GERDAU - 2002 Annual Report

• Results
• Indebtedness
• Stock Markets
• Risk Management
• Consolidated Cash Flow

Financial management with a focus on added value for shareholders

STOCK MARKETS

   In 2002, shares of Gerdau AmeriSteel, the parent company of the Group’s North American operations, were listed on the Toronto Stock Exchange in Canada. This expanded presence resulted from the merger of the Group’s operations in the United States and Canada with those of Co-Steel, the shares of which have been traded under the new name since the end of October 2002.

   In December, shareholders of Gerdau S.A. gained an additional source of liquidity for their shares: the Madrid Stock Exchange. With the Company’s listing on the Latibex, the index for Latin American companies on the Spanish exchange, each of the Company’s shares traded in that country generates a trade in Brazil.

   The concession of the tag along right to all Metalúrgica Gerdau S.A. and Gerdau S.A. shareholders, regardless of the type or class of shares, was another important event in the year. In the event of transfer of Company control, minority shareholders now have the right to receive 100% of the value paid to members of the controlling block. This benefit is higher, in percentage terms, and more comprehensive than that required by Brazilian corporate law, which establishes the payment of 80% of the value of shares of the controlling block only to holders of common shares.

DISTRIBUTION OF CAPITAL STOCK
Metalúrgica Gerdau S.A.

	Gerdau Companies
	Brazilian institucional investors
	Foreign institutional investors
	Other

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DISTRIBUTION OF CAPITAL STOCK
Gerdau S.A.

	Gerdau Companies
	Brazilian institucional investors
	Foreign institutional investors
	Other

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   Gerdau S.A. shares moved R$ 1.4 billion on the São Paulo Stock Exchange in 2002, 114.4% more than in the previous year, a daily average of R$ 5.5 million. The value of preferred shares rose 73.7% and, together with the common shares, closed the year with 54,716 trades. The Company is a member of the São Paulo Stock Exchange Program of Corporate Governance (Level 1).

   Gerdau S.A. ADRs on the New York Stock Exchange moved an average of US$ 569,700 per day, a total of US$ 144.1 million.

   Metalúrgica Gerdau S.A. totaled 9,759 trades on the São Paulo Stock Exchange and moved R$ 303 million, up 22.5% on 2001. The value of preferred shares rose 103.1% for the year, with a daily trading volume of R$ 1.1 million.

   The free float (shares that are not held by the controlling block) represents 48.5% of the capital stock of Gerdau S.A. and 73.2% of Metalúrgica Gerdau S.A.

   Under its transparency policy, the Gerdau Group discloses detailed information regarding its operations on its website and through the Investor Relations Department. It discusses quarterly results at meetings with the stock market and through conference calls that are also broadcast via the Internet. These events, held throughout the year, involve around 1,500 professionals in Brazil, North America and Europe.

SHARE PRICE DEVELOPMENT PREFERRED SHARES PRICES

Metalúrgica Gerdau S.A. vs. Ibovespa
Base 100 on January 2, 2002

	Metalúrgica Gerdau S.A.
	Ibovespa

	Gerdau S.A.
	Ibovespa

	ADRs Gerdau S.A.
	Dow Jones

	Governments
	Shareholders
	Employees*
	Reinvested profits
	Investors

*Incluiding incentive plan in North American companies.

	Federal taxes and contributions
	Federal charges
	State taxes and contributions
	Municipal taxes and contributions

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