1. Conference Call Earning Results 2Q12 08/10/2012

2. Disclaimer Forward looking statements included in this presentation regarding the Companys business, operating and financial results and Companys growth are only predictions and were based on managements 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.22 3. hlights of 2Q12 (when compared to 2Q11) Recognitions: the Eternits 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.)33 4. Eternit Groupmost diversified roof coverings industry in Brazil - 2012 Manufacture of fiber cement andManufacture ofcommercialization of bathroomconcrete tiles andActivitychinaware and metallic fittings andChrysotile Mining commercialization components for construction systemsof sanitary wareIndustrial Units4 1 16 Leader in fiber cement Leader inThe worlds 3rd32% of Market Share concrete tiles largest 15% ofMarket Share35% of Market Market Share 5th largest of Brazil in sanitary waresShare300 thousandCapacity 1 million tons / fiber cement 10 million mtonsCapacity UsedFiber cement - 80% 100% Around 60% 44 5. versified Portfolio Chrysotile MineralMain use of the crhysotile mineral99% of the world production of chrysotile is used for fiber cement products: Tiles; Covering plates; Wall panels; Water pipes and water tanks; and Etc.55 6. versified Portfolio Fiber Cement Tiles 66 7. Diversified Portfolio Metallic Fittings77 8. Portfolio - Components for constructions systems 88 9. ersified Portfolio Water tanks and filters 99 10. Portfolio Bathroom chinaware and lavatory seats10 10 11. Diversified Portfolio Metal Fittings 1111 12. Diversified Portfolio Synthetic Marble 1212 13. Diversified Portfolio Concrete Tiles 1313 14. ersified Portfolio Full Roofing Solutions14 14 15. SAMA - Overview 16. obal Market Chrysotile Mineral - 2011 Canada 4%Russia 50%Kazakhstan 11%China 20% Brazil 15%Global Consumption (MM of Ton)2004 200520062007 2008 2009 2010 20112.12.3 2.3 2.42.42.12.22.216 16 17. ales of Chrysotile Mineral (thous. tons) 1H12 x 1H112Q12 x 2Q11 Domestic Market reduction of 9.9% Domestic Market reduction of 9.0% Foreign Market increase of 11.5% Foreign Market reduction of 4.0%2.3 %- 0.8 %144.9148.2147.1 6.6 % - 6.6% 77.6 84.7 76.3 74.5 79.4 74.240.442.038.2 67.3 63.5 70.834.137.436.01H101H11 1H12 2Q102Q11 2Q12 Domestic Market Foreign Market 1717 18. Eternit and Tgula - Overview 19. Covering market Brazil - 2011 Residential Market Industrial and Commercial MarketConcret Othere11% Fiber cement4%38% Fiber cementCeramics51%Metallic Ceramics45% 40%11%Total MarketMarket Evolution (MM m 2 ) 8%5% 10%-2%Concrete5%8% MetallicOther 534561 4% 505 49512%2%459 406425CeramicsFiber cement35%47%Source: Estimation of the Production Chain of Fiber Cement2005 2006 2007 20082009 2010 201119 19 20. Sales of Fiber Cement* (thous. tons)6.0 % - 11.3 % 389.5 412.9 366.315.7 % - 15.0 % 181.7 210.2178.7 1H10 1H11 1H122Q10 2Q11 2Q12* Includes components for construction systems20 20 21. Concrete Tiles (thous. square meters)18.5 % -1.9 % 2,8012,773 14.8 %-7.8 % 2,364 1,4931,3761,300 1,887477 1H10*1H11 1H122Q102Q112Q12 *Tgula was acquired on February 11 2010. The amount of 477 thousand m2 doesnt refer to Eternit.21 21 22. Economic and Financial Performance 23. Consolidated Net Revenue (R$ million) 11.2 % 8.8 % 421.2 387.3 13.2 % 5.0 %348.3201.0 211.0 347.4 177.6 294.1342.9 150.6 175.7 171.2 54.2 44.4 73.8 27.025.339.81H101H111H122Q10 2Q11 2Q12Domestic Market Foreign Market23 23 24. Net Revenue Breakdown 20071H12Concr et e t ilesFiber cem entand Accessories 50.0% 10.3%New Business 17.7% Bat hroomChrysot ileChinaw ar e Miner al4.8% 32.3% Ot hers ( * )2.6% (*) Other: metallic roofing tiles, polyethylene water tanks, lavatory seats and metallic bathroom fittings, water pipe filters, synthetic marble and components for construction systems.24 24 25. COGS Breakdown 2Q12 Fiber CementChrysotile MineralEnergy Ener gy 3% 8% Ot her s cost s 10% Ot hers cost sDepr eciat ion 20%Mat erials ( * * )5% 28%Depreciat ion Raw m at erial4% ( * ) 63% Wor k force 49%Workf orce10%(*) - Cement (46%), Chrysotile Ore (43%) and other (11%) (**) Fuel, explosives, packaging, among other Concrete TilesEnergy 4%Ot hers cost s Raw m at erial20% (* * * )48%Work forceDepreciat ion 17% 11% (***) - Cement (56%), sand (32%) and other (12%)25 25 26. EBITDA (in R$ million) -19.6 % 47.5 %85.5 72.0 57.9 -13.1 %24.4 % 36.3 39.331.51H101H111H12 2Q10 2Q11 2Q12 2626 27. Net Income (in R$ million)- 20.4 %50.5 % 56.947.5 37.8- 13.7 %28.7 %27.0 24.321.0 1H101H11 1H122Q102Q112Q12 2727 28. Margins 45%46% 44%44%38%38% 21% 20%20% 19%15%16% 14% 14%14% 13%10%10%1H101H11 1H12 2Q10 2Q11 2Q12Gross MarginEBITDA Margin Net Margin 2828 29. Capital Expenditures 30. Capital Expenditures (in R$ million)594 34192117162 11510 4 21 2 1012 13 3 11 66 1H10 1H111H122Q10 2Q11 2Q12 InvestimentsCapacity Increase Eternit Capacity Increase TgulaEquipment and Trucks - SAMA Molds and New BusinessAcquisition TgulaLand acquisition Cear State 3030 31. Development unit of Synthetic Marble Synthetic MarbleResin Silo Production LineProducts31 31 32. ation of Multiproduct Plant - Cear StateCimenteiraLinha Gs Natural35 km15 kmLand of 400 000 m 3232 33. Unit in the Cear State - Bathroom Chinaware PlantJoint-Venture: Companhia Sulamericana de Cermica S. A. Share of 60% Share of 40% Knowledge of the local marketKnowledge of manufacturing and products technologyStrong distribution network Low cost production Efficient logistics Expertise in new productBrand strengthdevelopmentInvestment Resources Expertise in new marketKnowledge in Brazil developmentInvestments: R$ 97 millionCapacity: 1,500,000 pieces per yearStatus of the building: initiated End building: December 2013Forecast of Gross Revenue at full capacity: approximately R$ 127 millionStraight Workforce: 330 employees 3333 34. Capital Markets 35. Ownership Structure Jul/12Shareholding Structure27.5%Gerao L. Par. F. I. A.15.27% Luiz Barsi Filho13.47%59.8% Victor Adler + VIC DTVM 8.50% 10.50% Management1.59% Treasurystock 0.03% Member2.2%Board of Directors SinceSrgio Alexandre Melleiro (*) 1993Lrio Albino Parisotto (*)2004 Individual Investors lio A. Martins 2007 CorporationsLuiz Barsi Filho 2008 Marcelo Munhoz Auricchio 2011 Investors Abroad Luis Terepins (*)2011 Clubs. Funds and FoundationsBenedito Carlos Dias da Silva (*)2012 (*) Independent member MemberAdvisory BoardFREE-FLOAT76.10% SinceGuilherme Affonso Ferreira2011 Mrio Fleck2011 Victor Adler 2012 3535 36. Liquidity Average Traded Volume Number of shareholders (R$ thousand)1,482 6,6156,633 6,6275,9101,108975 794 2009 20102011 2012( * )2009 201020112012( * ) (*) Until July 2012 3636 37. emuneration - Net Income X Distributed EarningsIn R$ millionPay Out76 % 79 %74%63% 10297 817372 55 57 362009 20102011 2012*Net Income Dividends and Interest on own capital(*) Until June 201237 37 38. Policy of Remuneration - Dividend Yield15.1% 10.9%9.1% 9.3% 8.8% 7.5% 7.5%6.9%6.9%6.7% 1.7% 2.3% 2009 20102011 2012(*) Unitl June 2012 Eternit Yield(*)Savings (**)CDB (**)Source: Eternit e BACEN 3838 39. nits Shares Performance (Dec/06 Jul/12)Between 12/28/2006 to 7/31/2012, Eternits shares appreciated 79.0% and IBOVESPAappreciated 26.1%.In the same period, including the payment of dividends and interest on own capital, Eternitsshares appreciated 211.5% .220ETER3IBOVESPAR$ 10.8520018016014012010056,097 80 60 40 Ju 9 Ju 0 Ju 7 O 7 Ju 8 O 9 O 0 Ju 1 O 1 Ju 2 Fe 6 Fe 7 O 8 Fe 8 Fe 0 Fe 1 A 7 A 07 A 8 A 08 A 9 A 09 Fe 9 A 0 A 10 A 1 A 11 A 2 12 D 7 D 8 D 9 D 0 D 1-0-0-0-0-0-0-1-1-1-1-1-0-0-0-0-1 1-1 0 0 0 1 1 -0 -0 -0 -1 -1b-n-b-n-b-n-b-n-b-n-b-n- prug prug prug prug prug precececececec ct ct ct ct ct D39 39 40. Outlook 41. avorable Moment for Civil Construction 4141 42. Economic Figures Minimum Wage (R$)Workforce (R$ million)CAGR: 11.0% 622CAGR: 5.96% 545 404.751510377.361 465 338.501 365.331 415 321.163 380303.028350300Source: BACEN e IBGE 2005 2006200720082009 2010 2011 2012Credit Availability Unemployment Rate - Brazil Government, Industry, Housing, Rural, Commerce, Credit 12,0%11,6%Individuals (R$ billlion) 10,6%10,1% 9,9%1.9841.835 1.889 1.9348,7%1.645 1.706 1.735 1.7778,5%1.585 7,4%1.4106,4%5,7%936 4242 43. Economic Figures GDP vs. EternitSource: BACEN.(E) Estimated - The growth in Eternits gross consolidated revenue was deflated by the IGP-M.43 43 44. Reduction in the interest rates for the finance of constructionmaterialsTo stimulate the sales of construction materials, Caixa Econmica Federal (FederalSavings Bank - CEF) announced in July 2012: reduction in the interest rates for the line of finance for the acquisition of constructionmaterials 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 onfinancing this will be dependent on each clients monthly repayment capacity.Construcard can be used to: the purchase of construction materials ingeneral, acquisition of fitted furniture and solar heating systems.Currently there are more than 65 thousand sales outlets inBrazil with commercial agreements enabling to operate this line.Source: Caixa Econmica Federal www.caixa.gov.br44 45. Chrysotile The Brazilian Mineral 46. Chrysotile The Brazilian OreThe use of Chrysotile ore in Brazil is regulatedby the Federal Law 9,055/95, by Decree2,350/97 and by regulatory standards foroccupational health and safety. It is alsoprovided in the Convention 162 of theInternational Labor Organization (OIT). White Ore Bends and silky fibers without tipHigh Concentration of Magnesium:3MgOSiO2H2OBiopersistence*: 2.5 days*Biopersistence: Time that a inhaled particle remains inthe lungs before being eliminated by the bodys defensemechanisms. To cause lung damage, the fiber must havepenetration and durability capacities in the alveoli. Serpentinite rock with Chrysotile Ore fibers46 46 47. Brazil concludes important research about chrysotile ore risksProject Asbesto AmbientalAmbiental Exposition to Asbesto: Evaluation of Risk and Effects in HealthProcess CNPq n. 420001/2006-9The results of the research were announced on November 25 2010 anddemonstrates that:Among the householders surveyed, no clinical, respiratory functionaland high resolution tomographic alterations were found that could beattributed to atmospheric asbestos fiber inhalation.In the occupational assessment, no new alterations were identified orprogression in pleural and interstitial deterioration of individuals in thesample Group exposed after 1980 and who underwent High ResolutionComputed Tomography scans in the two studies.The full version of this research can be found in www.sectec.go.gov.br.47 47 48. 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 Aurlio 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)48 48 49. Recognitions - 2012 IR Magazine Brazil Awards 2012: For the second consecutive year, IR Magazine awarded Eternits 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 Gois were elected The Best Companies to work for in the Center-West. SAMA came 3rd in the ranking and Precon Gois, 6th. 49 50. Eternit An option for investment ETNTYGovernance ADR - Level IGrowth Vision ofBrand withFutureBrand Dividends Case of Success 5050 51. Informationlio A. MartinsPaula Dell Agnolo Barhumelio.martins@eternit.com.brpaula.barhum@eternit.com.brRodrigo Lopes da Luz Frederico Gomes Amaralrodrigo.luz@eternit.com.br frederico.amaral@eternit.com.brPhone:(55-11) 3038-3818www.eternit.com.br/ir(55-11) 3194-3881www.blogdaeternit.com.br(55-11) 3194-3872 @Eternit_RI Dr. Fernandes Coelho Street, 85 8th floorEste material foi produzido compapeis certificados FSC (ForestStewardship Council), que umagarantia de que a matria-primaadvm de uma floresta manejada de Pinheiros So Paulo / SPformaecologicamente correta,socialmenteeeconomicamentevivel. 05423-040 5151 52. Eternit starts a new cycle Welcometo the next70 years52 52