Duratex - 3rd Quarter 2009

1

CORPORATE PRESENTATION

11 November 2009

2

New Duratex Corporate Governance Capital Markets Deca DivisionWood Division Association Highlights Favorable Scenario Duratex Momentum Disclaimer Annex

IndexIndex

3

Duratex and Satipel Association

NewNew DuratexDuratex

22.Jun.09: Signature of the Intention Protocol of Association

31.Aug.09: Shareholders’ meetings approve the association

• Election of the Board of Directors’ members

• Election of the Executive Directors

08.Oct.09 new ticker: DTEX3

• Major stock indexes in which the stock is included: Ibovespa, ISE and MSCI

4

Administration

* Independent members (33%)

CHAIRMANSalo Davi Seibel

VICE CHAIRMENAlfredo Egydio Arruda Villela Filho and Ricardo Egydio Setúbal

BOARD MEMBERSAlcides Lopes Tápias*, Hélio Seibel, Paulo Setúbal, Pedro Parente*,

Rodolfo Villela Marino and Rogério Ziviani*

BOARD OF DIRECTORS

SUBSTITUTE MEMBERSAndréa Seibel, Olavo Egydio Setúbal Jr. and Ricardo Villela Marino

EXECUTIVE DIRECTORS

CEOHenri Penchas

Corporate GovernanceCorporate Governance

5

Management

Corporate GovernanceCorporate Governance

04.Nov.09: Board of Directors’ Meeting approves the creation of 4 Committees: Human Resources Committee:

Remuneration Recruitment and career Succession

Governance and Nomination Committee: Governance model Evaluation of the Board of Directors and CEO

Risks Committee: Debt Policy Risks control Internal controls

Sustainability Committee: Define and promote the new Sustainability Mission and Vision

6

40%20%

2%

21%17%

Major groups of shareholders as of sep/09:

458.362.776 (1)

Capital stock (shares)(shares)

Other Local Investors

Itaúsa Group and Families

Foreign Investors

Local Pension Funds

Ligna Group and Families

Corporate Structure

Capital MarketsCapital Markets

DTEX3

(1) Treasury stock: 463.200 shares

7

Foreign Investors

Oceania

Europe

South and Central America(-Brazil)

North America Asia

Africa45,5%

7,3%

0,9%

33,1%

2,0%

11,2%

Capital MarketsCapital Markets

8

-

2,00

4,00

6,00

8,00

10,00

12,00

14,00

19-jun 13-jul 3-aug 24-aug 15-sep 6-oct 28-oct-

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

Positive Market Reaction

IBOVESPA

19.Jun.2009 06.Nov.2009 Var %

Duratex 3.033,4 5.824,5 92%

Ibovespa 51.373,8 64.466,1 25%

Comparative Valuation

DTEX3

Quotation

Stock Volume

30.00035.00040.00045.00050.00055.00060.00065.00070.00075.00080.000

19-jun 13-jul 3-aug 24-aug 15-sep 6-oct 28-oct

* Market Value in R$ million

*

Capital MarketsCapital Markets

9

2009

2008

2007

2006

2005

2004

IPO Novo Mercado

Constant Improvement

Sustainability Oriented Management

Dividend Policy: 30% minimum pay-out. 80% Tag Along

Joined Nível I of Bovespa

Primary and Secondary stock offering 100% stock dividend

Negotiation Committee Ethics and Conduct XCode Joined the Chicago XClimate Exchange Founder Member of the XGreen Building Council XBrazil

Inclusion of stock in Sustainability Index of Bovespa Joined Manual

Abrasca Board of Directors

Bylaws. Reception and

Handling of Complaints Policy Punishment and

Eradication of Illegal Acts Policy Corporate

Governance Policy Supply of Goods

and Services Policy

Joined Novo Mercado Only ON stock

1 stock = 1 vote 100% Tag Along Minimum Dividend Policy:

30% minimum pay-out 5 years lock-up to controllers Minimum Free-float of 40% Board of Directors:

3 independent members Creation of New Committees

= Creation of Value

Capital MarketsCapital Markets

10

Brand:

Design:

Production Scale:

• 7.2 million items/year of chinaware in 05 units: 02 in SP, 01 in RS, 01 in PE and 01 in RJ

• 15.8 million items/year of metal fittings, in 02 units (SP)

• 48 product lines aimed to luxury, medium and economic segments

Sales National Coverage:

• Market, distribution

• Extensive after-sales support:

• Technical support through 246 service locations

Brand Power and Products Diversity

Deca DivisionDeca Division

11

Brand Power and Products Diversity – High End Segment

Deca DivisionDeca Division

12

Brand Power and Products Diversity – Mid and Low End Segments

Deca DivisionDeca Division

13

Deca DivisionDeca Division

CeramicsSão Leopoldo - RS

Cabo de Santo Agostinho - PE

Queimados - RJ

São Paulo - SPJundiaí - SP

Buenos Aires - ARG

Metals

Geographical Location

13

14

5,1

6,2

7,6

10,0

12,0

13,0

28,0

29,5

7,0

7,2

7th Largest Manufacturer of Vitreous Chinaware Worldwide

Metal Fittings segment among the 10 largest worldwide

(Capacity in ‘000 items/year)

Gains of Scale

Source: Duratex’s estimate

Deca DivisionDeca Division

15

89%

94%

1 1 ,0%

6 ,0%

VitreousChina

MetalFittings

7.200.000 items/year7.200.000 items/year

15.800.000 items/year15.800.000 items/year

(1)

(2)

(1) Capacity being expanded to 18 million items/year. By the end of 2010. (2) Considering the site of Queimados, RJ, with the capacity of 70 million items/year, which is not running.

DecaDeca DivisionDivisionInstalled Capacity and Occupancy Rate 3Q09

16

Taquari

Itapetininga

Botucatu

Agudos

Uberaba

Wood DivisionWood Division

HardBoard

MDP

MDF

Forests

Geographical Location

16

17

3.300

3.700

3.910

5.050

5.400

5.450

5.550

6.550

10.110

12.500

+

8th Largest Panels Company Worldwide

Source: Duratex’s estimate(Capacity in ‘000 m³/year)

Gains of Scale

(1) OSB panels mainly

(1)

Wood DivisionWood Division

(1)

18

1.800

1.900

210

3,9 million m3/year

Complementary Products

(capacity in ‘000 m3/year)

500

1.450

1.400

350

Hardboard

MDP

MDF

Wood DivisionWood Division

19

4.130

1.800

4.760

1.900

410

210 3.910

9.300

MDF MDP Hardboard

Industry - total

Complementary Products

Source: Duratex’s estimate(Capacity in ‘000 m³/year)

Wood DivisionWood Division

20

44%

54%

95%

5 6 ,0%

4 6 ,0%

5 ,0%

MDF

MDP

Hardboard 210.000 m3/year210.000 m3/year

1.900.000 m³/year1.900.000 m³/year

1.800.000 m³/year1.800.000 m³/year

(1)

Wood DivisionWood DivisionInstalled Capacity and Occupancy Rate 3Q09

(1) Resulting capacity after the shutting down of the Jundiaí hardboard unit. Previous capacity: 360.000 m³/year. (2) MDP/MDF: utilization rate over nominal capacity. Not considered the technical constrains during ramp-up.

(2)

(2)

21

Land with planted forest: 209 thousand hectares• 324 farms in SP, MG and RS regions• 19% of the forests with Pine • 2014 100% Eucalyptus

250 million planted trees• Carbon free• 16.300 hectares of planted area per year• 52 trees planted per minute

5.100.000 m3 of annual wood production• Harvest between 6 and 7 years• Low distance between forests and sites• Increasing the productivity• Conservation of native forests• Certified forests (FSC and ISO14.001)

Wood DivisionWood DivisionSelf-sufficiency of Raw Material

MG SP

RS

Timberland Productivity1960 2010

22

Wood DivisionWood DivisionSustainable Operation

RESEARCH TOWER Research Project

• 10 Brazilian Companies involved Supervision

• CIRAD (French Center for Agricultural Research)

• IPEF (Forest Research Institute) of ESALQ

• NCSU (North Caroline State University)

Goals: research the balance of carbon, water and nutrients through the cycle of an eucalyptus forest

23

AssociationAssociationDuratex and Satipel

To define and drive the key aspects of integration:

Integration Committee

GT1 – Timberland affairs GT8 - Infrastructure

GT2 – Commercial GT9 - Legal

GT3 – Controllership GT10 – Logistics

GT4 – Finance GT11 – Marketing / Communication

GT5 – Private Pension Plan GT12 - Supply

GT6 – People Management GT13 - Technology

GT7 – Industrial GT14 - Corporate

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Creation of Value Sustainable Operation

Gains of Scale

Self-sufficiency of raw material

Complementarities of the

Operations

Geographical Diversification

Brand Awareness and Products Diversity

AssociationAssociation

25

Association Synergies

Better Practices

60%R$ 95,8M/yearGains of

Scale 22%

Overlap 18%

Capture of Synergies

Total of SynergiesOther SynergiesForest Synergies

82%

97%

55%67%

78%87% 93%

100%

100% 100%100%

90%94%

60%

70%

11% 33%

1%

100%100% 100%100%

19%

100%

2009 2010 2011 2012 2013 2014 2015 2016

AssociationAssociation

26

Extraordinary Provisions

Non Cash 31,1%

Contingent Cash 41,8%

Cash already disbursed

27,1%

AssociationAssociation

18,3 Cash already disbursed28,2 Cash contingent21,0 Non cash

R$ million

Adoption of better practices

More conservatives criteria for constituting fiscal provisions

Geographical location analysis of plants with regard to consuming markets

Optimization of logistics costs

Gains of scale

Reduction of overlaping structures

Financial and legal advice

Audit and publications

Total

3Q09 Provision HighlightsR$ million

28,1Equalization of criteria:

67,5

28,8

10,6

New operation configuration:

Trasaction costs:

27

109,085,1 64,0

54,1 68,1

3Q08 4Q08 1Q09 2Q09 3Q09

138,4 135,8196,2193,8 154,6

29,6% 30,9%26,9% 25,6% 26,7%

3Q08 4Q08 1Q09 2Q09 3Q09

2.252,6 2.286,0 2.314,72.320,32.226,0

19,9% 15,2% 11,8%9,4%11,3%

3Q08 4Q08 1Q09 2Q09 3Q09

Equity (R$ million) & ROE (%)

515,0 579,4653,8 635,4529,9

34,4%36,5%36,8%

38,6%40,3%

3Q08 4Q08 1Q09 2Q09 3Q09

Net.Rev.(R$ million) & Gross Margin (%)

Net Income (R$ million)

EBITDA (R$ million) & Margin (%)

HighlightsHighlightsRecurrent Financial Performance (pro forma)

+13,8%

+25,9%

28

MDF/HDF/SDF/Laminate Flooring

29,2%

MDP26,2%

Hardboard 10,2%

Metal Fitting18,8%

Components 1,2%

Domestic Market93,3% Foreign Market

6,7%

Consolidated Net Revenue 2009

Revenue Geographical Origination 2009

R$ 1.624,3 M

Vitreous China14,4%

HighlightsHighlightsRevenue Origination

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Construction3,3%

Resale22,9%

Other 6,4%

Industry67,4%

Retail56,0%

Construction18,5%

Home Center 14,1%

Wholesale9,0%

Other2,4%

Wood

By Geographical Region

Revenue Segments

65,6%65,6% 34,4%34,4%

84,5%

10,8%

4,7%

Net Revenue in the Domestic Market 3Q09HighlightsHighlights

30

Recurrent Financial Performance (pro forma)

Net.Rev.(R$ million) & Gross Margin (%) EBITDA (R$ million) & Margin (%)

462,1 447,8350,4 355,4 380,0

39,5% 36,5% 35,1%30,3%

37,5%

3Q08 4Q08 1Q09 2Q09 3Q09

142,2 146,8100,8 93,6 100,6

30,8%28,8%

26,3% 26,5%

32,8%

3Q08 4Q08 1Q09 2Q09 3Q09

Shipments (in ‘000 m3)

549,8 519,4416,9

464,8533,2

3Q08 4Q08 1Q09 2Q09 3Q09

HighlightsHighlights

+14,7%

+28,0%

(1)

(1) Depreciation, ramp-up of the new plants and pricing

31

Net.Rev.(R$ million) & Gross Margin (%) EBITDA (R$ million) & Margin (%)

191,7

164,5174,5

187,7199,4

42,2%

37,5%39,4%

42,4%41,3%

3Q08 4Q08 1Q09 2Q09 3Q09

51,6 49,437,6 42,2

54,0

26,9%

22,9%24,2%

27,1%26,3%

3Q08 4Q08 1Q09 2Q09 3Q09

Shipments (in ‘000 items)

4.9284.239 4.7754.682

5.310

3Q08 4Q08 1Q09 2Q09 3Q09

Recurrent Financial PerformanceHighlightsHighlights

25,3%

+11,2%

27,9%14,3%

32

Dec-08 Jun-09 Sep-09Balance Sheet Highlights:Cash 716,8 458,8 336,9 Total Assets 4.500,9 4.431,9 4.354,4 Short Term Debt 498,7 586,4 667,6 Long Term Debt 1.011,8 817,0 691,1 Total Debt 1.510,5 1.403,4 1.358,7 Equity 2.252,6 2.320,3 2.314,7 Revenue 2.445,2 1.044,9 1.624,3 EBITDA (recurrent) 744,1 274,2 428,8 Net Income (recurrent) 375,3 118,1 186,2 Risk Ratios:Current Ratio 1,6 1,2 1,2 Equity / Total Assets 50% 52% 53%Debt / Debt + Equity 40% 38% 37%Net Debt 793,7 944,6 1.021,9 Net Debt / Equity 35% 41% 44%Net Debt / EBITDA 1,1 1,4 1,6

Pro Forma

Balanced Financial StructureHighlightsHighlights

(1) jun/09 and sep/09: last 12 months recurrent EBITDA

(1)

33

dec/03

jun/04dec

/04jun/05dec

/05jun/06dec

/06jun/07dec

/07jun/08dec

/08jun/09

sep-05

jan-06

may-06

sep-06

jan-07

may-07

sep-07

jan-08

may-08

sep-08

jan-09

may-09

sep-09

dec-03

may-04

oct-04

mar-05

aug-05

jan-06

jun-06nov-0

6ap

r-07

sep-07

feb-08

jul-08

dec-08

may-09

oct-09

Interest Rate

Unemployment Rate (%)

sep/097,7

8,75

Source: BACEN Source: FGV

Consumer Confidence (base 100)

Job Creation (‘000)

Source: BACEN

sep/09253

sep/08283

sep/07251

dec/06-317

dec/07-319

dec/08-656

Source: CAGED

oct/09113,616,5

10,9

100,0

sep/09

oct/09

Improvement of Macroeconomic IndicatorsFavorable ScenarioFavorable Scenario

Source: BACEN

33

34

4,8% 4,9% 5,0%

4,0%

5,3%

3,5%

4,6%4,8%

ItauUnibanco

Banco Fator CreditSuisse

PesquisaFebraban

Santander MerrillLynch

FMI Averageexpectation

1,6% 1,7% 1,6% 1,8% 1,9%

-0,8%-3,6%

4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

2,3%2,9%

5,4% 5,1%

0,2%

2005 2006 2007 2008 2009forecast

Year end GDPQuarterly GDP

2010 GDP Expectations

3,8% 3,7% 3,4% 3,4% 3,6% 3,6% 3,9%4,5% 4,8%

3,4%

jan/09

feb/09

mar/09

apr/0

9may

/09jun/09jul/0

9au

g/09se

p/09oct/

09

Evolution of the 2010 GDP Expectation (Focus Report)

(sep/09) (sep/09) (sep/09) (sep/09) (oct/09) (oct/09) (oct/09)

Favorable ScenarioFavorable Scenario

Source: BACEN Source: BACEN

Source: BACEN

Improvement of Macroeconomic Indicators

35dec-07 mar-08 jun-08 sep-08 dec-08 mar-09 jun-09

268.521 282.442 299.346 315.507340.512 348.637

0

1 0 0 0 0 0

2 0 0 0 0 0

3 0 0 0 0 0

4 0 0 0 0 0

2004 2005 2006 2007 2008 Jul08 aAgo09

2002 2003 2004 2005 2006 2007 2008 2009 2010*

Disposable Income (R$ million)

Source: IBGE

Credit Availability in the MarketGovernment, Manufacturing, Housing, Rural, Retail, Individuals (R$ bi)

1.347,4

Minimum Wage (in R$)

Source: BACEN

200,00

936,0

CAGR: 5,8%

CAGR: 12,3%

CAGR: 22,4%

506,50

sep-09

24,1% 24,5%28,1%

30,8%

41,3%45,7%

34,2%

2003 2004 2005 2006 2007 2008 set/09

Brazil: Total Credit over GDP

CAGR: 11,8%

Favorable ScenarioFavorable Scenario

Source: BACEN Source: BACEN

Improvement of Macroeconomic Indicators

36

1.360

2.111

3.383

3.920

1.000

2.000

3.000

4.000

2006 2007 2008 2009

Construction Incentive Plan – Federal Government

Sourcee: CEF e ABECIP Source: CEF e ABECIP

R$ million

Civil Construction Growth Potential

3.2396.672

11.330

16.987

0

5.000

10.000

15.000

2006 2007 2008 2009

R$ million

CAGR: 73,7%

43.471 43.789

48.593

57.716

40.000

45.000

50.000

55.000

60.000

2006 2007 2008 2009

CAGR: 9,9%

CAGR: 42,3%

Increase of the financing limit, through FGTS, from XR$ 350.000 to R$ 500.000;

Tax exemption for building materials (IPI reduction) Xextended until December/09;

Mortgage credit availability;

Extension of financing terms

Housing deficit: 7,2 million units.

Net Revenue from IMOB Construction Companies* **

* 2006, 2007 and 2008: revenues sum of respective companies. 2009: Bloomberg consensus.** Bovespa Construction Index (contemplates: Agra, BR Malls, Brookfield, Camargo Correa, Cyrela, Gafisa, MRV, PDG, Rossi, Tecnisa and Tenda).

Financed Units Monthly Average (FGTS+SPBE) Financing Monthly Average (FGTS+SBPE)

Favorable ScenarioFavorable Scenario

+18,8%

+15,9%

+49,9%

37

1.372,5 1.394,4

1.826,72.032,5

473,1 544,4 618,9

2.146,8

2004 2005 2006 2007 2008 1Q09 2Q09 3Q09

2.157,9 2.097,9 2.179,7

2.545,1

517,7 562,3 626,8

2.561,7

2004 2005 2006 2007 2008 1Q09 2Q09 3Q09

CAGR: 4,4%

CAGR: 11,8%

MDP

MDF

(Source: ABIPA)

(Source: ABIPA)

+13,7%

+11,5%

Total Consumption of Panels in Brazil (in ‘000 m³)

Favorable ScenarioFavorable Scenario

+21,1%

+30,8%

38

Duratex MomentumDuratex Momentum

Favorable Scenario

Leadership within its segments

New industrial plants

geographically well located

idle capacity

Corporate Governance

39

DisclaimerDisclaimer

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 also brings general information about

Duratex S.A. and its markets. 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.

11 November 2009.

40

AnnexAnnexExtraordinary events

(1)

(1) Incidents on COGS: Jundiaí Hardboarde Shutdown, MDP in Taquari and start-up of MDF in Uberaba

41

11 November 2009

CORPORATE PRESENTATION