2. Competitive Advantages
Wood
• Brand; • Production scale:
• Design; biggest player in Brazil;
• N ti
Nationwide coverage:
id • Lowest wood cost placed at the
market, distribution and technical factories, among all players;
assistance; • Close to the major consumer
j
• Wide product lines aimed to centers;
different segments of consumption: • High degree of verticalization:
high medium and low income;
high, wood, d
• Production scale; coating lines and
• Leadership. resin from year end on;
• Wide product line and standards.
2
3. Competitive Advantages
Wood Division
MDF & Flooring
Agudos - SP
MDP
Itapetininga - SP
100% of timber land located in MDF & Hardboard
São Paulo State. Botucatu - SP
3
4. Competitive Advantages
Metals - São Paulo
Deca Division
Metals & Ceramics - Jundiaí Ceramics Cabo de Sto Agostinho - PE
Ceramics Queimados - RJ
Ceramics São Leopoldo - RS Ceramics Jundiaí - SP
4
5. Favorable Scenario
Civil Construction Industry
Incentive plan for the construction industry: Federal Government
• Increase of the financing limit, through FGTS, from R$ 350.000 to
R$ 500.000;
• Tax exemption for building materials (IPI reduction);
• Construction of 1.000.000 houses;
• Subsidized credit to low income families;
• Program estimated at R$ 34 billion.
5
6. Favorable Scenario
Consumption per capita of panels in Brazil
13,6 13,5
MDP 10,7
11,9
11 9 11,4 11,7
11 7
(in m3 / year)
2003 2004 2005 2006 2007 2008
(Source: ABIPA and IBGE)
10,8 11,3
MDF 9,8
(in m3 / year) 7,6 7,6
5,7
(Source: ABIPA and IBGE) 2003 2004 2005 2006 2007 2008
6
7. Favorable Scenario
Worldwide consumption of panels per capita (in m3 / year)
47
20 17
19
16
8
Europe 46
USA
China
22
13
11
Australia
Brazil
MDF MDP
2007 – EUROPE, 2008 (Projection) – USA, BRAZIL, CHINA AND AUSTRALIA.
Sources: EPF, Abipa and Wikipedia
7
8. Favorable Scenario
Markets Attended
Sales Segments 2008 Construção
Others
46%
21,5%
21 5%
Housing
(directly)
Furniture 44,7%
33,8%
Average construction cycle
6 months 12 months 6 months
8
9. CAPEX
CAPEX (R$ million) Technology update;
673,4
Leadership in segments of activity with high
growth potential and competitive
2.089,9 advantages;
303,5 Integration of processes with focus on
222,3
222 3
172,8 costs savings:
t i
138,9 139,4 136,8
108,4 105,4 89,0 • acquisition of land,
• coating lines and
• resin plant, among others.
09 Low net debt (R$ 542,0 million, equivalent to
00
01
02
03
04
05
06
07
08
1Q
20
20
20
20
20
20
20
20
20
1,44 times EBITDA).
9
10. CAPEX
MDF
Expansion underway at the site of Agudos – SP:
• MDF line: 800.000 m3/year capacity with equipment in finishing
assemby momentum:
- 125% growth over Duratex existing MDF capacity.
g g p y
• Melamine finishing line: 10,2 million m2 capacity;
• Resin plant;
• Acquisition of land and plantation of forest.
10
11. Market Announcement
09.Apr.2009: Discontinuation of the Hardboard operation in Jundiaí
Duratex informs that, in April, it will discontinue its 3 production lines of hardboard located in the
Jundiai (SP) city. These lines have a combined capacity of 150 thousand m3/year and were
installed during the 1950s and 60s being outdated when compared to the other existing lines that
operate with greater operating cost advantages and higher productivity
productivity.
Besides, the geographical location of the production site, in the city of Jundiai, demands higher
costs both from operations and wood supply.
The shutting down momentum coincides with the start-up of a new line located in the city of
Agudos (SP) that should aggregate 800 thousand m3/year of capacity, when operational.
In that sense, the production of thin panels, currently produced in the lines to be discontinued, will
be done in the MDF/HDF/SDF lines located in Agudos and Botucatu (SP) which should generate
(SP),
relevant cost reductions and productivity gains arisen from the state of the art equipment status.
The cash disbursement to discontinue such 3 lines will amount to approximately R$ 8 million as
productivity gains and cost reduction will generate R$ 23 million per yearyear.
The announced measure is part of Duratex strategic process towards improving its competitive
advantages and generating value in its operations.
11
12. Market Announcement
13.Apr.2009: Postponement by indefinite time of the MDP expansion
Duratex,
Duratex a Brazilian leading company within the industrialized wooden boards metal fittings and
boards,
vitreous china segments informs that its management has decided to postpone, indefinitely, the
capital expenditures geared to the MDP (Medium Density Particleboard) expansion, disclosed via a
Material Fact published on May 7, 2008.
This expansion, budgeted at R$ 1,0 billion, with conclusion expected by the second half of 2010,
was already postponed through a Market Announcement dated October 10, 2008. By then, the
decision making was made with the objective of waiting for the world economic crisis outcome so
as to assess the better momentum to continue with the investment thus, preserving the company’s
liquidity.
The decision making behind such announcement was based in the persistence of the uncertainties
related to the extent, duration and intensity of the crisis. Moreover, there is the necessity of keeping
a comfortable financial situation to pass through this momentum sustaining an adequate
performance and profitability levels
levels.
Thus, Duratex management believes that the announced measures reinforces our compromise in
granting the operation’s sustainability with creation of value to shareholders.
12
13. Balanced Financial Structure
2005 2006 2007 2008 1T09
Balance Sheet Highlights:
Cash 234,0
, 574,6
, 752,7
, 598,1
, 442,9
,
Current Assets 726,7 1.138,9 1.355,9 1.321,8 1.127,6
Long-Term Assets 39,1 33,6 64,5 144,4 137,6
Total Assets 1.947,1 2.375,2 2.750,5 3.373,4 3.239,7
Short T
Sh Term Debt D b 151,5
151 5 359,4
359 4 246,2
246 2 435,1
435 1 438,4
438 4
Current Liabilities 318,7 601,0 563,3 832,8 779,4
Long Term Debt 439,6 258,8 424,6 649,4 546,6
Long Term Liabilities
Long-TermLiabilities 565,5
565 5 377,8
377 8 630,0
630 0 808,5
808 5 700,3
700 3
Minority Interest 12,0 0,6 0,6 0,6 0,2
Equity 1.050,9 1.395,8 1.556,5 1.731,5 1.758,5
Risk Ratios:
Current Ratio 2,28 1,90 2,41 1,59 1,45
Equity / Total Assets 54% 59% 57% 51% 54%
Debt / Debt + Equity 36% 31% 30% 39% 36%
Net Debt 357,1 43,6 -81,9 486,4 542,1
Net Debt / Equity 0,34 0,03 -0,05 0,28 0,31
Net Debt / EBITDA 0,98 0,10 -0,15 0,87 1,44 * annualized
13
15. Performance
1Q09 Revenue Sources
Net Revenue Hardboard
15,4%
MDP
12,6%
Metal Fittings
R$ 393,8 M 24,7%
MDF/HDF/SDF/
Laminate
Flooring Vitreous China
30,2% 17,1%
Revenues origination
Domestic Market
91,3%
91 3%
Export Revenues
8,7%
15
16. Performance
Net Revenues in the domestic market
Domestic revenues 1Q09
10,5%
R$ 393,8 M
6,5%
83,0%
Market segments Other
Wholesale 2,4%
Furniture Industry 6,7%
,
Other 4,3% 58,0%
Technical Sales
2,6%
Wood Home Center Retail
58,2% 16,3% 55,0%
41,8%
41 8%
Retail
Builders
30,0% Construction 19,6%
5,10%
16
24. Creating Value (2000 to 2008)
EPS in R$ 1
Acquisition of land and planting of timberland and expansion Deca
MDF Expansion
Resin Plant
MDP Expansion Deca acquisitions
2, 44 * CAGR: +20,5%
MDF Expansion
0,55 1,16
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
* EPS by recurrent income of R$316,8M. By reported income of R$313,8M, the EPS would be R$2,42
EBITDA (* recurrent) CAGR: +13,7%
Dividend / IOC 555,9
555 9*
(in R$ million) CAGR: +22,6%
2007: R$50 million in
110,0 extraordinary dividends
y
199,4
199 4
2004: R$15,3 million in
21,5 extraordinary dividends
2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009 2010 2011 2012
24
25. Disclamer
The information contained herein was prepared by Duratex S A and does not
S.A.
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,
accuracy fairness or completeness of the information presented herein
herein.
The Company can give no assurance that expectations disclosed in this
p
presentation will be confirmed.
12th May 2009
25