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ANNUAL REPORT 2012

Over a period of more than 70 years Eternit has contributed to the development of very important intangible
assets that differentiate the Company in the market and contribute to the success of its business strategy.
Over the long term, the Company intends to associate the Eternit brand name with the development of new
products, maintaining its position among the best companies to work for, with 50% of its sales linked to
the diversification of its portfolio.

These aspects are managed in a structured manner:

Brand-name strength

The Eternit brand name is rapidly associated by its customers and consumers with product quality. In addition to this, dialogue initiatives with public audiences and be transparent disclosure of information, all contribute to the Company’s reputation, widely recognised for its competence and serious approach.

Eternit creates visibility for its brand name and constantly publicises its portfolio, also participating in television programs focused at its public audiences in which the application of the product is shown in practice. The brand name is also associated with the practice of sports, through the sponsorship of Brazilian Championship Games and its presence in radio programs on this theme.

Human Resources

Human capital is one of Eternit’s differentials. Its various initiatives focused on qualification, career management, differentiated staff remuneration and the promotion of a healthy work environment, are widely recognised by the market. The Company features in Brazil’s main ranking research as one of the best companies to work for. In 2012 SAMA featured in all the polls carried out as one of the best companies to work for, with the magazine Você S/A electing it as the best mining company to work for in the Country, while Eternit was also elected as being one of the 150 Best companies to work for in Brazil.

Value for money

In offering products of a high quality and durability, at accessible prices Eternit provides consumer access to social classes with lower purchasing power. Thanks to the attractive value for money of its products, the brand name is present in 47% of Brazilian homes.

Diversification

In continuing with its Structured Plan for Expansion and Diversification, the Company has been expanding its portfolio since the end of 2007, positioning itself as an major supplier of products and solutions for the building sector. This plan is based on expanding production capacity, broadening the Company’s product portfolio, and inorganic growth.

Differentiated logistics

Eternit has been overtaking various companies in the construction materials sector due to its strategy of serving a wide network of sales outlets using its extensive logistics. Having 11 manufacturing plants located in 4 different regions of the Brazil, more than 16,000 retail sales outlets, and an extensive distribution network, the Company is able to deliver orders made to any part of the Country within an average period of 72 hours.

72HOURS
IS THE AVERAGE DELIVERY PERIOD FOR ANY ORDER TO ANY PART OF BRAZIL, THE RESULT OF AN EFFICIENT LOGISTICS NETWORK

New technologies

The Company uses leading-edge technology in its operations to enable it to make gains in productivity. In its Columbo Unit, the Company maintains a laboratory for the research and development of new technologies which add value to the production process, and enable new products to be launched.