Gerdau Group company shares are listed in the Săo Paulo, New York, Toronto and Madrid
stock exchanges. Their liquidity levels reflect the Group’s ongoing efforts to add value for
shareholders. The results of this policy, together with transparent practices, translate into
attractive market dividends.
METALÚRGICA GERDAU S.A. AND GERDAU S.A.
In Brazil, the Gerdau Group owns two listed companies: Metalúrgica Gerdau S.A. and Gerdau
S.A. In 2005, shareholders of Gerdau S.A. received R$ 796.4 million in dividends, and those
of Metalúrgica Gerdau S.A. received R$ 364.1 million. This represents a dividend yield at
December 31 of 6.1% for Metalúrgica Gerdau S.A. and 4.6% for Gerdau S.A. Payment of
dividends is based on the net profit obtained in the fiscal year. Net profit totaled R$ 1.3 billion
for Metalúrgica Gerdau S.A., yielding R$ 10.22 per share, and R$ 2.8 billion for Gerdau S.A., or
R$ 6.24 per share.
Since 1977, the Group’s listed companies in Brazil have paid shareholders at least 30% of
adjusted net profit each year, in the form of dividends and interest on capital stock. Holders
of common and preferred shares have 100% tag along rights, meaning that all common and
preferred shares have the right to be included in any public takeover offer. Minority shareholders
are thus guaranteed the same price paid on common shares held by the controlling block. This
benefit exceeds the requirements of the current legislation, which establishes a minimum of
80% as the price to be paid per voting share in the case of takeover.
Shares in the two Gerdau Group companies listed on the Săo Paulo Stock Exchange (Bovespa)
performed well in 2005, with Gerdau S.A. preferred shares up 33.4% and Metalúrgica Gerdau
S.A. securities up 18.5%. Both are part of the virtual portfolio that determines the Bovespa
Index, Brazil’s most important stock market indicator.
The number of transactions involving Metalúrgica Gerdau S.A. shares on the Bovespa practically
doubled compared to 2004, up 95.2% to 123,361 trades. The financial volume traded was up
32.6% to R$ 2.7 billion. Daily trading volume for preferred shares averaged R$ 10.2 million.
Gerdau S.A. share participation on the Bovespa was also significant. The number of trades
was 345,572 (up 54.3%), moving R$ 9.1 billion (up 25.1%). For the year, average daily trading
in preferred shares was R$ 34.8 million, representing a growth of 31.8% in relation to the
R$ 26.4 million recorded in 2004.
On the New York Stock Exchange (NYSE), Gerdau S.A. American Depositary Receipts
(ADRs) moved a total of US$ 2.9 billion, an increase of 127.1% in relation to the previous
year. Average daily trading of preferred shares was US$ 11.6 million. On the Madrid Stock
Exchange (Latibex), shares totaling ¤ 19.5 million were traded in 2005, up 214.5% on 2004.
In 2005, shareholders of Metalúrgica Gerdau S.A. and Gerdau S.A. received a 50% bonus
on shares held at April 11, 2005, when the operation was carried out (see box: Incentive
to Small Investors).
In June and July, both companies also acquired their own shares to retain in treasury and
for later cancellation. This had an impact on the market, resulting in greater share value and
liquidity. Resources for these acquisitions came from existing profit reserves. Gerdau S.A.
purchased 740,200 preferred shares and Gerdau S.A., 424,200.
GERDAU AMERISTEEL CORP.
Gerdau Ameristeel, the company responsible for the Group’s North American operations,
began to pay dividends in 2005, having distributed US$ 66.9 million.
Shares in the company moved Cdn$ 692.6 million on the Toronto Stock Exchange, up 38.4% on
the 2004 figure. Average daily trading volume rose from Cdn$ 2 million to Cdn$ 2.8 million.
On the New York Stock Exchange (NYSE), the company’s shares moved a total of US$ 307.3 million,
giving a daily average of US$ 1.2 million.
Accumulated net sales revenues for Gerdau Ameristeel (in US GAAP) totaled US$ 3.9 billion, up
29.5% on 2004. This was chiefly due to the consolidation of the facilities of North Star, acquired
at the end of 2004. The company’s net profit for the fiscal year was US$ 295.5 million.
SHAREHOLDER BASE
%
Metalúrgica
Gerdau S.A.
Gerdau S.A.
Gerdau
Ameristeel Corp.
Brazil
89.40
75.30
66.50
North America
7.80
20.80
33.50
Europe
1.90
3.00
-
Other
0.90
0.90
-
Total
100.00
100.00
100.00
STOCK QUOTES
Metalúrgica Gerdau S.A. - Bovespa (in R$)
2005
2004
2003
2002
2001
High
49.55
40.98
18.49
7.04
3.76
Low
26.46
17.96
6.37
3.60
2.35
Year-end
48.50
40.98
18.40
7.04
3.47
Market Cap (R$ million)
6,039
5,560
2,684
1,131
665
Gerdau S.A. - Bovespa (in R$)
2005
2004
2003
2002
2001
High
39.30
31.84
18.00
7.45
4.52
Low
20.23
15.07
6.26
4.26
2.41
Year-end
39.30
29.46
17.72
7.04
4.05
Market Cap (R$ million)
17,459
14,019
8,888
3,751
2,309
Gerdau S.A. ADR - New York Stock Exchange - Nyse (in US$)
2005
2004
2003
2002
2001
High
16.82
12.13
6.82
3.59
3.00
Low
8.89
5.31
2.07
1.77
1.20
Year-end
16.68
12.00
6.74
2.28
2.49
Gerdau S.A. ADR - Madrid Stock Exchange - Latibex (in €)
2005
2004
2003
2002*
High
17.04
19.95
16.77
7.32
Low
8.82
7.21
5.73
6.42
Year-end
17.04
13.06
16.77
6.90
* Quotes starting December 2nd, 2002.
Gerdau Ameristeel Corp. - New York Stock Exchange - Nyse (in US$)
2005
2004*
High
7.29
7.15
Low
4.18
4.54
Year-end
5.69
6.76
Market Cap (R$ million)
1,732
1,995
* Quotes starting October 15, 2002.
Gerdau Ameristeel Corp. - Toronto Stock Exchange (in Cdn$)
