Corporate Brochure - Gerdau

More than 100 years of sustainable development through steel.

COMPANY PROFILE
An international steel company, the Gerdau Group began its
course of expansion over a century ago. From Brazil, the company
extended its operations into Uruguay, Canada, Chile, Argentina and the
United States, becoming the largest long steel producer in the Americas.
Currently, Gerdau steel is used in a wide variety of applications in the
civil construction, industrial and agricultural sectors. It is found in bridges,
overpasses, highways, hydroelectric power stations, buildings and
homes. Gerdau products are used to manufacture agricultural machinery,
metallic structures, automotive parts, telephone and electric power
lines, among others. Gerdau steel is also used on farms as wire and
fence accessories.
To improve its efficiency, the Gerdau Group operates a network of
steel mills, service centers, downstream operations and distribution
channels strategically positioned near major consumer centers. The
Group follows a philosophy of anticipating the needs of the market,
introducing products and services that add value to the business of
its customers. The company also develops innovative management
technologies through continuous process improvement and the use
of Total Quality Management tools.
The Group has been present on the stock exchange for nearly 60 years
and owns three public companies – Gerdau S.A., Metalúrgica Gerdau
S.A. and Gerdau Ameristeel Corporation, its North American subsidiary.
Metalúrgica Gerdau S.A. and Gerdau S.A. are listed on the São Paulo
Stock Exchange. The shares of Gerdau S.A. are also traded on the New
York and Madrid exchanges, and Gerdau Ameristeel Corp. shares are traded
on the Toronto Stock Exchange and the New York Stock Exchange.
Guided by a vision of social responsibility, the Gerdau Group believes that its
development is integrally tied to the evolution of the communities in which it
operates. With this conviction, the company has created a business culture founded
on strong ethics and respect for both people and the environment.

Gerdau Cosigua melt shop – state of Rio de Janeiro, Brazil
VISION
To be a world-class international steel company.
MISSION
Gerdau is an organization focused on the steel business, with
a mission to satisfy customers’ needs and add value to
shareholders, committed to the fulfillment of people and to the
sustainable development of society.
CORPORATE
VALUES
The company’s corporate values are directed at all the publics served by the Gerdau
Group: customers, employees, shareholders, suppliers and the community.
These values are adapted to the cultures of the many countries where
Gerdau operates through specific practices that are relevant to each region.
Satisfied CUSTOMERS
Accomplished PEOPLE
SAFE work environment
QUALITY in everything we do
SOLIDITY and SECURITY
COMMITMENT to all stakeholders
PROFIT as a measure of performance

Gerdau Ameristeel Jackson scrap yard - state of Tennessee, U.S.A.
GERDAU STEEL:
BUILDING A
SUSTAINABLE
FUTURE
Steel is the most recycled product in the world.
Old home appliances, vehicle parts, industrial by-products and
steel cans, in short, objects that are discarded by society are
transformed into raw material for steelmaking.
The Gerdau Group is one of the largest recyclers in the
Americas, using scrap metal as a primary raw material, along
with pig iron and sponge iron. Each year, Gerdau reuses nearly
11 million metric tons of scrap. As a result, the company
measurably optimizes its processes, reduces its energy
consumption and enhances productivity, with increasingly
competitive operating costs.
Recycling scrap helps cleanup our cities and generates thousands
of jobs in the communities in which the Gerdau Group operates.
The social dimension of steelmaking is also reflected in the final
products, which are manufactured in the most economic and
environmentally friendly way and are employed among others in the
construction of homes, bridges, automobiles, hospitals, roads and
transmission towers to improve the quality of life.

Iron ore receiving area at the Gerdau Usiba maritime terminal – state of Bahia, Brazil
STRATEGIC VISION
Growth together with profit: this is the Gerdau Group’s
foundation for success. Throughout its history, the company has
pursued a strategy of continuous expansion. Gerdau is currently the 13th
largest steel producer in the world, according to 2004 data from Metal
Bulletin.
The company seeks to provide return to its shareholders through the
efficiency of its operations, which have earned analyst recognition. The
company has paid dividends every year since 1947, when it was first
listed on the Porto Alegre Stock Exchange. The policy of growing by
adding value to company shareholders reflects the vision that guides
the future of the Gerdau Group: to be a world-class international steel
company. This vision, however, is not restricted to expanding the company’s
geographic presence; it also involves the company’s positioning as a
global player on all levels as it demonstrates both exceptional performance
and superior quality to meet customer demands.
At the same time, the Gerdau Group follows the principles of sustainable
economic development, a fact that is reflected in its history of strong values
and integrity. In all of its activities, the Gerdau Group is committed to balancing
short- and long-term economic, social and environmental demands.

SALES AND MARKETS
The Gerdau Group, which is structured into five steelmaking operations,
has important competitive commercial advantages. Its business activities
are decentralized by product line and/or geographic location of the unit.
This decentralized structure allows the company to anticipate market needs and
trends. Customers are served by a highly qualified sales force that works to
constantly monitor satisfaction levels through systematic surveys that help
guarantee the continued preference for Gerdau products. Based on the results
of these surveys, the sales and operational teams work with customers to
improve products, develop new solutions that increase efficiency, and form
lasting partnerships.
Brazil
Gerdau Açominas S.A., which is responsible for Gerdau’s steelmaking activities
in Brazil, comprises three distinct operations: Gerdau Long Steel, Gerdau
Specialty Steel and Gerdau Açominas – Ouro Branco.
Gerdau Long Steel Operation
The sales of long steel in Brazil are structured in business areas that target
specific market segments. Long steel is produced in mills located in the
Northeast, Southeast and South regions of Brazil and processed in fabricated
reinforcing steel facilities and downstream operations.
For civil construction, the company offers solutions that translate into increased
competitiveness. In terms of industrial applications, Gerdau provides the largest
and most comprehensive line of products for automotive parts, farming machinery
and accessories, metallic structures, tools and locksmith equipment, among others.
The company also supplies low- and high-grade carbon industrial wire, wire for
welding and wire rope.
Company operations for agriculture are characterized by the development of superior
products and services adapted to the characteristics of each Brazilian region. Rural
producers are provided with high-tech steel that is durable and easy to use, guaranteeing
a higher level of efficiency for their work in the field.

In the nail production segment, the Group works tirelessly to identify and
develop new market niches, constantly diversifying the product line and
improving its quality.
Gerdau Specialty Steel Operation
Specialty steel is produced at Gerdau Aços Especiais Piratini, located in the city of
Charqueadas, state of Rio Grande do Sul.
This operation is focused primarily on manufacturing engineering steel, stainless steel,
and tool steel. Approximately 80 percent of the unit’s volume is destined for the autoparts
sector. To meet this industry’s demands for innovation, the company is constantly developing
new products in partnership with its customers while seeking technological enhancements.
Gerdau Açominas (Ouro Branco) Operation
Producer of billets, blooms, slabs, structural shapes and wire rod, the Ouro Branco (Minas
Gerais) mill primarily serves international markets, especially Asia, North America and
Europe.
The unit’s operations in Brazil are focused on civil construction and industry needs – especially
the steel engineering, rolling and fabrication segments.
The company’s structural shapes, produced with one of the most advanced rolling
technologies in the world, are manufactured primarily for civil construction, where they
are used in buildings, commercial and industrial warehouses, foundations and retaining
walls. They are also used in a variety of industries, especially the mechanical, naval
and oil segments. With a range of sizes – from 150 mm to 610 mm high – the shapes
represent a true revolution in the Brazilian construction process, measurably increasing
the flexibility of steel architectonic projects. Wire rod is used extensively in the metal
industry and is the raw material for wire production.
In line with the principles of eco-efficiency, the Ouro Branco mill also manufactures
carbochemical products. At Ouro Branco, coke gas that results from the coking
of coal is used as fuel and in the manufacture of aluminum, plastics, solvents,
paints, dies and synthetic fibers.
Support operations for steelmaking activities in Brazil
Comercial Gerdau
The largest distributor of steel in Brazil, Comercial Gerdau serves its customers
with over 60 branches that are distributed across the entire Brazilian territory.
It offers the complete line of steel products manufactured by the Gerdau
Group, as well as the flat steel produced by other manufacturers.
To better meet regional customer demands, Comercial Gerdau has
fabricated reinforcing steel facilities designed to serve the civil construction
sector, project by project, with material delivered to the construction
site according to schedule.
For customers in the flat steel segment, the unit provides plasma,
oxy and laser thermal cutting services in six units. It also supplies
products with precision-made cuts that are destined primarily for
industrial and metallic construction purposes.
Banco Gerdau
Founded in 1994, Banco Gerdau is a multifunction bank that operates
in the commercial, credit, financing and investment areas.
Its objective is to support the development of the Group’s business
operations as well as those of its customers and suppliers.
Gerdau Florestal
Gerdau Florestal is dedicated to forestation with pine and eucalyptus
trees. Currently, Gerdau Florestal has more than 130,000 planted
hectares across four Brazilian states.
The planting of eucalyptus trees guarantees renewable energy resources
for steel production and allows the company to remain committed to the
development of a sustainable economy. In addition, Gerdau Florestal is one
of the major suppliers of pine trees for the country’s timber industry. Gerdau
Florestal supplies timber from adult forests of up to 30 years of age, the foundation
for a top quality and highly profitable product.

Argentina, Chile and Uruguay
The units located in Chile, Argentina and Uruguay are focused on the domestic market
and provide products for the civil construction and metallurgy sectors.
Uniquely positioned in the market, the Gerdau Group’s steel mills in these countries
sell their products – rebar, wire rod, profiles, nails, meshes and wires – through
distribution channels that are adequate to the specific needs of each customer.
Four fabricated reinforcing steel facilities designed for civil construction meet
sector demands by offering next day delivery, allowing customers to save on
volume purchases while reducing waste and increasing project efficiency.
Canada and the United States
In North America, Gerdau Ameristeel is the second largest producer of rebar
and merchant bar. These products are designed for civil construction and
industry purposes and make up part of the long steel segment, which represents
87.3 percent of the company’s sales.
Gerdau special sections, high value-added products within the long steel segment,
are produced by Gerdau Ameristeel Manitoba, in Selkirk, Ontario, and make
up 5.8 percent of total shipments.
Flat steel accounts for 12.7 percent of sales and is produced by Gallatin Steel, a
company located in Kentucky, U.S.A. Gerdau Ameristeel currently owns 50 percent
of Gallatin Steel.
Gerdau Ameristeel also owns an extensive network of steel processing businesses:
29 fabricated reinforcing steel facilities, 10 downstream operations and two joint ventures
- one for the production of superlight I beams and a second joint venture including two
downstream operations for the production of elevator guides.

PEOPLE AND TEAMS
The Gerdau Group develops human resources
management practices that are aimed at preparing
professionals to become increasingly aware of their
strategic importance to the company. These practices
are guided by respect and by an emphasis on continued training
and the overcoming of challenges. The company’s practices
encourage the active participation of employees, the delegation
of work duties, involvement and total dedication, development
of an entrepreneurial spirit and the feeling of personal
responsibility for results in an environment characterized
by consistency between discourse and practice, transparency
and freedom of expression.
The development of Gerdau leaders is supported by a
leadership model designed to foster change through the
growth of people, promoting performance and attitudes in line
with best global practices. For that, these professionals are
trained in topics such as Gerdau culture, self-knowledge, human
resources management and coaching.
Safe work environment, one of the values of the Group, is a top
priority and is expressed in the company’s commitment to the quality
of life of its employees.

Air emission control system at Gerdau Barão de Cocais - state of Minas Gerais, Brazil
ENVIRONMENTAL
MANAGEMENT
The Gerdau Group continuously invests in improving its
eco-efficiency practices. Each year, the company implements the
latest technology to lower emission rates and optimize the use of natural
resources in the production process. These practices reflect the conviction
that the continued success of the company is related to its environmental
performance.
In all of its operations, the Gerdau Group employs international
environmental protection practices. The company complies with all legal
requirements, with a focus on sustainable development.
Gerdau’s steel mills use dust removal systems to efficiently filter gases
and solid particles and prevent the emission of pollutants into the air.
To preserve water resources, the mills use recirculation and closed circuit
water treatment systems. This equipment allows water reuse in the production
process and reduces the need for water collection. Currently, the Gerdau
Group’s industrial water recirculation rate is among the best in the world.
At Gerdau, rigorous management of residue, based on the principles of reducing,
recycling, reusing and storing waste, helps protect the soil. Based on these
practices, new applications are developed for residues to be employed in other
segments of the economy, minimizing natural resource consumption.

Gerdau Group’s booth at the Porto Alegre Book Fair – state of Rio Grande do Sul, Brazil
COMMUNITY
The Gerdau Group is committed to respecting
communities. After all, Gerdau’s culture of social responsibility
dates back to its very beginning. Even before the foundation of
the company, German immigrant João Gerdau participated in the
construction of Sociedade de Canto Esperança in 1875, the first
cultural organization of the Santo Ângelo settlement in the state
of Rio Grande do Sul, in Brazil.
As the years passed, Gerdau’s commitment to the community
has taken on new dimensions. The company now participates
in more than 100 projects in North and South America each year.
Through its social projects, Gerdau has made a solid commitment
to transferring knowledge. The Group’s involvement in this area
includes formal teaching, education for volunteer work,
entrepreneurship, total quality and research and scientific initiation.
Gerdau is also involved in initiatives concerning the arts, health,
and sports, in addition to its participation in community actions of
emergency relief.
Within the units, the company also encourages the direct participation
of its employees in social organizations. These individuals contribute
as volunteers and transfer their managerial know-how to the organizations,
promoting the development of a more just society.

GERDAU TIMELINE
1901 German immigrant
João Gerdau and his son Hugo
found the first Gerdau Group unit
the Pontas de Paris Nail Factory
in the city of Porto Alegre in the
state of Rio Grande do Sul.
1980 The Gerdau Group’s
process of internationalization
begins with the acquisition of the
Laisa steel mill in Uruguay.
1907 The business started by
João Gerdau is divided into two
independent companies: Hugo directs
the Pontas de Paris Nail Factory and
his brother, Walter, takes charge of
the furniture manufacturing business,
Móveis Gerdau, also located in Porto
Alegre. Later on, in 1930, the two
brothers take part in the creation of
the Manufacturing Industry Center of
Rio Grande do Sul (CINFA), which
later becomes the Federation of
Industries of Rio Grande do Sul
(FIERGS).
1989 International growth
advances into North America with
the acquisition of Courtice Steel,
currently Gerdau Ameristeel
Cambridge, located in the province
of Ontario (Canada). In 1995,
Gerdau strengthens its position in
Canada by acquiring a second
industrial plant, MRM Steel, in the
province of Manitoba.
1946 Curt Johannpeter, Hugo’s
son-in-law, leads Gerdau through a
decisive stage in the expansion of
the company’s business. In 1947,
Gerdau becomes a limited liability
company listed on the Porto Alegre
Stock Exchange.
1992 The Group acquires
control of the AZA steel mill in Chile,
currently Gerdau AZA. The Group
launches the GG 50 rebar, the first
in the country to bear a brand name
and a guarantee of quality.
1948 The Gerdau Group
enters the steelmaking business
with the Group’s Riograndense
steel mill in Porto Alegre. The
Riograndense mill pioneers the
technological concept of the
market mill, employing scrap metal
as raw material and focusing
operations on regional marketing
and sales, and more competitive
operating costs.
1998 In Argentina, Gerdau
becomes a shareholder of the Sipar
Aceros S.A. rolling mill.
1963 The Group develops its
culture of social responsibility,
creating the Gerdau Foundation,
with programs in the areas of
health, education, housing and
social assistance for employees
and their family members.
1999 Gerdau starts to
produce steel in the United States
with the acquisition of Ameristeel.
In the same year, the shares of
Gerdau S.A., one of the Group’s
public companies in Brazil, are
listed on the New York Stock
Exchange (NYSE).
1967 The company’s expansion
route reaches the southeastern region
of Brazil with the acquisition of the
São Judas Tadeu wire factory, a nail
and wire manufacturer in the state of
São Paulo.
2001 The Gerdau Group
completes 100 years of activity,
reaching the 8.4 million metric ton
mark for steel production capacity
and R$ 551 million in net income.
1969 Gerdau heads toward
the northeastern region of Brazil,
initiating steel production in the
state of Pernambuco with the
Açonorte mill.
2002 The Group merges its
North American operations with
Co-Steel. The move results in the
creation of Gerdau Ameristeel,
with 11 steel mills and 29 steel
service facilities.
CREDITS
Project coordination and writing: Gerdau Group Corporate Communications. Graphic design and print production supervision: SLM Ogilvy. Printing: Comunicação Impressa. Translation: Scientific Linguagem.
Photography: Gerdau Archive, Carlos Levitanus, Clóvis Dariano, Eneida Serrano, Flávio Luiz Russo, Leonid Streliaev, Marco Mendes, New York Stock Exchange and Rogério Neto Gomes.
CONTACT US
If you would like to learn more about the contents of this publication, please access our Website at www.gerdau.com.br or send an e-mail to gerdau@gerdau.com.br
Porto Alegre, June 2005.
1971 Construction of the
Cosigua mill begins in the city of
Rio de Janeiro, as part of a joint
venture with the German group
August Thyssen Huette. This is
also the year in which the Gerdau
Group enters the steel distribution
business with the first Comercial
Gerdau store in São Paulo.
2004 Year of expansion in the
Americas. The highlight in Brazil is
the construction of two new mills
and the expansion of the Ouro
Branco unit, in the state of Minas
Gerais. In Colombia, it becomes a
shareholder of the Diaco and Del
Pacífico mills. In North America,
Gerdau acquires the assets of
North Star Steel. Gerdau Ameristeel
shares are listed on the NYSE.

10,000
8,000
6,000
4,000
2,000
3,200
2,800
2,400
2,000
1,600
1,200
800
400
IMPRESSIVE RESULTS
Gross revenues
(US$ million)
591
1,097
Metalúrgica Gerdau S.A. consolidated figures Metalúrgica Gerdau S.A. consolidated figures
Shareholders’ equity
(US$ million)
2,064
Metalúrgica Gerdau S.A. consolidated figures
2,263
8,818
1984 1989 1994 1999 2004
279
515
1,346 1,236
Taxes, contributions
and social charges
US$ 1,544 billion
2,959
1984 1989 1994 1999 2004
Breakdown of
value-added 2004
(US$ 3.8 billion)
41%
Interest on borrowing
US$ 151 million
4%
22%
Metalúrgica Gerdau S.A. consolidated figures
1,500
1,200
900
600
300
14,000
12,000
10,000
24%
8,000
6,000
4,000
2,000
9%
Net income
(US$ million)
32
91
Metalúrgica Gerdau S.A. consolidated figures
201
1984 1989 1994 1999
1,556
81
Crude steel output
(1,000 metric tons)
2,443
3,344
5,066
13,448
1984 1989 1994 1999 2004
Dividends and interest
on capital stock
US$ 894 million
Salaries, benefits,
profit sharing and
training
US$ 823 million
Reinvestment
of profit
US$ 362 million
1,259
2004
Base 100
Dividends paid
Metalúrgica Gerdau S.A.
(US$ million)
180
153
360
160
320
140
280
120
240
100
200
80
160
60
30
120
40
20 2
7 7
80
40
800
700
600
500
400
300
200
100
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
1984 1989 1994 1999 2004
Performance of Gerdau
shares in Brazil
2000
2001 2002 2003 2004
Gerdau S.A. preferred shares
Metalúrgica Gerdau S.A. preferred shares
Ibovespa - São Paulo Stock Exchange composite index
Market Value of Metalúrgica Gerdau S.A.
and Gerdau S.A. in Brazil
(US$ million)
3,815
1,020
267
701
182
992
247
1,574
455
2000 2001 2002 2003 2004
Gerdau S.A. Metalúrgica Gerdau S.A.
Figures represent the average market value of each year
1,309
Base 100
400
300
200
100
5,000
4,000
3,000
2,000
1,000
Dividends paid
Gerdau S.A.
(US$ million)
5 8 8
302
1984 1989 1994 1999 2004
Performance of Gerdau
ADRs in the U.S.
2000
ADRs representing Gerdau S.A. preferred shares
Dow Jones composite index
Market Value of Gerdau S.A. (ADRs) in the U.S.
(US$ million)
1,373
2001 2002 2003 2004
895
1,166
2000 2001 2002 2003
Figures represent the average market value of each year
55
1,700
3,917
2004

www.gerdau.com.br