conference call 2 q12 inglês1408

Conference Call – Earning Results 2Q12 – 08/10/2012

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“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.”

Disclaimer

3 3

• Recognitions: the Eternit’s Governance is awarded againIR Magazine Award – best program for individuals investorsAPIMEC 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.)

Highlights of 2Q12 (when compared to 2Q11)

4 4

Eternit Group

Activity

Manufacture of fiber cement and commercialization of bathroom

chinaware and metallic fittings and components for construction systems

Chrysotile Mining

Manufacture of concrete tiles and commercialization of sanitary ware

Industrial Units 4 1 1 6

Market Share

Leader in fiber cement –32% of Market Share

The world's 3rd

largest – 15% of Market Share

Leader in concrete tiles –35% of Market

Share5th largest of Brazil in sanitary wares

Capacity 1 million tons / fiber cement 300 thousand tons 10 million m²

Capacity Used Fiber cement - 80% 100% Around 60%

The largest and most diversified roof coverings industry in Brazil - 2012

5 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.

6 6

Diversified Portfolio – Fiber Cement Tiles

7 7

Diversified Portfolio – Metallic Fittings

8 8

Diversified Portfolio - Components for constructions systems

9 9

Diversified Portfolio – Water tanks and filters

1010

Diversified Portfolio – Bathroom chinaware and lavatory seats

1111

Diversified Portfolio – Metal Fittings

1212

Diversified Portfolio – Synthetic Marble

1313

Diversified Portfolio – Concrete Tiles

1414

Diversified Portfolio – Full Roofing Solutions

SAMA - Overview

1616

Global Market – Chrysotile Mineral - 2011

Global Consumption (MM of Ton)

Canada 4%

Russia – 50%

Kazakhstan – 11%

China – 20%

Brazil 15%

2011

2.2

2008

2.4

2007

2.4

2006

2.3

2005

2.3

2004

2.1

2009

2.1

2010

2.2

1717

1H10 1H11 1H12 2Q10 2Q11 2Q12

67.3 63.5 70.834.1 37.4 36.0

77.6 84.7 76.3

40.4 42.0 38.2

144.9 148.2 147.1

74.5 79.4 74.2

Sales of Chrysotile Mineral (thous. tons)

Domestic Market Foreign Market

- 6.6%6.6 %

- 0.8 %2.3 %

2Q12 x 2Q11

• Domestic Market – reduction of 9.0%

• Foreign Market– reduction of 4.0%

1H12 x 1H11

• Domestic Market – reduction of 9.9%

• Foreign Market – increase of 11.5%

Eternit and Tégula - Overview

1919

Residential Market Industrial and Commercial Market

Total Market Market Evolution (MM m2)

Metallic12%

Ceramics35%

Fiber cement47%

Other

2%

Fiber cement38%

Metallic40%

Other11%

Ceramics11%

Concrete4%

Ceramics45%

Fiber cement

51%

Concrete

4%

Covering market – Brazil - 2011

2005 2006 2007 2008 2009 2010 2011

406 425459

505 495534

5618%

5%10% -2% 8%

Source: Estimation of the Production Chain of Fiber Cement

5%

2020

Sales of Fiber Cement* (thous. tons)

* Includes components for construction systems

- 11.3 %6.0 %

- 15.0 %15.7 %

1H10 1H11 1H12 2Q10 2Q11 2Q12

389.5 412.9366.3

181.7 210.2 178.7

2121

Concrete Tiles (thous. square meters)

*Tégula was acquired on February 11 2010. The amount of 477 thousand m2 doesn’t refer to Eternit.

18.5 %

14.8 % -7.8 %

-1.9 %

1H10* 1H11 1H12 2Q10 2Q11 2Q12

477

1,887

2,3642,801 2,773

1,300 1,493 1,376

Economic and Financial Performance

2323

Consolidated Net Revenue (R$ million)

Domestic Market Foreign Market

13.2 % 5.0 %

11.2 % 8.8 %

1H10 1H11 1H12 2Q10 2Q11 2Q12

54.2 44.4 73.8 27.0 25.3 39.8

294.1 342.9347.4

150.6 175.7 171.2

348.3387.3 421.2

177.6 201.0 211.0

2424

Net Revenue Breakdown

(*) Other: metallic roofing tiles, polyethylene water tanks, lavatory seats and metallic bathroom fittings, water pipe filters, synthetic marble and components for construction systems.

2007 1H12

Chrysotile Mineral32.3%

Fiber cement50.0%

Concrete tiles and Accessories

10.3%

Bathroom Chinaware

4.8%

Others (*)2.6%

New Business17.7%

2525

COGS Breakdown – 2Q12

(*) - Cement (46%), Chrysotile Ore (43%) and other (11%)

(***) - Cement (56%), sand (32%) and other (12%)

(**) – Fuel, explosives, packaging, among other

Fiber Cement Chrysotile Mineral

Concrete Tiles

Raw material (*) 63%

Workforce10%

Depreciation4%

Others costs20%

Energy3%

Materials (**) 28%

Workforce49%

Depreciation5%

Others costs10%

Energy8%

Raw material (***)48%

Workforce17%Depreciation

11%

Others costs20%

Energy4%

2626

EBITDA (in R$ million)

-13.1 % 24.4 %

-19.6 % 47.5 %

1H10 1H11 1H12 2Q10 2Q11 2Q12

72.0

57.9

85.5

36.3 31.539.3

2727

Net Income (in R$ million)

- 20.4 % 50.5 %

- 13.7 % 28.7 %

1H10 1H11 1H12 2Q10 2Q11 2Q12

47.5

37.8

56.9

24.321.0

27.0

2828

Margins

Net MarginEBITDA MarginGross Margin

45%

38%

44%46%

38%

44%

21%

15%

20% 20%

16%19%

14%

10%

14% 14%

10%13%

1H10 1H11 1H12 2Q10 2Q11 2Q12

Capital Expenditures

3030

Investiments

Acquisition Tégula

Capacity Increase – Eternit

Molds and New Business

Capital Expenditures (in R$ million)

Equipment and Trucks - SAMA

Land acquisition – Ceará State

Capacity Increase – Tégula

1H10 1H11 1H12 2Q10 2Q11 2Q12

2112 11 13

6 6

4

34

3

4

52

210

10

59

19 21 17

11 16

3131

Development unit of Synthetic Marble

Production LineResin SiloSynthetic Marble

Products

3232

Location of Multiproduct Plant - Ceará State

Land of 400 000 m²

35 km15 km

Linha Gás Natural

Cimenteira

3333

Share of 40%Knowledge of manufacturing and

products technologyLow cost production

Expertise in new product development

Expertise in new market development

Share of 60%Knowledge of the local market

Strong distribution networkEfficient logisticsBrand strength

Investment ResourcesKnowledge in Brazil

Investments: R$ 97 millionCapacity: 1,500,000 pieces per year

Status of the building: initiatedEnd building: December 2013

Forecast of Gross Revenue at full capacity: approximately R$ 127 millionStraight Workforce: 330 employees

Multi-Product Unit in the Ceará State - Bathroom Chinaware Plant

Joint-Venture: Companhia Sulamericana de Cerâmica S. A.

Capital Markets

3535

Clubs. Funds and Foundations

Ownership Structure – Jul/12

Shareholding Structure

Geração L. Par. F. I. A. 15.27%

Luiz Barsi Filho 13.47%

Victor Adler + VIC DTVM 8.50%

Management 1.59%

Treasurystock 0.03%

FREE-FLOAT 76.10%

Individual InvestorsCorporationsInvestors Abroad

Advisory Board Member Since

Guilherme Affonso Ferreira 2011Mário Fleck 2011Victor Adler 2012

Board of Directors Member Since

Sérgio Alexandre Melleiro (*) 1993Lírio Albino Parisotto (*) 2004

Élio A. Martins 2007Luiz Barsi Filho 2008

Marcelo Munhoz Auricchio 2011Luis Terepins (*) 2011

Benedito Carlos Dias da Silva (*) 2012(*) Independent member

59.8%

2.2%

10.50%

27.5%

3636

(*) Until July 2012

Liquidity

Number of shareholders Average Traded Volume (R$ thousand)

2009 2010 2011 2012(*)

6,6155,910

6,633 6,627

2009 2010 2011 2012(*)

1,108975

794

1,482

3737

Policy of Remuneration - Net Income X Distributed Earnings

In R$ million

76 % 79 % 74%Pay Out 63%

Net Income Dividends and Interest on own capital (*) Until June 20122009 2010 2011 2012*

73

102 97

57 55

81 72

36

3838

Policy of Remuneration - Dividend Yield

(*) Unitl June 2012

Source: Eternit e BACEN Savings (**)Eternit – Yield(*) CDB (**)

2009 2010 2011 2012

15.1%

9.3%

7.5%6.7%6.9% 6.9%

7.5%

1.7%

9.1% 8.8%

10.9%

2.3%

3939

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%.

56,097

R$ 10.85

40

60

80

100

120

140

160

180

200

220

Dec-06

Feb-07

Apr-07

Jun-07

Aug-07Oct-

07Dec

-07Feb

-08Apr-0

8Ju

n-08Aug-08Oct-

08Dec

-08Feb

-09Apr-0

9Ju

n-09Aug-09Oct-

09Dec

-09Feb

-10Apr-1

0Ju

n-10Aug-10Oct-

10Dec

-10Feb

-11Apr-1

1Ju

n-11Aug-11Oct-

11Dec

-11Feb

-12Apr-1

2Ju

n-12

ETER3

IBOVESPA

Outlook

4141

Favorable Moment for Civil Construction

4242

11,6%12,0%

10,6%10,1% 9,9%

8,7% 8,5%7,4%

6,4%5,7%

936

1.4101.585 1.645 1.706 1.735 1.777 1.835 1.889 1.934 1.984

303.028321.163

338.501 365.331377.361

404.751

2005 2006 2007 2008 2009 2010 2011 2012

300 350

380 415

465 510

545

622 CAGR: 11.0% CAGR: 5.96%

Economic Figures

Minimum Wage (R$) Workforce (R$ million)

Credit Availability Unemployment Rate - BrazilGovernment, Industry, Housing, Rural, Commerce, Credit

Individuals (R$ billlion)

Sou

rce:

BA

CEN

e I

BG

E

4343

Economic Figures – GDP vs. Eternit

Source: BACEN. (E) – Estimated - The growth in Eternit’s gross consolidated revenue was deflated by the IGP-M.

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

Chrysotile – The Brazilian Mineral

4646

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).

Serpentinite rock with Chrysotile Ore fibers

White Ore

Bends and silky fibers without tip

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.

High Concentration of Magnesium:3MgOSiO2H2O

4747

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 beattributed 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.

4848

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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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.

Recognitions - 2012

5050

Eternit – An option for investment

ADR - Level I

ETNTY

Governance

Growthwith

Dividends

Vision ofFuture

Case ofSuccess

BrandBrand

5151

Information

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 forma ecologicamente correta, socialmente e economicamente viável.

www.blogdaeternit.com.br

www.eternit.com.br/ir

Élio A. Martinselio.martins@eternit.com.br

Paula Dell Agnolo Barhumpaula.barhum@eternit.com.br

Frederico Gomes Amaralfrederico.amaral@eternit.com.br

Rodrigo Lopes da Luzrodrigo.luz@eternit.com.br

Phone: (55-11) 3038-3818

(55-11) 3194-3881

(55-11) 3194-3872 @Eternit_RI

Dr. Fernandes Coelho Street, 85 – 8th floor

Pinheiros – São Paulo / SP

05423-040

5252

Eternit starts a new cycle

Welcome to the next

70 years