1H10 Results

August 4, 2010

This presentation includes forward-looking statements concerning the business prospects, projections and operating and financial targets Eucatex S.A. Indústria e Comércio, which are based on the beliefs and assumptions of management and on the information currently available to the company.

Forward‐looking statements are not guarantees of performance and

involve risks, uncertainties and assumptions, since they refer to future

events and therefore depend on circumstances that may or may not occur.

Investors should understand that overall economic and industry

conditions and other operating factors may affect the company’s future

results and lead to results that differ materially from those expressed

in these forward‐looking statements.

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Disclaimer

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1H10 HIGHLIGHTS

Gross Revenue of R$ 472.6 million, up 21.1% from R$ 390.3 million in 1H09;

Gross Margin of 35.1%, stable in relation to 1H09;

EBITDA of R$ 76 million, up 31% from R$ 58.1 million in 1H09;

EBITDA Margin of 20%, improving 1.6 p.p. from 18.5% in 1H09;

Net Income of R$ 22.8 million, growing 34.3% over 1H09;

Wood segment posts growth in domestic sales volume of 8.8%;

Laminate Flooring and Paint segments record sales volume growth of 50% and 36%, respectively.

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Manufacturing Units

Location : Salto-SP

Area: Land – 540,000 m²

Installations – 153,000 m²

Number of employees : 773

Hardboard – 240,000 m³

Panels and Doors – 1.8 million units

Paint Capacity – 50 million m²

Location: Botucatu-SP

Area: Land 372,000 m²

Installations 62,000 m²

Number of employees : 451

MDP – 430,000 m³

Flooring – 6 million m²

LP and Lacquered finishing – 20 million m²

Location: Salto-SP

Area: Land 960, 000 m²

Installations 36 mil m²

Number of employees : 224

Paint

Varnish36 million

gallons/year

Board Unit

MDP and Laminate Flooring Unit

Paint and Varnish Unit

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Forestry Unit

Guaranteed sustainability and possibility of developing new projects

62 eucalyptus farms, totaling 45,200 hectares

Salto Average Radius – 126 km

Botucatu Average Radius – 44 km

Forests with ISO 14001 certification and Green Seal from Forest Stewardship Council (FSC)

Forest Unity– Bofete/SP

New Planted Forests

2007 2008 2009 1S10

5,400 ha 4,500 ha 2,040 ha 1,400 ha

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Wood Recycling Unit

• Low-cost thermal power generation, preserving forests planted by the company.

• Total processing capacity – 240,000 metric tons/year.

• 240,000 metric tons/year corresponds to approximately 470,000 m³ of standing timber or 1,500 hectares of forests.

• Volume processed in 2009 – 109,000 metric tons.

• Volume processed in 1H10 – 51,200 metric tons.

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Operating Data

Revenue Breakdown by Product

Sales Breakdown by Segment

41%

35%

10%

5%6%

3%

Sale Breakdown -2Q10

Industry

Civil Construction

Resale of panels

Other Industry

Internal Market

External Market

43%

31%

9%

4%

7%6%

Sales Breakdown- 2Q10

30%

29%

21%

12%8%

Gross Revenue Breakdown - 2Q10

MDP

Hardboard

Paint

Laminate Flooring

Others

34%

32%

20%

9%5%

Gross Revenue Breakdown - 2Q09

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Hardboard

Installed Capacity Utilization Market Share

Cost Breakdown Domestic Sales – Base 2005=100

Raw57%

Labor19%

Thermal and electrical energy

15%

Depreciation9%

1H09 1H10

86% 86%

48% 52%

1H09 1H10

1H05 1H06 1H07 1H08 1H09 1H10

100 108 113

130

114 130

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MDP

Installed Capacity Utilization Market Share

Cost Breakdown Domestic Sales – Base 2005=100

Raw76%

Labor6%

Thermal and electrical energy

8%Depreciation

10%

1H09 1H10

91% 94%

15% 12%

1H09 1H10

1H05 1H06 1H07 1H08 1H09 1H10

100

94

107

111

101

107

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MDP Sales Mix

» Eucatex’s sales mix has a higher share of

coated products than other manufacturers,

with the percentage of coated products

(higher value added) accounting for 100% of

MDP shipments in 1H10.

Source: ABIPA

1H09 1H10 Market - 1H10

95% 100%

25%

Proportion of Eucatex Coated MDP

Raw

Coated

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Launch of MDF with HD Lacquered Finish

» Launch of high-definition lacquered finish applied to

an MDF base for Wood Reseller segment.

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Laminate Flooring

Installed Capacity Utilization Market Share

Cost Breakdown Sales Volume – Base 2005=100

Raw83%

Labor7%

Thermal and electrical energy

7%

Depreciation3%

1H09 1H10

40%59%

30% 37%

1H09 1H10

1H05 1H06 1H07 1H08 1H09 1H10

100 106 113 130 130

194

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Product Launches - Laminate Flooring

» Launch of the Eucafloor Evidence Line at the 8th Expo

Revestir – International Wall and Floor Covering Fair.

» Product features 25-cm wide planks, meeting strong

demand from architects and interior designers.

» Created for residential and low-traffic commercial

areas.

Eucafloor Evidence

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Paint and Varnishes

Installed Capacity Utilization Market Share

Cost Breakdown Sales Volume - Base 2005=100

Raw81%

Packing11%

Labor7%

Depreciation1%

1H09 1H10

38%51%

7% 8%

1H09 1H10

1H05 1H06 1H07 1H08 1H09 1H10

100 124

192

258 263

358

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Paint and Varnishes

* Data: ABRAFATI

Growth 2006 2007 2008 2009 1HY10

Eucatex 34% 52% 30% 12% 36%

Market (*) 3% 6% 8% 5% 24%

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Financial Highlights

EBITDA (R$ million) and EBITDA Margin (%) Gross Profit (R$ million) and Gross Margin (%)

Highlights 1Q10 (R$ MM) 1HY10 1HY09 Var. (%)

Net Revenue 380,8 314,4 21,1%

Cost of Good Sold (247,2) (203,5) 21,5%

Gross Income 133,6 111,0 20,4%

Gross Margin (%) 35,1% 35,3% -0,2 p.p.

Administrative Expenses (21,0) (21,4) -2,0%

Comercial Expenses (55,0) (48,8) 12,9%

Others Operational Costs (11,1) (3,8) -188,7%

EBITDA 76,0 58,1 30,8%

Margin EBITDA (%) 20,0% 18,5% 1,6 p.p.

Net Financial Income (19,2) (16,4) -17,2%

Taxes (4,3) (3,6) -21,6%

Net Icome 23,0 17,0 35,2%

1HY09 1HY10

111,0

133,6

35,1%35,3%

1H09 1H10

58,1

76,0

18,5%

20%

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Capital Expenditure

New T-HDFLINE75%

Forests 17%

Total 109,0

R$ Millions 1H10

New Line T-HDF/MDF 81,8

Forests 18,6

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New T-HDF / MDF Plant

EBITDA Margin

50 %

» T-HDF: Product similar to MDF, but with higher quality and density.

» Technology developed for applications requiring high mechanical resistance, such as flooring, doors, backings, drawers and dividers.

» Operational start-up projected for 3Q10.

Installed Capacity Growth 110 million m²/ year

Installed Capacity Growth 275 thousand m³/ year

Additional Gross Revenue R$ 250 million

EBITDA R$ 80 million

Capacity and Financial Data

Period % Volume (m³)

1 - 12 months 65% 179 thousand m³ / year

13 - 24 months 85% 234 thousand m³/ year

24 - 36 months 100% 275 thousand m³/ year

Evolution of capacity utilization

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New T-HDF / MDF Plant

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New Paint Plant in Ribeirão/PE

» Water based-paint: will initially produce water based paints.

» Goal is to account for 20% of Eucatex’s Paint Volume: Will seek to facilitate supply of North and Northeast regions, where Eucatex already has good market share. Northeast currently accounts for 10% of the Sales Volume of Tintas Eucatex.

» Strategic Location: new paint plant will be installed in Ribeirão, Permambuco, 90 km from the state’s capital Recife and about 40 km from the Port of Suape.

» Distribution Centers: one for solvent-based paints and the other for laminate flooring, partitions and hardboard, meeting demand from the construction and furniture industries.

» Operational start-up expected in 1H11.

Installed Capacity in Litres 2 millions litres/month

Investments R$35 millions

Number of Jobs Generated 150 Direct and indirect

Goal Representation in the Northeast 20% of total volume

Project Data

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Net Debt / EBITDA Debt Profile

Debt

Debt (R$ MM) 1HY10 1HY09 Var. (%)

Short Term Debt 85.4 33.5 155.2%

Long Term Debt 79.1 50.8 55.7%

Gross Debt 164.5 84.3 95.3%

Cash and Cash Equivalents 1,. 1.8 -16.4%

Net Debt 163. 82.4 97.7%

% Short Term Debt 52% 40% 12.2 p.p.

Net Debt/ EBITDA 1.1 0.7 51.2%

2006 2007 2008 2009 1HY10

0,8 x

0,7 x

0,6 x

1,0 x 0,8 x

Short Term52%

Long Term48%

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Capital Markets

Commitment to Special Corporate Governance Levels of BM&FBovespa

Migration to Level I

Minimum free-float of 25% of capital

Improvements in quarterly disclosure, including consolidation andspecial review

Disclosure of trading in company’s securities by controllingshareholders and administrators

Disclosure of shareholder agreements and stock option plans

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Capital Markets

Shareholders’ EquityMultiples

104%

EUCA4 vs. IBOVESPA (Base=100)

22%

36%

sep/06 dec/08 dec/09 mar/10

Shareholders' Equity R$ MM 13,7 531,3 746,9 761,0

Book Value per Share R$ 0,15 5,75 8,08 8,24

0

100

200

300

400

500

600

700

800

R$

mill

ion

80

100

120

140

160

180

200

220

240

Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

Ibovespa

INDX

Eucatex

Market Cap vs Ebitda

Book Value per Share vs Market Value

4,2

0,7

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Competitive Advantages

Innovation, creativity and exclusive products.

Strategic presence in key consumer centers and sales team operating nationwide.

Partnerships with large foreign companies to distribute products in global markets.

Environmental Responsibility: Green Seal (FSC) for all products, supported by environmental and forest management.

Sustainability guaranteed through a large forest area and innovative recycling program.

Brand strength

Verticalization

Construction Industry

Furniture industry

José Antonio G. de CarvalhoExecutive VP and IRO

Sergio Henrique RibeiroController

Waneska BandeiraInvestor Relations

(11) 3049-2473

ri@eucatex.com.br

www.eucatex.com.br/ri

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IR Contacts