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 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.)
33
4. Eternit Group
The largest and 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%
44
5. Diversified 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.
55
24. Net Revenue Breakdown
2007 1H12
Concrete tiles
Fiber cement and Accessories
50.0% 10.3%
New Business
17.7%
Bathroom
Chrysotile Chinaware
Mineral 4.8%
32.3%
Others (*)
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.
24
24
25. COGS Breakdown – 2Q12
Fiber Cement Chrysotile Mineral
Energy Energy
3% 8%
Others costs
10%
Others costs
Depreciation Materials (**)
20%
5% 28%
Depreciation
Raw material
4%
(*) 63%
Workforce
49%
Workforce
10%
(*) - Cement (46%), Chrysotile Ore (43%) and other (11%) (**) – Fuel, explosives, packaging, among other
Concrete Tiles
Energy
4%
Others costs Raw material
20% (***)
48%
Workforce
Depreciation 17%
11%
(***) - Cement (56%), sand (32%) and other (12%)
25
25
30. 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
1H10 1H11 1H12 2Q10 2Q11 2Q12
Investiments Capacity Increase – Eternit Capacity Increase – Tégula Equipment and Trucks - SAMA
Molds and New Business Acquisition Tégula Land acquisition – Ceará State
30
30
31. Development unit of Synthetic Marble
Synthetic Marble
Resin Silo Production Line
Products
31
31
32. Location of Multiproduct Plant - Ceará State
Cimenteira
Linha Gás Natural
35 km
15 km
Land of 400 000 m²
32
32
33. 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
Status of the building: initiated
End building: December 2013
Forecast of Gross Revenue at full capacity: approximately R$ 127 million
Straight Workforce: 330 employees
33
33
35. 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 8.50%
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
Luiz Barsi Filho 2008
Corporations
Marcelo Munhoz Auricchio 2011
Investors Abroad Luis Terepins (*) 2011
Clubs. Funds and Foundations Benedito Carlos Dias da Silva (*) 2012
(*) Independent member
Member
Advisory Board
Since
FREE-FLOAT 76.10%
Guilherme Affonso Ferreira 2011
Mário Fleck 2011
Victor Adler 2012
35
35
36. Liquidity
Number of shareholders Average Traded Volume
(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
36
36
37. Policy of Remuneration - Net Income X Distributed Earnings
In R$ million
Pay Out 76 % 79 % 74% 63%
102
97
81
73 72
55 57
36
2009 2010 2011 2012*
Net Income Dividends and Interest on own capital (*) Until June 2012
37
37
39. Eternit’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
IBOVESPA R$ 10.85
200
180
160
140
120
100 56,097
80
60
40
Ju 7
O 7
Ju 8
O 8
Ju 9
O 9
Ju 0
O 0
Ju 1
O 1
Ju 2
Fe 6
Fe 7
Fe 8
Fe 9
Fe 0
Fe 1
A 7
A 07
A 8
A 08
A 9
A 09
A 0
A 10
A 1
A 11
A 2
12
D 7
D 8
D 9
D 0
D 1
-0
-0
-0
-1
-0
-0
-0
-1
-1
-1
-1
-0
-0
-0
-0
-1
-1
0
0
0
1
1
1
-0
-0
-0
-1
-1
b-
n-
b-
n-
b-
n-
b-
n-
b-
n-
b-
n-
ug
ug
ug
ug
ug
pr
pr
pr
pr
pr
pr
ec
ec
ec
ec
ec
ec
ct
ct
ct
ct
ct
D
39
39
43. Economic Figures – GDP vs. Eternit
Source: BACEN.
(E) – Estimated - The growth in Eternit’s gross consolidated revenue was deflated by the IGP-M.
43
43
44. Reduction in the interest rates for the finance of construction
materials
To stimulate the sales of construction materials, Caixa Econômica Federal (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
44
46. 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
46
46
47. 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.
47
47
48. 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)
48
48
49. 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.
49
50. Eternit – An option for investment
ETNTY
Governance
ADR - Level I
Growth
Vision of
Brand with
Future Brand
Dividends
Case of
Success
50
50
51. 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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