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CONTENTS Highlights Comparison of Results Closing Remarks Performance by Market Financial Profile 2
Highlights Consolidated recurring EBITDA totaled US$29.8 million, a +13.2% improvement over the same period of the previous year Industrial EBITDA increased by 26% In Chile and the Andean region, improved performance due to operational efficiencies and company sales led to better results: EBITDA +21% In Argentina, increased sales volumes for the industrial business due to exports, market recovery in the forestry business units and a slight price increases: EBITDA +12% In Brazil, there are signs of a slight economic recovery, which has facilitated a more selective strategy of board prices, together with better margins as a result of operational efficiencies: Industrial EBITDA +258% In Mexico, local MDF production, as well as good management of prices and a better sales mix have generated a significant improvement in the results: EBITDA +33% In Venezuela, export volumes increased +18%, enabling the operation to be selfsufficient 4
Highlights Sale of assets: Sale of Masisa Ecoenergia: Sale of the cogeneration power plant in Cabrero to Neoelectra Chile SpA. The price of this transaction was US$15.1 million Divestment of industrial business units in Argentina, Brazil and Mexico: Signing of SPA for the sale of Masisa Argentina S.A. s industrial business unit to EGGER Holzwerkstoffe GmbH for US$155 million Mexico and Brazil: going according to plan The Company expects to obtain more than US$500 million, which will be used to reduce debt and financial expenses Announcement of the efficiency plan, which is expected to generate savings of US$15 million in 2018 These decisions will have a positive impact on the future level of profitability 5
Highlights 55,00 Share price: Increased 45.8% during 2017, validating Masisa s strategy of reducing financial risk, improving operating efficiency and resizing the company $50.1 5.000 50,00 4.500 4.000 45,00 40,00 35,00 30,00 $34.79 3.500 3.000 2.500 2.000 1.500 1.000 500 25,00 ene-17 feb-17 mar-17 abr-17 may-17 jun-17 jul-17 ago-17 0 Daily volume Volumen Transado Diario CLP Last Price Ultimo Precio 6
Performance by country - Andean Region Industrial Forestal SALES US$ M -4.8% 92.2 87.9 84.0 79.2 8.2 8.6 13.0 7.4 5.6 EBITDA US$ M +21.2% 15.8 9.6 6.1 Higher industrial EBITDA as a result of price increases in local and export markets Lower production and sales and administration costs as a result of improvements in operational costs and logistics Higher forestry EBITDA from non-recurring stumpage sales EBITDA: US$15.8 million in 2Q17 (+21.2% versus 2Q16) Chile + Andean region BOARD CONSUMPTION IN LOCAL MARKETS * 2016 1,591 369 +0.1% 2017 E 1,592 383 +3.8% BOARD SALES VOLUME IN LOCAL MARKETS * 2016 385 93-2.3% 2017 E 376 94 +1.1% (*) Includes Chile, Peru, Ecuador and Colombia 8
Performance by country - Mexico SALES US$ M +21.9% EBITDA US$ M +33.4% 33.1 40.4 4.5 6.0 MEXICO Local MDF manufacture has generated improved results compared to the previous year, despite greater competition, which impacted sales volumes and prices of commodity products Masisa has responded with good price management and improvements in the sales mix focussed on higher added value products, ceding market share New MDF plant: Operating at 68% capacity EBITDA: US$6.0 million in 2Q17 (+33.4% versus 2Q16) BOARD CONSUMPTION IN LOCAL MARKET BOARD SALES VOLUME IN LOCAL MARKET 2016 1,455 2017 E 1,544 +6.1% 328 356 +8.4% 2016 520 2017 E 527 +1.2% 130 120-7.7% 9
Performance by country - Brazil SALES US$ M EBITDA US$ M +9.8% +257.5% 34.1 37.5 4.0 Industrial 1.1 BRAZIL 15.2 14.3 Forestal 0.0 0.0 Greater industrial EBITDA industrial because of price increases and better sales margins because of efficiencies resulting from increased utilization of the MDP plant No forestry EBITDA due to total sales of forestry assets in the country Industrial EBITDA: US$4.0 million in 2Q17 (+257% versus 2Q16) BOARD CONSUMPTION IN LOCAL MARKET BOARD SALES VOLUME IN LOCAL MARKET 2016 6,060 2017 E 6,046-0.2% 1,566 1,505-3.9% 2016 526 2017 E 534 +1.4% 150 136-9.3% 10
Performance by country - Argentina Industrial Forestal 37.5 33.0 4.5 SALES US$ M +14.9% 43.1 38.1 5.0 8.2 5.0 3.2 EBITDA US$ M +11.8% 9.2 5.3 3.9 ARGENTINA Positive macroeconomic adjustments began translating into higher sales volumes in the forestry and industrial business and better prices EBITDA: US$9.2 million in 2Q17 (+11.8% versus 2Q16) BOARD CONSUMPTION IN LOCAL MARKET BOARD SALES VOLUME IN LOCAL MARKET 2016 801 2017 E 808 +1.0% 205 217 +5.7% 2016 267 2017 E 262-1.9% 70 72 +3.8% 11
Performance by country - Venezuela Industrial Forestal 34.0 33.9 0.0 Cum. June 16 SALES US$ M -32.3% 23.0 22.6 0.4 Cum. June 17 Cum. June 16 EBITDA US$ M -79.6% Cum. June 17 Economic imbalance triggered by a sharp recession: significant devaluation in the average exchange rate for the quarter: +272% (versus 2Q16) The cumulative annual effect of devaluation is recorded in the quarter in which it occurs. Thus, there was significant impact in 2Q17. 28% drop in sales volumes on the local market, partially offset by an 18% increase in exports (greater availability of dollars as a result of increased exports) 5.3 4.2 1.0 1.1 0.6 0.5 VENEZUELA BOARD CONSUMPTION IN LOCAL MARKET 2016 113 2017 E 72-36.3% (*) Includes local and export markets BOARD SALES VOLUME IN LOCAL MARKET 2016 110 2017 E 69-37.5% BOARD SALES VOLUME IN EXPORT MARKETS 2016 60 2017 E 81 +35.4% BOARD SALES VOLUME IN LOCAL MARKET 21 29-27.6% 12
2Q16 vs 2Q17 BOARD VOLUME in thousands of m 3 550-3.8% 528 Consolidated 520-2.5% 507 Ex Venezuela Lower volumes in Brazil, Mexico and Venezuela were offset by increased volumes in Chile, the Andean region and Argentina, as well as MDF moldings in the United States TOTAL SALES REVENUE US$ M 223.5 206.1 212.2 208.8 195.7 192.1 184.3 195.2 27.8 14.0 27.9 13.6 Consolidated Ex Venezuela Industrial Forestal Industrial: sales up due to price increases in Brazil, Mexico and Chile as well as higher volumes in Argentina and MDF moldings in the United States Forestry: sales down primarily due to Brazil no longer having forestry assets 40.4 19.3 23.8-2.7 31.8 24.2 Consolidated Industrial EBITDA US$ M 9.6-2.0 38,5 18,0 23,1-2,7 33,0 25,0 10,0-2,0 Ex Venezuela Forestal Gastos corp Industrial: +25.6% (Ex Venezuela +38.6%), increases thanks to higher prices in Brazil, higher prices and cost efficiencies in Mexico and Chile, and increased volumes in Argentina. Forestry: sales down in Brazil NET PROFITS US$ M -45.9% -59.8% 9.2 11.6 5.0 4.7 Consolidated Ex Venezuela Lower results due to the positive impact of the 2016 sale of all the company s forestry plantations in Brazil and devaluation in Argentina. Chile s lower results were a reflection of reduced forestry mass as a result of stumpage sales during previous years, as well as a loss for the sale of the cogeneration plant 14
2Q16 vs 2Q17 (US$ M) non-operational OTHER INCOME / FINANCIAL COSTS -14.4-12.0 Expenses down as a result of lower debt and hedging derivative value OTHER INCOME / EXPENSES BY FUNCTION 10.3 2.0 Lower value of biological assets as a result of selling forestry assets in Brazil and for in recognition of the loss for the sale of the cogeneration plant in Chile GAIN / LOSS FOR FOREIGN CURRENCY EXCHANGE DIFFERENCES 0.4-3.6 Currency appreciation in Mexico and Chile GAIN / LOSS FROM INFLATION- ADJUSTED UNITS -0.4-4.7 Due to the differential between devaluation and inflation in Venezuela 15
QUARTERLY EBITDA US$M CONSOLIDATED 19.3 Industrial EBITDA 23.8 Forestry EBITDA 2.2 Andinos* 0.5 Andinos* 0.3 Argentina 0.7 Argentina +25.6% 2.9 Brazil -59.9% 14.3 Brazil 1.5 Mexico 1.2 Venezuela 2.0 Venezuela 24.2 Industrial EBITDA 9.5 Forestry EBITDA QUARTER The Andean region: Industrial EBITDA was up as a result of higher prices on the local market, increased exports and cost and expense savings. Forestry EBITDA was up as a result of stumpage sales. Argentina: EBITDA rose, reflecting higher volumes and slight price increases in both business units. Brazil: Industrial EBITDA rose as a result of price increases. Forestry EBITDA absent due to total sale of forest assets in 2016 Mexico: EBITDA was up, reflecting good price management as well as cost and expense efficiencies. Greater margins attributable to the new MDF plant Venezuela: EBITDA fell for both business units due to economic imbalance, sharp recession and strong devaluation (*) Andean = Chile + Peru + Ecuador + Colombia 16
FINANCIAL PROFILE Net Financial Debt US$ M Financial Debt Maturity Profile US$ M 2 761.4 jun-15 758.5 sep-15 706.8 dec-15 699.9 mar-16 713.1 jun-16-109.5 686.2 sep-16 667.0 dec-16 677.6 mar-17 649.0 jun-17 USD Bonds UF Bonds 97 46 51 48 2017 59 11 2018 Bank 245 200 24 21 2019 56 24 24 32 2020 53 29 2021 (2) Long-term loan disbursements in January and February 2017 have reduced refinancing needs in 2017 to US$97 M 217 205 12 2022 + Capex US$ M 1 164 85 79 79 135 128 56 72 56 Maintenance Growth 70 49 34 6 36 43 2013 2014 2015 2016 2017E (1) Includes forestry formation costs that are treated as other expenses, by function under IFRS. Formation costs for 2016 are US$19.9 M Evolution of Ratios 4.0 4.0 3.5 3.9 1.3 1.3 4Q 15 1Q 16 4.0 3.7 1.4 4.0 3.9 1.4 3Q 16 4.1 3.5 1.2 4Q 16 Interest Coverage ratio Net Debt-to-EBITDA ratio Debt-to-Equity ratio 4.2 4.2 3.2 3.2 1.2 1.2 1Q 17 18
Conclusions 20 Stable growth in Mexico despite the highly competitive environment triggered by local currency appreciation that is facilitating board imports Sustained improvement in results in Chile and the Andean region thanks to price increases, lower industrial costs and non-recurring forestry sales. In Argentina results are up as a result of economic revival translating into increased volumes Brazil: Economic revival was reflected mainly in higher industrial EBITDA Keep EBITDA in Venezuela positive by exporting sufficient volume Future focus: Fulfill the profitability expectations arising from the decisions made
This presentation could contain projections which differ from historical events or current conditions. They include, without limitation, management's current vision and forecast of future circumstances, industry conditions and company performance. Terms such as "could", "should", "anticipate", "believe", "estimate", "hope", "plan", "intend", "project", among others are used to identify some of these projections. Examples of projections include statements regarding future market shares, projected future competitive strengths, the implementation of important financial and operational strategies, the direction of future operations and the factors or trends which affect the financial circumstances, liquidity or operational results. These statements reflect management's current vision and are subject to diverse risks and things that could occur. There is no certainty that the anticipated events, trends or results will actually happen. These statements are formulated on the basis of many different assumptions and factors, including general economic and market conditions, the conditions of the industry and operational factors. Any change in the assumptions or factors referred to could cause the actual results of Masisa and the Company's projected actions to differ substantially from current expectations. This document is purely intended for information purposes and its contents do not have or seek to have any legal scope.