APIMEC-MG Meeting | Earning Results 2Q15

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.”

Eternit Group

Activity

Manufacture of fiber cement and construction solutions and

commercialization of metallic fittings

Chrysotile Mining

Manufacture of concrete tiles

Commercialization of

bathroom chinaware

Industrial Units

4 1 1 6 1

Market Share – 2014

Leader in fiber cement The world's 3rd largest

Leader in concrete tiles

5th largest of Brazil in

bathroom chinaware

Annual Capacity

1 million tons 280 thousand

tons

105.000 thousand

pieces

Ramp-up period

The largest and most diversified roof coverings industry in Brazil

3

Strategic Location

Mining company Sales Office Eternit Headquarters and Showroom Concrete Tile Plant Fiber Cement Plant

Bathroom Chinaware Plant Unit for the research, development and production of construction material inputs (under construction)

The industrial units of the Eternit Group are located in all regions of

Brazil.

4

Mining

Serpentinite rock with chrysotile mineral fibers

Chrysotile Mineral (Before beneficiation)

5

Portfolio

Portfolio

Water Tanks and Construction Solutions

Roof Covering

Metallic Tiles

Concrete Tiles

Fiber Cement Panels

Construction Solutions

Polyethylene Water Tanks

6

Portfolio

Roof Covering Accessories

7

Portfolio

Bathroom

Toilet Seats

Bathroom Chinaware Kitchen metal fixtures

Bathroom metal fixtures

Kitchens

8

Operational Performance

10

1H15 x 1H14

• Domestic Market – down by 7.9%

• Foreign Market – decline of 3.4%

2Q15 x 2Q14

• Domestic Market – drop of 4.5%

• Foreign Market – decrease of 6.3%

Sales of Chrysotile Mineral (thousand tons)

Domestic Market Foreign Market

-5.3% -11.0%

-6.0% 4.3%

Covering market - Brazil - 2014

Residential Market Industrial and Commercial Market

Total Market Market Evolution (MM m²)

Metallic 16%

Ceramics 33%

Fiber cement 46%

Other 3%

Fiber cement 34% Metallic

54%

Other 6%

Ceramics 6%

Concrete 2%

Source: Estimative of the Fiber Cement Production Chain

Ceramics 45%

Fiber cement 51%

Concrete 2%

Other 2%

11

12

Sales of Fiber-Cement (thousand tons)

-1.8% -2.2%

-0.4% 2.0%

13

Sales of Concrete Tiles (thousand pieces)

-27.0%

-19.0%

-27.7% -7.7%

Economic and Financial Information

15

Domestic Market Foreign Market

Consolidated Net Revenue (R$ million)

7.2% -8.6%

5.3% 2.6%

2Q15 x 2Q14

• Domestic Market – advance of 1.0%

• Foreign Market – growth of 36.8%

1H15 x 1H14

• Domestic Market – up to 0.5%

• Foreign Market – increase of 28.6%

16

COGS Breakdown

Fiber-cement Chrysotile Mineral

Concrete Tiles

(*) Cement (44%), Chrysotile Mineral (42%) and the others (14%) (**) Fuel, explosives, packaging, among the others

(***) Cement (55%), sand (29%) and the others (16%)

17

15.5% -22.7%

15.7% -8.9%

Adjusted EBITDA (R$ million) and Adjusted EBITDA Margin (%)

18

Net Income (R$ million) and Net Margin (%)

-7.4% -33.2%

-11.2% -14.4%

19

Origin of debt Repayment Schedule

Debt 06/30/13 06/30/14 06/30/15 Short- term gross debt 55.6 55.8 109.3 Long-term gross debt 34.4 48.2 46.1 Cash and cash equivalents (6.6) (5.0) (13.3) Short-term investments (same cash equivalents) (49.5) (44.4) (21.2) Net debt 33.9 54.6 120.9 EBITDA (last 12 months) 185.3 169.3 168.5 Net debt / EBITDA x 0.18 0.32 0.72 EBITDA (last 12 months) 187.5 176.4 191.7 Net debt / EBITDA x 0.18 0.31 0.63 Net debt / Equity 6.9% 10.7% 23.4%

Debt (R$ million)

* Debt related to ACE and ACC, which corresponds to 62% of foreign currency debt, is naturally hedged by accounts receivable in foreign currency resulting from chrysotile exports.

*

20

Capital Expenditures (R$ million)

Capital Markets

Corporate Governance Structure

22

General Shareholders’ Meeting

Audit, Financial Control and Treasury Committee

Disclosure, Socio-Environmental Responsibility and Legal Committee

Strategic Planning Committee

Human Resources Committee

Board of Auditors

Board of Directors

CEO*

Internal Controls Internal Auditing

Mining Directorship

Industrial Directorship

Human Resources

Directorship

Commercial Directorship**

Administrative – Financial

Directorship

Investor Relations

Directorship* * Gathers function ** Gathers function

New Bussiness Directorship**

23

FREE-FLOAT 84.5%

Individual Investors Corporations Investors Abroad Clubs, Funds and Foundations

*Independent directors in accordance with BM&FBOVESPA Novo Mercado Regulations

Highlights

Geração L. Par. F. I. A. 13.80%

Luiz Barsi Filho 13.75%

Victor Adler 7.04%

Directors 1.22%

Stocks in Treasury 0.03%

Board of Directors Member since

Luis Terepins* - President 2011 Lírio Albino Parisotto* 2004 Marcelo Munhoz Auricchio* 2011 Leonardo Deeke Boguszewski* 2014 Marcelo Gasparino da Silva* 2014 Luiz Barsi Filho* 2015 Raphael Manhães Martins* 2015

Board of Auditors Member since

André Eduardo Dantas 2013 Paulo Henrique Z. Funchal 2013 Benedito Carlos Dias da Silva 2015 Luciano Luiz Barsi 2015 Robert Juenemann 2015

Shareholding Structure – Aug/15

Liquidity

24

Number of Shareholders Average Trade Volume

(R$ Thousand)

(*) Until August, 2015

2013 2014 2015*

882

489 480

25

Pay Out

Dividends and Interest on own capital Net Income

Policy of Remuneration Net Income x Distributed Earnings (R$ million)

Eternit’s Shares Performance

26

Between 08/29/2014 to 08/31/2015, Eternit’s shares depreciated 50.5% and BOVESPA Index deppreciated 23.9%.

In the same period, including the payment of dividends and interest on own capital, Eternit’s shares depreciated 44.8%.

*At the Extraordinary General Meeting held on September 24, 2014, the proposed split of the common shares was approved, so that each (1) share was going to be represented by two (2) shares.

R$ 2.08

46,625

Outlook

28

Economic Indicators

Source: BACEN

Minimum Wage x Basic Basket SP (purchasing power)

Credit availability Unemployment rate - Brazil

*preliminary data

Government, Industry, Housing, Rural, Retail, Credit for Individuals (R$ billion)

*

48.3% 46.0% 49.0%

Geographic RegionUp to

Three

Three to

Five

Five to

Ten

More than

Ten

Regional

Housing

Deficit

North 438 67 54 17 576

Northeast 1,361 208 168 54 1,791

Southeast 1,791 273 221 71 2,356

South 460 70 57 18 605

Midwest 353 54 44 14 465

Total Approximate

Housing Deficit4,403 672 544 174 5,793

29

Housing Deficit by Family Income by Minimum Wages

According to a study by the Getúlio Vargas Foundation (FGV), the reduction in housing deficit was driven by the support provided to families through the My Home, My Life program, and estimates that in 2024, with the growth of the population, the country will have approximately 16.4 million new families, of which 10 million will have family income of up to three minimum wages. The FGV study also highlights that zeroing the housing deficit will require investments of approximately R$ 760 billion in low-income housing over the course of ten years.

Source: Study done by the João Pinheiro Foundation, in 2012, official statistics body for the state of Minas Gerais (preliminary results),

and PNAD 2012 (National Survey by Household Sampling).

In thousand of Units

Brazil GDP vs. Construction GDP vs. ABRAMAT Index vs. Consolidated Gross Revenue of Eternit¹ (%)

Source: *CENTRAL BANK OF BRAZIL – projected growth of Brazilian and construction GDP. ** ABRAMAT – projection of domestic construction material sales in 2015, not adjusted for inflation. 1 ETERNIT – Growth in Eternit's consolidated gross revenue compares January-June 2015 with the same period in 2014, deflated by the IGP-M index.

30

Chrysotile – The Brazilian Mineral

32

Serpentinite rock with chrysotile mineral fibers

White Mineral

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.

Chrysotile – The Brazilian Mineral

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).

For further information, please visit: http://www.eternit.com.br/ir

Corporate and Environmental Management

Corporate Management

Since.................. November, 2004

Objective .................

Contribute to a better understanding of society about the extraction and processing of chrysotile asbestos and the manufacture of fiber cement products in a controlled and responsible manner.

Coverage.......... Five plants of the Eternit Group and the mine SAMA

Visitors............... More than 69 thousand until August, 2015

Public ................... General society

Open Doors Program

34

Management with Environmental Focus

Quelônios Project - Animal Preservation Area

Single Amazonian turtles breeding in Brazil and Reintegration of Wild Animal Nature in partnership with IBAMA

Zero Waste Air Quality Monitoring Water reuse Reflorestation

Seedling Nursery

35

Management with Social Focus

Inserted in the communities of their fields, Eternit supports the socio-economic and cultural development of the regions by supporting social initiatives. They are sponsored fully by Eternit and its subsidiaries the Open Doors Program and Sambaíba project. Check out some of the social projects supported by Eternit and its subsidiaries in the communities in which they operate:

36

37

Phone: (55-11) 3194-3881

(55-11) 3194-3872

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

www.blogdaeternit.com.br

www.eternit.com.br/ir

Nelson Pazikas

nelson.pazikas@eternit.com.br

Paula D. A. Barhum Macedo

paula.barhum@eternit.com.br

Rodrigo Lopes da Luz

rodrigo.luz@eternit.com.br

@Eternit_RI

Dr. Fernandes Coelho Street, 85 – 8th floor

Pinheiros – São Paulo / SP

05423-040

Thiago Scheider

thiago.scheider@eternit.com.br

Further Information