2. Index
>> Business segments
>> Geographical Location
>> CAPEX
>> Scenario
>> Financial Highlights
>> Capital Markets
>> Disclaimer
2
3. Business segments
Deca Division
Vitreous China;
Metal fittings;
Accessories.
Leadership within the Metals segment having a
prominent position in Vitreous Chinaware.
Possesses the industry´s broader product line
attending the different market segments.
3
4. Business segments
Wood Division
Hardboard;
Wood MDP;
MDF/HDF/SDF;
Laminate Flooring;
Moldings.
Provides finishing materials for the construction
industry and raw materials for the furniture
makers.
Leader within the Brazilian panel making industry
having the most diversified product line.
4
5. Business segments
Forest
Duratex S.A timberland holdings.;
Total timberland area: 120.000 ha, of which 65% planted:
Market value: R$ 1.529 million (US$ 654 million),
Book value: R$ 577 million (US$ 247 million).
Self-sufficiency in woody supply:
Economies of scale;
Strategic access to raw material;
Reduced execution risk.
ISO14.001 and FSC certifications;
Member of CCX (Chicago Climate Exchange).
5
7. Geographical Location
Deca Division
Metals - São Paulo Ceramics Cabo de Sto Agostinho - PE
Metals & Ceramics - Jundiaí
Ceramics Queimados - RJ
Ceramics Jundiaí - SP
Ceramics São Leopoldo - RS
7
8. CAPEX
Highlights
CAPEX 673,4 Technology update;
( R$ million)
Leadership in segments of activity with high
growth potential and competitive
2.000,9 advantages;
303,5 Verticalisation of processes with focus on
222,3 costs savings:
172,8 • acquisition of land,
138,9 139,4 136,8
108,4 105,4
• coating lines and
• resin plant, among others.
2000 2001 2002 2003 2004 2005 2006 2007 2008
Low net debt (R$ 486,3 million, equivalent to
0,87 times EBITDA).
8
9. CAPEX
Duratex industrial output capacity growth
Utilization rate
(capacity in ‘000 m )3
Wood Utilization rate
(capacity in ‘000 items)
MDF MDP V.China Metal
89%
Hardboard 87%
82% 83%
96% 82%
92% 92% 76% 77%
90% 74%
85% 69%
81% 6.200 **
70% 69% 4.520
4.200 4.200 3.800 3.800
60%
1.440 * 3.300
3.300 3.200
2.580
640 640 640 640 640
640
200 220 240 16.800
15.600
500 500 500 500 500 500 500 13.200 14.400 14.400 14.400 14.400 14.400 14.400
320 340 360 12.000
360 360 360 360 360 360 360 360 360 360
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
*Start-up of the new MDF line in Agudos (SP) set to Apr/09 with ** Queimados Unit remains disabled. Its entry will depend on the
capacity of 800,000 m³ / year and a gradual ramp-up. performance of the market. Its capacity is 840,000 pieces per
year.
9
10. CAPEX
MDF Project:
• MDF line: 800.000 m3/year capacity and estimated start-up by Apr/2009 :
• 125% growth over Duratex existing MDF capacity.
• Melamine finishing line: 10,2 million m2 capacity;
• Resin plant;
• Timberland.
10
11. CAPEX
Metal Fittings:
• Capacity increase: 4,8million pieces / year or +33%;
• Completion of expansions: 2010.
11
12. CAPEX
Vitreous China:
Two acquisitions worth R$60 million each :
1 - Ideal Standard: two plants (Jundiaí/SP and Queimados/RJ) with
a combined capacity of 1.800.000 items / year.
2 - Cerâmica Monte Carlo: one plant in Cabo de Sto Agostinho/PE
with a capacity of 1.440.000 items / year.
12
14. Scenario
Availability of credit :
Financing via SBPE (R$ million) Savings account deposits (R$ million) 270.400
235.300
30.048 187.940 + R$83 bi
168.730
158.260
143.060
% 18.283 139.640
R: 30,2
CAG
,6%
9.340 CAGR: 11
4.852
1.769 2.218 3.002
2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 2008
Source: BACEN and ABECIP Source: BACEN
Financing via FGTS (R$ million) Housing deficit: 7,8 M units (Ernst Young, 08);
10.540
2004: regulatory framework improvement:
expansion of credit and
6.999 6.909
5.533 extension of financing terms.
3.821 %
2, 5
3.742 3.892 2009: government package to be announced to stimulate
+ 5 the sector, including:
financing limit increase through FGTS
2002 2003 2004 2005 2006 2007 2008 from R$350 thousand to R$ 500 thousand and
Source: CBIC e CEF
tax benefits for building materials.
14
15. Scenario
Real Estate Launchings
New launchings in the Sao Paulo metro area 62.065 61.898
%
,7
78
+
34.938 33.682 34.727
31.545
28.192
2002 2003 2004 2005 2006 2007 2008 Source: Embraesp
294.863
Units Financed (construction + acquisition)
193.547
CAGR: 47,4% + 184 Kunits
111.296
53.434 59.873
28.790 36.376
2002 2003 2004 2005 2006 2007 2008
Source: BACEN
15
16. Scenario
Makets attended
Sales Segments 2008 Construção
Construção
Others 46% 46%
20%
Housing
(directly)
Furniture 47%
33%
l
ti on
tri
ca g ing er
Average construction cycle
rec c hi n sh ov s, n d g
ee le fi nis ini nd rie re a elin
t on dE tF a o
r oj
ec ati sto
n
an ick
Li gh sh e ss nitu od
or g c Th Ke
y cc Fur em
P
orp Fla a uli A R
Inc dr
Hy
6 months 12 months 6 months
16
18. Financial Highlights
Debt
Debt profile
Domestic Foreign
Currency R$ 1.084,4 M Currency 100% Hedged
47% 53%
435
Debt amortization schedule 401
(in R$ million)
Short-term
40%
79
27 36 33
35 39
Long-term
60%
2009 2010 2011 2012 2013 2014 2015 2016 and
2016 e
after
após
18
19. Financial Highlights
Revenues Breakdown in 2008
Net Revenue Hardboard
17,0%
MDP
14,3%
Metal Fittings
R$ 1.913,6 M 22,6%
MDF/HDF/SDF/
Laminate
Flooring Vitreous China
32,6% 13,5%
Revenues origination
Domestic Market
90,6%
Export Revenues
9,4%
19
20. Financial Highlights
Net Revenues in the domestic market
Domestic revenues
9,4%
R$ 1.733,7 M
5,2%
85,3%
Market segments Other
Wholesale 2,2%
Industry 6,8%
Other 3,8% 51,9%
Technical Sales Wood Home Center Retail
3,2% 62,1% 17,0% 54,4%
37,9%
Resale
24,9% Construction Builders 19,6%
16,2%
20
27. Capital Markets
Positive track record
MDF Expansion
EPS in R$ 1
Acquisition of land and planting of timberland Resin Plant
and expansion Deca
Deca acquisitions CAGR: +18,1%
MDP Expansion
Laminated flooring 2, 57 *
st
1 MDF plant in Brazil 0,4 %
MDF Expansion 1,16
G R: 3
CA
0,25
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
* EPS for Net Income of R$333,9M. By Law 11.638, Net Income of R$313,8M, EPS would be R$2,42.
EBITDA
Normal Dividends (R$ milion) 559,4 CAGR: +16,0%
2007: R$50 million in
extraordinary dividends
2004: R$15,3 million in 110,0 CAGR: +21,9%
extraordinary dividends
70,3
6,9
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009 2010 2011 2012
27
28. Capital Markets
Major groups of shareholders as of dec/2008
Total Capital
ON +PN Common Stock
ON PN
Preferred Stock
41% 88,5% 8% 42%
3%
25%
2%
6% 11,5% 37% 10%
26%
# of outstanding shares:
129.695.415 53.555.963 76.139.452
Itaúsa Foreign Investors
Local Pension Funds Other Local Investors
Treasury Stock
28
29. Disclaimer
The information contained herein was prepared by Duratex S.A. and does not
constitute an offering material, to subscribe for or purchase any of the
Company’s securities. This material brings general information about the
Company and markets 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.
March 2009