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

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Presentation on theme: "Brazil 2003 CEO Conference UBS Warburg Rio de Janeiro April, 2003."— Presentation transcript:

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

2 102 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. 19 th 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). Highlights 02

3 Met. Gerdau S.A. Gerdau S.A. Seiva Gerdau Internacional Açominas Sipar Laisa Aza 50% 79%100%96% 67% 38% 100% Courtice MRM AmeriSteel Gallatin Gerdau Ameristeel Corp. 100% 50% Capital Structure 03

4 Results 2002 04

5 US$ million Indebtedness GERDAU S.A. - CONSOLIDATED 05

6 North America Gerdau AmeriSteel Corp. Oct/02: merged Gerdau x Co-Steel 2 nd 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) 06

7 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 South America SIPAR (1) LAISA AZA (1) Joint Venture - 38% 07

8 Outlook Economy recovering: GDP +2,8% (source: IMF) Positive startup of the new government administration Civil construction and agriculture incentives – impact in the 2 nd 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 Brazil Gerdau S.A. Açominas Cearense Açonorte Usiba Cosigua Barão de Cocais Açominas Guaíra Piratini Riograndense Divinópolis 08

9 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 Açominas 09 RJ MG ES SP VITÓRIA GOV.VALADARES OURO BRANCO BELO HORIZONTE SÃO PAULO RIO DE JANEIRO CONS.LAFAIETE JUIZ DE FORA CONGONHAS OURO PRETO EFVM CST ACESITA USIMINAS AÇOMINAS CSN COSIPA ATLANTIC OCEAN


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