2. Duratex S.A.
Duratex S.A.
Public company traded, in stock market (BOVESPA), since 1951
Number of shares outstanding as of September 30th:
Common: 4.412.058.957
Preferred: 7.370.658.030
Preferred Shareholders´ Structure as of September 30th :
2003
2003 2002
2002
Itaúsa Itaúsa
24,4% 23,1%
Pe nsion
Pe nsion
Tre asury Te asury Funds
Funds
2,2% 5,7% 23,5%
23,7%
Othe rs
23,8% Othe rs
25,1% Fore ign
Fore ign
Inve stors
Inve stors
22,6%
25,9%
3. Capital Markets
Transparency & Communication
5th ABRASCA Prize - Best Annual Report 2002
Duratex was awarded 2nd place
80% tag-along rights to the preferred stock
Field trips to industrial units, one-on-one meetings, local
and international Road Show - 350 investors/analysts
www.duratex.com.br - Investors Relation website received
72.000 accesses during 2003, 36% more than during 2002
4. Preferred Stock Performance
From January to October 2003, Duratex stock was traded on
every working day, presenting na appreciation of 38,5%
Share s Trade d Trade d Volume (R$ Daily Ave rage
De als
(1,000) 1,000) Volume (R$ 1,000)
3rd Quarter 03 1.454 1.609.800 99.159 1.502,0
2nd Quarter 03 817 690.300 40.577 662,7
1st Quarter 03 675 614.400 31.947 525,7
4th Quarter 02 739 806.100 35.442 547,0
3rd Quarter 02 543 756.600 30.051 458,0
Var. 3Q03 - 3Q02 % 167,8% 112,8% 230,0% 227,9%
5. Duratex´s Preferred Stock Performance
Duratex PN X Stock Indexes
Duratex PN X Stock Indexes
100 Base: from 11/06/2002 to 11/06/2003
100 Base: from 11/06/2002 to 11/06/2003
200 91,8%
180 81,2%
160 68,2%
140 62,9%
120
100
80
2 2 3 3 3 3 3 3 3 3 3 3 3
-0 c-0 n-0 b-0 r-0 r-0 y-0 n-0 l -0 g-0 p-0 t-0 v-0
n o v de ja fe a a p ma ju ju a u se oc no
m
DURATEX IBOVESPA IBX FGV 100
6. Business Segments
Hardboard Metal Fittings
Particle Board Vitreous China
MDF/HDF/SDF Accessories
Laminate Flooring
Ceiling & Wall Paneling
7. Capex (US$ M)
121,1
113,2
94,5
75,9
63,9
59,3
54,4
44,6
36,0
1995 1996 1997 1998 1999 2000 2001 2002 2003*
* Jan to Sep/2003
Total CAPEX from 1995 to sep 2003: ~ US$660M
2003: expected CAPEX for the whole year: US$55M
8. Total Debt & Amortization Schedule (R$ M)
TRADE
BNDES & FINAME DEBENTURE IFC TOTAL
FINANCE
FOREIGN 29,5 - 101,2 45,6 176,3
DOMESTIC 152,3 75,6 - - 227,9
TOTAL 181,8 75,6 101,2 45,6 404,2
404,2 64,5
108,9
Foreign 176,4
Currency
100% hedge 55,1
60,4
Domestic 115,2
Currency
227,8
De bt 2003 2004 2005 2006 2007 &
Be yond
Average debt cost: 81% of CDI
9. Capex - Objectives
Leadership
Capacity Growth Technology Update Competitiviness
Economies of Scale
Improve Revenues Improve the Selling
with Cost Mix & Release New
Productivity Gains Reduction Products
Improve Profitability / Appreciate Stock Prices
10. Capex - Highlight
MDF / HDF / SDF
Location: Botucatu/SP
Total Invested: US$86M
Production Capacity: 400.000 m³/year
Improve scale
Leadership within MDF & HDF production
Differentiated technology that allows the
fabrication of SDF panels
Strategicaly located
Ramp-up:
feb/03 mar/03 apr/03 may/03 jun/03 jul/03 aug/03 sep/03 oct/03 nov/03 *
PRODUCTION (m³) - 5.825 9.218 9.471 11.249 12.122 8.943 17.723 17.789 20.000
* Company Estimates
12. Industrial Capacity & Level of Utilization (9 months of 2003)
Hardboard 92,0% 360.000 m3/year
360.000 m3/year
Particle Board AGI Last Phase: 500.000 m3/year
82,9%
140.000 m3 500.000 m3/year
MDF/HDF: 400.000 m3 640.000 m3/year
MDF 94,7% 640.000 m3/year
24,8% occupation in 2003
1,2 M
Me tal Fittings 1,2 M
80,0% pieces/year
pieces/year
265.000
Vitre ous China 265.000
88,6% pieces/year
pieces/year
13. Main Competitors
Hardboard Metal Fittings
Eucatex Docol
Particle Board Fabrimar
Berneck Vitreous China
Eucatex Elizabeth
Placas do Paraná Icasa
Satipel Ideal Standard
Tafisa Hervy
MDF/HDF Roca (Group ICL)
Masisa
Placas do Paraná
Tafisa
Laminate Flooring
Eucatex
Tafisa
14. Strategic Positioning
Wood Division – Product Range
Laminate
Hardboard Particle Board MDF/HDF SDF Wall Paneling
Flooring
Raw Painted Raw LP FF Raw LP FF
Duratex
Berneck
Eucatex
Masisa
Pl. do Paraná
Satipel
Tafisa
15. Strategic Positioning
Timberland
Timberland holdings: 83.000 ha of pinus and eucalyptus trees
Self-sustained, fully automated harvesting process and certified
areas by ISO 14.001 and Green Label
Average distance from timberland to industrial units: 50 km
80% self-sufficiency in wood supply as the competitors’ average is
around 48%
16. Strategic Positioning
Deca Division – Product Range
Product line in Metal Fittings: 6.000 items
Product line in Vitreous China: 260 items
Broad selling mix including from the most standard to the
higher end products
Broad water saving product line
17. New Products Released
From January to September 2003:
Wood Division: 66 new products
Deca Division: 28 products
MDF/Durafloor
Hardboard Particle Board Me tal Fittings Vitre ous China
Duraw all
1998 12 2 8 41 19
1999 17 6 1 32 20
2000 8 4 16 17 5
2001 33 18 14 15 30
2002 16 24 41 53 32
sep/03 10 14 42 21 7
Total 96 68 122 179 113
18. Strategic Positioning
Shutting Down of Gravataí/RS´s Particle Board Plant
Capacity: 140.000 m3/year
There will be no impact on revenues
Objectives:
cost reduction by R$10 M year;
concentrate the production closer to Sao Paulo’s consuming
centers;
Shutting Down of Jundiaí/SP´s Vitreuos China Unit I
Capacity: 600.000 pieces/year
There will be no impact on revenues
Objectives:
cost reduction by R$4,0 M year;
efficiency gains by concentrating the production of Unit I in Unit II
located also in Jundiaí
19. Wood Division – Shipments from Jan to Oct/2003 (in m³)
100.000
95.000
90.000
Estimated
85.000
80.000
75.000
70.000
65.000
60.000
Jan Feb Mar Apr May Jun Jul Aug Sep Oc t N ov
20. Deca Division – Shipments from Jan to Oct/2003 (1.000 pieces)
1.400
1.300
1.200
Estimated
1.100
1.000
900
800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct N ov
21. Distribution Channel
Construtoras 4%
Constructors
4%
Atacadistas
Wholesale 6%
6%
B2B +
Te le mktg
6%
De mais
Others 4%
Re ve nda 4%
80%
Retail 80%
Retail 20%
Re ve nda Construção
Civil Construction 7%
20% Civil
7%
De mais
Others 9%
9%
Furniture
Making 64%
Móve is
64%
22. Net Revenues Breakdown (9 months)
2003 2002
Laminate Laminate
Particle MDF Particle MDF
Flooring Flooring
Board 13% Board 11%
7% 7%
12% 14%
Me tal
Fittings
Me tal
25%
Fittings
24%
Hardboard Hardboard
34% Vitre ous 33% Vitre ous
China China
10% 10%
Wood Division: 66% Wood Division: 65%
Deca Division: 34% Deca Division: 35%
23. Exports (9 months)
2003
2003 2002
2002
Europe United States
United States 24% 59%
48% Europe
19%
South &
Central South &
Others Central
Others Americ a
9% America
13% 15%
13%
US$ 33,6 M + 7,7%
+ 7,7% US$ 31,2M
24. Exports – Strategic Positioning
Furniture Exports –
Showroom (Jundiaí/SP) Area:
Today: 600m2
At the end of November/2003: 2.000m2
Active clients: 7 (Holand, Mexico and South Africa)
Product line: 400 itens
Vitreous China Exports
Development of 30 new products specially featured to the North
American market
Establishing storage infrastructure in the US
Participation in fairs during 2004 (Kitchen & Bath in Chicago)
25. Consolidated Income Statement (R$ 1.000)
9m2003 VA% 9m2002 VA% HA%
NET REVENUES 710.420 100% 618.679 100% 15%
COGS (409.773) 58% (342.658) 55%
Depreciation/Amort./Depletion (41.610) (41.775)
GROSS PROFIT 259.037 36% 234.246 38% 11%
Selling Expenses (99.334) (78.926)
Provisions for Doubtful Payments (3.917) (1.863)
General & Administrative Expenses (31.748) (29.913)
Lay-off Provisions (5.717) (8.643)
Other Operating Results (2.741) (7.541)
INCOME BEFORE FINANCIAL RESULTS 115.580 16% 107.360 17% 8%
Net Financial Result (38.234) (20.081)
Taxes on Financial Operations (8.595) (8.223)
OPERATING INCOME 68.751 10% 79.056 13% -13%
Non Operating Income 2.214 4.205
INCOME BEFORE TAXES 70.965 10% 83.261 13% -15%
Income Tax & Social Contribution (23.208) (22.879)
Statutory Participation (6.012) (8.072)
Minority Participation (181) (436)
NET INCOME 41.564 6% 51.874 8% -20%
26. Consolidated Financial Summary (R$ M)
3Q03 2Q03 1Q03 4Q02 3Q02
Ne t Re ve nue s 264,4 225,3 220,8 248,2 236,4
COGS Ne t of De pr/Amort/De pl. 152,3 134,6 122,8 143,4 130,1
Gross Margin Ne t of De pr/Amort/De pl. 42,4% 40,3% 44,4% 42,2% 45,0%
De pre ciation/Amortization/De ple tion 13,3 14,2 14,1 14,3 14,6
Gross Profit 98,8 76,4 83,9 90,6 91,6
Gross Margin 37,4% 33,9% 38,0% 36,5% 38,7%
Ope rating Re sult 47,3 28,0 40,3 45,5 42,7
EBITDA 61,3 43,0 55,1 60,5 58,0
EBITDA Margin 23,2% 19,1% 25,0% 24,4% 24,5%
Ne t Income 13,4 7,6 20,5 19,8 24,8
ROE (annualize d) 5,9% 3,4% 9,3% 9,0% 11,5%
27. Financial Performance per Division (9 months of 2003 in R$ M)
WOOD DIV ISION DECA DIV ISION CON SOLIDATED
(R$M) V A% (R$M) V A% (R$M) V A%
N et Revenues 466,7 100% 243,7 100% 710,4 100%
COGS (264,5) 57% (145,3) 60% (409,8) 58%
Depr/Amort/Depl. (27,3) 6% (14,3) 6% (41,6) 6%
Gros s Profit 174,9 37% 84,1 35% 259,0 36%
EBITDA 9m2003 118,9 25% 40,6 17% 159,5 22%
EBITDA 9m2002 117,6 29% 32,3 15% 149,9 24%
28. Consolidated Operating Cash Flow Statement (R$ 1.000)
9m2003 9m2002
NET INCOME 41.564 51.874
Depreciation/Amortization/Depletion 43.923 42.517
Interest / FX Variation (Accrual) 231 109.565
Provisions / Write-Offs 16.523 11.541
SUB-TOTAL 102.241 215.497
Investments in Working Capital (56.762) 14.940
OPERATING CASH FLOW 45.479 230.437
29. Wood Division – Cost Breakdown
Hardboard Particle Board MDF
Raw Material 32% 59% 62%
Work Force 25% 11% 12%
Wood 19% 13% 9%
Depreciation 4% 7% 8%
Electric Power 11% 5% 7%
Fuel 9% 5% 2%
Total 100% 100% 100%
30. Deca Division – Cost Breakdown
Vitreous China Metal Fittings
Raw Material & Others 37% 54%
Work Force 40% 35%
Electric Power 4% 3%
Depreciation 9% 7%
Fuel 10% 1%
Total 100% 100%