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Conference call 1Q16

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Eternit S.A.

The document summarizes the key financial and operational results of a company for the first quarter of 2016 compared to the same period in 2015. Sales volumes declined for chrysotile mineral by 25.2% and fiber-cement by 8%. Consolidated revenue decreased 9.4% to R$228.9 million. Adjusted EBITDA fell 23.2% to R$38.1 million and net profit totaled R$8.3 million, a decline of 59%. The company also saw reductions in domestic and foreign markets.

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Conference Call ¨C Earning Results 1Q16 ¨C 05/13/2016
¡°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.¡± 2 Disclaimer
? Economic figures registered variations of: ? ABRAMAT: -17.3% ? Eternit1: -12.0% ? Variation on sales volume in the segments below: ? Chrysotile mineral: -25.2% ? Fiber-cement: -8.0% ? Concrete tiles: 0.2% ? Consolidated Net Revenue reached R$228.9 million, decline of 9.4% ? Adjusted EBTIDA decreased 23.2%, reaching R$38.1 million ? Net profit totaled R$8.3 million ? Reduction of 12.8% in the consolidated net debt in comparison to 4Q15 3 1 Growth of the consolidated gross revenue in 1Q16vs1Q15 corrected for inflation in accordance with the IGP-M index. Highlights of 1Q16 (when compared to 1Q15)
Operational Performance
5 1Q16 x 1Q15 ? Domestic Market ¨C reduction of 12.3% ? Foreign Market ¨C retraction of 39.9% Domestic Market Foreign Market Sales of Chrysotile Mineral (thousand tons) -25.2% -6.5%
6 Sales of Fiber-Cement (thousand tons) -8.0% 0.9%
7 Sales of Concrete Tiles (million pieces) 0.2% -28.3%
Economic and Financial Information
9 Domestic Market Foreign Market 1Q16 x 1Q15 ? Domestic Market ¨C reduction of 6.3% ? Foreign Market ¨C down by 21.7% Consolidated Net Revenue (R$ million) -9.4% 3.7%
10 Fiber-cement Chrysotile Mineral (***) Cement (53%), sand (31%) and the others (16%) COGS Breakdown ¨C 1Q16 (*) Cement (40%), Chrysotile Mineral (40%) and the others (20%) (**) Fuel, explosives, packaging, among the others Concrete Tiles
Adjusted EBITDA* (R$ million) and Adjusted EBITDA Margin (%) 11 *Adjusted EBITDA is an indicator used by the Company's Management to analyze the operational and economic performance of its consolidated business, excluding equity pickup due to the fact that CSC is a joint venture and its information is not consolidated. -23.2% 15.8%
12 *Adjusted EBITDA is an indicator used by the Company's Management to analyze the operational and economic performance of its consolidated business, excluding equity pickup due to the fact that CSC is a joint venture and its information is not consolidated. Reconciliation of Adjusted EBITDA* X Net Income (R$ million) In R$ million
13 Net Income (R$ million) and Net Margin (%) -59.0% -14.2%
14 * In 1Q16 the debt in foreign currency was 100% naturally hedged by accounts receivable from chrysotile exports. Debt 03/31/15 12/31/15 03/31/16 Short-term gross debt 102.1 90.3 75.9 Long-term gross debt 41.4 76.9 72.1 Cash and cash equivalents (10.9) (5.6) (15.7) Short-term investments (same cash equivalents) (32.1) (16.7) (5.8) Net debt 100.5 144.9 126.5 EBITDA (last 12 months) 166.2 131.5 120.4 Net debt / EBITDA x 0.60 1.10 1.05 EBITDA (last 12 months) 185.9 159.2 147.7 Net debt / EBITDA x 0.54 0.91 0.86 Net debt / Equity 19.4% 29.0% 24.9% Debt (R$ million) Origin of debt Repayment Schedule
15 Capital Expenditures (R$ million)
Capital Markets
17 Highlights Luiz Barsi Filho 13.75% Gera??o L. Par. F. I. A. 13.45% Victor Adler 7.84% Diretoria 1.01% A??es em Tesouraria 0.03% Individual Investors Corporations Investors Abroad Clubs, Funds and Foundations FREE-FLOAT 84.8% Board of Directors Member since Luis Terepins* - Presidente 2011 Marcelo Munhoz Auricchio* 2011 Marcelo Gasparino da Silva* 2014 Luiz Barsi Filho* 2015 Raphael Manh?es Martins* 2015 Manoel Arlindo Zaroni Torres* 2016 Marcelo Amaral Moraes* 2016 *Independent directors in accordance with BM&FBOVESPA Novo Mercado Regulations Board of Auditors Member since Andr¨¦ Eduardo Dantas 2013 Luciano Luiz Barsi 2015 Pedro Paulo de Souza 2015 Advisory Board Member since Leonardo Deeke Boguszewski 2016 Luiz Barsi Filho 2016 Victor Adler 2016 Shareholding Structure ¨C Apr/16
18 Pay Out *The amount of distributed earnings includes distribution based on retained earnings from previous years Dividends and Interest on own capitalNet income 43_ 2014 2015 2016 85 29 8 72 25 0 18 84% 145% 0% * Policy of Remuneration (R$ million)
19 Phone: +55 (11) 3194-3881 +55 (11) 3194-3872 Este material foi produzido com pap¨¦is certificados FSC (Forest Stewardship Council), que ¨¦ uma garantia de que a mat¨¦ria-prima adv¨¦m de uma floresta manejada de forma ecologicamente correta, socialmente e economicamente vi¨¢vel. 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 ¨C 8th floor Pinheiros ¨C S?o Paulo / SP CEP: 05423-040 Thiago Scheider thiago.scheider@eternit.com.br Further Information

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Conference call 1Q16

  • 1. Conference Call ¨C Earning Results 1Q16 ¨C 05/13/2016
  • 2. ¡°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.¡± 2 Disclaimer
  • 3. ? Economic figures registered variations of: ? ABRAMAT: -17.3% ? Eternit1: -12.0% ? Variation on sales volume in the segments below: ? Chrysotile mineral: -25.2% ? Fiber-cement: -8.0% ? Concrete tiles: 0.2% ? Consolidated Net Revenue reached R$228.9 million, decline of 9.4% ? Adjusted EBTIDA decreased 23.2%, reaching R$38.1 million ? Net profit totaled R$8.3 million ? Reduction of 12.8% in the consolidated net debt in comparison to 4Q15 3 1 Growth of the consolidated gross revenue in 1Q16vs1Q15 corrected for inflation in accordance with the IGP-M index. Highlights of 1Q16 (when compared to 1Q15)
  • 5. 5 1Q16 x 1Q15 ? Domestic Market ¨C reduction of 12.3% ? Foreign Market ¨C retraction of 39.9% Domestic Market Foreign Market Sales of Chrysotile Mineral (thousand tons) -25.2% -6.5%
  • 6. 6 Sales of Fiber-Cement (thousand tons) -8.0% 0.9%
  • 7. 7 Sales of Concrete Tiles (million pieces) 0.2% -28.3%
  • 9. 9 Domestic Market Foreign Market 1Q16 x 1Q15 ? Domestic Market ¨C reduction of 6.3% ? Foreign Market ¨C down by 21.7% Consolidated Net Revenue (R$ million) -9.4% 3.7%
  • 10. 10 Fiber-cement Chrysotile Mineral (***) Cement (53%), sand (31%) and the others (16%) COGS Breakdown ¨C 1Q16 (*) Cement (40%), Chrysotile Mineral (40%) and the others (20%) (**) Fuel, explosives, packaging, among the others Concrete Tiles
  • 11. Adjusted EBITDA* (R$ million) and Adjusted EBITDA Margin (%) 11 *Adjusted EBITDA is an indicator used by the Company's Management to analyze the operational and economic performance of its consolidated business, excluding equity pickup due to the fact that CSC is a joint venture and its information is not consolidated. -23.2% 15.8%
  • 12. 12 *Adjusted EBITDA is an indicator used by the Company's Management to analyze the operational and economic performance of its consolidated business, excluding equity pickup due to the fact that CSC is a joint venture and its information is not consolidated. Reconciliation of Adjusted EBITDA* X Net Income (R$ million) In R$ million
  • 13. 13 Net Income (R$ million) and Net Margin (%) -59.0% -14.2%
  • 14. 14 * In 1Q16 the debt in foreign currency was 100% naturally hedged by accounts receivable from chrysotile exports. Debt 03/31/15 12/31/15 03/31/16 Short-term gross debt 102.1 90.3 75.9 Long-term gross debt 41.4 76.9 72.1 Cash and cash equivalents (10.9) (5.6) (15.7) Short-term investments (same cash equivalents) (32.1) (16.7) (5.8) Net debt 100.5 144.9 126.5 EBITDA (last 12 months) 166.2 131.5 120.4 Net debt / EBITDA x 0.60 1.10 1.05 EBITDA (last 12 months) 185.9 159.2 147.7 Net debt / EBITDA x 0.54 0.91 0.86 Net debt / Equity 19.4% 29.0% 24.9% Debt (R$ million) Origin of debt Repayment Schedule
  • 17. 17 Highlights Luiz Barsi Filho 13.75% Gera??o L. Par. F. I. A. 13.45% Victor Adler 7.84% Diretoria 1.01% A??es em Tesouraria 0.03% Individual Investors Corporations Investors Abroad Clubs, Funds and Foundations FREE-FLOAT 84.8% Board of Directors Member since Luis Terepins* - Presidente 2011 Marcelo Munhoz Auricchio* 2011 Marcelo Gasparino da Silva* 2014 Luiz Barsi Filho* 2015 Raphael Manh?es Martins* 2015 Manoel Arlindo Zaroni Torres* 2016 Marcelo Amaral Moraes* 2016 *Independent directors in accordance with BM&FBOVESPA Novo Mercado Regulations Board of Auditors Member since Andr¨¦ Eduardo Dantas 2013 Luciano Luiz Barsi 2015 Pedro Paulo de Souza 2015 Advisory Board Member since Leonardo Deeke Boguszewski 2016 Luiz Barsi Filho 2016 Victor Adler 2016 Shareholding Structure ¨C Apr/16
  • 18. 18 Pay Out *The amount of distributed earnings includes distribution based on retained earnings from previous years Dividends and Interest on own capitalNet income 43_ 2014 2015 2016 85 29 8 72 25 0 18 84% 145% 0% * Policy of Remuneration (R$ million)
  • 19. 19 Phone: +55 (11) 3194-3881 +55 (11) 3194-3872 Este material foi produzido com pap¨¦is certificados FSC (Forest Stewardship Council), que ¨¦ uma garantia de que a mat¨¦ria-prima adv¨¦m de uma floresta manejada de forma ecologicamente correta, socialmente e economicamente vi¨¢vel. 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 ¨C 8th floor Pinheiros ¨C S?o Paulo / SP CEP: 05423-040 Thiago Scheider thiago.scheider@eternit.com.br Further Information