2005 Sustainability Report
Economic and social performance
Aracruz’s activities generated $12.3 billion in economic resources between 1989 and 2005. A significant part of this sum was reinvested in the business, striving to promote the sustainability of the Company. It is worth noting that since 1995, Aracruz has been growing at an average annual rate of 10%, driving the development of the regions in which it operates and of the country.
Among the highlights of the year were the acquisition of $584 million – which corresponds to almost 41% of the resources generated – in materials, products and services, giving priority to local suppliers, thereby stimulating the growth of the economy and the generation of opportunities in the regions it influences.
Due to the increase in social demands resulting in part from its own growth, the need was identified for a restructuring of Aracruz’s social actions and investments. This restructuring will start in 2006 with the support of an outside consultant.
* The chart presents the resources generated in 2005 according to the Added Value Demonstration criteria, based on the results of the year and not on the cash flow, as reported in previous years.
| Employees – consolidated data 2005 | |
| Own employees | 2,249 |
| Aracruz Celulose S.A. | 2,106 |
| Barra do Riacho Unit | 1,608 |
| Guaíba Unit | 481 |
| International subsidiaries | 17 |
| Portocel – Terminal Especializado de Barra do Riacho S.A. | 143 |
| Permanent outsourced workers | 7,988 |
| Barra do Riacho Unit | 6,333 |
| Guaíba Unit | 1,655 |
| Total direct employees | 10,237 |
| Labor compensation – own employees | US$ thousand |
| Wages and salaries | 116,787 |
| Compulsory social taxes | 62,481 |
| Benefits | 61,261 |
| Employee profit sharing | 15,786 |
| Medical assistance | 13,642 |
| Meals and basic food provisions | 7,617 |
| Transport | 5,590 |
| Professional training | 4,023 |
| Private retirement plan | 5,844 |
| Other benefits | 8,759 |
| Total | 240,529 |
| Selected statistics | |
| New hirings during the period | 263 |
| Nominal wage – average (US$) | 2,976 |
| Basic wage (US$) | 524 |
| Number of hours dedicated to professional training and development | 101,942 |
| Number of hours dedicated to professional training and development per employee | 45 |
| Number of employees benefiting from health plan | 6,890 |
| Number of medical consultations under the health plan | 38,256 |
| Number of occupational health examinations | 2,352 |
| Number of occupational examinations | 27,934 |
| Number of days spent in hospital covered by the health plan | 1,033 |
| Number of meals served | 2,062,261 |
| Turnover index – own employees | 2.24% |
| Percent of employees covered by union collective bargaining agreements | 98% |
| Lowest salary at Aracruz x minimum wage in effect nationwide (R$619.91 x R$300.00) | 2.07 |
| Percentage of women on the Company payroll | 11% |
| Percentage of Caucasians * | 71% |
| Percentage of Afro-Brazilians and mixed race * | 28% |
| Others (Asian/Indigenous) * | 1% |
| Percentage of rehabilitated or handicapped workers – Barra do Riacho Unit | 5% |
| Percentage of rehabilitated or handicapped workers – Guaíba Unit | 4% |
| * According to IBGE criteria. | |
| Turnover calculation 2005 | Average | Total |
| Admissions | 22 | 263 |
| Departures | 28 | 334 |
| Effective average | 2,222 | |
| Average accumulated turnover in 2005 | 2% |