Conference call 1 q11

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Conference Call - Results Presentation | 1Q11

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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”

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Eternit operated at full capacity in the chrysotile mining business while its fiber cement and concrete tiles production lines worked at over 80%;

Chrysotile mineral and fiber cement sales volume remained stable compared to the 1Q10;

The concrete tiles segment reported year-on-year growth of 22.8%;

Eternit’s net consolidated revenue amounted to R$ 186.3 million, a 9.1% improvement over 1Q10;

Increase of 22.3% in the consolidated cost of products sold, in relation to 1Q10. This is the result of an increase in production costs, which contributed to declining margins;

Eternit has embarked on a concerted drive to control overheads in order to restore margins.

Highlights – 1Q11

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Corporate Profile

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The largest and most diversified industry in the roofcovering segment in Brazil

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Supply Chain

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Other Segments

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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.

Plants Location – Fiber cement

Commercial Branches

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Plants Location – Concrete tiles

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SAMA - Overview

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Domestic Market Foreign Market

2009

155

136

291

143

163

2010

306

- 2.3%

70

1Q10

37

33

1Q11

5.3%

Sales of Chrysotile Mineral (thous. tons)

43

26

69

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Eternit - Overview

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Products and solutions for civil construction

Water tanks and filters

Roof coverings

Bathroom chinaware fixtures

Components for constructions systems

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2009 1Q10

731

1Q11

208 203

-2.4%

2010

827

13.2%

Sales of Fiber Cement* (thous. tons)

* Includes components for constructions systems

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Tégula - Overview

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Main Products – Roof coverings

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Full Roofing Solution

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Concrete Tiles

Sales (thousand m²) Capacity Utilization

*Tégula was acquired on February 11 2010. The amount of 587 thousand m2 refers to Eternit.

1Q10*

60%

1Q10*

23%

1,308

1Q11

83%

1Q11

477

1,064

587

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Operating and Financial Aspects

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ComponentsConstruction

Systems2.8%

Consolidated Net Revenue (R$ million)

Domestic Market Foreign Market

453

130

2009 1Q10

583

1Q11

144

27

171

167

19

186

9.1%648

111

2010

75930.2% Breakdown – 1Q11

Chrysotile Mineral26.6%

Others (*)3.6%

Fiber cement56.5%

Concrete tiles andAccessories

10.5%

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

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1 - Cement (42%), Chrysotile Mineral (46%) and others (12%)

3 - Cement (51%), sand (33%) and others (16%)

Rawmaterial¹

64%

Workforce10%

Depreciation4%

Others Costs19%

Energy3%

Raw material 3

29%

Depreciation4%

Energy9%

Others Costs11%

Workforce47%

Raw material 351%

Energy4%

Others Costs21%

Workforce17%

Depreciation7%

COGS Breakdown – 1Q11

Fiber Cement Chrysotile Mineral

2 – Fuel, explosives, packaging, among others

Concrete Tiles

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-26.0%36

26

123

144

17.1%

2009 1Q10 1Q112010

EBITDA (in R$ million)

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-27.5%

39.7%

2009 1Q10 1Q112010

73

2317

102

Net Income (in R$ million)

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Margins

Net MarginEBITDA MarginGross Margin

21%

42%

13%

2009

21%

45%

14%

1Q10

14%

38%

9%

1Q11

19%

43%

13%

2010

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Tégula

2%

R$ 406 thousand

9%

R$ 1,720 thousand

32%

R$ 6,202 thousand

R$ 19,526 thousand

1,308 thousand

1Q11

7%

R$ 618 thousand

11%

R$ 969 thousand

32%

R$ 2,844 thousand

R$ 8,793 thousand

587 thousand

1Q10*

-34%Net Income

78%EBITDA

-Gross Margin

% Cgh.

122%Net Operating Revenue

Operating andFinancial Aspects

Net Margin

EBITDA Margin

Gross Profit

Sales - Tiles (in m2) 122%

118%

-2 p.p.

-5 p.p.

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

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8

34

42

8

29

93

2127

89

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2009 2010 1Q10 1Q11

14

9

22

4

220,7%

Investments (in R$ million)

Investments Tégula Acquisition

Capacity Increase - TégulaNew Business

Capacity Increase – Eternit

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New Production Lines of Finished Products

Colombo - PR January/2009

Goiânia - GO April/2008

Simões Filho - BA October/2010

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Construction of the New Synthetic Marble Production

External Area Production Line Resin Silo

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35 km15 km

Natural Gas Line

Cement

Land Acquisition for “Multi-Products” Plant

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Capital Markets

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Eternit’s Shares Performance (Dec/06 - Apr/11)

Between 12/30/2006 a 04/29/2011, Eternit”s shares appreciated 59.5% and IBOVESPA appreciated 48.7%.

In the same period, including the payment of dividends and interest on own capital, Eternit’sshares appreciated 179.0%.

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60

80

100

120

140

160

180

200

dec-06 apr-07 aug-07 dec-07 abr-08 aug-08 dec-08 apr-09 aug-09 dec-09 apr-10 aug-10 dec-10 apr-11

ETER3IBOVESPA

66,132

R$ 10.79

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Individual InvestorsCorporationsInvestors AbroadClubs. Funds and Foundations

58.3% 37.1%

7.9%2.6%

Ownership Structure – Apr/11

FREE-FLOAT 79.43%

Shareholding Structure Apr/11 Apr/08

Geração L. Par. F. I. A. 19.17% 8.32%

Luiz Barsi Filho 13.06% 5.01%

Victor Adler 6.70% 5.63%

Diretoria 1.81% 1.15%

Demais Conselheiros 0.07% 0.02%

Ações em Tesouraria 0.03% 0.28%

2008Luiz Barsi Filho (*)2011Marcelo Munhoz Auricchio (*)

Board of Directors MemberSince

Sérgio Alexandre Melleiro (*) 1993Lírio Albino Parisotto (*) 2004

Victor Adler (*) 2005Élio A. Martins 2007

Luis Terepins (*) 2011(*) Independent member

Consultive Council MemberSince

Guilherme Affonso Ferreira 2011Mário Fleck 2011

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(*) Until April 2011

2009

6,615

2010

5,910

2011(*)

6,366

2009

1,108

2010

975

2011(*)

860

Ownership Structure

Númber of Shareholders Average Traded Volume (R$ thousand)

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2009

73

Net Income X Shareholders Remuneration (R$ million)

2010

55

72

102

2011*

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2009

15.1%

2010

9.3%

2011*

3.9%

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Dividend Yield

Shareholder Remuneration

Net Income Dividends and Interest on own capital

(*) Until May 2011

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Outlook

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Economic Figures

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

300380 415

465510 545

2005 2006 2007 2008 2009 2010 2011Source: BACEN

CAGR: 10.5%

350

303,028 321,163 338,501365,331 377,361

404,751

2005 2006 2007 2008 2009 UDM 2010*

CAGR: 5.96%

Source: IBGE * 2010 UDM from dec/09 to nov/10

Food Basic Basket SP x Minimum Wage (purchasing power)

151.0 180.0 200.0 240.0 260.0 300.0350.0 380.0 415.0

465.0510.0 545.0

119.5 128.6

239.5 228.2 265.2

158.7 164.8 172.2 183.4 182.1 214.6

79.2%71.4%

79.4%

68.7% 66.2%61.1%

52.0%56.5% 57.7%

49.1% 52.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Minimum Wage (R$) Food Basic Basket in SP (R$) %Source: IBGE and DIEESE

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

Individuals (R$ billlion)1,703.81,677.61,613.8

1,528.91,451.91,410.3

1,227.3

936.0

dec/07 dec/08 dec/09 mar/10 jun/10 sep/10 nov/10 dec/10

8.6% 8.4%7.4%

6.8% 6.8%

5.3%

dec/05 dec/06 dec/07 dec/08 dec/09 dec/10

Growth of the Brazilian SavingsSource: BACEN Source: IBGE

233.0 238.0 240.0 245.0254.0 257.0 258.0 260.0 262.0 265.0 270.0

277.0 280,015.0%16.0% 16.0%

17.0% 18.0%19.0% 19.0% 20.0% 20.0% 20.0% 20.0% 20.0%

19.0%

aug/09 sep/09 oct/09 nov/09 dec/09 jan/10 feb/10 mar/10 apr/10 may/10 jun/10 jul/10 aug/10

R$ billlion (%) Chg YoYSource: BACEN

Economic Figures

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Housing Deficit – million of units

6.6 6.35.8

7.8 7.97.3

7.9

2004 2005 2006 2007 2008

New Methodology Old Methodology

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GDP and Gross Revenue Comparison (%)

(E) - Estimate - Source: BACEN. Gross revenue growth has been consolidated as of January to March 2011 vs. the same period of 2010The Company does not inform guidance of future revenue.

5.0 5.4

13.2

8.2 5.1

34.9

-6.3

-0.2

5.3

11.6 7.5

33.3

2007 2008 2009 2010

GDP Construction GDP Brazil Eternit - Gross Revenues

2011(E)

5.24.0

10.3

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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

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For more information access: www.eternit.com.br

Launches - 2011

Bairro Nova Odebrecht – Angra dos Reis/ RJ

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Chrysotile – The Brazilian Asbestos

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Chrysotile – The Brazilian Asbestos

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 Mineral 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

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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.

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Corporate and Environmental Management

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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 ............... More than 44,000 until April 2011

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

Open Doors Program

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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

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Social Actions

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Information

Élio A. [email protected]

Rodrigo Lopes da Luz

[email protected]

Phone: (55-11) 3813-6034 or (55-11) 3038-3818

IR ConsultantSilvia Helena Madi Pinheiro

[email protected]

Tel: (55-11) 3500-5564

Bárbara M. Tanure Gonçalves

[email protected]

or www.blogdaeternit.com.brwww.eternit.com.br/ir

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.