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
3. Eternit Group
The largest and most diversified roof coverings industry in Brazil
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 8 million m²
tons
Capacity Used
Around 85% 100% Around 70%
(2011)
3
4. Plants Location – Fiber cement and Crhysotile Mining
Commercial Branches
1) Anápolis/GO; 2) Colombo/PR; 3) Goiânia/GO; 4) Rio de Janeiro/RJ; 5) Simões Filho/BA; 6) Porto Alegre/RS and 7) São Paulo/SP.
4
5. Showroom Location
Come visit us
Rebouças Avenue, 2175 – São Paulo / SP
5
22. Structure of the Industrial Park in 2011
Brazilian
Fiber Cement ETERNIT
Market
Installed Capacity (tons /
Approximately 2,820,000 1,000,000
year)
Capacity utilization Around 86% Around 85%
Consumption (ton / year) 2,434,000 859,300
Companies 11 32% Market Share
Plants 19 5
Selling Points 39,000 15,000
22
23. Structure of the Industrial Park in 2011
Brazilian concrete
TÉGULA
roofing market
Installed Capacity
Approximately 24.0 million 8.0 million
(m² / year)
Capacity utilization Around 70% Around 70%
Consumption (m² / year) 16.9 million 5.9 million
Companies 35% Market Share
130
Plants 6
23
28. Net Revenue Breakdown (R$ million)
2007 2011
Fiber cement
Fiber cement 55.4%
59.3%
Chrysotile
Chrysotile Mineral
Mineral 26.2%
35.0%
New
New
Business
Business
18.4%
5.7%
Components Construction
2.6%
Systems
Components Construction
3.2%
Systems
Concrete tiles and
10.9%
Accessories
2.5% Others(*)
3.7% Bathroom Chinaware
1.2% Others(*)
(*) Others: metallic roofing tiles, polyethylene water tanks, lavatory seats, water pipe filters and synthetic marble.
28
29. COGS Breakdown – 4Q11
Fiber Cement Chrysotile Mineral
Energy Energy
3% 8%
Other Costs
9% Raw
Other Costs Depreciation
20% material2
5%
Depreciation 27%
Raw material1
4%
62%
Workforce
51%
Workforce
11%
1 - Cement (46%), Chrysotile Ore (43%) and others (11%) 2 – Fuel, explosives, packaging, among others
Concrete Tiles
Energy
5%
Other Costs
21%
Raw material3
Workforce 50%
17%
Depreciation
7%
3 - Cement (53%), sand (31%) and others (16%)
29
38. 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
38
40. Ownership Structure – Feb/12
Shareholding Structure Feb/12
Geração L. Par. F. I. A. 17.52%
26.02%
Luiz Barsi Filho 13.46%
Victor Adler + VIC DTVM 8.50%
Management 1.55%
Other Board of Directors 0.07%
7.45% 62.42% Treasurystock 0.03%
4.11%
Member
Board of Directors
Since
Sérgio Alexandre Melleiro (*) 1993
Lírio Albino Parisotto (*) 2004
Individual Investors
Victor Adler (*) 2005
Corporations Élio A. Martins 2007
Investors Abroad Luiz Barsi Filho (*) 2008
Clubs. Funds and Foundations Marcelo Munhoz Auricchio (*) 2011
Luis Terepins (*) 2011
(*) Independent member
Member
FREE-FLOAT 76.51% Consultive Council
Since
Guilherme Affonso Ferreira 2011
Mário Fleck 2011
40
41. Ownership Structure
Average Traded Volume
Number of shareholders (R$ thousand)
7,064
6,615 6,633
5,910 1,108 1,074
975
794
2009 2010 2011 2012(*) 2009 2010 2011 2012*
(*) Until February 2012
41
42. Policy of Remuneration
Net Income X Distributed Dividend Yield
Earnings (R$ million)
Pay Out 76 % 79 % 74%
102.1
97.2 15.1%
80.5
73.1 71.6
9.3%
55.3
7.5%
2.2%
2009 2010 2011 2009 2010 2011 2012(*)
Net Income Dividends and Interest on own capital
(*) Until March 2012
42
43. Eternit’s Shares Performance (Dec/06 – Feb/12)
Between 12/28/2006 to 2/29/2012, Eternit’s shares appreciated 53.0% and IBOVESPA appreciated
50.2%.
In the same period, including the payment of dividends and interest on own capital, Eternit’s shares
appreciated 148.8%.
220
ETER3
200 IBOVESPA
180
160
R$ 9.26
140
66,809
120
100
80
60
40
43
44. New Investor Relations website
In line with technological tendencies, on February,
Eternit launched its new Investor Relations website.
The new version will provide to shareholders,
investors and research analysts an easier access and
better navigability to information on the Company.
Access:
www.eternit.com.br/ir
44
50. Residences – Perception of Demand
Requiring some
type of home
maintenance or
expansion
77%
Permanent Households in
Brazil
44.5 million residences
Permanent Households –
57.8 million
Housing Deficit – 5,5 million
• The FGV study shows that between 2010 and 2022, the number of homes will grow in Brazil
by an average of 1.9 million/year;
Source: ANAMACO (National Association of Construction Material Traders) / Study by the João Pinheiro Foundation, official statistics body for the state of
Minas Gerais, is a public institution under the State Planning and Management Department / Abecip (Brazilian Association of Real Estate and Savings Entities) –
2nd Abecip Seminar – Real Estate Panorama: Opportunities and Challenges.
50
51. Housing Deficit by Family Income by Minimum Wages
(in thousands of units)
Regional
Up to Three to Five to More than
Geographic Region Housing
Three Five Ten Ten
Deficit
North 492 43 17 3 555
Northeast 1,861 55 23 8 1,947
Southeast 1,791 178 65 12 2,046
South 484 66 26 4 581
Midwest 375 22 14 6 417
Total
Approximate
5,003 364 146 33 5,546
Housing
Deficit
In 2008, the estimated housing deficit was 5.5 million units, the majority concentrated in the C and D
classes.
Source: Study by the João Pinheiro Foundation, official statistics body for the state of
Minas Gerais, is a public institution under the State Planning and Management Department .
51
52. Indicators
Brazilian GDP x Civil Construction GDP x Eternit
Gross Consolidated Revenue Home Mortgage Credit as % of GDP
37.1 106
78
18.3
16.8
11.6 48
8.6 8.2 7.5
5.05.4 5.1 4.8 34
3.62.7 3.5
30
18
-0.2 13 11
4.7
-6.3
2007 2008 2009 2010 2011 2012(E) Netherland USA Germany South Malaysia Chile Mexico China Brazil
Africa
GDP Construction (%) GDP Brazil (%) Eternit
(E) Estimate
Source: BACEN. Growth in Eternit’s consolidated gross revenue was deflated by Source: ABECIP, BACEN and FEBRABAN (Brazilian Banks Federation).
the IGP-M.
• In Brazil, home mortgage credit reached 4.7% of GDP in 2011 and should reach 11% in 2014.
Source: Abecip (Brazilian Association of Real Estate and Savings Entities) – 2nd Abecip Seminar – Real Estate Panorama: Opportunities and Challenges.
52
53. Residences – Management Model
New Residential Edifices Expansion and maintenance of Residential Units
(thousands of units)
(thousands of units)
70 110 260 670 900 2,600 3,100 2,100
74%
88% 93%
95% 96% 96% 99% 99%
26%
12% 7%
5% 4% 4% 1% 1%
A B C D/E A B C D/E
Construction via Builder Self- Managed Construction Construction via Builder Self- Managed Construction
Source: ANAMACO (National Association of Construction Material Traders ) – Sample survey by ANAMACO – Data for sector 2010
53
54. Consumer Profile
Where do they make their purchases? With home maintenance – who decides the purchase?
0.3% 0.2% 0.4%
Self-management
34%
Bricklayer/Works
42.5% Foreman/Engineer
56.4% 61.0%
65%
Builder/
Contractor
1%
52.7%
With building – who decides the purchase?
41.4%
37.1%
4,5% 2,0% 1,5%
Self-management
27%
AB C DE
Home Center Specialized Store Bricklayer/Works
Builder/
Foreman/Engineer
Contractor
Neighborhood Store Hyper-/Supermarkets 71%
2%
Source: ANAMACO (National Association of Construction Material Traders) – Sample survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007
54
55. Consumer Profile
Responsible for the Choice of Brand
34%
34% Professional
(bricklayer or
engineer)
32% Store salesperson
40%
36%
24%
Decision by the
interested party
himself or a member
38% 39% of the family
23%
AB C DE
Source: ANAMACO (National Association of Construction Material Traders) – Sample survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007
55
57. 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
57
58. 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.
58
59. Material Fact
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.
59
61. Corporate Management
Open Doors Program
Launch ................... November 2004
Contribute to society’s better understanding of
the mining and processing of Chrysotile Ore and
Purpose .................
the manufacture of fiber cement products in a
sustainable manner.
Five production plants of Eternit and the SAMA
Location ...........
mining company
Visitors ............... More than 50,000 until February 2012
Target ................... All society
61
62. Environment Focused Management
Zero Reject Monitoring Air Quality Water Reuse Reforestation Work
Quelônios Project - Animal Conservation Area
Seedling Nursery The only breeding program of Amazon turtles in Brazil and Reintegration
of Wild Animal Nature in partnership with IBAMA
62
64. Eternit – An option for investment
ETNTY
Governance
ADR - Level I
Case of
Diversification
Success
Growth Dividends
64
65. 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.
65
