4Q15 FACT SHEET MARKET CAP (12/31/2015) CLOSING SHARE PRICE ON 12/30/2015 NUMBER OF SHARES IN ISSUE AT THE END OF DECEMBER TREASURY SHARES FREE FLOAT

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1 FACT SHEET 4Q15 MARKET CAP (12/31/2015) R$3,912.2 m (R$3.91 bn) CLOSING SHARE PRICE ON 12/30/2015 R$5.90 NUMBER OF SHARES IN ISSUE AT THE END OF DECEMBER 665,565,438 TREASURY SHARES 2,485,759 FREE FLOAT 40% Duratex Investor Relations Director: Flavio Marassi Donatelli Manager: Guilherme Setubal Souza e Silva investidores@duratex.com.br Conference Call/Webcast: Monday February 15, 2016 Portuguese: 10 a.m. (Brasília time; 7 a.m. NYT) Monday February 15, 2016 English: 11 a.m. (Brasília time; 8 a.m. NYT) Support material: To connect: Brazilian participants: or USA participants: toll free: (English only) Access code: Duratex Web-conference: CORPORATE GOVERNANCE for addressing matters related to Corporate Governance to senior management: governanca. corporativa@duratex.com.br Shares listed on the Novo Mercado of BM&FBOVESPA 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 Three independent members on the Senior Board of Directors Advisory Committees to the Board: People, Nomination and Governance; Sustainability; Auditing and of Risk Management; Disclosure and Trading; and Evaluation of Transactions with Related Parties Dividend policy requiring a minimum distribution of 30% of adjusted net earnings Policy in force for the disclosure of Material Events and Facts in the Trading of Securities Compliance with the ABRASCA Code for Self-regulation and Good Practices in Publicly Traded Companies Shares included on the Dow Jones Sustainability Emerging Market Index, version 2014/2015 and on the BOVESPA Corporate Sustainability Index (ISE), version 2015 Brokers that cover the company: BTG Pactual, Citibank, Credit Suisse, HSBC, JP Morgan, Merrill Lynch, Morgan Stanley, Nau Securities, Santander e Votorantim and XP Investimentos. For those unable to accompany the conference calls live, full audio playback will be available via the Company s website ( or via telephone (55-11) or (55-11) for both Portuguese and English versions, the access codes being # (Portuguese) and # (English).

2 Consolidated Financial Results (in R$ 000) 4Q15 3Q15 % 4Q14 % % HIGHLIGHTS Volume shipped Deca ( 000 items) 6,217 6, % 5, % 25,955 26, % Volume shipped Wood (m 3 ) 595, , % 744, % 2,498,102 2,787, % Consolidated net revenue 955,009 1,041, % 1,040, % 3,963,214 3,984, % Gross profit 240, , % 273, % 1,099,801 1,217, % Gross margin 25.2% 28.8% 26.3% 27.8% 30.5% EBITDA according to CVM No. 527/12 (1) 168, , % 302, % 911,338 1,227, % EBITDA Margin CVM No. 527/ % 23.1% 29.1% 23.0% 30.8% Adjustments for non-cash events (6,989) (24,123) -71.0% (35,408) -80.3% (107,911) (230,445) -53.2% Non-recurring events (2) 23,495 9, ,317 (45,081) % Recurring adjusted EBITDA (3) 185, , % 267, % 836, , % Recurring adjusted EBITDA margin 19.4% 21.8% 25.7% 21.1% 23.9% Net income 54,356 30, % 90, % 191, , % Recurring net income (4) 76,239 38, % 85, % 221, , % Recurring net margin 8.0% 3.7% 8.2% 5.6% 9.0% INDICATORS Current ratio (5) % % % Net debt (6) 1,913,568 1,941, % 1,726, % 1,913,568 1,726, % Net debt/ebitda LTM (7) % % % Average net equity 4,687,515 4,723, % 4,605, % 4,669,592 4,517, % ROE (8) 4.6% 2.6% 7.8% 4.1% 8.7% RECURRING ROE 6.5% 3.3% 7.4% 4.8% 7.9% SHARES Basic net earning per share (R$) (9) % % % Closing share price (R$) % % % Net equity per share (R$) % % % Shares held in treasury (shares) 2,485,759 2,485, % 2,485, % 2,485,759 2,485, % Market Value (R$1.000) 3,912,170 3,898, % 5,324, % 3,912,170 5,324, % Since July 1 st 2015 we have consolidated the results from Ducha Corona Ltda. (1) EBITDA (Earnings before Interest, Tax, Depreciation and Amortization): measure of operational performance in accordance with CVM Instruction No. 527/12. (2) Events of an extraordinary nature, namely: 4Q15: non-recurring workers indemnity (-) R$4,011 k; workers indemnity arising from the temporary reduction in activities at the Itapetininga unit (-) R$16,335 k; spending arising from the Ducha Corona merger (-) R$3,149 k; 3Q15: non-recurring workers indemnity (-) R$ 9,822 k; in 2014: profit from the sale of 5600 hectares given in part payment for the acquisition of the forests of Caxuana S.A. (Material Event notice of March 13) (+) R$45,514 k; reversal/formation of the contingency provision, being the main reversal of the Plano Verão provision (+) R$48,220 k; the write-off of the Thermosystem brand-name and other adjustments (-) R$27,339 k; provision for the cessation of activities at Louças Ideal LJII (-) R$21,314 k. (3) 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. (4) Events of an extraordinary nature affecting net earnings: 4Q15: employee benefit related to the temporary reduction of activities at the Itapetininga unit (-) R$5,333 k; Other non-operational results/amortization related to Ducha Corona (-) R$5,247 k; 3Q15: other non-operational results/amortization related to Ducha Corona (-) R$2,691 k. (5) Current liquidity: current assets divided by current liabilities. Indicates the amount available in R$ to cover each R$ of short-term obligations. (6) Net indebtedness: 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 profit attributable to the Company s shareholders by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares held in treasury. 2

3 Market & Business Scenario Brazil has been facing economic stagnation since 2014 with the continuing deterioration in 2015 of macro and political conditions. The year of 2015 saw rises in inflation, in the unemployment rate, in interest rates, and in credit restrictions, which together directly impacted the consumer confidence index and led to knock-on effects such as a fall in consumption, a reduction in industrial activity and growth in the rate of bad debt. Duratex has also witnessed a worsening in the markets in which it operates reflecting in sales volumes. In addition there has been pressure on costs stemming from both the increase in some consumables (electricity) and from the devaluation of the real leading the Company to take austerity measures in revising its pro- cesses and making adjustments to capacity, to not only overcome the current period but also build the foundations for a recovery in demand. The panel segment in Brazil showed a fall of 20% in the volume of wood shipped for the domestic market, versus the same period (4Q) in The annual fall is 11.3%, with a fall of 8.9% in the volume of MDF and a 14.9% fall in MDP, according to data released by the Brazilian Lumber Industry (IBA) The ABRAMAT indicator, which measures the performance of the sales of construction materials in the domestic market, shrank by 12.6% in 2015 versus Strategic Management and Investments Investments totaled R$576.2 m in 2015, of which R$116.2 m refer to acquisition of Corona and R$178 m to the planting and maintenance of forests. The Company will continue to invest only in the maintenance of its factories and forests, predicting investments of around R$420 m in Continuing with internal actions to prepare the Company for the economic scenario and adapt its capacity, in December Duratex announced a temporary reduction in the some of the activities of the Itapetininga unit. The coating and high sheen lines remain active and this unit will continue to hold strategic importance to the Company, with other production coming back online as soon as the market and the economy recover. The indemnity costs have been recognized in their entirety during this exercise. In 2015 the projects to improve internal efficiency and reduce costs reached savings of R$ 45 m. The other internal projects Zero Based Budgeting (OBZ), the Duratex Management System, the logistics project and development of IT focusing on sales and the shipping of materials continue to be of strategic priority to the company in 2016 and should continue to realize the economic and efficiency gains anticipated from these initiatives. The objectives for the year have been mapped, quantified and included in the targets for Senior Management, and have been rolled out through the management levels together with detailed monthly tracking, thus ensuring the focus of all of the organization in achieving these targets. Another priority of the Company is the expansion of exports highlighting the performance of the Wood division, that had a significant increase in the volumes of 2015 and should keep this growth rhythm in

4 Consolidated Financial Highlights (IFRS) NET INCOME Net income totaled R$955 m for the quarter, with R$99.2 m from the shareholding in the Colombian company, Tablemac. For the year to date there has been a fall in revenue of 0.5% compared to 2014 and a fall of 8.3% versus the previous quarter. R$ 000 Consolidated 4Q15 3Q15 % 4Q14 % % Net revenue 955,009 1,041, % 1,040, % 3,963,214 3,984, % Domestic market 782, , % 937, % 3,360,734 3,577, % Foreign market 172, , % 102, % 602, , % R$ 000 ex Tablemac 4Q15 3Q15 % 4Q14 % % Net revenue 855, , % 974, % 3,614,388 3,744, % Domestic market 782, , % 937, % 3,360,734 3,577, % Foreign market 73,600 71, % 37, % 253, , % The increase in exports allied to the strong performance by Tablemac led to annual growth in income from the external market of 48.1% versus 2014, which represented 15% of total income compared to 10% the previous year; in the fourth quarter this percentage reached 18%. NET INCOME BY AREA OF OPERATION (IN % FOR 4Q2015) Wood Deca the previous quarter. The Company s actions related to cost reduction and process improvement mostly offset the pressures driving an increase in the COGS, with the annual increase being just 1%, despite pressures stemming from the cost of electricity and the devaluation of the real. Gross margin for the fourth quarter of 2015 was 25.2%, lower than the margin for the previous quarter which was 28.8%. The gross margin for 2015 was 27.8% versus 30.5% in This fall stems mainly from the reduction in volumes and consequent concentration of fixed costs, and from the costs arising from the increase in inflation, appreciation of the dollar and energy prices. COST OF GOODS SOLD (COGS) The Cost of Goods sold, net of depreciation, amortization and exhaustion, and net variation in the fair value of biological assets, in other words, the cash cost, totaled R$606.6 m in the quarter, a fall of 4.3% compared to The gross margin for Tablemac in 2015 was 36.9%, up from 33.6% the previous year. With the devaluation of the Colombian peso, imported wooden panels, which account for half of the market, suffered an increase in price, which favored Tablemac s margins. 4

5 R$ 000 Consolidated 4Q15 3Q15 % 4Q14 % % CASH COGS (606,619) (634,127) -4.3% (638,522) -5.0% (2,442,451) (2,418,242) 1.0% Variation in fair value of biological assets (1) 21,188 26, % 32, % 124, , % Depletion tranche of biological assets (29,947) (34,408) -13.0% (48,974) -38.9% (146,322) (180,604) -19.0% Depreciation, amortization and depletion (98,876) (99,334) -0.5% (112,197) -11.9% (399,206) (389,607) 2.5% Gross profit 240, , % 273, % 1,099,801 1,217, % Gross margin 25.2% 28.8% % % 30.5% - R$ 000 Consolidated 4Q15 3Q15 % 4Q14 % % CASH COGS (549,537) (581,083) -5.4% (598,048) -8.1% (2,238,173) (2,270,501) -1.4% Variation in fair value of biological assets (1) 22,262 25, % 32, % 124, , % Depletion tranche of biological assets (29,947) (34,408) -13.0% (48,974) -38.9% (146,322) (180,604) -19.0% Depreciation, amortization and depletion (94,473) (95,193) -0.8% (108,878) -13.2% (382,826) (377,577) 1.4% Gross profit 204, , % 250, % 971,083 1,136, % Gross margin 23.9% 27.7% % % 30.4% - (1) In a semester-on-semester comparison, the increase in the variation in the fair value of the biological asset refers to the mark-to-market of the forests acquired from Caxuana. NET INCOME (IN R$ MILLION) EX TABLEMAC CASH COST (IN R$ MILLION) AND GROSS MARGIN (IN %) EX TABLEMAC Cash cost Gross margin Q14 1Q15 2Q15 3Q15 4Q15 4Q14 1Q15 2Q15 3Q15 4Q15 5

6 COST OF GOODS SOLD (% 4Q15 ) Wood Division Deca Division Other materials Resin Wood* Papéis Labor Depreciation & amortization Electricity Fuel Labor Other materials Metal Depreciation & amortization Fuel Electricity * Includes exhaustion of the value invested in the cost of wood. * Not including the indemnity costs arising at Deca. SALES EXPENSES Sales expenses totaled R$148.9 m in the quarter. This represents a drop of 3.2% in relation to the previous quarter due to lower volumes. In total, 2015 saw an increase of 10.7% versus the previous year. The majority of this increase stemmed from export freight costs. The volume exported in 2015 increased over 50% compared to the previous year, which is reflected in the freight costs. In addition there was an increase in the debt provision arising from an increase in delinquency. R$ 000 Consolidated 4Q15 3Q15 % 4Q14 % % Sales expenses (148,906) (153,869) -3.2% (135,191) 10.1% (580,209) (524,218) 10.7% Percentage of net revenue 15.6% 14.8% % % 13.2% - 6

7 SALES EXPENSES (IN R$ MILLION) AND % RELATED TO NET INCOME EX TABLEMAC Sales expenses related to net income SALES & GENERAL ADMINISTRATIVE EXPENSES Sales and general admin expenses totaled R$43.2 m for the quarter, with R$2.8 m relating to Tablemac. For the full year these expenses totaled R$154.6 m with an increase of 13.7% versus Excluding the incorporation of Corona, non-recurring indemnity, and consultancy expenses related to implementing the Duratex program, this represents an increase of 4.3%. 4Q14 1Q15 2Q15 3Q15 4Q15 R$ 000 Consolidated 4Q15 3Q15 % 4Q14 % % General and administrative expenses (43,182) (40,339) 7.0% (34,057) 26.8% (154,632) (136,034) 13.7% Percentage of net revenue 4.5% 3.9% - 3.3% - 3.9% 3.4% - EBITDA The table below shows a reconciliation of EBITDA, in line with the system set out in CVM Instruction No. 527/12. Based on this result, and as a way of better expressing the Company s operational cash generation, two adjustments have been made: the exclusion of events of a purely accounting and non-cash nature from EBITDA, and the disregarding of extraordinary events. Thus, in keeping with best practices, the following table shows the calculation of the indicator which best reflects the Company s cash generation. 7

8 Reconciliation EBITDA (R$ 000) Consolidated 4Q15 3Q15 % 4Q14 % % Net income 54,356 30, % 90, % 191, , % Income tax and social contribution (81,740) 6, % (4,054) % (85,462) 51, % Net financial result 57,508 56, % 45, % 219, , % EBIT 30,124 94, % 131, % 325, , % Depreciation, amortization and depletion 108, , % 121, % 439, , % Depletion tranche of biological assets 29,947 34, % 48, % 146, , % EBITDA according to CVM No. 527/12 168, , % 302, % 911,338 1,227, % EBITDA margin CVM No. 527/ % 23.1% % % 30.8% - Change in fair value of biological assets (21,188) (26,575) -20.3% (32,770) -35.3% (124,566) (221,135) -43.7% Employee benefit 14,199 2, % (2,638) % 16,655 (6,147) % Others % 0 0.0% 0-3, % Extraordinary events (1) 23,495 9, % ,317-45, % Recurring adjusted EBITDA 185, , % 267, % 836, , % Recurring adjusted EBITDA margin 19.4% 21.8% % % 23.9% - Reconciliation EBITDA (R$ 000) ex-tablemac 4Q15 3Q15 % 4Q14 % % Net income 40,319 17, % 84, % 148, , % Income tax and social contribution (89,499) (1,205) % (5,369) % (108,665) 46, % Net financial result 57,265 54, % 43, % 214, , % EBIT 8,085 70, % 122, % 253, , % Depreciation, amortization and depletion 104, , % 117, % 422, , % Depletion tranche of biological assets 29,947 34, % 48, % 146, , % EBITDA according to CVM No. 527/12 142, , % 289, % 822,557 1,179, % EBITDA margin CVM No. 527/ % 22.5% % % 31.5% - Change in fair value of biological assets (22,262) (25,369) -12.2% (32,433) -31.4% (124,016) (220,798) -43.8% Employee benefit 14,199 2, % (2,638) % 16,655 (6,147) % Others % - (3,163) % Extraordinary events (1) 23,495 9, ,317 (45,081) % Recurring adjusted EBITDA 157, , % 254, % 748, , % Recurring adjusted EBITDA margin 18.4% 21.1% % % 24.2% - (1) Extraordinary events to highlight: 4Q15: non-recurring workers indemnity (-) R$4,011 k; workers indemnity arising from the temporary reduction in activities at the Itapetininga unit (-) R$16,335 k; EBITDA Ducha Corona (-) R$3,149 k; 3Q15: non-recurring workers indemnity (-) R$9,822 k; in 2014: profit from the sale of 5600 hectares given in part payment for the acquisition of the forests of Caxuana S.A. (Material Event notice of March 13) (+) R$45,514 k; reversal/ formation of the contingency provision, being the main reversal of the Plano Verão provision (+) R$48,220 k; the write-off of the Thermosystem brand-name and other adjustments (-) R$27,339 k; provision for the cessation of activities at Louças Ideal LJII (-) R$21,314 k. 8

9 The adjusted and recurring EBITDA totaled R$185.3 m for the quarter, a fall of 18.3% versus the previous quarter, with a margin of 19.4%, reflecting the increased pressure on margins and lower volumes experienced this quarter. For the full year, the adjusted and recurring EBITDA totaled R$836.7 m, shrinking 12.1% versus The margin for 2015 was 21.1%, lower than that for 2014, which was 23.9%. ORIGIN OF ADJUSTED RECURRING EBITDA (IN % IN 4Q15) Wood Division Deca Division NET EARNINGS Recurring net earnings totaled R$76.2 m for the quarter and R$221.9 m for the year. This value represents a decrease of 38.2% compared to 2014 and is mainly due to the following factors: Looking to take full tax advantage of the JCP (interest on own capital), the Company declared the maximum possible, in order to receive a credit from the IR for the next few years. This resulted in an additional R$37.8 m in the year. In 2014 the biological assets had positive effects that were non-recurring represented mainly by gains of R$64 m (after income tax) from the purchase of forests (Caxuana in March 2014) that did not repeat in The increase in interest rates in 2015 impacted net earnings compared to 2014 in R$22.5 m considering that net debt stayed closely the same in the period mentioned. R$ 000 Consolidated 4Q15 3Q15 % 4Q14 % % Net earnings 54,356 30, % 90, % 191, , % Extraordinary events (1) 21,883 8,259 - (4,473) - 30,142 (34,512) - Recurring net earning 76,239 38, % 85, % 221, , % ROE 4.6% 2.6% - 7.8% - 4.1% 8.7% - Recurrent ROE 6.5% 3.3% - 7.4% - 4.8% 7.9% - R$ 000 ex Tablemac 4Q15 3Q15 % 4Q14 % % Net earnings 40,319 17, ,2% 84,501-52,3% 148, ,928-60,0% Extraordinary events (1) 21,883 8,259 - (4,473) - 30,142 (34,512) - Recurring net earning 62,202 25, ,4% 80,028-22,3% 178, ,416-46,9% ROE 3,5% 1,5% - 7,5% - 3,2% 8,3% - Recurrent ROE 5,4% 2,2% - 7,1% - 3,9% 7,5% - (1) Net effect of events mentioned above in reconciling the EBITDA, which affected the results. DIVIDENDS/JCP/CAPITAL CALL Duratex s bylaws guarantee the right to receive, as mandatory dividend for each financial year, a minimum value of 30% of the adjusted net income of the period. By the Board of Directors deliberation, may be paid interest on own capital (JCP) considering the value of interests declared to the value of the mandatory dividend. For 2015 fiscal year, the Board od Directors deliberated to distribute JCP amounting to R$211,1 m (net of R$179,4 m), being: R$34,2 m (net of R$29,0 m) declared in July and paid in August ; 9

10 R$65,9 m (net of R$56,0 m) declared in December and that will be paid in February ; added, these interests represent 50% of adjusted net income of 2015 fiscal year and R$111,0 m (net of R$94,4 m) also declared in December and that will be paid in March , so that this portion of interest can be used for the payment of the shares that may be subscribed in the capital call mentioned below. Earnings Share position Payment date Net value for share (R$) JCP declared in JCP declared in installment installments Total of earnings In meeting in , the Board of Directors deliberated to increase the share capital in R$ 94,4 m, upon: emission of 3, new shares to each 100 allotment possessed in ; emission price fixed in R$ 3,60 by share, stablished based on the weighted average of share prices in BM&FBOVESPA, with 30% discount; subscription prize of a , with payment at sight, in cash or by usng the JCP installment that will be paid in VALUE ADDED Value added in the quarter totaled R$360.2 m (R$1,802.2 m for the total year). Of this total, R$48.2 m, the equivalent of 13.4% of the total value added, was distributed to the federal, state and municipal governments in the form of taxes and contributions. DISTRIBUTION OF VALUE ADDED (IN % IN 4Q15) 13,4 15,1 45,3 26,2 Workers remuneration Financing Shareholder remuneration Government remuneration INDEBTEDNESS Gross consolidated debt at the end of the fourth quarter 2015 totaled R$2,824.3 m (R$2.82 bn), equivalent to a net debt of R$1,913.6 m, which represented a fall in comparison to the previous quarter of R$27.7 m. This level of debt is equivalent to 2.29x of recurring adjusted EBITDA over the last 12 months and 41.5% of Shareholders Equity at the end of the year. The level of indebtedness increased over 2014 essentially due to the acquisition of Ducha Corona. 10

11 Net financing expenses were (-) R$57.5 m, in line with the previous quarter. There was a 25.1% increase in financing expenses over the year arising from the increase in interest rates. R$ /31/15 09/30/15 Var R$ 12/31/14 Var R$ Short-Term debt 497, ,989 (20,612) 1,015,610 (518,233) Long-Term debt 2,326,912 2,384,947 (58,035) 1,792, ,679 Total debt 2,824,289 2,902,936 (78,647) 2,807,843 16,446 Cash and equivalent 910, ,652 (50,931) 1,081,089 (170,368) Net debt 1,913,568 1,941,284 (27,716) 1,726, ,814 Net debt/recurring adjusted EBITDA LTM Net debt/equity (in %) 41.5% 40.8% % - FINANCIAL REVENUES AND EXPENSES R$ 000 4Q15 3Q15 % 4Q14 % % Financial revenues 37,123 69, % 48, % 207, , % Financial expenses (94,631) (126,746) -25.3% (94,420) 0.2% (426,366) (317,786) 34.2% Net financial result (57,508) (56,789) 1.3% (45,851) 25.4% (219,123) (175,142) 25.1% AMORTIZATION TIMELINE (R$ MILLION) GROSS INDEBTEDNESS AT THE END OF DECEMBER 2015 (R$ MILLION) ,326, and beyond Long term Short term ORIGIN OF DEBT (IN %) National currency Foreign currency (100% hedge for R$) Colombia 11

12 Operations WOOD DIVISION HIGHLIGHTS 4Q15 3Q15 % 4Q14 % % SHIPMENTS (IN M 3 ) Standard 331, , % 423, % 1,344,557 1,580, % Coated 263, , % 320, % 1,153,545 1,206, % Total 595, , % 744, % 2,498,102 2,787, % FINANCIAL HIGHLIGHTS (R$ 000) Net revenue 624, , % 731, % 2,597,814 2,641, % Domestic market 465, , % 636, % 2,043,424 2,266, % Export market 158, , % 95, % 554, , % Net unit revenue (in R$/m 3 shipped) % % % Unit cash cost (in R$/m 3 shipped) (658.60) (648.52) 1.6% (543.48) 21.2% (636.32) (559.55) 13.7% Gross profit 146, , % 218, % 671, , % Gross margin 23.5% 27.3% % % 30.5% - Sales expenses (88,407) (91,956) -3.9% (77,732) 13.7% (349,730) (303,636) 15.2% General and administrative expenses (24,013) (22,601) 6.2% (19,175) 25.2% (85,783) (71,582) 19.8% Operating profit before financial results 19,620 65, % 145, % 202, , % Depreciation, amortization and depletion 83,749 84, % 99, % 341, , % Depletion tranche of biological assets 29,947 34, % 48, % 146, , % EBITDA according to CVM No. 527/12 (1) 133, , % 293, % 690,211 1,020, % EBITDA margin according to CVM No. 527/ % 27.1% % % 38.6% - Variation in fair value of biological assets (21,188) (26,575) -20.3% (32,770) -35.3% (124,566) (221,135) -43.7% Employee benefits 9,426 (535) - (3,093) % 9,914 (2,502) - Others % 0 (3,163) - Extraordinary event (2) 16,335 3,350 - (24,151) % 19,685 (69,665) - Recurring adjusted EBITDA 137, , % 233, % 595, , % Recurring adjusted EBITDA margin 22.1% 23.6% % % 27.4% - (1) Refers to EBITDA, in accordance with the system set out in CVM Instruction No. 527/12. Based on this result, and as a way of better expressing the Company s operational cash generation, two adjustments have been made: the stripping out of events of an accounting and non-cash nature from EBITDA and the disregarding of extraordinary items. Thus, in line with the best practices, the calculation of the indicator which best reflects the Company s cash generation is shown. (2) Extraordinary events to highlight: 4Q15: workers indemnity arising from the temporary reduction in activities at the Itapetininga unit (-) R$16,335 k; 3Q15: non-recurring workers indemnity (-) R$3,350 k; in 2014: profit from the sale of 5600 hectares given in part payment for the acquisition of the forests of Caxuana S.A. (Material Event notice of March 13) (+) R$45,514 k; reversal/formation of the contingency provision, being the main reversal of the Plano Verão provision (+) R$24,151 k. 12

13 Since the first quarter of 2014, the results of the Colombian subsidiary Tablemac have been consolidated in Duratex s financial statements. As a foreign subsidiary, it is covered by the CVM Deliberation No. 698 of December and CPC 36 (R3), which, in its items B92 and B93, deals with the consolidation of financial statements from different dates. The information from this subsidiary will have a time-lag of one month. As the stake in Tablemac was increased at the end of January 2014, only 11 months of this operation were consolidated from this year. In this fourth quarter, the months from September to November 2015 have been consolidated. The gross margin for the fourth quarter fell versus 3Q from 27.3% to 23.5%. For the full year comparison, the margin fell from 30.5% in 2014 to 25.9% in The EBITDA margin in 4Q was 22.1% compared to 23.6% the previous quarter. For the full year the margin was 22.9% versus 27.4% in This fall reflects the weakening economy over the year and corresponding drop in volumes, aggressive price competition and increased costs, especially electricity, all of which put pressure on margins. Volumes for the Wood Division fell 5.4% in the fourth quarter compared to 3Q, while the annual volumes were 10.4% lower than in The volumes for standard panels (raw) stabilized in 4Q after a period of steep decline in the previous quarters. However, there was a sharper fall in coated panels as the retail sector shed inventory. The prospects for 2016 suggest the market will continue to contract, with a drop in volumes in the internal market. However exports, which have shown significant volume increases (50% increase on 2014), will continue at the same rate of growth in 2016, which will minimize the decrease in overall volumes. WOOD SALES SEGMENTATION (IN % IN 4Q15) Furniture industry Resale Construction Other 13

14 DECA DIVISION HIGHLIGHTS 4º tri/15 3º tri/15 % 4º tri/14 % % PRODUCT SHIPPED (IN 000 ITEMS)* Basic products 2,055 2, % 2, % 8,922 9, % Finishing products 4,162 4, % 3, % 17,033 17, % TOTAL 6,217 6, % 5, % 25,955 26, % FINANCIAL HIGHLIGHTS (R$1.000) Net revenue 330, , % 308, % 1,365,400 1,342, % Domestic market 316, , % 300, % 1,317,310 1,310, % Export market 14,458 13, % 7, % 48,090 31, % Net unit revenue (in R$ per item shipped) % % % Unit cash cost (in R$ per item shipped) (34.48) (32.38) 6.5% (39.49) -12.7% (32.86) (32.30) 1.7% Gross profit 94, , % 54, % 428, , % Gross margin 28.5% 31.6% % % 30.6% - Sales expenses (60,499) (61,913) -2.3% (57,459) 5.3% (230,479) (220,582) 4.5% General and administrative expenses (19,169) (17,738) 8.1% (14,882) 28.8% (68,849) (64,452) 6.8% Operating profit before financial results 10,504 28, % (13,300) % 123, , % Depreciation and amortization 25,017 28, % 22, % 97,735 82, % Discontinued operations EBITDA according to CVM No. 527/12 (2) 35,521 56, % 8, % 221, , % EBITDA margin according to CVM No. 527/ % 15.6% - 2.9% % 15.4% - Employee benefits 4,773 2, % % 6,741-3, % Discontinued operations Extraordinary event (3) 7,160 6,472-24,584-13,632 24,584 - Recurring adjusted EBITDA 47,454 66, % 33, % 241, , % Recurring adjusted EBITDA margin 14.3% 18.3% % % 17.0% - (1) EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization): measure of operational performance as set out in CVM Instruction No. 527/12. (2) Extraordinary events to highlight: 4Q15: non-recurring workers indemnity (-) R$4,011 k; EBITDA Ducha Corona (-) R$3,149 k; 3Q15: non-recurring workers indemnity (-) R$6,472 k; in 2014: reversal/formation of the contingency provision, being the main reversal of the Plano Verão provision (+) R$24,069 k; the write-off of the Thermosystem brand-name and other adjustments (-) R$27,339 k; provision for the cessation of activities at Louças Ideal LJII (-) R$21,314 k * Of this total 536 k pieces relate to Corona in 4Q15, 679 k pieces in 3Q15 totaling 1,215 in the 2 nd semester of The Ducha Corona results have been consolidated into those of the Deca Division since the third quarter of In the fourth quarter of 2015, the Deca Division experienced a 10.9% fall in the volumes shipped compared to the previous quarter. Excluding the increment in pieces from Corona, this fall is 9.9%. For the full year, volumes for Deca fell 2.3% compared to 2014 (6.9% excluding Corona). The fall in Deca volumes was similar in each quarter of 2015, reflecting the worsening market trend caused by a slowdown in the real estate sector and the impact of a reduction in consumption by the economy in general. The adjusted recurring EBITDA margin for the period was R$47.5 m, an increase of 39.9% versus the fourth quarter of For the year, EBITDA increased 6.1% versus 2014, reaching R$241.5 m. The EBITDA margin for the fourth quarter was 14.3% (14.8% excluding Corona) versus 18.3% in the previous quarter and 11.0% for 4Q For the full year the margin was 17.7% (18.1% excluding Corona) versus 17.0% the previous year. This came about from a better product mix and from passing on the costs despite the falling volume scenario. 14

15 Given that Brazilian GDP is forecast to fall in 2016, the strategy adopted by Deca is to continue to improve its sales mix and develop new concepts and incentives for its sales force, as well as to focus on achieving greater market penetration and share. DECA SALES SEGMENTATION (IN % IN 4Q15) Resales/Home center Construction companies Distributors Other Capital Markets and Corporate Governance At the end of the fourth quarter 2015, Duratex had a market capitalization of R$3,912.2 m (R$3.91 bn), based on a closing price per share of R$5.90. During the quarter, there were 287,200 trades in the shares of Duratex on the BM&FBOVESPA spot market, representing a trading volume equivalent to R$579.9 m, an average daily trading volume of R$9.8 m. of all the companies listed on BM&VBOVESPA (based on the closing figures on November ). In addition, for the fourth consecutive year Duratex shares have been included in the new version (2015/2016) of the Dow Jones Sustainability Emerging Markets Index (DJSI). Duratex s shares are listed on the Novo Mercado section of BM&FBOVESPA, which brings together companies with the highest standards of corporate governance. The Company also has a differentiated dividend policy, with the distribution of 30% of adjusted net earnings to shareholders, while also adhering to the Abrasca Code for Self-Regulation and Good Practices for Listed Companies. SHAREHOLDING STRUCTURE AS AT THE END OF DECEMBER 2015 (IN %) For the eighth year running, Duratex has been included in the BM&FBOVESPA Corporate Sustainability Index (ISE). The new listing for the index will be in place from January 4 until December 29, 2016, and unites 40 shares from 35 companies, covering 16 sectors and totaling R$960 bn in market value, the equivalent of 54.5% 33.5 Itaúsa and families Foreign investors Ligna and family Other local investors Treasury Pension funds 15

16 Social & Environmental Responsibility At the end of the period, the Company had a total of 12,186 employees, who received a total remuneration of R$105.8 m in the quarter. For the full year of 2015, the number of employees increased by 3.8% despite the Company restructuring as it also included the Corona employees (approximately 900 employees). (R$ 000) 4Q15 3Q15 % 4Q14 % % Employees (quantity) 12,186 12, % 11, % 12,186 11, % Remuneration 105, , % 104, % 420, , % Obligatory legal charges 48,570 56, % 54, % 206, , % Differentiated benefits 26,196 26, % 25, % 101,357 94, % In recognition of its sustainability initiatives, Duratex once again received the LIDE Award for Entrepreneurship in the category of Enterprising Company in Sustainability. The awards recognize companies and personalities in the private sector that have stood out in the area during the year. product lines, Tecnologia Eco is a pioneer in residential use). The shower Acqua Plus permits an air-flow that restricts water consumption to 12 liters per minute, 40% less than that consumed by other showers on the market, while giving the sensation and comfort of strong water jets. The Forestry Unit RS retained its FSC certification (Forest Stewardship Council license number FSC - C118707). Twenty years ago Duratex was the first forestry company in South America, and the tenth worldwide, to obtain the FSC certificate. Considered one of the most prestigious environmental seals in the world, its certifies that the forests are managed in accordance with practices that ensure equilibrium between the economic, social and environmental spheres. The São Paulo units were certificated for the first time in 1995 and those in Minas Gerais followed suit ten years later. The RS Forestry received its first FSC certificate in The Deca Division continues to invest in water-saving devices, with two products standing out this quarter. Tecnologia Eco has two uses: water-saving (automatic shut-off) and conventional (present in various Deca Duratex has launched, at its Louças Paraíba unit, the first Formare group in the Deca Division. Made up of 20 youngsters between the ages of 16 and 18, it participated in the Assistant in Company Quality Processes course. The classes will involve 41 employees from the factory who will act as education volunteers. This is the fifth unit in the Company to offer this program. This growth reflects the growing maturity of Duratex s Social Investment plan, the goals of which include the development of young people for the job market, while also developing the communities where the programs take place. In addition, Duratex has renewed its commitment to the Na Mão Certa (In the Right Hands) program, a Childhood Brazil initiative (WCF Institute) that aims to mobilize governments, companies and organizations in the third sector to combat the sexual exploitation of children and adolescents on Brazilian highways. 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 CONSOLIDATED ASSETS (R$ 000) 12/31/15 AV% 09/30/15 AV% 12/31/14 AV% Current 2,767, % 2,885, % 2,759, % Cash and equivalents 910, % 961, % 963, % Clients accounts receivable 831, % 922, % 861, % Accounts receivable from related parties 42, % 47, % 51, % Inventory 796, % 778, % 741, % Ammounts receivable 29, % 32, % 27, % Recoverable taxes and contributions 143, % 127, % 101, % Other assets 12, % 16, % 11, % Assets of discountinued operations - 0.0% - 0.0% - 0.0% Non-Current 6,240, % 6,346, % 6,100, % Linked deposits 44, % 39, % 39, % Amounts receivable 38, % 35, % 31, % Pension plans credit 102, % 111, % 114, % Recoverable taxes and contributions 22, % 25, % 29, % Deffered income tax and contributions 275, % 341, % 201, % Investments in subsidiaries and addiliates - 0.0% - 0.0% - 0.0% Other investments % % 10, % Fixed assets 3,759, % 3,796, % 3,732, % Biological assets 1,441, % 1,428, % 1,395, % Intangible assets 554, % 567, % 547, % Total assets 9,008, % 9,232, % 8,859, % 17

18 CONSOLIDATED LIABILITIES (R$ 000) 12/31/15 AV% 09/30/15 AV% 12/31/14 AV% Current 1,296, % 1,158, % 1,325, % Loans and financing 490, % 512, % 700, % Charge of debentures 7, % 5, % 3, % Suppliers 208, % 169, % 150, % Staff obligations 109, % 163, % 147, % Accounts payable 244, % 238, % 232, % Taxes and contribution 60, % 67, % 56, % Dividends and equity-on-interest payable 177, % % 34, % Liabilities of discontinued operations - 0.0% - 0.0% - 0.0% Non-Current 3,094, % 3,315, % 2,846, % Loans and financing 2,197, % 2,259, % 1,979, % Charge of debentures 129, % 125, % 123, % Contigency provisions 94, % 95, % 86, % Deffered income tax and social contribution 597, % 755, % 630, % Other accounts payable 64, % 67, % 26, % Taxes and contribution 12, % 12, % Shareholders's equity 4,616, % 4,758, % 4,687, % Equity 1,875, % 1,875, % 1,875, % Cost of share issued (7,823) -0.1% (7,823) -0.1% (7,823) -0.1% Capital reserves 337, % 335, % 334, % Re-evaluation reserves 66, % 66, % 67, % Profit reserves 1,829, % 1,954, % 1,925, % Adjusts in equity valuation 459, % 476, % 442, % Shares held in treasury (27,931) -0.3% (27,931) -0.3% (27,931) -0.3% Participation of non-controlling shareholders 83, % 85, % 77, % Total liabilities and shareholder's equity 9,008, % 9,232, % 8,859, % 18

19 CONSOLIDATES PROFIT AND LOSS STATEMENT 4Q15 3Q15 VAR % 4Q14 VAR % VAR % (IN R$'000) Net sales revenue 955,009 1,041, % 1,040, % 3,963,214 3,984, % Domestic market 782, , % 937, % 3,360,734 3,577, % Export market 172, , % 102, % 602, , % Biological asset 21,188 26, % 32, % 124, , % Cost of goods sold (606,619) (634,127) -4.3% (638,522) -5.0% (2,442,451) (2,418,242) 1.0% Depreciation/amortization/ depletion (98,876) (99,334) -0.5% (112,197) -11.9% (399,206) (389,607) 2.5% Depletion of biological assets (29,947) (34,408) -13.0% (48,974) -38.9% (146,322) (180,604) -19.0% Gross profit 240, , % 273, % 1,099,801 1,217, % Sales expenses (148,906) (153,869) -3.2% (135,191) 10.1% (580,209) (524,218) 10.7% General and administrative expenses (43,182) (40,339) 7.0% (34,057) 26.8% (154,632) (136,034) 13.7% Management fees (3,361) (3,366) -0.1% (4,031) -16.6% (14,231) (16,868) -15.6% Other operating results, net (15,182) (8,743) 73.6% 32, % (25,324) 79, % Ownership equity result % Operating profit before financial results 30,124 94, % 131, % 325, , % Financial revenues 37,123 69, % 48, % 207, , % Financial expenses (94,631) (126,746) -25.3% (94,420) 0.2% (426,366) (317,786) 34.2% Profit before income tax and social contribution Income tax and contribution - current Income tax and contribution - deffered (27,384) 37, % 86, % 106, , % (7,619) (6,618) 15.1% (19,491) -60.9% (36,274) (73,005) -50.3% 89,359 (123) % 23, % 121,736 21, % Net earnings 54,356 30, % 90, % 191, , % Discontinued operations Net income from discontinued operations Net income for the period 54,356 30, % 90, % 191, , % 19

20 CASH FLOW CONSOLIDATED (R$ 000) 4Q15 3Q15 VAR 4Q14 VAR VAR Profit before income tax and social contribution (27,384) 37,253 (64,637) 86,135 (59,790) 106, ,077 (338,795) Items with no cash effect: Depreciation/amortization/depletion 138, ,079 (8,407) 170,241 (11,486) 585, ,448 (21,515) Variation in fair value of biological assets (20,867) (26,575) 5,708 (32,770) 552 (124,245) (221,135) 96,890 Interest, exchange rate and monetary variations, net 86,165 90,091 (3,926) 58,743 46, , ,983 97,268 Ownership equity results (666) 666 Provisions, asset write-offs 21,684 (17,781) 39,465 (44,058) 33,718 1,344 (53,204) 54,548 Investment in working capital 28,625 (26,580) 55,205 74,865 (135,094) (93,541) (84,131) (9,410) (Increase) reduction in assets Clients receivable accounts 86,486 (37,464) 123,950 86,691 (9,706) 51,939 (24,119) 76,058 Inventories (19,035) (21,228) 2,193 (27,872) (35,290) (122,601) (37,172) (85,429) Other assets (21,807) 24,718 (46,525) 86,112 (88,512) 25,971 52,538 (26,567) (Increase) reduction in liabilities - Suppliers 39,389 10,324 29,065 6,359 (48,210) 31,143 (27,873) 59,016 Staff obligations (54,267) 7,431 (61,698) (13,319) 23,432 (49,729) 9,617 (59,346) Accounts payable 10,464 9,043 1,421 (42,537) 38,178 32,386 (14,243) 46,629 Taxes and contribution (12,011) (7,805) (4,206) (39,905) 7,853 (36,326) (28,960) (7,366) Other liabilities (594) (11,599) 11,005 19,336 (22,839) (26,324) (13,919) (12,405) Cash from operations 226, ,487 23, ,156 (125,413) 825, ,372 (120,348) Income tax and contribution paid (1,846) (3,494) 1,648 (11,466) 7,434 (12,872) (71,903) 59,031 Interest paid (79,322) (94,885) 15,563 (39,460) 34,167 (237,668) (195,426) (42,242) Cash generated from operational activies 145, ,108 40, ,230 (83,812) 574, ,043 (103,559) Investment activities Investment in fixed, biological and intangible assets (61,557) (46,694) (14,863) (67,120) 6,163 (253,020) (263,217) 10,197 Acquisition of subsidiary (7,848) (1,869) (5,979) (4,160) 1,551 (13,313) (8,448) (4,865) Capital integration in invested (46,773) (64,996) 18,223 (51,137) (751) (202,612) (187,980) (14,632) Cash used in investment activities - (714) 714 (1) 1 (714) (148,241) 147,527 Capital integration in invested - 8,400 (8,400) (8,400) - - Cash used in investment activities (116,178) (105,873) (10,305) (122,418) (1,436) (469,659) (607,886) 138,227 Financing activities (470) Tickets funding 122, ,252 (241,027) 251,629 (247,408) 609, ,023 (265,965) Tickets debentures (7,168) (6,737) (431) Financing amortization (201,964) (332,741) 130,777 (137,843) 35,956 (746,628) (634,762) (111,866) Dividends and interest-on-equity (6) (34,134) 34,128 (2) - (134,075) (209,600) 75,525 Shares held in treasury and others (9,615) 9,615 Cash (used) in financing activities (79,745) (3,623) (76,122) 113,784 (211,452) (278,813) 14,309 (293,122) Exchange rate variation on cash and equivalents (735) 2,861 (3,596) 14,369 (14,875) 3,620 (220) 3,840 Increase (reduction) in cash in the period (50,931) (1,527) (49,404) 267,965 (311,575) (170,368) 84,246 (254,614) Inicial balance 961, ,179 (1,527) 813, ,665 1,081, ,843 84,246 Closing balance 910, ,652 (50,931) 1,081,089 (117,910) 910,721 1,081,089 (170,368) 20