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Corporate Presentation | 2Q12

“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

Disclaimer

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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.”

• 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%

Highlights of 2Q12 (when compared to 2Q11)

33

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.)

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

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

44

components for construction systems 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%

Plants Location – Fiber cement and Crhysotile Mining

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

Commercial Branches

Showroom Location

66

Come visit usRebouças Avenue, 2175 – São Paulo / SP

Plants Location – Concrete tiles

77

Diversified Portfolio – Chrysotile Mineral

Main use of the crhysotile mineral

99% of the world production of chrysotile is

used for fiber cement products:

• Tiles;

88

• Tiles;

• Covering plates;

• Wall panels;

• Water pipes and water tanks; and

• Etc.

Diversified Portfolio – Fiber Cement Tiles

99

Diversified Portfolio – Metallic Fittings

1010

Diversified Portfolio - Components for constructions systems

1111

Diversified Portfolio – Water tanks and filters

1212

Diversified Portfolio – Bathroom chinaware and lavatory seats

1313

Diversified Portfolio – Metal Fittings

1414

Diversified Portfolio – Synthetic Marble

1515

Diversified Portfolio – Concrete Tiles

1616

Diversified Portfolio – Full Roofing Solutions

1717

SAMA - Overview

Global Market – Chrysotile Mineral - 2011

Canada 4%

Russia – 50%

Kazakhstan – 11%

China – 20%

1919

Global Consumption (MM of Ton)

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

Sales of Chrysotile Mineral (thous. tons)

- 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%

2020

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

Domestic Market Foreign Market

- 6.6%6,6 %

Eternit and Tégula - Overview

Residential Market Industrial and Commercial Market

Fiber cement38%

Metallic40%

Other11%

Ceramics

Concrete4%

Ceramics

Fiber cement

51%

Covering market – Brazil - 2011

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Total Market Market Evolution (MM m2)

Metallic12%

Ceramics35%

Fiber cement47%

Other

2%

40% Ceramics11%45%

51%

Concrete

4%

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%

Structure of the Industrial Park in 2011

BrazilianFiber Cement

MarketETERNIT

Installed Capacity (tons / year) Approximately 2,820,000 1,000,000

Capacity utilization Around 86% Around 85%

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Consumption (ton / year) 2,434,000 859,300

Companies 11 32% Market Share

Plants 19 5

Selling Points 39,000 15,000

Structure of the Industrial Park in 2011

Brazilian concreteroofing market TÉGULA

Installed Capacity (m² / year) Approximately 24.0 million 8.0 million


2424

Consumption (m² / year) 16.9 million 5.9 million

Companies130

35% Market Share

Plants 6

Sales of Fiber Cement* (thous. tons)

- 11.3 %6.0 %

2525

* Includes components for construction systems

- 15.0 %15.7 %

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

389.5 412.9366.3

181.7 210.2 178.7

Concrete Tiles (thous. square meters)

18.5 % -1.9 %

2626

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

14.8 % -7.8 %

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

477

1,887

2,3642,801 2,773

1,3001,493 1,376

Economic and Financial Performance

Consolidated Net Revenue (R$ million)

11.2 % 8.8 %

2828

Domestic Market Foreign Market

13.2 % 5.0 %

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

Net Revenue Breakdown

2007 1H12

Fiber cementConcrete tiles and Accessories

2929

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

Chrysotile Mineral32.3%

Fiber cement50.0%

and Accessories10.3%

Bathroom Chinaware4.8%

Others (*)2.6%

New Business17.7%

COGS Breakdown – 2Q12

Fiber Cement Chrysotile Mineral

Raw material (*) 63%

Workforce10%

Depreciation4%

Others costs20%

Energy3%

Materials (**) 28%

Workforce49%

Depreciation5%

Others costs10%

Energy8%

3030

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

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

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

Concrete Tiles

10%

Raw material (***)48%

Workforce17%Depreciation

11%

Others costs20%

Energy4%

EBITDA (in R$ million)

-19.6 % 47.5 %

3131

-13.1 % 24.4 %

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

72.0

57.9

85.5

36.3 31.539.3

Net Income (in R$ million)

- 20.4 % 50.5 %

- 13.7 % 28.7 %

47.5

37.8

56.9

3232

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

37.8

24.321.0

27.0

Margins

45%

38%

44%46%

38%

44%

3333

Net MarginEBITDA MarginGross Margin

21%

15%

20% 20%

16%19%

14%

10%

14% 14%

10%13%

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

Capital Expenditures

4

59

Capital Expenditures (in R$ million)

3535

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

2112 11 13

6 6

4

34

352

210

10

19 21 17

11 16

Investiments

Acquisition Tégula

Capacity Increase – Eternit

Molds and New Business

Equipment and Trucks - SAMA

Land acquisition – Ceará State

Capacity Increase – Tégula

Development unit of Synthetic Marble

3636

Production LineResin SiloSynthetic Marble

Products

Location of Multiproduct Plant - Ceará State

35 km

Linha Gás Natural

Cimenteira

3737

Land of 400 000 m²

15 km

Share of 40%Knowledge of manufacturing and

products technologyLow cost production

Share of 60%Knowledge of the local marketStrong distribution network

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

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

3838

Low cost productionExpertise in new product

developmentExpertise in new market

development

Strong distribution networkEfficient logisticsBrand strength

Investment ResourcesKnowledge in Brazil

Investments: R$ 97 millionCapacity: 1,500,000 pieces per yearStatus of the building: initiatedEnd building: December 2012

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

Artistic view and lay out of the Bathroom Chinaware Plant

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Capital Markets

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%

Board of Directors MemberSince

59.8%

2.2%

10.50%

27.5%

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Clubs. Funds and Foundations

FREE-FLOAT 76.10%

Individual Investors

CorporationsInvestors Abroad

Advisory Board MemberSince

Guilherme Affonso Ferreira 2011Mário Fleck 2011Victor Adler 2012

Board of Directors SinceSérgio 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

2.2%

Liquidity

Number of shareholders Average Traded Volume (R$ thousand)

6,6155,910

6,633 6,6271,108

975

1,482

4242

(*) Until July 20122009 2010 2011 2012(*) 2009 2010 2011 2012(*)

794

73

102 97

81 72

Policy of Remuneration - Net Income X Distributed Earnings

In R$ million

76 % 79 % 74%Pay Out 95%

4343

2009 2010 2011 2012

73

57*55

72

54**

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

Policy of Remuneration - Dividend Yield

15.1%

9.3%9.1%8.8%

10.9%

4444

(*) Unitl June 2012

Source: Eternit e BACENSavings (**)Eternit – Yield(*) CDB (**)

2009 2010 2011 2012

7.5%6.7%6.9% 6.9%

7.5%

1.7%

9.1%8.8%

2.3%

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%.

R$ 10.85

200

220ETER3

IBOVESPA

4545

56,097

R$ 10.85

40

60

80

100

120

140

160

180

Dec

-06

Feb-0

7A

pr-07

Jun-0

7A

ug-07

Oct

-07

Dec

-07

Feb-0

8A

pr-08

Jun-0

8A

ug-08

Oct

-08

Dec

-08

Feb-0

9A

pr-09

Jun-0

9A

ug-09

Oct

-09

Dec

-09

Feb-1

0A

pr-10

Jun-1

0A

ug-10

Oct

-10

Dec

-10

Feb-1

1A

pr-11

Jun-1

1A

ug-11

Oct

-11

Dec

-11

Feb-1

2A

pr-12

Outlook

Favorable Moment for Civil Construction

4747

Economic Figures

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

Source: BACEN

CAGR: 11.0% CAGR: 5.96%

4848

Food Basic Basket SP x Minimum Wage (purchasing power)

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

Source: IBGE and DIEESE

Source: BACEN

Source: BACEN

Source: IBGE

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

Individuals (R$ billlion)

Economic Figures

4949

Source: BACEN

Source: IBGE

Growth of the Brazilian Savings

R$ billlion (%) Chg YoY

Source: BACEN -SBPE

Residences - Perception of Demand

Residences – Perception of Demand

NeedNeedSome kind ofSome kind of

renovation or renovation or expansionexpansion

77%77%

51

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 Brazilby na average of 1.9 million/year;

77%77%

Permanent Homes in Brazil44.5 million homesPermanent Homes – 57.8

million

Housing Deficit – 5.5 million

Housing Deficit by Family Income by Minimum Wages

In thousand of Units

Geographic RegionUp to Three

Three toFive

Five toTen

More thanTen

RegionalHousingDeficit

North 492 43 17 3 555

Northeast 1,861 55 23 8 1,947

Southeast 1,791 178 65 12 2,406

52

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

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

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

Indicators

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

37.1

16.8 18.3 15.7

53

• 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.

(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

16.8 18.3 15.7

7.9

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

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 constructionmaterials – Construcard;

• extension of repayment conditions from 60 to 96 months; and

54

• 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

Expansion and Maintenance of Residential Units

(in thousands of units)

Residences – Management Model

New Residential Edifices

(in thousands of units)

55

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

Consumer Profile

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

Self-management/Self-

construction34%

Construtora/

Bricklayer/Works Foreman/Engineer

65%

56

With home building – who decides the purchase?

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

Construtora/Empreiteira

1%

Self-management/Self-

construction27%

Builder/Contractor

2%

Bricklayer/Works Foreman/Engineer 71%

Consumer Profile

Responsible for the Indication and Recomendation of Brand

57

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

Chrysotile – The Brazilian Mineral

Chrysotile – The Brazilian Ore

The 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

5959

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 inthe lungs before being eliminated by the body’s defensemechanisms. To cause lung damage, the fiber must havepenetration and durability capacities in the alveoli.

High Concentration of Magnesium:3MgOSiO2H2O

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 anddemonstrates that:

Among the householders surveyed, no clinical, respiratory functional and

6060

Among the householders surveyed, no clinical, respiratory functional andhigh 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.

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 theissue of asbestos in the light of its importance to Brazil.Representatives of government bodies, medical doctors and

6161

Representatives of government bodies, medical doctors andscientists of various nationalities, technicians and sector employeeswill take part in the hearing.

Subsequently, the Minister-rapporteur, Marco Aurélio de Mello, willhave the necessary time to decide his vote, after which the DirectActions of Unconstitutionality - ADIs (4066 and 3937) can bysubmitted for judgment on merit by a plenary session of the courtbefore the end of the year.

Greater details can be found by acessing www.stf.jus.br (inPortuguese)

Corporate and Environmental Management

Corporate Management

Launch ................... November 2004

Open Doors Program

6363

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

Environment Focused Management

Zero Reject Monitoring Air Quality Water Reuse Reforestation Work

6464

Quelônios Project - Animal Conservation Area

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

Social Actions

65

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).

Recognitions - 2012

66

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.

Eternit – An option for investment

ADR - Level I

ETNTY

Governance

6767

Growthwith

Dividends

Vision ofFuture

Case ofSuccess

BrandBrand

Information

Élio A. [email protected]

Paula Dell Agnolo [email protected]

Frederico Gomes [email protected]

Rodrigo Lopes da [email protected]

6868

Este material foi produzido compapeis certificados FSC (ForestStewardship Council), que é umagarantia de que a matéria-primaadvém de uma floresta manejada deforma ecologicamente correta,socialmente e economicamenteviável.

www.blogdaeternit.com.br

www.eternit.com.br/ir 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

Eternit starts a new cycle

Welcome to the next

6969

to the next 70 years

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