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Conference call 1 q13

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E
Eternit S.A.

- Sales volumes declined for chrysotile mineral and concrete tiles but grew for fiber cement. Net revenue grew slightly by 0.5% despite declines in gross margin. EBITDA and net income both declined. - The company launched a new tile called Tégula Prime and established a 13th production unit in Manaus. A bathroom chinaware plant in Ceará was also announced. - The document discusses the company's product portfolio, operational and financial performance in 1Q13, investments in new businesses and facilities, and provides an economic outlook. It also discusses the use of chrysotile mineral in Brazil.

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Conference Call – Earning Results 1Q13 – 05/07/20131
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.” 2
• Sales volume:  Chrysotile mineral: reduction of 17.4%  Fiber cement: growth of 6.9%  Concrete tiles: retraction of 13.4% • Net Consolidated Revenue amounted to R$ 211.3 million, growth of 0.5% • Gross Margin of 40%, reduction of 5 p.p. • EBTIDA was R$ 38.8 million, a 16.0% reduction and margin of 18% • Net Income reached R$ 21.5 million, a retraction of 28.2% • Investments reached R$ 17.8 million, evolution of 264.2% • Setting up of 13th unit of the Eternit Group in Manaus • Launch of the tile Tégula Prime Highlights of 1Q13 (when compared to 1Q12) 3
Eternit Group Activity Manufacture of fiber cement and commercialization of bathroom chinaware, metallic fittings and components for construction systems Chrysotile Mining Manufacture of concrete tiles and commercialization of sanitary ware Industrial Units 4 1 1 6 Market Share Leader in fiber cement – 30% of Market Share The world's 3rd largest – 15% of Market Share Leader in concrete tiles – 30% of Market Share5th largest of Brazil in sanitary ware Capacity 1 million tons / fiber cement 300 thousand tons 10 million m² Capacity Used Fiber cement - 80% 100% 60% The largest and most diversified roof coverings industry in Brazil – 2012 4
Mining Portfolio Chrysotile Mineral 5 Serpentinite rock with chrysotile mineral fibers
Portfolio for roofs Fiber cement tiles Concrete tiles Metallic tiles 6
Portfolio for roofs – Tégula’s accessories 7
Portfolio for construction systems Polyethylene water tanks Components 8
Portfolio for bathrooms Bathroom chinaware Lavatory seats 9
Portfolio for bathrooms Metal bathroom fittings 10
Portfolio for kitchens Metal fittings for kitchens 11
Launch – Tégula’s Prime Tiles 12
Operational Performance
2010 2011 2012 1Q11 1Q12 1Q13 142.7 134.2 151.6 26.1 34.8 22.8 163.6 162.5 151.9 42.7 38.1 37.4 306.3 296.7 303.5 68.8 72.9 60.2 - 17.4% Sales of Chrysotile Mineral (thous. tons) Domestic Market Foreign Market 6.0% 2.3%- 3.1% 1Q13 x 1Q12 • Domestic Market – reduction of 1.7% • Foreign Market – reduction of 34.6% 14 2012 x 2011 • Domestic Market – reduction of 6.5% • Foreign Market – increase of 13.0%%
Sales of Fiber Cement* (thous. tons) * Includes components for construction systems - 8.5%3.9% 6.9%- 7.4% 15 2010 2011 2012 1Q11 1Q12 1Q13 826.9 859.3 786.0 202.6 187.6 200.5
2010* 2011 2012 1Q11 1Q12 1Q13 477 4,776 5,253 5,961 5,617 1,308 1,397 1,209 Sales of Concrete Tiles (thous. square meters) *Tégula was acquired on February 11 2010. The amount of 477 thousand m2 doesn’t refer to Eternit. 13.5% 6.8% - 13.4% - 5.8% 16
Economic and Financial Performance 17
Consolidated Net Revenue (R$ million) 12.8% 0.5% 8.1% 10.5% 18Domestic Market Foreign Market 2010 2011 2012 1Q11 1Q12 1Q13 111.2 100.4 170.9 19.1 34.0 28.2 647.5 719.9 735.4 167.2 176.2 183.1 758.7 820.3 906.3 186.3 210.2 211.3
Net Revenue Breakdown (**) Others: metallic roofing tiles, polyethylene water tanks, lavatory seats and metallic bathroom fittings, water pipe filters, synthetic marble and components for construction systems. 2007 1Q13 (*) Others: metallic roofing tiles, polyethylene water tanks and components for construction systems. 19 Chrysotile Mineral; 35.0% Fiber cement; 59.3% Others (*); 5.7% New Business 5.7% Chrysotile Mineral 28.5% Fiber cement 54.5% Concrete tiles and Accessories 9.0% Bathroom Chinaware 4.4% Others (**) 3.6% New Business 17.0%
Raw material (*) 63%Workforce 11% Depreciation 3% Others costs 21% Energy 2% Raw material (***) 47% Workforce 15% Depreciation 13% Others costs 21% Energy 4% COGS Breakdown – 1Q13 Fiber Cement Chrysotile Mineral Concrete Tiles (*) - Cement (47%), Chrysotile Mineral (41%) and other (12%) (**) – Fuel, explosives, packaging, among other (***) - Cement (58%), sand (30%) and other (12%) 20 Materials (**); 31% Workforce; 40% Depreciation; 8% Others costs; 13% Energy; 8%
EBITDA (in R$ million) 75.0% - 16.0% - 2.9% 31.6% 21 2010 2011 2012 1Q11 1Q12 1Q13 144.4 140.1 184.3 26.4 46.2 38.8
Net Income (in R$ million) -4.7% 16.3% 78.0% - 28.2% 22 2010 2011 2012 1Q11 1Q12 1Q13 102.0 97.2 113.0 16.8 29.9 21.5
Margins 23Net MarginEBITDA MarginGross Margin 43% 39% 44% 38% 45% 40% 19% 17% 20% 14% 22% 18% 13% 12% 12% 9% 14% 10% 2010 2011 2012 1Q11 1Q12 1Q13
Investments 24
2010 2011 2012 1Q11 1Q12 1Q13 2013* 27 24 33 4 5 9 46 11 2 5 32 34 14 6 13 2 2 1 2 5 1 21 14 4 16 93 46 69 8 5 18 94 Capital Expenditures (in R$ million) Equipments and Trucks - SAMAInvestiments Tégula AcquisitionCapacity Increase – Eternit New Businesses Administrative Bathroom Chinaware Plant - CSC * Forecast Land Acquisition - Ceará Synthetic MarbleCapacity Increase – Tégula 25
Share of 40% Knowledge of manufacturing and products technology Low cost production Expertise in new product development Expertise in new market development Share of 60% Knowledge of the local market Strong distribution network Efficient logistics Brand strength Investment Resources Knowledge in Brazil Investments: R$ 97 million Capacity: 1,500,000 pieces per year Status of the building: initiated End building: December 2013 Forecast of Gross Revenue at full capacity: approximately R$ 127 million Straight Workforce: 330 employees Multi-Product Unit in the Ceará State - Bathroom Chinaware Plant Joint-Venture: Companhia Sulamericana de Cerâmica S. A. 26
Planned investment of: approximately R$ 40 million Period for installation: short to medium term Funding: third-party funding on a preferential basis Setting up of the 13rd unit of the Eternit Group in Amazonas At an extraordinary meeting on April 15, 2013, the Board of Directors approved the project to set up a unit for research, development and production of inputs and construction materials, in the city of Manaus, state of Amazonas, in line with the Structured Plan for Expansion and Diversification of the Eternit Group’s business activities. 27
Capital Markets
60% 2% 12% 26% Shareholding Structure – Apr/13 Highlights Geração L. Par. F. I. A. 15.25% Luiz Barsi Filho 13.56% Victor Adler + VIC DTVM 8.50% Diretoria 1.66% Ações em Tesouraria 0.03% Individual Investors Corporations Investors Abroad Clubs. Funds and Foundations FREE-FLOAT 84.4% Board of Directors Member since Sergio Alexandre Melleiro (*) 1993 Lírio Albino Parisotto (*) 2004 Élio A. Martins 2007 Luiz Barsi Filho 2008 Marcelo Munhoz Auricchio 2011 Luis Terepins (*) 2011 Benedito Carlos Dias da Silva (*) 2012 (*) Independent member Board of Auditors Member since Charles René Lebarbenchon 2013 Paulo Henrique Zukanovich 2013 Edson Carvalho de Oliveira Filho 2013 29
2009 2010 2011 2012 2013 73 102 97 113 21 55 81 72 72 18 Policy of Remuneration - Net Income X Distributed Earnings Net Income Dividends and Interest on own capital 76 % 79 % 74%Pay Out 63% In R$ million 83% 30
40 60 80 100 120 140 160 180 200 220 ETER3 IBOVESPA R$ 9.60 Eternit’s Shares Performance (Dec/06 – Apr/13) Between 12/28/2006 to 04/30/2013, Eternit’s shares appreciated 58.4% and IBOVESPA appreciated 25.7%. In the same period, including the payment of dividends and interest on own capital, Eternit’s shares appreciated 180.6%. 55,910 31
Eternit – An option for investment ADR - Level I ETNTY Watch the Eternit’s Institutional movie through this QR Code. 32 Governance Growth with Dividends Vision of Future Case of Success Brand
Outlook
1,410 2,030 2,075 2,169 2,238 2,276 2,311 2,368 2,366 2,384 228 265 277 305 336 49.1% 52.0% 50.9% 49.0% 49.6% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 465 510 545 622 678 228 265 277 305 336 *forecast Food Basic Basket SP x Minimum Wage (purchasing power) Credit Availability Unemployment Rate - Brazil Government, Industry, Housing, Rural, Commerce, Credit Individuals (R$ billlion) Source:BACEN Economic Figures Minimum Wage(R$) Food Basic Basket in SP (R$) % Source:BACEN 34 8.5% 7.4% 6.4% 4.6% 5.4% 5.6%
Economic Figures – GDP vs. Gross Consolidated Revenue of Eternit (*) Source: BACEN, estimated growth of GDP Brazil and GDP construction for the year 2013. The growth in Eternit´s gross consolidated revenue compares the accumulated period from January to March 2013 against the same accumulated period for 2012, inflation adjusted for the IGP-M. 35 2007 2008 2009 2010 2011 2012 2013 5.0 8.2 -6.3 11.6 3.6 1.9 1.8 5.4 5.1 -0.2 7.5 2.7 0.9 3.1 8.6 37.1 16.8 18.3 15.7 5.1 1.1 GDP Construction (%) GDP Brazil (%) Eternit (%)
Chrysotile – The Brazilian Mineral
Chrysotile – The Brazilian Mineral Serpentinite rock with chrysotile mineral fibers 37 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). White Mineral 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
The use of chrysotile asbestos in the world Countries with a prohibition – around 55 Countries that buys from SAMA – more than 20 Countries with a regular use – more than 150 38
Brazil concluded in 2010 important research about chrysotile 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 . 39
Positioning with respect to the legal question of chrysotile mineral 40 The Federal Supreme Court (STF) began on October 31st, 2012 its ruling on the merit of the Direct Actions of Unconstitutionality (ADI) 3357 in the light of state Law 11.643/2001 enacted by the state of Rio Grande do Sul, and ADI 3937 in the context of state Law 12,684 of July 26th, 2007 of the state of São Paulo. Judge Ayres Britto began the judgment ruling in favor of the constitutionality of the state laws while Judge Marco Aurélio’s vote was for the unconstitutionality of the same state laws. Following the conclusion of Judge Marco Aurélio’s ruling, the presiding judge adjourned the work of the court. We would point out that this judgment is fruit of exhaustive debates with Brazilian society through public hearings held by the STF on August 24th and 31st, 2012 led by Judge Marco Aurélio together with the judges Rosa Weber and Ricardo Lewandowski. For this reason, the STF is expected to set a new date for the final ruling on the merit mentioned in the ADIs as a whole.
Information Este material foi produzido com papeis certificados FSC (Forest Stewardship Council), que é uma garantia de que a matéria-prima advém de uma floresta manejada de forma ecologicamente correta, socialmente e economicamente viável. www.blogdaeternit.com.br www.eternit.com.br/ir Élio A. Martins elio.martins@eternit.com.br Paula D. A. Barhum Macedo paula.barhum@eternit.com.br Rodrigo Lopes da Luz rodrigo.luz@eternit.com.br Phone: (55-11) 3038-3818 (55-11) 3194-3881 @Eternit_RI Dr. Fernandes Coelho Street, 85 – 8th floor Pinheiros – São Paulo / SP 05423-040 41
Welcome to the next 70 years! Eternit starts a new cycle 42

More Related Content

Conference call 1 q13

  • 1. Conference Call – Earning Results 1Q13 – 05/07/20131
  • 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.” 2
  • 3. • Sales volume:  Chrysotile mineral: reduction of 17.4%  Fiber cement: growth of 6.9%  Concrete tiles: retraction of 13.4% • Net Consolidated Revenue amounted to R$ 211.3 million, growth of 0.5% • Gross Margin of 40%, reduction of 5 p.p. • EBTIDA was R$ 38.8 million, a 16.0% reduction and margin of 18% • Net Income reached R$ 21.5 million, a retraction of 28.2% • Investments reached R$ 17.8 million, evolution of 264.2% • Setting up of 13th unit of the Eternit Group in Manaus • Launch of the tile Tégula Prime Highlights of 1Q13 (when compared to 1Q12) 3
  • 4. Eternit Group Activity Manufacture of fiber cement and commercialization of bathroom chinaware, metallic fittings and components for construction systems Chrysotile Mining Manufacture of concrete tiles and commercialization of sanitary ware Industrial Units 4 1 1 6 Market Share Leader in fiber cement – 30% of Market Share The world's 3rd largest – 15% of Market Share Leader in concrete tiles – 30% of Market Share5th largest of Brazil in sanitary ware Capacity 1 million tons / fiber cement 300 thousand tons 10 million m² Capacity Used Fiber cement - 80% 100% 60% The largest and most diversified roof coverings industry in Brazil – 2012 4
  • 5. Mining Portfolio Chrysotile Mineral 5 Serpentinite rock with chrysotile mineral fibers
  • 6. Portfolio for roofs Fiber cement tiles Concrete tiles Metallic tiles 6
  • 7. Portfolio for roofs – Tégula’s accessories 7
  • 8. Portfolio for construction systems Polyethylene water tanks Components 8
  • 9. Portfolio for bathrooms Bathroom chinaware Lavatory seats 9
  • 10. Portfolio for bathrooms Metal bathroom fittings 10
  • 11. Portfolio for kitchens Metal fittings for kitchens 11
  • 12. Launch – Tégula’s Prime Tiles 12
  • 14. 2010 2011 2012 1Q11 1Q12 1Q13 142.7 134.2 151.6 26.1 34.8 22.8 163.6 162.5 151.9 42.7 38.1 37.4 306.3 296.7 303.5 68.8 72.9 60.2 - 17.4% Sales of Chrysotile Mineral (thous. tons) Domestic Market Foreign Market 6.0% 2.3%- 3.1% 1Q13 x 1Q12 • Domestic Market – reduction of 1.7% • Foreign Market – reduction of 34.6% 14 2012 x 2011 • Domestic Market – reduction of 6.5% • Foreign Market – increase of 13.0%%
  • 15. Sales of Fiber Cement* (thous. tons) * Includes components for construction systems - 8.5%3.9% 6.9%- 7.4% 15 2010 2011 2012 1Q11 1Q12 1Q13 826.9 859.3 786.0 202.6 187.6 200.5
  • 16. 2010* 2011 2012 1Q11 1Q12 1Q13 477 4,776 5,253 5,961 5,617 1,308 1,397 1,209 Sales of Concrete Tiles (thous. square meters) *Tégula was acquired on February 11 2010. The amount of 477 thousand m2 doesn’t refer to Eternit. 13.5% 6.8% - 13.4% - 5.8% 16
  • 17. Economic and Financial Performance 17
  • 18. Consolidated Net Revenue (R$ million) 12.8% 0.5% 8.1% 10.5% 18Domestic Market Foreign Market 2010 2011 2012 1Q11 1Q12 1Q13 111.2 100.4 170.9 19.1 34.0 28.2 647.5 719.9 735.4 167.2 176.2 183.1 758.7 820.3 906.3 186.3 210.2 211.3
  • 19. Net Revenue Breakdown (**) Others: metallic roofing tiles, polyethylene water tanks, lavatory seats and metallic bathroom fittings, water pipe filters, synthetic marble and components for construction systems. 2007 1Q13 (*) Others: metallic roofing tiles, polyethylene water tanks and components for construction systems. 19 Chrysotile Mineral; 35.0% Fiber cement; 59.3% Others (*); 5.7% New Business 5.7% Chrysotile Mineral 28.5% Fiber cement 54.5% Concrete tiles and Accessories 9.0% Bathroom Chinaware 4.4% Others (**) 3.6% New Business 17.0%
  • 20. Raw material (*) 63%Workforce 11% Depreciation 3% Others costs 21% Energy 2% Raw material (***) 47% Workforce 15% Depreciation 13% Others costs 21% Energy 4% COGS Breakdown – 1Q13 Fiber Cement Chrysotile Mineral Concrete Tiles (*) - Cement (47%), Chrysotile Mineral (41%) and other (12%) (**) – Fuel, explosives, packaging, among other (***) - Cement (58%), sand (30%) and other (12%) 20 Materials (**); 31% Workforce; 40% Depreciation; 8% Others costs; 13% Energy; 8%
  • 21. EBITDA (in R$ million) 75.0% - 16.0% - 2.9% 31.6% 21 2010 2011 2012 1Q11 1Q12 1Q13 144.4 140.1 184.3 26.4 46.2 38.8
  • 22. Net Income (in R$ million) -4.7% 16.3% 78.0% - 28.2% 22 2010 2011 2012 1Q11 1Q12 1Q13 102.0 97.2 113.0 16.8 29.9 21.5
  • 23. Margins 23Net MarginEBITDA MarginGross Margin 43% 39% 44% 38% 45% 40% 19% 17% 20% 14% 22% 18% 13% 12% 12% 9% 14% 10% 2010 2011 2012 1Q11 1Q12 1Q13
  • 25. 2010 2011 2012 1Q11 1Q12 1Q13 2013* 27 24 33 4 5 9 46 11 2 5 32 34 14 6 13 2 2 1 2 5 1 21 14 4 16 93 46 69 8 5 18 94 Capital Expenditures (in R$ million) Equipments and Trucks - SAMAInvestiments Tégula AcquisitionCapacity Increase – Eternit New Businesses Administrative Bathroom Chinaware Plant - CSC * Forecast Land Acquisition - Ceará Synthetic MarbleCapacity Increase – Tégula 25
  • 26. Share of 40% Knowledge of manufacturing and products technology Low cost production Expertise in new product development Expertise in new market development Share of 60% Knowledge of the local market Strong distribution network Efficient logistics Brand strength Investment Resources Knowledge in Brazil Investments: R$ 97 million Capacity: 1,500,000 pieces per year Status of the building: initiated End building: December 2013 Forecast of Gross Revenue at full capacity: approximately R$ 127 million Straight Workforce: 330 employees Multi-Product Unit in the Ceará State - Bathroom Chinaware Plant Joint-Venture: Companhia Sulamericana de Cerâmica S. A. 26
  • 27. Planned investment of: approximately R$ 40 million Period for installation: short to medium term Funding: third-party funding on a preferential basis Setting up of the 13rd unit of the Eternit Group in Amazonas At an extraordinary meeting on April 15, 2013, the Board of Directors approved the project to set up a unit for research, development and production of inputs and construction materials, in the city of Manaus, state of Amazonas, in line with the Structured Plan for Expansion and Diversification of the Eternit Group’s business activities. 27
  • 29. 60% 2% 12% 26% Shareholding Structure – Apr/13 Highlights Geração L. Par. F. I. A. 15.25% Luiz Barsi Filho 13.56% Victor Adler + VIC DTVM 8.50% Diretoria 1.66% Ações em Tesouraria 0.03% Individual Investors Corporations Investors Abroad Clubs. Funds and Foundations FREE-FLOAT 84.4% Board of Directors Member since Sergio Alexandre Melleiro (*) 1993 Lírio Albino Parisotto (*) 2004 Élio A. Martins 2007 Luiz Barsi Filho 2008 Marcelo Munhoz Auricchio 2011 Luis Terepins (*) 2011 Benedito Carlos Dias da Silva (*) 2012 (*) Independent member Board of Auditors Member since Charles René Lebarbenchon 2013 Paulo Henrique Zukanovich 2013 Edson Carvalho de Oliveira Filho 2013 29
  • 30. 2009 2010 2011 2012 2013 73 102 97 113 21 55 81 72 72 18 Policy of Remuneration - Net Income X Distributed Earnings Net Income Dividends and Interest on own capital 76 % 79 % 74%Pay Out 63% In R$ million 83% 30
  • 31. 40 60 80 100 120 140 160 180 200 220 ETER3 IBOVESPA R$ 9.60 Eternit’s Shares Performance (Dec/06 – Apr/13) Between 12/28/2006 to 04/30/2013, Eternit’s shares appreciated 58.4% and IBOVESPA appreciated 25.7%. In the same period, including the payment of dividends and interest on own capital, Eternit’s shares appreciated 180.6%. 55,910 31
  • 32. Eternit – An option for investment ADR - Level I ETNTY Watch the Eternit’s Institutional movie through this QR Code. 32 Governance Growth with Dividends Vision of Future Case of Success Brand
  • 34. 1,410 2,030 2,075 2,169 2,238 2,276 2,311 2,368 2,366 2,384 228 265 277 305 336 49.1% 52.0% 50.9% 49.0% 49.6% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 465 510 545 622 678 228 265 277 305 336 *forecast Food Basic Basket SP x Minimum Wage (purchasing power) Credit Availability Unemployment Rate - Brazil Government, Industry, Housing, Rural, Commerce, Credit Individuals (R$ billlion) Source:BACEN Economic Figures Minimum Wage(R$) Food Basic Basket in SP (R$) % Source:BACEN 34 8.5% 7.4% 6.4% 4.6% 5.4% 5.6%
  • 35. Economic Figures – GDP vs. Gross Consolidated Revenue of Eternit (*) Source: BACEN, estimated growth of GDP Brazil and GDP construction for the year 2013. The growth in Eternit´s gross consolidated revenue compares the accumulated period from January to March 2013 against the same accumulated period for 2012, inflation adjusted for the IGP-M. 35 2007 2008 2009 2010 2011 2012 2013 5.0 8.2 -6.3 11.6 3.6 1.9 1.8 5.4 5.1 -0.2 7.5 2.7 0.9 3.1 8.6 37.1 16.8 18.3 15.7 5.1 1.1 GDP Construction (%) GDP Brazil (%) Eternit (%)
  • 36. Chrysotile – The Brazilian Mineral
  • 37. Chrysotile – The Brazilian Mineral Serpentinite rock with chrysotile mineral fibers 37 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). White Mineral 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
  • 38. The use of chrysotile asbestos in the world Countries with a prohibition – around 55 Countries that buys from SAMA – more than 20 Countries with a regular use – more than 150 38
  • 39. Brazil concluded in 2010 important research about chrysotile 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 . 39
  • 40. Positioning with respect to the legal question of chrysotile mineral 40 The Federal Supreme Court (STF) began on October 31st, 2012 its ruling on the merit of the Direct Actions of Unconstitutionality (ADI) 3357 in the light of state Law 11.643/2001 enacted by the state of Rio Grande do Sul, and ADI 3937 in the context of state Law 12,684 of July 26th, 2007 of the state of São Paulo. Judge Ayres Britto began the judgment ruling in favor of the constitutionality of the state laws while Judge Marco Aurélio’s vote was for the unconstitutionality of the same state laws. Following the conclusion of Judge Marco Aurélio’s ruling, the presiding judge adjourned the work of the court. We would point out that this judgment is fruit of exhaustive debates with Brazilian society through public hearings held by the STF on August 24th and 31st, 2012 led by Judge Marco Aurélio together with the judges Rosa Weber and Ricardo Lewandowski. For this reason, the STF is expected to set a new date for the final ruling on the merit mentioned in the ADIs as a whole.
  • 41. Information Este material foi produzido com papeis certificados FSC (Forest Stewardship Council), que é uma garantia de que a matéria-prima advém de uma floresta manejada de forma ecologicamente correta, socialmente e economicamente viável. www.blogdaeternit.com.br www.eternit.com.br/ir Élio A. Martins elio.martins@eternit.com.br Paula D. A. Barhum Macedo paula.barhum@eternit.com.br Rodrigo Lopes da Luz rodrigo.luz@eternit.com.br Phone: (55-11) 3038-3818 (55-11) 3194-3881 @Eternit_RI Dr. Fernandes Coelho Street, 85 – 8th floor Pinheiros – São Paulo / SP 05423-040 41
  • 42. Welcome to the next 70 years! Eternit starts a new cycle 42