GrupoNueva and its companies follow a triple bottom line management strategy. We see success as the simultaneous achievement of positive results in the economic, social and environmental spheres. According to our founder, Stephan Schmidheiny, “Our strategy is the best for sustainable value creation”.

Our results confirm it. GrupoNueva has grown for six consecutive years, with sales in 2006 of US$1.7 billion, 20% more than in 2005, and EBITDA in that same year of US$260 million, 9% higher than the previous year. At the same time, we managed to ensure that all our operations functioned according to ISO 14001 and OHSAS 18001 standards, and we achieved Forest Stewardship Council (FSC) certification for our forests and plantations.

We are proud to be a holding company that complies with Stephan Schmidheiny’s vision of ensuring that our companies contribute to improving the societies in which we work. We do this not only by operating in a socially and environmentally responsible manner, but also by building alliances with civil society organizations to help create more sustainable societies.

Our companies are beginning to put into practice business models that help to break the vicious cycle of poverty, while at the same time allowing us to improve profitability. Our 2008 goal is to ensure that 10% of our sales come from this type of business. In Masisa we have developed a line of basic furniture for low-cost housing that is installed and/or sold through social networks of low-income groups in Venezuela and Chile.

We are also renewing our commitment to the principles of the United Nations Global Compact.

The year 2006 saw very important changes, with our companies showing excellent results in various fields.

• In March 2007 we sold Amanco to Mexichem. Amanco’s solid position allowed us to carry out a highly successful financial operation. The year 2006 presented Amanco with some significant challenges. The company was able to manage an intense project to raise capital while at the same time maintaining continued growth: sales increased by about 16%, while the company’s EBITDA remained at around US$84 million, in spite of the effects of the separation of its construction systems business – now The Plycem Company – and significant brand development costs in Brazil. Without this extraordinary expense, and without the separation of Plycem, our adjusted EBITDA would be US$97 million.

•The Amanco story demonstrates the success of GrupoNueva’s triple bottom line management strategy for sustainable value creation. It shows how leadership in social and environmental responsibility – now a company asset – contributes to the company’s value and profitability. GrupoNueva is proud of this joint achievement of Amanco and its employees.

•The year 2006 was one of growth and consolidation for Masisa, which achieved a sustained increase in sales that reached US$887 million, an increase of 19% over 2005.

• Masisa defined wood boards for furniture and interior design as its core business. The solid wood, forestry and retail businesses will focus their strategies and future investments on optimizing the board business so as to make the company even more competitive.

• In southern Chile we are building what will be Masisa’s largest MDF production plant in Latin America, with an annual output of 340,000 m3.

• In 2007 IR Global Rankings of the New York Stock Exchange recognized Masisa as having one of the best corporate governance practices in Latin America, according to MZ Consult, the North American firm offering consultations in finance and relations with investors.

• We are very pleased with the positive results of the 2006 study on the commitment of Masisa employees, which reached 67%, placing the company among those with the best performance and highest returns on investments. The main strength highlighted by employees is the daily work to which they feel committed, through which they are fulfilled, and by which they promote the company’s mission and achieve its goals.

• In 2006 Masisa reduced by 18% its accident frequency index over the previous year among direct employees and contractors. We deeply regret the three fatal accidents that befell contractors in our forestry activities.

• Masisa is the first Chilean company to be admitted to the Chicago Climate Exchange (CCX). This membership allows the company to carry out greenhouse gas transactions on the voluntary emissions trading market in the United States, in addition to ensuring the commitment of the company to maintaining a positive or neutral carbon balance.

• The eco-efficient management of Masisa allows us to make savings in costs and efficiency in the use of resources. In 2006 we managed to reduce total water use by 28%, and the generation of final waste by 3% in plants and sawmills. Unfortunately overall energy consumption increased by 7.6% over the same period for two main reasons: biomass consumption increased significantly in the Venezuelan plant, and the reduced production in Ponta Grossa, Brazil, was not reflected in reduced energy use as this resulted in sporadic stoppages that did not result in a drastic decrease in energy consumption.

• Masisa made US$5 million worth of environmental investments in 2006, mainly in the control of atmospheric emissions, and of effluents and waste. It also committed itself to Action on Global Sustainability by signing the global Leadership Statement on Sustainability at the Rome meeting of the International Council of Forest and Paper Associations (ICFPA). Here leaders and representatives of the forestry and paper industry signed their commitment to the initiative.

• Masisa received many awards in 2006: the “Leaders for a Living Planet” award from the World Wide Fund for Nature (WWF) International in Chile; the “Corporate Sustainable Standard-Setter” prize awarded by the international organization, Rainforest Alliance; Masisa Brazil received the Fritz Müller Prize, in public recognition by the environmental authority given to companies and institutions that stand out in their environmental management; the First Class Orden Cacique Guaicaipuro awarded to Masisa Venezuela by the indigenous council of the Independencia Municipality of Anzoátegui State to institutions and organizations that have contributed to raising the quality of life of the Kariña indigenous communities. Masisa Argentina also received numerous awards: the prize for environmental excellence in business for its Zero Effluents program at its Concordia Plant; its election as one of the best 50 companies in which to work, according to the annual ranking published by the business magazine Apertura; and the Premio a la Exportación Argentina (prize for Argentine exports) for the sixth consecutive year.

• In 2006 The Plycem Company was constituted as a company independent from Amanco, now reporting directly to GrupoNueva.

• This same year The Plycem Company managed to reach record volumes in sales of its flat fiber cement sheets, reaching almost 95% of its consolidated industrial capacity.

• Within the framework of its growth and expansion strategy into international markets, The Plycem Company developed new products such as the Plycem Bearing Walls for the construction of multiple-storey buildings; and the successful introduction onto the US market of Trims, external moldings to provide decorative accents for housing and commercial structures.