BRAZIL – In 2Q-2018, the scenario was marked by various economic and political uncertainties and challenges that affected the performance of the Company’s key indicators.

The optimistic expectations that marked the beginning of 2018 were severely impacted by the truck drivers’ strike.

Sales of Eucatex wood segment grew 1.4% in 2Q-2018 and 5.1% in the first half of the year (1H-2018), due to price increases. Consolidated sales – that also includes the paint and varnish, laminated flooring, and doors segments – reached BRL 302.0 million and BRL 605 million in the 2Q-2018 and first half of 2018 (1H-2018), for growth of 4.0% and 5.7% respectively.

In 1H-2018, Recurring EBITDA amounted to BRL 105.8 million, increasing 8.3% compared to 1H-2017, accompanied by Recurring EBITDA Margin of 17.5% (+0.5 p.p.).

Net loss amounted to BRL 5.5 million in 2Q-2018, down 272.3% compared to 2Q-2017. In the six- month period, recurring net loss came to BRL 0.3 million, down 102.4% from 1H-2017.

The Company continues to believe in and is confident in the generation of better results based on the various efforts to boost sales in the domestic and export markets, while cutting expenses and streamlining processes.