Earnings Conference 4th Quarter/2017

Consolidated Results and Highlights

More favorable economic environment: improvement in demand and stable price environment

Gains in biological assets: adequation of the cost of capital in measuring biological assets

Duratex Management system: structured iniatives resulted in savings of BRL 76 million in 2017, in addition to the initial plan

Subsequent Events: sale of non-strategic assets

Net Revenue Recurring EBITDA Net Profit

Gross Margin EBITDA Margin

33.5% 25.8% 28.7%

In millions of BRL

Focus on S u s t a i n a b l e R e s u l t s

2

25.8% 20.8% 21.1% 19.0% 17.4%

4Q17 2017

1.103

3.991

229

760

85 25

185

4Q16 2016

1.029

3.910

217

2017 4Q16 2016 4Q17

681

2017 4Q16 2016 4Q17

26

Free Cash Flow and Debt

Reaping benefits of the S&OP: reduction in inventory levels in both divisions

Investments focused on sustaining: investments totaled BRL 366 million in 2017, below initial forecast

Deleveraging on course: gradual decrease in the financial leverage indicator

Subsequent Events: expect to significantly reduce indebtedness with the demobilization of exceeding assets

In millions of BRL

EBITDA Working Capital

CAPEX Taxes Others Financial

Flow Free

Cash Flow

2017 2016

Gross

Debt

Gross

Debt Cash Net

Debt

Cash Net

Debt

3,457

2,041

1,416

3,175

2,100

1,074

Net Debt/EBITDA 2.8x Net Debt/EBITDA 2.9x

4Q17 4Q16

3

Focus on S u s t a i n a b l e R e s u l t s

760

59 (366)

(46)

(262) (157) (11)

681

(381)

(48) (15)

(193) (70)

(26)

Days Payable

Outstanding

56 40

Cash Conversion

Cycle

105 123

Days Inventory

Outstanding

92 93

Working Capital and Investments

4

Reduction in inventory during the 2H17

Longer payment deadlines

Improvement in cash conversion cycle 2017

Opportunities for improvement in 2018

Forest OPEX

179 191

Maintenance

187 190

CAPEX

366

381

Rationalization of investments with focus on

sustaining of operations

Investments in sustaining in 2017 below initial

forecast (BRL 420 mn)

Despite idle capacity, we remain committed to the

maintenance of our long term operations

Focus on S u s t a i n a b l e R e s u l t s

Days Sale

Outstanding

69 70

2017 2016

In millions of BRL

2017 2016

Wood Division

3.2 3.0 2.5 2.5 2.6

3.9 4.0 3.6 3.5 3.7 MDF

MDP

Brazilian Panel Market Source: IBÁ – in millions of m³

2013 2014 2015 2016 2017

Idle Capacity Exports Domestic Market

0.2 0.3 0.4 0.6 0.7

0.2 0.3 0.1 0.3 0.4

EBITDA Margin 4Q16

In millions of BRL

Expansion of Operations: increase in sales and market share back to normal standards

Price increases as a leverage of results : increase in panels in Jan/18

Reduction of inventory and service level: capture of gains in new S&OP model

Biological Asset: smaller cost of capital, recognition of gains in BRL

Volume (‘000 m³)

Recurring EBITDA

Capacity Utilization

MDF 64%

MDP 59%

Wood 61%

4Q17

Gross Margin 37.2% 24.6%

Net Revenue

5

Total

Total

4.1 4.3 4.0 4.1 4.4

3.4 3.3 2.6 2.8 3.0

2017 2016

4Q16 2017 2016 2017 2016

27.8% 24.9% 22.7% 25.3% 20.0% 19.4%

Focus on S u s t a i n a b l e R e s u l t s

4Q17

672 639

2,433

157 175 502

2,399

692

2,515 2,594

692 504

4Q17 4Q16

Deca Division

ABRAMAT Index Source: ABRAMAT

In millions of BRL

Growth in a challenging market : construction still at low levels, focus on retail

Incorporation of Ceusa: transaction approved by CADE, results consolidated into 4Q17

Improvement in returns: better volumes and Duratex Management System as main leverages

Capacity

Utilization

Metals 65%

Ceramics 52%

Deca 61%

1.1%

-5.9% -12.5% -11.5%

-4.0%

1.5%

2013 2014 2015 2016 2017 2018e

Revenue for the construction materials industry in the domestic market vs previous year

4Q16

Volume (‘000 items)

4Q17

Gross Margin 27.4% 28.2%

Net Revenue

2017 2016

4Q16 2017 2016

30.2% 27.6%

EBITDA Margin 4Q16

Recurring EBITDA

2017 2016

17.4% 12.4% 17.5% 13.4%

Focus on S u s t a i n a b l e R e s u l t s

6

4Q17

6,224 5,944

24,590 26,053

410

1,475 1,315

337

4Q17

71 42

258 177

MarCo. Época Negócios Award

2nd place in “Construction Materials”

Merco

Antonio Joaquim as one of the 100

Most Influent Leaders of Brasil

Época Negócios 360 Award

1st place in “Construction

and Decoration Materials”

Abrasca Award

Honorable Mention in

Socio-environmental Aspects

Pró-Ética

Recognition for the 3rd

consecutive year

ISE

Duratex is part of the Index

for the 10th consecutive year

Prêmio Valor Inovação

1st place in “Construction

and Decoration Materials”

” Institutional Investor

Best IR Professional, 3rd Best CFO

and 3rd Best IR team

As Melhores da Dinheiro

1st place in

“Construction Materials”

Troféu Transparência

Recognition for the

2nd consecutive year

Great Place to Work

Seal for good

working environment

As Melhores do Agronegócio

1º plase in

“Sustainability”

Guia Exame de Sustentabilidade

Model company of the sector

for the 3rd time

7

Duratex in the SPOT LIGHT

Recognized by various STAKEHOLDERS

2007

to

2014

2015 2016 2017 2018

Growth Cycle

• Demand boom

• 2x capacity in both

business divisions

• Geographical and product

diversification

• Consolidation of Corporate

Governance

• Increase in market share

Management Excelency (SGD)

• Definition of an internal

agenda

• Duratex Management System

as main tool

• Definition of gaps / priorities,

goal – oriented management

and discipline

• EVA as performance metric

Jeito de Ser e de Fazer

• Strategic review of Duratex

personnel

• Culture is rejuvenated and

adapted to new challenges

• High performance teams

• Active and engaged

leadership

A New Duratex

• Value Proposition is revisited

• Duratex 2025 and Avenues for

Growth

• Client in the center of the

strategy

• Digital Transformation

• Welcome: Ceusa and Viva

Decora

Returns and Cash Generation

• Focus on generation of value

• Revision of asset base

• Exchange of lines of Thin

Fiber Wood

• Sale of exceeding land

• Company is more asset light

and with less financial debt

2018 8

Booming

Economy Economic Crisis Rebound of Economic Activity

Development of the Strategy

Events

Strategic Rationale

Evolution of the Brazilian wood panel market

Production technology from the 50’s

Focus on rationalizing the use of assets

Swap of Installation and Equipments for a

production farm

The remaining lines of thick and thin fiber wood

(MDF and HDF) production will continue to be

operated by Duratex

Transaction subject to approval by CADE

Lines will conitnue to be operated regularly by Duratex until approval is obtained

9

Sale of Installations and Equipment Dedicated to the Production of Thin Fiber Wood (Hardboard)

Operation Details

Subsequent

Expectation of resuming activities in the

Itapetininga unit in April / 2018

Evolution of forest management technology

Duratex expertise in forest plantation

Exceeding land and forests

Aquisition of land and forests in the amount of

BRL 308 million

Exclusive option to purchase an additional lot of

land and forests, in the value of BRL 749

million, to be excercised until 07/02/2018

Transaction subject to approval by CADE

Sale of Land and Forests

The amount received from this operation will be

used towards Duratex’s deleveraging, with the

reduction of net debt and financial expenses

10

Events Subsequent

Strategic Rationale Operation Details

Focus on rationalizing the use of assets

Message from the Administration

A leaner, more productive Duratex, with better returns for shareholders

Duratex Management System, Cultural Transformation, Sustainability

Strategy, Digital and Innovation as strategic foundation

Value Proposition, Duratex 2025 and Avenues for Growth directing

the capital allocation

Closer relationship to clients, initiatives to stimulate demand

and a focus on a mix of products with higher added value

Integration of new business, our brands as leverages for growth,

and caputring synergies

Efficient cash management, deleveraging, and the constant

search for returns above the costs of capital 11

The information herein has been prepared by Duratex S.A. and does not

represent any form of prospectus regarding the purchase or subscription to the

company’s shares or securities. This material contains general information

relating to Duratex and the markets the company operates in. No

representation or guarantee, expressed or implied, is made herein, and no

reliance should be placed on the accuracy, justification or completeness of the

information provided.

Duratex does not offer any assurances or guarantees regarding the fulfilment

of expectations described.

February, 2018

1) Recurring EBITDA: EBITDA adjusted for events not arising from the fluctuation in the fair value of biological assets,

a combination of extraordinary business and events

2) Recurring EBITDA UDM: Sum of Recurring EBITDA from the previous 12 months

Disclaimer and Glossary

12