June 2013
MASISA OVERVIEW FINANCIAL PERFORMANCE THE OFFERING
Masisa Overview Company focused on the wood boards industry for furniture and interior design in Latin America. #1 in installed capacity in Latin America excluding Brazil #1 in sales in 5 countries in Latin America #1 in retail distribution with 382 stores in Latin America (Placacentro) #1 Top of Mind brand in Latin America #1 in environmental and social standards in the region Business model Forests Sawmill Residuals Industrial plant boards Distribution MASISA OVERVIEW 3
Solid growth track record in sales and investments focused on Mexico, Chile and Brazil Sales experienced a CAGR of 8.9% during 2005-2012 and investments in capacity during the period were focused on Mexico, Chile and Brazil (USD million) Merger Masisa- Terranova 744 887 Start-up of the MDF Cabrero Plant in Chile 966 CAGR 2005-2012 : 8.9% 1,058 Start-up of the MDP Montenegro Plant in Brazil 914 1,017 Start-up of the MDP Cabrero Plant in Chile 1,251 Acquisition of resin plant in Mexico (Arclin) 1,349 Acquisition of Rexcel in Mexico for USD 54 million. New Lines of coating in Chile and Brazil 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Masisa (1) CAGR: Compound annual growth rate. MASISA OVERVIEW 4
Masisa Summary OWNERSHIP STRUCTURE December 2012 3.1% Foreign Investors (CAP XIV) 17.1% Pension Funds 13.9% Others 65.9% Grupo Nueva Principal figures (Dec. 2012) Shareholders' Equity Market Cap Sales EBITDA Assets USD 1.37 billion USD 726 million USD 1.35 billion USD 224 million USD 2.71 billion Total: USD 1.35 bn SALES BY PRODUCT December 2012 2.6% MDF Moldings 18.5% Brazil SALES BY COUNTRY December 2012 44.1% MDF Boards 26.7% MDP/PB Saw logs 9.0% Others 8.2% 6.4% Sawn wood 3.0% Doors 12.9% Argentina 8.2% Mexico 4.1% USA 2.7% Colombia 2.4% Peru 1.4% Ecuador 3.9% Others Placacentros 382 Forests Industrial Complexes 225,000 ha. 10 Wood boards 3,299 Th. m 3 Coating capacity 1,637 Th. m 3 Sawmill capacity 487 Th. m 3 Moldings and doors 198 Th. m 3 Chile 19.7% Venezuela 26.3% MASISA OVERVIEW 5
Integrated operations focused on the manufacturing and commercialization of wood boards Forest Area Industrial Unit Distribution Forest assets by country Eucaliptus (thousand of Ha.) Pine (thousand of Ha.) Value (USD mm) 84 81 590 12 79 46 237 30 1,050.0 850.0 650.0 450.0 250.0 50.0 Installed production capacity by product and by country (thousands of m 3 ) MDP/MDF coated MDP/MDF raw Sawmills and others 907 431 1,030 487 0 0 430 445 150 104 Sales distribution by channel in 2012 (%) Export 11% Wholesalers 17% Industrials 18% Others 3% Placacentros 31% Retailers 21% Chile Brazil Argentina Venezuela Forest area of 225 thousand Ha. valued at USD 935 million (IFRS) 39% of the timber needs comes from owned forests -150.0 Source: Masisa Source: Masisa Source: Masisa Chile Brazil Mexico Venezuela Argentina 10 industrial complexes in 5 countries in the region. 73% of the MDF/PB/MDP capacity in México, Chile and Brazil MASISA OVERVIEW Multichannel strategy 31% of sales through the Placacentro retail network 6
Investment Highlights Particle board industry Industry with a history of high growth (2.3 x real GDP growth in Latin America) High potential for development of the industry in Latin America Gap in panel consumption with respect to developed nations High housing need of 51.4 million homes Continued growth of the middle class Masisa Only competitor with an exclusive focus on wood boards Proven and sustainable business model with a focus on the end client Only player with a retail distribution network of 382 stores throughout Latin America (31% of 2012 sales) Well positioned throughout Latin America and a leader in 5 countries Growth plan focused on Mexico, Chile and Brazil. MASISA OVERVIEW 7
MASISA OVERVIEW FINANCIAL PERFORMANCE THE OFFERING
Wood boards industry growing at 2.3x regional GDP Sustained growth of MDF and PB consumption in Latin America 1 (millions of m 3 /year) MDF PB 3.6 4.1 4.3 5.2 CAGR 2 2000-2011 : 9.0% 6.0 6.3 7.6 8.0 8.8 8.2 9.5 9.4 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: FAO Stat. (1) Considers Argentina, Brazil, Chile, Ecuador, Mexico, Colombia, Peru, Venezuela. (2) CAGR: Compound annual growth rate 300.0 Growth of MDP and MDF consumption Latam (Year 2000 base 100) 300.0 Real GDP growth Latam (Year 2000 base 100) 250.0 200.0 150.0 100.0 50.0 100 259 250.0 200.0 150.0 100.0 50.0 100 CAGR 2 : 4.0% 155 Elasticity consumption of boards / real country GDP 3 : 2.3x 0.0 2000 2011 0.0 2000 2011 Source: FAO Stat Source: IMF (3) Calculated as the MDF and PB consumption CAGR 2000-2011 divided by the real GDP CAGR 2000-2011 in Latin America 9
Latam has a low penetration level compared to more developed economies The annual consumption of wood boards per inhabitant in Latin America is 4 times lower compared to more developed countries 0.16 0.14 4x Region Latin America Developed countries Average annual consumption 0.02 m 3 /inhabitant 0.08 m 3 /inhabitant CAN SWE MDP + PB consumption per capita en 2011 (m 3 ) 0.12 0.10 0.08 0.06 0.04 0.02 0.00 AUT GER ITA CHI FRA AUS UK USA SUI IRL ESP BRA JPN ARG PER MEX ECU COL VEN 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 GDP per capita 2011 (USD) Source: FAO Stat and IMF 10
The region is experiencing elevated housing needs According to one of the latest studies by the Inter-American Development Bank, the housing need in Latin America is close to 51.4 million homes (families without housing or substandard housing) Countries in which Masisa operates require approximately 19.5 million m 3 of boards to supply their housing deficits (assuming 0.38 m 3 of MDF/PB per home). That is 2.1 times the current consumption of the region. 25 20 21.2 Demand Consumption MDF/ PB Latam 2011 Demand MDF/PB per housing deficit MDF/PB 9.4 million m 3 19.5 million m 3 2.1x 15 10 10.6 5 0 4.2 1.2 1.2 4.8 Argentina Brazil Chile Colombia Ecuador Mexico Peru Venezuela 2.1 5.3 5.3 2.0 Source: Inter-American Development Bank A space for development and CEPAL. 11
The continued growth of the middle class in Latin America stimulates housing demand The middle class in Latin America has experienced significant growth since 2003, driving increased demand in the panel industry In Chile's case, the construction of housing in the last decade has been concentrated in housing between 36-100 m² focused on the middle and middle-lower class. Socioeconomic levels evolution in Latin America (% of the population) Chilean Case: Authorization for housing construction in Chile by type of housing (thousands of units) 45% 40% 35% 30% 25% 20% 15% 38% 30% 29% 2003 2004 2005 2006 2007 2008 2009 Millares 140 120 100 80 60 40 20 0 20.2 0.5 Up to 35 m² 75.1 114.8 36-70 m² 21.1 9.6 9.7 9.8 3.3 4.9 71-100 m² 101-140 m² 141 m² or more Impoverished (USD 0-4 per day) Vulnerable (USD 4-10 per day) Middle class (USD 10-50 per day) 2001 2011 Source: World Bank Economic Mobility and the growth of the middle class in Latin America Source: National institute of statistics of Chile 12
Masisa is the only player in Latin America focused 100% on boards Masisa and its competition Masisa Copec (Arauco) Duratex CMPC Products MDF/ MDP boards X Plywood X X Cellulose X X Paper X X X Ceramics and faucets X X X Source: Masisa, Copec, CMPC and Duratex Percentage of revenues from sales of MDF/MDP boards in 2012 (%) 73% 0.8 0.7 0.6 0.5 0.4 0.3 57% 0.2 0.1 0.0 6% 0% Masisa Copec Duratex CMPC Source: Masisa, Copec, Duratex and CMPC 13
with a client-focused business model, in which the Placacentro network plays an important role Masisa has a business model focused on the end client that differentiates it from the competition ü Customized multichannel distribution ü Premium price in the market and products with high value add ü Masisa is the only competitor with an extensive retail network in 10 countries in the region (Placacentro) ü Top of Mind brand in the industry in Latin America The number of Placacentro stores has grown continuously over time 381 382 335 54 54 314 316 41 46 47 46 42 31 31 27 64 72 72 54 61 35 38 40 45 45 43 39 50 50 50 54 58 59 60 60 51 51 50 54 54 2009 2010 2011 2012 1Q 2013 Source: Masisa Chile Argentina Brazil Venezuela Mexico Colombia Others ü Contact and knowledge of the end-client allowing for access to primary source information 14
... positioning itself in the region as the leader in sales in 5 countries... Masisa is an important player in all Latin American countries and is the leader in sales (MDP and/or MDF) in Argentina, Chile, Mexico, Peru and Venezuela (total sales by country in thousand of m 3 ) MDP/PB MDF 368 # 1 280 # 1 # 1 142 148 192 133 # 1 113 117 # 1 170 36 18 8 23 42 18 53 Argentina Brazil Chile Colombia Ecuador Mexico Peru Venezuela Source: Masisa 15
and with a strategic growth plan focused on Mexico, Chile and Brazil Investment plan 2013-2015 (USD mm) Consolidate position in Mexico Reduce operating costs Increase coating capacity Improve mix and channels Acquisition of Rexcel, one of the leading producers of PB in Mexico Acquisition of Arclin resin plants Installation of equipment to reduce resin and wood consumption Reduce energy costs through new contracts Increase coating capacity in Chile and Brazil Incorporate painting capacity in Chile Improve proportion of coated products Growth of owned Placacentro stores in selected countries Forest maintenance Capex 14 5 Industrial maintenance Capex 16 17 133 Industrial expansion Capex 60 Rexcel Greenfield investments 73 Coated capacity Other projects 165 117 Placacentro Arclin Total: USD 600 mm Financing plan: USD 100 mm Capital increase USD 300 mm Cash generated by the Company USD 200 mm Structured divestments of non-strategic forest assets 16
MASISA OVERVIEW FINANCIAL PERFORMANCE THE OFFERING
8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% Summary of financial performance Sales evolution (USD million) 914 CAGR 2009-2012 : 13.9% 1,017 1,251 1,349 CAGR: 7.0% 300 250 200 150 308 330100 0 2009 2010 2011 2012 1Q-2012 1Q-2013 50 Gross profit evolution (USD million) 203 211 22.2% CAGR 2009-2012 : 13.1% 254 20.7% 20.3% 293 21.7% 19.5% 60 CAGR: 35.5% 24.6% 2009 2010 2011 2012 1Q-2012 1Q-2013 81 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% Source: Masisa financial statements Gross profit Source: Masisa financial statements Gross margin 80 70 60 50 40 30 20 10 0 Net Income evolution (USD million) 72 69 One off USD 26.4 mm 300 250 200 7.1% 5.5% 45 39 150 5.5% 100 4.2% 1.9% 18 3.3% 50 6 0 2009 2010 2011 2012 1Q-2012 1Q-2013 EBITDA evolution (USD million) 162 17.7% CAGR 2009-2012 : 11.5% 209 207 20.6% 224 16.6% 16.6% CAGR: 37.2% 14.6% 45 18.7% 2009 2010 2011 2012 1Q-2012 1Q-2013 62 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% Net income Income margin EBITDA EBITDA margin Source: Masisa financial statements Source: Masisa financial statements FINANCIAL PERFORMANCE 18
Current financial position Net debt¹ / EBITDA (times) Net debt / Equity (%) 3.6 3.4 3.4 46.2% 53.8% 51.1% 52.4% 60.9% 3.1 3.2 2009 2010 2011 2012 LTM 1Q-2013 Source: Masisa financial statements (1) Adjusted, net of effects of derivatives 2009 2010 2011 2012 1Q-2013 Source: Masisa financial statements EBITDA / Interest expense (times) 2.9 3.6 4.3 4.4 4.8 2009 2010 2011 2012 LTM 1Q-2013 Source: Masisa financial statements FINANCIAL PERFORMANCE 19
MASISA OVERVIEW FINANCIAL PERFORMANCE THE OFFERING
Offering Term Sheet Issuer Masisa S.A. Ticker MASISA Current shares 6,965,103,488 Shares offered Subscription ratio POP* 1,000,000,000 (12.6% of total shares post capital increase) 0.143572884699111 per each old share Offer price $ 45.50 per share Use of funds Share risk rating Finance the growth plan of the Company 1 st class level 3 / Feller-Rate 1 st class level 2 / Fitch Ratings Preemptive Rights Offering Period May 31st to June 29th 2013 Financial advisor * Preemptive Rights Offering Period THE OFFERING 21
This presentation may contain projections or other forward-looking statements related to MASISA that involve risks and uncertainties. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. There is no assurance that the expected events, trends or results will effectively occur. These declarations are made on the basis of numerous assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any change to these assumptions or factors could cause the present results of MASISA and MASISAs planned actions to differ substantially from the present expectations. All forward-looking statements are based on information available to MASISA on the date of its posting and MASISA assumes no obligation to update such statements unless otherwise required by applicable law.