1 / 28

New York, September 3-5, 2003

Second Annual Global Emerging Markets One-on-One Conference. DEUTSCH BANK. New York, September 3-5, 2003. STEEL SECTOR GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets. WORLD PRODUCTION Crude Steel. In 1,000 tons. Source: IISI. 3. LARGEST PRODUCERS

kreeli
Download Presentation

New York, September 3-5, 2003

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Second Annual Global Emerging Markets One-on-One Conference DEUTSCH BANK New York, September 3-5, 2003

  2. STEEL SECTORGERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

  3. WORLD PRODUCTION Crude Steel In 1,000 tons Source: IISI 3

  4. LARGEST PRODUCERS Crude Steel 2002 Production Company In million tons Production Company Source: IISI 4

  5. 333 $/t – Hot Rolled Coil 350 US$/ton 322 $/t - Merchant Bar 300 311 $/t - Rebar 250 307 $/t - Wire Rod 200 Jan. 02 Jul. 02 Jan. 03 Jul. 03 Retail Sales of Electricity Industrial Sector Composite Prices for Steel Scrap INTERNATIONAL PRICES & COST OF MAIN INPUTS Average world steel transaction price 5 Source: MEPS/ USGS / EIA

  6. Aços Villares 6% Belgo (Arcelor) 35% Barra Mansa 5% V&M do Brasil 6% Gerdau 48% CRUDE STEEL OUTPUT 6M2003 Brazilian Crude Steel Producers In 1,000 tons Usiminas/Cosipa 4,296.7 Belgo/CST/Acesita (Arcelor) 4,192.8 Gerdau/Açominas 3,366.4 CSN 2,607.9 Aços Villares 397.0 V&M do Brasil 259.2 Barra Mansa 189.4 Brazilian Long Steel Producers Source: IBS 6

  7. STEEL SECTORGERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

  8. 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. • 14th largest world steel producer according to IISI. • Largest long steel producer in the Americas. • Metalúrgica Gerdau S.A. is listed on the São Paulo Stock Exchange, Gerdau S.A. is listed on the São Paulo Stock Exchange, 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 and Gallatin Steel). • 68 sales points in Brazil (Comercial Gerdau). • 17 downstream operations and special sections (5 in Brazil e 12 in North America). • 26 fabrication shops (9 in Brazil, 03 in South America and 14 in North America). • 4 service centers for flat steel in Brazil (Comercial Gerdau). 8

  9. Cambridge, ON (Courtice) MRM Special Sections Whitby, ON Perth Amboy, NJ Sayreville, NJ Gallatin County, KY HO GERDAU AMERISTEEL Charlotte, NC Whitby, ON Cartersville, GA Jacksonville, FL Knoxville, TN Jackson, TN Gerdau Ameristeel Corp. GERDAU S.A. Cearense AÇOMINAS Açonorte Usiba AZA LAISA Divinópolis SIPAR Açominas Gerdau S.A. Cosigua Açominas Guaíra Riograndense Piratini 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 • 7.4 MILLION TONS OF CRUDE STEEL PER YEAR • 4.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR 9

  10. CAPACITY & PRODUCTS 2003 Crude Steel Rolled Products In 1,000 tons Products 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. 10

  11. Co-Steel 2002 Part. Açominas 1997 Usiba1989 Piratini1992 Crude Steel AmeriSteel USA 1999 Pains1994 Sipsa Argentina1997 Barão de Cocais1988 CearenseGuaíra1982 Rolled Products Part. Sipar Argentina 1998 MRM Canada 1995 Hime1985 Aza Chile 1992 Courtice Canada 1989 Laisa Uruguay 1981 Açominas (control) 2002 1980 1984 1988 1992 1996 2000 2002* * 100% of Co-Steel OUTPUT EVOLUTION Growth Average Rate 1980 - 2002 CRUDE STEEL 10.4% year ROLLED PRODUCTS 9.6% year 11

  12. STEEL SECTORGERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

  13. HIGHLIGHTS 6M2003 • Net Income of R$ 262 million in 2Q03 and R$ 549 million in 1H03. • Net Sales of R$ 3.0 billion in 2Q03 and of R$ 6.4 billion in 1H03. • Crude steel Output in March reached 1 million metric tons, a historical high. • Dividends now paid quarterly. • Stock Bonus of 100% for Metalúrgica Gerdau S.A. shareholders and 30% to Gerdau S.A. shareholders. • Reverse split of 1,000:1 and shares quoted as single units. • Stock option plan for management and employees. • Metalúrgica Gerdau S.A. listed as Level 1 in Bovespa’s Corporate Governance Index. 13

  14. RESULTS 6M2003 14

  15. Brazil North America South America COMPARISON OF RESULTS Ebitda Net Sales 3,327 3,030 R$ million R$ million 706 96 120 646 38 29 47 1,166 1,978 1,490 70 439 73 24 819 105 546 620 1,769 1,717 310 1,086 2Q02 1Q03 2Q03 2Q03 2Q02 1Q03 Gross Margin Ebitda Margin 31% 38% 31% 32% 6% 7% 1Q02 2Q 3Q 4Q 1Q03 2Q 1Q02 2Q 3Q 4Q 1Q03 2Q 15

  16. SHIPMENTS In 1,000 tons 2,976 2,889 101 107 1,983 1,284 Slight increase in volumes. 76 1,271 695 793 280 657 Higher international prices and stronger exports could counterbalance the lower domestic market demand. 932 854 798 2Q02 2Q03 1Q03 Exports increased +183% 2Q02/2Q03 Brazil – Domestic Market North America Brazil – Exports South America 16

  17. Flat steel 9% Semi-finished 22% Drawn products 5% Specialty steel 3% Common long steelproducts Brazil 22% Common long steelproducts Abroad 39% SALES BY PRODUCT LINE 2nd QUARTER 2003 Semi-finished products Exports 86% Domestic Market 14% Common long steel products Domestic Market 54% Exports 46% SALES BY SEGMENT 41% Civil Construction, 58% Industry and 2% Agriculture (Gerdau S.A. non consolidated) 17

  18. OUTPUT In 1,000 tons CRUDE STEEL OUTPUT ROLLED PRODUCTS OUTPUT 2,135 3,085 2,239 2,968 83 1,957 85 85 92 1,599 81 1,195 1,321 1,216 72 1,122 687 633 1,688 1,679 940 921 885 1,198 2Q02 1Q03 2Q03 2Q02 1Q03 2Q03 Brazil South America North America 18

  19. INDEBTEDNESSJune 2003 In R$ million * US$ debt contracted in Brazil 19

  20. SHORT TERM – R$ 3.2 billion Açominas (US$) – 609.1 million Debentures (R$) – 11.8 million Companies abroad 927.0 million BNDES – 103.9 million Other – 261.9 million Açominas (R$) – 74.1 million ACC/Pre-export – 219.2 million Eurobond – 344.3 million Import loans – 323.6 million Working Capital354.2 million DEBT BREAKDOWNJune 2003 LONG TERM – R$ 3.6 billion Companies abroad 1,647.8 million Working Capital – 199.3 million Import loans – 14.2 million ACC/Pre-export – 177.7 million Açominas (R$) – 150.2 million Other – 154.9 million BNDES – 264.0 million Debentures (US$) – 205.3 million Açominas (US$) 254.3 million Debentures (R$) 545.9 million 20

  21. FINANCIAL RATIOS * EBITDA of last 12 months. 21

  22. INVESTMENTS 2nd QUARTER 2003 US$ 72 MM 2003 FORECAST US$ 230 MM Gerdau US$ 23 mm Stronger investments in 2003 due to the new wire rod rolling mill facility. South America US$ 4 mm Açominas US$ 34 mm North America US$ 11 mm HIGHLIGHTS • Conclusion of the new wire rod rolling mill in Açominas in December 2003. • Increase of electric furnace at Piratini for a 15% increase in melt shop capacity. • Installation of a new continuous caster at the Usiba mill (conclusion in 2004). • Improvement and technological update of units in North America. • São Paulo Greenfield project will be re-visited in the 2nd half of 2003. 22

  23. STEEL SECTORGERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

  24. Gerdau ControllingGroup 25% Brazilian Inst. Investors22% Other investors 35% Foreign Inst. Investors18% Foreign Inst. Investors20% Brazilian Inst. Investors 12% Gerdau Companies 52% SHAREHOLDERS STRUCTURE June 2003 METALÚRGICA GERDAU S.A. GERDAU S.A. Other investors 16% 24

  25. METALÚRGICA GERDAU S.A. GERDAU S.A. R$ million 763 R$ million 266 461 412 382 164 140 234 306 125 123 98 181 174 59 163 57 106 54 34 1998 1998 1999 2000 2001 2002 1999 2000 2001* 2002 Pay out 32.0% 33.1% 32.6% 52.5% 33.9% 32.8% 32.0% 32.8% 35.6% 34.9% Yield 16.4 % 6.0 % 7.9 % 17.0 % 12.4 % 11.7 % 3.6 % 6.1 % 6.8 % 7.1% Adjusted Net Income Dividend paid DIVIDEND POLICY • Distributes at least 30% of the Adjusted Net Income. • As of March 2003, dividend payments are being made on a quarterly basis. * Higher amount due to a supplementary dividend payment. 25

  26. Met. Gerdau – GOAU4 Ibovespa Gerdau - GGBR4 Dow Jones APPRECIATION CHART PROFITABILITY IN US$ 5 years GGBR4 +257% GOAU4 +244% 3 years 1 year GOAU4 +112% GOAU4 +80% GGBR4 +79% Ibov+56% GGBR4 +56% Dow+9% Dow+5% Dow-15% Ibov-35% Ibov-50% Source: Economatica Date: 08/19/2003 26

  27. Metalúrgica Gerdau S.A Gerdau S.A Ibovespa PRICE EVOLUTION Period: From 02/21/2001 to 08/19/2003 Source: Economatica 27

  28. www.gerdau.com.br inform@gerdau.com.br

More Related