1

Results Teleconference

Q1/2019

Consolidated Results R$ million

Lower than expected recovery in demand: economic uncertainty impacting volumes Trade policy compensating for lower than expected volumes: successful implementation

of price increases Increase in freight costs: impacted quarterly results

31 19 0

50

100

150

200

250

300

350

400

450

500

1Q18 1Q19

Recurring Net Earnings (R$ million)

Lucro Líquido Recorrente

Recurring EBITDA & EBITDA Margin

182 179

18.1% 17.1%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

0

200

400

600

800

1.0 00

1.2 00

1Q18 1Q19

1006 1073

27.3% 26.2%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

0

500

1.0 00

1.5 00

2.0 00

1Q19 1Q19

Net Income & Gross Margin

Net Income (R$ million) Gross Margin Recurring EBITDA (R$ million) EBITDA Margin

2

3

Cash Flow & Debt Operating results: in line with last year even given the fall in sales volumes Working Capital: trade activities lower than expected, impacting inventory levels, but

with expectations for improvement during 2019 CAPEX: focus on sustaining operations Leverage: payment of Dividends & JCP of R$286m, as forecast

R$ million

EBITDA Working Capital

CAPEX Taxes Other Financial Flow

Free Cash Flow

1700 2010

2.00x

2.38x

1,0 0x

1,2 0x

1,4 0x

1,6 0x

1,8 0x

2,0 0x

2,2 0x

2,4 0x

2,6 0x

(1 00)

900

1.90 0

2.90 0

3.90 0

4.90 0

4T18 1T19

Recurring Leverage

Net Debt Net Debt / EBITDA

*EBITDA figure includes the sale of land to Suzano and others for the value of R$25.5m.

205*

(114) (80)

(18)

2

(10) (16)

182

(18)

(81)

(12)

(67) (28) (23)

Cash Flow

1T19

1T18

4

Working Capital & Investment R$ million

65

108

67

106

65

94

53

106

Client PMR (days) Inventory PME(days)

Supplier PMP (days) Cash cycle (days)

Working Capital

1Q19 1Q18

43 39

82

43 38

81

Forestry OPEX (BRLmillion)

Maintenace and Projects(BRL million)

CAPEX (BRL million)

Investment

1Q19 1Q18

Capture of benefits from initiatives relating to efficient management of suppliers: 14 day increase in supplier payment lead times

Inventory: weaker domestic demand than forecast and preparation for the 2Q19 maintenance shutdowns have temporarily impacted inventory levels, especially in Wood

Investment: in line with 1Q18 and the strategy for operational improvements and the focus on sustaining operations

5

Wood

6

Brazilian Panels Market

Source: IBÁ – in million of m³

Entry of new producers

into the MDF market is generating excess capacity 3.6 3.5 3.7 3.9

0.9

0.4 0.6 0.7 0.7

0.2

19% 22%

18% 14%

21%

0%

5%

10%

15%

20%

25%

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

2015 2016 2017 2018 YTD19

MDF

Mercado Doméstico Exportações Ociosidade

2.5 2.5 2.6 2.8 0.7

0.1 0.3 0.4 0.5

0.1

30% 27% 27%

22% 23%

0%

5%

10%

15%

20%

25%

30%

35%

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

2015 2016 2017 2018 YTD19

MDP

Mercado Doméstico Exportações Ociosidade

Domestic Market Exports Idleness

Domestic Market Exports Idleness

593 670

35 8 628 678

-320

180

680

1.1 80

1.6 80

2.1 80

1T18 1T19

27.0% 24.5%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

40, 0%

-320

180

680

1.1 80

1.6 80

2.1 80

7

Wood Headlines

Capacity Utilization

1Q19*

MDF 63%

MDP 71%

Wood 67%

Growth in panel volumes: purging of hardboard line, sale of panels (MDP & MDF) grew 3.3%

Product mix improvement: greater volume of laminated panels Pricing policy: successful implementation of new pricing policy has boosted

revenues

R$ million

578 594

23 4

601 598

-

500

1.00 0

1.50 0

2.00 0

1Q18 1Q19

Wood Panels Fiberboard total

Volumes (‘000 m³) Recurring EBITDA (R$ million) & EBITDA Margin (%)

123 126 3

126 126

0

100

200

300

400

500

600

700

800

900

1T18 1T19

EBITDA Margin

Net Income (R$ million) & Gross Margin (%)

Gross Margin

20.1% 19.2%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

-320

180

680

1.1 80

1.6 80

2.1 80

2.6 80

3.1 80

*The value considers the capacity of Botucatu plant which is inactive

8

Deca

9

Brazilian Construction Materials Industry

Source: ABRAMAT

Income from the domestic market of the construction materials industry vs prior year

Start of the year showed moderate growth, with March standing out as the first month of the year showing a positive result

Expectations for 2019 remain positive

2014 2015 2016 2017 2018 2019e 1Q19

-5.9%

-12.5% -11.5%

-4.0%

1.0% 0.1% 2.0%

10

Deca Headlines Capacity Utilization

1Q19

Metals 72%

Sanitary

Ware 69%

Deca 71%

Internal initiatives partially compensating for the dip in results: price increases, improved management of fixed costs and productivity

Gross Margin: improvement in line with 1Q18 Improved product mix: fall in volumes compensated by improved prices

and mix

R$ million

6,268 5,748

1

1.00 1

2.00 1

3.00 1

4.00 1

5.00 1

6.00 1

7.00 1

8.00 1

9.00 1

1Q18 1Q19

Volume

Volumes (‘000 pieces)

46 45

13.7% 13.0%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

0

100

200

300

400

500

600

700

800

1Q18 1Q19

Recurring EBITDA (R$ million) EBITDA Margin

334 348

26.1% 28.1%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

-320

180

680

1.1 80

1.6 80

2.1 80

1Q18 1Q19

Net Income & Gross Margin

Net Income (R$ million) Gross Margin

Recurring EBITDA & EBITDA Margin

11

Ceramic Tiles

12

Brazilian Market for Ceramic Tiles

Source: ANFACER – in million of m²

Slight sales bounce in both the internal and external markets

816 706 685 695

166 174

77 94 90 101

23 23

18%

28% 28% 28% 27% 25%

0%

5%

10%

15%

20%

25%

30%

-

200 ,00

400 ,00

600 ,00

800 ,00

1.00 0,00

1.20 0,00

1.40 0,00

1.60 0,00

1.80 0,00

2.00 0,00

2015 2016 2017 2018 1T18 1T19

Mercado Doméstico Exportações OciosidadeDomestic Market Exports Idleness

13

Ceramic Tiles Headlines

Capacity

Utilization

1Q19

Ceusa 99%

Volume in line with the previous year Revenue: implementation of price increases Recurring EBITDA & EBITDA Margin: one-off impact of the cost of

integrating the IT system and ERP implementation

R$ million

1.261 1.242

1

1.00 1

2.00 1

3.00 1

4.00 1

5.00 1

1Q18 1Q19

Volume

Volumes (‘000 m²) Recurring EBITDA & EBITDA Margin

10 8

22.9%

18.0%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

0

100

200

300

400

500

600

700

800

1Q18 1Q19

Recurring EBITDA (R$ million) EBITDA Margin

44 46

40.1% 37.2%

0,0 %

5,0 %

10, 0%

15, 0%

20, 0%

25, 0%

30, 0%

35, 0%

40, 0%

45, 0%

-320

-120

80

280

480

680

880

1.0 80

1Q18 1Q19

Net Income & Gross Margin

Net Income (R$ million) Gross Margin

Short Term Prospects 2019

Domestic Market: Slower recovery than expected in 1Q19 Expectations of improvement in the second semester of the year

Wood Trade Policy gains: management of price & mix Increase in volumes during the year, with focus on product

differentiation Deca

Implementation of the strategic growth agenda Higher productivity Prospects for an uptick in civil construction

Ceramic Tiles Focus on expanding manufacturing capacity

Soluble Cellulose Finalizing engineering studies and obtaining licenses

15

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.

May 2019

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 & Glossary

16