CHILE – Chilean board manufacturer Masisa announced that from the period that ended on June 2015, it has decided to apply to its financial statements the SIMADI exchange rate in Venezuela.

In the Bolivarian country there are three official exchange rates: CENCOEX, SICAD and SIMADI. At the of 2Q-2015 (June 30, 2015), the SIMADI exchange rate stood at BS. / 197.298 per dollar. The SICAD change, the rate used by Masisa up to this announcement, stood at BS. / 12.8 per dollar on June 30th. Masisa is applying the SIMADI exchange rate (BS. / 197.298 per dollar) to express items and operations in foreign currency and to convert the financial statements for consolidation.

Masisa remarked in a statement to the market, ”Since Venezuela is considered a hyperinflationary economy in accordance with International Financial Reporting Standards (IFRS), the exchange rate SIMADI is the one that better reflects the reality of operations in Venezuela.”

The application of the SIMADI exchange rate in the June 2015 financial statements, results in the following negative impacts on the 2Q-2015 Masisa figures: USD 248.8 million in total revenue, USD 59.5 million in gross profit, USD 24.7 million in EBITDA, USD 3.4 million in accumulated profit attributable to the owners of the parent company and USD 230.1 million in equity attributable to the owners of the parent company. As a consequence, Venezuela will only represent 2.5% consolidated EBITDA for 2Q-2015.

In 2Q-2015, consolidated revenue excluding Venezuela reached USD 253.4 million, a decrease of USD 131.9 million (- 34.2%). This decrease is mainly due to lower income from forestry sales in Chile as a result of the extraordinary sale of forests in Chile in April 2014. Consolidated recurring income excluding Venezuela reached USD 232.0 million, a decrease of USD 5.2 million (-2.3%), mainly due to currency devaluation across the region.

Masisa Chairman Roberto Salas emphasized: “Thanks to the timely measures we have recently put in place, we have had a better performance during this first half compared to 2014, despite the complex economic context in some markets and the decision to apply the SIMADI exchange rate in Venezuela. We will continue to be proactive and exercise the prudence required at this time.”

Masisa Sales by Product April-June 2Q

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Masisa, ventas por producto Enero-Junio 1S

USD Million