www.duratex.com.br

1st Semester of 2003

Metal FittingsMetal FittingsVitreous ChinaVitreous ChinaAccessoriesAccessories

HardboardHardboardParticle BoardParticle BoardMDFMDFLaminate FlooringLaminate FlooringCeiling and Wall PanelingCeiling and Wall Paneling

Business Segments

Main Competitors

HardboardEucatex

Particle BoardBerneckEucatexPlacas do ParanáSatipelTafisa

MDF/HDFMasisaPlacas do ParanáTafisa

Laminate FlooringEucatexTafisa

Metal FittingsDocolFabrimar

Vitreous ChinaElizabethIcasaIdeal StandardHervyRoca (Group ICL)

Preferred Shareholders´ Structure (as of July 31st)

Shares outstanding as of July 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.

Itaúsa23,1% Pension

Funds20,8%

Fore ign Investors

27,6%

Others23,1%

Treasury5,4%

20022002

Itaúsa24,4%

Pension Funds22,6%

Fore ign Investors

21,3%

Others29,7%

Treasury2,0%

20032003

Preferred Stock Performance

During the first semester of 2003, Duratex’ stock presented an appreciation of 22,1% as the Bovespa index appreciated by 15,1%.

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

2nd Quarter 02 469 396.100 19.838 316,0

1st Semester 02 887 711.500 34.461 280,2

1st Semester 03 1.492 1.304.700 72.524 594,2

Var. % 68,2% 83,4% 110,5% 112,1%

Deals Shares Traded (1,000)

Traded Volume (R$ 1,000)

Daily Average Volume(R$ 1,000)

Performance of Duratex’ Preferred Stock

Duratex PN X Selected Stock Indexes100 Base: July/31/2002

Duratex PN X Selected Stock Indexes100 Base: July/31/2002

90

110

130

150

170

jul/02

aug/0

2se

p/02

oct/02

nov/02

dec/0

2jan

/03

feb/0

3mar

/03

apr/0

3may

/03

jun/03

jul/03

DURATEX IBOVESPA IBX FGV 100

39,6%39,6%

39,0%39,0%

51,9%51,9%

49,8%49,8%

138,9 139,4

303,0

73,5

187,9

103,5

98,2

91,994,6

210,4187,5

199,4

2000 2001 2002 1HY01 1HY02 1HY03

CAPEX EBITDA

CAPEX & EBITDA (R$ M)

CAPEX Highlight – MDF/HDF

Production Capacity: 400.000 m3/yearBreak through technology protected by a secrecy agreement

between Duratex and the supplier of the equipmentThis new plant will allow Duratex the leadership within the

fabrication of this type of panelRamp-up of the equipment:

feb/03 mar/03 apr/03 may/03 jun/03 jul/03

PRODUCTION - 5.825 9.218 9.471 11.249 12.122

Industrial Capacity & Levels of Utilization (1HY2003)

85,9%

81,7%

89,1%

77,6%

93,4%

Vitreous China

Metal Fittings

MDF

Particle Board

Hardboard

640.000 m3/year640.000 m3/year

270.000 pieces/month

270.000 pieces/month

500.000 m3/year500.000 m3/year

360.000 m3/year360.000 m3/year

1,2 M pieces/month

1,2 M pieces/month

MDF/HDF: 400.000 m3

pre-operational

AGI last phase:140.000 m3

Debt Structure and Amortization Schedule (R$ M)

94,1213,3

145,9

60,088,4

55,860,9

Total Debt 2003 2004 2005 2006 2007 &Beyond

Domestic Currency

Foreign Currency

100% hedged

359,2

FOREIGN 30,3 - 98,4 17,1 145,8

DOMESTIC 162,5 50,9 - - 213,4

TOTAL 192,8 50,9 98,4 17,1 359,2

TOTALBNDES & FINAME DEBENTURE IFC ACC

Net Revenues Breakdown

Wood Division: 65% Deca Division: 35%

Hardboard28%

Particle Board14%

MDF15%

Laminate Flooring

8%

Metal Fittings

24%

Vitreous China11%

1HY2003 1HY2002

Wood Division: 65% Deca Division: 35%

Hardboard33%

Particle Board14%

MDF11%

Laminate Flooring

7%

Metal Fittings

25%

Vitreous China10%

Exports

1HY20021HY2002

United States54%

South & Central America

13%

Europe19%

Others14%

US$19,7 M

1HY20031HY2003

United States44%

South & Central America

13%

Europe25%

Others18%

US$ 19,7 M ==

Consolidated Income Statement (R$ 1.000)

1HY2003 VA% 1HY2002 VA% HA%

NET REVENUES 446.055 100% 382.361 100% 17%COGS (257.510) 58% (212.500) 56%Depreciation/Amort./Depletion (28.323) (27.209)

GROSS PROFIT 160.222 36% 142.652 37% 12%Selling Expenses (64.441) (49.733)General & Administrative Expenses (21.362) (18.590)Lay-off Provisions (2.396) (6.396)Other Operating Results (3.715) (3.280)

INCOME BEFORE FINANCIAL RESULTS 68.308 15% 64.653 17% 6%Net Financial Result (21.795) (17.405)Taxes on Financial Operations (5.580) (4.500)

OPERATING INCOME 40.933 9% 42.748 11% -4%Non Operating Income 3.552 3.654

INCOME BEFORE TAXES 44.485 10% 46.402 12% -4%Income Tax & Social Contribution (12.232) (14.845)Statutory Participation (4.002) (4.125)Minority Participation (99) (367)

NET INCOME 28.152 6% 27.065 7% 4%

Consolidated Financial Summary (R$M)

2Q03 1Q03 4Q02 3Q02 2Q02Net Revenues 225,3 220,8 248,2 236,4 203,2

COGS Net of Depr/Amort/Depl. 134,6 122,8 143,4 130,1 114,1

Gross Margin Net of Depr/Amort/Depl. 40,3% 44,4% 42,2% 45,0% 43,8%

Depreciation/Amortization/Depletion 14,2 14,1 14,3 14,6 13,7

Gross Profit 76,4 83,9 90,6 91,6 75,4

Gross Margin 33,9% 38,0% 36,5% 38,7% 37,1%

Operating Result 28,0 40,3 45,5 42,7 33,1

EBITDA 43,0 55,1 60,5 58,0 46,3

EBITDA Margin 19,1% 25,0% 24,4% 24,5% 22,8%

Net Income 7,6 20,5 19,8 24,8 15,0

ROE (annualized) 3,4% 9,3% 9,0% 11,5% 7,0%

Consolidated Income Statement – Deca Piazza (R$ 1.000)

1HY2003 VA% 1HY2002 VA%

NET REVENUES 5.681 100% 3.093 100%Cost of Goods Sold (4.366) 77% (3.591) 116%Depreciation/Amortization/Depletion (256) 5% (148) 5%

GROSS PROFIT 1.059 19% (646) 21%Selling Expenses (162) 3% (453) 15%General and Administrative Expenses (446) 8% (2.384) 77%

INCOME BEFORE FINANCIAL RESULTS 451 8% (3.483) 113%Net Financial Result 795 14% (4.471) 145%

NET INCOME 1.246 22% (7.954) 257%

Consolidated Operating Cash Flow Statement (R$ 1.000)

1HY2003 1HY2002

NET INCOME 28.152 27.065Depreciation/Amortization/Depletion 29.855 27.245

Interest / FX Variation (Accrual) (11.927) 42.360

Provisions / Write-Offs 13.456 9.146

SUB-TOTAL 59.536 105.816Investments in Working Capital (23.861) 500

OPERATING CASH FLOW 35.675 106.316

Wood Division – Cost Breakdown

Hardboard Particle Board MDFRaw Material 32% 59% 64%Work Force 25% 11% 11%Wood 19% 11% 9%Depreciation 5% 8% 8%Electric Power 11% 5% 6%Fuel 8% 6% 2%

Total 100% 100% 100%

Deca Division – Cost Breakdown

Vitreous China Metal FittingsRaw Material & Others 37% 54%Work Force 39% 35%Electric Power 3% 3%Depreciation 9% 7%Fuel 11% 0%Total 100% 100%

Financial Performance per Division (R$M)

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

Net Revenues 289,4 100% 156,7 100% 446,1 100%

COGS (161,4) 56% (96,1) 61% (257,5) 58%

Depr/Amort/Depl. (18,5) 6% (9,8) 6% (28,3) 6%

Gross Profit 109,4 38% 50,8 32% 160,2 36%

EBITDA 1HY2003 75,1 26% 23,1 15% 98,2 22%

EBITDA 1HY2002 70,9 29% 21,0 15% 91,9 24%

WOOD DIVISION DECA DIVISION CONSOLIDATED

Performance

Shipments

( in 1.000 m3 )

393,3415,6406,3

881,2823,6812,1

2000 2001 2002 1HY01 1HY02 1HY03

( in million pieces )

6,46,46,7

14,513,6

12,3

2000 2001 2002 1HY01 1HY02 1HY03

Net Revenues (R$M)

CAGR: 7,9 %CAGR: 7,9 % CAGR: 8,3 %CAGR: 8,3 %

744,6

380,5446,1

382,4

866,9785,3

2000 2001 2002 1HY01 1HY02 1HY03

Performance

Performance

128,6

64,673,5

65,4

150,4131,1

2000 2001 2002 1HY01 1HY02 1HY03

CAGR: 8,1 %CAGR: 8,1 % CAGR: 6,7 %CAGR: 6,7 %

Net Revenues per Employee (R$1.000)

Performance

CAGR: 2,7 %CAGR: 2,7 % CAGR: 1,9 %CAGR: 1,9 %

199,4 187,5210,4

94,6 91,9 98,2

22,0%

26,8%23,9% 24,4% 24,9% 24,0%

2000 2001 2002 1HY01 1HY02 1HY03

EBITDA (R$ M) & Margin (%)

Performance

34,4

16,1 16,215,7

36,5

31,3

2000 2001 2002 1HY01 1HY02 1HY03

CAGR: 3,0 %CAGR: 3,0 % CAGR: 0,3 %CAGR: 0,3 %

EBITDA per Employee (R$1.000)

Net Income (R$M)

CAGR: 3,7 %CAGR: 3,7 %

66,7

37,428,227,1

71,7

52,1

2000 2001 2002 1HY01 1HY02 1HY03

Performance

Net Income per Employee (R$1.000)

CAGR: 3,8 %CAGR: 3,8 %

11,5

6,44,64,6

12,4

8,7

2000 2001 2002 1HY01 1HY02 1HY03

Performance

Dividends Distributed (R$ M)

41,2%41,2%43,6%43,6%31,6%31,6%34,3%34,3%45,3%45,3%32,3%32,3%

Pay OutPay Out

21,5

11,8 11,611,8

24,623,6

2000 2001 2002 1HY01 1HY02 1HY03

www.duratex.com.br

1st Semester of 2003