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 ”
2
10. Global Market – Chrysotile Asbestos
Major World Producers – 2009 Global Consumption (MM of Ton)
Russia 45% 2009 2.1
China 22% 2008 2.4
Brazil* 14% 2007 2.4
Kazakhstan 10% 2006 2.3
Canada 8% 2005 2.3
Zimbabwe 1% 2004 2.1
* SAMA MINERAÇÃO (Minaçu/GO): Third largest in the world and first with ISO 14.001
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14. Products and solutions for civil construction
Water tanks Roof
and filters coverings
Components for Bathroom
constructions systems chinaware fixtures
14
20. Tégula Acquisition
• Largest Brazilian company in the concrete roofing business
• Portfolio with more than 33 product lines
• Resale of solar heating equipment
• Market share exceeding 30% in the Brazilian concrete roofing business in
2009
• Number of Employees: 428
• Installed Capacity: 7.2 million square meters
• Capacity Utilization from 02/11/2010 to 03/31/2010: around 60%
• Value of acquisition: R$ 39.2 million
20
28. Tégula – 1Q10*
Operating and Financial Aspects
Sales - Tiles (in m2) 587.466
Net Operating Revenue R$ 8,793 thousand
Gross Income R$ 2,844 thousand
EBITDA R$ 969 thousand
Net Income R$ 618 thousand
* As from February 11 2010, Tégula’s results were consolidated with those of Eternit as a whole
28
29. CAPEX
CAPEX (R$ million) CAPEX Breakdown (1Q10)*
8
Administrative
34 Technology
1% 6% Maintenance
28%
Occupational
9 safety
2%
Capacity Quality and
Productivity Development
53%
10%
1Q09 1Q10
* Does not include Tégula acquisition
Tégula Acquisition
Other investments
29
30. New production lines of finished products
At Goiânia / GO – Launched in April 2008.
At Colombo / PR – Launched in January 2009.
30
32. Eternit’s Shares Performance (Dec/06 - Apr/10)
Between 12/30/2006 and 04/30/2010, Eternit”s shares appreciated 17.1% and IBOVESPA appreciated
51.8%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s shares
appreciated 91.3%.
ETER3
200
IBOVESPA
160
67,529
120
R$ 7.92
80
40
dec-06 jun-07 dec-07 jun-08 dec-08 jun-09 apr-10
32
34. Liquidity
Average Traded Volume (R$ thousand)
3,708
2,900
1,297 1,127
1,108
716
604
2004 2005 2006 2007 2008 2009 2010(*)
(*) Until April 2010
34
35. Ownership Structure – April/10
5%
36%
57%
2%
Individual Investors (6,105 acionistas)
Corporations (88 acionistas)
Investors Abroad (48 acionistas)
Clubs. Funds and Foundations (143 acionistas)
Shareholders with more than 5% stake
Geração L. Par. Fund. Invest. em Ações 17.99%
Luiz Barsi Filho 11.29% Free-Float 62.6%
Victor Adler 6.63%
35
36. Shareholder Remuneration (2004 - May/10)
Net Income X Shareholders Remuneration (R$ million)
81 73
65
55
44
44 40
33 34 38
30 35
23
20
2004 2005 2006 2007 2008 2009 2010
Net Income Dividends and Interest on own capital
36
39. Structured Expansion and Diversification Program
OBJECTIVE
Consolidate Eternit as a supplier of products and solutions to the civil construction industry
INITIATIVES
- Creation of the Development and New Businesses Area
- Inclusion of metallic roofing on its portfolio
- Investment in new product lines of fiber cement
- Investment in machinery for new products on its plants
- Increase in SAMA’s production capacity
- Launches of new products
- Debut into chinaware bathroom fixtures
- Inorganic growth – Acquisitions
39
44. Corporate Management
Open Doors Program
Launch ................... November 2004
Contribute to society’s better understanding of
the mining and processing of Chrysotile
Purpose .................
Asbestos and the manufacture of fiber cement
products in a sustainable manner.
Five production plants of Eternit and the SAMA
Location ................
mining company
Visitors ................. More than 36,000 as of April 2010
Target .................... All society
44
46. Filtration System Air
Latin America's largest with more than 17 thousand filter sleeves
46
47. Environment Focused Management
Zero Reject Monitoring Air Water Reuse Reforestation
Quality Work
Seedling Quelônios Project - Animal Conservation Area
Nursery The only breeding program of Amazon turtles in Brazil and
Reintegration of Wild Animal Nature in partnership with IBAMA
47
48. Environment Focused Management
About 80% of the 4,500 hectares of the Cana Brava Mountains are
maintained as Forest Reserve by SAMA.
Monitored area
48
49. Social Actions - External Public
Terra Mirim Project
Eternit has partnered
with the NGO Terra
Mirim to promote the
training of young
people of Simões Filho
and region to act as
guides that will be
inserted in a project of
an ecological track to
be implemented soon
in the environmental
reserve of this unit.
The size of the area is
810 thousand square
meters
Aerial view of the Environmental Reserve of Simões Filho (BA) Plant
49
50. Social Actions - External Public
Brincar pra Valer Project! – It aims to show the
children of a sub-prefecture of São Paulo, that their
dreams can come true through thematic workshops and
recycling.
Lar Escola São Francisco - Eternit contributes to
LESF in order to rehabilitate children and adults
with special needs in order to their physical
recover, their educational and social integration
Publication and distribution of books in Braille
and audio books - In partnership with the Dorina
Nowill Foundation, Eternit distributed in the vicinity of
their units, more than 6 million copies in order to
facilitate access to the blind.
50
51. Social Actions - External Public
Sambaíba Project – SAMA develops this project to
a give young people a career through craft
workshops with the reuse of waste rock extracted
from the mine.
GRAAC - Eternit is a partner sponsor of GRAACC and
helps to guarantee children and adolescents with cancer, in
the most advanced scientific standard, the right to access
all the chances of cure with quality of life.
Sociedade dos Queimados - Eternit contributes to
society of burning in order to promote the social
reintegration of victims of fire burns, especially those
from low-income segment, providing a better quality of
life.
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52. Recreational Clubs - Workforce
Minaçu - GO Goiânia - GO Anápolis - GO
Rio de Janeiro - RJ Simões Filho - BA Colombo - PR
52
55. Shareholders' Meeting via WEB
Another step in good corporate governance practices;
The system allows electronic proxy voting by digital certificate;
More than half of Eternit’ shareholders reside outside the state of Sao Paulo;
CVM (Securities and Exchange Commission of Brazil) and IBGC (Brazilian
Corporate Governance Institute) recommend that companies encourage the
participation of shareholders at meetings;
The first 1,000 registered shareholders will have free digital certificates for the
first year;
Partners:
55
56. BLOG
www.blogdaeternit.com.br
Access and participate.
56
57. BLOG
Communication channel for all who wants to know about Eternit;
It aims to enable interaction between the company and its public in a
transparent manner;
Another communication channel with stakeholders;
The blog is divided into four sections:
Chrysotile Asbestos
Civil Construction
Capital Markets
Environmental Responsibility
57
58. American Depositary Receipt - ADR
On February 24 2010, the Board of Directors approved to initiate the accession
process to the American Depositary Receipts Program - Level 1 ADRs.
Sponsor: Eternit;
Depositary Bank: The Bank of New York;
Custodian Bank: Banco Bradesco;
Ratio between Eternit’ shares and ADR: One ADR for one common share.
58
59. IR Global Rankings
Award for Best Corporate
Governance in Latin America
IR Global Rankings elected for the second
consecutive year the Program on Corporate
Governance of Eternit as the best in Latin America.
on April 9, 2010.
The 12th annual edition of the award had the
participation of 503 companies from 35 countries .
In the previous edition 163 companies from 32
countries participated
59
61. Chrysotile – The Brazilian Asbestos
The use of Chrysotile Asbestos 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 Asbestos
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 asbestos fibers
61
62. Information
Investor Relations
Élio A. Martins Gilberto Cominato
elio.martins@eternit.com.br gilberto.cominato@eternit.com.br
Rodrigo Lopes da Luz Bárbara M. Tanure Gonçalves
rodrigo.luz@eternit.com.br barbara.goncalves@eternit.com.br
Phone: (55-11) 3813-6034
www.eternit.com.br/ir
This material was produced using FSC certified paper (Forest
Stewardship Council), which is a guarantee that the raw material
comes from a forest managed in an environmentally
responsible, socially and economically viable.
62