2. Duratex S.A.
Public company traded, in stock markets (BOVESPA), since 1951
Number of outstanding shares as of April 30th: 11.782.716.987
Common: 37%
Preferred: 63% (80% tag-along rights)
Others
Itaúsa
19,7% Treasury
85,5%
4,0%
Itaúsa
Common Preferred 24,4%
Foreign
Investors
28,4%
Others Pension Funds
14,5% 23,5%
1
3. Preferred Stock Performance
Duratex’ preferred shares from Dec/03 to May/04, presented a decline in
pricing of 25% as the IBOVESPA devalued by 12%, in the same period.
Share s Trade d Trade d Volume Daily Ave rage
De als
(1,000) (R$ 1,000) Volume (R$ 1,000)
1st Quarter 04 1.120 1.296.300 103.671 1.672,1
2004 1.120 1.296.300 103.671 1.672,1
1st Quarter 03 675 614.400 31.947 525,7
2nd Quarter 03 817 690.300 40.577 662,7
3rd Quarter 03 1.454 1.609.800 99.159 1.502,0
4th Quarter 03 1.740 1.399.400 102.329 1.574,3
2003 4.686 4.313.900 274.012 1.066,2
1Q03 - 1Q04 Var. % 65,9% 111,0% 224,5% 218,1%
2
4. Business Segments
Hardboard Metal Fittings
Particle Board Vitreous China
MDF/HDF/SDF Accessories
Laminate Flooring
Ceiling and Wall Paneling
3
5. CAPEX (in R$M)
Highlights:
Continued expansion works at the Vitreous China Unit II (Jundiaí/SP)
Conclusion of the equipment assembling works for the production of particle
board panels with a “super-thin” surface
Conclusion of the assembling works of a new low pressure coating line
(Botucatu/SP)
Timberland acquisitions in the Botucatu/SP region totaling 978 hectares
CAPEX:
303,0
Jan-May/04: ~R$45M
2004: R$120M (whole year) 172,8
138,9 139,4
2005: R$ 60M 95,0
130,4
74,1 65,4
49,9 45,0
1995 1996 1997 1998 1999 2000 2001 2002 2003 Jan-
May/04
1995-May/04: R$1.2B
4
6. Total Debt & Amortization Schedule in Mar/04 (R$ M)
TOTAL DEBT 578,8 Amortization Schedule
Foreign
Currency 142,2 156,3
100% hedge
96,3
Domestic
65,5
Currency
436,6
221,2
39,5
De bt 2004 2005 2006 2007 2008 &
Be yond
Net Debt / Equity = 39,6%
During the first quarter, there were issued R$130M in Debenture
5
7. Industrial Capacity & Level of Utilization
Jan-May/2004
Hardboard 360.000 m3/year
360.000 m3/year
84,0%
Particle Board 500.000 m3/year
64,0% 500.000 m3/year
MDF/HDF/SDF 78,0% 640.000 m3/year
640.000 m3/year
14,4 M
Me tal Fittings 14,4 M
74,0% pieces/year
pieces/year
3,2 M
Vitre ous China 82,0% 3,2 M
pieces/year
pieces/year
6
8. Performance – Monthly Production
MDF/HDF/SDF - Botucatu Unit (capacity of 400.000 m3/year)
25.000
3
m
22.500
20.000
17.500
15.000
12.500
10.000
7.500
5.000
2.500
0
fe b /0 3 ma r apr ma y j un j ul a ug se p oct nov dec j a n/0 4 fe b ma r apr ma y
2003: 21,5% during the year
Average Level of
Capacity Utilization
2004: 57,8% from January to May 7
9. Exports – 1Q2004
Total exported:
1Q2004: US$13,0 M
+ 32,6%
1Q2003: US$ 9,8 M
Highlights - MDF, Vitreous China and Furniture exports (Inter D+)
MDF/HDF/SDF
DECA
26,2%
DIVISION
7% Laminate
Flo o ring
3,1%
INT ER D+
3,9%
Me tal Fitting s
1,9%
WOOD Hard b o ard
Vitre o us
DIVISION 59,8%
C hina
93% 5,1%
8
10. Exports – 1Q2004
Main Markets
Europe
23%
United States
43% South and
Central
Americ a
11%
Others
23%
9
12. Exports – 1Q2004
Furniture Exports –
Showroom (Jundiaí/SP):
Area: 2.000m2
Active Clients: Holand, Mexico, South Africa and Middle East region
Product Line: 400 items
Main products exported: (50%) living, (25%) youth dormitories and
(25%) dining room
Sales in 2003: US$873K
Sales in 1Q04: US$769K
11
13. Exports – 1Q2004
Vitreous China Exports
Sales in 2003: US$1.952K
Sales Jan-May/2004: US$1.011K
Expects to exhibit its products in fairs in South Africa and Portugal
March/2004 – present at the Kitchen & Bath fair in Chicago
Kitchen & Bath – Chicago Mar/2004 Kitchen & Bath – Chicago Mar/2004 12
14. Net Revenues Breakdown
1Q2004 1Q2003
Laminate Laminate
MDF MDF
Flooring Flooring
Particle 17% 14%
6% Particle 8%
Board Board
12% 14%
Me tal Me tal
Fittings Fittings
24% 24%
Hardboard Hardboard
Vitre ous Vitrous China
30% 29%
China 11%
11%
Wood Division: 65% Wood Division: 65%
Deca Division: 35% Deca Division: 35%
13
15. Consolidated Income Statement (R$ 1.000)
1Q 2004 VA% 1Q 2003 VA% HA%
NET REVENUES 250.290 100% 220.778 100% 13%
COGS (149.871) 60% (122.841) 56%
Depreciation/Amort./Depletion (16.595) (14.066)
GROSS PROFIT 83.824 33% 83.871 38% 0%
Selling Expenses (34.357) (29.482)
General & Administrative Expenses (11.630) (10.368)
Other Operating Results (1.945) (3.685)
INCOME BEFORE FINANCIAL RESULTS 35.892 14% 40.336 18% -11%
Net Financial Result (13.797) (5.821)
Taxes on Financial Operations (1.583) (2.417)
OPERATING INCOME 20.512 8% 32.098 15% -36%
Non Operating Income (277) 405
INCOME BEFORE TAXES 20.235 8% 32.503 15% -38%
Income Tax & Social Contribution (7.320) (8.957)
Statutory Participation (1.598) (2.995)
Minority Participation (10) (42)
NET INCOME 11.307 5% 20.509 9% -45%
14
16. Consolidated Financial Summary (R$M)
2.004 2.003
Jan Feb Mar Quarter Jan Feb Mar Quarter
Shipments
Wood (in m³) 69.048 76.239 95.942 241.229 65.865 60.712 64.386 190.963
Deca (in 1.000 pieces) 1.099 850 1.391 3.340 1.301 1.034 1.028 3.363
Net Revenues 77,2 76,4 96,7 250,3 78,0 72,7 70,1 220,8
Gross Profit 22,4 25,2 36,3 83,8 29,4 27,6 26,8 83,8
EBITDA 13,5 15,9 24,4 53,7 19,8 18,3 17,0 55,1
EBITDA Margin 17,4% 20,8% 25,2% 21,5% 25,4% 25,2% 24,3% 25,0%
Net Income 0,1 3,0 8,2 11,3 12,4 5,8 2,3 20,5
Net Income and EBITDA 2004 Net Income and EBITDA 2003
24,4
12,4
19,8
18,3
8,2
15,9 17,0
5,8
13,4
3,0 2,3
0,1
Jan Feb Mar Jan Feb Mar
15
17. Consolidated Financial Summary (R$M)
1Q04 4Q03 3Q03 2Q03 1Q03
Gross Re ve nue s 328,1 352,7 334,9 286,5 280,5
Ne t Re ve nue s 250,3 279,2 264,4 225,3 220,8
COGS ne t of De pre ciation 149,9 164,1 152,3 135,4 122,8
Gross Margin Ne t of De p. 40,1% 41,2% 42,4% 39,9% 44,4%
De pre ciation 16,6 14,1 13,3 13,5 14,1
Gross Profit 83,8 101,0 98,8 76,4 83,9
Gross Margin 33,5% 36,2% 37,4% 33,9% 38,0%
Ope rating Re sult 35,9 50,3 47,3 28,0 40,3
EBITDA 53,7 65,2 61,3 43,0 55,1
EBITDA Margin 21,5% 23,3% 23,2% 19,1% 25,0%
Ne t Income 11,3 22,5 13,4 7,6 20,5
ROE (annualize d) 5,0% 9,5% 5,9% 3,4% 9,0%
16
18. Financial Performance per Division (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 163,3 100% 87,0 100% 250,3 100%
COGS (98,4) 60% (51,5) 59% (149,9) 60%
Depr/Amort/Depl. (12,0) 7% (4,6) 5% (16,6) 7%
Gros s Profit 52,9 32% 30,9 36% 83,8 33%
EBITDA 1Q 2004 36,3 22% 17,4 20% 53,7 21%
EBITDA 1Q 2003 42,7 30% 12,4 16% 55,1 25%
17
19. Consolidated Operating Cash Flow Statement (R$ 1.000)
1Q04 1Q03
NET INCOME 11.307 20.509
Depreciation/Amortization/Depletion 17.820 14.801
Interest / FX Variation (Accrual) 11.717 820
Provisions / Write-Offs 3.410 4.703
SUB-TOTAL 44.254 40.833
Investments in Working Capital 11.735 (4.007)
OPERATING CASH FLOW 55.989 36.826
18