Presentation - 3rd Quarter 2007

1. www.duratex.com.br
08.Nov.2007
1

2. Capital Markets
Business Segments
Housing Sector
Panel Making Sector
Capital Expenditures Plan
Performance
Competitive Advantages
2

3. Capital Markets
Shareholding Structure:
Total outstanding shares: 129,7M
• PN: 76,1M,
• ON: 53,6M.
Shareholder structure (as of Sep / 2007):
Others
Others Itaúsa 22%
30% 8%
Pension
Funds
5%
Pension
PN ON + PN Itaúsa
42%
Funds
9%
Foreign Inv. Foreign Inv.
53% 31%
3

4. Capital Markets
Corporate Governance
> News:
Distribution of an extraordinary dividend (R$50 million);
Creation of a Securities Trading Committee;
Adoption of a Securities Trading Policy;
Adhesion to the ABRASCA Manual;
Creation of the Environment, Social and Cultural Sustainability
Committee;
Establishment of an Environment Policy;
Establishment of a Code of Ethics and Conduct.
4

5. Capital Markets
Accrual Dividends (R$ million)
> Pay-out ratio:
40,0% 46,5% 33,8% 34,0% 48,2% **
155,2
2%
10
50,0
+
76,9
52,6 *
58,1
15,3 46,3
25,7 52,6
42,8
2003 2004 2005 2006 2007
Extraordinary Dividend First semester annualized
Accrual dividend / Interest on Capital * * Net Income 2007e: 9 months annualized
5

6. Capital Markets
Corporate Governance
> Ongoing actions:
80% Tag- Along rights to the PN stockholders;
30% differentiated Dividend Policy;
Bovespa Corporate Governance Level I;
Election of an independent Board member.
6

7. Capital Markets
Stock Performance:
70,00 40.000
60,00 Stock appreciation during the period: +292% 35.000
(dec / 2005 - Oct / 2007) 30.000
50,00
25.000
40,00
20.000
30,00
15.000
20,00 10.000
10,00 5.000
0,00 0
dez-05 fev-06 abr-06 jun-06 ago-06 out-06 dez-06 fev-07 abr-07 jun-07 ago-07 out-07
dec-05 feb-06 apr-06 jun-06 aug-06 oct-06 dec-06 feb-07 apr-07 jun-07 aug-07 oct-07
Quotation (R$) Traded volume (15 day moving average in R$M)
Increased stock liquidity;
Daily average trading volume:
• in 2006: R$ 7,6 million,
+ 240%
• in 2007: R$ 25,9 million (jan to oct / 2007).
Included in important stock indexes: and 7

8. Capital Markets
Duratex Coverage:
Duratex coverage:
• until Sep / 2006: 5 institutions:
> Itaú, Credit Suisse, Santander, UBS Pactual and Socopa.
• in Sep / 2007: 11 institutions:
> The before mentioned plus: Merrill Lynch, Deutsche Bank,
Unibanco, Fator, Brascan and Link Corretora.
8

9. Capital Markets
Business Segments
Housing Sector
Panel Making Sector
Capital Expenditures Plan
Performance
Competitive Advantages
9

10. Business Segments
DECA DIVISION
Metal Fittings
Vitreous China
Accessories
Leadership within the Metals segment having a
prominent position in Vitreous China.
Possesses the broader product line attending the
different market segments.
10

11. Business Segments
WOOD DIVISION
Hardboard
MDP
MDF/HDF/SDF
Laminate Flooring
Leadership within the Brazilian
panel making industry having the
most diverse product line.
11

12. Business Segments
Timberland total area: 110.000 ha;
Self-sufficiency in wood supply;
ISO14.001 and FSC certified;
Genetic improvement:
• replication of the most productive trees;
Strengthening of the corporative image along with a possible
economic gain:
• development of a project to quantify the amount of CO2
extracted from the environment,
• joining the CCX (Chicago Climate Exchange) project in
progress. 12

13. Average distance between the timberland and plants:
Average freight cost per m3:
Average timberland productivity (in :
13

14. Business Segments
Revenues Breakdown (2007):
Housing
(direct)
46%
Housing
R$1,2 billion (indirect)
35%
Others
19%
Segments Attended
14

15. Business Segments
Revenues within the Domestic Mkt.
(Jan-Sep/2007)
Others
4%
Retail Furniture
27% Industry 6%
58%
WOOD 3%
Technical
Sales 91%
4%
Housing
7%
Others Wholesale
2% 9%
Retail
Housing 14%
16%
55%
9%
DECA
Home
Center 77%
18%
15

16. Capital Markets
Business Segments
Housing Sector
Panel Making Sector
Capital Expenditures Plan
Performance
Competitive Advantages
16

17. Housing
Macro Scenario:
Improvement of the legal framework
Segregation of the building under
construction’s assets from the
constructors’ balance sheet; + Launchings
Deed of trust; + Credit
Easining of the credit access and + Term
increase of it:
• FGTS to real estate up to R$350 K.
Companies from the sector positioned to grow
About 20 IPO’s since 2005:
Primary issuing worth approximately R$ 13,0 billion. 17

18. Housing
Macro Scenario:
Housing deficit (in millions of residencies)
7,2
6,7
5,4
Source: Fundação João Pinheiro
1991 2000 2005
Interest rate and Civil Construction GDP
22,00%
19,00%
18,50%
15,75%
17,50% 17,25% 13,25%
11,25%
7,9%
5,7% SELIC rate
4,5%
2,1% 1,3% C. Constr. GDP
2000 2001 2002 2003 2004 2005 2006 2007*
-2,6% -2,5%
* 2007 estimated:
-8,6% • SELIC: mkt. consensus
• C. Constr. GDP: IPEA 18

19. Housing
Total Real Estate Financing / GDP:
BRAZIL
19

20. Housing
Macro Scenario:
Housing financing via savings account (in R$ billion)
15,0
9,5
4,6
2,2 3,0
2003 2004 2005 2006 2007 Source: ABECIP
Release of new units
10,9 bi
9,8 bi
7,8 bi
6,8 bi
28.600
24.915 25.689
22.550 VGV
Launchings
may/06 to Source: EMBRAESP
2004 2005 2006 apr/07 São Paulo city 20

21. Housing
Average Construction Cycle
s) /
tal ure
n c tr
ic Me r nit
t io Ele an
d /F u
ere
c
nd
g
hin hing ware er es
ati on e a is d ov sori
t rpor on li c r e fin nis amic an ces eling
c st u k Fi r h
roje Inco a l e F l ag dra tructu
y s T hic e eys Ac mo d
P S H a (C K
Re
in fr
12 months 5 months 3 months 21

22. Housing
Diversified Product Mix
> Type of real estate:
C (economic) B A AA (premium)
Description:
• Constructor: MRV
• Value: R$ 66.558 Description:
Description:
• Area: 42 m2 • Constructor: Ecolife
• Constructor: Tecnisa
• Total # of units: 296 • Value: R$ 198.200
• Value: R$ 449.049
• Deca Products: R$579,00 • Area: 78 m2
• Area: 130 m2
• Total # of units: 198
• Total # units: 52
• Deca Products: R$1.655,00
• Deca Products: R$7.936,00
Description:
• Constructor: Cyrela
• Value: R$ 3.242.400
• Area: 607 m2
• Total # of units: 48
• Deca Products: R$41.822,00
22

23. Housing
Economic Segment:
Greater growth potential
Strategy to grow the product lines aimed to this market segment;
• example: Max Line released on August, 2007;
• complete line for bathrooms,kitchen and laundry;
• revenues of the Max Line surpassed the commercial area initial
expectative in more than 5 times.
23

24. Capital Markets
Business Segments
Housing Sector
Panel Making Sector
Capital Expenditures Plan
Performance
Competitive Advantages
24

25. Panel Making Segment
Brazilian Scenario (Furniture Makers)
Industry:
• 14,9 thousand companies in Brazil,
• characteristics: small and medium sized family owned companies,
• regional range,
• absorbs about 60% of the fabricated panels;
Main furniture centers (7):
• Bento Gonçalves (RS), DF
• São Bento do Sul (SC), MG
• Arapongas (PR), ES
SP
• Grande São Paulo (SP),
PR
• Noroeste do Estado de SP (SP),
SC
• Ubá (MG),
RS
• Linhares (ES).
Furniture centers 25

26. Panel Making Segment
MDF: Domestic Market Demand
(in ‘000 m3)
4.000 3.680
Source: ABIPA / SECEX / DURATEX
3.360
3.546
3.000 2.772
2.215 2.271
2.005
2.000 1.871 1.846
1.641
2.027
1.326
811 924
1.000
+ 27%
CAGR
389
0
2000 2001 2002 2003 2004 2005 2006 2007* 2008 2009 2010 2011
Supply Demand Estimated 15%py** growth rate
* 2007: annualized ** MDF growth between 2000 and 2007e = 27% py
GDP growth between 2000 and 2007e = 3,2%py
MDF / GDP = 8,4 x
MDF estimated demand between 2007 and 2011 = 3,75 x GDP (4%) =15% py 26

27. Capital Markets
Business Segments
Housing Sector
Panel Making Sector
Capital Expenditures Plan
Performance
Competitive Advantages
27

28. CAPEX
Plan for the 2007 – 2009 Period:
Wood Division: R$630 million (Agudos / SP)
MDF: 800.000 m3 capacity
growth over existing capacity: + 125%;
Low Pressure Coating Line: 8.500.000 m2 / year capacity
growth over existing capacity: + 35%;;
Land: 18.500 hectares in the region.
Deca Division: R$200 million (São Paulo and Jundiaí/SP)
Metal Fittings: + 400.000 items / month,
growth over existing capacity: + 33%;;
Vitreous China: + 140.000 items / month,
growth over existing capacity: + 44%.
Corporative: ERP system worth R$12,7 million
Software supplier: SAP,
Hardware: IBM Risk,
Implementation consultancy: CPM Braxis. 28

29. Capital Markets
Business Segments
Housing Sector
Panel Making Sector
Capital Expenditures Plan
Performance
Competitive Advantages
29

30. Performance
Nominal industrial capacity and
utilization rate
JAN – SEP / 2007
Hardboard 99% 360.000 m3/year
360.000 m3/year
MDP 83% 500.000 m3/year
500.000 m3/year
MDF/HDF/SDF 97% 640.000 m3/year
640.000 m3/year
14.400 K
14.400 K
Metal Fittings 85% items/year
items/year
3.800 K
3.800 K
Vitreous China 96% items/year
items/year
30

31. Performance
+12% 1.211
30,8%
34,2%
1.078
+24% 414
333
2006 2007 2006 2007
22,5%
18,3%
1.545
1.342
+50% 241
161
2006 2007 2006 2007
31

32. Performance
113,4 19,0
414,2
(31,8) (18,9)
332,6
EBITDA Revenues Revenues Variable Fixed EBITDA
sep/06 (volume) (price/mix) Cost Expense sep/07
32

33. Performance
3Q2007 2Q2007 3Q2006 Y-o-Y Q-o-Q
Shipped Volumes
3
Wood (in m ) 330.488 343.030 333.326 -0,9% -3,7%
Deca (in '000 items) 4.014 3.859 3.654 9,9% 4,0%
Net Revenues 429,0 425,2 399,8 7,3% 0,9%
Wood 285,2 281,1 270,6 5,4% 1,5%
Deca 143,8 144,1 129,2 11,3% -0,2%
Gross Margin 43,5% 46,0% 45,4%
EBITDA 145,8 147,6 130,8 11,5% -1,2%
EBITDA Margin 34,0% 34,7% 32,7%
Net Income 89,2 77,6 70,2 27,1% 14,9%
ROE (annualized quarter) 25,2% 22,9% 22,6%
33

34. Performance
32,7% 34,0%
30,7%
27,0%
2004 2005 2006 2007 2004 2005 2006 2007
22,6% 25,2%
18,8% 1.545
13,4% 1.342
89 994 1.035
70
44
33
2004 2005 2006 2007 2004 2005 2006 2007 34

35. Performance
1.621 30,7% 33,3%
1.489 28,5%
1.271
540
% 458
GR : +13 363
CA +22%
CAGR:
2005 2006 2007*
2005 2006 2007*
18,5% 20,9%
1.545
13,4% 1.396
% 1.051
CA GR: +50
307
226
137
2005 2006 2007* 2005 2006 2007 35

36. Performance
Wood
37,8%
37,0% 38,5% 38,4% 35,3%
31,6% 31,6%
28,0%
2004 2005 2006 2007 2004 2005 2006 2007*
36

37. Performance
23,3% 21,4% 24,6%
24,6% 25,3% 17,1%
20,7%
16,8%
2004 2005 2006 2007 2004 2005 2006 2007*
37

38. Capital Markets
Business Segments
Housing Sector
Panel Making Sector
Capital Expenditures Plan
Performance
Competitive Advantages
38

39. Competitive Advantages
Market compound Competitive positioning
broad product line fit to the different proximity to the consuming markets;
market segments; leading brands;
leadership within premium markets; capital structure fit to grow:
partnership with clients; • net debt = R$13,9 million;
countrywide presence; positive track record;
broad technical assistance network. access to capital markets.
Low cost producer
economies of scale;
+ Management
low turnover;
coating lines (better selling mix); committed with Company
self sufficient in wood supply; growth (variable compensation);
timberland at the shortest Corporate Governance
average logging distance. improvement.
Business Sustainability with Creation of Value
39

40. www.duratex.com.br
08.Nov.2007
40