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.”
22
3. Highlights - 1Q12
• Sales volume when compared to 1Q11:
Chrysotile Mineral: a growth of 6.0%
Fiber Cement: a reduction of 7.5%
Concrete tiles: a growth of 6.8%
• Net Consolidated Revenue amounted to R$ 210.2 million, a 12.9%
improvement in relation to 1Q11
• EBITDA was R$ 46.2 million, 75.1% greater than 1Q11
• Net Income was R$ 29.9 million, a growth of 77.5% over 1Q11
• Margins in 1Q12:
Gross margin of 45% (+ 7 p.p. in relation to 1Q11)
EBITDA margin of 22% (+8 p.p.)
Net margin of 14% (+5 p.p.)
3
4. Eternit Group
The largest and most diversified roof coverings industry in Brazil - 2011
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 8 million m²
tons
Capacity Used Fiber cement - 85% 100% Around 70%
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29. Capital Expenditures (in R$ million)
93
14
14
11
34
46
34 42
5
2
29
6 13
8 1 2 34
27 8
21 24 2
8 2
4 5
2009 2010 2011 1Q10 1Q11 1Q12
Investiments Synthetic Marble Capacity Increase – Tégula Acquisition Tégula
Molds and New Business Capacity Increase – Eternit Land acquisition – Ceará State Administrative
29
29
30. Development unit of Synthetic Marble
Synthetic Marble
Resin Silo Production Line
Products
30
30
31. Location of Multiproduct Plant - Ceará State
Cimenteira
Linha Gás Natural
35 km
15 km
Land of 400 000 m²
31
31
32. Multi-Product 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
Strong distribution network products technology
Efficient logistics Low cost production
Brand strength Expertise in new product
development
Investment Resources Expertise in new market
Knowledge in Brazil development
Investments: R$ 97 million
Capacity: 1,500,000 pieces per year
Begin building: First half of 2012
End building: 18 months
Forecast of Gross Revenue at full capacity: approximately R$ 127 million
Straight Workforce: 330 employees
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32
34. Ownership Structure – Apr/12
Shareholding Structure Apr/12
Geração L. Par. F. I. A. 15.35%
28.16% Luiz Barsi Filho 13.46%
61.43% Victor Adler + VIC DTVM 8.50%
Management 1.54%
8.32% Other Board of Directors 0.08%
Treasurystock 0.03%
2.09%
Member
Board of Directors
Since
Sérgio Alexandre Melleiro (*) 1993
Lírio Albino Parisotto (*) 2004
Individual Investors
Élio A. Martins 2007
Corporations Luiz Barsi Filho 2008
Investors Abroad Marcelo Munhoz Auricchio 2011
Clubs. Funds and Foundations Luis Terepins (*) 2011
Benedito Carlos Dias da Silva (*) 2012
(*) Independent member
Member
Advisory Board
FREE-FLOAT 76.17% Since
Guilherme Affonso Ferreira 2011
Mário Fleck 2011
Victor Adler 2012
34
34
35. Ownership Structure
Average Traded Volume
Number of shareholders (R$ thousand)
1,473
6,615 6,633 6,804
5,910 1,108
975
794
2009 2010 2011 2012(*) 2009 2010 2011 2012*
(*) Until April 2012
35
35
36. Policy of Remuneration - Net Income X Distributed Earnings
In R$ million
Pay Out 76 % 79 % 74% 60%
102
97
81
73 72
55
30
18
2009 2010 2011 2012*
Net Income Dividends and Interest on own capital (*) Until March 2012
36
36
37. Policy of Remuneration - Dividend Yield
15.1%
10.9%
9.1% 9.3%
8.8%
7.5% 7.5%
6.9% 6.9%
4.5%
2.3%
1.7%
2009 2010 2011 2012
(*) Unitl May 2012
(**) Until March 2012 Eternit – Yield(*) Savings (**) CDB (**)
Source: Eternit e BACEN
37
37
38. Eternit’s Shares Performance (Dec/06 – Apr/12)
Between 12/28/2006 to 4/30/2012, Eternit’s shares appreciated 64.7% and IBOVESPA Index
appreciated 39.0%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s shares
appreciated 168.1%.
220
ETER3
200 IBOVESPA
180 R$ 9.98
160
140
61,820
120
100
80
60
40
38
38
44. 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
44
44
45. 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.
45
45
46. Material Fact published in the principal newspapers and
magazines in Brazil from 02/17/2012 to 02/25/2012
Clarifications From the Brazilian Eternit Group
The Brazilian Eternit Group, in view of recent news regarding the trial held at the Court of Justice in Turin, Italy, in which two ex-board members of
Eternit Italy were held responsible for deaths resulting from the use of asbestos in its plants, wishes to publicly clarify that:
• Eternit S.A. is a locally-owned, publicly traded company listed in the New Market, which is the highest level of Corporate Governance at the Sao Paulo
State Stock, Commodities and Futures Exchange (BM&FBOVESPA), and bears no relation to Eternit in other countries, including Italy. The ownership
and use of the trademark are exercised in distinct manners by different companies in several countries.
• In Brazil Eternit employs chrysotile asbestos as a reinforcement fiber in the manufacturing of asbestos-cement roofing sheets and tiles using modern
production techniques. The Italian company employed various types of asbestos, especially the amphibole variety, in several applications and without
protection for the workers.
• The activity in Brazil is regulated by Federal Law 9.055/95, Decree 2.350/97 and Regulatory Norms issued by the Ministry of Labor and Employment.
These regulate the extraction, industrialization, sale and transportation of chrysotile asbestos and products which contain it, providing the Brazilian
population with durable, high quality and excellent cost-benefit products; in this manner contributing to reduce the Brazilian housing deficit.
• Market competition in the cement-asbestos segment, between Eternit S.A. and a French group that also is active in Brazil in the manufacturing and
use of synthetic fibers, has led some Brazilian states, especially where the plants are located, to approve anti-asbestos legislation. It is worth
mentioning that the validity of these laws awaits a merit decision on the part of the Supreme Federal Court.
• The extraction and processing of chrysotile asbestos by controlled entity SAMA and the use of the mineral in Eternit's plants are subject to strict
security standards that surpass legal requirements. With the improvement in production techniques and the perfection of work safety mechanisms, no
accounts of disease related to the use of chrysotile asbestos have been reported among company employees who joined the group since the 1980's. A
three-way agreement signed and in place since 1989, between the companies in the chain of production, workers and labor union entities and
registered at the Ministry of Labor and Employment, has been instrumental and decisive in consolidating this achievement.
• The use of asbestos-cement, water tank and roofing tile products containing chrysotile asbestos does not present risks to the population's health.
There are no reports in Brazil of a single case of a resident who developed any disease as a result of inhabiting one of the more than 25 million
residences covered by cement-asbestos roofing tiles containing asbestos. This fact is corroborated by a nationwide survey conducted by a renowned
medical team linked to the main Brazilian universities, the project and final report for which were approved by the National Council for Scientific and
Technological Development - CNPq, and which is available at the site http://www.sectec.go.gov.br/portal.
The Eternit Group operates under full transparency and maintains an "Open Doors Program" that has already received more than 50 thousand visitors
to its plants and which grants access to any person who wishes to know more about the safe processes employed in mining and producing products
that contain chrysotile asbestos.
46
46
47. Eternit – An option for investment
ETNTY
Governance
ADR - Level I
Growth
Vision of
Brand with
Future
Dividends
Case of
Success
47
47
48. 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
Pinheiros – São Paulo / SP garantia de que a matéria-prima
advém de uma floresta manejada de
forma ecologicamente correta,
05423-040
socialmente e economicamente
viável.
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48
