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ANNUAL REPORT 2012

With the objective of making public the most important financial, social and environmental information for the year 2012, in accordance with the best corporate governance practices, Eternit S.A. is publishing the sixth edition of its annual report. This document is in alignment with the directives proposed under the Global Reporting Initiative (GRI), bursting 3.1, with an application level B.

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The information presented here refers to the operations of the entire Company, including Eternit's headquarters, the four fiber-cement plants, the sales affiliates and three subsidiaries: Sama S.A. Minerações Associadas, Precon Goiás Industrial Ltda. and Tégula Soluções para Telhados Ltda., with six concrete tile manufacturing plants in the Country. The joint venture together with Organizações Corona S.A. has not been included, as in the case of the 2011 report, because it is only scheduled to begin operations in the first quarter of 2014. Significant changes that have taken place at these companies are also covered in this report.

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The content of this report has been subject of guidance and approval by an internal multi-disciplined collegiate, taking into account themes of interest to the Company's strategic public audiences – shareholders, employees, clients, suppliers, the community, government and society. The forms of engagement with these public audiences are described in the chapter entitled "Tile by Tile".

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To provide a better understanding of these strategic public audiences, the document has been structured into seven thematic sections. They portray the history, culture, philosophy and values of Eternit. At the start of each chapter, the relationship between the
presentational concept and the content is explained to the reader.

For the compiling of this report, the Company has also included recommendations from the Brazilian Association of Listed Companies (ABRASCA), the Brazilian Institute for Social and Environmental Analysis (IBASE), Brazilian Accounting Standard NBCT 15 and International Financial Reporting Standards (IFRS). The content also reflects the principles of the United Nations Global Compact and Millennium Targets, of which Eternit has been a signatory since 2007.

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