Corporate Brochure - Gerdau
Corporate Brochure - Gerdau
Corporate Brochure - Gerdau
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More than 100 years of sustainable development through steel.
COMPANY PROFILE<br />
An international steel company, the <strong>Gerdau</strong> Group began its<br />
course of expansion over a century ago. From Brazil, the company<br />
extended its operations into Uruguay, Canada, Chile, Argentina and the<br />
United States, becoming the largest long steel producer in the Americas.<br />
Currently, <strong>Gerdau</strong> steel is used in a wide variety of applications in the<br />
civil construction, industrial and agricultural sectors. It is found in bridges,<br />
overpasses, highways, hydroelectric power stations, buildings and<br />
homes. <strong>Gerdau</strong> products are used to manufacture agricultural machinery,<br />
metallic structures, automotive parts, telephone and electric power<br />
lines, among others. <strong>Gerdau</strong> steel is also used on farms as wire and<br />
fence accessories.<br />
To improve its efficiency, the <strong>Gerdau</strong> Group operates a network of<br />
steel mills, service centers, downstream operations and distribution<br />
channels strategically positioned near major consumer centers. The<br />
Group follows a philosophy of anticipating the needs of the market,<br />
introducing products and services that add value to the business of<br />
its customers. The company also develops innovative management<br />
technologies through continuous process improvement and the use<br />
of Total Quality Management tools.<br />
The Group has been present on the stock exchange for nearly 60 years<br />
and owns three public companies – <strong>Gerdau</strong> S.A., Metalúrgica <strong>Gerdau</strong><br />
S.A. and <strong>Gerdau</strong> Ameristeel Corporation, its North American subsidiary.<br />
Metalúrgica <strong>Gerdau</strong> S.A. and <strong>Gerdau</strong> S.A. are listed on the São Paulo<br />
Stock Exchange. The shares of <strong>Gerdau</strong> S.A. are also traded on the New<br />
York and Madrid exchanges, and <strong>Gerdau</strong> Ameristeel Corp. shares are traded<br />
on the Toronto Stock Exchange and the New York Stock Exchange.<br />
Guided by a vision of social responsibility, the <strong>Gerdau</strong> Group believes that its<br />
development is integrally tied to the evolution of the communities in which it<br />
operates. With this conviction, the company has created a business culture founded<br />
on strong ethics and respect for both people and the environment.
<strong>Gerdau</strong> Cosigua melt shop – state of Rio de Janeiro, Brazil<br />
VISION<br />
To be a world-class international steel company.<br />
MISSION<br />
<strong>Gerdau</strong> is an organization focused on the steel business, with<br />
a mission to satisfy customers’ needs and add value to<br />
shareholders, committed to the fulfillment of people and to the<br />
sustainable development of society.<br />
CORPORATE<br />
VALUES<br />
The company’s corporate values are directed at all the publics served by the <strong>Gerdau</strong><br />
Group: customers, employees, shareholders, suppliers and the community.<br />
These values are adapted to the cultures of the many countries where<br />
<strong>Gerdau</strong> operates through specific practices that are relevant to each region.<br />
Satisfied CUSTOMERS<br />
Accomplished PEOPLE<br />
SAFE work environment<br />
QUALITY in everything we do<br />
SOLIDITY and SECURITY<br />
COMMITMENT to all stakeholders<br />
PROFIT as a measure of performance
<strong>Gerdau</strong> Ameristeel Jackson scrap yard - state of Tennessee, U.S.A.<br />
GERDAU STEEL:<br />
BUILDING A<br />
SUSTAINABLE<br />
FUTURE<br />
Steel is the most recycled product in the world.<br />
Old home appliances, vehicle parts, industrial by-products and<br />
steel cans, in short, objects that are discarded by society are<br />
transformed into raw material for steelmaking.<br />
The <strong>Gerdau</strong> Group is one of the largest recyclers in the<br />
Americas, using scrap metal as a primary raw material, along<br />
with pig iron and sponge iron. Each year, <strong>Gerdau</strong> reuses nearly<br />
11 million metric tons of scrap. As a result, the company<br />
measurably optimizes its processes, reduces its energy<br />
consumption and enhances productivity, with increasingly<br />
competitive operating costs.<br />
Recycling scrap helps cleanup our cities and generates thousands<br />
of jobs in the communities in which the <strong>Gerdau</strong> Group operates.<br />
The social dimension of steelmaking is also reflected in the final<br />
products, which are manufactured in the most economic and<br />
environmentally friendly way and are employed among others in the<br />
construction of homes, bridges, automobiles, hospitals, roads and<br />
transmission towers to improve the quality of life.
Iron ore receiving area at the <strong>Gerdau</strong> Usiba maritime terminal – state of Bahia, Brazil<br />
STRATEGIC VISION<br />
Growth together with profit: this is the <strong>Gerdau</strong> Group’s<br />
foundation for success. Throughout its history, the company has<br />
pursued a strategy of continuous expansion. <strong>Gerdau</strong> is currently the 13th<br />
largest steel producer in the world, according to 2004 data from Metal<br />
Bulletin.<br />
The company seeks to provide return to its shareholders through the<br />
efficiency of its operations, which have earned analyst recognition. The<br />
company has paid dividends every year since 1947, when it was first<br />
listed on the Porto Alegre Stock Exchange. The policy of growing by<br />
adding value to company shareholders reflects the vision that guides<br />
the future of the <strong>Gerdau</strong> Group: to be a world-class international steel<br />
company. This vision, however, is not restricted to expanding the company’s<br />
geographic presence; it also involves the company’s positioning as a<br />
global player on all levels as it demonstrates both exceptional performance<br />
and superior quality to meet customer demands.<br />
At the same time, the <strong>Gerdau</strong> Group follows the principles of sustainable<br />
economic development, a fact that is reflected in its history of strong values<br />
and integrity. In all of its activities, the <strong>Gerdau</strong> Group is committed to balancing<br />
short- and long-term economic, social and environmental demands.
SALES AND MARKETS<br />
The <strong>Gerdau</strong> Group, which is structured into five steelmaking operations,<br />
has important competitive commercial advantages. Its business activities<br />
are decentralized by product line and/or geographic location of the unit.<br />
This decentralized structure allows the company to anticipate market needs and<br />
trends. Customers are served by a highly qualified sales force that works to<br />
constantly monitor satisfaction levels through systematic surveys that help<br />
guarantee the continued preference for <strong>Gerdau</strong> products. Based on the results<br />
of these surveys, the sales and operational teams work with customers to<br />
improve products, develop new solutions that increase efficiency, and form<br />
lasting partnerships.<br />
Brazil<br />
<strong>Gerdau</strong> Açominas S.A., which is responsible for <strong>Gerdau</strong>’s steelmaking activities<br />
in Brazil, comprises three distinct operations: <strong>Gerdau</strong> Long Steel, <strong>Gerdau</strong><br />
Specialty Steel and <strong>Gerdau</strong> Açominas – Ouro Branco.<br />
<strong>Gerdau</strong> Long Steel Operation<br />
The sales of long steel in Brazil are structured in business areas that target<br />
specific market segments. Long steel is produced in mills located in the<br />
Northeast, Southeast and South regions of Brazil and processed in fabricated<br />
reinforcing steel facilities and downstream operations.<br />
For civil construction, the company offers solutions that translate into increased<br />
competitiveness. In terms of industrial applications, <strong>Gerdau</strong> provides the largest<br />
and most comprehensive line of products for automotive parts, farming machinery<br />
and accessories, metallic structures, tools and locksmith equipment, among others.<br />
The company also supplies low- and high-grade carbon industrial wire, wire for<br />
welding and wire rope.<br />
Company operations for agriculture are characterized by the development of superior<br />
products and services adapted to the characteristics of each Brazilian region. Rural<br />
producers are provided with high-tech steel that is durable and easy to use, guaranteeing<br />
a higher level of efficiency for their work in the field.
In the nail production segment, the Group works tirelessly to identify and<br />
develop new market niches, constantly diversifying the product line and<br />
improving its quality.<br />
<strong>Gerdau</strong> Specialty Steel Operation<br />
Specialty steel is produced at <strong>Gerdau</strong> Aços Especiais Piratini, located in the city of<br />
Charqueadas, state of Rio Grande do Sul.<br />
This operation is focused primarily on manufacturing engineering steel, stainless steel,<br />
and tool steel. Approximately 80 percent of the unit’s volume is destined for the autoparts<br />
sector. To meet this industry’s demands for innovation, the company is constantly developing<br />
new products in partnership with its customers while seeking technological enhancements.<br />
<strong>Gerdau</strong> Açominas (Ouro Branco) Operation<br />
Producer of billets, blooms, slabs, structural shapes and wire rod, the Ouro Branco (Minas<br />
Gerais) mill primarily serves international markets, especially Asia, North America and<br />
Europe.<br />
The unit’s operations in Brazil are focused on civil construction and industry needs – especially<br />
the steel engineering, rolling and fabrication segments.<br />
The company’s structural shapes, produced with one of the most advanced rolling<br />
technologies in the world, are manufactured primarily for civil construction, where they<br />
are used in buildings, commercial and industrial warehouses, foundations and retaining<br />
walls. They are also used in a variety of industries, especially the mechanical, naval<br />
and oil segments. With a range of sizes – from 150 mm to 610 mm high – the shapes<br />
represent a true revolution in the Brazilian construction process, measurably increasing<br />
the flexibility of steel architectonic projects. Wire rod is used extensively in the metal<br />
industry and is the raw material for wire production.<br />
In line with the principles of eco-efficiency, the Ouro Branco mill also manufactures<br />
carbochemical products. At Ouro Branco, coke gas that results from the coking<br />
of coal is used as fuel and in the manufacture of aluminum, plastics, solvents,<br />
paints, dies and synthetic fibers.<br />
Support operations for steelmaking activities in Brazil<br />
Comercial <strong>Gerdau</strong><br />
The largest distributor of steel in Brazil, Comercial <strong>Gerdau</strong> serves its customers<br />
with over 60 branches that are distributed across the entire Brazilian territory.<br />
It offers the complete line of steel products manufactured by the <strong>Gerdau</strong><br />
Group, as well as the flat steel produced by other manufacturers.<br />
To better meet regional customer demands, Comercial <strong>Gerdau</strong> has<br />
fabricated reinforcing steel facilities designed to serve the civil construction<br />
sector, project by project, with material delivered to the construction<br />
site according to schedule.<br />
For customers in the flat steel segment, the unit provides plasma,<br />
oxy and laser thermal cutting services in six units. It also supplies<br />
products with precision-made cuts that are destined primarily for<br />
industrial and metallic construction purposes.<br />
Banco <strong>Gerdau</strong><br />
Founded in 1994, Banco <strong>Gerdau</strong> is a multifunction bank that operates<br />
in the commercial, credit, financing and investment areas.<br />
Its objective is to support the development of the Group’s business<br />
operations as well as those of its customers and suppliers.<br />
<strong>Gerdau</strong> Florestal<br />
<strong>Gerdau</strong> Florestal is dedicated to forestation with pine and eucalyptus<br />
trees. Currently, <strong>Gerdau</strong> Florestal has more than 130,000 planted<br />
hectares across four Brazilian states.<br />
The planting of eucalyptus trees guarantees renewable energy resources<br />
for steel production and allows the company to remain committed to the<br />
development of a sustainable economy. In addition, <strong>Gerdau</strong> Florestal is one<br />
of the major suppliers of pine trees for the country’s timber industry. <strong>Gerdau</strong><br />
Florestal supplies timber from adult forests of up to 30 years of age, the foundation<br />
for a top quality and highly profitable product.
Argentina, Chile and Uruguay<br />
The units located in Chile, Argentina and Uruguay are focused on the domestic market<br />
and provide products for the civil construction and metallurgy sectors.<br />
Uniquely positioned in the market, the <strong>Gerdau</strong> Group’s steel mills in these countries<br />
sell their products – rebar, wire rod, profiles, nails, meshes and wires – through<br />
distribution channels that are adequate to the specific needs of each customer.<br />
Four fabricated reinforcing steel facilities designed for civil construction meet<br />
sector demands by offering next day delivery, allowing customers to save on<br />
volume purchases while reducing waste and increasing project efficiency.<br />
Canada and the United States<br />
In North America, <strong>Gerdau</strong> Ameristeel is the second largest producer of rebar<br />
and merchant bar. These products are designed for civil construction and<br />
industry purposes and make up part of the long steel segment, which represents<br />
87.3 percent of the company’s sales.<br />
<strong>Gerdau</strong> special sections, high value-added products within the long steel segment,<br />
are produced by <strong>Gerdau</strong> Ameristeel Manitoba, in Selkirk, Ontario, and make<br />
up 5.8 percent of total shipments.<br />
Flat steel accounts for 12.7 percent of sales and is produced by Gallatin Steel, a<br />
company located in Kentucky, U.S.A. <strong>Gerdau</strong> Ameristeel currently owns 50 percent<br />
of Gallatin Steel.<br />
<strong>Gerdau</strong> Ameristeel also owns an extensive network of steel processing businesses:<br />
29 fabricated reinforcing steel facilities, 10 downstream operations and two joint ventures<br />
- one for the production of superlight I beams and a second joint venture including two<br />
downstream operations for the production of elevator guides.
PEOPLE AND TEAMS<br />
The <strong>Gerdau</strong> Group develops human resources<br />
management practices that are aimed at preparing<br />
professionals to become increasingly aware of their<br />
strategic importance to the company. These practices<br />
are guided by respect and by an emphasis on continued training<br />
and the overcoming of challenges. The company’s practices<br />
encourage the active participation of employees, the delegation<br />
of work duties, involvement and total dedication, development<br />
of an entrepreneurial spirit and the feeling of personal<br />
responsibility for results in an environment characterized<br />
by consistency between discourse and practice, transparency<br />
and freedom of expression.<br />
The development of <strong>Gerdau</strong> leaders is supported by a<br />
leadership model designed to foster change through the<br />
growth of people, promoting performance and attitudes in line<br />
with best global practices. For that, these professionals are<br />
trained in topics such as <strong>Gerdau</strong> culture, self-knowledge, human<br />
resources management and coaching.<br />
Safe work environment, one of the values of the Group, is a top<br />
priority and is expressed in the company’s commitment to the quality<br />
of life of its employees.
Air emission control system at <strong>Gerdau</strong> Barão de Cocais - state of Minas Gerais, Brazil<br />
ENVIRONMENTAL<br />
MANAGEMENT<br />
The <strong>Gerdau</strong> Group continuously invests in improving its<br />
eco-efficiency practices. Each year, the company implements the<br />
latest technology to lower emission rates and optimize the use of natural<br />
resources in the production process. These practices reflect the conviction<br />
that the continued success of the company is related to its environmental<br />
performance.<br />
In all of its operations, the <strong>Gerdau</strong> Group employs international<br />
environmental protection practices. The company complies with all legal<br />
requirements, with a focus on sustainable development.<br />
<strong>Gerdau</strong>’s steel mills use dust removal systems to efficiently filter gases<br />
and solid particles and prevent the emission of pollutants into the air.<br />
To preserve water resources, the mills use recirculation and closed circuit<br />
water treatment systems. This equipment allows water reuse in the production<br />
process and reduces the need for water collection. Currently, the <strong>Gerdau</strong><br />
Group’s industrial water recirculation rate is among the best in the world.<br />
At <strong>Gerdau</strong>, rigorous management of residue, based on the principles of reducing,<br />
recycling, reusing and storing waste, helps protect the soil. Based on these<br />
practices, new applications are developed for residues to be employed in other<br />
segments of the economy, minimizing natural resource consumption.
<strong>Gerdau</strong> Group’s booth at the Porto Alegre Book Fair – state of Rio Grande do Sul, Brazil<br />
COMMUNITY<br />
The <strong>Gerdau</strong> Group is committed to respecting<br />
communities. After all, <strong>Gerdau</strong>’s culture of social responsibility<br />
dates back to its very beginning. Even before the foundation of<br />
the company, German immigrant João <strong>Gerdau</strong> participated in the<br />
construction of Sociedade de Canto Esperança in 1875, the first<br />
cultural organization of the Santo Ângelo settlement in the state<br />
of Rio Grande do Sul, in Brazil.<br />
As the years passed, <strong>Gerdau</strong>’s commitment to the community<br />
has taken on new dimensions. The company now participates<br />
in more than 100 projects in North and South America each year.<br />
Through its social projects, <strong>Gerdau</strong> has made a solid commitment<br />
to transferring knowledge. The Group’s involvement in this area<br />
includes formal teaching, education for volunteer work,<br />
entrepreneurship, total quality and research and scientific initiation.<br />
<strong>Gerdau</strong> is also involved in initiatives concerning the arts, health,<br />
and sports, in addition to its participation in community actions of<br />
emergency relief.<br />
Within the units, the company also encourages the direct participation<br />
of its employees in social organizations. These individuals contribute<br />
as volunteers and transfer their managerial know-how to the organizations,<br />
promoting the development of a more just society.
GERDAU TIMELINE<br />
1901 German immigrant<br />
João <strong>Gerdau</strong> and his son Hugo<br />
found the first <strong>Gerdau</strong> Group unit<br />
the Pontas de Paris Nail Factory<br />
in the city of Porto Alegre in the<br />
state of Rio Grande do Sul.<br />
1980 The <strong>Gerdau</strong> Group’s<br />
process of internationalization<br />
begins with the acquisition of the<br />
Laisa steel mill in Uruguay.<br />
1907 The business started by<br />
João <strong>Gerdau</strong> is divided into two<br />
independent companies: Hugo directs<br />
the Pontas de Paris Nail Factory and<br />
his brother, Walter, takes charge of<br />
the furniture manufacturing business,<br />
Móveis <strong>Gerdau</strong>, also located in Porto<br />
Alegre. Later on, in 1930, the two<br />
brothers take part in the creation of<br />
the Manufacturing Industry Center of<br />
Rio Grande do Sul (CINFA), which<br />
later becomes the Federation of<br />
Industries of Rio Grande do Sul<br />
(FIERGS).<br />
1989 International growth<br />
advances into North America with<br />
the acquisition of Courtice Steel,<br />
currently <strong>Gerdau</strong> Ameristeel<br />
Cambridge, located in the province<br />
of Ontario (Canada). In 1995,<br />
<strong>Gerdau</strong> strengthens its position in<br />
Canada by acquiring a second<br />
industrial plant, MRM Steel, in the<br />
province of Manitoba.<br />
1946 Curt Johannpeter, Hugo’s<br />
son-in-law, leads <strong>Gerdau</strong> through a<br />
decisive stage in the expansion of<br />
the company’s business. In 1947,<br />
<strong>Gerdau</strong> becomes a limited liability<br />
company listed on the Porto Alegre<br />
Stock Exchange.<br />
1992 The Group acquires<br />
control of the AZA steel mill in Chile,<br />
currently <strong>Gerdau</strong> AZA. The Group<br />
launches the GG 50 rebar, the first<br />
in the country to bear a brand name<br />
and a guarantee of quality.<br />
1948 The <strong>Gerdau</strong> Group<br />
enters the steelmaking business<br />
with the Group’s Riograndense<br />
steel mill in Porto Alegre. The<br />
Riograndense mill pioneers the<br />
technological concept of the<br />
market mill, employing scrap metal<br />
as raw material and focusing<br />
operations on regional marketing<br />
and sales, and more competitive<br />
operating costs.<br />
1998 In Argentina, <strong>Gerdau</strong><br />
becomes a shareholder of the Sipar<br />
Aceros S.A. rolling mill.<br />
1963 The Group develops its<br />
culture of social responsibility,<br />
creating the <strong>Gerdau</strong> Foundation,<br />
with programs in the areas of<br />
health, education, housing and<br />
social assistance for employees<br />
and their family members.<br />
1999 <strong>Gerdau</strong> starts to<br />
produce steel in the United States<br />
with the acquisition of Ameristeel.<br />
In the same year, the shares of<br />
<strong>Gerdau</strong> S.A., one of the Group’s<br />
public companies in Brazil, are<br />
listed on the New York Stock<br />
Exchange (NYSE).<br />
1967 The company’s expansion<br />
route reaches the southeastern region<br />
of Brazil with the acquisition of the<br />
São Judas Tadeu wire factory, a nail<br />
and wire manufacturer in the state of<br />
São Paulo.<br />
2001 The <strong>Gerdau</strong> Group<br />
completes 100 years of activity,<br />
reaching the 8.4 million metric ton<br />
mark for steel production capacity<br />
and R$ 551 million in net income.<br />
1969 <strong>Gerdau</strong> heads toward<br />
the northeastern region of Brazil,<br />
initiating steel production in the<br />
state of Pernambuco with the<br />
Açonorte mill.<br />
2002 The Group merges its<br />
North American operations with<br />
Co-Steel. The move results in the<br />
creation of <strong>Gerdau</strong> Ameristeel,<br />
with 11 steel mills and 29 steel<br />
service facilities.<br />
CREDITS<br />
Project coordination and writing: <strong>Gerdau</strong> Group <strong>Corporate</strong> Communications. Graphic design and print production supervision: SLM Ogilvy. Printing: Comunicação Impressa. Translation: Scientific Linguagem.<br />
Photography: <strong>Gerdau</strong> Archive, Carlos Levitanus, Clóvis Dariano, Eneida Serrano, Flávio Luiz Russo, Leonid Streliaev, Marco Mendes, New York Stock Exchange and Rogério Neto Gomes.<br />
CONTACT US<br />
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<br />
Porto Alegre, June 2005.<br />
1971 Construction of the<br />
Cosigua mill begins in the city of<br />
Rio de Janeiro, as part of a joint<br />
venture with the German group<br />
August Thyssen Huette. This is<br />
also the year in which the <strong>Gerdau</strong><br />
Group enters the steel distribution<br />
business with the first Comercial<br />
<strong>Gerdau</strong> store in São Paulo.<br />
2004 Year of expansion in the<br />
Americas. The highlight in Brazil is<br />
the construction of two new mills<br />
and the expansion of the Ouro<br />
Branco unit, in the state of Minas<br />
Gerais. In Colombia, it becomes a<br />
shareholder of the Diaco and Del<br />
Pacífico mills. In North America,<br />
<strong>Gerdau</strong> acquires the assets of<br />
North Star Steel. <strong>Gerdau</strong> Ameristeel<br />
shares are listed on the NYSE.
10,000<br />
8,000<br />
6,000<br />
4,000<br />
2,000<br />
3,200<br />
2,800<br />
2,400<br />
2,000<br />
1,600<br />
1,200<br />
800<br />
400<br />
IMPRESSIVE RESULTS<br />
Gross revenues<br />
(US$ million)<br />
591<br />
1,097<br />
Metalúrgica <strong>Gerdau</strong> S.A. consolidated figures Metalúrgica <strong>Gerdau</strong> S.A. consolidated figures<br />
Shareholders’ equity<br />
(US$ million)<br />
2,064<br />
Metalúrgica <strong>Gerdau</strong> S.A. consolidated figures<br />
2,263<br />
8,818<br />
1984 1989 1994 1999 2004<br />
279<br />
515<br />
1,346 1,236<br />
Taxes, contributions<br />
and social charges<br />
US$ 1,544 billion<br />
2,959<br />
1984 1989 1994 1999 2004<br />
Breakdown of<br />
value-added 2004<br />
(US$ 3.8 billion)<br />
41%<br />
Interest on borrowing<br />
US$ 151 million<br />
4%<br />
22%<br />
Metalúrgica <strong>Gerdau</strong> S.A. consolidated figures<br />
1,500<br />
1,200<br />
900<br />
600<br />
300<br />
14,000<br />
12,000<br />
10,000<br />
24%<br />
8,000<br />
6,000<br />
4,000<br />
2,000<br />
9%<br />
Net income<br />
(US$ million)<br />
32<br />
91<br />
Metalúrgica <strong>Gerdau</strong> S.A. consolidated figures<br />
201<br />
1984 1989 1994 1999<br />
1,556<br />
81<br />
Crude steel output<br />
(1,000 metric tons)<br />
2,443<br />
3,344<br />
5,066<br />
13,448<br />
1984 1989 1994 1999 2004<br />
Dividends and interest<br />
on capital stock<br />
US$ 894 million<br />
Salaries, benefits,<br />
profit sharing and<br />
training<br />
US$ 823 million<br />
Reinvestment<br />
of profit<br />
US$ 362 million<br />
1,259<br />
2004<br />
Base 100<br />
Dividends paid<br />
Metalúrgica <strong>Gerdau</strong> S.A.<br />
(US$ million)<br />
180<br />
153<br />
360<br />
160<br />
320<br />
140<br />
280<br />
120<br />
240<br />
100<br />
200<br />
80<br />
160<br />
60<br />
30<br />
120<br />
40<br />
20 2<br />
7 7<br />
80<br />
40<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
4,000<br />
3,500<br />
3,000<br />
2,500<br />
2,000<br />
1,500<br />
1,000<br />
500<br />
1984 1989 1994 1999 2004<br />
Performance of <strong>Gerdau</strong><br />
shares in Brazil<br />
2000<br />
2001 2002 2003 2004<br />
<strong>Gerdau</strong> S.A. preferred shares<br />
Metalúrgica <strong>Gerdau</strong> S.A. preferred shares<br />
Ibovespa - São Paulo Stock Exchange composite index<br />
Market Value of Metalúrgica <strong>Gerdau</strong> S.A.<br />
and <strong>Gerdau</strong> S.A. in Brazil<br />
(US$ million)<br />
3,815<br />
1,020<br />
267<br />
701<br />
182<br />
992<br />
247<br />
1,574<br />
455<br />
2000 2001 2002 2003 2004<br />
<strong>Gerdau</strong> S.A. Metalúrgica <strong>Gerdau</strong> S.A.<br />
Figures represent the average market value of each year<br />
1,309<br />
Base 100<br />
400<br />
300<br />
200<br />
100<br />
5,000<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
Dividends paid<br />
<strong>Gerdau</strong> S.A.<br />
(US$ million)<br />
5 8 8<br />
302<br />
1984 1989 1994 1999 2004<br />
Performance of <strong>Gerdau</strong><br />
ADRs in the U.S.<br />
2000<br />
ADRs representing <strong>Gerdau</strong> S.A. preferred shares<br />
Dow Jones composite index<br />
Market Value of <strong>Gerdau</strong> S.A. (ADRs) in the U.S.<br />
(US$ million)<br />
1,373<br />
2001 2002 2003 2004<br />
895<br />
1,166<br />
2000 2001 2002 2003<br />
Figures represent the average market value of each year<br />
55<br />
1,700<br />
3,917<br />
2004
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