Euler's formula is an example of the mathematical identity e^ix = cos(x)+i*sin(x) for all real values of x. In this case, x=pi, cos(pi)=-1 and sin(x)=0.

Deriving the identity itself involves some knowledge of calculus and combinatorics. You can short-cut it, if you'd like, by looking up Euler's formula in the sci.math FAQ at www.faqs.org.