogenics Emissions 57.209

Biogenics Removals (550.173)

SCOPE 2(market base) 45.927

SCOPE 3 87.973

Total Duratex (Emissions and Removals) (204.585)

Total energy consumption (GJ)

Consumption of electricity (GJ)

Disposal of waste to landfill (t)

Corporate Governance

E-mail address for addressing matters related to corporate governance to senior management: [email protected]

Shares listed on Novo Mercado of the 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.

2 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; IT and Digital Innovation/ 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 of Self-

Regulation and Good Practices for Publicly Traded Companies.

Brokers that cover the Company: Bradesco BBI, BTG Pactual, Goldman Sachs Empiricus Research, HSBC, Merrill Lynch, Morgan Stanley,

Nau Securities and Santander.

mailto:[email protected]

Financial Statements

CONSOLIDATED ASSETS 03/31/2020 AV% 12/31/2019 AV% 03/31/2019 AV%

CURRENT 3,682,532 35.18% 3,514,047 32.80% 3,172,913 33.09%

Cash and cash equivalents 1,329,075 12.70% 1,243,223 11.60% 635,404 6.63%

Other f inancial assets 0 0.00% 0 0.00% 0 0.00%

Trade accounts receivable 1,058,822 10.12% 1,102,800 10.29% 1,103,078 11.50%

Related parties accounts receivable 18,878 0.18% 32,409 0.30% 15,375 0.16%

Inventories 983,668 9.40% 853,293 7.96% 933,576 9.74%

Other receivables 27,867 0.27% 32,060 0.30% 306,682 3.20%

Recoverable taxes and contributions 194,193 1.86% 186,222 1.74% 154,090 1.61%

Other credits 22,316 0.21% 16,327 0.15% 18,600 0.19%

Non current assets available for sale 47,713 0.46% 47,713 0.45% 6,108 0.06%

NON-CURRENT 6,784,782 64.82% 7,200,641 67.20% 6,415,784 66.91%

Restricted deposits 65,021 0.62% 62,123 0.58% 54,719 0.57%

Other receivables 166,355 1.59% 167,193 1.56% 152,500 1.59%

Pension plan credits 107,330 1.03% 110,364 1.03% 103,027 1.07%

Recoverable taxes and contributions 15,124 0.14% 16,542 0.15% 12,630 0.13%

Deferred income tax and social contribution 265,253 2.53% 331,570 3.09% 370,587 3.86%

Investments in subsidiaries and associates 482,927 4.61% 122,234 1.14% 48,057 0.50%

Other investments 4,776 0.05% 4,776 0.04% 2,694 0.03%

Property, plant and equipment 3,542,470 33.84% 3,566,330 33.28% 3,196,292 33.33%

Assets of use rights 309,377 3.06% 555,721 5.19% 493654 0.0514829

Biological assets 1,111,293 10.62% 1,543,949 14.41% 1,563,122 16.30%

Intangible assets 714,856 6.83% 719,839 6.72% 418,502 4.36%

TOTAL ASSETS 10,467,314 100.00% 10,714,688 100.00% 9,588,697 100.00%

CONSOLIDATED LIABILITIES AND STOCKHOLDERS' EQUITY 03/31/2020 AV% 12/31/2019 AV% 03/31/2019 AV%

CURRENT 1,919,562 18.34% 2,149,913 20.07% 1,657,260 17.28%

Loans and f inancing 857,107 8.19% 806,132 7.52% 628,512 6.55%

Debentures 19,976 0.19% 65,733 0.61% 0 0.00%

Suppliers 633,326 6.05% 625,279 5.84% 393,949 4.11%

Lease liability 17,951 0.17% 20,043 0.19% 16,481 0%

Related party lease liabilities 103 0.00% 967 0.01% 364 0%

Personnel 142,620 1.36% 147,572 1.38% 118,099 1.23%

Accounts payable 179,162 1.71% 227,845 2.13% 177,136 1.85%

Related parties accounts payable 2,640 0.03% 2,640 0.02% 2,640 0.03%

Taxes and contributions 65,571 0.63% 136,902 1.28% 59,387 0.62%

Dividends and interest on capital 1,106 0.01% 116,800 1.09% 260,692 2.72%

Discontinued Operations Liabilities 0 0.00% 0 0.00% 0 0.00%

NON-CURRENT 3,770,386 36.02% 3,632,607 33.90% 3,260,544 33.90%

Loans and f inancing 811,527 7.75% 878,668 8.20% 2,017,044 21.04%

Loans and f inancing of Related Parties 501,127 4.79% 0 0.00% 0 0.00%

Debentures 1,198,099 11.45% 1,198,007 11.18% 0 0.00%

Lease liability 276,888 2.65% 262,849 2.45% 227,953 2%

Lease liability of Related Parties 29,063 0.28% 288,465 2.69% 253,051 2.64%

Contingencies 357,967 3.42% 313,713 2.93% 155,117 1.62%

Deferred income tax and social contribution 158,788 1.52% 212,914 1.99% 390,850 4.08%

Accounts payable 315019 3.01% 350697 3.27% 216529 2.26%

Income tax and social contribution 121,908 1.16% 127,294 1.19% 0 0.00%

STOCKHOLDERS' EQUITY 4,777,366 45.64% 4,932,168 46.03% 4,670,893 48.71%

Capital 1,970,189 18.82% 1,970,189 18.39% 1,970,189 20.55%

Costs on issue of shares -7,823 -0.07% -7,823 -0.07% -7,823 -0.08%

Capital reserves 353,077 3.27% 352,083 3.29% 348,541 3.63%

Capital transactions w ith partners -18,731 -0.18% -18,731 -0.17% -18,731 -0.20%

Revaluation reserves 38,167 0.36% 38,543 0.36% 44,107 0.46%

Revenue reserves 2,076,558 19.84% 2,166,721 20.22% 1,894,095 19.75%

Carrying value adjustments 382,988 3.66% 452,932 4.23% 463,953 4.84%

Treasury shares -18,450 -0.18% -23,051 -0.22% -24,619 -0.26%

Noncontrolling interests 1,391 0.01% 1,305 0.01% 1,181 0.01%

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 10,467,314 100.00% 10,714,688 100.00% 9,588,697 100.00%

INCOME STATEMENT 1Q20 1Q19VAR %

1Q20x1Q194Q19

VAR %

1Q20x4Q19

CONTINUING OPERATIONS

Gross Income 1,448,410 1,342,639 7.88% 1,836,462 -21.13%

Domestic Market 1,208,464 1,130,524 6.89% 1,600,792 -24.51%

Wood 604,685 647,465 -6.61% 813,237 -25.64%

Deca 397,163 426,214 -6.82% 528,382 -24.83%

Ceramics 206,616 56,845 263.47% 259,173 -20.28%

Foreign Market 239,946 212,115 13.12% 235,670 1.81%

Wood 199,590 194,396 2.67% 197,364 1.13%

Deca 20,399 15,796 29.14% 20,686 -1.39%

Ceramics 19,957 1,923 937.81% 17,620 13.26%

Taxes and Sale Contributions (286,822) (270,105) 6.19% (350,305) -18.12%

Wood (156,308) (163,739) -4.54% (180,787) -13.54%

Deca (84,424) (93,997) -10.18% (111,292) -24.14%

Ceramics (46,090) (12,369) 272.63% (58,226) -20.84%

NET INCOME FOR THE PERIOD 1,161,588 1,072,534 8.30% 1,486,157 -21.84%

Domestic Market 941,337 879,992 6.97% 1,270,675 -25.92%

Wood 468,072 503,299 -7.00% 652,638 -28.28%

Deca 312,739 332,217 -5.86% 417,090 -25.02%

Ceramics 160,526 44,476 260.93% 200,947 -20.12%

Foreign Market 220,251 192,542 14.39% 215,482 2.21%

Wood 179,895 174,823 2.90% 177,176 1.53%

Deca 20,399 15,796 29.14% 20,686 -1.39%

Ceramics 19,957 1,923 937.81% 17,620 13.26%

Biological asset 68,537 19,173 257.47% 17,279 296.65%

Cost of goods sold (715,662) (656,520) 9.01% (953,788) -24.97%

Depreciation/amortization/depletion (104,692) (115,240) -9.15% (161,059) -35.00%

Depletion of biological assets (21,545) (38,487) -44.02% (73,088) -70.52%

GROSS PROFIT 388,226 281,460 37.93% 315,501 23.05%



Management compensation (4,525) (3,992) 13.35% (4,596) -1.54%

Other operating results, net (6,283) (6,156) 2.06% 305,093 -102.06%

Equity Equivalence Results (17,004) - 0 - 0

OPERATING PROFIT BEFORE FINANCIAL RESULTS 125,652 62,960 99.57% 349,586 -64.06%

Financial revenues 64,229 25,286 154.01% 17,320 270.84%

Financial expenses (107,492) (53,812) 99.75% (55,428) 93.93%

PROFIT BEFORE INCOME TAX AND SOCIAL CONTRIBUTION 82,389 34,434 139.27% 311,478 -73.55%

Income tax and social contribution - current(18,969) (18,463) - (103,745) -81.72%

Income tax and social contribution - deferred (11,429) 7,927 -244.18% 77,003 -114.84%

NET INCOME FOR THE PERIOD 51,991 23,898 117.55% 284,736 -81.74%

CASH FLOW 1Q20 1Q19VAR %

1Q20x1Q194Q19

VAR %

1Q20x4Q19

Profit be fore ta x. Inc ome a nd Soc ia l Contribution8 2 ,3 8 9 3 4 ,4 3 4 13 9 .2 7 % 3 11,4 7 8 - 7 4 %

Depreciation, amortization and depletion 140,690 165,819 - 15.15% 247,223 - 43%

Change in the fair value of biological assets (68,537) (19,173) 257.47% (17,279) 297%

Interest, net exchange and monetary variations 63,131 43,311 45.76% 43,740 44%

Interest on leases 1,196 - - 2 ,3 2 3 - 48.51%

Equity Equivalence 17,004 - - - -

Provisions, write- off of assets 3,365 25,917 - 87.02% (71,430) - 104.71%

Impairment of intangible assets - - - 8 ,8 3 7 -

Working Capital Investments (129,906) (119,613) 8.61% 295,964 - 143.89%

Accounts receivable from customers 59,322 92,936 - 36.17% 74,394 - 20%

Stocks (107,298) (131,707) - 18.53% 75,884 - 241%

Other assets (16,097) (14,663) 9.78% 38,796 - 141.49%

Providers 15,417 (31,568) - 148.84% 189,299 - 91.86%

Staff obligations (4,302) (3,396) 26.68% (26,828) - 84%

Bills to pay (37,564) (23,581) 59.30% (49,964) - 24.82%

Taxes and contributions (20,479) 6,783 - 401.92% 41,504 - 149%

Other liabilities (18,905) (14,417) 31.13% (47,121) - 59.88%

Ca sh from Ope ra tions 9 6 ,4 4 6 13 0 ,6 9 5 - 2 6 .2 1% 8 2 0 ,8 5 6 - 8 8 %

Income Tax and Social Contribution Paid (63,340) (18,066) 250.60% (116,788) - 46%

Interest Paid (12,886) (20,961) - 38.52% (128,758) - 89.99%

Ca sh ge ne ra te d by ope ra ting a c tivitie s 2 0 ,2 2 0 9 1,6 6 8 - 7 7 .9 4 % 5 7 5 ,3 10 - 96.49%

Investments in fixed assets (60,483) (33,200) 82.18% (62,180) - 3%

Investments in Intangible Assets (5,837) (4,334) 34.68% (13,706) - 57%

Investments in biological assets (29,804) (42,543) - 29.94% (45,261) - 34%

Receipt for sale of fixed assets 2,413 1,544 56.28% 272,503 - 99%

Acquisition of subsidiaries, net of cash acquired - - - (36,665) -

Other investments - - - 376 -

Capital contribution / Capital increase - - - (42,181) -

Ca sh Use d in Inve sting Ac tivitie s (9 3 ,7 11) (7 8 ,5 3 3 ) 19 .3 3 % 7 2 ,8 8 6 - 2 2 9 %

Financing Entries 637,283 - - 4,702 13453%

Amortization of debentures (60,000) - - (5,000) -

Amortization of the principal amount of financing (166,488) (239,703) - 30.54% (173,862) -

Amortization of lease liabilities (15,742) (16,527) - 4.75% (18,866) - 17%

Interest on own capital and dividends (257,289) (286,056) - 10.06% (259,735) - 1%

Treasury and other shares 4,601 1,412 225.85% 113 3972%

Ca sh Ge ne ra te d (use d) in Fina nc ing Ac tivitie s 155,251 (5 4 0 ,8 7 4 ) - 12 8 .7 0 % (4 5 2 ,6 4 8 ) - 13 4 %

Exchange variation on cash and cash equivalents 4,092 902 353.66% 811 405%

Increase (decrease) in cash in the period / year 85,852 (526,837) - 116.30% 196,359 - 56%

Ope ning ba la nc e 1,243,223 1,16 2 ,2 4 1 6 .9 7 % 1,0 4 6 ,8 6 4 19 %

Fina l ba la nc e 1,329,075 6 3 5 ,4 0 4 10 9 .17 % 1,2 4 3 ,2 2 3 7 %

FACT SHEET 1Q2020 - Duratex · to Suzano Papel e Celulose and others. (4) EBITDA adjusted for...

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Transcript of FACT SHEET 1Q2020 - Duratex · to Suzano Papel e Celulose and others. (4) EBITDA adjusted for...