03PLATFORM FOR THE NEXT 70 YEARS

HUMAN CAPITAL

As there is no strategy which can either be developed put into practice without human effort, the Eternit Group attributes great worth to its employees as the being the driver for its businesses, and the Company's commitments to society.

At the end of December 2010, the Eternit Group had 3112 employees, including direct and indirect. This amount was 32% more than the previous year, as a result of the need to hire more staff to support the Company's growth. Of this total, 86 are student trainees, and 43 are apprentices, demonstrating the worth that the Company attributes to young talent. Most of the employees are contracted under the CLT (Brazilian Consolidated Labour Law) regime – 2373 people. All the professional staff hired under this regime are covered by collective wage agreements. The table below shows the Group's workforce by hiring regime and region: LA1 LA4

WORKFORCE OF THE ETERNIT GROUP

* For comparison purposes, the figures from subsidiary Tégula have not been included.

Of the total number of direct employees (CLT employees and apprentices), 2187 are men. Currently, the men receive salaries that are 38% higher than the women. LA14

As a way of promoting socio-economic development in particular regions, especially among the low-income population, Eternit values the hiring of local labour – approximately 52% of its managers work in their state of origin. EC7

With regard to the amount of people leaving the Company, there was an increase of 7.8% in 2010, compared to the previous year - without taking Tégula into account - as a result of the shortage of labour being seen in the building sector; our employees have been receiving better employment offers in the sector, in terms of remuneration paid. LA2

FIRINGS*				2010		TURNOVER		2010 pro-forma(*)		TURNOVER		2009		TURNOVER
Gender		Masculine		366				217				200
		Feminine		47				31				30
Age Bracket		Up to 25		170				78				85
		26 to 30		90				53				43
		31 to 40		110				78				51
		41 to 50		34				30				32
		Over 50		9				9				19
Unit		Anápolis - Tégula		32		105.26%		-
		Anápolis - Precon		8		0.94%		8		0.94%		33		2.68%
		Brasília
		Colombo		94		11.05%		94		11.05%		78		6.32%
		Porto Alegre				-		-				0		0.00%
		Rio de Janeiro		33		3.88%		33		3.88%		21		1.70%
		São Paulo		13		1.79%		13		1.79%		12		1.58%
		Simões Filho		15		1.76%		15		1.76%		12		0.97%
		Goiânia		29		3.41%		29		3.41%		25		2.03%
		Minaçu		56		0.93%		56		0.93%		49		1.05%
		Atibaia		78		80.78%
		Içara		6		50.36%
		Camaçari		30		124.34%
		Frederico Westphalen		19		75.67%
Total				413		460.18%		248		23.77%		230		16.33%

*For comparison purposes, the figures from subsidiary Tégula have not been included.

ENGAGEMENT AND IMPROVEMENT OF TALENT

In its search for excellence, continuous improvement cannot be restricted to processes and businesses. It must also include people. For this reason, the Company invests heavily in the development and training of its employees.

Training ranges from leadership preparation to technical updating, with choices which always combine the needs of the employee with those of the area and the function exercised. To this end, the company carries out an annual Training Needs Assessment, which has the objective of programming for the training necessary for employees for them to be able to carry out their activities. In addition to the training carried out internally, whose cost is borne completely by the Company, Eternit also provides its employees with student grants for technical, graduate and postgraduate courses, bearing the cost of 50% of the total.  In the case of SAMA, training courses are offered in partnership with SESI and SENAI both for employees and partners, as well as the community of Minaçu and the surrounding region, at a unit located on the premises of the mining company.  In 2010, approximately 83,130 hours of training were held, the equivalent of around 27 hours per employee. LA10

These measures, together with the other benefits offered by the Company, are part of its policy of attracting and retaining talent.  In this regard, Eternit prioritises its internal recruiting, opening up the possibility of career advancement within the Company itself, in another position or another area of operation.  All employees can offer themselves as candidates if they fit a particular job vacancy profile. In 2010, there were 208 recruitments from inside the Company, for 1103 job vacancies. EC7 LA11

To assess continuous progress, all employees of the Group, including those in leadership positions, are periodically assessed. In 2010 all employees of Eternit and SAMA underwent performance evaluation. The leaders within the Company were also assessed in terms of behavioural performance, through 360° evaluation methodology, which includes the opinion of the person's immediate superior, his peers, and subordinates.  At Tégula, only the directors, managers and supervisors annually undergo performance analysis, equivalent to 5% of the total workforce of that company. LA12

All employees in the Group also undergo Climate Research, which evaluates the satisfaction of employees with respect to various aspects, such as human resources policy, working environment and engagement.  The responses from this research are confidential, and allow the diagnosis of areas that need to be improved, for which the companies take a proactive approach in resolving, with structured action plans. SAMA again received recognition in the market for its excellent organisational climate, awarded by the Great Place to Work Institute, and the magazines Exame and Você S/A, in their election of the best companies to work for in Brazil.

SUCCESSION PLANS

Eternit's policy is to prepare two successors for each leadership position at the level of manager and director.  This succession plan is updated annually and aims to ensure that the people recommended are as well prepared as possible for the posts in question, guaranteeing excellence in results and the duration of the business over the long term.

Despite not being part of its collective agreement, Eternit has a policy of notifying its employers in advance in the event of transferred to other units.  In the case of SAMA, it is a rule established in the collective salary agreement that employees must be given a minimum of 30 days advance notice. LA5

PERFORMANCE TARGETS

Performance targets are linked to profit-sharing for all employees, these being publicised at the beginning of the year and accompanied on a monthly basis by the leaders in the organisation.  At Eternit, each area has specific targets, as well as targets linked to the global result of the Company.  The directors and management of Eternit and SAMA, have individual performance targets that include quantitative and behavioural factors.

BENEFITS

Eternit, Precon Goiás and SAMA offer a benefit package which is very competitive, being actually better than the market average, according to the results of salary research carried out in 2008. Eternit offers medical assistance and dental plans, which are extended to dependents; subsidies for medicines, also extended to dependents; reimbursement of creche expenses paid to employees with children from four months up to three years of age; optical assistance, for the purchase of spectacles/contacts lenses; a subsidy in the event of employees requiring time off work for more than 15 days as a result of disease, with the employee receiving 92% of his salary for a period of up to 90 days.

There are also emergency loans to cover unexpected expenses, such as disease in the family, unscheduled surgery, and personal accident not covered by medical plans, or severe injury in the principal place of residence of the employee caused by natural phenomena, placing the family's lives at risk. Life insurance is also offered in group form, as well as food subsidies and basic foodstuff baskets, luncheon and restaurant vouchers, transport vouchers, student grants of up to 50% and 70% for Eternit and SAMA, respectively, for technical, graduate and postgraduate and languages courses, as well as private pension arrangements.

The principal benefits offered by these companies are also included in the salary package at Tégula. The main differences are with respect to subsidies or graduate, postgraduate and language courses, which are established at R$ 150, and loans, which are open to current account holders with Banco do Brasil, with instalments amounting to a maximum of 30% of salary, discounted on a monthly basis from employee payrolls. LA3

OCCUPATIONAL HEALTH AND SAFETY

Occupational health and safety are critical themes for Eternit, particularly due to the nature of its businesses, which involve mining and chrysotile ore fibre.  For this reason the Company invests heavily in measures which exceed the standards and directives required by law and public and sector bodies. Inspection and contribution to the fulfilment of all the health and safety standards is the responsibility of the committees and special groups, as shown in the table below.  These groups are incentivated and supported by the Eternit Group. LA6 HR5

OS COLABORADORES TÊM PARTICIPAÇÃO ATIVA NA GESTÃO DE SEGURANÇA DA COMPANHIA

Eternit - 2010		CIPA		ASBESTOS COMMISSION		EMERGENCY BRIGADE		Total employees on committees in 2010		Total employees in 2010		%
Colombo		20		4		38		62		448		13.84%
Simões Filho		14		5		20		39		155		25.16%
Anápolis		12		3		27		42		97		43.30%
Rio de Janeiro		14		4		35		53		211		25.12%
Goiânia		16		5		41		62		271		22.88%
SAMA		10		10		89		109		1055		10.33%
Tégula - 2010		CIPA		SAFETY COMMITTEE + Mão de Ouro		EMERGENCY BRIGADE
Atibaia plant		14		21		23		58		331		17.52%
Içara plant		8		10		10		28		55		50.91%
Camaçari plant		2		7		5		14		48		29.17%
Frederico Westphalen plant		2		8		6		16		41		39.02%
Anápolis plant		2		9		0		11		59		18.64%

With respect to health, all employees, at whatever hierarchical level and in whichever unit, undergo annual medical examinations. Respiratory exams also include former employees of SAMA on a life long basis. Since the beginning of the 80s, no diseases related to chrysotile ore had been recorded, proving that the operations with this fibre are totally controlled and safe. Concern with regard to health also includes quality of life, with the offering of programs which range from gymnastics in the workplace and subsidies for the practice of sports, to vaccination campaigns, seminars on cancer, cholesterol, tobacco addiction, among other health problems. Many of these campaigns also include service providers and surrounding communities. LA8

With respect to safety, the Company has a series of initiatives focused on each step of the production chain, even including the prevention of accidents in the Company’s administrative areas. As a consequence of this work, in 2010 the index of accidents involving time off work amounted to 7.93 – compared to 10.48 in 2009 – with the rate of severity being 98.64 (341.96 in 2009). LA7

Frequency index =		Accidents involving time off work x 1,000,000
		Man-hours worked
Severity index =		Days lost x 1,000,000
		Man-hours worked

For its efforts in the area of health and safety, in 2006 Eternit was awarded OHSAS 18,001 certification, with SAMA achieving certification in 2009, testament to the good practices of the Group in this area.

BEST COMPANY TO WORK FOR

In 2010 SAMA featured for the fourth year running among the best companies to work for in the Country's most respected rankings: The 150 Best Companies to Work for, by Exame magazine, and the 100 Best Companies to Work for, by Época magazine. This position is due, among other reasons, to the priority given in hiring local staff in Minaçu (GO), who are offered a generous benefit package, in addition to opportunities for professional training.

In this regard, the mine has had a partnership with SESI and SENAI in Goiás for the last 21 years, for the subsidy of technical and training courses, as well as courses on qualification and perfection training on its premises. The areas of training cover health, occupational safety, electricity, computer technology, general mechanics, mining, among others.  Technical staff from SAMA contribute to a proportion of the courses.

Within this partnership arrangement, the mine also promotes social sporting activities involving athletics, indoor football, volleyball, tennis, among others, including participation from the community. The Company also supports local athletes in the region in the Goiano Tennis Championship.

RELATIONSHIP WITH FORMER EMPLOYEES

Eternit extends the legal requirement of monitoring the state of health of its staff to ex-employees as well, not just in the units that exist today, but also from the old mine at Poções, in Bahia, for example. The same applies to suppliers who deal directly with the Company's products, such as the truck drivers of the transport company and the stevedores at the ports from where the Company's products are shipped.  A database is also maintained of medical statistics, with record books, x-rays and thorax scans for all these public audiences.  These public audiences can communicate with the Company on the following toll-free number 0800-622945.

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