Corporate Presentation | 2Q12

2 2

“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 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.)

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 cement300 thousand

tons10 million m²

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

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

5 5

1) Anápolis/GO; 2) Colombo/PR; 3) Goiânia/GO; 4) Rio de Janeiro/RJ; 5) Simões Filho/BA and 6) São Paulo/SP.

Plants Location – Fiber cement and Crhysotile Mining

Commercial Branches

6 6

Showroom Location

Come visit usRebouças Avenue, 2175 – São Paulo / SP

7 7

Plants Location – Concrete tiles

8 8

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.

9 9

Diversified Portfolio – Fiber Cement Tiles

10 10

Diversified Portfolio – Metallic Fittings

11 11

Diversified Portfolio - Components for constructions systems

12 12

Diversified Portfolio – Water tanks and filters

13 13

Diversified Portfolio – Bathroom chinaware and lavatory seats

14 14

Diversified Portfolio – Metal Fittings

15 15

Diversified Portfolio – Synthetic Marble

16 16

Diversified Portfolio – Concrete Tiles

17 17

Diversified Portfolio – Full Roofing Solutions

SAMA - Overview

19 19

Global Market – Chrysotile Mineral - 2011

Global Consumption (MM of Ton)Global Consumption (MM of Ton)

Canada 4%

Russia – 50%

Kazakhstan – 11%

China – 20%

Brazil 15%

20112011

2.22.2

20082008

2.42.4

20072007

2.42.4

20062006

2.32.3

20052005

2.32.3

20042004

2.12.1

20092009

2.12.1

20102010

2.22.2

20 20

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%6,6 %6,6 %

- 0.8 %- 0.8 %2,3 %2,3 %

2Q12 x 2Q11

• Domestic Market – reduction of 9.0%

• Foreign Market– reduction of 4.0%

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%

1H12 x 1H11

• Domestic Market – reduction of 9.9%

• Foreign Market – increase of 11.5%

Eternit and Tégula - Overview

22 22

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%

23 23

Structure of the Industrial Park in 2011

Brazilian Fiber Cement

MarketETERNIT

Installed Capacity (tons / year)

Approximately 2,820,000 1,000,000

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

24 24

Structure of the Industrial Park in 2011

Brazilian concrete roofing market TÉGULA

Installed Capacity (m² / year)

Approximately 24.0 million 8.0 million

Capacity utilization Around 70% Around 70%

Consumption (m² / year) 16.9 million 5.9 million

Companies130

35% Market Share

Plants 6

25 25

Sales of Fiber Cement* (thous. tons)

* Includes components for construction systems* Includes components for construction systems

- 11.3 %- 11.3 % 6.0 % 6.0 %

- 15.0 %- 15.0 %15.7 %15.7 %

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

389.5 412.9366.3

181.7 210.2 178.7

26 26

Concrete Tiles (thous. square meters)

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

18.5 %18.5 %

14.8 % 14.8 % -7.8 % -7.8 %

-1.9 % -1.9 %

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

477

1,887

2,3642,801 2,773

1,3001,493 1,376

Economic and Financial Performance

28 28

Consolidated Net Revenue (R$ million)

Domestic Market Foreign Market

13.2 % 13.2 % 5.0 % 5.0 %

11.2 %11.2 % 8.8 % 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

29 29

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.(*) 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%

30 30

COGS Breakdown – 2Q12

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

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

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

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

31 31

EBITDA (in R$ million)

-13.1 % -13.1 % 24.4 % 24.4 %

-19.6 % -19.6 % 47.5 % 47.5 %

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

72.0

57.9

85.5

36.3 31.539.3

32 32

Net Income (in R$ million)

- 20.4 % - 20.4 % 50.5 %50.5 %

- 13.7 %- 13.7 % 28.7 % 28.7 %

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

47.5

37.8

56.9

24.321.0

27.0

33 33

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

35 35

1S10 1S11 1S12 2T10 2T11 2T12

2112 11 13

6 6

4

34

3

4

52

210

10

59

19 21 17

11 16

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

36 36

Development unit of Synthetic Marble

Production LineResin SiloSynthetic Marble

Products

37 37

Location of Multiproduct Plant - Ceará State

Land of 400 000 m²

35 km15 km

Linha Gás Natural

Cimenteira

38 38

Share of 40%

Knowledge of manufacturing and products technology

Low cost production

Expertise in new product development

Expertise in new market development

Share of 60%

Knowledge of the local market

Strong distribution network

Efficient logistics

Brand strength

Investment Resources

Knowledge in Brazil

Investments: R$ 97 million

Capacity: 1,500,000 pieces per year

Status of the building: initiated

End building: December 2012

Forecast of Gross Revenue at full capacity: approximately R$ 127 million

Straight Workforce: 330 employees

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

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

39 39

Artistic view and lay out of the Bathroom Chinaware Plant

Capital Markets

41 41

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 6.70%

Management 1.59%

Treasurystock 0.03%

FREE-FLOAT 76.10%

Individual Investors

Corporations Investors Abroad

Advisory BoardMember

Since

Guilherme Affonso Ferreira 2011Mário Fleck 2011Victor Adler 2012

Board of DirectorsMember

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%

42 42

(*) 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

43 43

2009 2010 2011 2012

73

102 97

57*55

81 72

54**

Policy of Remuneration - Net Income X Distributed Earnings

In R$ million

76 %76 % 79 %79 % 74% 74%Pay OutPay Out 95% 95%

Net Income Dividends and Interest on own capital (*) Until June 2012 / (**) Until August 2012

44 44

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%

45 45

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-0

6

Feb-0

7

Apr-07

Jun-0

7

Aug-07

Oct-0

7

Dec-0

7

Feb-0

8

Apr-08

Jun-0

8

Aug-08

Oct-0

8

Dec-0

8

Feb-0

9

Apr-09

Jun-0

9

Aug-09

Oct-0

9

Dec-0

9

Feb-1

0

Apr-10

Jun-1

0

Aug-10

Oct-1

0

Dec-1

0

Feb-1

1

Apr-11

Jun-1

1

Aug-11

Oct-1

1

Dec-1

1

Feb-1

2

Apr-12

ETER3

IBOVESPA

Outlook

47 47

Favorable Moment for Civil Construction

48 48

Economic Figures

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

Food Basic Basket SP x Minimum Wage (purchasing power)

%Minimum Wage (R$) Food Basic Basket in SP (R$)

Sou

rce:

IBG

E a

nd

DIE

ES

ES

ou

rce:

BA

CEN

CAGR: 11.0% CAGR: 5.96%

49 49

Sou

rce:

BA

CEN

Sou

rce:

IBG

E

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

Credit Individuals (R$ billlion)

Economic Figures

Growth of the Brazilian Savings

R$ billlion (%) Chg YoY

Sou

rce:

BA

CEN

- S

BP

E

Residences - Perception of Demand

51

Residences – Perception of Demand

Source: ANAMACO (National Association of Construction MaterialTraders) / Study by João Pinheiro Foundation, official estate of statistics of Minas Gerais

/ ABECIP (Brazilian Association of Real Estate and Savings Entities) – 2nd ABECIP Seminar – Real Estate Panorama: Opportunities and Challenges.

• The FGV studies show that between 2010 e 2022, the number of homes will grow in Brazil by na average of 1.9 million/year;• The FGV studies show that between 2010 e 2022, the number of homes will grow in Brazil by na average of 1.9 million/year;

NeedNeedSome kind ofSome kind of

renovation or renovation or expansionexpansion

77%77% Permanent Homes in Brazil

44.5 million homesPermanent Homes – 57.8 million

Housing Deficit – 5.5 million

52

In 2008, the estimated housing deficit was 5.5 millions units, the majority concentraded in the C and D classes.In 2008, the estimated housing deficit was 5.5 millions units, the majority concentraded in the C and D classes.

Housing Deficit by Family Income by Minimum Wages

Source: study by the João Pinheiro Foundation, official statistics body for the state of Minas Gerais.

In thousand of Units

Geographic RegionUp to Three

Three toFive

Five toTen

More thanTen

RegionalHousing

Deficit

North 492 43 17 3 555

Northeast 1,861 55 23 8 1,947

Southeast 1,791 178 65 12 2,406

South 484 66 26 4 581

Midwest 375 22 14 6 417

TotalApproximateHousingDeficit

5,003 364 146 33 5,546

53

Indicators

Brazilian GDP x Civil Construction GDP x Eternit Gross Consolidated Revenue Home Mortgage Credit as % of GDP

• In Brazil, the home mortgage credit reached 4.7% of GDP in 2011 and it should reach 11% in 2014.

Source: ABECIP (Brazilian Association of Real Estate and Savings Entities ) – 2nd ABECIP Seminar – Real Estate Panorama: Opportunities and Challenges. Source: ABECIP (Brazilian Association of Real Estate and Savings Entities ) – 2nd ABECIP Seminar – Real Estate Panorama: Opportunities and Challenges.

(E) Estimated

Source: BACEN. The growth of the Eternit gross consolidated revenue was deflated by IGP-M.

Source: ABECIP, BACEN and FEBRABAN (Brazilian Banks Federation).

2007 2008 2009 2010 2011 2012(E)

5.0 8.2

(6.3)

11.6

3.6 4.0 5.4 5.1

(0.2)

7.5 2.7 2.5

8.6

37.1

16.8 18.3 15.7

7.9

GDP Construction (%) GDP Brazil (%) Eternit (%)

54

Reduction in the interest rates for the finance of construction materials

To stimulate the sales of construction materials, the Caixa Econômica Federal (the 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.

To stimulate the sales of construction materials, the Caixa Econômica Federal (the 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

55

Expansion and Maintenance of Residential

Units

(in thousands of units)

Residences – Management Model

New Residential Edifices

(in thousands of units)

Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO – Data for sector 2010Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO – Data for sector 2010

56

With home building – who decides the

purchase?

Consumer Profile

Where do they make their purchases? With home maintenance – who decides the

purchse?

Source: ANAMACO (National Association of Construction Material Trades)- Adapted from Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007Source: ANAMACO (National Association of Construction Material Trades)- Adapted from Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007

Self-management/ Self-

construction34%

Construtora/Empreiteira

1%

Bricklayer/ Works Foreman/ Engineer

65%

Self-management/ Self-

construction27%

Builder/Contractor

2%

Bricklayer/ Works Foreman/Engineer

71%

57

Consumer Profile

Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007Source: ANAMACO (National Association of Construction Material Trades)- Sample Survey by ANAMACO/Latin Panel on the Conditions of the Homes - 2007

Responsible for the Indication and Recomendation of

Brand

Chrysotile – The Brazilian Mineral

59 59

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

60 60

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.

61 61

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)

Corporate and Environmental Management

63 63

Corporate Management

Launch ...................

November 2004

Purpose .................

Contribute to society’s better understanding of the mining and processing of Chrysotile Ore and the manufacture of fiber cement products in a sustainable manner.

Location ...........Five production plants of Eternit and the SAMA mining company

Visitors ............... 53,000 until Jun 2012

Target ...................

All society

Open Doors Program

64 64

Environment Focused Management

Quelônios Project - Animal Conservation Area

The only breeding program of Amazon turtles in Brazil and Reintegration of Wild Animal Nature in partnership with IBAMA

Zero Reject Monitoring Air Quality

Water Reuse Reforestation Work

Seedling Nursery

65

Social Actions

66

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

67 67

Eternit – An option for investment

ADR - Level IADR - Level I

ETNTYETNTY

Governance

Growthwith

Dividends

Vision ofFuture

Case ofSuccess

BrandBrandBrand

68 68

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.

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

69 69

Eternit starts a new cycle

Welcome to the next

70 years