Gerdau
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What is Gerdau's profile in the steel industry?

Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. With over 45,000 employees, it has industrial operations in 14 countries - in the Americas, Europe and Asia - which together represent an installed capacity of over 25 million metric tons of steel per year. It is the largest recycler in Latin America and around the world it transforms, each year, millions of metric tons of scrap into steel, reinforcing its commitment to sustainable development in the regions where it operates. With more than 140,000 shareholders, the Company is listed on the stock exchanges of São Paulo, New York and Madrid.

With a broad product line sold on the five continents, Gerdau meets the needs of the civil construction, industrial, and agribusiness sectors. It is also a global leader in supplying special long steel for the automotive industry. Steel is present in the everyday lives of people. In Brazil, for example, Gerdau steel is part of the construction and modernization of eight soccer stadiums for World Cup 2014 and major infrastructure projects for the country such as railways, wind power plants, ports, and roads.

Learn more:
www.gerdau.com.br/relatoriogerdau

What is Gerdau’s position in the world steel market?

Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. With over 45,000 employees, it has industrial operations in 14 countries - in the Americas, Europe and Asia.

Who is the depository agent for Gerdau shares?

Gerdau shares have book entry form with registered ownership. It means that it allows the shareholder to own shares without having physical stock certificates in their possession.

The depositary institution responsible for Gerdau shares is Banco Itaú S.A. It is responsible for the bookkeeping of the shares and of the records of shareholders, the update and tracking of payments of outlays and for the rights and to ensure the exercise of rights and receiving of amounts distributed by the Gerdau companies in Brazil.

It is also the responsibility of Banco Itaú to send to Gerdau S.A. and Metalúrgica Gerdau S.A. shareholders information regarding their positions by means of notices and summaries.

In which countries does Gerdau operate?

Gerdau operates in 14 countries: Argentina, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, India, Mexico, Peru, Spain, the United States, Uruguay, and Venezuela.

What are Gerdau´s social and cultural contributions to the communities where it operates?

Sustainable development of communities and the business chain
Gerdau believes that the strengthening of communities is critical to the growth of its business and sustainable development of the regions close to its units. That is why it stimulates local business chains of steel, mainly by encouraging the growth of micro and small companies and it supports social programs relevant to the communities where it operates.

Besides the investments in this area, which totaled R$ 61 million in 2011, the company involves its employees in doing volunteer work, as well as mobilizing different segments of society, multiplying the results of their actions by bringing together the knowledge and skills of those involved. All of these activities receive orientation from the Gerdau Institute, which is responsible for the Company’s policies and guidelines for social responsibility and are guided by specific focus of activity: education, management & quality, and providing emergency assistance.

Learn more:
http://www.gerdau.com.br/relatoriogerdau

What is Gerdau’s relationship with the environment?

Efficient management system keeps the environment protected
Gerdau is continually working to reduce the impact of its activities on the environment. That is why it follows stringent practices to protect nature, invests in new industrial technologies, and seeks to rationalize the use of natural resources and inputs. In 2011, R$ 370.9 million was allocated for the protection of the environment with a special highlight to the modernization projects of the dust removal systems in mills in Brazil, Chile, Colombia, and the United States. The dust removal systems captures with high efficiency the solid particles generated in the steelmaking process.

Through the Environmental Management System (EMS), a set of processes aligned with ISO 14001 standard, the Company monitors under an environmental point of view, the entire steel production cycle, from obtaining the raw material until the final delivery of the product, including the allocation of by-products. Currently, 47 industrial mills of Gerdau, which represents 87% of the total, have the ISO 14001 certification.

SCRAPAs the largest recycler in Latin America, Gerdau transforms more than 15 million tons of scrap steel every year. More than 75% of Gerdau’s production is made from electric steel mills whose main raw material is scrap, while the world average is only 28%. The use of scrap for the steel production process contributes to the preservation of the environment because it reduces the consumption of energy and other supplies such as iron ore and coke, and, as a result, reduces emissions of CO2.

Learn more:
http://www.gerdau.com.br/relatoriogerdau

Who are the main Gerdau shareholdres?

Positon held on 08/31/2012 - Gerdau S.A., Metalúrgica Gerdau S.A. and Gerdau S.A.
http://gerdau.com/investidores/en-US/download/2012.08-ControleAcionarioingles.xls

SHAREHOLDERS
How changes are made on the shareholders registry?

The shareholder will get regular information regarding its position and rights through the mail. So that this service is effectively used, shareholders must keep their records updated with the depositary agent, the Banco Itaú.

Any changes made to the registry must be requested through one of Banco Itaú branches' shareholders services. This information will only be given to the person who presents the required identification documents.

How do investors receive information about their shareholders' position?

A shareholder's position may be requested at the Shareholders' Services Center or at any Banco Itaú branch office. This information will be furnished only to:

The shareholder in person, by producing the proper identification; or

An attorney, also by producing the proper documentation and identification.

If the registry at Itaú do not show any shares in a particular account, it may be due to the fact that these shares may have already been sold or transferred and are in the custody of the Stock Exchange/CBLC. If this is the case, the shareholder should contact his/her broker immediately.

To obtain additional information or clarification about the shareholding situation, the shareholder may contact de Shareholders Department:

» Gerdau - Shareholders Dept.
» Address: Av. Farrapos, 1811 - Floresta 90.220-005 - Porto Alegre - RS
» The Contact Us service in the website
» E-mail: acionistas@gerdau.com.br
» Telephone: +55 (51) 3323 2211

How do shareholders participate in a General Shareholders meeting?

The General Shareholders’ Meeting must take place no later than four months after the close of the fiscal period, to get the approval for the quarter's accounts, the destination of profits, and electing of the board. All shareholders can participate, but only the holders of common shares have the right to vote. The notices for calling shareholders’ meetings are published in selected newspapers and on Gerdau's website. In order to receive a notice of this event, the shareholder must register with the "e-mail alert" service on Gerdau's website.

How does Gerdau pay out dividends?

Beginning in 1977, Gerdau paid minimum dividends of 30% of the adjusted net income twice a year. On March 31st, 2003 the Boards of Gerdau S.A. and Metalúrgica Gerdau S.A. approved the payment of quarterly dividends using the same procedures for calculation. In Gerdau Açominas, payment started to be made on a quarterly basis beginning in March 31st, 2004.

How many shares Gerdau has issued?

Gerdau has 1,431,380,226 shares, 934,793,732 are preferred and 409,586,494 are ordinary or common stock.

Metalúrgica Gerdau S.A. has 412,681,538 shares, 275,062,544 of which are preferred shares and the balance are ordinary or common stock.

How to follow the evolution of Gerdau stock prices?

In order to track the prices of Gerdau stock, investors may use the services available at the site of the company (please note that these quotes are delayed 15 minutes) and the graphics available from Investor Relations.

What are Depositary Receipts?

ADRs are receipts held by an American bank that represent shares of a foreign company. Also called American depositary shares, they are traded in U.S. capital markets. It is through ADRs that investors can invest their capital domestically in foreign companies.

Gerdau has Level II ADRs registered at the NYSE (New York Stock Exchange), which gives it more visibility in the American market.

The Level II ADR program requires the company to fully register according to the Securities Act and also to divulge all of the information required by the Securities Exchange Act of 1934.

The Bank of New York is Gerdau's depository bank, whose responsibility is to maintain the registry, the emission/cancellation of ADRs, and the payment of dividends or interest on capital to the holders of these titles. The depository bank also provides Gerdau with detailed information about its ADRs movements, as well as tendencies and developments in the North American market.

DRs are receipts held by a bank that represent shares of a foreign company. Also called depositary shares, they are traded in foreign capital markets. It is through DRs that investors can invest their capital domestically in foreign companies.

Gerdau has DRs registered in the Madrid Stock Exchange (Latibex), which gives it more visibility in the European market.

The Depositary Institution of the Gerdau's DRs is the SCL (Servicio de Compensación y Liquidación Valores) and the Custodian Institution is the CBLC (Companhia Brasileira de Liquidação e Custódia S.A.). These instituiotions have the responsibility to maintain the registry, the emission/cancellation of DRs, and the payment of dividends or interest on capital to the holders of these titles. The depository bank also provides Gerdau with detailed information about its DRs movements, as well as tendencies and developments in the market.

What are the addresses of the Banco Itaú S.A. branches shareholder services?

Brasília - DF
SCS Quadra 3 – Edif. D´Angela, 30, Bloco A, Sobreloja - Centro
CEP 70300-500
Phone: +55 61 316 4850
Mrs. Constancia Maria S. de Oliveira


Belo Horizonte - MG
AV. João Pinheiro, 195, Subsolo - Centro
CEP 30130-180
Phone: +55 31 3249 3524
Mrs. Jussara Maria Miranda de Souza


Curitiba - PR
R. João Negrão, 65, Sobreloja - Centro
CEP 80010-200
Phone: +55 41 3320 4128
Mrs. Marcia Regina de N. Machado


Porto Alegre - RS
R. Sete de Setembro, 746 Térreo - Centro
CEP 90010-190
Phone: +55 51 3210 9150
Mrs. Sandra Ferreira da Silva


Rio de Janeiro - RJ
R. Sete de Setembro, 99 Subsolo - Centro
CEP 20050-005
Phone: +55 21 2508 8086
Mrs. Monica Lopes Carvalho Rodrigues


São Paulo - SP
R. Boa Vista, 176 1º SUBSOLO - Centro
CEP 01014-000
Phone: +55 11 3247 3139
Mrs. Claudia A. Germano Vasconcellos


Salvador - BA
AV. Estados Unidos (Ed. Sesquicentenário),50 2º AND - Comércio
CEP 40010-120
Phone: +55 71 3319 8010
Mr. Watson Carlos Passos Barreto


Shareholder Support Center - Investfone
Phone: +55 11 5029-7780


Gerdau Group
Porto Alegre - RS
Av. Farrapos, 1811
CEP 90220-005
Phone: +55 51 3323-2211
Mr. Tarcisio Beuren

What are the rights of Gerdau shareholders?

Common stock owners have the right to vote at shareholders’ meetings and to receive the 30% minimum dividend or interest over capital stock based on the adjusted net income of each period paid out on a quarterly basis. Preferred stock owners, on the other hand, have the option of receiving dividends or interest over capital stock, which are also paid quarterly, or of stock reimbursement, but do not have the right to vote.

Metalúrgica Gerdau S.A. and Gerdau S.A. common and preferred stocks owners have the right to 100% tag along.

The ADR program allows investors in the U.S. to hold stocks of non-U.S. based companies with the same economic and corporate rights (those of preferred stock) that the local Gerdau S.A. investors have.
Investors that hold DRs traded on the Latibex allow European investors to invest their funds in the shares of foreign companies, and have the same economic and corporate rights that the local Gerdau S.A. investors have.

What are the ticker symbols used for Gerdau shares and in which stock exchanges are these shares traded?

Gerdau has its shares traded in the following stock exchanges:

BOVESPA (São Paulo Stock Exchange) with the following ticker symbols:

- GGBR3 - Gerdau S.A. – common shares
- GGBR4 - Gerdau S.A. – preferred shares

- GOAU3 - Metalúrgica Gerdau S.A. - common shares
- GOAU4 - Metalúrgica Gerdau S.A. - preferred shares

NYSE (New York Stock Exchange) with the ticker symbol

- GGB - Gerdau S.A. - ADRs representative of preferred shares

LATIBEX (Madrid Stock Exchange segment that includes Latin American companies quoted in Euros)
- XGGB - DR Program of preferred shares issued by the Company in Spain.

What is the procedure to acquire and to sell Gerdau shares?

In order to invest in stocks, the person interested should look for a stockbroker that is able to give him/her support and intermediate the negotiation on the stock market. In order to obtain a list of brokerage firms with contact information, go to the site of Bovespa - São Paulo Stock Exchange (www.bovespa.com.br) in the section MEMBERS.

If you are beginning to invest in stocks, we suggest you look through the Bovespa website (www.bovespa.com.br), which is full of useful information for beginner investors and it even has some online courses that will help you become familiarized with the stock market.

In order to decide at what moment to buy or sell shares, we suggest you seek help from security analysts who work for brokerage firms. The job of these professionals is to analyze the economic fundamentals of the companies, the national and international macroeconomic conditions, along with other factors that could influence the results of the companies. Based on this analysis they are capable of giving their opinion about the best moment to buy or sell shares.

Gerdau's web site (www.gerdau.com/investidores) also has tools that may help you such as Quotations History, Key Ratios, Investment Simulator, among others.

Furthermore, we would like to remind you that stocks are considered a risky or variable income investment, and losses or gains may occur in different degrees depending on the variation of the prices of the shares purchased. For this reason, it is not recommended for people with a conservative risk profile, that is, those who are averse to running risks.

These shares can be held by:

The stockbrokerage in which they have been bought will be fully responsible for the payment of dividends and interest over capital stock as well as for the information necessary to file the income statement or;

The entry book system of Banco Itaú S.A., responsible for the remittance of data at no cost to the customer. In this case the shareholders will have the benefit of the automatic credit of dividends to their checking account of choice.