v foro latibex - gerdau · 2003. 12. 5. · 7 7 ukraine 27,5 25,2 8,8% 8 8 india 23,5 21,3 10,6% 9...
TRANSCRIPT
V Foro LATIBEX
Latinoamerica en Euros
Madrid, November 19-21, 2003
Steel Sector
Gerdau S.A. Consolidated
Capital Market
9M2003 9M2002 Var. %
1 1 China 159,6 131,2 21,6%
2 2 Japan 82,5 79,7 3,5%
3 3 United States 68,1 69,0 -1,3%
4 4 Russia 45,9 43,7 5,1%
5 5 Korea 34,2 33,6 1,8%
6 6 Germany 33,5 33,8 -0,9%
7 7 Ukraine 27,5 25,2 8,8%
8 8 India 23,5 21,3 10,6%
9 9 Brazil 23,4 21,8 7,3%
10 10 Italy 19,9 19,3 3,0%
Others 182,9 176,1 3,9%
TOTAL 700,9 654,7 7,1%
World ProductionCrude Steel
In 1,000 tons
Sources: IISI and MEPS
In 2002, the
world produced
887 million tons
of steel.
Brazil
contributed
with 3.4% of
this tonnage.
The forecast for
2003 indicates
a world output
of 952 million tons
and 31 million in
Brazil.
03
Largest ProducersCrude Steel 2002
Source: IISI
In million tons
Production
1 Arcelor 44.0
2 LNM Group 34.8
3 Nippon Steel 29.8
4 POSCO 28.1
5 Shangai Baosteel 19.1
6 Corus 16.8
7 Thyssen Krupp 16.4
8 NKK 15.2
Company
(LUX)
(ENG)
(JAP)
(KOR)
(CHI)
(ENG)
(GER)
(JAP) 9 Riva 15.0
10 US Steel 14.4
11 Kawasaki 13.7
12 Nucor 12.4
13 Sumitomo 11.8
14 Gerdau 11.5
15 SAIL 11.4
Company Production
(ITA)
(USA)
(JAP)
(USA)
(JAP)
(BRA)
(ENG)04
World EconomyGDP growth – 2000 to 2004E
-20
-10
0
10
20
30
40
2000 2001 2002 2003E 2004E
27% Ukraine 46 51 11%
10% Canada 860 917 7%
2000: base zero
Source: IMF
China: GDP growth may put pressure on world prices for inputs and finished steel products.
CIS and Baltic Countries: accelerated growth between 2000-04E. Greater domestic consumption may reduce subsidized steel exports.
Brazil: positive outlook. The IMF estimates a 3% growth in 2004.
05
34% China 1,372 1,497 9%
22% Russia 429 505 18%
9% USA 10,875 11,437 5% 8% Brazil 507 540 7%
2000-2004ELocal currency
2003EUS$ bi
2004EUS$ bi
Var.%
US$/ton
100
150
200
250
2
4
6
8
10
12
350
300
50
million tons14
Jan 01 Jun 01 Jan 02 Jun 02 Jan 03 Jun 03
The increase in steel production in China puts pressure on costs of main inputs in the international market.
The increase in apparent consumption in long products in China affects positively the prices of these steel products, such as merchants and rebar, in the international market.
Merchants International Prices
Rebar International Prices
Long Steel Apparent Consumption in China
Sources: MEPS , WSD, IISI, USGS and Metal Bulletin.
China
Scrap export price (Rotterdam - FOB)
Scrap price in USA
Long Steel production in China
MONTHLY CONSUMPTION X LONG STEEL PRICES
STEEL MONTHLY OUTPUT X SCRAP PRICES
US$/tonmillion tons
15
10
520
40
60
80
100
12020
25
30
140
160
180
Jan 01 Jun 01 Jan 02 Jun 02 Jan 03 Jun 0306
13.8
2.7
3.7
10.1
0.1
2.7
2001 2008
CIS and Baltic CountriesLONG STEEL APPARENT CONSUMPTION 2001-2008E
Russia Ukraine Others
Sources: WSD and BCG Analysis
Between 2001 and 2008E, apparent consumption should increase by 56.6% in the CIS and Baltic Countries reducing subsidized exports.
LONG STEEL PRODUCTION 2001-2008E
Russia Ukraine Others14.0
11.6
1.9
13.1
12.3
1.7
2001 2008
Output is not expected to follow the increase in consumption, generating the need to import steel products affecting positively international prices.
In million tons
In million tons
12.9
20.2
27.527.1
07
North America
Sources: MEPS/ American Metal Market
Shipments should be at the same levels of the last 12 months. Supply and demand remain in balance. Section 201 helped
curb imports.
REBAR
Shipments should be
in the same range of
2002. Imports and
exports remain
unchanged at the
same levels of the
lasts 12 months.
MERCHANTS
LONG STEEL AVERAGE PRICES – LAST 12 MONTHS
SCRAP
Scrap prices increased almost 25% during 3Q2003 due to increases in internal and external demand.
Exports continue to grow and scrap prices delivered to the Asian markets vary from US$ 180 to US$ 200 per ton.
PRICESUS$/TON
9/036/031/039/026/021/029/01
240
260
280
300
320
PRICESUS$/TON
9/036/031/039/026/021/029/01
250
275
300
325
350
200320022001200060
70
80
90
100
110
120
130
USA/Chicago – US$/ton
08
Belgo/CST/Acesita(Arcelor) - 36%2,735 thousand tons
Gerdau/Açominas – 48%3,687 thousand tons
Barra Mansa - 5%367 thousand tons
Aços Villares - 5%421 thousand tons
V&M do Brasil - 6%442 thousand tons
Brazilian Steel Sector2002
LONG STEEL PRODUCERS IN BRAZIL
Source: IBS
CRUDE STEEL PRODUCERS IN BRAZIL
Usiminas/Cosipa
Gerdau/Açominas
Belgo/CST/Acesita (Arcelor)
CSN
Aços Villares
V&M do Brasil
Barra Mansa
8,447
5,999
8,439
5,107
700
500
387
In thousand tons 9M2003
6,486
5,158
6,443
3,968
598
409
299
9M2003
Gerdau/ Açominas 2,876
Belgo/CST/Acesita (Arcelor) 2,002
V&M do Brasil 342
Aços Villares 350
Barra Mansa 278
In thousand tons
TOTAL 5,848
09
Long Steel Exports in Brazil
Source: IBS
In thousand tons
Exports Internal Sales
Domestic Sales2003/2001
-11%
Exports2003/2001
+85%
Monthly Average 84.4 thousand
tons
2001 2002 9M2003
Monthly Average 99.2 thousand tons
Monthly Average 156,3 thousand
tons
Monthly Average 517.2 thousand tons
Monthly Average 528.2 thousand tons
Monthly Average 461.5 thousand tons
100
200
300
400
500
600
700
Long steel exports
may overcome
the 2.0 mm ton in 2003
(+72%)
10
Brazilian Steel Competitiveness
Source: IBS
PRICE INCREASES FOR INPUTS FOR BRAZILIAN STEEL PRODUCTION IN 2002
RAW MATERIALIncrease
(%)
Iron Ore 40.8%
Metallurgic Coal (imported) 88.0%
Coke 128.0%
Aço-carbono' scrap 158.0%
Pig Iron 95.8%
Ferro-chromium 42.9%
Ferro-silico 32.4%
Ferro-manganese 39.5%
Nickel 112.1%
Molybdenum trioxide 153.3%
Casting powder 77.9%
Carburantes 61.9%
Electrodes 55.3%
Fuel Oil 94.0%
GLP 116.0%
EBITDA MARGIN - 2002
Brazil Asia** excludes Japan
Japan US North American
World Total
%
5
10
15
20
2530
35
40
In spite of increases in input prices, Brazil is the country which presents the highest operating margin in the world.
Mills operate with up-to-date technology due to a continuous investment program.
11
35%
30 31 29
33 33 34 34 35
40 40
3028 302826 25 25 26 26 25
28 27
31
2423222119181918161617151313
0
10
20
30
40
50
1994 200795 96 97 98 99 00 01 02 03 04 05 06
In million tons
forecastrealized
Steel Sector Investments in Brazil
Source: IBS
PAYMENT SCHEDULE
2003 2004 2005 2006 2007 TOTAL
FLAT ROLLED STEEL 613.4 694.0 854.4 351.5 117.9 2,631.3
LONG STEEL 290.3 276.2 281.2 185.9 180.1 1,213.8
SPECIAL SECTION 72.8 58.5 50.4 38.1 32.3 252.1
TOTAL 976.5 1,028.8 1,186.0 575.4 330.4 4,097.1
In US$ million
Apparent Consumption in Brazil
Installed Capacity
Crude Steel Production
CAPACITY X OUTPUT X APPARENT CONSUMPTION
12
Source: IBS
Forecasts2004
estimatedVar. %
2004/2003
32,470 2.9%23,009 9.2%14,280 9.0%
8,729 9.5%7,350 -12.2%
16,430 10.5%9,650 7.1%6,780 15.7%
12,750 -6.5%3.5 -10.3%
800 33.3%0.6 20.0%
17,220 11.3%10,140 8.0%
7,080 16.3%
38.6 12.2%
Output (thousand tons)Crude SteelRolled Products
Flat Rolled ProductsLong Steel
Semi-finished for sales
Internal Sales* (thousand tons)Flat Rolled ProductsLong Steel
Comércio Exterior (thousand tons)Exports (103t)
(US$ billion)Imports (103t)
(US$ billion)
Apparent Consumption * (thousand tons)
Flat Rolled ProductsLong Steel
Gross Sales (R$ billion)
2003 estimated
Var. % 2003/2002
31,555 6.6%21,072 10.7%13,103 14.9%
7,969 4.5%8,374 -5.3%
14,874 -6.0%9,014 -0.8%5,860 -13.0%
13,630 16.6%3.9 34%
600 -10.7%0.5
15,474 -6.1%9,386 -1.4%6,088 -12.6%
34.4 30.3%
* Excludes semi-finished products shipped to the Steel Sector13
Steel Sector
Gerdau S.A. Consolidated
Capital Markets
Main Products
BILLETSMERCHANTS AND STRUCTURAL REBARS FABRICATED STEEL
STRUCTURAL SHAPES WIRE-ROD WIRES NAILS
15
Gerdau S.A 4,374 4,071
Açominas 3,000 7402,610
South 510 643America
North 6,567 6,187America
TOTAL 14,451 14,251
Billets, merchant bars, rebars, wire rod,
drawn products, welded meshes, nails,
downstream products and fabricated steel
products.
Installed Capacity
16
Billets, merchant bars, rebars, wire rod,
drawn products, welded wire meshes, nails,
downstream products, fabricated steel
products and specialty steel.
Billets, merchant bars, rebars,slabs, blooms, profiles and structurals.
Billets, merchant bars, rebars and wire rod.
CRUDE STEEL
ROLLED PRODUCTS
Output Evolution
17
AVERAGE GROWTH RATE
1980 - 2003Crude Steel 10.2% year
Rolled Products 9.2% year
14th largest world steel producer according to the IISI and the bestranked Brazilian company.
Largest long steel producer in the Americas.
CRUDE STEEL12 million ton
ROLLED PRODUCTS9 million ton
AzaChile1992
MRMCanada1995
Part. Açominas
1997AmeriSteel
USA1999
CearenseGuaíra1982
LaisaUruguay
1981
Hime1985
Barão de Cocais1988
CourticeCanada1989
Usiba1989
Piratini1992
Pains1994
Sipsa Argentina
1997
Açominas(control)
2002
Co-Steel2002
2003*1980 1984 199619921988 2000* 9 months annualized
Part. Sipar
Argentina1998
Geographical Distribution
18
(2) Rolling mill, 38% owned JV
(1) Flat steel mill, 50% owned JV
SOUTH AMERICA
2 mills and 1 strategic shareholding (Sipar)
3 fabrication shops
BRAZIL
10 mills
9 fabrication shops
5 downstream operations and special sections
73 sales points (Comercial Gerdau).
5 service centers for flat steel (ComercialGerdau).
NORTH AMERICA
10 mills and 1 strategic shareholding (Gallatin Steel)
14 fabrication shops
12 downstream operations and special sections
Gerdau AmeriSteel Corp.
Sipar (2)
Laisa
Gerdau S.A.
Açominas
AZA
Gallatin Steel (1)
Competitive Edge
Focus on long steel products manufacturing and distribution
Market mill approach
Up-to-date technology
Competitive production costs
Diversified production processes
Multiple raw materials sourcing
Vertical and horizontal integration
Relevant market share in every country in which the company has operations
Financial soundness and access to international capital markets
Confirmed experience in turning around distressed operations19
Results
In R$ million
20
GROSS SALES REVENUE
Net Sales Revenue
Cost of Sales
Gross Profit
SG&A
Net Financial Expenses
Other Operating Results
Equity pick-up
Operating Profit
Non-operating result
Provision for income tax and social contrib.
Statutory participation
Net Income
Controlling ShareholdersMinority Shareholders
9M2003 9M2002
11,614 8,062
9,851 6,595
(7,429) (4,717)
2,422 1,878
(848) (729)
(490) (1,141)
(1) 101
(285) 588
798 697
(14) (28)
24 (37)
(13) (9)
795 623
679 623 116 (0)
3Q2003 2Q2003
4,132 3,558
3,494 3,030
(2,688) (2,246)
806 784
(291) (276)
(240) (141)
2 (4)
26 (222)
303 141
(4) (9)
(50) 134
(4) (4)
245 262
234 199 11 63
Main Variations
COST OF SALES
Scheduled stoppages for technological
updates in North America – cost 8.2
million.
Four mills affected by the outage in
August in North America.
Greater revenue (expressed in reais) of
results from operations abroad due to
the 1.8% devaluation of the real vis-à-
vis the US dollar
2Q2003 3Q2003
In R$ million
- 2,246
- 2,688
NET SALES REVENUE
6% growth in shipments.
Greater revenue (expressed in reais) of
results from operations abroad due to the
1.8% devaluation of the real vis-à-vis the
US dollar.
2Q2003 3Q2003
In R$ million
+3,030+3,494
21
In R$ millionNET INCOME EXPENSES
Effect of the 1.8% devaluation of the real
vis-à-vis the US dollar in the quarter.
If monetary and FX variations are excluded,
net financial expenses of the third quarter
are R$ 161 million.
Financial Expenses 281Monetary and FX variations 85Fin. Expenses without Variations 196
Financial Revenues 41Monetary and FX variations 6Fin. Revenues without Variations 35
Net Financial Expenses 240Monetary and FX variations 79Net Financial Expenses 161(without variations)
3Q2003
22
Main Variations
-240
-141
2Q2003 3Q2003
EQUITY PICK-UP
PROVISION FOR INCOME TAX AND SOCIAL CONTRIBUTION
In R$ million
In R$ million
Equity pick up was positive in the third
quarter this year as a result of the FX
impact over investments abroad.
In the 3Q2003 were no relevant facts,
whereas in 2Q2003 the full accrual of R$
198.0 million of deferred fiscal assets based
on fiscal losses and a negative social
contribution by its subsidiary Açominas in
that period was accounted.
23
Main Variations
134
-502Q2003 3Q2003
-222
26
2Q2003 3Q2003
NORTH SOUTHBRAZIL AMERICA AMERICA TOTAL
In R$ million
Net Sales 1,933 1,441 120 3,494
Gross Profit 712 53 40 805
EBITDA 585 49 37 671
Net Income 254 (30) 21 245
R$ / ton
Net Sales 1,094 1,117 1,216 1,107
Gross Profit 403 41 404 255
EBITDA 331 38 371 212
Net Income 144 (23) 212 78
%
Gross Margin 36.8% 3.7% 33.2% 23.0%
EBITDA Margin 30.3% 3.4% 30.5% 19.2%
Net Margin 13.1% -2.0% 17.4% 7.0%
Results by Region3Q2003
24
Sales Track Record
In 1,000 tons
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03
876 932 1,086 980 854 798 875
625695
6471,067 1,271 1,284 1,29084
76
86
106107 101
99
536 280
495 580 657 793 892
Calpers stoppage at Açominas’ blast
furnace
Full Consolidation of Co-Steel in North
America
2,121 1,983 2,314 2,733 2,889 2,976 3,156 TOTAL SHIPMENTS
Brazil (Domestic Sales)
Brazilian Exports
North America
South America
Resumption of domestic sales in the 3Q2003. Positive trend for 4Q2003.
Increasing exports since 3Q2003. Counterbalancing the reduction of domestic sales. International prices and US dollar attractive to exports.
Growth after 4Q2002 due to the merger with Co-Steel.Higher sales during 2003.
Demand in Chile and Argentina improving.
25
Brazilian Exports
Asia46%
Africa11%
South America9%
North America 10%
Europe12%
Central America12%
Exports from Brazil increased 81% in 9M2003 compared to 9M2002.
Europe, Africa and South America are buying to buy more steel products.
Gerdau S.A. negotiates its exports through trading companies, whereas Açominas delivers
its products directly to the end consumer.
Asia54%
Africa3%South America
8%
North America13%
Europe8%
Central America14%
DESTINATION OF EXPORTS 9M2002
DESTINATION OF EXPORTS 9M2003
26
1Q03 2Q03 3Q03
Output
Gerdau S.A. Açominas North America South America
ROLLED PRODUCTSIn 1,000 tons
905
107
1,197
90
855
85
1,216
90
830
91
1,122
92 272 363 57%
3,535 4,713 76%
283 377 51%
2,590 3,453 85%
6,680 8,906 77%
2,2992,2462,135
CRUDE STEEL
In 1,000 tons
253 337 66%
9M2003ANNUALIZED
9M2003 ACUMULATED
3,766 5,021 76%
2,203 2,937 98%
2,954 3,939 90%
9,176 12,234 85%
3,1233,0852,968
1,050
740
1,250
83
963
716
1,321
85
941
747
1,195
85
INSTALLED CAPACITY
UTILIZATION
27
9M2003ANNUALIZED
9M2003 ACUMULATED
INSTALLED CAPACITY
UTILIZATION
1Q03 2Q03 3Q03
TOTAL DEBT 7,168 100% 6,944 100%
SHORT TERM 3,708 52% 3,153 45%
Local currency (Brazil) 481 7% 736 10%
Foreign corrency 1,639 23% 1,576 23%
Companies abroad 1,588 22% 841 12%
LONG TERM 3,460 48% 3,791 55%
Local currency (Brazil) 1,096 15% 763 11%
Foreign corrency 898 13% 1,047 15%
Companies abroad 1,466 20% 1,981 29%
CASH & EQUIVALENTS 1,431 100% 1,498 100%
Local currency (Brazil) 499 35% 798 53%
Foreign corrency 932 65% 700 47%
NET DEBT 5,737 - 5,446 -
SEPT.03DEC.02
IndebtednessIn R$ million
SENIOR SECURED CREDIT FACILITY US$ 350 SENIOR UNSECURED NOTES US$ 450 (June)Total volume: US$ 755 mmAverage cost: 7.7%Average term: 6.6 years
SECURED EXPORT NOTES PROGRAM(September)Total volume: US$ 400 mm 1st tranche: US$ 105 mmCost: 7.37% p.a.Term: 7 years – Grace period: 2 years
EURO-COMMERCIAL PAPER PROGRAM(October)Total volume: US$ 300 mm1st tranche: US$ 100 mmCost: 4.125% p.a.Term: 1 year
TOTAL DEBT REDUCTION AND MATURITY EXTENTION
HEDGE
Local currency 2.623
Swap operation 1.469
Cash & equi. US$ 700
HEDGE / EXPORSURE 1.2X
DEBT COST
Brazil - R$ 21%
Brazil - R$ + FX 6%
Companies abroad - US$ 7%
28
Debt BreakdownSHORT TERM – R$ 3.2 billion
Companies abroad(US$)27%
Açominas (US$)16%
BNDES (R$) 3%
Working Capital(R$) 6%
Others 1%
Açominas (R$) 3%
Debentures (R$) 10%
Eurobonds (US$) 12%
Import loans (US$)11%
Working Capital (R$)11%
LONG TERM – R$ 3.8 billion
Companies abroad
51%
Açominas (US$) 7%
Others 3%
BNDES (R$) 7%
Açominas (R$) 4%
Debentures (R$) 7%
Import loans(US$) 1%Working
Capital (US$)6%
ACC/Pre-Export (US$)13%
29
Amortization Flow
In R$ million
4Q03 1Q04 2Q04 3Q04 4Q04 2005 2006 After2007
500
1,000
1,500
2,000
2,500
700 681
355
146
539 396
2,337
1,417
2007
373
Debentures 336Banco do Brasil 151Eurobonds Interest 21
Eurobonds 380Banco do Brasil 49
Secured Export Notes ProgramSenior Secured Credit Facility
Senior Unsecured Notes
30
Investments9M2003
Gerdau S.A.US$ 71.7 mm
AçominasUS$ 89.3 mm
South AmericaUS$ 4.7 mm
North AmericaUS$ 40.5 mm
NEW WIRE-ROD MILLInstalled capacity: 550 thousand tons/year
Beginning of the tests at the end of November 2003
Total investment: US$ 75 mm
SCHEDULED STOPPAGES FOR TECHNOLOGICAL
UPDATE IN 6 MILLS IN THE 3Q2003.
Investments in EnvironmentUS$ 38,2 mm in 2002
TOTAL 9M2003: US$ 206.1 mm31
Operational Integration
Merger of power of both companies: higher competitiveness
Project developed in partnership between Gerdau e CEA (partner-contributor)
Headquarter in Ouro Branco - MG
Gerdau Açominas S.A.Gerdau S.A. Aço Minas Gerais S.A.Açominas
NEW CORPORATE GOVERNANCE
Met. Gerdau S.A.
Gerdau Açominas S.A.
Brazil NorthAmerica
SouthAmerica
Gerdau Ameristeel
Gerdau AZA
Gerdau Laisa
Sipar
Gerdau S.A.
32
Demand pick up in Brazil;
Declining trend in interest rates in Brazil;
Brazil’s economic and political stability results in a better country risk;
Social Security Reform under way;
International prices trend: stable to upward;
North American operations pursuing better results;
US economy recovering, but slowly;
South American operations in very good shape and improving.
Outlook
33
Steel Sector
Gerdau S.A. Consolidated
Capital Market
Other investors16%
Foreign Inst. Investors21%Brazilian Inst. Investors
11%
Gerdau Companies52%
METALÚRGICA GERDAU S.A.
GERDAU S.A.
Shareholders StructureSeptember 2003
35
Other investors 34%
Foreign Inst. Investors17%
Brazilian Inst. Investors24%
Gerdau ControllingGroup
25%
Adjusted Net Income Dividends paid
Payout of 30% of the Adjusted Net Income.
Since March 2003, dividend payments are being made on a quarterly basis.
Dividend Policy
1998
32.0% 33.1% 32.6% 52.5% 33.9% PAYOUT
YIELD16.4% 6.0% 7.9% 17.0% 12.4 %
32.8% 32.0% 32.8% 35.6% 34.9%
11.7% 3.6% 6.1% 6.8 % 7.1%
METALÚRGICA GERDAU S.A.In US$ million
GERDAU S.A.In US$ million
2000
8929
8828
1999
9130
2001*
10153
2002
11740
2001
19971
2000
19564
1999
17155
1998
15049
2002
21675
36
* Higher amount due to a one-time supplementary dividend payment.
Stock Price Performance
USA (NYSE)
BRAZIL (Bovespa)
100
200
300
400
2001 2002 2003
Met. Gerdau S.A GOAU4
Gerdau S.A.GGBR4
Ibovespa
500
100
200
300
2001 2002 2003
Gerdau S.AGGB
Dow Jones
37
Source: Economática – Period: Jan 2nd, 2001 to Oct 31st, 2003 (Base 100)
Appreciation ChartReturns in US$
1 YEAR 3 YEARS 5 YEARS
BRAZIL (Bovespa)
GGBR4+123%
Ibov+125%
GGBR4+505%
Ibov+7%
Ibov-19%
GGBR4+129%
GOAU4+174%
GOAU4+629%
GOAU4+135%
GGB + 109%Dow Jones + 17%
GGB + 84%Dow Jones - 11%
GGB +340%Dow Jones + 0.3%
USA (NYSE)
38Source: Economática - October 31st, 2003
Liquidity
Avg / Daily number of transactions
Avg / Daily Dollar trading volume
METALÚRGICA GERDAU S.A. (GOAU4)
Avg / Daily number of transactions
Avg / Daily Dollar trading volume
GERDAU S.A. (GGBR4)
Source : Economática39
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
01/02 04/02 07/02 10/02 01/03 04/03 07/03 10/030
100
200
300
400
500
600
700
R$ 1,000 Number of transactions
Jan.02 Apr.02 Jul.02 Oct.02 Jan.03 Apr.03 Jul.03 Oct.03
CSN USIMINAS
1,720
3,815
3,560
1,148
3,626
1,060
2,951
5,505
178.6
8.0
286.9
41.3
3.1 3.4
2.8 1.5
NUCORSTEEL
DYNAMICS
8.5 3.8
30.4
5.4
886
1,252
18.6
232
ND
4,286
ND
4,207
502
8.4
54.8
42.2
GERDAU BELGO
2.3 3.4
444
271.8
1,359
4.3
14.6
3,936
923
1,407
2,159
2,885
3.5
402
156.5
194.5
Source : Economática, Yahoo Finance, Bloomberg and company websites
Note 1: Gerdau, Nucor and Steel Dynamics: on 09.30.03Belgo, CSN and Usiminas: on 30.06.03
Note 2: Gerdau: 9M2003 annualizedBelgo, CSN and Usiminas: 6M2003 annualizedNucor and Steel Dynamics: TTM (Trailing Twelve Months)
Note 3: Gerdau, Nucor and Steel Dynamics: 9M2003Belgo, CSN and Usiminas: 6M2003
Belgo and CSN data in lots of thousand shares
FX - 06.30.2003: US$ 1.00 = R$ 2.8720
09.30.2003: US$ 1.00 = R$ 2.9232
10.31.2003: US$ 1.00 = R$ 2.8562
EV = Market Capital + Net Debt
Market Capitalization(US$ mm) - 10.31.03
Avg / Daily Trad. Vol.(US$ thousand) - 2003
Enterprise Value - EV (US$ mm) - note 1
EBITDA annualized(US$ mm) - note 2
EV/EBITDA annualized( X )
Stock Price(US$) - 10.31.2003
Net Income(US$ mm) - note 3
Market Cap./EBITDAannualized ( X )
Comparative Data
40
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’s Value
41
