Post on 01-Oct-2020
1
Fact Sheet 3Q 12
CORPORATE GOVERNANCEE-mail address for matters relating to corporate governance, for the at-
tention of top management: governanca.corporativa@duratex.com.br.
• Shares listed on the BM&FBovespa Novo Mercado
• Only common shares in circulation, in other words, each carries the right
to one vote at General Shareholders ́Meetings
• 100% tag-along rights for the shares
• Three independent members on the Board of Directors
• Advisory Committees to the Board of Directors: Staff, Nomination and
Governance; Sustainability; Auditing and Risk Management; Trading and
Disclosure; and Related Parties. The committees are chaired by indepen-
dent Board members, with the exception of the Trading and Disclosure
Committee, which is chaired by the investor relations director
• Dividend policy with a minimum distribution of 30% of adjusted
net earnings
• Policy in force for the disclosure of Material Events and Facts and
Trading in Securities
• The Company has adhered to the ABRASCA self-regulation manual
• Shares included in the Dow Jones Sustainability World Index
(DJSWI), version 2012/2013 and Bovespa Corporate Sustainability
Index (ISE), version 2012
• Number of outstanding shares: 550,053,521
• Free float of 40.0% of the total shares in issue
• Stockbrokers that cover the company: Ativa, Banco Fator Corretora, BTG
Pactual, Citibank, Coinvalores, Deutsche Bank, Itaú Corretora, JP Morgan,
Lopes Filho, Merrill Lynch, Morgan Stanley, Santander and Votorantim
MARKET CAP (09/30/2012) R$7.3 Bn
CLOSING SHARE PRICE ON 09/30/2012R$13.29
OuTSTANdING SHARES IN SEPTEMbER 2012550,053,521
TREASuRY STOCK1,768,993
FREE FLOAT 40.0%
IR CONTACT CFO and Director of Investor Relations: Flavio Marassi DonatelliInvestor Relations Executive Manager: Alvaro Penteado de Castro
CONFERENCE CALL/WEbCAST:Friday, October 26, 2012
Portuguese:Time: 05:00 pm (Brasília, 03:00 pm NY – EST)English:Time: 11:30 am (Brasília, 09:30 am NY – EST) Support Material: www.duratex.com.br/ri
To connect: Calls from Brazil: +55 11 4688-6361 Calls from USA: Toll Free: + 1 888 700-0802 Calls from other countries: + 1 786 924-6977 Code: Duratex Webcast: www.duratex.com.br/ri
2FACT SHEET 3Q2012
CONSOLIdATEd FINANCIAL SuMMARY
SCENARIO ANd MARKETDuratex’s performance during the year has been outstanding,
mirroring the buoyancy of the domestic economy.
Both business areas, the Deca and Wood divisions, have report-
ed a consistent improvement in net revenue, sustained by the
strength seen in their respective end-consumer segments:
furniture, which proved to be most buoyant in the period, as
well as metal bathroom fittings and vitreous chinaware.
The good performance of these sectors has been largely due
to the low level of unemployment, the increase seen in real
incomes, the reduction of taxes, the availability of credit for
the real-estate segment and the retail furniture trade, com-
bined with easier terms of financing.
3Q12 2Q12 3Q11 Jan-Sep/12 Jan-Sep/11Highlights (in R$‘000)
Volume Shipped Deca (‘000 pieces) 6,917 6,225 6,780 19,165 18,776
Volume Shipped Panels (m3) 704,920 626,077 611,696 1,935,120 1,713,165
Consolidated Net Revenue 911,220 809,054 789,775 2,458,059 2,200,821
Gross Profit 320,047 276,582 276,644 851,223 755,518
Gross Margin 35.1% 34.2% 35.0% 34.6% 34.3%
EBITDA(1) 279,923 237,283 242,094 726,038 650,568
EBITDA Margin 30.7% 29.3% 30.7% 29.5% 29.6%
Extraordinary Event(2) 6,367 0 25,820 6,367 39,888
Recurrent EbITdA 273,556 237,283 216,274 719,671 610,680
Recurrent EbITdA Margin 30.0% 29.3% 27.4% 29.3% 27.7%
Net Earnings 125,663 98,401 118,214 310,311 295,473
Recurrent Net Earnings 121,461 98,401 102,333 306,109 270,308
Recurrent Net Margin(3) 13.3% 12.2% 13.0% 12.5% 12.3%
Indicators
Current Ratio(4) 1.63 1.61 1.96 1.63 1.96
Net Debt(5) 1,392,668 1,253,024 1,196,777 1,392,668 1,196,777
Net Debt/EBITDA (the last 12 months) 1.52 1.43 1.32 1.52 1.32
Average Shareholders Equity 3,881,150 3,799,279 3,600,150 3,809,222 3,543,340
ROE(6) 13.0% 10.4% 13.1% 10.9% 11.1%
Recurrent ROE 12.5% 10.4% 11.4% 10.7% 10.2%
Shares
Earnings per Share (R$)(7) 0.2292 0.1795 0.2156 0.5661 0.5374
Closing Share Price (R$) 13.29 10.63 8.61 13.29 8.61
Book Value per Share (R$) 7.17 6.94 6.61 7.17 6.61
Shares Held in Treasury (shares) 1,769,993 1,889,486 1,849,486 1,769,993 1,849,486
Market Capitalization (R$’000)(8) 7,286,688 5,826,817 4,719,880 7,286,688 4,719,880
(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): which is a measure of operational performance.(2) Extraordinary Events: in 2012, operating income was impacted in (+) R$6,367 thousand gain resulting from causes related to PIS Semiannual whose impact on net income was
(+) R$4,202 thousand. In 2011, the events of this nature refer to sale of property.(3) Net Margin: result obtained by dividing net earnings by net revenue.(4) Current Ratio: current assets divided by current liabilities. Indicates the availability in R$ to meet every R$ of short-term obligations.(5) Net Indebtedness: total financial debt (–) cash.(6) ROE (Return on Equity): measure of performance given by the ratio of net earnings in the period, annualized in the quarters, to average net equity.(7) Net Earnings per Share: calculated by dividing the profit attributable to the Company’s shareholders, by the weighted average quantity of ordinary shares in issue during the
period, excluding ordinary shares held in treasury. This indicator has been adjusted for periods prior to May 5, 2011, as result of the 20% share bonus issue, to allow compari-
son between the periods.(8) Market Value: calculated from the share price at period end multiplied by the number of shares (550,053,521 shares as of the 3rd quarter of 2012), net of treasury stock.
3FACT SHEET 3Q2012
As a way of fueling growth in the domestic economy, the gov-
ernment has once again made use of incentive measures.
Specifically, in the case of Duratex, metal bathroom fittings and
vitreous chinaware have benefited from the reduction in IPI tax
(tax on industrialized products), while the furniture sector, in
addition to enjoying a zero IPI tax rate, also benefited from a re-
duction in the tax burden on payrolls. Instead of collecting 20%
of social contribution directly on payrolls, a fixed rate of 1% is
now collected on sales. This last benefit was extended to the
vitreous chinaware segment, starting in 2013. This benefit will
generate an additional 1 percentage point of operational mar-
gin at the Deca Division, according to initial estimates. Another
important measure was adopted via the reduction of energy
cost that should generated an approximate 7% benefit in ex-
penditures with such good.
The international scenario continues uncertain, provoking
volatility in the markets, whether due to the insecurity caused
by uncertainty about the ability of European block countries to
roll over their debts and at what cost, or general doubts about
China’s capacity to maintain its rate of economic growth.
STRATEGIC MANAGEMENT Being somewhat removed from international events, and con-
fident in the strength of its markets, Duratex took another step
in implementing its strategy to expand the markets in which
it operates, announcing, in September, the signing of a bind-
ing agreement for the acquisition of Thermosystem Indústria
Eletro Eletrônica Ltda., a specialized company in the manufac-
ture of electronic shower units and solar heating systems. This
is an innovative company, having launched the first “electronic
shower” in Brazil and having gained an increasing reputation
in the last few years as a manufacturer of products with good
design, an innovative approach and added value – all attributes
that are greatly valued by Duratex, and present in the products
of Deca and Hydra. The price tag of the acquisition has been
estimated at R$63 million, which is dependent on approval by
CADE, the Brazilian anti-trust authority.
This move comes together with two others that took place
in May, which should both contribute to improving Duratex’s
positioning with respect to its competitors. Firstly, the com-
pany announced the signing of an agreement to subscribe
to a substantial stake of 25% in Tablemac, a leading com-
pany in the manufacture of MDP and MDF wood panels in the
Colombian market. As a result of this stake, Duratex gained
control of the Colombian company, and now has the power
to nominate three board members of the total of five that
make up the governing body of that company. At the begin-
ning of November, the public share offering should be con-
cluded, which could mean that Duratex’s stake in Tablemac
increases to as much as 37%. From this third quarter, the
Colombian operation shall be recognized in the statements
of Duratex by the ownership equity method and, in this case,
just one month due to the subscription date.
A second move involved the acquisition of a bronze indus-
trial valve manufacturing unit (Metalúrgica Ipê, Mipel) from
Lupatech located in Jacareí/SP for R$45 million, which was
paid on October 2, 2012. This transaction guarantees Deca’s
entry into the industrial valve segment, as well as opening
up the possibility of increasing its current production of
valves and stop cocks for residential use, seeing that this
unit is currently only operating in one shift.
It should be borne in mind that these acquisitions are part
of the Company’s wider-reaching expansion plans. At the
Deca Division expansion is underway at the unit in Jundiaí/
SP, to increase capacity by 1.2 million pieces a year, raising
total capacity in the metal bathroom fittings segment to
18.2 million a year. In the vitreous chinaware segment, the
inauguration is planned, at the beginning of 2013, of a new
unit in Queimados/RJ, with an annual production capacity of
2.4 million pieces. While at the Wood Division two important
investments are being carried out, the first of which being
the inauguration, in 2013, of a new MDF plant in Itapetinin-
ga/SP, with an effective capacity of 520,000 m3 a year, with
the second investment involving the removal of a produc-
tion bottleneck at the MDP panel production unit at Taquari/
RS, thus raising production capacity to 670,000 m3.
These investments are based on the good prospects of the
Company’s operational segments, with the purpose of im-
proving its competitive position.
4FACT SHEET 3Q2012
SuSTAINAbILITY In September, Duratex’s shares were chosen to be part of
one of the most prestigious and select sustainability mar-
ket index, the Dow Jones Sustainability World Index (DJSWI).
Launched in 1999, it is the first global index that integrates
the monitoring of economic and socio-environmental per-
formance of companies, with a focus on the creation of
long-term value. Definition of the make-up of the index
portfolio involves a rigorous analysis process and includes
external verification by Deloitte. The resulting defined port-
folio consists of companies that have been outstanding in
their respective sectors of operation. For the 2012/2013
version of the index, 2,500 companies were invited from 58
different sectors of operation, with representatives from 30
different countries in the Americas, Europe, Asia, Africa and
the Southwest Pacific. Of these, 340 were chosen to be part
of this select portfolio. 34 criteria were evaluated in the en-
vironmental, economic and social areas. In the evaluation
process, the Company obtained an absolute score of 79,
placing it in the top 10%, with a rating of 93%, having ranked
best within its sector in five criteria, of particular note being
Crisis and Risk Management, Engagement of Stakeholders
and International Production Standards. Duratex was the
only Latin American company from the construction mate-
rials sector to be included in the index.
This market recognition is in line with our Mission “to meet
our customer’s requirements with excellence, by de-
veloping and offering products and services that con-
tribute to the improvement of people’s quality of life,
while generating wealth in a sustainable manner.”
CONSOLIdATEd FINANCIAL HIGHLIGHTS (IFRS)
Net RevenueNet revenue came to a record amount of R$2.5 billion for the
year-to-date, up 11.7% year-on-year. This growth was mainly due
to the 13.0% increase in shipment volumes by the Wood Division,
which reached an unprecedented figure of 1,935,120 m³ year-
to-date, and Deca Division up 2.1%, besides the improvement
of their respective unitary net revenue by 1.1% and 5.1%. In the
third quarter, revenue also set a new record, of R$911.2 million,
being up 15.4% compared to the same period in 2011, and an in-
crease of 12.6% on the immediately preceding period. This result
was due to the improvement in unit net revenue, in both divi-
sions, and the improved level of shipment volumes in the Wood
Division, which was also higher than in previous quarters.
The domestic market remains the main destination of sales,
accounting for approximately 95% of the total in the quarter
and year-to-date.
R$‘000 3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %Net Revenue 911,220 809,054 12.6% 789,775 15.4% 2,458,059 2,200,821 11.7%Domestic Market 868,890 772,752 12.4% 754,725 15.1% 2,346,335 2,104,159 11.5%Export Market 42,330 36,302 16.6% 35,050 20.8% 111,724 96,662 15.6%
95.4
4.6
NET REVENuE FOR THE dOMESTIC/ExPORT MARKET (% IN 3Q2012)
Domestic market
Export market
35
17 1
18
217
NET REVENuE bY OPERATIONAL AREA (% IN 3Q2012)
MDF/Laminated FlooringVitreous chinaware
Components
Metal bathroom fittings
HardboardMDP
5FACT SHEET 3Q2012
Cost of Goods Sold The cost of goods sold, net of depreciation, amortization
and depletion, and the net variation in the fair value of
biological assets, in other words, the cash cost, came to a
total of R$1,373.8 million for the year-to-date, an increase
of 9.5% compared to 2011. This increase was due to the rise
in variable costs, as a result of a higher rhythm of economic
activity, as well as higher labor costs.
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %R$‘000Cash COGS (503,125) (452,534) 11.2% (450,493) 11.7% (1,373,772) (1,254,479) 9.5%Variation in Fair Value of Biological Asset 35,305 36,413 -3.0% 37,194 -5.1% 104,641 100,490 4.1%Depletion Tranche of Biological Asset (39,976) (41,096) -2.7% (36,108) 10.7% (115,657) (105,381) 9.8%Depreciation, Amortization and Depletion (83,377) (75,255) 10.8% (63,725) 30.8% (222,048) (185,934) 19.4%Gross Profit 320,047 276,582 15.7% 276,644 15.7% 851,223 755,518 12.7%GROSS MARGIN 35.1% 34.2% - 35.0% - 34.6% 34.3% -
3Q11 3Q121Q124Q11 2Q12
769.
573
7.8
809.
191
1.2
35.0 35.1
33.3
34.5
34.2
NET REVENuE (IN R$ MILLION) ANd GROSS MARGIN (%)
789.
8
COST OF GOOdS SOLd (COGS) 3Q2012 (%)WOOd dIVISION
Wood(*)
46 Raw materials and other materials
Fuel
Labor
Electric power
Depreciation and amortization
19
39
13
10
(*) Includes depletion on the cost of wood.
Under the heading of depreciation, amortization and depletion,
item (1) in the table below, there were events related to amorti-
zation of the client portfolio, according to CPC 15 of IFRS, of both
Satipel and Elizabeth, coming to an approximate total of R$6.4
million per quarter, which is to be recurring for the next 15 years.
The higher volumes shipped and the improved pricing base
together resulted in a year-on-year increase in gross profit
of 12.7%, to R$851.2 million, which contributed to expanding
gross margin to 34.6% in 2012.
43
40
4
58
COST OF GOOdS SOLd (COGS) 3Q2012 (%)dECA dIVISION
Raw materials and other materials
Labor
Electric power
Depreciation and amortizationFuel
6FACT SHEET 3Q2012
SALES ExPENSESSales expenses totaled R$100.9 million in the quarter, an increase of 6.6% compared to the immediately preceding quarter,
in the year-to-date total of R$279.8 million with annual growth of 9.5%. The growth was due to higher level of shipments and,
consequently, expenses linked to freight. Regarding net revenue, however, this type of expenditure is being diluted.
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %R$‘000
Sales Expenses (100,928) (94,712) 6.6% (89,873) 12.3% (279,755) (255,551) 9.5%
% OF NET REVENuE 11.1% 11.7% - 11.4% - 11.4% 11.6% -
3Q11 4Q11 1Q12 2Q12 3Q12
88.4
84.1 94
.710
0.9
89.9
11.4
11.5
11.411.1
11.7
SALES ExPENSES (IN R$ MILLION) ANd % OF NET REVENuE
General and Administrative Expenses General and administrative expenses totaled R$27.9 million
in the 3rd quarter of 2012 and R$81.4 million for the year-to-
date. Compared to the immediately preceding quarter, there
was a decrease of 4.4% in this expense category as a con-
sequence of expense reduction initiatives. In relation to net
revenue, there was some expense dilution, both on an annual,
as well as a quarterly basis.
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %R$´000
General and Administrative Expenses (27,993) (29,293) -4.4% (27,721) 1.0% (81,441) (78,691) 3.5%
% OF NET REVENuE 3.1% 3.6% - 3.5% - 3.3% 3.6% -
7FACT SHEET 3Q2012
EbITdAAs a way of providing more transparency in the calculation of the make-up of this operational performance indicator, we provide a rec-
onciliation table below, based on operating profit before financial results. In addition to depreciation, amortization and depletion, the
following other non-cash events are disregarded in the make-up of this indicator: variation in the fair value of biological assets and the
depletion tranche of the biological assets in addition to employee benefits.
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %EbITdA Reconciliation R$‘000Operating Profit Before Financial Results 190,258 149,886 26.9% 178,560 6.6% 475,958 445,148 6.9%Depreciation/Amortization/Depletion 90,632 83,436 8.6% 72,013 25.9% 245,681 211,000 16.4%Variation in Fair Value of Biological Assets (35,304) (36,413) -3.0% (37,194) -5.1% (104,640) (100,490) 4.1%Depletion Tranche of Biological Assets 39,976 41,096 -2.7% 36,108 10.7% 115,657 105,381 9.8%Employee Benefits (5,639) (722) 681.0% (7,393) -23.7% (6,618) (10,471) -36.8%EBITDA 279,923 237,283 18.0% 242,094 15.6% 726,038 650,568 11.6%EBITDA Margin 30.7% 29.3% - 30.7% - 29.6% 29.5% -Extraordinary Event(1) (6,367) 0 - (25,820) - (6,367) (39,888) -Recurrent EbITdA 273,556 237,283 15.3% 216,274 26.5% 719,671 610,680 17.9%Recurrent EbITdA Margin 30.0% 29.3% - 27.4% - 29.3% 27.7% -
(1) 3Q12: Tax recuperation (PIS). 2011: Sale of property.
As with net revenue, EBITDA in the quarter and for the year-
to-date amounted to R$279.9 million and R$726.0 million,
respectively, both figures setting a new record. This impor-
tant evolution of operating income is tied to the economies
of scale associated with an improvement in net revenue unit
and management costs in the period. Even disregarding the
extraordinary event, which refers to the successful outcome
of the Company’s case contesting the charging of PIS, the re-
curring result for the quarter of R$273.6 million, and R$719.7
for the year-to-date period. There were, including, changes in
operating margins that ended the quarter at 30.0%.
73.0
27.0
ORIGIN OF EbITdA IN 3Q12 (% IFRS)
Wood division
Deca division
8FACT SHEET 3Q2012
NET EARNINGS Net earnings amounted to R$310.3 million for the year-
to-date, and R$125.7 million for the quarter, an improve-
ment on the result for the same periods of last quarter
and year. This result reinforces the previously discussed
operational improvement. The net effect of the PIS in
2012 was a result of (+) R$4.2 million, bringing the cumu-
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %After adjustments IFRS R$‘000
Net Earnings 125,663 98,401 27.7% 118,214 6.3% 310,311 295,473 5.0%
Extraordinary Event(1) (4,202) 0 - (15,881) - (4,202) (25,165) -
Recurring Net Earnings 121,461 98,401 23.4% 102,333 18.7% 306,109 270,308 13.2%
ROE 13.0% 10.4% - 13.1% - 10.9% 11.1% -
Recurrent ROE 12.5% 10.4% - 11.4% - 10.7% 10.2% -
VALuE AddEd Value added in the semester totaled R$1,345.1 million, an
increase of 9.7% compared to that in the previous year. Of
this amount, R$463.1 million, equivalent to 14.6% of the rev-
enues obtained, and 34.4% of the total value added, went to
the federal, state and municipal governments in the form of
taxes and contributions.
34.4
11.6
30.9
23.1
dISTRIbuTION OF VALuE AddEd IN 1Q2012 (%)
Remuneration for Labor
Remuneration to Shareholders
Remuneration in Terms of Financing
Remuneration to Government
(1) 2011: Net result from the sale of real-estate assets.
2012: Tax recovery (PIS)
lative recurring income to R$306.1 million, or R$121.5 mil-
lion in the quarter.
Recurring ROE for the quarter, on an annualized basis, amount-
ed to 12.5%, which showed a significant operational improve-
ment compared to the immediately preceding period, when
return on equity amounted to 10.4%.
INdEbTEdNESS Consolidated gross indebtedness at the end of September
totaled R$2,250.1 million, equivalent to net debt of R$1,392.7
million, an increase of 11.1% compared to the same period in
2011. This increase refers to the expansion plans underway
at the Deca and Wood divisions, besides the disbursement
made for the acquisition of a relevant interest in Tablemac.
Net debt equals R$1.52 x EBITDA, for the last 12 months, and
35.3% equity at the end of the period, which is considered
low. In the year were contracted R$480.1 million in new loans
and amortized R$275.9 million.
The net financial result for the year was (-) R$90.2 million,
stable compared to that for the previous year.
9FACT SHEET 3Q2012
09/30/2012 06/30/2012 Var. R$ 09/30/2011 Var. R$R$´000
Short-Term Debt 855,717 789,495 66,222 584,854 270,863
Long-Term Debt 1,394,688 1,271,539 123,149 1,322,915 71,773
Total Indebtedness 2,250,405 2,061,034 189,371 1,907,769 342,636
Cash And Equivalents 857,737 808,010 49,727 710,992 146,745
Net debt 1,392,668 1,253,024 139,644 1,196,777 195,891
Net debt/Shareholders’ Equity (in %) 35.3% 32.8% - 32.9% -
4Q/ 2012
2013 2014 20152016 and
after-wards
553,
605
606,
870
370,
160
380,
808
dEbT AMORTIzATION SCHEduLE (IN R$‘000)
1,394.7
855.7
GROSS dEbT AT THE ENd OF SEPTEMbER/2012 (IN R$ MILLION)
Short term
Long term
91.5
8.5
ORIGIN OF dEbT (%)
National currency
Foreign currency*
FINANCIAL REVENuES ANd ExPENSES
3Q12 2Q12 Var. R$ 3Q11 Var. R$ Jan-Sep/12 Jan-Sep/11 Var. R$R$´000
Financial Revenues 20,246 24,129 (3,883) 39,096 (18,850) 68,418 74,714 (6,296)
Financial Expenses (52,110) (54,161) 2,051 (68,582) 16,472 (158,594) (165,410) 6,816
Net Financial Result (31,864) (30,032) (1,832) (29,486) (2,378) (90,176) (90,696) 520
(*) 100% hedge
338,
962
10FACT SHEET 3Q2012
OPERATIONS
deca division
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %Shipments (‘000 pieces)
Basics 2,480 2,091 18.6% 2,321 6.8% 6,512 6,522 -0.2%
Finishing 4,437 4,134 7.3% 4,459 -0.5% 12,654 12,254 3.3%
Total 6,917 6,225 11.1% 6,780 2.0% 19,165 18,776 2.1%
Financial Highlights (R$‘000)
Net Revenue 309,357 283,628 9.1% 287,690 7.5% 863,122 804,348 7.3%
Domestic Market 295,486 272,060 8.6% 276,659 6.8% 828,398 775,859 6.8%
Export Market 13,871 11,568 19.9% 11,031 25.7% 34,724 28,489 21.9%
unit Net Revenue (in R$ per piece shipped) 44.72 45.56 -1.8% 42.43 5.4% 45.04 42.84 5.1%
Cash unit Cost (in R$ per piece shipped) (25.78) (26.49) -2.7% (24.17) 6.7% (25.72) (24.30) 5.8%
Sales Expenses (43,727) (42,967) 1.8% (41,602) 5.1% (124,023) (113,699) 9.1%
General and Administrative Expenses (12,017) (12,323) -2.5% (9,646) 24.6% (34,901) (27,381) 27.5%
Operating Profit before Financial Results 61,937 48,326 28.2% 59,395 4.3% 167,370 173,460 -3.5%
Depreciation and Amortization 15,199 15,069 0.9% 12,141 25.2% 45,119 37,478 20.4%
Employee Benefits (1,541) (173) 790.8% (2,585) -40.4% (1,822) (3,676) -50.4%
EbITdA 75,595 63,222 19.6% 68,951 9.6% 210,667 207,262 1.6%
EbITdA Margin 24.4% 22.3% - 24.0% - 24.4% 25.8% -
Extraordinary Event (1) 2,275 - - - 2,275 - -
Recurring EbITdA 73,320 63,222 16.0% 68,951 6.3 208,392 207,262 0.6
Recurring EbITdA Margin 23.7% 22.3% - 24.0% - 24.1% 25.8% -
Shipments amounted to a record volume of 6.9 million
pieces in the quarter, exceeding the figure of 6.8 million in
the same period in 2011. By the same token, accumulated
shipments for the year to date reached record levels. This
level of shipments resulted in a 9.1% increase in net rev-
enue for the quarter. For the year to date, revenues were up
7.3%, basically as a consequence of the 5.1% increase in net
unit revenue. Gains in scale, the reduction in cash cost and
initiatives focused on reducing operational expenses, all led
to an increase in recurring EBITDA in the quarter of 16.0%,
to R$73.3 million. This performance corresponded to recur-
ring EBITDA margin of 23.7%, higher than the figure of 22.3%
in the immediately preceding period. Compared to 2011,
EBITDA margins were down, basically due to the alteration to
administrative expense allocations between the divisions,
increasing the amount allocated to the Deca division.
For the year-to-date, the 6.8% increase in revenue in the
domestic market was higher than the sector average, as
measured by the ABRAMAT index. During the period, this in-
dex showed an increase of 1.3%, so reflecting the strength
of the Deca brand-name and the benefits of the move to
geographically diversify the Company’s plants begun in
2008, bringing the Company even closer to its consumers.
As a way of strengthening its presence in the market, Deca
participated at various events, such as the 3rd Green Build-
ing Brazil event, in addition to having a presence at the 5th
Brazilian Congress for the Development of Hospital Build-
ings and the 54th National Hotel Congress. As a way of keep-
ing its product line in alignment with the new market trends,
six new projects were launched in the period in the vitreous
chinaware segment, of particular note being the children’s
line Studio Kids, and three new metal bathroom fittings proj-
ects, of note being the built-in Hydra lavatory cistern.
HIGHLIGHTS
(1) Tax recovery (PIS).
11FACT SHEET 3Q2012
54.9
19.8
13.0
12.3
dECA – SALES bREAKdOWN 3Q2012 (%)
Retail
Others
Builders
Wholesalers
During the period, Deca received a number of recognitions,
of note being the Idea – Ouro Award for the Twin Spa shower,
in the Bathrooms and Spas category, and the Pini Award for
first place in the vitreous chinaware and metal bathroom
fittings categories.
Wood division
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %Shipments (in m3)
Standard 428,622 368,874 16.2% 364,054 17.7% 1,151,638 1,031,837 11.6%
Coated 276,298 257,203 7.4% 247,642 11.6% 783,482 681,328 15.0%
TOTAL 704,920 626,077 12.6% 611,696 15.2% 1,935,120 1,713,165 13.0%
Financial Highlights (R$’000)
Net Revenue 601,863 525,426 14.5% 502,085 19.9% 1,594,937 1,396,473 14.2%
Domestic Market 573,404 500,692 14.5% 478,066 19.9% 1,517,937 1,328,300 14.3%
Export Market 28,459 24,734 15.1% 24,019 18.5% 77,000 68,173 12.9%
unit Net Revenue (in R$ per m3 shipped) 853.80 839.24 1.7% 820.81 4.0% 824.21 815.14 1.1%
Cash unit Cost(1) (in R$ per m3 shipped) (460.73) (459.40) 0.3% (468.60) -1.7% (455.20) (465.97) -2.3%
Sales Expenses (57,201) (51,745) 10.5% (51,745) 10.5% (155,732) (141,802) 9.8%
General and Administrative Expenses (15,976) (16,970) -5.9% (16,970) -5.9% (46,540) (51,310) -9.3%
Operating Profit before Financial Results 128,321 101,560 26.4% 119,165 7.7% 308,588 271,688 13.6%
Variation in Fair Value of Biological Assets (35,304) (36,413) -3.0% (37,194) -5.1% (104,640) (100,490) 4.1%
Depletion Tranche of Biological Assets 39,976 41,096 -2.7% 36,108 10.7% 115,657 105,381 9.8%
Depreciation, Amortization and Depletion 75,433 68,367 10.3% 59,872 26.0% 200,562 173,522 15.6%
Employee Benefits (4,098) (549) 646.4% (4,808) -14.8% (4,796) (6,795) -29.4%
EBITDA 204,328 174,061 17.4% 173,143 18.0% 515,371 443,306 16.3%
EBITDA Margin 33.9% 33.1% - 26.5% - 32.3% 31.7% -
Extraordinary Event(¹) (4,092) 0 - (25,820) - (4,092) (39,088) -
Recurrent EbITdA 200,236 174,061 15.0% 147,323 35.9 511,279 403,418 26.7%
Recurrent EbITdA Margin 33.3% 33.1% - 29.3% - 32.1% 28.9% -
(1) 2011: Net result from the sale of real-estate assets.
2012: Tax recovery (PIS).
12FACT SHEET 3Q2012
54.8
13.9
6.1
25.2
WOOd – SALES bREAKdOWN 3Q2012 (%)
Furniture Industry
Construction Sector
Retail
Others
CAPITAL MARKETSAt the end of September 2012, Duratex had a market capi-
talization of R$7,286.7 million, taking the share price quote
at the end of the month of R$13.29. For the year-to-date pe-
riod, the share price showed an appreciation of 49.0%, while
the Bovespa Index depreciated by 4.7%.
On the BM&FBovespa spot market, 260.6 thousand trades
have been recorded in the shares of Duratex in the quar-
ter, with 88.1 million shares changing hands, representing
a total trading volume of R$1,083.7 million, or average daily
volume of R$17.2 million. This level of liquidity has ensured
the presence of the shares in the Ibovespa, an index which
is composed of approximately 60 shares, the main inclu-
sion criteria for which are aspects related to share liquid-
ity. Another important index in which the Company’s shares
are included is the ISE – the Corporate Sustainability Index.
In similar fashion to the Deca Division, both from the stand-
point of volume shipped as well as revenue reported, new
records were set in 2012, both for the quarter as well as the
year-to-date.
Total shipments amounted to 704.9 thousand m3 in the
quarter, up 12.6% and 15.2% compared to the immediately
preceding quarter, and the same period in 2011, respective-
ly. For the year-to-date, there was an increase of 13.0%, to
1,935.1 thousand m3. By way of comparison, industry ship-
ments for the domestic and export markets, as measured
by the ABIPA index for the nine-month period, showed an
increase of 10.4% in shipment volumes compared to 2011.
The combination of gains in scale, together with an increase
in net unit revenue that exceeded the rise in costs, resulted in
a significant improvement in recurring EBITDA of 15.0% com-
pared to the immediately preceding quarter, being up 35.9%
compared to the same period in 2011, to R$200.2 million, con-
tributing to this performance gains of scale and comparative
annual reduction of general and administrative expenses.
The performance of Tablemac was recognized by the equity
ownership method in the numbers of Duratex. Revenue from
Colombian operation for the period was R$12.5 million and
EBITDA R$1.6 million, this affected by events linked to the
pre-operational stage of the first line of MDF panels in that
market. It is one month of results, due to the date of sub-
scription date of the Tablemac´s shares by Duratex.
The extremely positive performance in the Brazilian opera-
tion, as a consequence of the recovery seen in the furniture
industry, was the result, in 2012, of the introduction of eas-
ier financing terms, in addition to tax incentives, thus level-
ing the playing field terms between furniture products and
white line goods.
As a way of strengthening the Company’s competitive ad-
vantages based on the variety of products that it offers in
the market, 18 new panel products were developed with de-
signs and innovations with respect to their finishes, in line
with international trends. These new product launches were
displayed at Formóbile, an important trade fair which brings
together companies in Brazil and abroad, representing the
various supply sectors in the furniture industry.
The Wood Division also received the Top Mobile award in the
MDF and MDP categories, for the most remembered brand-
name, for the 5th time running, these awards being promoted
by Alternativa Editorial. In its laminated flooring line, the Dura-
floor brand-name was awarded the Top of Mind prize at the Pini
Awards promoted by the magazine Casa & Mercado. Meanwhile,
the Biggest and Best awards promoted by Exame magazine,
cited Duratex as the best company in the wood and pulp sector.
13FACT SHEET 3Q2012
This index consists of 51 companies that are outstanding
in the application of the international sustainability Triple
Bottom Line concept, that evaluates social, environmental
and economic-financial aspects in an integrated manner,
incorporating practices related to corporate governance,
characteristics of the business, nature of the product and
climate change.
The shares of Duratex are listed on the BM&FBovespa Novo
Mercado, a differentiated segment of the market for com-
panies that, on a spontaneous basis, are outstanding for
the adoption of the highest standards of corporate gov-
ernance. In this section of the market, the Company com-
mits itself to arbitration through the BM&FBovespa Novo
Mercado Arbitration Chamber for the resolving of any and
every dispute or controversy arising among the Company,
shareholders and managers.
SOCIAL ANd ENVIRONMENTAL RESPONSIbILITY At the end of the period, the Company had 10,627 employees, to whom a total remuneration of R$82.0 million was allocated in
the quarter, totaling R$247.2 in the year.
40.0
0.310.6
20.02.0
27.1
SHAREHOLdING STRuCTuRE AS AT SEPTEMbER 2012 (%)
Itaúsa and FamiliesForeign Investors
Others
Treasury
Pension FundsLigna and Family
3Q12 2Q12 % 3Q11 % Jan-Sep/12 Jan-Sep/11 %Values (in R$‘000)
Employees (quantity) 10,627 10,615 0.1% 10,806 -1.7% 10,627 10,806 -1.7%
Remuneration 82,004 84,217 -1.0% 90,765 -7.9% 247,233 256,257 -3.5%
Obligatory Legal Charges 47,395 48,698 -2.7% 45,609 3.9% 137,716 134,321 2.5%
Differentiated Benefits 16,101 16,471 -2.2% 15,288 5.3% 49,629 43,538 14.0%
The Company implemented a series of environmental initia-
tives during 2012, spending a total of R$20.3 million in this
area, of particular note being the treatment of effluents,
the collection of residues, and the maintenance of its for-
estry areas. This amount was 9.1% higher than investment
of this nature carried out in 2011.
During 2012, R$ 5.9 million was paid out for the financing of
projects with an educational and socio-environmental fo-
cus, as well as incentives for culture and sport.
By the end of September, the following projects had been
completed: the “Community Library Project”, with the in-
stallation of three libraries in municipal schools in Botu-
catu/SP, Uberaba/MG and Cabo de Santo Agostinho/PE, as
well as the revitalization of two existing libraries in the
municipalities of Taquari/RS and Estrela do Sul/MG. The
“Exhibition Frontiers Project”, which brought a number of
Brazilian pieces and a collection of objects developed by
designer Marcelo Rosenbaum in conjunction with the com-
munity of Chapada do Araripe in the State of Piauí, to the
In addition to the pre-requisites of the Novo Mercado, the
Company has a differentiated dividend distribution policy,
equivalent to 30% of adjusted net earnings, while 1/3 of its
Board of Directors consists of independent members, with
the Company also adhering to the Abrasca code for self-
regulation and good practices.
14FACT SHEET 3Q2012
Palazzo Giureconsulti/Affari in Milan (Italy); and “The Path
to Peace Project” an event (involving walks and races),
which celebrates peaceful living and tolerance between
people, ethnic groups and religions, as well as the diversity
and welcoming spirit that is present in Brazil.
Of the various ongoing projects, of particular note are: “The An-
nual Activity Plan for 2012 for the Modern Art Museum in São
Paulo – MAM”; e “A Step Forward for Education”, which benefits
needy children and adolescents from the community of Para-
isópolis through the practice of football and supporting activi-
ties, and integration with the community and society.
Other projects that are in progress and receive support of
Duratex are: “Formare” which contributes to the training
of young people in social risk, by providing ongoing profes-
sional education Agent Commercial and Administrative Ser-
vices; “Area Piatan of Environmental Experience” and “Buriti
Environmental Education Center”, located in Agudos/SP and
Estrela do Sul/MG, respectively, with the objective of dis-
seminating the management of sustainable forestry plan-
tations, through monitored visits by schools, customers and
the community; “The Tide Setúbal Joinery School”, which
aims to train youngsters in the municipality of Agudos/SP
in three professional qualifications: joinery, microcomput-
er operation and marketry; “School of Modern Carpentry”,
which offers training courses and professional training to
youngsters from low-income communities and profession-
als in the furniture segment, and “Athlete of the Future”, in
partnership with SESI-SP and the Municipal Authorities of
Agudos, Botucatu, Itapetininga, Jundiaí and Lençóis Paulis-
ta, which provides children and adolescents with the prac-
tice of sports, such as football, judo, indoor football, bas-
ketball, swimming, volleyball, athletics, and lawn tennis, all
initiatives focused on developing motor abilities, initiation
of specific sports and the fine-tuning of abilities in a cho-
sen type of sport, touching on transverse themes such as
ethics, cultural diversity, through environment, sexual and
health orientation, among others.
On August 16 and 22, Duratex held its 2nd Stakeholders Meet-
ing. The objective of these events was to decide on the most
important themes to be developed and introduced into the
strategy and management of the Company.
On August 16, a Panel of Specialists was held, bringing to-
gether 25 specialists on the environment, society, work
relations, sustainability reporting based on the Global Re-
porting Initiative, corporate governance, capital markets
and professionals in the following segments: vitreous chi-
naware, metal bathroom fittings, forestry and wood pan-
els. The group debated themes about the financial, social
and environmental aspects of sustainability in the Com-
pany’s businesses.
On August 22, a Panel of Employees was held, which brought
together 47 representatives from various areas and posi-
tions in the business units to discuss the program “This Is
How We Are” and the theme ”Staff Management at Duratex”.
The principle themes will be considered in the Company’s
strategy and will be covered in the next 2012 Annual and
Sustainability Report 2012.
Worthy of mention was the fact that Duratex was the winner
at the Abrasca Awards in the category Outstanding Sector
Performance 2012 – Paper and Pulp, for the best instance
of creating value in 2011. This is the 14th addition of these
awards that are promoted by the Brazilian Listed Compa-
nies Association. By means of a rigorous and technical se-
lection process applied to all the companies listed on the
BM&FBovespa, the following aspects were considered for
the period from 2009 to 2011: company share value, cor-
porate governance quality, investor relations, risk manage-
ment, environmental policy and social action. The winners
were chosen by the Award Committee, which consisted of
representatives from the principal capital market entities:
ABRAPP, ABVCAP, AMEC, ANBIMA, ANCORD, ANEFAC, APIMEC,
BM&FBovespa, FIPECAFI, IBEF, IBGC, IBRACON and IBRI, serving
to underline the performance of the award received.
15FACT SHEET 3Q2012
Additionally, in the quarter, the Company commemorated
the following other important awards received:
• For the 5th time running Duratex won the Top Móbile awar-
ds, one of the most important in the Brazilian furniture
sector. The Company was ranked first in the MDP and MDF
wood panel categories, in the Industry Suppliers segment.
The brand-name Deca and Durafloor were recognized as
the “most remembered” by the public in their segments of
operation, andat the 15th edition of the Top of Mind awards
hosted by the magazine Casa & Mercado;
• Best company in the Construction Materials and Deco-
ration segment, at the first Annual Época 360th Business
Event, a special edition by Editora Globo;
• Sector Champion in the Construction Materials and Deco-
ration segment at the 12th edition of the Annual Valor 1000
event, hosted by the newspaper Valor Econômico;
• Best company in the Construction Materials and Decora-
tion segment, and the best in 2012, in a special edition
hosted by the magazine Isto É Dinheiro;
• In the Forestry area, Duratex was elected as the best company
in the wood and pulp sector in the 2012, according to the “Big-
gest and Best” ranking sponsored by Exame magazine.
OMbudSMAN SERVICEIn the area of improving processes and procedures related
to good corporate governance practices, Duratex’s Ombu-
dsman Service was launched in May, with the goal of esta-
blishing a dialogue channel between the company and its
public relations.
With this objective, was held in September an internal cam-
paign aimed at disseminating the channel for all employe-
es. Collecting boxes were installed in units and personnel
carrier’s buses of Forest area that allow any employee to
have access to the channel, including those who work in
the field. The channel has received expressions of all units
and brought contributions to the improvement of proces-
ses and behaviors, besides acting in the consolidation of the
company’s values.
ACKNOWLEdGMENTSWe are deeply grateful for all the support received from our
shareholders, the dedication and commitment of our em-
ployees, the partnerships we have with our suppliers and
the confidence placed in us by our clients and consumers.
The Management
16FACT SHEET 3Q2012
ANNEx – CONSOLIdATEd FINANCIAL STATEMENTS(According to International Financial Reporting Standards (IFRS), in compliance with CVM Instructions No. 457/07 and No. 485/10)
ASSETS (in R$‘000)
09/30/2012 AV% 06/30/2012 AV% 09/30/2011 AV%IFRS – Assets (in R$‘000)
Current 2,237,932 29.9% 2,089,731 29.2% 1,958,858 29.3%
Cash and Equivalents 857,737 11.5% 808,010 11.3% 710,992 10.6%
Client Accounts Receivable 850,191 11.4% 731,571 10.2% 700,378 10.5%
Inventory 394,705 5.3% 411,496 5.7% 404,639 6.0%
Amounts Receivable 45,917 0.6% 31,021 0.4% 31,867 0.5%
Recoverable Taxes and Contributions 71,128 1.0% 88,828 1.2% 92,299 1.4%
Other Assets 18,254 0.2% 18,805 0.3% 18,683 0.3%
Non-Current 5,246,841 70.1% 5,074,495 70.8% 4,735,795 70.7%
Linked Deposits 25,816 0.3% 21,282 0.3% 18,789 0.3%
Amounts Receivable 67,930 0.9% 62,623 0.9% 76,416 1.1%
Pension Plan Credits 84,727 1.1% 79,088 1.1% 77,274 1.2%
Recoverable Taxes and Contributions 41,881 0.6% 40,642 0.6% 27,874 0.4%
Deferred Income Tax and Social Contribution 77,903 1.0% 85,339 1.2% 77,642 1.2%
Investments in Subsidiaries 107,512 1.4% - - - -
Other Investments 772 0.0% 772 0.0% 652 0.0%
Fixed Assets 3,176,063 42.4% 3,108,084 43.4% 2,825,717 42.2%
Biological Assets 1,102,975 14.7% 1,108,972 15.5% 1,058,358 15.8%
Intangible Assets 561,262 7.5% 567,693 7.9% 573,073 8.6%
Total Assets 7,484,773 100.0% 7,164,226 100.0% 6,694,653 100.0%
17FACT SHEET 3Q2012
LIAbILITIES ANd SHAREHOLdERS’ EQuITY (in R$‘000)
09/30/2012 AV% 06/30/2012 AV% 09/30/2011 AV%IFRS – Liabilities (in R$‘000)
Current 1,371,102 18.3% 1,295,087 18.1% 998,666 14.9%
Loans and Financing 851,469 11.4% 786,844 11.0% 584,854 8.7%
Debentures 4,248 0.1% 2,651 0.0% - 0.0%
Suppliers 213,212 2.8% 180,350 2.5% 122,232 1.8%
Staff Obligations 131,084 1.8% 114,604 1.6% 116,488 1.7%
Accounts Payable 96,981 1.3% 79,878 1.1% 52,459 0.8%
Taxes and Contributions 73,672 1.0% 68,259 1.0% 78,836 1.2%
Dividends and Equity-on-Interest Payable 436 0.0% 62,501 0.9% 43,797 0.7%
Non-Current 2,168,152 29.0% 2,052,359 28.6% 2,057,950 30.7%
Loans and Financing 1,293,801 17.3% 1,171,445 16.4% 1,322,915 19.8%
Debentures 100,887 1.3% 100,094 1.4% -
Contingency Provisions 129,986 1.7% 141,801 2.0% 142,743 2.1%
Deferred Income Tax and Social Contribution 505,831 6.8% 502,773 7.0% 472,422 7.1%
Other Accounts Payable 137,647 1.8% 136,246 1.9% 119,870 1.8%
Shareholders' Equity 3,945,519 52.7% 3,816,780 53.3% 3,638,037 54.3%
Capital Social 1,550,240 20.7% 1,550,034 21.6% 1,550,000 23.2%
Cost of Share Issue (7,823) -0.1% (7,823) -0.1% (7,823) -0.1%
Capital Reserves 313,365 4.2% 311,492 4.3% 306,701 4.6%
Re-Valuation Reserves 85,081 1.1% 86,438 1.2% 90,714 1.4%
Profit Reserves 1,607,270 21.5% 1,480,527 20.7% 1,300,601 19.4%
Adjustments in Equity Valuation 415,053 5.5% 415,265 5.8% 416,461 6.2%
Shares Held in Treasury (21,576) -0.3% (23,032) -0.3% (22,712) -0.3%
Participation of Non-Controlling Shareholders 3,909 0.1% 3,879 0.1% 4,095 0.1%
Total Liabilities and Shareholders’ Equity 7,484,773 100.0% 7,164,226 100.0% 6,694,653 100.0%
18FACT SHEET 3Q2012
PROFIT ANd LOSS STATEMENT (in R$‘000)
3Q12Sep-30-12
2Q12 Jun-31-12 Var. % 3Q11
Sep-30-11 Var. % Jan-Sep2012
Jan-Sep2011 Var. %
Net Sales Revenue 911,220 809,054 12.6% 789,775 15.4% 2,458,059 2,200,821 11.7%
Domestic Market 868,890 772,752 12.4% 754,725 15.1% 2,346,335 2,104,159 11.5%
Export Market 42,330 36,302 16.6% 35,050 20.8% 111,724 96,662 15.6%
Variation in Fair Value of Biological Assets 35,305 36,413 -3.0% 37,194 -5.1% 104,641 100,490 4.1%
Cost of Goods Sold (Cogs) (503,125) (452,534) 11.2% (450,493) 11.7% (1,373,772) (1,254,479) 9.5%
Depreciation/Amortization/Depletion (83,377) (75,255) 10.8% (63,725) 30.8% (222,048) (185,934) 19.4%
Depletion of Biological Assets (39,976) (41,096) -2.7% (36,108) 10.7% (115,657) (105,381) 9.8%
Gross Profit 320,047 276,582 15.7% 276,643 15.7% 851,223 755,517 12.7%
Sales Expenses (100,928) (94,712) 6.6% (89,873) 12.3% (279,755) (255,501) 9.5%
General and Administrative Expenses (27,993) (29,293) -4.4% (27,721) 1.0% (81,441) (78,691) 3.5%
Management Fees (3,263) (3,210) 1.7% (3,106) 5.1% (9,581) (10,513) -8.9%
Other Operating Results, Net 2,907 519 460.1% 22,617 -87.1% (3,976) 34,336 -111.6%
Equity Income Result (512) - - - - (512) - -
Operating Profit Before Financial Results 190,258 149,886 26.9% 178,560 6.6% 475,958 445,148 6.9%
Financial Revenues 20,246 24,129 -16.1% 39,096 -48.2% 68,418 74,714 -8.4%
Financial Expenses (52,110) (54,161) -3.8% (68,582) -24.0% (158,594) (165,410) -4.1%
Profit Before Income Tax And Social Contribution 158,394 119,854 32.2% 149,074 6.3% 385,782 354,452 8.8%
Income Tax and Social Contribution - Current (21,315) (39,899) -46.6% (10,527) 102.5% (85,736) (63,973) 34.0%
Income Tax and Social Contribution – Deferred (11,416) 18,446 -161.9% (20,333) -43.9% 10,265 4,994 105.5%
Net Earnings for the Period 125,663 98,401 27.7% 118,214 6.3% 310,311 295,473 5.0%
Company Shareholders 125,633 98,250 27.9% 117,870 6.6% 310,003 294,948 5.1%
Participation of Non-Controlling Shareholders 30 151 -80.1% 344 -91.3% 308 525 -41.3%
19FACT SHEET 3Q2012
CASH FLOW STATEMENT (in R$‘000)
Cash Flow (in R$‘000) 3Q12 2Q11 Var 3Q11 Var 2012 2011 Var R$Operational Activities
Net Earnings for the Period 125,663 98,401 27,262 118,214 7,449 310,311 295,473 14,838
Items with no Cash Effect:
Depreciation, Amortization and Depletion 131,765 124,792 6,973 108,239 23,526 362,949 316,499 46,450
Variation in Fair Value of Biological Assets (35,305) (36,413) 1,108 (37,194) 1,889 (104,641) (100,490) (4,151)
Interest, Exchange Rate and Monetary Variations, Net 36,327 43,403 (7,076) 58,453 (22,126) 120,474 136,961 (16,487)
Ownership Equity Result 512 - 512 - 512 512 - 512
Provisions, Asset Write-Offs 12,114 (5,883) 17,997 (28,396) 40,510 11,707 (12,936) 24,643
Investments in Working Capital (39,683) (18,902) (20,781) (44,261) 4,578 (51,317) (125,782) 74,465
(Increase) Reduction in Assets
Client Accounts Receivable (118,839) (46,553) (72,286) (69,237) (49,602) (194,680) (136,105) (58,575)
Inventory 16,494 69 16,425 (7,340) 23,834 17,121 (39,936) 57,057
Other Assets (6,018) (9,141) 3,123 13,797 (19,815) (8,732) (3,918) (4,814)
Increase (Reduction) in Liabilities -
Suppliers 33,143 16,922 16,221 (2,040) 35,183 53,369 (5,341) 58,710
Staff Obligations 16,514 21,939 (5,425) 18,478 (1,964) 26,174 34,016 (7,842)
Accounts Payable 19,227 4,694 14,533 3,961 15,266 65,994 3,672 62,322
Taxes and Contributions 14,457 (321) 14,778 (6,885) 21,342 13,727 11,328 2,399
Other Liabilities (14,661) (6,511) (8,150) 5,005 (19,666) (24,290) 10,502 (34,792)
Cash Generated from Operational Activities 231,393 205,398 25,995 175,055 56,338 649,995 509,725 140,270
Investment Activities
Investments in Fixed And Intangible Assets (257,495) (214,969) (42,526) (79,673) (177,822) (585,019) (423,317) (161,702)
Cash used in Investment Activities (257,495) (214,969) (42,526) (79,673) (177,822) (585,019) (423,317) (161,702)
Financing Activities
New Funding 218,432 152,088 66,344 15,201 203,231 378,771 510,231 (131,460)
Debentures (10) (129) - 101,361 - 101,361
Amortization of Financing (72,776) (101,629) 28,853 (96,948) 24,172 (275,934) (333,249) 57,315
Dividends and Interest-on-Equity (71,192) (347) (70,845) (57,839) (13,353) (139,780) (159,427) 19,647
Shares Held in Treasury and Others 1,209 - 1,209 (6,343) 7,552 1,209 (10,915) 12,124
Cash Generated (used) in Financing Activities 75,663 49,983 25,680 (145,929) 221,592 65,627 6,640 58,987
Exchange Rate Variation on Cash and Equivalents 166 994 (828) 1,776 (1,610) 975 1,395 (420)
Increase (Reduction) in Cash in the Period 49,727 41,406 8,321 (48,771) 98,498 131,578 94,443 37,135
Initial balance 808,010 766,604 41,406 759,763 48,247 726,159 616,549 109,610
Closing balance 857,737 808,010 49,727 710,992 146,745 857,737 710,992 146,745