Investor Presentaiton
GBM
MDF (MEDIUM DENSITY
FIBER) WOOD BOARDS
(P$6.1 PER SHARE)
More rational competition points to stabilized market pricing
• MDF wood boards are used in the manufacturing of furniture, cabinets, and flooring, as
well as interior design projects.
• Mexico's consumption: 852,000 m³ in 2019 (+5.3% 2016-2019 CAGR).
• Proteak's Tecnotabla brand achieved a market share of 25% in only four years, by way of
vertical integration and differentiation strategies, and overall import substitution.
Vertical integration: As its eucalyptus farms feed wood to its 240,000 m3 mill.
FINSA's expertise: FINSA is a Spain-based board manufacturer that has produced MDF
since 1980. It has been Proteak's shareholder since 2015.
Differentiation strategies: Brand awareness campaigns targeted to interior designers,
carpenters, and architects aim to place the Tecnotabla brand in the mind of customers.
• The company's eucalyptus trees take five years to mature, making them a great complement
to the Teak unit.
• Rational competition: Market prices have remained low since the unit's inception, on the
back of heavily discounted imports coming from Brazil, mainly. The Brazilian construction
index points to a recovery in the local market, which should contribute to price stabilization
in Mexico.
TEAK: AFTER ALL, MONEY DOES GROW ON TREES. | 17View entire presentation