2. > Business segments
DECA DIVISION
Metal Fittings
Vitreous China
Accessories
A i
Leadership within the Metals segment having
a prominent position in Vitreous China.
Possesses the industry´s broader product line
industry´
attending the different market segments.
3. > Business segments
WOOD DIVISION
Hardboard
MDP
MDF/HDF/SDF 0
Laminate Flooring
Leadership within the Brazilian
p
panel making industry having the
most diversified product line
line.
4. > Business segments
100% of the timberland h ldi
f h i b l d holdings under D
d Duratex S A
S.A.
Total timberland area: 115.000 ha:
• market value:
al e R$ 1 260 M (USD 720 M)
1.260 M);
• book value (Mar/08): R$ 455 M (USD 260 M).
Self-sufficiency
Self sufficiency in wood supply:
• cost efficiencies;
• strategic access to raw material;
• process integration reducing business volatility / risk.
ISO14.001 and FSC certified; ;
Member of the Chicago Climate Exchange (CCX):
• Amount of CO2 offsets (timberland): 1.314.004 tones.
5. > CAPEX: material fact March 2007
Capacity increase:
MDF biggest line: 800.000 m3 capacity / year:
growth over existing capacity: +125% (end 1HY09). Agudos/SP
Metal Fittings: + 400.000 items / month:
growth over existing capacity : +33% (end 2HY09).
33%
Vitreous China: + 150.000 items / month:
growth over existing capacity: + 47% (acquisition of Ideal Standard).
Enrich sales mix:
Expand by 130% the current laminate flooring production
capacity (end 1HY09).
1HY09)
New Low Pressure (BP) Coating Line : 8.500.000 m2 / year:
Metal Fittings and Vitreous growth over existing capacity: +35% (end 1HY08).
China in Jundiaí/SP
Increase cost efficiencies:
Resin plant: produce 100% of resin needs for MDF + MDP (end 1HY09).
Acquisition of 20.000 hectares of land in the region.
SAP Software and IBM Risk Hardware.
6. > CAPEX
Acquisition: IDEAL STANDARD (vitreous china)
Characteristics of the acquisition:
• R$ 60M: Acquisition + Capex + Working Capital needs;
• 2 plants: Jundiaí/SP (80k items/month) and Queimados/RJ (70k items/month)
items/month).
Advantages:
• Investment per item: 30% savings over a g
p g green field p j ;
project;
• Time to market: a green field would take 24 months to be completed.
7. > CAPEX: material fact May 2008
Capacity increase:
MDP: 1.000.000 m3 capacity / year:
growth over existing capacity: +200% (end 2HY10). Itapetininga/SP
Enrich sales mix:
New Low Pressure Coating Line:
growth over existing capacity : +33% (end 2HY09).
Cost savings:
Resin plant:
provide 100% of resin needs to the Itapetininga site.
Objectives:
j
Take advantage of good market momentum,
Strengthen market leadership,
Improve competitive advantages and
Create value to shareholders.
10. > Duratex
Nominal capacity and utilization rate during the 1Q2008:
Hardboard
H db d 92% 360.000
360 000 m3/year
MDP 85% 500.000
500 000 m3/year
MDF/HDF/SDF 87% 640.000
640 000 m3/year
15.600 K
Metal Fittings 77% items/year
4.000 K
Vitreous China 98% items/year
Highlights:
> Wood Division: plant stoppage for 10 days on average
> Metal Fittings: capacity increased by 1,2 M items / year
11. > Housing
Housing financing via savings account (in R$ million)
. New loans Jan/08
21.000
18.410
18 410 . Increase over Jan/07
224,5 M
+2.300% a/a
248,5 M
9.314 +145% a/a
76,9
76 9 M
4.852
3.002 +52% a/a
902,8 M
+109% a/a
2004 2005 2006 2007 2008* 167,5 M
Source: ABECIP, BACEN, 2008 estimate:SECOVI +49% a/a
Interest rate and Civil Construction GDP
22,00%
19,00%
18,50%
15,75%
17,50% 17,25% 13,25%
11,25% 11,30%
5,7% 5,6%
5,3%
4,5%
2,1% 1,3% SELIC rate
Civil Construction GDP
Ci il C t ti
2000 2001 2002 2003 2004 2005 2006 2007 2008* * IBGE and Bacen
-2,6% -2,5% estimates
-8,6%
15. > Leverage
R $ M 1 Q 0 8
T o t al D e b t 7 9 3 , 8
C a s h a n d e q uiv ale n ts 7 0 5 , 0
E q u it y 1 . 5 7 8 , 7 34%
LT ST
N e t D e b t / E q u it y 5 , 6 %
66%
N e t D e b t / E B I T D A 0 , 1 7
Foreign
Currency 160,5 Debt and Amortization
268,6
Schedule (R$M)
119,7
Domestic
Currency 633,3 260,3
260 3
145,2
Debt 1Q08 2008 2009 2010 2011 and
after
16. > Highlights 1Q2008
Shipped Volumes: + 11% y/y;
Net Revenues: + 29% y/y, to R$ 147,0 million;
Gross Margin: from 39%, in 2007, to 43%;
EBITDA: + 59% to R$ 43,1 M. EBITDA Margin from 24% to 29%.
17. > Highlights 1Q2008
Wood
Shipped volumes : - 2%;
Net Revenues: R$ 281 3 million, up b 16% y/y;
N tR 281,3 illi by /
Gross Margin: from 48% to 39%;
EBITDA: - 9% to R$ 84,8 million and EBITDA margin at 30%;
Results impacted by increasing cost pressure arised from:
• resins,
• electric power.
22. > Capital markets
Shareholding Structure:
Total number of outstanding shares: 129,7M
• PN: 76,1M,
80% tag along rights
• ON: 53,6M.
Preferred shareholders historic holdings:
60%
55%
50%
45%
Foreign Investor
40%
35% Other Local Investors
30%
25%
20%
15%
10% Local Pension Funds
Itaúsa (Controller)
5%
0%
7
08
ar
n
r
v
l
ai
t
z
o
v
/0
ju
t
ou
ab
de
no
ju
ag
se
fe
m
m
n/
ar
ja
m
23. > Capital markets
Stock Performance (period between Dec 31th 2005 and May 02nd 2008):
65,00
65 00 45.000
45 000
60,00 Mid price (in R$) 40.000
55,00
50,00 Traded Volume 35.000
(
(15 day moving average in R$M)
y g g $ )
45,00
45 00 30.000
40,00
35,00 25.000
30,00 20.000
25,00
25 00
20,00 15.000
15,00 10.000
Appreciation during the period in US$:
10,00 . Duratex = + 257%
5.000
5 000
5,00 . Ibovespa = + 174%
0,00 0
un-06
un-06
jul-06
set-06
out-06
ov-06
ov-06
un-07
jul-07
jul-07
set-07
out-07
out-07
ov-07
ez-05
an-06
ev-06
mar-06
mar-06
abr-06
mai-06
go-06
go-06
ez-06
an-07
ev-07
ev-07
mar-07
abr-07
mai-07
mai-07
go-07
ez-07
an-08
an-08
ev-08
mar-08
abr-08
abr-08
3-no
28-no
19-no
29-de
13-fe
19-de
5-fe
28-fe
11-de
21-fe
5-ju
27-ju
18-ju
20-ja
12-ja
7-ja
29-ja
8-ag
29-ag
21-ag
20-s
12-s
15-m
4-m
25-m
11-o
25-o
3-o
8-m
29-m
21-m
13-m
18-j
10-j
31-j
20-a
12-a
4-a
28-a
Member of and stock indexes.
24. > Market capitalization (in US$ M)
. I l i of Duratex stock on Ibovespa and IBrX50 indexes
Inclusion f D t t k Ib d IB X50 i d
. Extraordinary dividend worth R$50M
. Primary and secondary Stock issuing R$ 609 M
y y g $
. Stock dividend 1x1
. Adhesion to Bovespa Level 1
. Stock inplit 200 / 1
. Termination of Benefficiary Parts 3.172
. Extraordinary dividend 2.943
. 30% minimum pay out dividend policy
pay-out
1.990
. 80% Tag-Along rights
550 748
173 339
2002 2003 2004 2005 2006 2007 2008*
* as of 02.May.2008
+1.600% during the period
25. > Capital markets
Sell side coverage on Duratex stock:
Sell side brokerage Analys t Phone E-mail
Bras can Corretora Beatriz Battelli (55-21) 3231-3146 bbattelli@ bancobrascan.com.br
Citibank Luis Vallarino (52-55) 1226-0608 lvallarino@ acciv al.com.mx
Credit Suis e
s Marcelo Telles (52-55) 5283-8933 marcelo.telles@ credit-suisse.com
Deuts che Bank Josh Milberg (55-11) 2113-5971 josh.milberg@
josh milberg@ comdb
db.com
Fator Banco Eduardo Pirani Puzziello (55-11) 3049-9478 epuzziello@ fatorcorretora.com.br
Itaú Corretora de Valores Renata Faber (55-11) 5029-4542 renata.faber@ itau.com.br
Link Corretora Andres Kikuchi (55-11) 4504-7290 andres@ linkcorretora.com.br
Merrill Lynch Marcos Assumpção (55-11) 2188-4226 marcos_assumpcao@ ml.com
Santander Banes pa Marcello Milman (55-11) 3012-7530 mmilman@ santanderbanespa.com.br
Socopa Corretora de Daniel Dol (55-11) 3299-2166 daniel@ socopa.com.br
UBS Pactual Edmo Chagas (55-21) 2555-3025 edmo.chagas@ ubs.com
Unibanco Andre Luiz Rocha (55-11) 3584-4330 andreluiz.rocha@ unibanco.com.br
26. > DISCLAIMER
The information contained herein was prepared by Duratex S.A.
(the “Company”) and does not constitute an offering material, to
subscribe for or purchase any of the Company’s securities. This
material contains general information about the Company as of
this date. No representation or warranty, express or implied, is
made concerning, and no reliance should be placed on, the
accuracy, fairness or completeness of the information presented
herein.
The Company can give no assurance that expectations disclosed
in this presentation will be confirmed.
May 13, 2008