Apresenta

1
Gerdau S.A.
Third Annual Natural Resources Conference JP
Morgan
São PauloFebruary, 2003
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Steel Sector
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Crude Steel Output 2002
1,000 tons
Source IISI
03
4
Largest Crude Steel Producers IISI - 2001
Million tons
Gerdau is the largest long steel producer in
the Americas
Million tons
OUTPUT OF GERDAU BASED ON 100 OF AÇOMINAS
CO-STEEL SOUTH AMERICA 2001 OUTPUT
Source IISI e Gerdau
04
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Brazilian Output CRUDE STEEL 2002
1,000 tons
Source IBS
05
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Gerdau S.A.
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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.
• 15th largest world steel producer according to
  the IISI ranking.
• Largest long steel producer in the Americas.
• Gerdau S.A. is listed on the Brazilian Stock
  Exchanges, on the NYSE and on the Latibex
  (Madrid Stock Exchange). 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).
• 72 sales points in Brazil (Comercial Gerdau).
• 17 downstream operations and special sections
  (4 in Brazil e 13 in North America).
• 25 fabrication shops (9 in Brazil and 16 in
  North America).
• 4 service centers for flat steel in Brazil
  (Comercial Gerdau).

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Capital Structure
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Geographical Distribution

• ABROAD
• 7.0 MILLION TONS OF CRUDE STEEL PER YEAR
• 6.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR

Barão de Cocais

• BRAZIL
• 7.2 MILLION TONS OF CRUDE STEEL PER YEAR
• 4.7 MILLION TONS OF ROLLED PRODUCTS PER YEAR

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Capacity Products 2002
Crude Steel
Rolled Products
Products
1,000 tons
Billets, rebars, merchant bars, profiles,
wire-rod, drawn products, nails, specialty steel.
Billets, slabs, blooms, rebars,merchant bars,
profiles and structurals.
Rebars, merchant bars, profiles and wire-rod
Rebars, merchant bars, profiles, wire-rod,
downstream products, special sections and flat
products.
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Output Evolution

• Objectives
• Strategies
• Evolution

• Main Events
• Gerdau Ameristeel Corp.
• Challenges and Forecasts

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Business Breakdown 2002

• NET REVENUE
• BRAZIL 57
• NORTH AMERICA 38
• SOUTH AMERICA 5
• 100

• CRUDE STEEL OUTPUT
• BRAZIL 64
• NORTH AMERICA 33
• SOUTH AMERICA 3
• 100

• EBITDA
• BRAZIL 79
• NORTH AMERICA 16
• SOUTH AMERICA 5
• 100

• ROLLED PRODUCTS OUTPUT
• BRAZIL 46
• NORTH AMERICA 49
• SOUTH AMERICA 5
• 100

• NET INCOME
• BRAZIL 83
• NORTH AMERICA 13
• SOUTH AMERICA 4
• 100

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Results 2002
NORTH AMERICA
SOUTH AMERICA
CONSOLIDATED
US million
BRAZIL
13
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Results - North America CURRENT BASIS
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Gerdau Ameristeel Corp. Corporate Law X Pro forma
figures
Gerdau S.A. Consolidated figures Oct 23 Dec 31,
2002
Gerdau Ameristeel Pro forma figures Oct 1 Dec
31, 2002
Net Sales US 391 million 22 days more in October
Net Sales US 302 million
Net Income US 8,4 million Gerdau Consolidated
3,8 Adjustments 4,6
Net Income US 3,8 million
EBITDA US 39,6 million Gerdau Consolidated
17,0 Adjustments
4,6 Non-recurring pretax cash gains 6,1 Equity
pick up over Dofasco JV 4,5 Depreciation
7,4
EBITDA US 17 million
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Indebtedness GERDAU S.A. - CONSOLIDATED
US million
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Outlook 2003

• Economic growth in Brazil
• U.S. economy slowly recovering from 2001
  recession
• Steel imports declining
• Slow recovery in Argentina
• Positive outlook for the Chilean operations
• New federal administration in Brazil
• Cost of inputs

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Appreciation Chart
Source Economática Date 01/30/2003
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