Apresentao do PowerPoint

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Brazil 2003 CEO Conference UBS Warburg
Rio de Janeiro April, 2003
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Highlights

• 102 years of tradition focused on the
  production of steel in mini-mills and in the
  distribution of steel products.
• Installed capacity of 14 million metric tons of
  crude steel.
• 19th largest world steel producer according to
  Metal Bulletin.
• Largest long steel producer in the Americas.
• Gerdau S.A. is listed on the BOVESPA, on the
  NYSE and on the Latibex (Madrid). Gerdau
  Ameristeel Corp. is listed on the Toronto Stock
  Exchange.
• 10 units in Brazil, 12 abroad and 2 strategic
  shareholdings (Sipar - Rolling mill in
  Argentina and Gallatin - flat steel in the USA).
• 67 sales points in Brazil (Comercial Gerdau).
• 17 downstream operations and special sections
  (5 in Brazil e 12 in North America).
• 24 fabrication shops (9 in Brazil and 15 in
  North America).
• 4 service centers for flat steel in Brazil
  (Comercial Gerdau).

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Capital Structure
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Results 2002
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Indebtedness GERDAU S.A. - CONSOLIDATED
US million
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North America

• Gerdau AmeriSteel Corp.
• Oct/02 merged Gerdau x Co-Steel
• 2nd largest long steel producer in North
  America
• 10 steel mills
• 15 fabrication shops
• 12 downstream operations and special
  sections
• 13 scrap recycling operations
• 1 joint venture (Gallatin Steel)
• Consolidation / Synergies

• Outlook
• Steel industry restructuring
• Steel imports declining
• Cost of inputs x Price increases
• War in Iraq
• U.S. economy slowly recovering from 2001
  recession
• GDP growth USA 2,2, Canada 2,8 (source
  IMF)

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South America

• Outlook
• Steel plants in Chile and Uruguay Rolling
  mill in Argentina
• Positive outlook for the Chilean operations
• Moderate recovery in Argentina
• Slow recovery in Uruguay
• GDP growth Chile 3,1
  Argentina 3,0 Uruguay 2,2
• Source IMF

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Brazil

• Outlook
• Economy recovering GDP 2,8 (source IMF)
• Positive startup of the new government
  administration
• Civil construction and agriculture incentives
  impact in the 2nd half of 2003
• Social securities and tax reform
• Cost of inputs X Price increases
• Specialty steel sector positive outlook
• Açominas back in full speed mode

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Açominas

• Outlook
• Integrated steel mill with 3 million tons
  per year of liquid steel capacity
• Gross sales of US 450 million in 2002 of
  which 54 from exports
• Infrastructure to increase capacity up to 10
  million tons per year of liquid steel
• Products billets, slabs and blooms Wide
  flange beams, rebars and profiles
• Nov/03 new wire rod rolling mill

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