Presentation 2 q10

Results Presentation | 2Q10

Conference Call – 11/08/10

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”

Corporate Profile

4

Supply Chain

5

Other Segments

61) 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.

Commercial Branches

Plants Location – Fiber cement

7

Plants Location – Concrete tiles

8

Timeline

Eternit’s most important accomplishments since its foundation in 1940

SAMA - Overview

10

Global Market – Chrysotile Asbestos

* SAMA MINERAÇÃO (Minaçu/GO): Third largest in the world and first with ISO 14.001

14%Brazil*

Zimbabwe

Canada

Kazakhstan

China

Russia

Major World Producers – 2009

45%

22%

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

11

Competitive Advantages

12

Sales of Chrysotile Asbestos (thous. tons)

Domestic Market Foreign Market

291.0

42.2 38.3 33.4 41.5 33.2 34.1

31.930.9 36.6

36.237.2 40.4

74.169.2 70.0 77.7 70.4 74.5

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

+ 7.6%- 11.1%+ 30.9%2Q10 / 2Q09

+ 1.1%- 16.5%+ 23.6%1H10 / 1H09

TotalForeign MarketDomestic MarketChanges

Eternit - Overview

14

Products and solutions for civil construction

Water tanks and filters

Roof coverings

Components for constructions systems

Bathroom chinaware fixtures

15

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%

16

ETERNIT

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

Installed Capacity: 850,000 tons/year

Capacity utilization - around 86%

Consumption: 731,000 tons/year

Market-share: 30%

Plants: 5

Selling Points: 12,000

Structure of the Industrial Park in 2009

Brazilian Fiber Cement Market

Brazilian Fiber Cement Market

17

Products and Solutions for Civil Construction

Competitive Advantages

18

+ 13,0%2Q10/2Q09+ 18.7%1H10/1H09

TotalChanges

* Includes components for constructions systems

Sales of Fiber Cement* (thous. tons)

730.6

167,2 160.8

207.2195.4

207.8

181.7

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

19

Tégula - Overview

20

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 400

• Installed Capacity: 7.2 million square meters

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

• Value of acquisition: R$ 39.2 million

• Acquired in 02/11/2010

21

Main Products – Roof coverings

22

Full Roofing Solution

Operating and Financial Aspects

24

Domestic Market Foreign Market

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

Consolidated Net Revenue* Net Revenue Breakdown

(*) in R$ million

Consolidated Net Revenue – 2Q10

33%

101.7 100.4121.8 127.9

143.5 150.6

43.1 33.5 25.1 28.5 27.2 27.0

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

144.8 133.9

146.9156.4

170.7177.6

30.5%

54.1%

10.7%

2.3%

Fiber cement roof coverings

Components for constructions

systems

Concrete tiles and Accessories

Chrysotile Asbestos

Others (**)2.4%

25

Fiber Cement Chrysotile Asbestos

Concrete Tiles

COGS Breakdown – 2Q10

1 - Cement (46%), Chrysotile Asbestos (44%) and others (10%) 2 – Fuel, explosives, packaging, among others

3 - Cement (54%), sand (33%) and others (13%)

Raw material¹65%

Others19%

Energy3%

10%Workforce

Others20%

Energy5%

Raw Material³51%

Workforce16%

Depreciation8%

Materials²32%

Others13%

Energy7%

Workforce44%

Depreciation4%

Depreciation3%

26

EBITDA and Net Income (in R$ million)

EBITDA Net Income

21.3%

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

35.729.9 27.8 30.1

35.7 21.617.3 17.0 17.2

23.2 24.3

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

40.4%

36.3

27

Margins

Gross Margin EBITDA Margin

Net Margin

25%22%

19% 19%21% 20%

15%

13%12% 11%

14%14%

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

45%43%

40%41%

45% 46%

28

Tégula – 2Q10

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

02/11 a 06/30*

R$ 2,354 thousand

R$ 3,993 thousand

R$ 9,371 thousand

R$ 27,797 thousand

1,887,439

2Q10

R$ 19,004 thousandNet Operating Revenue

Operating and Financial Aspects

Net Income

EBITDA

Gross Income

Sales - Tiles (in m2) 1,299,973

R$ 6,527 thousand

R$ 3,024 thousand

R$ 1,736 thousand

29

CAPEX

CAPEX (R$ million) CAPEX Breakdown (2Q10)*

* Does not include Tégula acquisition

1H09 1H10

1521

34

4

Capacity Increase - ETERNITTégula AcquisitionInvestments

Technology3%

Maintainance27%

OccupationalSafety and Health

2%

Quality andDevelopment

7%

Capacity/ Productivity

57%

Administrative4%

59

30

New production lines of finished products

At Goiânia / GO – Launched in April 2008.

At Colombo / PR – Launched in January 2009.

Capital Markets

32

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

Between 12/28/2006 and 07/30/2010, Eternit”s shares appreciated 26.7% and IBOVESPA appreciated 51.8%.

In the same period, including the payment of dividends and interest on own capital, Eternit’s shares appreciated 107.0%.

R$ 8.57

67,515

50

80

110

140

170

200

dez-06 jun-07 dez-07 jun-08 dez-08 jun-09 dez-09 jul-10

ETER3

IBOVESPA

33

Liquidity

Shareholders

(*) Until July 2010

2006 2007 2008 2009

2,482

7,3177,726

6,615

2010(*)

6,063

1,302

20052004

1,638

34

Liquidity

Average Traded Volume (R$ thousand)

(*) Until July 2010

2006 2007 2008 2009

1,297

2,900

1,108

3,708

2010(*)

1,019716

604

2004 2005

35

Ownership Structure – Jul/10

Individual Investors (5,787 shareholders)

Corporations (86 shareholders)Investors Abroad (51 shareholders)Clubs. Funds and Foundations (139 shareholders)

58%4%

33%

5%

6.18%-Fundo de Participação Social – FPS

5.93%-Bahema Participações S. A.

Jul/10

69.95%

0.28%

0.81%

5.24%

4.72%

6.89%

Jul/07

59.91%Free-Float

0.03%Treasury stock

1.42%Management

Shareholding Structure

12.53%Luiz Barsi Filho

6.70%Victor Adler

19.41%Geração L. Par. Fund. Invest. em Ações

36

Shareholder Remuneration (2004 - Aug/10)

Net Income Dividends and Interest on own capital

Net Income X Shareholders Remuneration (R$ million)

2007 2008 2009

4440

65

81 73

2010

55 5447

2004 2005 2006

20

38443433 30

37

Dividend Yield

Shareholder Remuneration (2004 - Aug/10)

2007 2008 2009

8.6%

12.8%

15.1%

2010

6.9%

2004 2005 2006

13.2%

17.1%16.2%

Outlook

39

Structured Expansion and Diversification Program

INITIATIVES

- Launches of new products

- Debut into chinaware bathroom fixtures

- Increase in SAMA’s production capacity

- Investment in machinery for new products on its plants

- Investment in new product lines of fiber cement

- Inorganic growth – Acquisitions

- Inclusion of metallic roofing on its portfolio

- Creation of the Development and New Businesses Area

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

OBJECTIVE

40

Installed CapacitySales

Sales of fiber cement (thousand tons)

Structured Expansion and Diversification Program

431.3

522.5578.3 620.3

2004 2005 2006 2007 2008 2009

CAGR (2004/2009) = 11%

725.3 731.2

650.0 650.0 650.0 650.0730.0

850.0

41

Structured Expansion and Diversification Program

2004 2005 2006 2007 2008 2009

CAGR (2004/2009) = 3%

Sales of Chrysotile Asbestos (Thousand tons)

270.0 270.0 270.0 270.0248.8 231.3 221.6

272.6295.0

300.0303.8 290.1

Installed CapacitySales

42

Launches

Chinaware bathroom fixtures

Components for construction systems and

filters for water pipes

Colored fiber cement roofing tiles

Corporate and Environmental Management

44

Corporate Management

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

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

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

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

Visitors ................. More than 39,000 as of July 2010

Target .................... All society

Open Doors Program

45

Raw material sector

Chrysotile Asbestos sector

46

Latin America's largest with more than 17 thousand filter sleeves

Filtration System Air

47

Environment Focused Management

Quelônios Project - Animal Conservation AreaThe 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

48

About 80% of the 4,500 hectares of the Cana Brava Mountains are maintained as Forest Reserve by SAMA.

Environment Focused Management

Monitored area

49

Terra Mirim Project

Eternit has partnered with the NGO Terra Mirim to promote the training of young people of Simões Filhoand region to act as guides that will be inserted in a project of an ecological track to be implemented soon in the environmental reserve of this unit.The size of the area is 810 thousand square meters

Aerial view of the Environmental Reserve of Simões Filho (BA) Plant

Social Actions - External Public

50

Social Actions - External Public

Brincar pra Valer Project! – It aims to show the children of a sub-prefecture of São Paulo, that their dreams can come true through thematic workshops and recycling.

Lar Escola São Francisco - Eternit contributes to LESF in order to rehabilitate children and adults with special needs in order to their physical recover, their educational and social integration

Publication and distribution of books in Braille and audio books - In partnership with the DorinaNowill Foundation, Eternit distributed in the vicinity of their units, more than 6 million copies in order to facilitate access to the blind.

51

GRAAC - Eternit is a partner sponsor of GRAACC and helps to guarantee children and adolescents with cancer, in the most advanced scientific standard, the right to access all the chances of cure with quality of life.

Social Actions - External Public

Sambaíba Project – SAMA develops this project to a give young people a career through craft workshops with the reuse of waste rock extracted from the mine.

Sociedade dos Queimados - Eternit contributes to society of burning in order to promote the social reintegration of victims of fire burns, especially those from low-income segment, providing a better quality of life.

52

Minaçu - GO Goiânia - GO

Rio de Janeiro - RJ Simões Filho - BA Colombo - PR

Anápolis - GO

Recreational Clubs - Workforce

53

Events

54

Shareholders' Meeting via WEB

55

Shareholders' Meeting via WEB

Another step in good corporate governance practices;

The system allows electronic proxy voting by digital certificate;

More than half of Eternit’ shareholders reside outside the state of Sao Paulo;

CVM (Securities and Exchange Commission of Brazil) and IBGC (Brazilian Corporate Governance Institute) recommend that companies encourage the participation of shareholders at meetings;

The first 1,000 registered shareholders will have free digital certificates for the first year;

Partners:

56

BLOG

57

BLOG

Communication channel for all who wants to know about Eternit;

It aims to enable interaction between the company and its public in a transparent manner;

Another communication channel with stakeholders;

The blog is divided into four sections:

Chrysotile Asbestos

Civil Construction

Capital Markets

Environmental Responsibility

58

American Depositary Receipt - ADR

On February 24 2010, the Board of Directors approved to initiate the accession process to the American Depositary Receipts Program - Level 1 ADRs.

Sponsor: Eternit;

Depositary Bank: The Bank of New York;

Custodian Bank: Banco Bradesco;

Ratio between Eternit’ shares and ADR: One ADR for one common share.

Ticker: ETNTY

59

IR Global Rankings elected for the second consecutive year the Program on Corporate Governance of Eternit as the best in Latin America. on April 9, 2010.

IR Magazine elected Eternit among the five bestcompanies in Investor Relations for Individual Investors.

The 17th Ranking of Industry Concept and Imageelected Eternit the 1st in fiber cement segmentand 2nd in polyethylene water tanks.

Awards – 2Q10

Chrysotile – The Brazilian Asbestos

61

Chrysotile – The Brazilian Asbestos

White Asbestos

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 Asbestos 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 asbestos fibers

62

Information

Gilberto Cominatogilberto.cominato@eternit.com.br

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

www.eternit.com.br/ir

Rodrigo Lopes da Luz

rodrigo.luz@eternit.com.br

Investor Relations

Phone: (55-11) 3813-6034

Bárbara M. Tanure Gonçalves

barbara.goncalves@eternit.com.br

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.