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Results Presentation | 3Q10Conference Call – 11/10/2010

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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”

Corporate Profile

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Supply Chain

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Other Segments

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Plants Location – Fiber cement

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.

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Plants Location – Concrete tiles

SAMA - Overview

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Global Market – Chrysotile Ore

* SAMA MINERAÇÃO (Minaçu/GO): Third largest in the world and first with ISO 14,001

Major World Producers – 2009

Russia

China

Brazil* 14%

Kazakhstan

Canada

Zimbabwe

22%

45%

10%

8%

1%

Global Consumption (MM of Ton)

2004

2005

2006

2007

2008

2009 2.1

2.4

2.4

2.3

2.1

2.3

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Sales of Chrysotile Ore (thous. tons)

213.3 226.2

33,242.2 38.3 33.4 41.5 33.2 34.1 38.5

31.9 30.9 36.636.2

37.2 40.442.8

74.1 69.2 70.077.7

70.4 74.581.3

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Domestic Market Foreign Market

Changes Domestic Market Foreign Market Total

3Q10 / 3Q09 + 16.9% + 15.4% + 16.1%

9M10 / 9M09 + 21.2% - 7.1% + 6.0%

Eternit - Overview

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Covering market – Brazil (2009)

425459

2005 2006 2007

8%5%

2008

505

10%

2009

495

-2%

406

Residential Market Industrial and Commercial Market

Total Market Market Evolution (MM m2)

Ceramics35%

Metallic9%

Fiber cement49%

Others4%

Concrete3%

Fiber cement39%

Metallic35%

Ceramics14%

Others12%

Others2% Ceramics

43%Fiber cement

52%

Concrete3%

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GDP and Gross Revenue Comparison

Structure of the Industrial Park in 2009

Installed capacity: Approx. 2,820,000 tons / year

Capacity utilization - around 86%

Consumption: Approx. 2,434,000 tons / year

Companies: 11

Plants: 19

Selling points: 35,000

Brazilian Fiber Cement Market

Installed Capacity: 850,000 tons/year

Capacity utilization - around 86%

Consumption: 731,000 tons/year

Market-share: 30%

Plants: 5

Selling Points: 12,000

ETERNIT

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Sales of Fiber Cement* (thous. tons)

535.2 594.8

167.2 160.8

207.2195.4

207.8

181.7

205.3

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Changes Total3Q10 / 3Q09 - 0.9%

9M10 / 9M09 + 11.1%

* Includes components for constructions systems

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Tégula - Overview

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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 500

• Installed Capacity: 7.2 million square meters

• Capacity Utilization in 3Q10: around 80% (60% in 1Q10 and 70% in 2Q10)

• Value of acquisition: R$ 39.2 million

• Acquired in 02/11/2010

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Main Products – Roof coverings

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Full Roofing Solution

Operating and Financial Aspects

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Consolidated Net Revenue – 3Q10

Consolidated Net Revenue* Net Revenue Breakdown

35.5%

101.7 100.4121.8 127.9

143.5 150,6

43.1 33.5 25.1 28.5 27.2 27.0

144.8 133.9

146.9156.4

170.7177.6

30.3

199.0

150.6

168.7 Others (**)3.2% Components for

constructions systems3.0%

10.5%

52.9%

Chrysotile Ore30.3%

Fiber cement

Concrete tiles and Accessories

3Q101Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Domestic Market Foreign Market

(**) Others: metallic roofing tiles, polyethylene water tanks, bathroom chinaware fixtures and water pipe filters

(*) in R$ million

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COGS Breakdown – 3Q10

Fiber Cement Chrysotile Ore

Concrete Tiles1 - Cement (45%), Chrysotile Ore (43%) and others (12%) 2 – Fuel, explosives, packaging, among others

3 - Cement (51%), sand (32%) and others (17%)

Raw material¹66%

Others Costs18%

Energy3%

Depreciation3%

10%Workforce

Raw material²32%

Others Costs11%

Energy7%

Workforce46%

Depreciation4%

Others Costs19%

Energy4%

Raw material³52%

Workforce18%

Depreciation7%

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EBITDA (in R$ million)

EBITDA

35.729.9 27.8 30.1

35.7 36.3 37.6

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

35.1%

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Net Income (in R$ million)

Net Income

21.6

17.3 17.0 17.2

23.225.524.3

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

50.2%

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Margins

45%43%

40% 41%

45% 46% 45%

25%22%

19% 19%21% 20% 19%

15%13% 12% 11%

14% 14%13%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Gross Margin

EBITDA Margin

Net Margin

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Tégula – 3Q10

Operating and Financial Aspects 3Q10 02/11 a 09/30*

3,341,605

R$ 48,730 thousand

R$ 16,905 thousand

Gross Margin 36% 35%

EBITDA R$ 2,748 thousand R$ 6,741 thousand

Net Income R$ 3,671 thousand R$ 6,025 thousand

14%

12%

Net Operating Revenue R$ 20,933 thousand

Sales - Tiles (in m2) 1,454,166

Gross Profit

EBITDA Margin

R$ 7,534 thousand

13%

Net Margin 18%

* As from February 11 2010, Tégula’s results were consolidated with those of Eternit as a whole

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CAPEX

CAPEX (R$ million) CAPEX Breakdown (3Q10)*

80

OccupationalSafety and Health

1% Technology3%

Maintainance23%

Quality and

6%

Capacity/ Productivity

62%

Administrative5%

Development

16

34

14

22 16

16

34

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9M09 9M10

Capacity Increase - ETERNITTégula AcquisitionInvestments * Does not include Tégula acquisition

Molds and New Business

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New production lines of finished products

Goiânia / GO April 2008

Colombo / PR January 2009

Simões Filho / BA October 2010

Capital Markets

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Eternit’s Shares Performance (Dec/06 - Oct/10)

Between 12/28/2006 and 10/29/2010, Eternit”s shares appreciated 51.5% and IBOVESPA appreciated 58.9%.

In the same period, including the payment of dividends and interest on own capital, Eternit’s shares appreciated 152.9%.

70,673

R$ 10.25

50

80

110

140

170

200

dec-06 jun-07 dec-07 jun-08 dec-08 jun-09 dec-09 jun-10 oct-10

ETER3

IBOVESPA

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Liquidity

Shareholders

2,482

7,3177,726

6,6155,717

1,3021,638

2004 2005 2006 2007 2008 2009 2010(*)

(*) Until October 2010

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Ownership Structure – Oct/10

2%

38%

7%

53%

Individual Investors (5,424 shareholders)

Corporations (78 shareholders)Investors Abroad (64 shareholders)Clubs. Funds and Foundations (151 shareholders)

Shareholding Structure Oct/10 Oct/07

6.89%

5.47%

5.46%

Bahema Participações S. A. - 6.04%

0.97%

0.28%

74.89%

Management 1.50%

Treasury stock 0.03%

Free-Float 59.37%

Geração L. Par. Fund. Invest. em Ações 19.66%

Luiz Barsi Filho 12.74%

Victor Adler 6.70%

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Liquidity

Average Traded Volume (R$ thousand)

3,708

2006 2007 2008 2009

1,297

2,900

1,108

2010(*)

962716604

2004 2005

(*) Until October 2010

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Shareholder Remuneration (2004 - Nov/10)

Net Income X Shareholders Remuneration (R$ million)

2007 2008 2009

4440

65

81 73

2010

55

7273

2004 2005 2006

20

38443433 30

Net Income Dividends and Interest on own capital

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Shareholder Remuneration (2004 - Nov/10)

Dividend Yield

2007 2008 2009

8.6%

12.8%

15.1%

2010

9.3%

2004 2005 2006

13.2%

17.1%16.2%

Outlook

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Structured Expansion and Diversification Program

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

OBJECTIVE

Consolidate Eternit as a supplier of products and solutions to the civil construction industry

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Structured Expansion and Diversification Program

Sales of fiber cement (thousand tons)

431.3

522.5578.3 620.3

CAGR (2004/2009) = 11%

725.3 731.2

650.0 650.0 650.0 650.0730.0

850.0

2004 2005

Installed CapacitySales

2006 2007 2008 2009

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Structured Expansion and Diversification Program

Sales of Chrysotile Ore (Thousand tons)

CAGR (2004/2009) = 3%

270.0 270.0 270.0 270.0248.8 231.3 221.6

272.6295.0

300.0303.8 290.1

2004 2005 2006 2007 2008 2009

Installed CapacitySales

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Launches

Chinaware bathroom fixtures

Components for construction systems and

filters for water pipes

Colored fiber cement roofing tiles

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Chrysotile – The Brazilian Ore

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Chrysotile – The Brazilian Ore

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.

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

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Awards

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Awards – 3Q10

ETERNIT – Anamaco award Dispersion 1st place, Anamacoaward 2nd place in terms of large clients and Anamacoaward Dispersion Mension Honor in polyethylene water tankscategory

ETERNIT – Mension Honor for Excellence in Investor Relations

ETERNIT – Trophy Goddess of Fortune - Merit AwardShopkeeper

ETERNIT – Second time ABRASCA Award for best Annual Report in Category 2 - Net income under $ 1 billion

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Awards – 3Q10

SAMA – 44th ranking in “100 Best Companies to Work for in Brazil” –Great Place to Work

SAMA – 2nd Best Mining Company in BrazilBiggest and Best/ Revista EXAME

SAMA – 5th Best Company in Brazil (overall ranking). 1st place in Medium Companies category between 501 and 1500 employeesVocê SA/Exame – 150 Best Companies for you to Work

SAMA – 1st place in Brazilian Environmental Benchmarking (Environmental Protection)

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Information

Gilberto Cominatogilberto.cominato@eternit.com.br

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

Rodrigo Lopes da Luz

rodrigo.luz@eternit.com.br

Investor Relations

Bárbara M. Tanure Gonçalves

barbara.goncalves@eternit.com.br

www.eternit.com.br/irPhone: (55-11) 3813-6034

IR ConsultantMarcelo Fonseca

marcelo.fonseca@firb.com

Phone: (55-11) 3897-6857

This material was produced using FSC certified paper (Forest Stewardship Council), which is a guarantee that the raw materialcomes from a forest managed in an environmentally responsible, socially and economically viable.