ETER3

Eternit S.A. is a traditional company in Brazil’s construction materials industry, with common shares ETER3 traded on B3. Its history dates back to January 1940, when it was incorporated in Osasco (SP) as Eternit do Brasil Cimento Amianto S.A., starting production of corrugated and flat fiber cement sheets that same year. In 1948, the company listed its shares on the stock exchange, strengthening its connection with the capital markets. Over the following decades, it expanded its industrial footprint to different regions of the country, with plants in Rio de Janeiro (1949), Simões Filho (BA, 1967), Goiânia (GO, 1971) and Colombo (PR, 1975), following the growth of the construction sector and the inland expansion of Brazil’s development.

Eternit’s business model is centered on the manufacturing and sale of materials for the roofing and building solutions segments, as well as the mining and export of chrysotile mineral fiber and the production of synthetic polypropylene fiber. The company operates in an integrated manner across a significant part of the fiber cement value chain: on one side, it produces mineral fiber through its subsidiary SAMA, a mining company that ranks among the three largest chrysotile producers in the world; on the other, it manufactures roofing tiles, cement boards, and a variety of components and accessories for residential, commercial and industrial projects. In 2024, the fiber cement segment accounted for 65% of consolidated net revenue, while chrysotile mineral, destined exclusively for export, represented 33%, and concrete roofing tiles, 2%.

In the roofing segment, Eternit offers a complete line of fiber cement roofing tiles aimed at both simple and complex projects, used in residential, commercial and industrial works throughout Brazil. Production is carried out by industrial units located in the South, Southeast, Center-West and Northeast regions, with factories in municipalities such as Colombo (PR), Atibaia (SP), Hortolândia (SP), Rio de Janeiro (RJ), Goiânia (GO), Simões Filho (BA) and Caucaia (CE), the latter inaugurated in March 2024 with a focus on sustainable practices. In addition to fiber cement tiles, the company operates in concrete tiles through Tégula, which is presented as the Brazilian leader in this niche, offering more than 30 products for different roof types. Until March 2025, the group was also involved in concrete photovoltaic tiles through Tégula Solar in Atibaia, an operation later discontinued due to strong competition from low-cost imported solar modules.

Eternit’s building solutions area includes several lines of cement-based products, mainly geared toward dry construction and industrialized systems. The company manufactures smooth and textured cement boards for walls, ceilings and façades, self-supporting panels such as the Painel Wall for floors, mezzanines and enclosures, as well as specific products for joint and surface treatment, such as the Linha Pratic. The portfolio is complemented by items such as Eterplac Tapume, for fencing worksites and temporary structures, Eterpiso, a cement board for floors in modular and light steel frame systems, and Eterplac Siding, a cement siding plank for finishing external walls with different textures. Eternit also sells accessories and complementary materials, such as water-repellent membranes for façade sealing, rock wool for thermal and acoustic insulation, and Eterfoil thermal blankets for roof underlayment, which can be used with various types of tiles.

In mining, SAMA, controlled by Eternit, operates the Cana Brava Mine in Minaçu (GO), being the only chrysotile mining company currently active in Brazil and remaining among the three largest global producers of this mineral. After the 2017 decision by the Federal Supreme Court banning the use of chrysotile asbestos in the domestic market, Eternit began directing production exclusively to exports, based on specific state legislation. In 2024, the chrysotile mineral segment accounted for 384.8 million reais in net revenue, equivalent to 33% of the group’s consolidated revenue, with sales of 166.8 thousand tons mainly to India, Indonesia, Bangladesh and Sri Lanka. The main customers Hil Limited and Ramco Industries, linked to the manufacture of fiber cement sheets abroad, together accounted for a relevant share of revenue, underscoring the strategic weight of the mining operation in the company’s exports.

Eternit’s geographic footprint is nationwide and combines industrial and mining activities. The head office is located in the city of São Paulo, while industrial production of roofing and building solutions is distributed among plants in Colombo (PR), Atibaia and Hortolândia (SP), Rio de Janeiro (RJ), Goiânia (GO), Simões Filho (BA), Manaus (AM) and Caucaia (CE). Chrysotile mining is concentrated in Minaçu (GO), with all export logistics based on road transport to the ports of Santos (SP) and Paranaguá (PR). In 2022, the acquisition of Confibra in Hortolândia (SP) strengthened industrial capacity in the fiber cement segment and the strategy of scaling up and integrating operations in the country.

From a regulatory standpoint, Eternit operates in sectors with strong state presence and the need for multiple licenses. In mining, SAMA’s exploitation of chrysotile mineral takes place under a federal concession, remunerated by CFEM and royalties to the state of Goiás, and depends on a Regularity Certificate from the National Mining Agency. The industrial and mining operations require environmental licenses from state agencies such as IAP (PR), CETESB (SP), INEA (RJ), SEMAD (GO), INEMA (BA), SEMACE (CE) and IPAAM (AM), as well as authorizations from federal entities such as IBAMA, ANM, the National Water Agency, and other bodies such as the Army, Federal Police, Civil Police, ANATEL and ANTT. The company states that it keeps its licenses up to date and adopts a management system based on ABNT NBR 9000, 14000 and 45000 standards to ensure compliance with legal requirements.

On environmental, social and governance (ESG) topics, Eternit highlights the existence of an Annual Sustainability Report prepared based on the Global Reporting Initiative (GRI) guidelines, aligned with the Global Compact and the UN Sustainable Development Goals. The company maintains forest reserves associated with its units in Colombo (PR), Simões Filho (BA), Atibaia (SP) and Minaçu (GO), with permanent preservation areas and legal reserves that represent a significant portion of the areas under its responsibility, especially in the mining operation. The group develops degraded-area recovery programs, with revegetation of waste piles and planting of native species, as well as initiatives to engage with surrounding communities, including awareness campaigns on forest fire prevention. In governance, the company joined B3’s Level 2 in 2004 and migrated to the Novo Mercado in 2006, reinforcing commitments to transparency for investors who track ETER3’s performance. After six years under court-supervised reorganization, the process was closed in 2024 with court approval of the fulfillment of the obligations assumed, within a restructuring strategy focused on industrial modernization and long-term economic and financial balance.

In terms of product innovation, Eternit has sought technological alternatives both on the industrial side and in inputs. The Manaus (AM) unit, created as a research and development center, became an industrial-scale producer of polypropylene yarns starting in 2016, an input used in fiber cement as well as in concrete and mortars, contributing to the gradual replacement of asbestos by synthetic fibers. In the roofing segment, the group tested concrete photovoltaic tiles, an attempt to add solar power generation to its tile portfolio, although this front was discontinued in 2025 for competitiveness reasons. For individual investors analyzing ETER3 shares on B3, this set of information reveals a traditional company in the construction sector, with a relevant fiber cement operation in the domestic market, combined with chrysotile exports and a recent history of restructuring and regulatory and technological adaptation.