Fact Sheet 4Q13 MARKET CAP (12/31/2013) CLOSING SHARE PRICE ON 12/31/2013 NUMBER OF SHARES IN DECEMBER SHARES HELD IN TREASURY FREE FLOAT

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1 Fact Sheet 4Q13 MARKET CAP (12/31/2013) R$7,938.1 million CLOSING SHARE PRICE ON 12/31/2013 R$13.15 NUMBER OF SHARES IN DECEMBER 605,059,489 SHARES HELD IN TREASURY 1,405,054 FREE FLOAT 40.0% IR Contact: Director: Flavio Marassi Donatelli Executive manager: Alvaro Penteado de Castro Conference call: February 18, 2014, Tuesday Portuguese: Time: 9:30 a.m. local time (07:30 a.m. NY EST) English: Time: 11h00 a.m. local time (09:00 a.m. NY EST) Support material: To connect: Participants in Brazil: +55 (11) Participants in the USA: Toll free: Participants in other countries: Access code: Duratex Conference call: CORPORATE GOVERNANCE address for matters relating to corporate governance, for the attention of top management: Shares listed on the BM&FBovespa Novo Mercado Only common shares in circulation, in other words, each share carries the right to one vote at General Shareholders Meetings 100% tag along rights for the shares Three independent members on the Board of Directors Advisory Committees to the Board of Directors: Staff, Nomination and Governance; Sustainability; Auditing and Risk Management; Trading and Disclosure; and Related Parties Dividend policy with a minimum distribution of 30% of adjusted net earnings Policy in force for the disclosure of Material Events and Facts and Trading in Securities The Company has adhered to the Abrasca Code for Selfregulation and Good Practices for Listed Companies The Company s shares are included in the Dow Jones Emerging Markets Index (DJSWI), version 2013/2014, and Bovespa Corporate Sustainability Index (ISE), version 2014 Stockbrokers covering the Company: Ativa, Banco Fator Corretora, BTG Pactual, Citibank, Coinvalores, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Lopes Filho, Merrill Lynch, Morgan Stanley, Santander and Votorantim

2 DISCONTINUED OPERATIONS As a result of the discontinuance of the operations of subsidiary Deca Piazza S.A., located in Argentina, the Company, in view of its obligation to comply with CPC 31 (IFRS Non-Current Assets Maintained for Sale and Discontinued Operations), has segregated the amounts referring to this operation and has consolidated them under specific headings non-current assets and liabilities associated with assets maintained for sale in the balance sheet, as well as discontinued operations, in the financial statements. As a consequence, adjustments have been made to past results namely, 2013 and CONSOLIDATED FINANCIAL SUMMARY 4Q13 3Q13 4Q (in IFRS and R$ 000) HIGHLIGHTS Volume shipped Deca ( 000 items) 6,486 7,578 6,606 27,983 25,772 Volume shipped Wood (m 3 ) 718, , ,965 2,668,228 2,635,085 Consolidated net revenue 1,008,148 1,027, ,692 3,872,705 3,372,546 Gross profit 348, , ,217 1,443,667 1,183,457 Gross margin 34.6 % 38.4 % 35.7 % 37.3 % 35.1 % Ebitda according to CVM No. 527/12 (1) 352, , ,839 1,433,259 1,188,447 Ebitda margin CVM No. 527/ % 38.8 % 37.8 % 37.0 % 35.2 % Ajustments for non-cash events (42,169) (84,324) (42,609) (207,463) (154,060) Extraordinary events (3) (5,739) (4,059) (7,750) (25,699) (9,796) Recurring adjusted Ebitda (2) 304, , ,480 1,200,097 1,024,591 Recurring adjusted Ebitda margin 30.2% 30.2% 32.4% 31.0% 30.4% Net income (4) 70, , , , ,711 Recurring net income 118, , , , ,489 Recurring net margin 11.7 % 16.2 % 15.6 % 14.5 % 13.5 % INDICATORS Current ratio (5) Net indebtedness (6) 1,453,998 1,561,428 1,369,710 1,453,998 1,369,710 Net indebtedness/ebitda LTM (7) Average net equity 4,371,198 4,289,979 3,984,562 4,225,728 3,852,098 ROE (8) 6.4 % 15.9 % 15.0 % 12.3 % 11.9 % ROE recurring 10.8 % 15.5 % 14.6 % 13.3 % 11.8 % SHARES Basic net earnings per share (R$) (9) Closing share price (R$) Net equity per share (R$) Shares held in treasury (shares) 1,405,054 1,415, ,677 1,405, ,677 Market value (R$1,000) (10) 7,938,056 7,962,070 8,157,116 7,938,056 8,157,116 (1) Ebitda (Earnings Before Interest, Taxes, Depreciation and Amortization): a measure of operational performance pursuant to CVM Instruction No. 527/12. See complete reconciliation details of this indicator on page 8 of this report. (2) Ebitda adjusted for non-cash events arising from the variation in the fair value of biological assets and businesses combination, in addition to extraordinary events and the effect of the discontinuation of the Argentinian operation, Deca Piazza. (3) Events of an extraordinary nature, namely: In 2013: (+) R$42,318K, referring to the reversion of a surplus deriving from the closed defined benefit pension plan of Fundação Itaúsa; (-) R$14,362K referring to the discontinuation of the operations of Deca Piazza; and (-) R$2,257K referring to other adjustments. 2012: (+) R$16,395K referring to the reversion of half-yearly PIS and (-) R$6,599K referring to discontinued operations (Deca Piazza, Argentina). (4) 4Q13: writeoff related to the first installment qcquired in the capital of Tablemac, of 37%,of (-) US$53,574K. (5) Current liquidity: current assets divided by current liabilities. Indicates the amount available in reais to cover each real of short-term obligations. (6) Net debt: total debt (-) cash. (7) Leverage calculated on the Ebitda for the last 12 months, adjusted for accounting and non-cash events, but considering events of an extraordinary nature. (8) ROE (Return on Equity): measure of performance arrived at by dividing net earnings in the period, annualized in the quarter by, average shareholders equity. (9) Net earnings per share: is calculated by dividing the earnings attributed to the Company s shareholders by the average weighted quantity of ordinary shares in issue during the year, excluding ordinary shares held in treasury. (10) Market capitalization: was calculated based on the share price at the end of the period, multiplied by the number of shares in issue (605,059,489 shares), net of shares held in treasury. Note that the number of shares has been adjusted for periods prior to April 2013, due to a stock dividend that was distributed in that month. 2

3 MARKETS AND ECONOMIC SCENARIO For yet another year, Duratex has delivered significant results even in the face of an extremely challenging business environment, characterized by an increase in interest rates, inflationary pressure, a high degree of exchange rate volatility and high consumer debt levels. According to figures from the Brazilian Panel Industry Association (ABIPA), the volume of panels shipped in the Brazilian market grew by 5.6 %, compared to 2012, stimulated, among other factors, by the provision of consumer credit. This performance corresponds a correlation of approximately 3x the GDP growth, which is estimated for 2013, to close around 2 %. In this same period the Wood Division, with a focus on expanding its margins, reported volume growth of 1.3 %, with recurring Ebitda rising by 20.3 %. The construction materials industry, which is related to the Deca Division, reported a growth of 3 %, 1 percentage point less than initial expectations for the year, according to the index published by the Brazilian Construction Materials Industry Association (ABRAMAT). This indicator measures the sales variation in the construction sector, in the domestic market. Performance was affected by the weak result in the sector in the 4 th quarter, with a marked slowdown, particularly in retail channels. The Deca Division, on the other hand, once again substantially outperformed the sector as a whole. Net revenue in the domestic market increased by 18.0 %. Even excluding the sales of the recently acquired operation (Thermosystem), organic sales growth was above the sector average, at 10.9 %. This result by the Deca Division, which is extremely positive, can be explained by its broad-based distribution network, the diversity of its product lines and the force of its brand name, in addition to the welljustified consumer perception of its superior product quality. For 2014 we are expecting another year equally replete with major challenges. 3

4 STRATEGIC MANAGEMENT The Company continues to believe in the strength of its markets and its ability to differentiate itself from the competition. To this end it is maintaining its policy of expanding its production capacity, having invested R$601.5 million in 2013, on the following projects: In the Wood Division: i) Conclusion of the new MDF plant in Itapetininga (SP), which began operations in July 2013, with an effective production capacity of 520,000 m³ a year. This unit should reach full capacity utilization by 2016, according to internal estimates. ii) Finalization of the debottlenecking works on the MDP production line in Taquari (RS), which added 230,000 m³ of additional production capacity a year from August In the Deca Division: i) An increase to production capacity at the unit in Jundiaí (SP), from 17.0 million to 18.2 million pieces/year of metal bathroom fittings. Another important move came about with the announcement of a Public Offering for the Acquisition of Shares (OPA) of Tablemac with the objective of obtaining effective control of that operation. This Public Offering ended on January 22, 2014, with the acquisition of all the tendered shares that is 14,772,002,647 shares, which at a price of COP$8.60 per share, represented an additional investment of approximately R$152 million in the Colombian company. As a consequence, Duratex ended up with % of the capital of Tablemac. As a result of the acquisition of control of this company, and in accordance with CPC 15, we are recognizing writedown of goodwill acquired related to the the first tranche of 37 %. The value of writdown is R$53.6 million, which is an extraordinary event and no effect on cash. With respect to its expansion strategy, Duratex remains alert to possible acquisition opportunities that may arise. A balanced capital structure and the desire to achieve complementarity in its product lines and geographical diversification of its existing operations could all be motivating factors in this direction. ii) The conclusion of investment in the unit at Queimados (RJ), creating additional capacity of 2.4 million pieces a year of vitreous chinaware, which corresponds to an increase of 25 % to current capacity. This production capacity should start to come on the market during 2014 and During the year, the Company announced the discontinuation of its operations in Argentina Deca Piazza, as a result of the company s difficulty in reaching expected levels of profitability. The Argentinian market continues to be served by Duratex s sales structure in Brazil. In addition to projects for organically increasing production capacity, Duratex has made other important acquisition moves. At the beginning of 2013 the Company concluded the acquisition of all the shares of the paid-up capital of Thermosystem, a manufacturer of electronic showers and solar heating systems. The total value of this transaction amounted to R$56.4 million. For the year 2014, the Company s investments amounts to approximately R$500 million, to be concentrated on the maintenance of its units, its forestry areas and planting, in addition to the expansion of its production capacity for metal bathroom fittings and electronic showers. This figure does not include possible investments as a result of acquisitions, such as the additional investment of approximately R$152 million for the purchase of an additional equity stake at Tablemac, through a public tender offer. 4

5 CONSOLIDATED FINANCIAL HIGHLIGHTS (IFRS) NET REVENUE Net revenue came to a total of R$3.9 billion for the year, the equivalent to an annual increase of 14.8 %, % disregarding the contribution from Thermosystem. In the Wood Division, revenue was up by 13.1 %, while in the Deca Division, revenue was up 18.2 % (11.22 % disregarding this acquisition), on an annual comparison. This performance is explained by the improvement in the mix of products shipped and price repositioning. In the 4 th quarter of 2013, revenue totalled R$1,008.1 million, which represents an annual increase of 8.3 % and a quarterly decrease of 1.9 %, due to be seasonal slowdown, which was more pronounced in the Deca Division. Sales to the domestic market represented approximately 96 % of the total sales in the quarter. R$ 000 4Q13 3Q13 % 4Q12 % % Net revenue* 1,008,148 1,027,694 (1.9%) 930, % 3,872,705 3,372, % Domestic market 971, ,212 (2.0 %) 899, % 3,718,366 3,245, % Export market 36,536 36, % 31, % 154, , % * Reported net revenue does not include the numbers from the discontinued operation (Deca Piazza, Argentina) in accordance with CPC 31 (IFRS). NET REVENUE BY OPERATIONAL AREA (IN % 4Q13) NET REVENUE, DOMESTIC MARKET/ EXPORT MARKET (IN % 4Q13) Deca 33 Export market 3.6 Madeira 67 Domestic market 96.4 COST OF GOODS SOLD (COGS) The cost of goods sold, net of depreciation, amortization and depletion and the net variation in the fair value of biological assets, in other words, the cash cost, came to R$2,087.2 million for the year to date, which represents an annual increase of 11.7 %. This rise can be partly explained by the entry into service of the MDF unit in Itapetininga and the vitreous chinaware unit in Queimados, in addition to the normal increase in direct costs, notably labor, with collective wage increase agreements of around 7 % during the year. In the 4 th quarter of 2013, the cash cost amounted to R$554.0 million, down 2.5 % compared to the immediately preceding quarter, and up 8.3 % compared to the same period in This increase was the result of the same factors cited above. Under the heading Depreciation, Amortisation and Depletion, item (1) in the table below, there are items arising from the amortization of the client portfolio, IFRS CPC 15, as a result of the merger with Satipel and the acquisition of Elizabeth. 5

6 Gross Profit totaled R$1,443.7 million for the year, up 22.0 % compared to the same period the previous year, contributing to a significant widening in Gross Margin to 37.3 % in the period. For the quarter, Gross Profit totaled R$348.9 million, up 5.0 % on the 4 th quarter of 2012, but with lower margins due to the higher incidence of depreciation, amortization and depletion. Compared to the immediately preceding quarter, gross profit was down 11.7 % basically due to a lower contribution from the mark-to-market of the biological assets, which contributed R$16.7 million to the results in the previous quarter, as well as cost pressure arising from wage increase agreements in the period. R$ 000 4Q13 3Q13 % 4Q12 % % Cash COGS (553,961) (568,063) (2.5%) (511,732) 8.3% (2,087,151) (1,869,367) 11.7% Variation in fair value of biological assets 40,863 73,753 (44.6 %) 39, % 191, , % Depletion tranche of biological assets (57,071) (57,039) 0.1 % (47,121) 21.1 % (218,088) (162,778) 34.0 % Depreciation, amortization and depletion (1) (89,093) (81,263) 9.6 % (79,555) 12.0 % (315,318) (301,518) 4.6 % Gross profit (2) 348, ,082 (11.7%) 332, % 1,443,667 1,183, % Gross margin 34.6% 38.4% % % 35.1% - (2) Gross profit, and the figures reported above, does not include the results of the discontinued operation (Deca Piazza, Argentina), in accordance with CPC 31 (IFRS). NET REVENUE (IN R$ MILLION) AND GROSS MARGIN (IN %) NET OF DISCONTINUED OPERATION (Deca Piazza, Argentina) Gross margin Net revenue , , Q12 1Q13 2Q13 3Q13 4Q13 COST OF GOODS SOLD (IN % 4Q13) WOOD DIVISION Electricity 7 Depreciation, amortization and exhaustion 9 Labor 12 Resin 17 Depreciation, amortization and exhaustion 7 Metals 13 Fuel 2 Other materials 34 Electricity 3 Wood* 19 * Includes depletion of the amount invested as applied to the cost of wood. DECA DIVISION Fuel 5 Labor 39 Other materials 33 6

7 SALES EXPENSES Sales Expenses totaled R$445.8 million for the year, a nominal annual increase of 18.7 %. This increase was as a result of the higher level of shipments and the consolidation of the operations of Mipel and Thermosystem. In the 4 th quarter, expenses came to a total of R$114.8 million, 1.8 % less than in the immediately preceding quarter. In relation to Net Revenue, these expenses remained stable in the quarter, showing a YoY increase, which will be diluted as the additional production capacity is rumps-up. R$ 000 4Q13 3Q13 % 4Q12 % % Sales expenses* (114,812) (116,933) (1.8 %) (97,631) 17.6 % (445,816) (375,452) 18.7 % Percentage of net revenue 11.4% 11.4% % % 11.1% - * The sales expenses reported above do not include the numbers from the discontinued operation (Deca Piazza, Argentina) in accordance with CPC 31 (IFRS). SALES EXPENSES (IN R$ MILLION) AND PERCENTAGE IN RELATION TO NET REVENUES Percentage in relation to net revenues Sales expenses GENERAL AND ADMINISTRATIVE EXPENSES General and Administrative Expenses totaled R$127.9 million for 2013 as a whole. On an annual comparison these expenses showed an increase of 17.4 %, basically as a consequence of the acquisitions, already mentioned, and collective wage increase agreements. In relation to Net Revenue, however, these expenses remained stable. 4Q12 1Q13 2Q13 3Q13 4Q13 R$ 000 4Q13 3Q13 % 4Q12 % % General and administrative expenses* (32,294) (31,387) 2.9 % (28,612) 12.9 % (127,898) (108,904) 17.4 % Percentage of net revenue 3.2% 3.1% - 3.1% - 3.3% 3.2% - * General and administrative expenses reported above does not include the discontinued operation (Deca Piazza, Argentina), in CPC 31 (IFRS). 7

8 EBITDA The table below shows the reconciliation of Ebitda, in accordance with the system pursuant to CVM Instruction No. 527/12. Taking this result, and as a way of better portraying the Company s operational cash generation, two adjustments have been made, (1) stripping out events of an accounting and non-cash nature from Ebitda and (2) disregarding events of an extraordinary nature. In this way, and in keeping with the best practices, the following table shows the calculation of this indicator. RECONCILIATION EBITDA (R$ 000) 4Q13 3Q13 % 4Q12 % % Net income (1) 70, ,200 (58.7%) 149,400 (53.0%) 520, , % Income tax and social contribution 35,567 50,824 (30.0 %) 37,824 (5.9) 170, , % Net financial result 37,552 30, % 29, , ,828 (1.6 %) Ebit 143, ,436 (43.0 %) 216,230 (33.7 %) 807, , % Depreciation, amortization and depletion 151,941 90, % 88, % 407, , % Depletion tranche of biological assets 57,071 57, % 47, % 218, , % Ebitda according to CVM No. 527/12 352, ,821 (11.6%) 351, % 1,433,259 1,188, % Ebitda margin CVM No. 527/ % 38.8 % % % 35.2 % - Change in fair value of biological assets (40,863) (73,753) - (39,933) - (191,519) (144,574) - Employee benefit (1,114) (10,379) - (7,506) - (15,587) (14,124) - Others (192) (192) - 4,830 - (357) 4,638 - Extraordinary events (2) (5,739) (4,059) (7,750) - (25,699) (9,796) - Recurring adjusted Ebitda 304, ,438 (1.9%) 301, % 1,200,097 1,024, % Recurring adjusted Ebitda margin 30.2% 30.2% % % 30.4% - (1) 4Q13: writeoff related to the first installment qcquired in the capital of Tablemac, of 37%, of (-) US$53,574K. (2) Events of an extraordinary nature, namely: 2013: (+) R$42,318K referring to the reversion of the surplus arising from the closed defined benefit pension plan, of Fundação Itaúsa; (-) R$14,362K referring to the discontinuation of the operations of Deca Piazza; and (-) R$2,257K referring to other adjustments. 2012: (+) R$16,395K referring to the reversion of half-yearly PIS and (-) R$6,599K as a result of discontinued operations (Deca Piazza, Argentina). Ebitda for the year, in accordance with the methodology defined by CVM Instruction No. 527/12, totaled R$1,433.3 million, with Ebitda margin of 37.0 %. Disregarding events of an accounting nature and non-cash basis, in addition to those which are non-recurring, the adjusted result would amount to R$1,200.1 million, equivalent to an annual increase of 17.1 %, and Ebitda margin of 31.0 %, compared to 30.4 % in In the 4 th quarter, there was a slight retraction in adjusted and recurring Ebitda, of 1.9 %, to R$304.5 million, but with margins stable, when and change compared to the immediately preceding quarter. This lower level of cash generation was the result of expenses associated to the period of the ramp-up of the new MDF and vitreous chinaware units, and the normal evolution in direct production costs and expenses. ORIGIN OF ADJUSTED RECURRING EBITDA (IN % 4Q13) Deca Division 23.3 Wood Division

9 NET EARNINGS Recurring net earnings amounted to R$561.6 million for 2013 as a whole, up by 23.3 % when compared to the previous year. The recurring result in the 4 th quarter amounted to R$118.1 million. The extraordinary result in the period refers to the write-off of the premium paid for the control of Tablemac, seeing that the initial stake of 37 % was acquired for COP$12.00, as with the achievement of control was made at for COP$8.60. This is due to the application of CPC 15 Combination of Businesses (Acquisition of Control by Stages), which determines that Duratex must again measure its previous equity stake acquired in the company in accordance with its fair value, recognising its results the resulting gain or loss, should there be one. In this case, Duratex incurred an accounting write-off of the premium of R$53.6 million, with no cash effect. The drop in profit compared to the immediately preceding the third quarter is explained by the higher contribution from the mark-to-market of biological assets in the previous quarter, and the slower rhythm of operations in the period. Of particular note is the recurring ROE for the year as a whole, of 13.3 % which represents a significant increase of 1.5 percentage points compared to the previous year. R$ 000 4Q13 3Q13 % 4Q12 % % Net earnings (1) 70, ,200 (58.7 %) 149,400 (53.0 %) 520, , % Discontinued operations (2) (5,739) (4,059) - 2,278-14,362 6,599 - Extraordinary events (1) 53, (6,618) - 27,134 (10,821) - Recurring net earnings 118, ,141 (28.9%) 145,060 (18.6%) 561, , % ROE 6.4 % 15.9 % % % 11.9 % - Recurrent ROE 10.8 % 15.5 % % % 11.8 % - (1) In addition to the effect on profit of the events already mentioned, due to the reconciliation of Ebitda, in the 4 th quarter of 2013 there was the recognition of the write-off of the premium on the acquisition of control of Tablemac. This impact amounted to (-) R$53,574K and had no effect on Ebitda. (2) Note the discontinued operations (Deca Piazza, Argentina). DIVIDENDS/INTEREST-ON-EQUITY Shareholders are statutorily guaranteed with a minimum obligatory dividend of 30 % of adjusted net profit for the period. For the year as a whole, total gross remuneration to shareholders amounted to R$222.7 million, equivalent to an adjusted net value of R$197.3 million, or approximately R$0.33 per share. This figure is equivalent to 40 % of adjusted net earnings for the period, and thus 33 % higher than the dividends requirement. VALUE ADDED Value Added in the period totaled R$2,155.5 million, up 17.0 % compared to the previous year. Of this amount, R$752.5 million, equivalent to 15.1 % of the revenues obtained, and 34.9 % of the total value added, was paid to federal, state and municipal governments in the form of taxes and contributions. DISTRIBUTION OF VALUE ADDED (IN % 2013) A net distribution was previously paid out on August 15, 2013, in the form of interest-on-equity, in the sum of R$80.9 million. Therefore the balance, with a net value of R$116.4 million, or approximately R$0.19 per share, will be distributed to shareholders from February 28, 2014 onwards. Remuneration for financing 10.2 Remuneration to government 34.9 Remuneration to shareholders 24.1 Remuneration for labor

10 INDEBTEDNESS Gross consolidated debt, at the end of December 2013, came to a total of R$2,450.8 million, equivalent to a net debt of R$1,454.0 million, which represents a nominal annual increase of 6.2 %, compared to the relative debt in the same period in 2012, and is the result of investments in expansion and acquisitions made in the period. This level of net debt is equivalent to 1.17x Ebitda in the last 12 months, and 33.3 % of shareholders equity, at the end of December, which can be considered low. During the year, new loans were taken out in the amount of R$577.3 million, with R$571.5 million in loans paid back. In this way, the financial result remained stable: (-) R$117.0 million in 2013, compared to (-) R$118.8 million the previous year. R$ /31/ /30/2013 Var. R$ 12/31/2012 Var. R$ Short-Term debt 716, , , ,774 34,599 Long-Term debt 1,734,468 1,778,034 (43,566) 1,720,013 14,455 Total debt 2,450,841 2,393,303 57,538 2,401,787 49,054 Cash and equivalent 996, , ,968 1,032,077 (35,234) Net debt 1,453,998 1,561,428 (107,430) 1,369,710 84,288 Net debt/equity (in %) 33.3 % 35.7 % % - Net debt/ebitda LTM DEBT PAYDOWN SCHEDULE (IN R$ MILLION) Amortization GROSS DEBT AT THE END OF DECEMBER 2013 (IN R$ MILLION) Long-Term 1, ORIGIN OF DEBT (IN %) Short-Term and onwards Foreign currency* 19.6 * 100% swapped to reais. National currency 80.4 FINANCIAL REVENUES AND EXPENSES (R$ 000) 4Q13 3Q13 % 4Q12 % % Financial revenue 29,661 23, % 20, % 102,656 89, % Financial expenses (67,213) (53,821) 24.9 % (49,638) 35.4 % (219,621) (207,878) 5.6 % Net financial result (37,552) (30,412) 23.5% (29,006) 29.5% (116,965) (118,828) (1.6%) 10

11 OPERATIONS WOOD DIVISION 4Q13 3Q13 % 4Q12 % % SHIPMENTS (IN M 3 ) Standard 416, , % 426,192 (2.3 %) 1,543,240 1,577,830 (2.2 %) Coated 302, , % 273, % 1,124,988 1,057, % Total 718, , % 699, % 2,668,228 2,635, % FINANCIAL HIGHLIGHTS (R$1,000) Net revenue 675, , % 621, % 2,505,914 2,216, % Domestic market 646, , % 595, % 2,382,404 2,113, % Export market 29,211 28, % 25, % 123, , % Net unit revenue (in R$ per m 3 shipped) Unit cash cost (in R$ per m 3 shipped) (1.2 %) % % (500.82) (518.72) (3.5 %) (469.79) 6.6 % (490.40) (459.08) 6.8% Sales expenses (64,580) (63,166) 2.2 % (52,969) 21.9 % (244,693) (208,701) 17.2 % General and administrative expenses (15,402) (14,959) 3.0 % (15,550) (1.0 %) (63,273) (62,090) 1.9 % Operating profit before financial results (1) 84, ,027 (49.7%) 148,238 (43.0%) 540, , % Depreciation, amortization and depletion (1) 133,960 73, % 72, % 337, , % Depletion tranche of biological assets 57,071 57, % 47, % 218, , % Ebitda according to CVM No. 527/12 (2) 275, ,836 (7.8 %) 267, % 1,096, , % Ebitda margin according to CVM No. 527/ % 45.6 % 43.1 % 43.7 % 40.3 % Variation in fair value of biological assets (40,863) (73,753) (44.6 %) (39,933) 2.3 % (191,519) (144,574) 32.5 % Employee benefits (1,008) (5,483) (81.6 %) (5,185) (80.6 %) (7,797) (9,981) (21.9 %) Others (192) (192) 4,830 (357) 4,638 Extraordinary event (3) - - (6,224) - (15,803) (10,316) Recurring adjusted Ebitda 233, , % 220, % 880, , % Recurring adjusted Ebitda margin 34.6% 33.4% % % 33.0% - (1) Included under these headings, in the 4 th quarter of 2013, is the result referring to the write-off of the premium paid for the control of Tablemac, seeing that the initial stake of 37% was acquired for COP$12.00 with control acquired for COP$8.60. This is due to the application of CPC 15 Combination of Businesses (Acquisition of Control by Stages), which determines that Duratex must again measure its previous equity stake acquired in the company in accordance with its fair value, recognizing in the result the resulting gain or loss, should there be one. In this case, Duratex incurred an accounting write-off of the premium of (-) R$53.6 million, with no cash effect. (2) Refers to Ebitda, in accordance with the system set out by CVM Instruction No. 527/12. Based on this result, and so as to better represent the Company s operational cash generation, two adjustments have been made: (1) the stripping out of events of an accounting and non-cash nature from Ebitda and (2) the disregarding of events of an extraordinary nature. In this way, in keeping with the best practices, there follows the calculation of the indicator which best reflects the Company s cash generation. (3) 1Q13 (+) R$18,060K refers to the reversal of the surplus arising from the close defined benefit pension plan of Fundação Itaúsa and (-) R$2,257K referring to other adjustments. In 2012 events of this nature included the reversion of half-yearly PIS. The Wood Division produced a record performance in the year, both in terms of shipment levels as well as sales revenue achieved. Panel shipment volume in 2013 increased by 1.3 % compared to 2012, reaching the historic level of approximately 2.7 million cubic meters. Taking a sector comparison, this performance was below the 5.6 % increase in demand. Despite the entry of new capacity, the Company recovered its price base, in January 2013, seasonally speaking is a less favourable period. As a result of the successful strategy was improved Division s profitability evidenced by the evolution of 20.3 % of recurring Ebitda. In the 4 th quarter of 2013, the Company s shipments were up 11

12 2.7 %, compared to the same period a year earlier, already including a contribution from the new MDF plant in Itapetininga, inaugurated in the third quarter of The higher level of volume shipped, the repositioning of the pricing base and the improvement in the mix of products shipped, all drove up net revenue to an unprecedented figure of R$2,505.9 million for the year, and R$675.4 million for the 4 th quarter of The rise in Net Unit Revenue provides evidence of these factors, having increased by 11.7 % on an annual comparison. Meanwhile, the unit cash cost increased by a lower figure of 6.6 %, representing a significant improvement in operating margins. As a complement to its market communications published on May 18 and November 8, 2012 and September 2, 2013, Duratex also announces to its shareholders and the market in general that it has concluded the carrying out of a public tender offer for the acquisition of Tablemac S.A. shares, a leading company in the Colombian market in the manufacture of industrialized wood panels. 14,772,002,647 shares were acquired, at a price of COP$8.60 per share, representing an additional investment of approximately R$152 million in that company. The results from Tablemac, which up to this moment had been recognized in accordance with the equity income result method, from January 2013 will form a part of Duratex s consolidated results. Because of the factor, the recurring adjusted operational result, as measured by Ebitda, of R$880.6 million for the year, represented an increase of 20.3 % compared to 2012, with an increase in Ebitda margin to 35.1 %, 2.1 percentage points higher than the margin reported in In the 4 th quarter of 2013, Ebitda totaled R$233.5 million, with Ebitda margin of 34.6 %. A nominal increase of 5.7 % compared to the same period in During the year, several important investments were concluded, already operational, which should therefore contribute to putting the Company in a better position in the market with respect to its competitors. At the beginning of September 2013, the first commercial sheet of MDF was shipped, manufactured at the new plant in Itapetininga, which has an annual production capacity of 520,000 m³. Additionally, the investment in the unit at Taquari was concluded, to remove the bottleneck in its MDP production capacity, which added 230,000 m 3 of production capacity to the plant. Finally, at the end of the quarter, the first sheet of high gloss finish was produced, thus creating an addition to the Division s sales portfolio, as well as enriching its sales mix. WOOD SALES BREAKDOWN (IN % 4Q13) Others 3.9 Building industry 14.2 Furniture industry 55.3 Resales

13 DECA DIVISION Due to the discontinuation of the Deca Piazza operations in Argentina, and consequently application of CPC 31 (IFRS), the values below are net of the results of the Argentine operation are consolidated under Discontinued Operations. 4Q13 3Q13 % 4Q12 % % SHIPPED (IN 000 ITEMS) Basic products 2,142 2,651 (19.2 %) 2,249 (4.8 %) 9,429 8, % Finishing products 4,344 4,927 (11.8 %) 4,357 (0.3 %) 18,554 17, % Total 6,486 7,578 (14.4 %) 6,606 (1.8%) 27,983 25, % FINANCIAL HIGHLIGHTS (R$1,000) Net revenue 332, ,750 (10.5%) 309, % 1,366,791 1,156, % Domestic market 325, , %) 303, % 1,335,962 1,131, % Export market 7,325 7,630 (4.0 %) 6, % 30,829 24, % Net unit revenue (in R$ per item shipped) Unit cash cost (in R$ per item shipped) % % % (29.93) (27.78) 7.7% (27.69) 8.1% (27.83) (25.60) 8.7% Sales expenses (50,232) (53,767) (6.6 %) (44,662) 12.5 % (201,123) (166,751) 20.6 % General and administrative expenses (16,892) (16,428) 2.8 % (13,062) 29.3 % (64,625) (46,814) 38.0 % Operating profit before financial results 53,143 79,350 (33.0%) 70,270 (24.4%) 281, , % Depreciation and amortization 17,981 16, % 16, % 69,574 61, % Discontinued operations 5,739 4, % (2,278) (14,362) (6,599) Ebitda according to CVM No. 527/12 76,863 99,985 (23.1 %) 84,402 (8.9 %) 337, , % Ebitda margin according to CVM No. 527/ % 26.9 % 27.3 % 24.7 % 25.6 % Employees benefits (106) (4,896) (97.8 %) (2,321) (95.4 %) (7,790) (4,143) 88.0 % Discontinued operations (1) (5,739) (4,059) 2,278 14,362 6,599 Extraordinary events (2) - - (3,804) (24,258) (6,079) Recurring adjusted Ebitda 71,018 91,030 (22.0 %) 80,555 (11.8 %) 319, , % Recurring adjusted Ebitda margin 21.3 % 24.5 % % % 25.3 % - (1) Includes discontinued operations (Deca Piazza, Argentina). (2) 2013: (+) R$24,258K referring to the reversion of the surplus in Duratex s defined benefit closed employee retirement plan and 2012 (+) 6,079K referring to the recovery of half-yearly PIS. The results obtained by Deca were a record. The volume shipped reached an unprecedented 27.9 million items (26.2 million if the volume shipped by Mipel and Thermosystem were to be disregarded). The repositioning of the pricing base, together with the increase in the level of shipment volume, took Net Revenue up to R$1,366.8 million, the equivalent of an annual increase of 18.2 %. This growth in revenue greatly exceeds the overall growth in revenue in the finishing materials sector, measured by the ABRAMAT index. According to this, sector revenue grew by 3.0 % during the year, compared to an initial forecast of 4.0 %. It is worth pointing out that the performance of the sector, including Deca, was adversely affected in the 4 th quarter of During the period there was a reduction in the rhythm of shipment volumes, which exceeded that in previous periods. According to ABRAMAT, sales of these products saw a drop of 6.1 % in December, compared to the same month in 2012, being down 16.1 % compared to November. Deca reported a drop in sales of 9.4 % compared to the same month in 2012, and down 15.1 % compared to November. We believe this performance to be transitory, and the result of high levels of stock in the retail chain. The projected growth for the building materials sector for 2014 is 4.5 %, according to ABRAMAT. 13

14 Recurring adjusted Ebitda for the year, of R$319.5 million, with Ebitda margin of 23,4 %, exceeded the result in 2012 by 9.3 %. In the fourth quarter this result came to a total of R$71.0 million, with Ebitda margin of 21.3 %, below the figure reported in the immediately preceding period. This performance can be explained by the increase in costs, evidenced by the growth in Unit Cash Cost on the same basis as revenue, in 2013, and 3.1 percentage points higher than this over the quarter, following the collective wage increase agreement in the metal bathroom fitting segment, in the period, and costs associated with the ramp-up of the vitreous chinaware unit inaugurated in Queimados. On a positive note, we draw attention to the completion of the acquisition of Thermosystem (electronic showers and solar heating panels), in January 2013, and the repositioning of Mipel, acquired in the second half of 2012, other highlights include investments in the units in Jundiaí and Queimados to increase their respective production capacities of metal bathroom fittings and vitreous chinaware. The results of these expansion projects will be seen during 2014 and DECA SALES BREAKDOWN (IN % 4Q13) It should be pointed out that Deca has discontinued its activities in Argentina, which should benefit the future performance of the Division, seeing that this operation has been incurring losses on a continuing basis. Others 2.0 Wholesale 9.0 Construction firms 21.2 Re-sales/ home center 67.8 CAPITAL MARKETS AND CORPORATE GOVERNANCE At the end of 2013, Duratex had a market capitalization equivalent to R$7,938.1 million, based on a closing share price of R$ It is important to bear in mind that in April 2013 there was a stock dividend of 10 %, which increased the quantity of shares in issue from 550,054,081 to 605,059,489. During the 3 rd quarter, 246,100 trades were carried out in the shares of Duratex on the spot market of BM&FBovespa, with a total of 75.9 million shares trading hands, which represents a total trading volume of R$1,022.5 million, an average daily trading volume of R$16.7 million. This level of liquidity ensured the presence of the Company s share in the Ibovespa portfolio, which consists of 60 different shares, the principal inclusion criteria for which cover aspects linked to share liquidity. The shares of Duratex are listed on the Novo Mercado, a segment of BM&FBovespa which brings together companies with the highest level of corporate governance. The Company also has a differentiated dividend policy requiring it to distribute a minimum of 30 % of adjusted net earnings, while also adhering to the Abrasca Self-Regulation and Good Practices Code for Listed Companies and adhered to the Arbitrage Chamber to solve eventualy shareholders claims. It is important to point out that, in 2013, Duratex was selected, for the second year running, to form part of the Dow Jones Sustainability Emerging Markets Index (DJSI), one of the most demanding listing indices which evaluates economic and socioenvironmental performance of listed companies. The Company was classified in the industrial materials group, in the Paper & Forestry Products sector. In all, 81 companies were selected to be part of this portfolio, of these 17 being Brazilian. 14

15 Additionally, the shares of Duratex remained part of the new version, 2013/2014, of the BM&FBovespa Corporate Sustainability Index (ISE), which remains in force from January 6, 2014 to January 2, The shares of Duratex have featured as part of this index since its 2008/2009 edition. The Company is one of 51 listed companies in the segment that evaluate the application of sustainability concepts in their business management. SHAREHOLDING STRUCTURE AS OF SEPTEMBER 2013 (IN %) Pension funds Treasury Others 11.1 Itaúsa and families 40.0 Another event of note during the year was the obtaining of the prize Best Company for Shareholders in 2013 in the category of companies with assets of between R$5 billion and R$15 billion, promoted by Capital Aberto magazine. The ranking lists the 150 companies with the highest daily trading volume on Bovespa, between April 2012 and March Ligna and family 20.0 Foreign investors 28.4 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY At the end of the period, the Company had 11,733 employees, who received a total remuneration of R$99.1 million in the quarter. The increase in the number of employees compared to 2012, is related to the acquisition of Thermosystem, in addition to the hiring of new staff following the inauguration of the new production units. AMOUNTS IN R$ 000 4Q13 3Q13 % 4Q12 % % NUMBER OF EMPLOYEES 11,733 11,844 (0.9 %) 10, % 11,733 10, % Remuneration 99,055 96, % 86, % 378, , % Obligatory legal charges 53,053 54,017 (1.8 %) 48, % 207, , % Differentiated benefits 23,936 21, % 17, % 83,736 66, % During 2013 the Company directly applied R$30.5 million in environmental initiatives, of particular note being the treatment of effluents, the collection of residues and the maintenance of forestry areas. This figure represents an increase of 10.2 % compared to investment of this nature carried out in Other highlights in the period include the program for the dissemination of Platform 2016, which was replicated by employees in the various units, being part of the working dialogue and relationship through which it is sought to impact the greatest possible number of employees with respect to the current sustainability panorama. It also seeks to connect trends and global and national directives to the reality at Duratex and its more recent proposals in this area. For seven years Duratex has published its Annual and Sustainability Report in accordance with the directives of the Global Reporting Initiative (GRI), a multi-stakeholder organization, based in Holland, recognized internationally for the establishment of clear criteria which permit the evaluation of economic, social and environmental performance of the organizations. In 2013, in line with the principles of transparency and continual improvement and manage- 15

16 ment, the Company adhered to the G4 version of GRI, launched in May, The Company keeps abreast of discussions involving the development of an integrated report model, which will permit further alignment between business strategies and socio-environmental performance in the rendering of its accounts to public audiences. The 2013 EXAME Guide recognized Duratex as the most sustainable company in the Building Sustainability Materials Sector. The publication, now in its 14 th addition, carries out the largest and bestknown assessment of corporate sustainability in Brazil. The Guide highlighted the work of the Company in its reduction of greenhouse gas emissions, with the replacement of diesel oil with wood chips to be used as fuel, and the expansion of its use of natural gas. Duratex s commitment to innovation and the efficiency of its products was recognized by the market, which highlighted the Deca Division as the winner of the Eco-prize, for its Save urinal, an innovative product which does not use water. In addition to this, readers of the Green Building magazine, published by Nova Gestão, elected Deca and Durafloor as outstanding brand names in sustainable construction. Deco was ranked in the first place in the category of lavatory bowls, showers and metal bathroom fittings, while Durafloor was awarded third place in the flooring category. The forestry unit at Taquari (RS) obtained Forest Stewardship Council Certification (FSC), which applies the standards of the International Council for Forestry Management. Duratex s other forestry units in the states of São Paulo and Minas Gerais already carry this certification. The Vitreous Chinaware Unit Jundiaí-II received a recommendation for the certification of its Environmental Management System, in accordance with the requirements of ISO 14001:04. This recognition attests to the existence of an environmental management system in the unit production process, and contributes to improving the operational management model and increasing the differentiation of Duratex s products with consumers looking for companies with more responsible and differentiated practices linked to sustainability. The Deca Vitreous Chinaware Business Units (Jundiaí I and Sul), Deca Metals (São Paulo and Jundiaí) and Panels (Agudos SP, Itapetininga, Taquari and Uberaba MG) also carry this certification. During the fourth quarter, a number of projects were completed of a social, cultural and sporting nature, of particular note being: (i) Projeto Esportivo Futuros Craques, implemented in the city of São Paulo, through the Association for the Development, Education and Recuperation of Those with Special Needs (ADERE); (ii) the EX4 Cultural Project in Schools, which held eight presentations at Unified Education Centers in the city of São Paulo and put on a show at Sesi da Vila Leopoldina; (iii) Popular Cinema Cultural Project Cineco which has the purpose of providing encouragement and dissemination of cinema, in addition to the refurbishment of public spaces for socialisation carried out in the cities of Estrela do Sul (MG), Uberaba, São Leopoldo (RS) and Taquari. Other projects were started in the 4 th quarter, and are ongoing, such as (i) A Step for Education, which serves 160 children between the ages of 8 and 17, in the Paraisópolis community, using football as a lever for social inclusion and a tool for the development of ethical and citizenship values. The project provides supplemental nutrition, transport, nutritional monitoring, as well as providing psychological, medical and dental support, integration into society (away matches) and qualification. The project was begun in October 2013, and is designed to run for 1 year; (ii) Young Designers, which has the aim of creating an awareness of the value of design, helping to disseminate this culture across the country. The program includes Industrial Design presentations at Brazilian universities across the country and serves as a stimulus for young talent in this area. ACKNOWLEDGEMENTS We are deeply grateful for all the support received from our shareholders, the dedication and commitment of our employees, the partnerships we have with our suppliers and the confidence placed in us by our clients and consumers. The Management 16

17 FINANCIAL STATEMENTS (IN R$ 000) IFRS CONSOLIDATED 12/31/2013 AV % 09/30/2013 AV % 12/31/2012 AV % ASSETS Current assets 2,588, % 2,432, % 2,364, % Cash and cash equivalents 996, % 831, % 1,032, % Trade accounts receivable 913, % 988, % 796, % Inventory 546, % 479, % 414, % Other receivables 42, % 45, % 33, % Recoverable taxes and contributions 80, % 63, % 83, % Other credits 6, % 21, % 5, % Non-current assets held for sale 2, % 3,414 - Non-current assets 5,589, % 5,667, % 5,393, % Restricted deposits 28, % 27, % 25, % Other receivables 62, % 72, % 62, % Pension plan credits 107, % 106, % 92, % Recoverable taxes and contributions 50, % 58, % 45, % Deferred income tax and social contribution 61, % 74, % 63, % Investments in subsidiaries and associate 121, % 177, % 173, % Other investments % % % Property, plant and equipment 3,456, % 3,436, % 3,257, % Biological assets 1,125, % 1,129, % 1,102, % Intangible assets 573, % 582, % 570, % Total assets 8,178, % 8,100, % 7,758, % 17

18 LIABILITIES AND STOCKHOLDERS EQUITY (IN R$ 000) IFRS LIABILITIES AND STOCKHOLDERS EQUITY 12/31/2013 AV % 09/30/2013 AV % 12/31/2012 AV % Current liabilities 1,305, % 1,166, % 1,268, % Loans and financing 710, % 610, % 675, % Debentures 6, % 4, % 5, % Suppliers 180, % 167, % 211, % Personnel 138, % 147, % 111, % Accounts payable 110, % 128, % 102, % Taxes and contributions 79, % 99, % 69, % Dividends payable 78, % % 91, % Liabilities associated with assets held for sale 1, % 7, % % Non-current liabilities 2,508, % 2,556, % 2,466, % Loans and financing 1,625, % 1,670, % 1,617, % Debentures 108, % 107, % 102, % Contingencies 123, % 126, % 125, % Deferred income tax and social contribution 505, % 503, % 485, % Other 144, % 147, % 135, % Stockholders equity 4,365, % 4,377, % 4,023, % Capital 1,705, % 1,705, % 1,550, % Costs on issue of shares (7,823) (0.1 %) (7,823) (0.1 %) (7,823) (0.1 %) Capital reserves 323, % 321, % 314, % Revaluation reserves 74, % 77, % 83, % Revenue reserves 1,860, % 1,865, % 1,665, % Carrying value adjustments 427, % 430, % 423, % Treasury shares (18,344) (0.2 %) (18,475) (0.2 %) (10,101) (0.1 %) Noncontroling interests % 3, % 3, % Total liabilities and stockholders equity 8,178, % 8,100, % 7,758, % 18