Corporate Presentation 4th quarter 2011 · Corporate Presentation 4th quarter 2011 . 2 Shareholder...

Corporate Presentation

4th quarter 2011

2

Shareholder Structure and Corporate Governance

Itaúsa*

39,9%

Ligna*

17,8%

Pension Funds

1,5%

Other Local

Investors

15,1%

Foreign

Investors

25,4%

Treasury

0,3%

Shareholder structure in December 2011

* Included the participation of families

Committees of the Board of Directors (and presidents): • Personnel, Governance and Nomination Committee (Álvaro Antonio Cardoso de Souza)

• Sustainability Committee (Fabio Schvartsman)

• Audit and Risk Management Committee (Alcides Lopes Tápias )

• Committee for Evaluation of Transactions with Related Parties* (Alcides Lopes Tápias)

* Composed solely of independent members

Total de ações emitidas:

550.035.331 (1)

(1) Shares in treasury:

1.889.486

Total of shares:

3

2010

Overcoming the crisis of 2009

Recovery of price base

Costs in balance

Tax exemption (IPI) until March

2010

Cost pressure starting in the second semester:

. Labor

. Metals

Recovery of price base

2011

Shipped volume: -1,9%

Net Revenue: +2,5%

Impacted by macro-prudential measures:

. Increase of interest rate

. Increase in reserve requirements on deposits

. Increase in the IOF

Cost pressure (resin)

Demand at 2010 level

2011

Shipped volume: +17,9%

Net Revenue: +20,1%

Continuing costs pressure

Sanitary ware:

Price increase

Start-up of a new kiln in Recife

Elizabeth acquisition( lower mix )

Metal Fittings:

Cost management

Start-up of new galvanoplastic equipment

Highlights

2005 2006 2007 2008 2009 2010 2011 4T10 3T11 4T11

1.413 1.861

2.037 2.263 2.352

2.962 3.065

744 832 778

MDF

( ! ) A v e r a g e G D P g r o w t h f o r t h e p e r i o d b e t w e e n 2 0 0 5 - 2 0 1 1 : 4 , 1 % a n n u a l l y

4

Total of Wood Panel Consumption in Brazil (Source: ABIPA in ’000 m³)

2005 2006 2007 2008 2009 2010 2011 4T10 3T11 4T11

2.102 2.186 2.548 2.633

2.431 2.885 2.985

730 807 734

MDP

+4,6%

-6,5%

+3,5%

+0,5%

-9,0%

+3,5%

ANNUAL CAPACITY (in ´000 m³) * NOMINAL EFFECTIVE * AVAILABLE *

MDF 4.800 4.080 3.660

MDP 4.470 3.800 3.420

Total 9.270 7.880 7.080 *Duratex estimates:

Effective annual capacity of the industry based on the lines already installed and minor investments requirements

Available: Without minor investments mentioned above

4Q10 3Q11 4Q11

4Q10 3Q11 4Q11

5

Building Materials Industry

Source: Associação Brasileira da Indústria de Materiais de Construção

ABRAMAT INDEX: Monthly indicator of sales performance of the Building Materials Industry

2011 2012 Forecast

4,5%

ABRAMAT INDEX – INTERNAL MARKET

Achieved and Projected for 2012

2,9%

6

Highlights by Division

Shipment (in ’000 m³) Shipment (in ’000 items)

2009 2010 2011 4T10 3T11 4T11

1.499,2

2.312,2 2.268,8

569,2 611,7 555,7

2009 2010 2011 4T10 3T11 4T11

19.800

21.639

25.505

5.413 6.780 6.729

-2,4%

-9,2%

+24,3%

-0,8%

Highlights:

• Shortening of installments credit in the furniture retail

• Reduction of inventories in furniture chain

• Price x Market Share

• Good moment of the construction segment

• Elizabeth acquisition (sanitary ware)

• Higher growth in economic sector

4Q10 3Q11 4Q11 4Q10 3Q11 4Q11

MDP

20,5%

MDF/

Laminated

Flooring

33,3%

Hardboard

8,1%

Components

0,4%

Metals

19,8%

Sanitary

ware

17,9%

Domestic

Market

95%

Foreign

Market

5%

2009 2010 2011 4T10 3T11 4T11

1.930,0

2.741,8 2.970,4

719,6 789,8 769,5

34,4% 40,8% 34,1% 40,1% 35,0% 33,3%

34,8% 39,4% 34,3 % 40,4% 35,8% 31,6%

Wood 1.172,8 1.830,3 1.876,0 474,0 502,1 479,5

Deca 757,2 911,5 1.094,4 245,6 287,7 290,0

7

Consolidated Net Revenue

+6,9%

-2,6%

Net Revenue (R$ mn)

Geographical Distribution of Sales 4Q11 (%) Net Revenue by product 4Q11(%)

IFRS

Before IFRS

Gross Margin (%)

4Q10 3Q11 4Q11

Deca: 37,7%

Wood: 62,3%

2009 2010 2011 4T10 3T11 4T11

3.141,9

3.452,5

3.692,8

3.452,5 3.638,0

3.692,8

8

2009 2010 2011 4T10 3T11 4T11

494,8

850,6 799,5

218,6 216,3 188,8

Financial highlights - IFRS Recurrent EBITDA (R$ mn) and Recurrent EBITDA Margin (%)

-13,6%

-12,7%

Wood 310,5 580,1 530,4 155,2 147,3 126,9

Deca 184,3 270,5 269,1 63,4 69,0 61,9

Recurrent Net Income (R$ mn) Equity (R$ mn) and Recurrent ROE (%)

2009 2010 2011 4T10 3T11 4T11

253,0

439,4

349,7

119,6 102,3 79,4

-33,6%

-22,4%

25,6% 31,0% 26,9% 30,4% 27,4% 24,5%

10,5% 13,3% 9,8% 14,0% 11,4% 8,7%

4Q10 3Q11 4Q11

4Q10 3Q11 4Q11 4Q10 3Q11 4Q11

-6,0%

-20,4%

2009 2010 2011 4T10 3T11 4T11

275,9

414,2

347,3

107,3 101,4 69,1 9

Financial highlights – Before IFRS Recurrent EBITDA (R$ mn) and Recurrent EBITDA Margin (%)

Recurrent Net Income (R$ mn) Equity (R$ mn) and Recurrent ROE (%)

2009 2010 2011 4T10 3T11 4T11

618,3

893,2 848,8

233,0 234,4 207,0

-11,2%

-11,7%

27,5% 32,6 % 28,6 % 32,4 % 29,7% 26,9%

Wood 418,6 602,3 558,4 160,7 158,1 138,2

Deca 199,7 290,9 290,4 72,3 76,3 68,8

-35,6%

-31,9%

2009 2010 2011 4T10 3T11 4T11

2.331,1 2.623,5

2.849,4 2.623,5 2.800,7

2.849,4

12,2 % 16,8% 12,7% 16,6% 14,7% 9,8%

4Q10 3Q11 4Q11

4Q10 3Q11 4Q11 4Q10 3Q11 4Q11

-5,0%

-16,2%

10

Reconciliation of Total Assets and Equity

TOTAL ASSETS

4Q11 3Q11 4Q10

Before IFRS (in R$’000) 5.656.456 5.553.312 5.011.223

Business Combination 728.437 733.919 757.805

Biological Assets 348.276 327.275 332.164

Employee Benefits 78.108 77.274 66.802

Other adjustments 2.873 2.873 2.873

After IFRS 6.814.150 6.694.653 6.170.867 Change 1.157.694 1.141.341 1.159.644

PATRIMÔNIO LÍQUIDO 4Q11 3Q11 4Q10

Before IFRS (in R$’000) 2.849.357 2.800.726 2.623.454

Business Combination 542.739 550.514 556.241

Biological Assets 229.862 216.001 219.228

Employee Benefits 51.551 51.001 44.089

Other adjustments 19.301 19.795 9.516

After IFRS 3.692.810 3.638.037 3.452.528 Change

843.453 837.311 829.074

11

Reconciliation of Consolidated EBITDA

Reconciliation EBITDA IFRS

R$´000

4Q11 3Q11 % 4Q10 % 2011 2010 %

Operating Profit Before

Financial Result 131.218 178.560 -26,5 196.616 -33,3 576.366 715.555 -19,5

Depreciation/ Amortization/

Depletion 79.400 72.013 10,3 63.686 24,7 290.400 240.003 21,0

Change in Fair Value of

Biological Assets (53.519) (37.194) 43,9 (34.354) 55,8 (154.009) (183.765) -16,2

Depletion Portion of Biological

Assets 32.517 36.108 9,9 31.804 2,2 137.898 132.173 4,3

Employee Benefits (835) (7.393) -88,7 (2.742) -69,5 (11.306) (10.964) 3,6

EBITDA 188.781 242.094 -22,0 255.010 -26,0 839.349 893.002 -6,0

EBITDA Margin 24,5% 30,7% - 35,4% - 28,3% 32,6% -

Extraordinary Events* 0 (25.820) - (36.444) - (39.888) (42.448) -

Recurrent EBITDA 188.781 216.274 -12,7 218.566 -13,6 799.461 850.554 -6,0

Recurrent EBITDA Margin 24,5% 27,4% - 30,4% - 26,9% 31,0% -

Before IFRS


Recurrent EBITDA Margin 26,9% 29,7% -

32,4% -

28,6% 32,6% -

* Extraordinary events:

• 2011 fixed asset sale

• 2010 tax recovery, mainly

12

Reconciliation of Net Income

NET INCOME 4Q11 3Q11 4Q10 2011 2010

Before IFRS (in R$’000) 69.072 117.257 131.186 372.492 442.064

Business Combination (4.099) (4.639) (3.949) (15.729) (15.213)

Biological Assets 13.862 717 1.683 10.634 34.051

Employee Benefits 552 4.879 1.810 7.463 7.236

Other Adjustments 0 0 12.723 0 (891)

After IFRS 79.387 118.214 143.453 374.860 467.247

Extraordinary events 0 (15.881) (23.855) (25.165) (27.817)

Recurrent Net Income in IFRS 79.387 102.333 119.598 349.695 439.430

Non-cash events that impacted results when compared to the same period of 2010 :

4Q11 2011

Biological Assets (increase in price of

wood and planted area in 2010)

12.178

(23.417)

Increase in depreciation, amortization

and depletion*

(10.371)

(33.262)

NET EFFECT 1.807

(56.679)

* Includes portions of COGS and administrative

Hardboard

MDP

MDF

100%

80%

74%

Retail

16%

Construction

1%

Other

9% Furniture

Industry

74%

13

Highlights by Division (IFRS)

2009 2010 2011 4T10 3T11 4T11

1.172,8

1.830,3 1.875,9

474,1 502,1 479,5

+1,1%

-4,5%

31,1% 36,6% 32,1% 38,7% 32,6% 27,4%

Sales Channels 2011 Net Revenue (R$ mn) and Gross Margin* (%)

Installed Capacity & Occupancy Rate 2011 EBITDA (R$ mn) and EBITDA Margin (%)

Annual Capacity (in ´000 m³) NOMINAL EFFECTIVE * AVAILABLE**

MDF 1.800 1.530 1.400

MDP 1.900 1.620 1.350

Hardboard 210 195 195

Total 3.910 3.345 2.945

*Without biological assets

2009 2010 2011 4T10 3T11 4T11

310,5

580,1 530,3

155,2 147,3 126,9

26,5% 31,7% 28,3% 32,7% 29,3% 26,5%

-18,2%

-13,8%

4Q10 3Q11 4Q11

4Q10 3Q11 4Q11 *Effective annual capacity of Duratex based on the lines already installed and

minor investments; **Without minor investments mentioned above

(of available capacity)

-8,6%

14

Reconciliation of EBITDA

IFRS in R$’000 4Q11 3Q11 % 4Q10 % 2011 2010 %

Operacional Profit before Financial

Results

81.888 119.165 -31,8 119.900 -31,7 353.576 458.516 -22,9

Change in Fair Value of Biological

Assets

(53.519) (37.194) 43,9 (34.354) 55,8 (154.009) (183.765) -16,2

Depletion of Biological Assets 32.517 36.108 -9,9 31.804 2,2 137.898 132.173 4,3

Depreciation/ Amortization/ Depletion 66.628 59.872 11,3 52.914 25,9 240.152 199.749 20,2

Employee Benefits (584) (4.808) -87,9 (1.806) -67,7 (7.379) (7.325) 0,7

EBITDA 126.930 173.143 -26,7 168.458 -24,7 570.236 599.348 -4,9

Extraordinary Events 0 (25.820) - (13.241) - (39.888) (19.245) -



Before IFRS



15

Highlights by Division (IFRS)

2009 2010 2011 4T10 3T11 4T11

757,2 911,5

1.094,4

245,6 287,7 290,0

40,1% 43,5% 38,2% 41,7% 38,9% 35,9%

+18,1%

+0,8%

Sales Channels 2011 Net Revenue (R$ mn) and Gross Margin (%)

Installed Capacity and Occupancy Rate 2011 EBITDA (R$ mn) and EBITDA Margin (%)

Builders

22%

Wholesale

9%

Other

2%

Retail

67%

2009 2010 2011 4T10 3T11 4T11

184,3

270,5 269,1

63,3 69,0 61,9

-2,2%

-10,3%

24,3% 29,7% 24,6% 25,8% 24,0% 21,3%

Metais

Louças

97%

90% Sanitary

Ware

Metal

fittings

Annual Capacity (in ´000 items) NOMINAL

Sanitary ware 9.800

Metal fittings 17.000

Total 26.800 4Q10 3Q11 4Q11

4Q10 3Q11 4Q11

-0,1%

16

Reconciliation of EBITDA

IFRS in R$’000 4Q11 3Q11 % 4Q10 % 2011 2010 %

Operacional Profit before Financial

Results

49.332 59.395 -16,9 76.716 -35,7 222.792 257.039 -13,3

Depreciation/ Amortization 12.770 12.141 5,2 10.771 18,6 50.248 40.254 24,8

Employee Benefits (251) (2.585) -90,3 (936) -73,2 (3.927) (3.639) 7,9

EBITDA 61.851 68.951 -10,3 86.551 -28,5 269.113 293.654 -8,4

Extraodinary events 0 0 - (23.203) - 0 (23.203) -



Before IFRS



17

Evolution of Unit Net Revenue and Cash Cost

782,29 791,59 826,85 832,82 820,81 862,95

475,79 426,26

478,65 429,66

468,60 517,75

2009 2010 2011 4T10 3T11 4T11

Madeira Receita Madeira Custo Unit Cash Cost Unit Net Revenue

38,24 42,12 42,91 45,36

42,43 43,10

21,18 21,99

24,70 24,58 24,17

25,81

2009 2010 2011 4T10 3T11 4T11

Deca Receita Deca Custo Unit Net Revenue Unit Cash Cost

+5,1%

+10,5%

+4,5%

+12,3%

+1,9%

+12,3%

+1,6%

+6,8%

( in R$ per m³ shipped)

( in R$ per item shipped)

4Q10 3Q11 4Q11

4Q10 3Q11 4Q11

Cash 2012 2013 2014 2015 2016 and after

726,2 687,9

508,8 326,0

185,4 207,4

18

Indebtedness

R$´000 4Q11 3Q11 Var. 4Q10 Var.

Short Term - Debt 687.902 584.854 103.048 431.608 256.294

Long Term - Debt 1.227.588 1.322.915 (95.327) 1.162.354 65.234

Total Financial Debt 1.915.490 1.907.769 7.721 1.593.962 321.528

Cash 726.159 710.992 15.167 616.549 109.610

Net Debt 1.189.331 1.196.777 (7.446) 977.413 211.918

Net Debt/ Equity 32,2% 32,9% 28,3%

Net Debt/ Ebitda (last 12 moths) 1,42 1,32 1,09

Amortization Schedule (R$ mn)

Capitalization in progress:

1) R$ 178,8 mn together with BNDES at TJLP +2,45% annually

2) R$ 99,9 mn in convertible debentures with the following characteristics:

• 777.000 debentures with a face value of R$ 128,70, adjusted by IPCA

• 5 year maturity w/ annual interest of 6%

• conversion at any time at R $ 12.87, adjusted by IPCA

2008 2009 2010 2011 2012e

891,2

427,0 459,6 635,8

650,0

19

Consolidated CAPEX (R$ mn)

2007 2008 2009 2010 2011 2013 2015

553 850 1.530 1.530 1.530 2.040 2.720 1.275 1.615 1.615 1.615 1.615 1.615

1.615

334 195 195 195 195 195

195

MDF MDP Chapa

2007 2008 2009 2010 2011 2012

14.400 15.600

15.800 15.800 17.000 18.200

3.800 6.200 7.200 7.200

9.800 12.200

Metais Louças

Nominal Capacity (in ’000 items)

2.162 2.660 3.340 3.340 3.340 3.850

4.530

18.200 21.800 23.000 23.000

26.800 30.400

+13,4%

Effective Capacity (in ’000 m³) +15,3%

Hardboard

Metal Fittings Sanitary Ware

• Maintenance of tax exemption (IPI) for building materials (DECA)

• New credit line (FGTS) for remodeling:

• R$ 20K with a maturity of up to 10 years

• Low unemployment rate (%):

• Decreasing Interest rates (end of period in % annually):

• GDP expansion (%):

10,75 11,25 11,75 12,00 12,25 12,5 12,0 11,5 11,0 10,5 9,0

dez/10 jan/11 mar/11 abr/11 jun/11 jul/11 ago/11 otu/11 dez/11 jan/12 2012e

4,3

1,3 2,7 1,1

5,7 3,2 3,7

5,4 5,1

-0,2

7,5

2,8 3,3 4,2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e 2012e 2013e

5,3 6,1 6,4 6,5 6,4 6,4 6,2 6,0 6,0 6,0 5,8 5,2

4,7

dez/10 jan/11 fev/11 mar/11 abr/11 mai/11 jun/11 jul/11 ago/11 set/11 out/11 nov/11 dez/11

20

Expectation Improvement

Source: BCB

Source: BCB

Source: IBGE 2000-2010

Focus Report 2011- 2013

Dec/11 Jan/11 Feb/11 Mar/11 Apr/11 May/11 June/11 July/11 Aug/11 Sept/11 Oct/11 Nov/11 Dec/11

Dec/11 Jan/11 Mar/11 Apr/11 June/11 July/11 Aug/11 Oct/11 Dec/11 Jan/12 2012e

21

The information contained herein was prepared by Duratex S.A.

and does not constitute an offering material, to subscribe for or purchase any

of the Company’s securities. This material also brings general information

about Duratex S.A. and its markets. No representation or warranty, express

or implied, is made concerning, and no reliance should be placed on, the

accuracy, fairness or completeness of the information presented herein.

The Company can give no assurance that expectations disclosed in

this presentation will be confirmed.

February, 2012

DISCLAIMER

ANNEXES

22

23

Localization of Plants

Evolução da Produtividade em Novas Florestas Eucalipto

- São Paulo -

2030

40 44 4452514845

0102030405060

Anos

60

Anos

80

2000 2005 2006 2007 2008 2009 2010

Ano base

IMA

(m

³/h

a.an

o)

Evolution of Duratex forest productivity

+160%

Forest

Plants 1 NEW MDF PLANT

Place: Itapetininga

Effective capacity:

520K m³/year

PLANTS:

SÃO PAULO: Itapetininga: MDP and new MDF plant (start-up 2013)

Agudos: 2 MDF lines, Fooring and Resin Plant (DRI)

Botucatu: Hardboard and MDF

MINAS GERAIS: Uberaba: MDF and MDP

RIO GRANDE DO SUL: Taquari: MDP

230K ha of land:

o SP – 62%

o MG – 34%

o RS – 4%

140K ha of planted forest

Distribution Center

Year base

60 s 80 s

24

Localization of Plantas

PLANTS

SÃO PAULO: - Metal Fittings: São Paulo and Jundiaí - Sanitary Ware: 2 plants in Jundiaí

RIO DE JANEIRO: - Sanitary Ware: Queimados

RIO GRANDE DO SUL: - Sanitary Ware: São Leopoldo

PERNAMBUCO: - Sanitary Ware: Cabo de Santo Agostinho

PARAÍBA: - Sanitary Ware: João Pessoa

ARGENTINA - Metal Fittings: Deca Piazza in Buenos Aires

Place: Queimados

Reactivation and capacity

expansion:

+2,4M items/year

Place: Jundiaí

Metal Fittings Expansion

Capacity:

Up to 17 K items/year

Place:

Cabo de Santo

Agostinho

New Kiln and

sanitary ware

expansion

25

Wood*

17%

Resin

16%

Raw

materials and

other inputs

32%

Labor

14%

Depreciation/

Amortization

10%

Electricity

9%

Fuel

2%

Labor

41%

Metals

14%

Raw

materials

and other

inputs

30%

Depreciation/

Amortization

7%

Electricity

4%

Fuel

4%

Cost Structure 4Q11

* Includes depreciation, amortization and depletion incident in the wood cost

Corporate Presentation 4th quarter 2011 · Corporate Presentation 4th quarter 2011 . 2 Shareholder...

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