1

www.duratex.com.br 2006 Year End Results

February / 07

2

>> Record Performance in 2006

HighlightsHighlights

Shipped volumes increased by 17% in the Wood Division and

by 9% in the Deca Division;

Record Net Revenues totaled R$ 1,5 billion, 17% over the one

for 2005;

Record EBITDA of R$ 458,1 million, which corresponds to an

EBITDA margin of 31%;

Record Net Income of R$ 226,0 million, equal to a R$ 1,78 profit

per share, which is 65% more than 2005;

Preferred stock trading daily average volume registered

R$ 8,2 million;

Market Capitalization reached R$ 4,2 billion at the end of 2006.

3

Hardboard

Particle Board

MDF/HDF/SDF

Laminate Flooring

>> Business Segments

Wood Division

4

Deca Division

Metal Fittings

Vitreous China

Accessories

>> Business Segments

5

CAPEX (in R$ M)

>> Capital Expenditures

303,5

172,8136,8 108,4 105,4

2002 2003 2004 2005 2006

6

>> Capital Structure (in R$ M)

536,1

56,276,5

98,8

359,4

27,3

82,1

Total Debt 2007 2008 2009 2010 2011 &After

ForeignCurrency

DomesticCurrency

Total Debt 618

Cash and Cash Equivalents 575Shareholder´s Equity 1.396

Net Debt / Shareholder´s Equity 3,1%

Net Debt / EBITDA 0,10

in R$ M dec-06

618,2

Debt and amortizationschedule

7

Nominal capacity and occupancy rate

>> Industrial Capacity

74%

95%

91%

76%

82%Vitreous China

Metal Fittings

MDF/HDF/SDF

Particle Board

Hardboard

3.800 K pieces/year3.800 K

pieces/year

500.000 m3/year500.000 m3/year

360.000 m3/year360.000 m3/year

14.400 K pieces/year14.400 K

pieces/year

640.000 m3/year640.000 m3/year

8

>> Wood Panels Sector

Consumes approximately 60% of Duratex made wood panels;

The industry is constituted of more than 16 thousand companies;

There are 7 main furniture poles:

• Bento Gonçalves (RS),

• São Bento do Sul (SC),

• Arapongas (PR),

• Big São Paulo (SP),

• Norwest region of São Paulo (SP)

• Ubá (MG)

• Linhares (ES) Furniture poles

Furniture industry

MG

ESSP

PR

SC

RS

9

Strategic positioning

>> Wood Panels Sector

SDF LaminateFlooring

Standard Painted Standard LP FF Standard LP FF

Duratex

Berneck

Eucatex

Isdra

Masisa

Arauco

Satipel

Tafisa

Hardboard Particle Board MDF/HDF

10

>> Housing Segment

In 2006, the sector is expected to account for 13% of the Brazilian GDP;Estimated growth of the Civil Construction GDP:

2006 4,9%2007 5,7%

Positive perspectives:• Improving of the legal framework,• Reduction of interest rates,• Tax reduction IPI,• Expansion of credit,• Estimated growth of the youth Brazilian population, • Capitalized companies: R$ 4 billion in primary stock issuings.

Brazilian scenario

Source: IBGE and Banco Central

11

Housing sector outlook

* Selected Companies: Abyara, Brascan, Camargo Correa, Company, Cyrela, Gafisa, Klabin Segall, Lopes, PDG Realty, Rodobens, Rossi Residencial e Tecnisa.

** 9m06 results annualized

Sources: Financial statements and offerings prospectus

>> Housing Segment

in R$ M2005 2006 ** %

Net Revenues * 2.507,8 3.238,7 29%

VGV * 3.466,6 8.138,3 135%

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>> Housing Segment

Accessories

Furniture /

remodeling

ProjectIncorporation

Sale Construction of flagstone

Hydraulic and electric

Thick finishing

Light finishing

(Metals and vitreous china fixtures)

Delivery

5% 95%

12 months 5 months 3 months

Construction average cycle

13

>> Revenues within the Domestic Market

91%

3%

6%

Wholesale 9%

Retail57%

Civil Construction11%

Home Centers19%

Others 4%

Wood

78%

8%

14%

Technical Sales 4%Retail24%

Civil Const. 7%

Furniture Industry59%

Others6%

14

Net revenues breakdown (2006 )

>> Performance

Market Segments

Civil Construction47%

Furniture Makers37%

Others16%

VitreousChina11%

LaminateFloor Boards

6%

MDF / HDF / SDF27%

ParticleBoard13%

Hardboard21%

MetalFittings

22%

R$1,5 bn

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Quarterly highlights

>> Performance

Wood (in 1.000 m³) 329,1 346,0 275,3 -4,9% 19,5%Deca (in 1.000 items) 3.821 3.628 3.390 5,3% 12,7%

in R$ MNet Revenues 410,7 399,8 330,3 2,7% 24,4%COGS (226,3) (225,8) (199,2) 0,2% 13,6%Gross Profit 184,5 174,0 131,1 6,0% 40,7%Gross Margin 45% 44% 40% - -Operating result before fin. 105,2 111,3 64,7 -5,4% 62,6%EBITDA 125,6 130,8 85,4 -4,0% 47,0%EBITDA Margin 31% 33% 26% - -Net Income 65,2 70,2 31,3 -7,1% 108,2%ROE (annualized) 20% 23% 13% - -

Shipments 4Q06 3Q06 4Q05Var. (%)

4Q06 x 3Q06Var. (%)

4Q06 x 4Q05

16

72 64125 137

226

2002 2003 2004 2005 2006

CAGR +33%

Net Revenues

>> Yearly Performance (in R$ M)

Ebitda & Margin

Net Income Equity & ROE

867 9901.188 1.271

1.489

2002 2003 2004 2005 2006

213 232321 363

458

25% 23%27% 29% 31%

2002 2003 2004 2005 2006

905 937 990 1.0511.396

8% 7%13% 13%

18%

2002 2003 2004 2005 2006

CAGR +14%CAGR +21%

CAGR +11%

17

20 2333 31

65

4Q02 4Q03 4Q04 4Q05 4Q06

CAGR +35%

>> Quarterly Performance (in R$ M)

248 279 305 330411

4Q02 4Q03 4Q04 4Q05 4Q06

61 68 74 85126

25% 24% 24% 26%31%

4Q02 4Q03 4Q04 4Q05 4Q06

CAGR +13%CAGR +20%

CAGR +11%

905 937 990 1.0511.396

9% 10%14% 13%

20%

4Q02 4Q03 4Q04 4Q05 4Q06

Net Revenues Ebitda & Margin

Net Income Equity & ROE

18

166 178256 267

354

29% 27%32% 31%

35%

2002 2003 2004 2005 2006

47 55 6596 104

16% 17%

23% 21%16%

2002 2003 2004 2005 2006

>> Yearly Performance

Demanded markets;

Increase of shipped volumes;

Export revenues reduction.

Positive scenario for the housing segment;

Increase of shipped volumes (Basics);

Cost increase at metal fittings segment.

WoodEbitda (in R$ M) & Margin (%)

19

47 56 59 6899

29% 30% 29% 30%36%

4Q02 4Q03 4Q04 4Q05 4Q06

14 12 15 1827

16% 15% 17% 19%13%

4Q02 4Q03 4Q04 4Q05 4Q06

Demanded markets;

Increase of shipped volumes;

Economies of scale.

Positive scenario for the housing segment;

Enrichment of the sales mix;

Economies of scale.

WoodEbitda (in R$ M) & Margin (%)

>> Quarterly Performance

20

150,4169,8

199,7 215,7245,1

2002 2003 2004 2005 2006

CAGR: +13%

>> Yearly Performance

Net Revenues per employee (in R$ 1.000)

21

37,0 39,8

53,961,6

75,4

2002 2003 2004 2005 2006

CAGR: +19%

>> Yearly Performance

EBITDA per employee (in R$ 1.000)

22

Cash Flow in 2006 (in R$ M)

>> Performance

Closing Balance Dec. 06

(105,4)

(76,7)

(24,8)

372,1

(20,4)

234,0

574,6195,8

Opening BalanceDec. 05

Adjusted Net Income (*)

WorkingCapital

CAPEX

Dividends and profit sharing

Issuing of new stock

Financing

( * ) Adjusted Net Income = net Income + depreciation + financial result + provision and asset write offs

23

Outstanding number of shares: 128.1 MCommon 53,3 MPreferred 74,8 M

Itaúsa / Itaúcorp8,1%

PensionFunds10,5%

Foreign Investors51,5%

Others29,9%

Shareholders Breakdown

>> Capital Markets

Shareholders’ structure (as of Jan/2007)

PN

24

0

2.500

5.000

7.500

10.000

12.500

15.000

17.500

20.000

22.500

25.000

27.500

30.000

30/1

2/20

0414

/1/2

005

31/1

/200

516

/2/2

005

2/3/

2005

16/3

/200

531

/3/2

005

14/4

/200

529

/4/2

005

13/5

/200

530

/5/2

005

13/6

/200

527

/6/2

005

11/7

/200

525

/7/2

005

8/8/

2005

22/8

/200

55/

9/20

0520

/9/2

005

4/10

/200

519

/10/

2005

3/11

/200

518

/11/

2005

2/12

/200

516

/12/

2005

2/1/

2006

16/1

/200

631

/1/2

006

14/2

/200

62/

3/20

0616

/3/2

006

30/3

/200

613

/4/2

006

2/5/

2006

16/0

5/06

30/0

5/06

13/0

6/06

28/0

6/06

12/0

7/06

26/0

7/06

9/8/

2006

23/8

/200

66/

9/20

0621

/9/2

006

05/1

0/06

20/1

0/06

6/11

/200

622

/11/

2006

6/12

/200

620

/12/

2006

8/1/

2007

22/1

/200

7

8,0010,0012,0014,0016,0018,0020,0022,0024,0026,0028,0030,0032,0034,0036,0038,0040,0042,0044,0046,0048,00

Adhesion to Bovespa´s Level I

Stock Split (200x1)

Stock Public Offering

Election of an Independent Board Member

Price (R$)as of 05/Feb/07

Financial Volume(in R$ 1.000)

2005

Honourable Reference IR Magazine

3rd Place – ABRASCA AwardAnnual Report

Stock Dividend

2006 07

>> Capital Markets

25

Market capitalization at year end

403 288 468 661 558 605970

1.4601.743

4.209

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

CAGR: +30%CAGR: +21%

US$ 362 M

US$ 1.969 M

R$ 403 M

R$ 4.209 M

>> Capital Markets

26

Dividends (in R$ M)

46,3

76,9

58,1

25,724,623,621,515,215,014,7

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

CAGR: +20%

Extraordinary dividend

42,8

15,3

>> Capital Markets

27

Market Positioning:• strong brand names,

• products and markets,• distribution channels,

>> Wrap up

CAPEX:• consistent programs,

• returns / ROIC.

Capital´s Structure:•presence in capital markets,

• low leverage.

Low Cost of

Wood Supply

CREATION

OF VALUE WITH

SUSTAINABILITY

28

www.duratex.com.br 2006 Year End Results

February / 07