September 2019

68 years of history

One of the market leaders in the

country’s floor and wall coverings segment

7 forestry units 16 manufacturing

facilities in Brazil3 manufacturing

facilities in Colombia

Biggest producer

of wood panels in Brazil

Leader in the

market for producing bathroom fittings

12 thousand

employees

Duratex: who we are

Our brands

Corporate Governance

40%

20%

40%

Itaúsa Ligna Free Float

Shareholder structure

• Dividend policy requiring minimum distribution of 30% of adjusted net earnings

• Senior Board comprising 9 members, including 3 independents;

• Senior board members may not hold an executive position within the company;

• 6 executive committees;

• Risk Management, Compliance, Audit and

Ombudsman Departments;

• Brokers who cover the Company: Bradesco BBI, BTG

Pactual, Citibank, Goldman Sachs, Empiricus Research,

HSBC, JP Morgan, Merrill Lynch, Morgan Stanley, Nau

Securities, Safra, Santander;

. Itaúsa centralizes strategic and financial decisions of a group of companies. Itaúsa operates in financial and industrial areas

and also administers large business institutions. Itausa is controlled by Itaú

Unibanco S.A and is Brazil’s largest private bank in terms of assets under management

and market capitalization –

Market Cap: R$101.6bn (Dec18)

Grupo Ligna reunites the investments of Helio Seibel and Salo Davi Seibel. Both are entrepreneurs with over 40 years of experience in different sectors of the economy. Currently, Grupo Ligna invests in the retailing, industry, power generation, property, agriculture and financial sectors. Net Assets: R$1.0bn (Dec17)

Yarumal

Barbosa

Manizales

Our manufacturing and forestry facilities

Colombia

Brazil

Wood Panels

Forests

Ceramic tiles

Hydra

Metals

Water closets

Criciúma (SC)

Sanitary Wares

Metal Fittings

Urussanga (SC)

WOOD DIVISION

Our portfolioMDP

Uncoated MDP, with applications in the furniture and civil

construction sectors.

Madeplac

BP

Coated MDP.Standard and

Textured.

MDF

Uncoated MDF, with applications in the

heavy-duty furniture sector.

Madefibra BPHeavy-duty, coated MDF Standard and Textured.

High Gloss BPCoated MDF, with

different degrees of gloss finish.

DurafloorLaminated wooden floor coverings and vinyl floor

coverings made from 100% recyclable PVC.

The Panels Market

84%

16%

Mercado Doméstico

Mercado Internacional

Final Destination

• Brazilian GDP

• GDP – Civil Construction

• Consumer Confidence

Main Indicators for the Sector:

32%

20%16%

8%

24%

Duratex

Arauco

Berneck

Fibraplac

Outros

Main companies

Main Association:

*Capacity Share

• IBÁ (Brazilian Tree Institute)

Current Market Utilization

80%

20%

1

Ocioso

Utilizado

* IBÁ data and Duratex estimates

Others

Domestic Market

International Market

Idle

Utilized

2Q19

Our operation

5 Manufacturing units

• Agudos (SP): MDF and Durafloor

• Itapetininga(SP): MDP and MDF

• Botucatu (SP): Operation suspended

• Uberaba (MG): MDF

• Taquari (RS): MDP

• MDP: 39%

• MDF: 28%

Capacity Share

Capacity Utilization – 66%

• UNCOATED: 60%

• COATED: 40%

Product/Volume Mix

Strategy of the Division

• Dedicated Factories

• Cost efficiency

• Differentiation

18%

13%

16%

8%

14%

31% Resina

Papel

Madeira

Energia

Mão-de-Obra

Outros

44%

52%

4%

Industria

Varejo

Construção Civil

Sales Segmentation Cost Segmentation

Furniture industry

Retail

Construction

Resin

Paper

Wood

Energy

Labor

Others

DECA DIVISION

Our Portfolio

SinkApplications in

commercial and residential kitchens and bathrooms (Inox Sink)

Sanitary WaresApplications in commercial and

residential bathrooms

Electric Showers

Wide variety of electric and gas powered showers

ValvesUsed in operating

flushing mechanisms

MetalsWide variety of taps for

kitchens and bathrooms

The Construction Market

40%

30%

30%

Deca

Roca

Outros

40%

20%

40%Deca

Docol

Outros

65%

20%

15%

Lorenzetti

Deca/Hydra

Outros

Market Share Sanitary Wares Market Share Metal Fittings

Market Share Showers

* ASFAMAS data and Duratex estimates

• Brazilian GDP

• GDP – Civil Construction

• Consumer Confidence

• New constructions

Main indicators for the sector:

• ABRAMAT (Brazilian Association of Construction Materials)

• ASFAMAS (Brazilian Association of Sanitary-Ware Manufacturers)

Main Associations

OthersOthers

Others

Deca

Roca

14%

42%

3%4%

37% Metais

Mao de Obra

Energia

Combustíveis

Outros

Our operationSanitary Wares

4 Manufacturing Facilities

• Jundiaí (SP)

• Queimados (RJ)

• João Pessoa (PB)

• Cabo de Santo Agostinho (PE)

• Sanitary Wares: 76%

• Metal Fittings: 71%

• Deca: 71%

Capacity Utilization Strategy of the Division

• Operational efficiency

• Asset Light

• Pricing

Metal Fittings

3 Manufacturing Facilities

• São Paulo (SP)

• Jacareí (SP)

• Jundiaí (SP)

Electric Showers

1 Manufacturing Facility

• Aracaju (SE)

66%

20%

8%5%

Revenda/Homecenter

Construtoras

Atacado

Outros

Sales Segmentation Cost Segmentation

Retail/Homecenter

Construction

Others

Wholesale

Metals

Labor

Electric Energy

Fuels

Other materials

CERAMIC TILES DIVISION

Our Portfolio

Polished porcelain tilesApplications in drier environments such as living

rooms, corridors and bedrooms

Tiles Wide range of applications for wet or dry

environments

Special finishings Wide range of applications with exclusive designs

using 3D technology.

The Ceramic Tiles Market

72%

28%

Via Seca

Via Úmida

Production Split

• Brazilian GDP

• GDP – Civil Construction

• Retail - Civil Construction

• Volume of ceramics

• Volume of cement

• Volume of steel

Main indicators for the sector:

Market share (% Revenue)

9%

7%

7%

4%

3%

70%

Portobello

Ceusa/Portinari

Eliane

Roca/Incepa

Elizabeth

Outros

Main associations

• ANFACER (National Association for Ceramic Tile Manufacturers)

75%

25%

1

Ocioso

Utilizado

Current Market Utilization

* ANFACER data and Duratex estimates

Idle

Utilized

Others

2Q19

Dry Process

Wet Process

48%

29%

6%

17%

Outros Materiais

Mao de Obra

Energia

Combustíveis

Our operation

2 Manufacturing Facilities

• Urussanga/SC

• Criciúma/SC

• Ceusa: 99%

Capacity Utilization

• Monotone

• Mono-caliber

• Dry joint fitting

Product differentials Strategy of the Division

• Focus on high-end products

• Increased capacity (New line)

• Synergies Cecrisa + Ceusa

Production Capacity• 31 million m²/year*

Capacity Share

72%

13%

9%

6%

Varejo

Homecenter

Construção Civil

Outros

Sales Segmentation Cost Segmentation

• 3%

* Consider CEUSA expansion

Retail

Construction

Others

Homecenter

Other materials

Labor

ElectrIc Energy

Fuels

Results

Consolidated ResultsBRL million

Net Income and Gross Margin Rec. EBITDA and EBITDA Margin Net profit rec.

• Domestic economic

recovery weaker than

forecast, impacting

volumes;

• EBITDA margin

impacted by the drop in

market volumes and

increase in costs;

• Net profit boosted by the positive

variance in the biological assets

and improvement in the financial

results;

1.006 1.110 1.277 1.263 1.073 1.145

27%27%

28%29%

26%

31%

23%

24%

25%

26%

27%

28%

29%

30%

31%

32%

-

1.00 0

2.00 0

3.00 0

4.00 0

5.00 0

6.00 0

7.00 0

8.00 0

9.00 0

10.0 00

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

182 220 210 237 179 213

18%20%

16%19%

17%19%

0%

5%

10%

15%

20%

25%

-

100

200

300

400

500

600

700

800

900

1.00 0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

31 27 62

19

69

-

100

200

300

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

151

Results by DivisionBRL Million

Wood

Deca

601 614 768 766 598 610

-

100

200

300

400

500

600

700

800

900

1.00 0

1.10 0

1.20 0

1.30 0

1.40 0

1.50 0

1.60 0

1.70 0

1.80 0

1.90 0

2.00 0

2.10 0

2.20 0

2.30 0

2.40 0

2.50 0

2.60 0

2.70 0

2.80 0

2.90 0

3.00 0

3.10 0

3.20 0

3.30 0

3.40 0

3.50 0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Volume (`000 m³)

628 690 815 847 678 702

27% 25% 27% 28%25%

32%

0%

5%

10%

15%

20%

25%

30%

35%

-

100

200

300

400

500

600

700

800

900

1.00 0

1.10 0

1.20 0

1.30 0

1.40 0

1.50 0

1.60 0

1.70 0

1.80 0

1.90 0

2.00 0

2.10 0

2.20 0

2.30 0

2.40 0

2.50 0

2.60 0

2.70 0

2.80 0

2.90 0

3.00 0

3.10 0

3.20 0

3.30 0

3.40 0

3.50 0

3.60 0

3.70 0

3.80 0

3.90 0

4.00 0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Net Rev. and Gross Margin

126 163 136

172 126 139

20%24%

17%

20% 19% 20%

0%

5%

10%

15%

20%

25%

-

100

200

300

400

500

600

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Rec. EBITDA and EBITDA Margin

6,3 6,8 6,9 6,0 5,7 6,4

-

5,0

10,0

15,0

20,0

25,0

30,0

1T18 2T18 3T18 4T18 1T19 2T19

Volume (million items)

334 374 407 368 348 386 26%

27%

29%

30%

28%

30%

24%

25%

26%

27%

28%

29%

30%

31%

-

100

200

300

400

500

600

700

800

900

1.00 0

1.10 0

1.20 0

1.30 0

1.40 0

1.50 0

1.60 0

1.70 0

1.80 0

1.90 0

2.00 0

1T18 2T18 3T18 4T18 1T19 2T19

Net Rev. and Gross Margin

46 47 59 52 45

64

14%13%

15% 14%13%

17%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

-

100

200

1T18 2T18 3T18 4T18 1T19 2T19

Rec. EBITDA and EBITDA Margin

44 46 55 48 46 57

40% 40%40%

38% 37%

35%

32%

33%

34%

35%

36%

37%

38%

39%

40%

41%

-

50

100

150

200

250

300

1T18 2T18 3T18 4T18 1T19 2T19

Net Rev. and Gross Margin

10 10 14 13

8 11

23%21%

26% 27%

18% 19%

0%

5%

10%

15%

20%

25%

30%

-

5

10

15

20

25

30

35

40

45

50

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Rec. EBITDA and EBITDA Margin

1.261 1.237 1.501 1.340 1.242 1.472

-

1.00 0

2.00 0

3.00 0

4.00 0

5.00 0

6.00 0

7.00 0

8.00 0

9.00 0

10.0 00

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Volume (`000 m²)CeramicTiles

BRL million

Financial Indicators

Net Debt and Leverage Multiple (x)

• Controlled leverage, a result of

efficient management policy;

• Long term debt profile,

with competitive cost of

capital;

• Liability Management

as a pillar of internal

initiatives;

Amortization Timeline Debt Profile

2.216 2.163 1.949

1.700 2.010 2.060

2,80 2,59

2,32

2,00

2,38 2,45

-

0,50

1,00

1,50

2,00

2,50

3,00

-

1.00 0

2.00 0

3.00 0

4.00 0

5.00 0

6.00 0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

461

748

88

711

1.269

2019 2020 2021 2022 2023 +

Dívida Bruta

36%

64%

1

Longo Prazo Curto PrazoShort term Long termGross debt

The Company turnaround...

Strategy DevelopmentA leaner and more productive Duratex, with stronger shareholder returns

Boom in demand

Increase in market share

Geographical and product diversification

Consolidation of Corporate Governance

Growth Cycle

Strategic review of the Duratex culture

Rejuvenated culture ready to face new challenges

High performance teams

Active and engaged leadership

Cultural TransformationSale of land and forestry assets

Sale of the Hardboard business

Closure of the unit at Botucatu and re-opening of the unit at Itapetininga

Joint Venture in soluble cellulose with the Austrian company Lenzing

Unification of shower operations with the closure of the operations in Tubarão/SC

Ceusa Expansion Project

Duratex Management System

Identification of gaps and priorities

Zero Based Budgeting

Operational Efficiency

EVA as a performance metric

Solutions for Better Living

Duratex 2025

Client at center of strategy

Digital innovation

Welcome: Ceusa and Viva Decora

2007 to 2014

2015 2016 2017 2018Economy Expanding Economic Crisis

Economic Recovery

Management Excellence The New Proposal Duratex

Asset Management

Duratex2019

2019

Launch of inox cubes

Closure of the Sanitary Ware unit in São Leopoldo

License granted for construction of theDissolving Wood Pulp factory

Acquisition of CECRISA

And still

more...

SYNERGIES Closure of the ceramic tiles unit in Santa Luzia/MG

The New Duratex

PEOPLEThe people are our strength

RESULTSSustainable high performance

CLIENTWe are the best choice

PROCESSESJob well done, simply and safely

WAY OF BEING AND DOINGStrategic pillars

...GENERATING CASH AND MAXIMIZING SHAREHOLDER VALUE Executive remuneration based on cash generation and EVA

...SUSTAINABLE GROWTHOrganic and inorganic growth within our way of working and

being

...INNOVATION & DIGITALIZATIONAs a way of simplifying our processes and leveraging our sales

channels

A company focused on...

...STRATEGIC ASSETSOptimization of the current assets and productive management

with partners

...CLIENT SOLUTIONS One-stop-shop, complete in-situ experiences

Th

em

es

Pil

lars

Asp

irati

on

s

◊ Working Conditions

and Employee

Development

◊ Client and Consumer

Engagement

◊ Relationship with

Communities and Local

Development

◊ Eco-efficiency

◊ Climate Change

◊ Sustainable Forest

Management

◊ Responsible Supply

Chain

◊ Sustainable

materials and

solutions

Generating new

business that

supports

sustainability

Developing People

and Creating Value

in the Chain

Growing the socio-

environmental

positive impact

from point to point

Innovating with

sustainable

solutions

People

Processes

Products &

Services

New business models

Our numbers and

StrategySustainability

80% of renewable sources in our energy grid

55% of the energy grid composed of biomass

24% of water re-use in our in-house production processes

Around 10 Thousand employees have already completed an educationalprogram in sustainability

11biodiversity projects developed in 2018

Our forests are inhabited by more than 2 thousand native species of fauna and flora, with 30 of them at risk of extinction, according to the IUCN red list

Four

Solutions for BetterLiving

Business

Portfolio of productsas a design benchmark

Strong Brandssynonym of excellence

Innovationas a directional ofprocesses

Solid Management System(SGD) with focus in generatingvalue

DissolvingWood Pulp

Units

Contacts

Investor Relations Team

Guilherme Setubal Souza e Silva Executive Manager IR

Natasha UtescherIR Coordinator

Guilherme.silva@duratex.com.br

Natasha.utescher@duratex.com.br+55 (11) 3179 7037

Investor Relations Investidores@duratex.com.br

www.duratex.com.br/RI

Lucas Mendes VoltarelliIR Analyst

Lucas.voltarelli@duratex.com.br+55 (11) 3179 7920