www.duratex.com.br

1st half-year of 2004

Duratex S.A.

Public company traded at BOVESPA since 1951Number of outstanding shares as of August 31st: 11.782.716.987

Common: 37%Preferred: 63% (80% tag-along rights)

Itaúsa24,4%

Pension Funds23,6%

Foreign Investors

31,6%

Others18,6% Treasury

1,8%

Preferred

1

Preferred Stock Performance

During the first semester of 2004, Duratex´s preferred shares

presented a trading volume of R$ 162,2 million; that is, an increase of

123,7% when compared to the same period of 2003.

1st Semester 2004 2.026 2.150.500 162.204 1.308,1

1st Semester 2003 1.492 1.304.700 72.524 594,2

1HY03 - 1HY04 Var. % 35,8% 64,8% 123,7% 120,2%

Deals Shares Traded (1,000)

Traded Volume (R$ 1,000)

Daily Average Volume (R$ 1,000)

2

Business Segments

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

Metal FittingsMetal FittingsVitreous ChinaVitreous ChinaAccessoriesAccessories

Ceiling and Wall Paneling

3

CAPEX

4

Highlights:

New MDF/HDF/SDF line in Botucatu, with a nominal capacity of 400.000 m3/year;

Increase of the Particle Board production to 500.000 m3/year;

Increase of the Metal Fittings production to 14,4 million pieces per year;

Increase of the Vitreous China production to 4,2 million pieces per year with the

entrance, in this semester, of a new kiln at the Jundiaí plant.

History of CAPEX since 1995 (in R$M):

62,1

172,8

303,0

139,4138,9

65,474,1

130,495,0

49,9

1995 1996 1997 1998 1999 2000 2001 2002 2003 1HY2004

Total Debt & Amortization Schedule as of June (in R$M)

42,8

428,0

142,1 139,4

94,9

69,4

223,6

Total Debt 2004 2005 2006 2007 2008 &Beyond

DomesticCurrency

ForeignCurrency

Cash R$ 158,0 Net Debt R$ 412,1Net Debt / Equity 42,8%

TOTAL DEBT 570,1 Amortization Schedule

5

Industrial Capacity & Occupacy Rate

75,2%

82,9%

85,2%

66,1%

75,5%

Vitreous China

Metal Fittings

MDF/HDF/SDF

Particle Board

Hardboard

640.000 m3/year640.000 m3/year

3,2 M pieces/year

3,2 M pieces/year

500.000 m3/year500.000 m3/year

360.000 m3/year360.000 m3/year

14,4 M pieces/year14,4 M

pieces/year

Jan Jan –– Jun/2004Jun/2004July/2004July/2004

96,0%96,0%

83,4%83,4%

80,1%80,1%

76,0%76,0%

86,6%86,6%

6

Exports

Total exported:

1HY2004: US$ 28,1M

1HY2003: US$ 19,7M

Export History in US$M:

+42,6 %

37,6

19,7

28,1

19,7

46,541,5

2001 2002 2003 1HY02 1HY03 1HY04 7

Exports – 1HY2004

DECA DIVISION

7%

WOOD DIVISION

93%

Metal Fittings2%

Vitreous China

5%

MDF/HDF/SDF26%

Laminate Flooring

3%

INTER D+4%

Hardboard60%

Highlights: MDF, Furniture Exports (InterD+) and Vitreous China

United States42%

Europe22%

Asia/Middle East19%

Others5%

South/Central America

12%

Destinations

8

Performance – MDF Exports (m³/quarter)

0

2.500

5.000

7.500

10.000

12.500

15.000

17.500

20.000

22.500

25.000

1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04

m3

9

Exports

Furniture ExportsFurniture Exports ––

Showroom (Jundiaí/SP):

Area: 2.000m2

Active Clients: Holand, Mexico, South Africa and Middle East region

Product Line: 400 items

Sales in US$:

1HY03: 96K

1HY04: 1.568K

Samples of Products Exported

10

Exports

Vitreous Vitreous China China ExportsExports

11

Sales in US$:

1HY02: 772K

1HY03: 874K

1HY04: 1.522K

Present at the Kitchen & Bath fair in Chicago – March/2004

Deca Showroom: Kitchen & Bath – Chicago/04

Samples of Exported Producs

Net Revenues Breakdown 1HY2004

Wood Division: 68% Deca Division: 32%

Hardboard24%

Particle Board14%

Furniture1%

Laminate Flooring

8%

Metal Fittings

22%

Vitreous China10%

MDF/HDFSDF21%

12

Consolidated Income Statement (in R$M)

1HY 2004 VA% 1HY 2003 VA% HA%

NET REVENUES 551,9 100% 446,1 100% 24%COGS (317,4) 58% (257,5) 58%Depreciation/Amort./Depletion (34,7) (28,3)

GROSS PROFIT 199,8 36% 160,2 36% 25%Selling Expenses (73,4) (64,4)General & Administrative Expenses (22,6) (21,4)Other Operating Results 0,3 (6,1)

INCOME BEFORE FINANCIAL RESULTS 104,1 19% 68,3 15% 52%Net Financial Result (24,2) (21,8)Taxes on Financial Operations (4,2) (5,6)

OPERATING INCOME 75,7 14% 40,9 9% 85%Non Operating Income (0,3) 3,6

INCOME BEFORE TAXES 75,4 14% 44,5 10% 69%Income Tax & Social Contribution (19,2) (12,2)Statutory Participation (6,9) (4,0)Minority Participation (0,1) (0,1)

NET INCOME 49,1 9% 28,2 6% 74%

13

Consolidated Financial Results (in R$M)

1Q 04 2Q 04 1HY 04 1Q 03 2Q 03 1HY 03

Shipments

Wood Division ( in 1.000 m ³) 241,2 271,6 512,9 191,0 202,4 393,3

Deca Division ( in m illion pieces ) 3,3 3,4 6,7 3,4 3,0 6,4

Net Revenues 250,3 301,6 551,9 220,8 225,3 446,1

EBITDA 53,7 87,7 141,4 55,1 43,0 98,2

Net Income 11,3 37,8 49,1 20,5 7,6 28,2

20032004

14

1HY2004

37,8

11,3

87,7

53,7

1Q04 2Q04

1HY2003

20,57,6

55,143,0

1Q03 2Q03

Net Income EBITDA

Consolidated Financial Summary (in R$M)

2Q04 1Q04 4Q03 3Q03 2Q03Shipments

Wood Division (in 1.000 m³) 271,7 241,2 252,9 259,3 202,3

Deca Division (in million of pieces) 3,4 3,3 3,5 3,4 3,0

Net Revenues 301,6 250,3 279,2 264,4 225,3

COGS 185,6 166,5 178,2 165,6 149,0

Gross Profit 116,0 83,8 101,0 98,8 76,4

Gross Margin 38,5% 33,5% 36,2% 37,4% 33,9%

Operating Result 68,2 35,9 50,3 47,3 28,0

EBITDA 87,7 53,7 65,2 61,3 43,0

EBITDA Margin 29,1% 21,5% 23,4% 23,2% 19,1%

Net Income 37,8 11,3 22,5 13,4 7,6

ROE (annualized) 16,8% 5,0% 9,9% 5,9% 3,4%

15

Financial Performance per Division (in R$M)

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

Net Revenues 373,6 100% 178,2 100% 551,9 100%

COGS (208,4) 56% (108,9) 61% (317,4) 58%

Depr/Amort/Depl. (25,3) 7% (9,3) 5% (34,7) 6%

Gross Profit 139,9 37% 60,0 34% 199,8 36%

EBITDA 1HY 2004 109,9 29% 31,5 18% 141,4 26%

EBITDA 1HY 2003 75,1 26% 23,1 15% 98,2 22%

WOOD DIVISION DECA DIVISION CONSOLIDATED

16

Consolidated Cash Flow Statement (in R$ M)

1HY04 1HY03

NET INCOME 49,1 28,2Depreciation/Amortization/Depletion 37,3 29,9Interest / FX Variation (Accrual) / Other Financial Res. 34,2 (11,9)Provisions / Write-Offs 9,2 13,5

SUB-TOTAL 129,7 59,5Investments in Working Capital (56,6) (23,9)

OPERATING CASH FLOW 73,1 35,7

17

Perfomance

ShipmentsShipments

512,9

393,3415,6

905,5881,2823,6

2001 2002 2003 1HY02 1HY03 1HY04

(in 1.000 m3)

CAGR: 11,0%

6,76,46,4

13,314,5

13,6

2001 2002 2003 1HY02 1HY03 1HY04

(in million pieces)

CAGR: 2,3%18

Performance

Net Net RevenuesRevenues (in R$M)(in R$M)

785,3

382,4

551,9

446,1

989,6866,9

2001 2002 2003 1HY02 1HYS03 1HY04

CAGR: 12,3% CAGR: 20,1% 19

Performance

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

35,5 36,3

48,143,9

32,3

42,746,846,7

73,6

34,9%

22,2%

25,4%24,7%

22,0%

30,0%28,9%30,2%

26,8%

2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04

10,7 11,3

13,712,4

10,7

17,5 16,7 17,4

14,1

19,9%

15,4%

18,9%20,1%

13,6%

15,8%15,9%

13,8%15,2%

2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04

20

Performance

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

187,5

91,9141,4

98,2

224,6210,4

25,0%23,9% 24,4%22,7%

25,6%25,5%

2001 2002 2003 1HY02 1HY03 1HY04

CAGR: 9,4% CAGR: 24,0%

21

Dividends (in R$M)

15,1

25,724,623,621,5

15,115,014,7

11,28,7

1995 1996 1997 1998 1999 2000 2001 2002 2003 1HY04

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 40,2%40,2% 30,8%30,8%

22

www.duratex.com.br

1st half-year of 2004