1. Corporate Presentation | 2Q12

2. Disclaimer
“Forward looking statements included in this presentation regarding the
Company’s business, operating and financial results and Company’s growth
are only predictions and were based on management's expectations
regarding future performance. These expectations are highly dependent on
market conditions, Brazilian economic scenario, industry performance and
international markets, and are therefore subject to change.”
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3. hlights of 2Q12 (when compared to 2Q11)
• Recognitions: the Eternit’s Governance is awarded again
IR Magazine Award – best program for individuals investors
APIMEC 2012 Award
• Reduction of sales volume:
Chrysotile Mineral: 6.6%
Fiber Cement: 15.0%
Concrete Tiles: 7.8%
• Net Consolidated Revenue amounted to R$ 211.0 million, a 5.0% improvement
• EBTIDA was R$ 39.3 million, a growth of 24.4%
• Net Income was R$ 27.0 million, a growth of 28.7%
• Margins:
Gross margin of 44% - (+ 6 p.p.)
EBITDA margin of 19% - (+3 p.p.)
Net margin 13% - (+ 3 p.p.)
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4. Eternit Group
most diversified roof coverings industry in Brazil - 2012
Manufacture of fiber cement and Manufacture of
commercialization of bathroom concrete tiles and
Activity chinaware and metallic fittings and Chrysotile Mining commercialization
components for construction systems of sanitary ware
Industrial Units 4 1 1 6
Leader in fiber cement – Leader in
The world's 3rd
32% of Market Share concrete tiles –
largest – 15% of
Market Share 35% of Market
Market Share
5th largest of Brazil in sanitary wares Share
300 thousand
Capacity 1 million tons / fiber cement 10 million m²
tons
Capacity Used Fiber cement - 80% 100% Around 60%
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5. ocation – Fiber cement and Crhysotile Mining
Commercial Branches
1) Anápolis/GO; 2) Colombo/PR; 3) Goiânia/GO; 4) Rio de Janeiro/RJ; 5) Simões Filho/BA and 6) São Paulo/SP.
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6. Showroom Location
Come visit us
Rebouças Avenue, 2175 – São Paulo / SP
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7. Plants Location – Concrete tiles
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8. versified Portfolio – Chrysotile Mineral
Main use of the crhysotile mineral
99% of the world production of chrysotile is
used for fiber cement products:
• Tiles;
• Covering plates;
• Wall panels;
• Water pipes and water tanks; and
• Etc.
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9. versified Portfolio – Fiber Cement Tiles
99

10. Diversified Portfolio – Metallic Fittings
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10

11. Portfolio - Components for constructions systems
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12. ersified Portfolio – Water tanks and filters
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13. Portfolio – Bathroom chinaware and lavatory seats
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13

14. Diversified Portfolio – Metal Fittings
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14

15. Diversified Portfolio – Synthetic Marble
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16. Diversified Portfolio – Concrete Tiles
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17. ersified Portfolio – Full Roofing Solutions
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17

18. SAMA - Overview

19. obal Market – Chrysotile Mineral - 2011
Canada 4%
Russia – 50%
Kazakhstan – 11%
China – 20%
Brazil 15%
Global Consumption (MM of Ton)
2004 2005 2006 2007 2008 2009 2010 2011
2.1 2.3 2.3 2.4 2.4 2.1 2.2 2.2
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19

20. ales of Chrysotile Mineral (thous. tons)
1H12 x 1H11 2Q12 x 2Q11
• Domestic Market – reduction of 9.9% • Domestic Market – reduction of 9.0%
• Foreign Market – increase of 11.5% • Foreign Market – reduction of 4.0%
2,3 % - 0.8 %
144.9 148.2 147.1
6,6 % - 6.6%
77.6 84.7 76.3 74.5 79.4 74.2
40.4 42.0 38.2
67.3 63.5 70.8
34.1 37.4 36.0
1H10 1H11 1H12 2Q10 2Q11 2Q12
Domestic Market Foreign Market
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20

21. Eternit and Tégula - Overview

22. Covering market – Brazil - 2011
Residential Market Industrial and Commercial Market
Concret Other
e 11% Fiber cement
4%
38%
Fiber cement
Ceramics 51% Metallic
Ceramics
45% 40% 11%
Total Market Market Evolution (MM m 2 )
8% 5%
10% -2%
Concrete 5%
8%
Metallic Other 534
561
4% 505 495
12% 2% 459
406 425
Ceramics Fiber cement
35% 47%
Source: Estimation of the Production Chain of Fiber Cement
2005 2006 2007 2008 2009 2010 2011
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22

23. Structure of the Industrial Park in 2011
Brazilian
Fiber Cement ETERNIT
Market
Installed Capacity (tons /
Approximately 2,820,000 1,000,000
year)
Capacity utilization Around 86% Around 85%
Consumption (ton / year) 2,434,000 859,300
Companies 11 32% Market Share
Plants 19 5
Selling Points 39,000 15,000
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23

24. Structure of the Industrial Park in 2011
Brazilian concrete
TÉGULA
roofing market
Installed Capacity
Approximately 24.0 million 8.0 million
(m² / year)
Capacity utilization Around 70% Around 70%
Consumption ( m² / year) 16.9 million 5.9 million
Companies 35% Market Share
130
Plants 6
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24

25. Sales of Fiber Cement* (thous. tons)
6.0 % - 11.3 %
389.5 412.9
366.3 15.7 % - 15.0 %
181.7 210.2
178.7
1H10 1H11 1H12 2Q10 2Q11 2Q12
* Includes components for construction systems
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25

26. Concrete Tiles (thous. square meters)
18.5 % -1.9 %
2,801 2,773 14.8 % -7.8 %
2,364
1,493 1,376
1,300
1,887
477
1H10* 1H11 1H12 2Q10 2Q11 2Q12
*Tégula was acquired on February 11 2010. The amount of 477 thousand m2 doesn’t refer to
Eternit.
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26

27. Economic and Financial Performance

28. Consolidated Net Revenue (R$ million)
11.2 % 8.8 %
421.2
387.3 13.2 % 5.0 %
348.3
201.0 211.0
347.4 177.6
294.1 342.9
150.6 175.7 171.2
54.2 44.4 73.8 27.0 25.3 39.8
1H10 1H11 1H12 2Q10 2Q11 2Q12
Domestic Market Foreign Market
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28

29. Net Revenue Breakdown
2007 1H12
Concr et e t iles
Fiber cem ent and Accessories
50.0% 10.3%
New Business
17.7%
Bat hroom
Chrysot ile Chinaw ar e
Miner al 4.8%
32.3%
Ot hers ( * )
2.6%
(*) Other: metallic roofing tiles, polyethylene water tanks, lavatory seats and metallic bathroom fittings,
water pipe filters, synthetic marble and components for construction systems.
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30. COGS Breakdown – 2Q12
Fiber Cement Chrysotile Mineral
Energy Ener gy
3% 8%
Ot her s cost s
10%
Ot hers cost s
Depr eciat ion
20% Mat erials ( * * )
5% 28%
Depreciat ion
Raw m at erial
4%
( * ) 63%
Wor k force
49%
Workf orce
10%
(*) - Cement (46%), Chrysotile Ore (43%) and other (11%) (**) – Fuel, explosives, packaging, among other
Concrete Tiles
Energy
4%
Ot hers cost s Raw m at erial
20% (* * * )
48%
Work force
Depreciat ion 17%
11%
(***) - Cement (56%), sand (32%) and other (12%)
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31. EBITDA (in R$ million)
-19.6 % 47.5 %
85.5
72.0
57.9 -13.1 % 24.4 %
36.3 39.3
31.5
1H10 1H11 1H12 2Q10 2Q11 2Q12
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31

32. Net Income (in R$ million)
- 20.4 % 50.5 %
56.9
47.5
37.8 - 13.7 % 28.7 %
27.0
24.3
21.0
1H10 1H11 1H12 2Q10 2Q11 2Q12
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32

33. Margins
45% 46%
44% 44%
38% 38%
21% 20% 20% 19%
15% 16%
14% 14% 14% 13%
10% 10%
1H10 1H11 1H12 2Q10 2Q11 2Q12
Gross Margin EBITDA Margin Net Margin
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34. Capital Expenditures

35. Capital Expenditures (in R$ million)
59
4
34
19 21
17 16
2 11
5 10 4
21 2 10
12 13 3
11 6 6
1S10 1S11 1S12 2T10 2T11 2T12
Investiments Capacity Increase – Eternit Capacity Increase – Tégula Equipment and Trucks - SAMA
Molds and New Business Acquisition Tégula Land acquisition – Ceará State
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36. Development unit of Synthetic Marble
Synthetic Marble
Resin Silo Production Line
Products
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36

37. ation of Multiproduct Plant - Ceará State
Cimenteira
Linha Gás Natural
35 km
15 km
Land of 400 000 m²
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38. Unit in the Ceará State - Bathroom Chinaware Plant
Joint-Venture: Companhia Sulamericana de Cerâmica S. A.
Share of 60% Share of 40%
Knowledge of the local market Knowledge of manufacturing and
products technology
Strong distribution network
Low cost production
Efficient logistics
Expertise in new product
Brand strength development
Investment Resources Expertise in new market
Knowledge in Brazil development
Investments: R$ 97 million
Capacity: 1,500,000 pieces per year
Status of the building: initiated
End building: December 2012
Forecast of Gross Revenue at full capacity: approximately R$ 127 million
Straight Workforce: 330 employees
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38

39. w and lay out of the Bathroom Chinaware Plant
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39

40. Capital Markets

41. Ownership Structure – Jul/12
Shareholding Structure
27.5% Geração L. Par. F. I. A. 15.27%
Luiz Barsi Filho 13.47%
59.8%
Victor Adler + VIC DTVM 6.70%
10.50%
Management 1.59%
Treasurystock 0.03%
Member
2.2% Board of Directors
Since
Sérgio Alexandre Melleiro (*) 1993
Lírio Albino Parisotto (*) 2004
Individual Investors Élio A. Martins 2007
Corporations Luiz Barsi Filho 2008
Marcelo Munhoz Auricchio 2011
Investors Abroad
Luis Terepins (*) 2011
Clubs. Funds and Foundations Benedito Carlos Dias da Silva (*) 2012
(*) Independent member
Member
Advisory Board
FREE-FLOAT 76.10%
Since
Guilherme Affonso Ferreira 2011
Mário Fleck 2011
Victor Adler 2012
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41

42. Liquidity
Average Traded Volume
Number of shareholders (R$ thousand)
1,482
6,615 6,633 6,627
5,910 1,108
975
794
2009 2010 2011 2012( * ) 2009 2010 2011 2012( * )
(*) Until July 2012
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42

43. emuneration - Net Income X Distributed Earnings
In R$ million
Pay Out 76 % 79 % 74% 95%
102
97
81
73 72
55 57 *
54 * *
2009 2010 2011 2012
Net Income Dividends and Interest on own capital (*) Until June 2012 / (**) Until August 2012
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43

44. Policy of Remuneration - Dividend Yield
15.1%
10.9%
9.1% 9.3%
8.8%
7.5% 7.5%
6.9% 6.9% 6.7%
1.7% 2.3%
2009 2010 2011 2012
(*) Unitl June 2012
Eternit – Yield(*) Savings (**) CDB (**)
Source: Eternit e BACEN
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44

45. nit’s Shares Performance (Dec/06 – Jul/12)
Between 12/28/2006 to 7/31/2012, Eternit’s shares appreciated 79.0% and IBOVESPA
appreciated 26.1%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s
shares appreciated 211.5% .
220
ETER3
200 IBOVESPA
180
R$ 10.85
160
140
120
56,097
100
80
60
40
Ju 9
Ju 1
2
Ju 7
Ju 8
Ju 0
O 7
O 8
O 0
O 1
Fe 6
O 9
Fe 9
Fe 0
Fe 1
A 7
A 7
D 7
Fe 7
A 8
A 8
D 8
Fe 8
A 9
A 9
D 9
A 0
A 0
D 0
A 1
A 1
D 1
A 2
-0
-0
-0
-1
-1
-1
-0
-0
-0
-1
-1
-0
-0
0
-0
-0
-1
-1
-1
0
0
-0
0
-0
0
0
-0
1
1
1
1
-1
1
b-
b-
n-
b-
n-
b-
n-
b-
n-
b-
n-
pr
pr
pr
pr
pr
pr
ug
ug
ug
ug
ug
ec
ec
ec
ec
ec
ec
ct
ct
ct
ct
ct
D
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45

46. Outlook

47. avorable Moment for Civil Construction
47
47

48. Economic Figures
Minimum Wage (R$) Workforce (R$ million)
CAGR: 11.0% CAGR: 5.96%
Source: BACEN
Food Basic Basket SP x Minimum Wage (purchasing
power)
Source: IBGE and DIEESE
Minimum Wage (R$) Food Basic Basket in SP (R$) %
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48

49. Economic Figures
Credit Availability Unemployment Rate - Brazil
Government, Industry, Housing, Rural, Commerce, Credit
Individuals (R$ billlion)
Source: BACEN
Source: IBGE
Growth of the Brazilian Savings
Source: BACEN - SBPE
R$ billlion (%) Chg YoY
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49

50. Residences - Perception of Demand

51. Residences – Perception of Demand
Need
Some kind of
renovation or
expansion
77%
Permanent Hom es in Brazil
Permanent Homes – 57.8 44.5 million homes
million
Housing Deficit – 5.5
million
• The FGV studies show that between 2010 e 2022, the number of homes will grow in Brazil
by na average of 1.9 million/year;
Source: ANAM ACO (National Associ ation of Constructi on MaterialTraders) / Study by João Pinheiro F oundation, official es tate of statistics of Mi nas Gerais
/ ABECIP (Brazil ian Associati on of Real Estat e and Savings Entities) – 2nd AB ECIP Seminar – Real E state Panorama: Opportuniti es and Challenges.
51

52. Housing Deficit by Family Income by Minimum Wages
In thousand of Units
Regional
Up t o Three t o Five t o More t han
Geographic Region Housing
Three Five Ten Ten
Def icit
North 492 43 17 3 555
Northeast 1,861 55 23 8 1,947
Southeast 1,791 178 65 12 2,406
South 484 66 26 4 581
Midwest 375 22 14 6 417
Tot al
Approx im at e
5,003 364 146 33 5,546
Housing
Def icit
In 2008, the estimated housing deficit was 5.5 millions units, the majority concentraded in the C and D classes.
Source: study by the João Pinheiro F oundat ion, official stat is tics body for the stat e of Minas Gerais.
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53. Indicators
Brazilian GDP x Civil Construction GDP x
Eternit Gross Consolidated Revenue Home Mortgage Credit as % of GDP
37.1
16.8 18.3 15.7
11.6
8.6 8.2 7.5 7.9
5.0 5.4 5.1 4.0
3.6 2.7 2.5
( 0.2)
( 6.3)
2007 2008 2009 2010 2011 2012( E)
GDP Construction (%) GDP Brazil (%) Eternit (%)
(E) Esti mated
Source: BA CE N. T he growth of the Eternit gross consolidated revenue was Source: AB ECIP, BACEN and FE BRABAN (Brazilian Banks F ederat ion).
deflated by IGP-M.
• In Brazil, the home mortgage credit reached 4.7% of GDP in 2011 and it should reach 11%
in 2014.
S ource: ABECIP (Braz ilian As sociation of Real Estate and Savings Enti ti es ) – 2nd ABECIP S emi nar – Real Estat e Panoram a: Opportunities and Chal lenges.
53

54. Reduction in the interest rates for the finance of construction
materials
To stimulate the sales of construction materials, the Caixa Econômica Federal (the Federal
Savings Bank - CEF) announced in July 2012:
• reduction in the interest rates for the line of finance for the acquisition of construction
materials – Construcard;
• extension of repayment conditions from 60 to 96 months; and
• R$ 5 billion of funds to be made available for this year, with no set maximum limit on
financing – this will be dependent on each client’s monthly repayment capacity.
Construcard can be used to: the purchase of construction materials in
general, acquisition of fitted furniture and solar heating systems.
Currently there are more than 65 thousand sales outlets in
Brazil with commercial agreements enabling to operate this line.
Source: Caixa Econômica Federal – www..caixa.gov.br
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55. Residences – Management Model
New Residential Edifices Expansion and Maintenance of Residential
(in thousands of units) Units
(in thousands of units)
Source: ANAM ACO (Nati onal Associ ation of Constructi on Material Trades)- Sample Survey by ANAM ACO – Data for sector 2010
55

56. Consumer Profile
Where do they make their purchases? With home maintenance – who decides the purchse?
Self -
Br icklayer / Wor ks
m anagem ent / Self -
For em an/ Engineer
const r uct ion
65%
34%
Const r ut or a/
Em preit eir a
1%
With home building – who decides the purchase?
Self -
m anagem ent / Self -
const r uct ion
Brick layer / Wor ks
27%
For em an/
Engineer
Builder/
71%
Cont r act or
2%
Source: ANAM ACO (Nati onal Associ ation of Constructi on Material Trades)- Adapted from Sam ple S urvey by ANAM ACO/Latin Panel on the Condi tions of the Hom es - 2007
56

57. Consumer Profile
Responsible for the Indication and Recomendation of Brand
S ource: ANAMA CO (National A ssociation of Construction Material Trades)- Sampl e S urvey by ANAM ACO/Lati n Panel on t he Condi ti ons of the Hom es - 2007
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58. Chrysotile – The Brazilian Mineral

59. Chrysotile – The Brazilian Ore
The use of Chrysotile ore in Brazil is regulated
by the Federal Law 9,055/95, by Decree
2,350/97 and by regulatory standards for
occupational health and safety. It is also
provided in the Convention 162 of the
International Labor Organization (OIT).
White Ore
Bends and silky fibers without tip
High Concentration of
Magnesium:3MgOSiO2H2O
Biopersistence*: 2.5 days
*Biopersistence: Time that a inhaled particle remains in
the lungs before being eliminated by the body’s defense
mechanisms. To cause lung damage, the fiber must have
penetration and durability capacities in the alveoli.
Serpentinite rock with Chrysotile Ore fibers
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59

60. Brazil concludes important research about chrysotile ore risks
Project Asbesto Ambiental
“Ambiental Exposition to Asbesto: Evaluation of Risk and Effects in
Health”
Process CNPq n. 420001/2006-9
The results of the research were announced on November 25 2010 and
demonstrates that:
Among the householders surveyed, no clinical, respiratory functional
and high resolution tomographic alterations were found that could be
attributed to atmospheric asbestos fiber inhalation.
In the occupational assessment, no new alterations were identified or
progression in pleural and interstitial deterioration of individuals in the
sample Group exposed after 1980 and who underwent High Resolution
Computed Tomography scans in the two studies.
The full version of this research can be found in www.sectec.go.gov.br.
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61. Public Hearing
In the light of a request made by the National Confederation of
Workers in Industry – CNTI, the Federal Supreme Court – STF
has arranged a public hearing between August 24 and 31, 2012 to
debate the use of asbestos.
With the request from the CNTI is seeking to involve society on
the issue of asbestos in the light of its importance to Brazil.
Representatives of government bodies, medical doctors and
scientists of various nationalities, technicians and sector
employees will take part in the hearing.
Subsequently, the Minister-rapporteur, Marco Aurélio de Mello,
will have the necessary time to decide his vote, after which the
Direct Actions of Unconstitutionality - ADIs (4066 and 3937) can
by submitted for judgment on merit by a plenary session of the
court before the end of the year.
Greater details can be found by acessing www.stf.jus.br (in
Portuguese)
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61

62. Corporate and Environmental Management

63. Corporate Management
Open Doors Program
Launch ..................
November 2004
.
Contribute to society’s better understanding of
Purpose ................. the mining and processing of Chrysotile Ore and
the manufacture of fiber cement products in a
sustainable manner.
Location ........... Five production plants of Eternit and the SAMA
mining company
Visitors ............... 53,000 until Jun 2012
Target ..................
All society
.
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63

64. Environment Focused Management
Zero Reject Monitoring Air Quality Water Reuse Reforestation Work
Quelônios Project - Animal Conservation Area
The only breeding program of Amazon turtles in Brazil and Reintegration
Seedling Nursery of Wild Animal Nature in partnership with IBAMA
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64

65. Social Actions
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66. Recognitions - 2012
IR Magazine Brazil Awards 2012: For the second consecutive year, IR Magazine
awarded Eternit’s Individual Investor Relations Program as the best of Brazil in the small &
mid-cap category (companies with sales of less than R$ 3 billion).
APIMEC 2012 Award: APIMEC – Association of Capital Markets Analysts and
Investment Professionals – national chapter, awarded the APIMEC Prize 2012 to Eternit in
the B category, companies with consolidated revenue of up to R$ 3 billion.
Great Place To Work: In May 2012, SAMA and Precon Goiás were elected “The Best
Companies to work for in the Center-West”. SAMA came 3rd in the ranking and Precon
Goiás, 6th.
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67. Eternit – An option for investment
ETNTY
Governance
ADR - Level I
Growth
Vision of
Brand with
Future Brand
Dividends
Case of
Success
67
67

68. Information
Élio A. Martins Paula Dell Agnolo Barhum
elio.martins@eternit.com.br paula.barhum@eternit.com.br
Rodrigo Lopes da Luz Frederico Gomes Amaral
rodrigo.luz@eternit.com.br frederico.amaral@eternit.com.br
Phone: (55-11) 3038-3818 www.eternit.com.br/ir
(55-11) 3194-3881 www.blogdaeternit.com.br
(55-11) 3194-3872 @Eternit_RI
Dr. Fernandes Coelho Street, 85 – 8th floor Este material foi produzido com
papeis certificados FSC (Forest
Stewardship Council), que é uma
garantia de que a matéria-prima
advém de uma floresta manejada de
Pinheiros – São Paulo / SP
forma ecologicamente correta,
socialmente e economicamente
viável.
05423-040
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68

69. Eternit starts a new cycle
Welcome
to the next
70 years
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