June / 2003

www.duratex.com.br

Business Segments

HardboardParticle BoardMDFLaminate FlooringCeiling & Wall Paneling

Metal FittingsVitreous ChinaAccessories

Corporate Events

Partial Split and Incorporation of DCE by Duratex SA

March 31st of 2003 – it was approved, by a General Ordinary Extraordinary meeting, the partial split and incorporation of the industrial units of both particle board and MDF by Duratex S. A. from DCE

The operation aimed the reducion of costs and the elimination of double taxing

There were issued 3,6 million shares of Duratex SA in order to compensate DCE’s minority shareholders

Preferred Shareholders’ Structure (April 31st)

Itaúsa23,1%

Pension Fund20,5%

Fore ign Investors

28,4%

Others22,7%

Treasury5,3%

2002 2003

Shares outstanding as of April 31st:2002: 12.179.130.021 shares, of which 7.767.712.156 Pref.2003: 11.782.716.987 shares, of which 7.370.658.030 Pref.

Itaúsa24,4%

Pension Fund23,3%

Fore ign Investor

19,7%

Others28,7%

Treasury3,9%

Preferred Stock Performance

During the first quarter of 2003, Duratex stock was traded in every working day, presenting an appreciation of 3,8%, as opposed to the Bovespa Index that practicaly have not changedduring the same period

1Q2003 675 614.400 31.947 525,7

1Q2002 418 315.400 14.623 244,3

2Q2002 469 396.100 19.838 316,0

3Q2002 543 756.600 30.051 458,0

4Q2002 739 806.100 35.442 547,0

Var. % 61,5% 94,8% 118,5% 115,1%

Deals Volume Traded (in 1,000 shares)

Financial Volume (R$ 1,000)

Avg. Financial Volume (R$ 1,000)

Performance of Duratex’ Preferred Stock

Duratex PN x Stock Indexes100 Base: from 04/30/2002 to 04/30/2003

Duratex PN x Stock Indexes100 Base: from 04/30/2002 to 04/30/2003

18,2%

6,5%

3,6%

-4,0%

60

80

100

120

140

apr/

02

may

/02

jun/0

2

jul/0

2

aug/0

2

sep/0

2

oct/0

2

nov/02

dec/0

2

jan/0

3

feb/0

3

mar

/03

apr/

03

DURA4 IBOV IBX FGV100

CAPEX Objectives

Leadership

Capacity Growth Technology update Diversity & Competitiviness

Economies of Scale

Productivity GainsCost Reduction

Improve the selling mix

CAPEX - Highlight

New MDF/HDF Plant

Location: Botucatu/SP

Total invested: R$240 M

1st. Board: Feb/3/2003

Capacity: 400.000 m3/year

CAPEX & EBITDA (R$ M)

CAPEX Jan-Mar 2003: R$54,8 MEBITDA Jan-Mar 2003: R$55,2 M

303,0

139,4

138,9

65,474,1

130,495

49,9

210,4187,5

199,4158

114,3

97,977,3

65,9

1995 1996 1997 1998 1999 2000 2001 2002

CAPEX EBITDA

Industrial Capacity & Level of Utilization (1Q2003)

82,2%

89,6%

91,2%

78,7%

99,5%

Vitreous China

Metal Fittings

MDF

Particle Board

Hardboard

640.000 m3/yr640.000 m3/yr

270.000 pieces/month

270.000 pieces/month

500.000 m3/yr500.000 m3/yr

360.000 m3/yr360.000 m3/yr

1,2 M pieces/month

1,2 M pieces/month

MDF/HDF: 400.000 m3

pre-operational

AGI Last Phase:140.000 m3

Total Debt & Amortization Schedule (R$ M)

89,9214,1

195,1

113,7

85,3

56,963,4

Debt 2003 2004 2005 2006 2007 &Beyond

Domestic Currency

Foreign Currency

100% hedged

409,2

Long-Term Amortization ScheduleNet Debt on Shareholders’ Equity: 27,2%

Exports

USA47%

Europe25%

Others16%

South & Central America

14%

1Q2002 1Q2003

USA52%

Europe23%

Others11%

South & Central America

14%

US$9,8 MUS$8,9 M +10 %+10 %

Net Revenues Breakdown

Wood Division: 63,8% Deca Division: 36,2%

Particle Board15,6%

Hardboard27,2%

Vitreous China10,6%

Metal Fitings25,6%

Laminate Flooring

7,3%

MDF13,8%

1Q2002 1Q2003

Wood Division: 64,6% Deca Division: 35,4%

Particle Board14,2%

Hardboard29,1% Vitreous

China11,1%

Metal Fittings24,3%

Laminate Flooring

7,8%

MDF13.5%

Consolidated Income Statement (R$ 1.000)

1Q2003 VA% 1Q2002 VA% HA%

NET REVENUES 220.778 100% 179.114 100% 23%COGS (122.106) 55% (97.800) 55%Depreciation/Amort./Depletion (14.801) (14.094)

GROSS PROFIT 83.871 38% 67.220 38% 25%Selling Expenses (29.940) (20.562)General & Administrative Expenses (10.368) (8.828)Lay-off Provisions (1.005) (4.663)Other Operating Results (2.222) (1.613)

INCOME BEFORE FINANCIAL RESULTS 40.336 18% 31.554 18% 28%Net Financial Result (6.771) (2.738)Taxes on Financial Operations (2.417) (1.800)Argentina - Exchange Rate Impact 950 (12.316)

OPERATING INCOME 32.098 15% 14.700 8% 118%Non Operating Income 405 2.931

INCOME BEFORE TAXES 32.503 15% 17.631 10% 84%Income Tax & Social Contribution (8.957) (3.500)Statutory Participation (2.995) (1.798)Minority Participation (42) (250)

NET INCOME 20.509 9% 12.083 7% 70%

Consolidated Operating Cash Flow Statement (R$ 1.000)

1Q2003 1Q2002

NET INCOME 20.509 12.083Depreciation/Amortization/Depletion 14.801 14.094

Interest / FX Variation (Accrual) (2.533) 6.901

Provisions / Write-Offs 4.703 4.396

SUB-TOTAL 37.480 37.474Investments in Working Capital (4.007) 5.947

OPERATING CASH FLOW 33.473 43.421

Consolidated Financial Summary (R$ M)

1Q03 1Q02 2Q02 3Q02 4Q02Net Revenues 220,8 179,1 203,2 236,4 248,2

COGS 122,1 98,4 114,1 130,1 143,4

Gross Margin Net of Deprec. 44,7% 45,1% 43,8% 45,0% 42,2%

Depreciation 14,8 13,5 13,7 14,6 14,3

Gross Profit 83,9 67,2 75,4 91,6 90,6

Gross Margin 38,0% 37,5% 37,1% 38,7% 36,5%

Operating Result 40,3 31,6 33,1 42,7 45,5

EBITDA 55,1 45,6 46,3 58,0 60,5

EBITDA Margin 25,0% 25,5% 22,8% 24,5% 24,4%

Net Income 20,5 12,1 15,0 24,8 19,8

ROE (annualized) 9,3% 5,7% 7,0% 11,5% 9,0%

Wood Division – Cost Breakdown

Hardboard Particle Board MDFRaw Material & Others 31% 58% 63%Work Force 23% 13% 12%Wood 20% 11% 9%Depreciation 5% 8% 8%Electric Power 11% 4% 6%Fuel 10% 6% 2%

Total 100% 100% 100%

0%

20%

40%

60%

80%

100%

Hardboard ParticleBoard

MDF

FuelElectric PowerDepreciationWoodWork ForceRaw Material & Others

Deca Division – Cost Breakdown

Vitreous China Metal FittingsRaw Material & Others 39% 55%Work Force 37% 34%Electric Power 3% 4%Depreciation 10% 7%Fuel 11% 0%Total 100% 100%

0%

20%

40%

60%

80%

100%

Vitreous China Metal Fittings

FuelElectric PowerDepreciationWork ForceRaw Material & Others

Financial Performance per Division

WOOD DIVISION DECA DIVISION CONSOLIDATED CONSOLIDATED CONSOLIDATED

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

Net Revenues 142,6 100% 78,2 100% 220,8 100%

COGS (74,2) 52% (48,7) 62% (122,9) 56%

Depreciation (9,1) 6% (4,9) 6% (14,0) 6%

Gross Profit 59,3 42% 24,6 31% 83,9 38%

EBITDA 1T2003 42,7 30% 12,4 16% 55,1 25%

EBITDA 1T2002 35,4 31% 10,2 16% 45,6 25%

Performance

Shipments

167,4 182,7 195,2 197,4 191,0

582,2 629,4 628,4 683,8

1999 2000 2001 2002 2003

749,6812,1 823,6

881,2

( in 1.000 m3 )

10,1 10,3 10,9 11,3

3,43,23,33,23,0

1999 2000 2001 2002 2003

13,1 13,5 14,2 14,5

( in million of pieces )

Performance

Net Revenues (R$M)

169,3185,4

220,8

179,1

145,7

1Q99 1Q00 1Q01 1Q02 1Q03

CAGR: 10,9 %CAGR: 10,9 %

Performance

28,632,1

36,630,4

25,9

1Q99 1Q00 1Q01 1Q02 1Q03

Net Revenues per Employee (R$1.000)

CAGR: 9,0 %CAGR: 9,0 %

Performance

EBITDA (R$M) & Margin (%)

39,0

46,3 46,9 45,6

55,1

25,0%25,2%25,3%27,3%26,8%

1Q99 1Q00 1Q01 1Q02 1Q03

CAGR EBITDA: 9,0 %CAGR EBITDA: 9,0 %

Performance

7,8 8,19,2

7,76,8

1Q99 1Q00 1Q01 1Q02 1Q03

EBITDA per Employee (R$ 1.000)

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

Performance

Net Income (R$M)

12,2

19,1 20,5

12,1

(18,9)

1Q99 1Q00 1Q01 1Q02 1Q03

Impacted by Devaluation of the Real

June / 2003

www.duratex.com.br