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
10
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 35% in the Brazilian concrete roofing business
• Number of Employees: more than 400
• Installed Capacity: 7.2 million square meters
• Capacity Utilization in 2Q10: around 70% (60% in 1Q10)
• Value of acquisition: R$ 39.2 million
• Acquired in 02/11/2010
20
28. Tégula – 2Q10
Operating and Financial Aspects 2Q10 02/11 a 06/30*
Sales - Tiles (in m2) 1,299,973 1,887,439
Net Operating Revenue R$ 19,004 thousand R$ 27,797 thousand
Gross Income R$ 6,527 thousand R$ 9,371 thousand
EBITDA R$ 3,024 thousand R$ 3,993 thousand
Net Income R$ 1,736 thousand R$ 2,354 thousand
* As from February 11 2010, Tégula’s results were consolidated with those of Eternit as a whole
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29. CAPEX
CAPEX (R$ million) CAPEX Breakdown (2Q10)*
59
4 Capacity/
Productivity
57%
34
Quality and
Development
7%
Occupational Administrative
Safety and Health 4%
21 Technology
15 2% Maintainance
3%
27%
1H09 1H10
Capacity Increase - ETERNIT
* Does not include Tégula acquisition
Tégula Acquisition
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 - Jul/10)
Between 12/28/2006 and 07/30/2010, Eternit”s shares appreciated 26.7% and IBOVESPA appreciated
51.8%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s shares
appreciated 107.0%.
200 ETER3
IBOVESPA
170
67,515
140
R$ 8.57
110
80
50
dez-06 jun-07 dez-07 jun-08 dez-08 jun-09 dez-09 jul-10
32
34. Liquidity
Average Traded Volume (R$ thousand)
3,708
2,900
1,297
1,108 1,019
716
604
2004 2005 2006 2007 2008 2009 2010(*)
(*) Until July 2010
34
35. Ownership Structure – Jul/10
5%
33%
Individual Investors (5,787 shareholders)
Corporations (86 shareholders)
Investors Abroad (51 shareholders)
Clubs. Funds and Foundations (139 shareholders)
4%
58%
Shareholding Structure Jul/10 Jul/07
Geração L. Par. Fund. Invest. em Ações 19.41% 6.89%
Luiz Barsi Filho 12.53% 4.72%
Victor Adler 6.70% 5.24%
Fundo de Participação Social – FPS - 6.18%
Bahema Participações S. A. - 5.93%
Management 1.42% 0.81%
Treasury stock 0.03% 0.28%
Free-Float 59.91% 69.95%
35
36. Shareholder Remuneration (2004 - Aug/10)
Net Income X Shareholders Remuneration (R$ million)
81 73
65
55
54
44 47
44 40
33 34 38
30
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 39,000 as of July 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.
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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
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.
Ticker: ETNTY
58
59. Awards – 2Q10
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.
IR Magazine elected Eternit among the five best
companies in Investor Relations for Individual
Investors.
The 17th Ranking of Industry Concept and Image
elected Eternit the 1st in fiber cement segment
and 2nd in polyethylene water tanks.
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
IR Consultant
Marcelo Fonseca
marcelo.fonseca@firb.com 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
Phone: (55-11) 3897-6857 responsible, socially and economically viable.
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