www.duratex.com.br

3rd Quarter of 2003

Duratex S.A.Duratex S.A.

Public company traded, in stock market (BOVESPA), since 1951Number of shares outstanding as of September 30th:

Common: 4.412.058.957Preferred: 7.370.658.030

Preferred Shareholders´ Structure as of September 30th :

Itaúsa23,1%

Pension Funds23,5%

Fore ign Investors

22,6%

Others25,1%

Teasury5,7%

20022002

Itaúsa24,4%

Pension Funds23,7%

Fore ign Investors

25,9%

Others23,8%

Treasury2,2%

20032003

Capital Markets

Transparency Transparency & & CommunicationCommunication

5th ABRASCA Prize - Best Annual Report 2002

Duratex was awarded 2nd place

80% tag-along rights to the preferred stock

Field trips to industrial units, one-on-one meetings, local

and international Road Show - 350 investors/analysts

www.duratex.com.br - Investors Relation website received

72.000 accesses during 2003, 36% more than during 2002

Preferred Stock Performance

From January to October 2003, Duratex stock was traded on every working day, presenting na appreciation of 38,5%

3rd Quarter 03 1.454 1.609.800 99.159 1.502,0

2nd Quarter 03 817 690.300 40.577 662,7

1st Quarter 03 675 614.400 31.947 525,7

4th Quarter 02 739 806.100 35.442 547,0

3rd Quarter 02 543 756.600 30.051 458,0

Var. 3Q03 - 3Q02 % 167,8% 112,8% 230,0% 227,9%

Deals Shares Traded (1,000)

Traded Volume (R$ 1,000)

Daily Average Volume(R$ 1,000)

Duratex´s Preferred Stock Performance

Duratex PN X Stock Indexes100 Base: from 11/06/2002 to 11/06/2003

Duratex PN X Stock Indexes100 Base: from 11/06/2002 to 11/06/2003

62,9%62,9%

91,8%91,8%

68,2%68,2%

81,2%81,2%

80

100

120

140

160

180

200

nov-

02de

c-02

jan-0

3feb

-03

mar-03

apr-0

3may

-03

jun-0

3jul

-03

aug-

03se

p-03

oct-0

3no

v-03

DURATEX IBOVESPA IBX FGV 100

Business Segments

HardboardHardboardParticle BoardParticle BoardMDF/HDF/SDFMDF/HDF/SDFLaminate FlooringLaminate FlooringCeiling & Wall Paneling

Metal FittingsMetal FittingsVitreous ChinaVitreous ChinaAccessoriesAccessories

Ceiling & Wall Paneling

Capex (US$ M)

44,6

113,2

59,3

75,9

36,0

63,9

121,1

94,5

54,4

1995 1996 1997 1998 1999 2000 2001 2002 2003** Jan to Sep/2003

Total CAPEX from 1995 to sep 2003: ~ US$660M2003: expected CAPEX for the whole year: US$55M

Total Debt & Amortization Schedule (R$ M)

FOREIGN 29,5 - 101,2 45,6 176,3

DOMESTIC 152,3 75,6 - - 227,9

TOTAL 181,8 75,6 101,2 45,6 404,2

TOTALBNDES & FINAME DEBENTURE IFC TRADE FINANCE

115,2227,8

176,4

64,5

108,9

55,160,4

Debt 2003 2004 2005 2006 2007 &Beyond

404,2

Foreign Currency

100% hedge

Domestic Currency

Average debt cost: 81% of CDI

Capex - Objectives

Improve the Selling Mix & Release New

Products

Leadership

Capacity Growth Technology Update Competitiviness

Improve Revenues with Cost Reduction

Economies of Scale

Productivity Gains

Improve Profitability / Appreciate Stock Prices

Capex - Highlight

MDF / HDF / SDFMDF / HDF / SDF

Location: Botucatu/SPTotal Invested: US$86MProduction Capacity: 400.000 m³/yearImprove scaleLeadership within MDF & HDF productionDifferentiated technology that allows the

fabrication of SDF panels Strategicaly locatedRamp-up:

feb/03 mar/03 apr/03 may/03 jun/03 jul/03 aug/03 sep/03 oct/03 nov/03 *

PRODUCTION (m³) - 5.825 9.218 9.471 11.249 12.122 8.943 17.723 17.789 20.000

* Company Estimates

Capex – Capacity Expansion

1995 1996 1997 1998 1999 2000 2001 2002 2003

Hardboard 1 360 360 360 360 360 360 360 360 360

Particle Board 1 320 320 320 320 320 320 340 360 500

MDF/HDF/SDF 1 - - 180 180 180 200 220 240 640

Laminate Flooring 2 - - - 6.000 6.000 6.000 6.000 6.000 6.000

Metal Fittings 3 7.800 8.400 9.000 9.600 10.800 12.000 13.200 14.400 14.400

Vitreous China 3 1.860 1.860 2.160 2.340 2.400 2.580 3.300 3.300 3.180

1 in m³2 in m23 in 1.000 pieces

Today´s Capacity: 3.180 thousand pieces/year

2004: capacity increase by 960 thousand

pieces/year from the 2nd half year on

Industrial Capacity & Level of Utilization (9 months of 2003)

80,0%

92,0%

88,6%

82,9%

94,7%

Vitreous China

Metal Fittings

MDF

Particle Board

Hardboard

640.000 m3/year640.000 m3/year

265.000 pieces/year265.000

pieces/year

500.000 m3/year500.000 m3/year

360.000 m3/year360.000 m3/year

1,2 M pieces/year

1,2 M pieces/year

MDF/HDF: 400.000 m3

24,8% occupation in 2003

AGI Last Phase:140.000 m3

Main Competitors

HardboardEucatex

Particle BoardBerneckEucatexPlacas do ParanáSatipelTafisa

MDF/HDFMasisaPlacas do ParanáTafisa

Laminate FlooringEucatexTafisa

Metal FittingsDocolFabrimar

Vitreous ChinaElizabethIcasaIdeal StandardHervyRoca (Group ICL)

Strategic Positioning

Wood DivisionWood Division –– ProductProduct RangeRange

SDF Laminate Flooring Wall Paneling

Raw Painted Raw LP FF Raw LP FF

Duratex

Berneck

Eucatex

Masisa

Pl. do Paraná

Satipel

Tafisa

Hardboard Particle Board MDF/HDF

Strategic Positioning

TimberlandTimberlandTimberland holdings: 83.000 ha of pinus and eucalyptus treesSelf-sustained, fully automated harvesting process and certified

areas by ISO 14.001 and Green LabelAverage distance from timberland to industrial units: 50 km80% self-sufficiency in wood supply as the competitors’ average is

around 48%

Strategic Positioning

Deca DivisionDeca Division –– ProductProduct RangeRange

Product line in Metal Fittings: 6.000 itemsProduct line in Vitreous China: 260 itemsBroad selling mix including from the most standard to the

higher end productsBroad water saving product line

New Products Released

From January to September 2003:

Wood Division: 66 new products

Deca Division: 28 products

1998 12 2 8 41 19

1999 17 6 1 32 20

2000 8 4 16 17 5

2001 33 18 14 15 30

2002 16 24 41 53 32

sep/03 10 14 42 21 7

Total 96 68 122 179 113

Vitreous ChinaHardboard Particle Board MDF/DurafloorDurawall

Metal Fittings

Strategic Positioning

Shutting DownShutting Down of Gravataof Gravataíí/RS/RS´́s s ParticleParticle BoardBoard PlantPlantCapacity: 140.000 m3/year

There will be no impact on revenues

Objectives:

cost reduction by R$10 M year;

concentrate the production closer to Sao Paulo’s consuming

centers;

Shutting DownShutting Down of Jundiaof Jundiaíí/SP/SP´́s s VitreuosVitreuos China China UnitUnit IICapacity: 600.000 pieces/year

There will be no impact on revenues

Objectives:

cost reduction by R$4,0 M year;

efficiency gains by concentrating the production of Unit I in Unit II

located also in Jundiaí

Wood Division – Shipments from Jan to Oct/2003 (in m³)

60.000

65.000

70.000

75.000

80.000

85.000

90.000

95.000

100.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Estimated

Deca Division – Shipments from Jan to Oct/2003 (1.000 pieces)

800

900

1.000

1.100

1.200

1.300

1.400

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Estimated

Distribution Channel

Revenda80%

Construtoras4%

Atacadistas6%

B2B + Te lemktg

6%

Demais4%

Móve is64%

Revenda20%

Construção Civil7%Demais

9%

Constructors 4%

Wholesale 6%

Others 4%

Civil Construction 7%

Others 9%

Retail 20%

Retail 80%

Furniture Making 64%

Net Revenues Breakdown (9 months)

Wood Division: 66% Deca Division: 34%

Hardboard34%

Particle Board12%

MDF13%

Laminate Flooring

7%

Metal Fittings

24%

Vitreous China10%

2003 2002

Wood Division: 65% Deca Division: 35%

Hardboard33%

Particle Board14%

MDF11%

Laminate Flooring

7%

Metal Fittings

25%

Vitreous China10%

Exports (9 months)

20032003 20022002

United States48%

Europe24%

South & Central America

15%Others

13%

United States59%

Europe19%

South & Central America

13%

Others9%

US$ 31,2MUS$ 33,6 M + 7,7%+ 7,7%

Exports – Strategic Positioning

Furniture ExportsFurniture Exports ––

Showroom (Jundiaí/SP) Area:

Today: 600m2

At the end of November/2003: 2.000m2

Active clients: 7 (Holand, Mexico and South Africa)

Product line: 400 itens

Vitreous Vitreous China China ExportsExports

Development of 30 new products specially featured to the North

American market

Establishing storage infrastructure in the US

Participation in fairs during 2004 (Kitchen & Bath in Chicago)

Consolidated Income Statement (R$ 1.000)

9m2003 VA% 9m2002 VA% HA%

NET REVENUES 710.420 100% 618.679 100% 15%COGS (409.773) 58% (342.658) 55%Depreciation/Amort./Depletion (41.610) (41.775)

GROSS PROFIT 259.037 36% 234.246 38% 11%Selling Expenses (99.334) (78.926)Provisions for Doubtful Payments (3.917) (1.863)General & Administrative Expenses (31.748) (29.913)Lay-off Provisions (5.717) (8.643)Other Operating Results (2.741) (7.541)

INCOME BEFORE FINANCIAL RESULTS 115.580 16% 107.360 17% 8%Net Financial Result (38.234) (20.081)Taxes on Financial Operations (8.595) (8.223)

OPERATING INCOME 68.751 10% 79.056 13% -13%Non Operating Income 2.214 4.205

INCOME BEFORE TAXES 70.965 10% 83.261 13% -15%Income Tax & Social Contribution (23.208) (22.879)Statutory Participation (6.012) (8.072)Minority Participation (181) (436)

NET INCOME 41.564 6% 51.874 8% -20%

Consolidated Financial Summary (R$ M)

3Q03 2Q03 1Q03 4Q02 3Q02Net Revenues 264,4 225,3 220,8 248,2 236,4

COGS Net of Depr/Amort/Depl. 152,3 134,6 122,8 143,4 130,1

Gross Margin Net of Depr/Amort/Depl. 42,4% 40,3% 44,4% 42,2% 45,0%

Depreciation/Amortization/Deple tion 13,3 14,2 14,1 14,3 14,6

Gross Profit 98,8 76,4 83,9 90,6 91,6

Gross Margin 37,4% 33,9% 38,0% 36,5% 38,7%

Operating Result 47,3 28,0 40,3 45,5 42,7

EBITDA 61,3 43,0 55,1 60,5 58,0

EBITDA Margin 23,2% 19,1% 25,0% 24,4% 24,5%

Net Income 13,4 7,6 20,5 19,8 24,8

ROE (annualized) 5,9% 3,4% 9,3% 9,0% 11,5%

Financial Performance per Division (9 months of 2003 in R$ M)

(R$M) VA% (R$M) VA% (R$M) VA%

Net Revenues 466,7 100% 243,7 100% 710,4 100%

COGS (264,5) 57% (145,3) 60% (409,8) 58%

Depr/Amort/Depl. (27,3) 6% (14,3) 6% (41,6) 6%

Gross Profit 174,9 37% 84,1 35% 259,0 36%

EBITDA 9m2003 118,9 25% 40,6 17% 159,5 22%

EBITDA 9m2002 117,6 29% 32,3 15% 149,9 24%

WOOD DIVISION DECA DIVISION CONSOLIDATED

Consolidated Operating Cash Flow Statement (R$ 1.000)

9m2003 9m2002

NET INCOME 41.564 51.874Depreciation/Amortization/Depletion 43.923 42.517Interest / FX Variation (Accrual) 231 109.565Provisions / Write-Offs 16.523 11.541

SUB-TOTAL 102.241 215.497Investments in Working Capital (56.762) 14.940

OPERATING CASH FLOW 45.479 230.437

Wood Division – Cost Breakdown

Hardboard Particle Board MDFRaw Material 32% 59% 62%Work Force 25% 11% 12%Wood 19% 13% 9%Depreciation 4% 7% 8%Electric Power 11% 5% 7%Fuel 9% 5% 2%

Total 100% 100% 100%

Deca Division – Cost Breakdown

Vitreous China Metal FittingsRaw Material & Others 37% 54%Work Force 40% 35%Electric Power 4% 3%Depreciation 9% 7%Fuel 10% 1%Total 100% 100%

Performance

ShipmentsShipments

( in 1.000 m3 ) 652,6651,5617,8

881,2823,6812,1

2000 2001 2002 9m01 9m02 9m03

( in million pieces )

9,810,410,4

14,513,6

12,3

2000 2001 2002 9m01 9m02 9m03

Performance

CAGR: 7,9 %CAGR: 7,9 %

744,6

592,6

710,4618,7

866,9785,3

2000 2001 2002 9m01 9m02 9m03

CAGR: 9,5 %CAGR: 9,5 %

Net Net RevenuesRevenues (R$ M)

Performance

EBITDA EBITDA (R$ M) & & MarginMargin (%)

22,4%

26,8%23,9% 24,4%

23,2% 24,2%

2000 2001 2002 9m01 9m02 9m03

199,4187,5

210,4

137,2149,9

159,5

CAGR: 2,7 %CAGR: 2,7 % CAGR: 7,8 %CAGR: 7,8 %

Performance - Quarterly

EBITDA EBITDA (R$ M) & MarginMargin (%)

35,4 35,5

46,7 46,8

42,7

32,3

43,9

24,7%22,0%

30,0%28,9%30,2%26,8%

30,9%

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03

10,2 10,7 11,313,7

12,410,7

17,5

20,1%

13,6%15,8%15,9%

13,8%

15,2%15,8%

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03

Dividends Distribuition (R$ M)

11,611,811,88,9

6,97,57,45,5

4,2

4,15,6

7,3 7,5 8,3

12,611,8 12,8

1995 1996 1997 1998 1999 2000 2001 2002 2003*

Dividends 1st Semester

Dividends 2nd Semester

45,3%45,3%32,3%32,3%148,2%148,2%34,7%34,7%34,6%34,6%31,7%31,7%28,4%28,4% 34,3%34,3%PayPay--OutOut 41,2%41,2%

* 1st Semester

www.duratex.com.br

3rd Quarter of 2003