By Nelson Pazikas, Chief Executive
and Investor Relations Officer

THE RESULTS DELIVERED IN 2015
ARE DUE TO THE TRANSFORMATIONAL SPIRIT OF OUR 2,300 EMPLOYEES

If there is one concept deeply rooted at Eternit, given its history spanning over 75 years, it is that you must always be prepared to maximize results when opportunities arise and to prioritize prudence and solidity when times become more challenging.

This has been our posture over these past two years, especially in 2015, when we faced the effects from the recession and political uncertainties in Brazil and from global economic dynamics that have affected businesses throughout the construction industry. Even though the year has been difficult, this posture supported advances at the Company, including the strengthening of the portfolio-diversification strategy. Eternit is well founded on solid pillars that allow us to continue building, always.

Our business activities are intently focused on attaining the highest level of efficiency to overcome the recession and its effects. That is why we were even more meticulous with regard to the inefficiency, optimizing processes at plants, adjusting demand to production and inventories, capturing greater synergies across units by creating the Shared Services Center and enhancing our governance and risk management. After the investments made in previous years, 2015 was a year in which we continued to consolidate these investments by improving our processes to capture operating efficiency gains and strengthen our organizational culture.

The low cycle in the Brazilian economy has affected the construction materials industry, in which the Company operates. The weaker domestic sales of chrysotile mineral, fiber-cement and concrete roofing tiles were primarily due to the slowdown in the industry, higher unemployment rates, lower household income, tighter credit and the slower pace of renovations. In the export market, chrysotile sales suffered from the increased competitiveness of international players and from weaker sales to India given the increased competitiveness of steel roofing panels due to the availability of iron ore at low prices.

In 2016, in the fiber-cement segment, Eternit will draw on the strength of its brand and its network of over 15,000 resellers to minimize the effects of the crisis and operate its plants at maximum capacity utilization rates. For the other segments, chrysotile mining and concrete roofing tiles, capacity utilization will accompany market demand.

In the bathroom chinaware segment – in which we operate with third-party capacity and, since 2014, through the joint venture Companhia Sulamericana de Cerâmica – certain factors affected the results for 2015, such as imports of lower-value items to complement production and meet demand, the delay by the public utility in concluding the natural gas line to supply the production site, and the progressive evolution in production indicators. However, these bottlenecks have already been resolved. In 2016, this business segment should gain a more diversified portfolio to enhance the profitability of the business.

With regard to the unit for the research, development and production of construction material inputs in Manaus, Amazonas, during the second half of 2015, the Company began testing equipment and produced and sold trial batches of polypropylene yarns for testing their application in fiber-cement on an industrial scale. In view of the aforementioned, we ended 2015 with net revenue of R$974.9 million, virtually in line with 2014. The Group's performance in 2015 is the result of the transformational spirit of our more than 2,300 employees, supported by the strength of our brand and their ethical conduct and professionalism.

In 2016, we will continue to work with a strong focus on ensuring our financial solidity and the sustainability of our businesses to consolidate Eternit as a leading supplier of raw materials, products and solutions to the construction industry.

Eternit takes this opportunity to reaffirm its commitment to the ten principles of the Global Compact, to which it is a signatory since 2007, and to express its deep appreciation to its shareholders, employees, clients, suppliers, regulatory agencies, partners, as well as anyone who contributed to its performance in 2015. Their support, confidence in the future and unwavering commitment and dedication, always in keeping with the principles of sustainable development, are the foundation and strength that support all that we do.