EX-1 3 e854550.txt REPORT OF INDEPENDENT ACCOUNTANTS EXHIBIT 1 (A free translation of the original in Portuguese) GERDAU S.A. REPORT OF INDEPENDENT ACCOUNTANTS ON THE LIMITED REVIEW OF QUARTERLY INFORMATION (ITR) SEPTEMBER 30, 2002 (A free translation of the original in Portuguese) REPORT OF INDEPENDENT ACCOUNTANTS ON THE LIMITED REVIEW October 15, 2002 To the Board of Directors and Shareholders Gerdau S.A. 1 We have performed a limited review of the quarterly information of Gerdau S.A. (parent company) and of the consolidated quarterly information of Gerdau S.A. and its subsidiary companies as of and for the quarter and nine-month period ended September 30, 2002. This quarterly information is the responsibility of Company management. 2 Our reviews were conducted in accordance with specific standards established by the Brazilian Institute of Independent Auditors (IBRACON) in conjunction with the Federal Accounting Council (CFC) and consisted primarily of: (a) inquiries of and discussions with management responsible for the accounting, financial and operating areas of the companies as to the main criteria adopted in the preparation of the quarterly information, and (b) review of the information and subsequent events that have or could have significant effects on the financial position and operations of the companies. 3 Based on our limited reviews, we are not aware of any significant change that should be made to the quarterly information for it to be in conformity with accounting principles determined by Brazilian corporate law for the preparation of quarterly information and the standards established by the Brazilian Securities Commission (CVM). 1 October 15, 2002 Gerdau S.A. 4 The quarterly information (ITR) also contains accounting information for the quarter ended June 30, 2002, which was reviewed by us, and for the nine-month period ended September 30, 2001, which was reviewed by other independent accountants. Unqualified limited review reports on this quarterly information were issued on July 15, 2002 and October 16, 2001, respectively. PricewaterhouseCoopers Carlos Alberto de Sousa Auditores Independentes Partner CRC 2SP000160/O-5 "S" RS Contador CRC 1RJ056561/S-7 "S" RS 2 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
---------------------------------------------------------------------------------------------------------------- REGISTRATION WITH CVM DOES NOT IMPLY ANY APPROVAL OF THE COMPANY. THE ACCURACY OF THE INFORMATION IS THE RESPONSIBILITY OF COMPANY MANAGEMENT. ---------------------------------------------------------------------------------------------------------------- 01.01 - IDENTIFICATION ---------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) 00398-0 Gerdau S.A. 33.611.500/0001-19 ---------------------------------------------------------------------------------------------------------------- 4 - Register Inscription Number - NIRE 33300032266 ---------------------------------------------------------------------------------------------------------------- 01.02 - HEAD OFFICE ---------------------------------------------------------------------------------------------------------------- 1 - FULL ADDRESS 2 - SUBURB OR DISTRICT Av. Joao XXXIII, 6777 Sta. Cruz ---------------------------------------------------------------------------------------------------------------- 3 - ZIP CODE 4 - MUNICIPALITY 5 - STATE 23568-900 Rio de Janeiro RJ ---------------------------------------------------------------------------------------------------------------- 6 - AREA CODE 7 - TELEPHONE 8 - TELEPHONE 9 - TELEPHONE 10 - TELEX 21 2414-6000 - - ---------------------------------------------------------------------------------------------------------------- 11- AREA CODE 12 - FAX 13 - FAX 14 - FAX 21 2414-6243 - - ---------------------------------------------------------------------------------------------------------------- 15 - E-MAIL Inform@gerdau.com.br ----------------------------------------------------------------------------------------------------------------
01.03 - INVESTOR RELATIONS OFFICER (Company Mail Address) ---------------------------------------------------------------------------------------------------------------- 1 - NAME 2 - ADDRESS Osvaldo Burgos Schirmer Av. Farrapos, 1811 ---------------------------------------------------------------------------------------------------------------- 3 - SUBURB OR DISTRICT 4 - ZIP CODE 5 - MUNICIPALITY 6 - STATE Floresta 90220-005 Porto Alegre RS ---------------------------------------------------------------------------------------------------------------- 6 - AREA CODE 7 - TELEPHONE 8 - TELEPHONE 9 - TELEPHONE 10 - TELEX 51 3323-2000 - - ---------------------------------------------------------------------------------------------------------------- 11- AREA CODE 12 - FAX 13 - FAX 14 - FAX 51 3323-2281 - - ---------------------------------------------------------------------------------------------------------------- 15 - E-MAIL inform@gerdau.com.br ----------------------------------------------------------------------------------------------------------------
01.04 - GENERAL INFORMATION / INDEPENDENT ACCOUNTANTS ---------------------------------------------------------------------------------------------------------------- CURRENT YEAR CURRENT QUARTER PRIOR QUARTER ---------------------------------------------------------------------------------------------------------- 1-BEGINNING 2-END 3-NUMBER 4-BEGINNING 5-END 6-NUMBER 7-BEGINNING 8-END 1/1/2002 12/31/2002 3 7/1/2002 9/30/2002 2 4/1/2002 6/30/2002 ---------------------------------------------------------------------------------------------------------------- 9 - NAME OF INDEPENDENT ACCOUNTANTS 10 - CODE CVM PricewaterhouseCoopers Auditores Independentes 00287-9 ---------------------------------------------------------------------------------------------------------------- 11 - NAME OF RESPONSIBLE ACCOUNTANT 12 - TAXPAYER ID NO. OF RESP. ACCOUNTANT Carlos Alberto de Souza 724.687.697-91 ----------------------------------------------------------------------------------------------------------------
3 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
01.05 - CAPITAL COMPOSITION ------------------------------------------------------------------------------------------------------------------ NUMBER 1 - CURRENT QUARTER 2 - PRIOR QUARTER 3 - SAME QUARTER (THOUSANDS) 9/30/2002 6/30/2002 PRIOR YEAR 9/30/2001 ------------------------------------------------------------------------------------------------------------------ Subscribed Capital ------------------------------------------------------------------------------------------------------------------ 1 - Common 39,590,942 39,590,942 39,382,020 ------------------------------------------------------------------------------------------------------------------ 2 - Preferred 74,527,529 74,527,529 74,109,686 ------------------------------------------------------------------------------------------------------------------ 3 - Total 114,118,471 114,118,471 113,491,706 ------------------------------------------------------------------------------------------------------------------ Treasury Stock ---------------------------------------------------- ------------------------------------------------------------- 4 - Common 0 0 0 ------------------------------------------------------------------------------------------------------------------ 5 - Preferred 0 0 0 ------------------------------------------------------------------------------------------------------------------ 6 - Total 0 0 0 ------------------------------------------------------------------------------------------------------------------
01.06 - CHARACTERISTICS OF THE COMPANY -------------------------------------------------------------------------------- 1 - TYPE OF COMPANY Commercial, Industrial and Other -------------------------------------------------------------------------------- 2 - SITUATION Operating -------------------------------------------------------------------------------- 3 - SHARE CONTROL NATURE Private National -------------------------------------------------------------------------------- 4 - ACTIVITY CODE 1140200 - Siderurgy -------------------------------------------------------------------------------- 5 - MAIN ACTIVITY Siderurgy -------------------------------------------------------------------------------- 6 - CONSOLIDATION TYPE Total -------------------------------------------------------------------------------- 7 - TYPE OF REPORT OF INDEPENDENT ACCOUNTANTS Without qualification --------------------------------------------------------------------------------
01.07 - COMPANIES EXCLUDED FROM THE CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------------------------------------------------------------------------------ 1-ITEM 2- CNPJ 3-NAME ------------------------------------------------------------------------------------------------------------------
01.08 - DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER ----------------------------------------------------------------------------------------------------------------------------------- 1- ITEM 2 - EVENT 3 - DATE 4 - TYPE 5 - DATE OF 6 - TYPE OF 7 - EARNINGS APPROVED PAYMENT SHARE PER SHARE ----------------------------------------------------------------------------------------------------------------------------------- 01 RCA 6/28/2002 Interest on own capital 8/15/2002 ON 0.000700000 ----------------------------------------------------------------------------------------------------------------------------------- 02 RCA 6/28/2002 Interest on own capital 8/15/2002 PN 0.000700000 -----------------------------------------------------------------------------------------------------------------------------------
4 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
01.09 - SUBSCRIBED CAPITAL AND ALTERATIONS DURING THE QUARTER ---------------------------------------------------------------------------------------------------------------------------------- 1- ITEM 2 - DATE OF 3 - Subscribed 4 - CHANGE 5 - NATURE 6 - NUMBER OF 7 - SHARE PRICE CHANGE Capital AMOUNT OF CHANGE SHARES ISSUED ON ISSUE DATE (Thousands of reais) (Thousands of reais ) (Thousand) (Reais) ---------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------
01.10 - INVESTOR RELATIONS OFFICER ----------------------------------------------------------------------------------------------------------------- 1 - DATE 2 - SIGNATURE ----------------------------------------------------------------------------------------------------------------- 10/17/2002 -----------------------------------------------------------------------------------------------------------------
5 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
02.01 - BALANCE SHEET - ASSETS (R$ THOUSAND) --------------- --------------------------------------------------- ----------------------- ----------------------- 1 - CODE 2 - DESCRIPTION 3 - 9/30/2002 4 - 6/30/2002 --------------- --------------------------------------------------- ----------------------- ----------------------- 1 Total assets 7,489,835 5,280,916 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01 Current assets 1,557,843 1,169,501 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.01 Available funds 28,688 11,619 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02 Credits 899,808 552,816 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02.01 Trade accounts receivable 535,248 458,474 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02.03 Tax credits 20,128 15,674 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02.05 Marketable securities 344,432 78,668 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03 Inventories 532,200 544,735 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.01 Finished products 185,243 206,568 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.02 Work in process 101,037 105,208 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.03 Raw materials 103,730 99,321 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.04 Warehouse materials 113,057 117,332 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.05 Advances to suppliers 20,133 16,306 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04 Other 106,147 60,331 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04.01 Other accounts receivable 47,937 39,368 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04.02 Deferred income tax and social contribution 37,691 3,063 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04.03 Advances to employees 20,519 17,900 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02 Long-term receivables 140,629 154,025 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.01 Sundry credits 56,206 23,314 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.01.01 Debtors under contract 19,467 16,649 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.01.02 Eletrobras loans 8,908 6,665 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.01.03 Credits on swap transactions 27,831 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02 Receivables from related companies 16,251 50,419 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02.01 Associated companies 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02.02 Subsidiary companies 16,251 50,419 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02.03 Other 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.03 Other 68,172 80,292 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.03.01 Judicial deposits and other 36,558 56,044 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.03.02 Deferred income tax and social contribution 31,614 24,248 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03 Permanent assets 5,791,363 3,957,390 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01 Investments 4,139,394 2,318,005 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01.01 In associated companies 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01.02 In subsidiary companies 4,125,779 2,304,398 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01.03 Other 13,615 13,607 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02 Fixed assets 1,643,980 1,630,593 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.01 Land, buildings and constructions 677,791 678,207 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.02 Machinery, equipment and installations 2,015,024 1,985,991 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.03 Furniture and fixtures 34,290 34,278 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.04 Vehicles 19,944 19,940 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.05 Electronic data equipment 154,114 152,429 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.06 Construction in progress 208,168 188,649 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.07 Forestation/reforestation 100,327 95,692 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.08 Accumulated depreciation (1,565,677) (1,524,593) --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.03 Deferred charges 7,989 8,792 --------------- --------------------------------------------------- ----------------------- -----------------------
6 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
02.02 - BALANCE SHEET - LIABILITIES AND SHAREHOLDERS' EQUITY (R$ THOUSAND) --------------- ----------------------------------------------- ------------------------ ------------------------ 1 - CODE 2 - DESCRIPTION 3 - 9/30/2002 4 - 6/30/2002 --------------- ----------------------------------------------- ------------------------ ------------------------ 2 Total liabilities and shareholders' equity 7,489,835 5,280,916 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01 Current liabilities 1,219,125 832,533 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.01 Financings 941,013 505,717 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.02 Debentures 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.03 Suppliers 126,325 114,737 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.04 Taxes, charges and contributions 84,930 89,960 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.05 Dividends payable 0 69,472 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.06 Provisions 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.07 Payables to related companies 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08 Other 66,857 52,647 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.01 Salaries payable 40,049 33,164 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.02 Deferred income tax and social contribution 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.03 Statutory participations 3,479 4,676 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.04 Other payables 23,329 14,807 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.05 Creditors under contract 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02 Long-term liabilities 2,988,332 1,506,450 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.01 Financings 1,119,214 1,033,411 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.01.01 Local financing 359,764 304,429 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.01.02 Foreign financing 759,450 728,982 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.02 Debentures 553,397 224,320 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.03 Provisions 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.04 Payables to related companies 1,149,265 76,846 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.04.01 Subsidiary companies 1,149,265 78,846 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05 Other 166,456 171,873 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.01 Provision for contingencies 91,849 99,041 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.02 Deferred income tax and social contribution 33,774 34,047 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.03 Other payables 23,502 25,454 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.04 Benefits to employees 13,331 13,331 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.05 Creditors under contract 4,000 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.03 Deferred income 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05 Shareholders' equity 3,282,378 2,941,933 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.01 Paid-up capital 1,335,120 1,335,120 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.02 Capital reserves 288,945 277,813 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.02.01 Capital restatement 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.02.02 Investment subsidies 261,271 250,139 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.02.03 Special reserve - Law 8200/91 21,487 21,487 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.02.04 Other 6,187 6,187 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.03 Revaluation reserves 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.03.01 Own assets 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.03.02 Associated/subsidiary companies' assets 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04 Revenue reserves 1,110,413 1,110,413 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.01 Legal 87,408 87,408 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.02 Statutory 1,023,005 1,023,005 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.03 Contingencies 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.04 Unrealized profits 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.05 Retention of profits 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.06 Special for undistributed dividends 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.07 Other 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.05 Retained earnings 547,900 218,587 --------------- ----------------------------------------------- ------------------------ ------------------------
7 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
03.01 - STATEMENT OF INCOME (R$ THOUSAND) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- Code Description 3 - 4 - 5 - 6 - 7/1/2002 1/1/2002 7/1/2001 to 1/1/2001 to to to 9/30/2001 9/30/2001 9/30/2002 9/30/2002 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.01 Gross sales and/or services 1,419,375 3,636,438 1,072,660 2,951,872 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.02 Deductions (296,844) (773,692) (241,508) (657,756) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.02.01 Taxes on sales (257,091) (674,837) (208,943) (564,568) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.02.02 Freights and discounts (39,753) (98,855) (32,565) (93,188) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.03 Net sales and/or services 1,122,531 2,862,746 831,152 2,294,116 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.04 Cost of sales and/or services rendered (650,497) (1,691,503) (480,574) (1,459,337) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.05 Gross profit 472,034 1,171,243 350,578 834,779 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06 Operating expenses/income (167,624) (508,530) (174,988) (417,112) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.01 Selling (64,941) (176,867) (59,050) (147,979) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.02 General and administrative (75,459) (209,569) (70,118) (198,619) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.03 Financial, net (443,603) (622,868) (123,504) (308,831) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.03.01 Financial income 53,367 83,718 21,742 47,291 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.03.02 Financial expenses (496,970) (706,586) (145,246) (356,122) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.04 Other operating income 2,255 6,084 2,060 7,978 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.05 Other operating expenses 0 0 0 0 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.06.06 Equity in the results of subsidiary companies 414,124 494,690 75,624 230,339 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.07 Operating profit 304,410 662,713 175,590 417,667 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.08 Non-operating results (13,757) (22,846) (5,051) (4,414) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.08.01 Income 0 0 0 637 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.08.02 Expenses (13,757) (22,846) (5,051) (5,051) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.09 Net income before taxation and participations 290,653 639,867 170,539 413,253 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.10 Provision for income tax and social (128) (48,942) (16,804) (31,111) contribution ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.11 Deferred income tax 37,734 40,480 (4,128) (4,523) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.12 Statutory participations and contributions (3,479) (8,155) (1,882) (5,543) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.12.01 Participations (3,479) (8,155) (1,882) (5,543) ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.12.02 Contributions 0 0 0 0 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.13 Reversal of interest on own capital 0 0 0 0 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- 3.15 Net income for the period 324,780 623,250 147,725 372,076 ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- Number of shares (thousand), excluding 114,118,471 114,118,471 113,491,706 113,491,706 treasury stock ------------- ------------------------------------------------ ------------ ------------ ------------- ----------- Net income per share 0.00285 0.00546 0.00130 0.00328 ------------- ------------------------------------------------ ------------ ------------ ------------- -----------
8 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 - NOTES TO THE QUARTERLY INFORMATION NOTE 1 - PRESENTATION OF THE FINANCIAL STATEMENTS The financial statements have been prepared in accordance with corporate law (Law No. 6404/76, amended by articles 4 and 5 of Law No. 9249/95) and CVM Instruction 248 using book values. NOTE 2 - SIGNIFICANT ACCOUNTING PRACTICES A) Available funds and marketable securities are recorded at cost plus income accrued up to the balance sheet date, applying the interest rates agreed with the financial institutions. B) Allowance for doubtful accounts is calculated based on the risk rating of receivables, which takes into consideration historical losses, individual situation of customers, and the evaluation of legal advisors and is considered sufficient to cover possible losses on receivables. C) Inventories are stated at the lower of market value and average production or purchase cost. D) Investments in subsidiaries are accounted for using the equity method. The result of the equity pick-up is recorded in an operating results account. E) Fixed assets are recorded at cost, net of depreciation. Depreciation is calculated on the straight-line basis and takes into consideration the estimated useful lives of assets. Interest on financings used to finance construction in progress is added to the cost of constructions. F) Deferred charges: amortizations are calculated on the straight-line method at rates determined based on the production of projects implemented in relation to installed capacities. G) Income tax and social contribution are calculated in conformity with legislation in force. Deferred income tax and social contribution are determined based on CVM Resolution 273/98. H) Other current and long-term liabilities are recorded at known or estimated amounts plus accrued charges and indexation readjustments, when applicable. NOTE 3 - CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements at September 30, 2002 include the accounts of Gerdau S.A. and the directly and indirectly controlled subsidiaries listed below: 9 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 - NOTES TO THE QUARTERLY INFORMATION Florestal Itacambira S.A. (100%), Florestal Rio Largo Ltda. (99%), Itaguai Com. Imp. e Exp. Ltda. (99%), Seiva S.A. - Florestas e Industrias (96%), Gerdau Laisa S.A. (99%), Gerdau Aza S.A. (99%), Industria Del Aciero S.A.-Indac (99%), Gerdau Chile Inversiones Ltda. (99%), Aceros Cox S.A. (100%), Axol S.A. (100%), Gerdau MRM Steel Inc. (100%), Gerdau Courtice Steel Inc. (100%), Gerdau Steel Inc. (100%), FLS Holdings Inc. (100%), GTL Equity Investments Corp. (100%), GTL Financial Corp. (100%), Gerdau GTL Spain S.L. (100%), Gerdau MRM Holdings Inc. (100%), Sociedad Industrial Puntana S.A. - SIPSA (38%), Sipar Aceros S.A. (38%), AmeriSteel Corporation (87%), Gerdau USA Inc. (100%), Aco Minas Gerais S.A. - Acominas (79%), Armafer Servicos de Contrucao Ltda. (100%), Prontofer Servicos de Construcao Ltda. (100%), Gerdau Participacoes Ltda. (100%), CEA Participacoes S.A. (99%), Gerdau Internacional Empreendimentos Ltda. - Grupo Gerdau (99%), Natsteel Brasil Ltda. (100%), Acominas Overseas Ltd. (79%), Aco Minas Com. Imp. Exp. S.A. (79%), and Laminadora do Sul S.A. (100%). Accounting practices used in preparing the consolidated financial statements which deserve note are as follows: a) Gerdau S.A. and its subsidiaries adopt consistent accounting practices to record operations and value their assets and liabilities. The financial statements of foreign companies are translated using the exchange rate in effect on the balance sheet date; b) Balance sheet accounts arising from transactions between consolidated companies have been eliminated; c) Holdings of minority shareholders in subsidiaries are shown separately. The Company records goodwill and negative goodwill in its directly or indirectly controlled subsidiary companies which is being amortized as the assets that generated them are realized or based on projections of future results, as follows: 9.30. 2002 6.30.2002 --------------- --------------- Goodwill in the investment account 437,494 290,940 Goodwill in the fixed assets account 368,318 357,784 Negative goodwill in the fixed assets account (300,119) (280,012) 10 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 - NOTES TO THE QUARTERLY INFORMATION NOTE 4 - DEFERRED INCOME TAX AND SOCIAL CONTRIBUTION
------------------------------------------------------------------------------------------------------------------ Company ------------------------------------------------------------------------------------------------------------------ DEFERRED BALANCES R$ THOUSAND ------------------------------------------------------------------------------------------------------------------ September 30, 2002 June 30, 2002 ---------------------------------------- -------------------------------------------- ASSETS ASSETS ----------------------------------------- ------------------------------------------- Social Social Income tax contribution Total Income tax contribution Total ------------- -------------- ----------- -------------- --------------- ---------- Current 26,583 11,108 37,691 2,273 790 3,063 Long term 25,122 6,492 31,614 19,283 4,965 24,248 ------------- -------------- ----------- -------------- --------------- ---------- 51,705 17,600 69,305 21,556 5,755 27,311 LIABILITIES LIABILITIES ---------------------------------------- -------------------------------------------- Social Social Income tax contribution Total Income tax contribution Total ------------- -------------- ----------- -------------- --------------- ---------- Current - - - - - - Long term 29,721 4,053 33,774 30,364 3,683 34,047 ------------- -------------- ----------- -------------- --------------- ---------- 29,721 4,053 33,774 30,364 3,683 34,047
BASIS FOR RECOGNITION OF DEFERRED TAXES
R$ THOUSAND ------------------------------------------------------------- SEPTEMBER 30, 2002 JUNE 30, 2002 ---------------------------- ------------------------------- INCOME SOCIAL INCOME SOCIAL TAX CONTRIBUTION TAX CONTRIBUTION ----------- --------------- ------------ ------------------ ASSETS Tax loss carryforwards 94,684 - - - Social contribution negative basis - 112,081 - - Provision for tax contingencies 47,791 47,791 55,157 55,157 Provision for expenses (commissions, etc.) 11,341 11,341 8,783 8,783 Provision for losses - Eletrobras loans 39,675 11,009 22,284 - Provision for post-employment benefits 13,332 13,332 - - ----------- --------------- ------------ ---------------- 206,823 195,554 86,224 63,940 LIABILITIES Accelerated depreciation with tax incentive 102,051 29,997 102,712 24,939 Capital gain 16,834 15,036 18,207 15,987 ----------- --------------- ------------ ---------------- 118,885 45,033 121,455 40,926
11 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION --------------------------------------------------------------------------------
RECONCILIATION OF RESULT R$ THOUSAND ------------------------------------------------------------------------------- SEPTEMBER 30, 2002 SEPTEMBER 30, 2001 ------------------------------------------------------------------------------- SOCIAL SOCIAL INCOME TAX CONTRIBUTION TOTAL INCOME TAX CONTRIBUTION TOTAL ------------------------------------------------------------------ ------------ Pretax income 631,712 631,712 631,712 407,710 407,710 407,710 Nominal tax rate 25% 9% 34% 25% 9% 34% Income tax and social contribution expense (157,928) (56,854) (214,782) (101,928) (36,694) (138,622) Tax effect on: - Equity pick-up 123,673 44,522 168,195 57,304 20,629 77,933 - Interest on own capital 19,971 7,189 27,160 20,795 7,486 28,281 - Permanent differences (net) 7,857 3,108 10,965 (2,624) (602) (3,226) ------------------------------------------------------------------ ------------ Income tax and social (6,427) (2,035) (8,462) (26,453) (9,181) (35,634) contribution ================================================================== ============ Current (36,631) (12,311) (48,942) (23,756) (7,355) (31,111) Deferred 30,204 10,276 40,480 (2,697) (1,826) (4,523)
---------------------------------------------------------------------------------------------------------------- CONSOLIDATED ---------------------------------------------------------------------------------------------------------------- Deferred balances R$ THOUSAND -------------------------------------------------------------------------------------------- SEPTEMBER 30, 2002 JUNE 30, 2002 ----------------------------------------- ------------------------------------------------- ASSETS ASSETS ----------------------------------------- ------------------------------------------------- Social Social Income tax contribution Total Income tax contribution Total ------------- -------------- ----------- -------------- --------------- ---------------- Current 64,662 17,053 81,715 35,355 6,645 42,000 Long term 147,356 26,467 173,823 126,222 25,426 151,648 ------------- -------------- ----------- -------------- --------------- ---------------- 212,018 43,520 255,538 161,577 32,071 193,648 LIABILITIES LIABILITIES ----------------------------------------- ------------------------------------------------- Social Social Income tax contribution Total Income tax contribution Total ------------- -------------- ----------- -------------- --------------- ---------------- Current 1,889 - 1,889 1,368 - 1,368 Long term 500,893 19,559 520,452 399,185 18,943 418,128 ------------- -------------- ----------- -------------- --------------- ---------------- 502,782 19,559 522,341 400,553 18,943 419,496
12 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION --------------------------------------------------------------------------------
BASIS FOR RECOGNITION OF DEFERRED TAXES R$ THOUSAND ------------------------------------------------------------- SEPTEMBER 30, 2002 JUNE 30, 2002 ------------------------------ ------------------------------ INCOME TAX SOCIAL INCOME TAX SOCIAL CONTRIBUTION CONTRIBUTION ------------ ---------------- ------------ ---------------- ASSETS Income tax loss carryforwards 410,800 - 319,107 - Social contribution negative basis - 431,859 - 322,781 Provision for tax contingencies 357,671 49,837 291,254 56,720 Provision for expenses (commissions, etc.) 17,049 11,428 12,576 8,876 Provision for losses - Eletrobras loans 40,993 11,009 23,602 - ------------ ---------------- ------------ ---------------- 826,513 504,133 646,539 388,377 LIABILITIES Accelerated depreciation with tax incentive 1,359,737 44,514 1,059,001 39,463 Capital gain 16,834 15,036 18,207 15,987 Amortized negative goodwill 196,592 157,759 194,392 155,023 ------------ ---------------- ------------ ---------------- 1,573,163 217,309 1,271,600 210,473
Reconciliation of result R$ THOUSAND ------------------------------------------------------------------------------- SEPTEMBER 30, 2002 SEPTEMBER 30, 2001 ------------------------------------------------------------------------------- SOCIAL SOCIAL INCOME TAX CONTRIBUTION TOTAL INCOME TAX CONTRIBUTION TOTAL ------------------------------------------------------------------------------- Pretax income 659,654 659,654 659,654 423,658 423,658 423,658 Nominal tax rate 25% 9% 34% 25% 9% 34% Income tax and social contribution expense (164,914) (59,369) (224,283) (105,915) (38,129) (144,044) Tax effect on: - Tax rate difference for foreign companies (45,887) (3,978) (49,865) 1,498 (31) 1,467 - Equity pick-up 147,060 52,942 200,002 77,893 28,041 105,934 - Interest on own capital 19,999 7,200 27,199 20,866 7,512 28,378 - Permanent differences (net) 6,355 3,824 10,179 (27,190) (18,281) (45,471) ------------------------------------------------------------------------------- Income tax and social (37,387) 619 (36,768) (32,848) (20,888) (53,736) contribution =============================================================================== Current (36,128) (12,444) (48,572) (25,084) (13,058) (38,142) Deferred (1,259) 13,063 11,804 (7,764) (7,830) (15,594)
The Company appropriated the income tax and social contribution tax credits on the provision for post-employment benefits, recorded in the December 31, 2001 balance sheet, and the effect of R$4,533 thousand was recorded in shareholders' equity in the current quarter. 13 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION The deferred income tax and social contribution tax credits, recorded in long-term, were mainly calculated based on tax contingencies resulting from labor and tax processes, which will be realized as and when processes are settled. In the consolidated are included, besides the amounts relating to the Company, tax credits on tax losses of subsidiary company Acominas, which are expected to be realized up to 2005 based on profit projections. NOTE 5 - OTHER ACCOUNTS RECEIVABLE
September 30, 2002 June 30, 2002 -------------------------------- ------------------------------ Company Consolidated Company Consolidated -------------- ---------------- ------------ ---------------- Receivable under contract 17,943 22,371 12,457 19,682 Assets not for use 6,237 6,675 6,188 6,988 Reforestation projects 1,501 3,278 1,801 3,422 Prepaid expenses 17,609 64,282 13,327 46,551 Insurance receivable - Acominas - 150,582 - 114,270 Other 4,647 23,945 5,595 19,496 -------------- ---------------- ------------ ---------------- 47,937 271,133 39,368 210,409 ============== ================ ============ ================
NOTE 6 - INVESTMENTS IN SUBSIDIARY AND ASSOCIATED COMPANIES
ARMAFER GERDAU GERDAU SERVICOS DE INTERNACIONAL CONSTRUCAO EMPREENDIMENTOS PARTICIPACOES NAME LTDA. LTDA. * LTDA. ** OTHER --------------- ------------------- ---------------- ------------ Number of quotas 97,894,269 358,644,032 379,941,045 Interest in voting capital 100% 99.29% 89.98% Interest in total capital 100% 99.29% 89.98% Net equity 143,530 2,697,876 558,535 Profit 3,589 544,220 (1,569) Intercompany loan balances - assets (3,972) (9) (55) 20,287 Intercompany loan balances - liabilities - - - 1,149,265 Equity pick-up for the quarter (3,483) 413,731 3,843 33 Equity pick-up accumulated in the year 3,588 545,596 (1,152) (53,342) Investment balance 143,530 2,691,922 502,551 16,916 Advance for future capital increase 48,862 278,418 441,948 1,632 Total investment 192,392 2,970,340 944,499 18,548
* - Company with foreign investments. ** - Company with investment in Aco Minas Gerais S.A. - Acominas 14 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- The negative equity in the column Other basically refers to subsidiary Sociedad Industrial Puntana S.A. (SIPSA), whose ownership was transferred in the first quarter of this year. On September 6, 2002, the Company, through subsidiary GTL Equity Investments Corp., used the option right to purchase 24.79% of the capital of Aco Minas Gerais S.A. - Acominas, at an amount equivalent to US$ 211 million. This transaction resulted in goodwill of US$ 64.1 million (R$ 249 million), which was fully amortized during the quarter. In September, subsidiary company Gerdau Aza S.A. and Cia. Siderurgica Uachipato S.A. jointly acquired, in equal parts, Comercial Acindar Chile Ltda., for US$ 4.8 million. The main activities are the cutting and bending of bars and rods for the civil construction sector and the production of arc welded nettings. The intercompany loan balances are restated using the average weighted cost of borrowings. As of September 30, 2002, this balance was comprised as follows: BALANCE ----------------- Armafer Servicos de Construcao Ltda. (3,972) Seiva S.A. - Florestas e Industrias (1,671) Fundacao Gerdau 7,837 Sipar Aceros S.A. 13,632 Other 425 ----------------- Total assets 16,251 ================= GTL Equity Investments Corp. (103,181) GTL Financial Corp. (1,046,084) ----------------- Total liabilities (1,149,265) ================= Because the operations of Co-Steel Inc. and North America Gerdau group companies were unified, the Company assumed all the financings obtained by Canadian subsidiary companies upon acquisition of Ameristeel Corp. amounting to US$ 266 million, equivalent, at September 30, 2002, to R$ 1,046 million. The debt was assumed on capitalization of the holding company formed out of this union. 15 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION ------------------------------------------------------------------------------- Related company transactions are summarized as follows:
COMPANY PURCHASES SALES ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE ------------- ------------ --------------------- ---------------- Armafer Servicos de Construcao Ltda. - 52 20 - Seiva S.A. - Florestas e Industrias - 14 - - Aco Minas Gerais S.A. - Acominas 92,993 3,536 502 2,679 Gerdau Laisa S.A. - 1,391 - - Gerdau Aza S.A. - 2,542 - - Sipar Aceros S.A. - 11,494 - -
Purchases and sales of inputs and products are made using conditions and terms comparable to those applicable to transactions with unrelated companies. NOTE 7 - DEFERRED CHARGES Deferred charges (parent company and consolidated) comprise pre-operating expenses for projects relating to steel mill renovations, reforestations, research, development, and reorganization. Amortization is on the straight-line basis at rates determined based on the production of projects implemented in relation to installed capacities. 16 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- NOTE 8 - FINANCIAL INSTITUTIONS Financings are as follows:
ANNUAL PARENT COMPANY CONSOLIDATED ------------------------- -------------------------- charges (%) 9.30.02 6.30.02 9.30.02 6.30.02 ------------------ ----------- ------------ ------------ ------------ SHORT TERM Working capital financing (R$) TJLP + 10% 678 651 1,023 960 Fixed assets financing (R$) 2.00 to 11.02% - - 1,831 1,722 Working capital financing (US$) 4.83 to 10.80% 372,165 50,483 2,342,906 1,096,031 Fixed assets financing and other (US$) 2.4 to 7.2% - - 1,991 1,642 Working capital financing (AR$) 10.8% - - 4,519 7,664 Fixed assets financing (AR$) 10.8% - - 1,467 1,656 Working capital financing (Cdn$) 5.61% - - 97,819 78,697 Working capital financing (Clp$) 7.3% - - 54,045 53,115 Short-term portion of long-term financing 568,170 454,583 1,464,045 998,928 ----------- ----------- ------------- ------------ 941,013 505,717 3,969,646 2,240,415 LONG TERM Working capital financing (R$) 9.25 to 10.00% - - 70,213 36,436 Fixed assets financing and other (R$) TJLP + 11.86% 462,072 403,681 630,055 560,128 Fixed assets financing and other (US$) 6.07 to 11.02% 429,215 322,450 868,737 608,199 Fixed assets financing (Clp$) 6.9 to 8.6% - - 149,805 111,427 Working capital financing (US$) 3.00 to 8.36% 796,097 761,863 2,087,128 1,646,987 Working capital financing (Clp$) 6.9% - - 21,091 5,875 Investment financing (US$) 5.53% - - 240,330 209,392 Fixed assets financing (AR$) 10.38% - - 66 79 (-) Short-term portion (568,170) (454,583) (1,464,045) (998,928) ----------- ----------- ------------- ------------ 1,119,214 1,033,411 2,603,380 2,179,595 ----------- ----------- ------------- ------------ Total financings 2,060,227 1,539,128 6,573,026 4,420,010 =========== =========== ============= ============
Summary by currency:
PARENT COMPANY CONSOLIDATED -------------------------------- ------------------------------ SEP/2002 JUN/2002 SEP/2002 JUN/2002 --------------- --------------- -------------- -------------- Brazilian reais (R$) 462,749 404,332 703,122 599,246 U.S. dollar (US$) 1,597,478 1,134,796 5,541,092 3,562,251 Canadian dollar (Cdn$) - - 97,819 78,697 Chilean peso (Clp$) - - 224,941 170,417 Argentine peso (AR$) - - 6,052 9,399 -------------- -------------- --------------- -------------- 2,060,227 1,539,128 6,573,026 4,420,010 ============== ============== =============== ==============
17 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- FINAME (Government Agency for Machinery and Equipment Financing) financings are guaranteed by lien on the assets financed. Other financings are guaranteed by collateral signatures (type of surety) of controlling companies. Eurobond contracts include covenants limiting financing to four times the cash generation capacity (EBITDA - Earnings before Taxes, Depreciation, and Amortization). Under the agreement with the National Bank for Economic and Social Development (BNDES) to finance the increase in the holding in Acominas, financing is limited to five times EBITDA. Prepayment transactions include covenants limiting financing to four times EBITDA. Subsidiaries Gerdau Courtice Steel Inc. and Gerdau MRM Steel Inc. have access to revolving credit facilities totaling Cdn$ 73 million and with interest rates that closely approximate market rates for prime customers of from 2% to 3% p.a. Subsidiary Ameristeel has access to revolving credit facilities totaling US$ 260 million with interest of 4.1% p.a. The penalty for noncompliance with the covenants mentioned above is the accelerated maturity of the finance agreement. Consolidated EBITDA is used for measuring purposes. The schedule for payment of the long-term portion of financings is as follows: PARENT COMPANY CONSOLIDATED ---------------- ------------------ 2003 177,613 448,872 2004 454,363 1,290,188 2005 191,158 315,931 2006 207,621 405,375 2007 17,525 64,696 After 2007 70,934 78,318 ---------------- ------------------ Total 1,119,214 2,603,380 18 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- NOTE 9 - DEBENTURES Company and consolidated
APPROVED AT THE SHAREHOLDERS' NUMBER NUMBER IN Issuer MEETING ISSUED PORTFOLIO MATURITY --------------------- ------------------ ------------------ ------------------- Gerdau S.A. 5.27.1982 48,000 30,221 6.1.2011 6.10.1983 42,000 42,000 2.28.2012 7.14.1982 22,800 16,261 7.1.2012 11.11.1982 59,988 42,756 5.2.2013 6.10.1983 41,880 19,104 9.1.2014 2.27.1981 6,450 6,450 11.30.2015 6.29.1990 50,000 45,338 6.1.2020 11.23.2001 30,000 - 11.1.2008 Seiva S.A. 11.11.1981 12,000 12,000 11.1.2015
During the quarter, the Company carried out a public distribution of debentures of the 13th issue, totaling R$ 300 million. The characteristics of the debentures are presented in form 10.01 of this quarterly information. NOTE 10 - FINANCIAL INSTRUMENTS a) General comments - Gerdau S.A. and its subsidiaries enter into transactions involving financial instruments, the risks of which are managed through financial position strategies and exposure limit controls. All transactions are fully recognized in the books and restricted to the instruments listed below: - Financial investments - are recognized at their redemption value as of the balance sheet date; - Investments and loans between subsidiary and associated companies - are commented on and presented in Note 6; - Financings - are commented on and presented in Note 8; - Debentures - are commented on and presented in Note 9; - Financial derivatives - in order to minimize the effects of fluctuations in foreign exchange rates on its liabilities, Gerdau S.A entered into swap transactions that were converted into Brazilian reais on the contract date and linked to changes in the interbank deposit rate (CDI). Swap contracts are listed below: 19 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION --------------------------------------------------------------------------------
Parent company and consolidated --------------------------------------------------------------------------------------------------------------------- CONTRACT DATE TYPE AMOUNT CDI PORTION MATURITY (US$ THOUSAND) ----------------------- ------------------------------------------- --------------------- ------------------------ 2.12.2001 Eurobonds 50,000 84.5% 5.20.2004 2.12.2001 Eurobonds 50,000 87.0% 5.20.2004 7.18.2001 Eurobonds 30,000 103.7% 5.20.2004 3.30.2001 Import 9,148 100.0% 10.4.2004 12.5.2001 Import 12,559 100.0% 12.23.2002 1.8.2002 Import 15,752 100.0% 3.17.2004 8.29.2002 Import 399 70.0% 8.25.2003 9.5.2002 Import 243 79.5% 9.5.2003 9.6.2002 Import 218 72.0% 9.5.2003 9.11.2002 Import 306 78.0% 9.11.2003 9.12.2002 Import 395 56.0% 9.12.2003 9.13.2002 Import 202 54.0% 9.12.2003 7.16.2001 Prepayment 28,584 85.4% 3.1.2006 7.18.2001 Prepayment 9,531 92.8% 3.1.2006 2.20.2002 Working capital 54,000 106.0% 6.20.2005 4.17.2002 Working capital 15,000 104.5% 4.11.2003 5.6.2002 Working capital 10,000 105.0% 4.24.2003 5.10.2002 Working capital 15,000 106.0% 3.3.2004 6.3.2002 Working capital 20,000 101.5% 5.28.2003 8.6.2002 Working capital 10,000 105.0% 5.28.2003 2.5.2002 Investments 50,000 67.5% 10.29.2004 2.6.2002 Investments 50,000 67.9% 10.29.2004 2.6.2002 Investments 50,000 68.1% 10.29.2004 2.7.2002 Investments 66,000 70.6% 10.29.2004 5.6.2002 Suppliers 20,000 97.0% 4.1.2004 5.7.2002 Suppliers 25,000 100.0% 4.1.2004 5.8.2002 Suppliers 40,000 100.0% 7.1.2004 8.8.2002 Suppliers 60,000 100.0% 7.28.2004 8.26.2002 Suppliers 10,000 37.7% 2.21.2003 8.27.2002 Suppliers 25,000 39.6% 3.25.2003 8.29.2002 Suppliers 15,000 20.0% 4.25.2003 9.4.2002 Suppliers 10,000 61.5% 9.1.2003 9.12.2002 Suppliers 5,000 48.0% 9.5.2003 9.13.2002 Suppliers 5,000 46.0% 9.8.2003 9.16.2002 Suppliers 5,000 36.5% 7.14.2003 9.19.2002 Suppliers 10,000 20.5% 6.16.2003 9.25.2002 Suppliers 10,000 38.7% 9.22.2003 9.26.2002 Suppliers 5,000 3.2% 6.3.2003 9.27.2002 Suppliers 9,000 25.0% 7.24.2003 9.30.2002 Suppliers 10,000 -131.46% 12.30.2002
20 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- b) Market value - the market values of financial instruments are as follows:
PARENT COMPANY CONSOLIDATED -------------------------------- ---------------------------------- Book value Market value Book value Market value --------------- ---------------- --------------- ---------------- Financial investments 344,432 344,432 1,814,307 1,814,307 Credits on swap transactions 27,831 27,831 27,831 27,831 Suppliers 126,325 126,325 738,209 738,209 Eurobonds 308,708 307,333 16,558 34,717 Import financing 430,911 414,959 430,911 414,959 Prepayment financing 153,009 157,309 830,351 797,289 Working capital financing 334,380 307,897 334,380 307,897 Other financing 833,219 833,219 4,960,826 4,960,826 Debentures 553,397 553,397 534,240 534,240 Investments 4,139,394 4,139,394 475,208 475,208 Related companies (assets) 16,251 16,251 17,234 17,234 Related companies (liabilities) 1,149,265 1,149,265 - - --------------------------------------------------------------------------------------------------------------------
The market value of Eurobonds was obtained using the quotation of the securities in the secondary market. The market value of swap transactions was obtained based on future income projections for each contract, which were calculated based on the present value (September 30, 2002) of forward US dollar + coupon (assets) and forward CDI (liabilities) using the projected future CDI rate for each maturity. Swap transactions related to financing contracts are classified together with the transactions which have originated them. Contracts not linked to such financing have been recorded at their market value under the heading Credits on swap transactions, in long-term receivables, with a contra-entry to financial income. The companies believe that the values of other financial instruments which are recognized in the books at net contracted value are substantially similar to those that would be obtained if they were negotiated in the market. However, because the markets for these instruments are not active, differences could exist if it was decided to settle in advance. c) Risk factors that could affect company businesses Price risk of goods: this risk is related to the possibility of fluctuations in the prices of products sold or in the prices of raw materials and other input materials used in the production process. Because it operates in the commodities market, sales and cost of goods sold could be affected by changes in international prices. To minimize this risk, price fluctuations are constantly monitored in the domestic and international markets. 21 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- Interest rate risk: this risk arises as a result of the possibility of losses (or gains) due to fluctuations in interest rates applied to company assets (invested) and liabilities assumed in the market. In order to minimize possible impacts resulting from interest rate fluctuations, the policy is to use variable rates (such as LIBOR and CDI) and periodically renegotiate contracts to adjust them to the market. It is not the policy to contract hedges in order to protect against interest rate fluctuations. Exchange rate risk: this risk is related to the possibility of fluctuations in foreign exchange rates affecting financial expenses (or income) and the liability (or asset) balance of contracts denominated in a foreign currency. In order to hedge these fluctuations, a policy of contracting swap operations as stated in item "a" above is adopted. Credit risk: this arises from the possibility that the Company might not receive amounts from sales transactions or deposits with financial institutions involving financial investment transactions. In order to mitigate this risk, detailed analyses of the financial position of customers are made, credit limits established, and balances constantly monitored. With regard to financial investments, they are made only in institutions that have been assigned a low credit risk by rating agencies. Furthermore, each institution has a maximum limit for investment determined by the credit committee. NOTE 11 - RENEGOTIATED OVERDUE TAXES (REFIS) On December 6, 2000, the companies enrolled in the Tax Recovery Program (REFIS) to pay PIS and COFINS (turnover taxes) in installments. The balances of these tax debts are recorded under taxes and contributions, in current liabilities, and under accounts payable in long-term liabilities. The balances of renegotiated taxes, the payment of which has been divided into 60 installments, are as follows:
Parent company and consolidated ----------------------------------------------------- PRINCIPAL INTEREST TOTAL ----------------- ---------------- ---------------- Social Integration Program (PIS) 41,428 10,616 52,044 Social Contribution on Revenues (COFINS) 9,835 2,520 12,355 ----------------- ---------------- ---------------- Total 51,263 13,136 64,399 Short-term 8,765 2,081 10,846 Long-term 18,992 4,508 23,500 ----------------- ---------------- ---------------- Total 27,757 6,589 34,346
Taxes, contributions and other liabilities are paid timely, which is a basic requirement to remain enrolled in the REFIS program. 22 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- To guarantee this installment payment program, the land and buildings of the Usina de Acos Especiais Piratini Unit located in the municipality of Charqueadas, state of Rio Grande do Sul, amounting to R$ 78,494 thousand were pledged. Income Tax and Social Contribution tax credits of third parties offset against fines and interest on consolidation of debts in the REFIS program as of December 6, 2000 amounted to R$ 57,040 thousand, for which R$ 4,351 thousand was paid for these credits. There was no use of own tax credits. The negative net effect on the results of operations for 2000 arising from enrollment in the REFIS alternative installment regime was R$ 6,338 thousand. NOTE 12 - PROVISION FOR CONTINGENCIES The companies are parties in labor, civil, and tax processes. The latter relate to certain taxes and contributions. Based on the opinion of the legal advisors, management believes that the provision is sufficient to cover probable losses and is reasonably estimated based on unfavorable court decisions and that final decisions would not have significant effects on the financial position as of September 30, 2002.
PARENT COMPANY CONSOLIDATED -------------------------------- ------------------------------ 9.30.2002 6.30.2002 9.30.2002 6.30.2002 --------------- --------------- -------------- -------------- Tax contingencies 77,328 84,520 98,629 95,957 Labor contingencies 14,203 14,203 24,408 24,408 Civil contingencies 318 318 7,210 6,710 -------------- -------------- --------------- --------------- Total 91,849 99,041 130,247 127,075 ============== ============== =============== ===============
NOTE 13 - POST-EMPLOYMENT BENEFITS a) Pension plan - defined benefit The Company and other Group subsidiaries in Brazil are the co-sponsors of defined benefit pension plans that cover almost all employees in Brazil (Gerdau Plan and Acominas Plan). Also, the Canadian and American subsidiaries sponsor defined benefit plans (Canadian Plan and American Plan) that cover almost all their employees. In addition to the pension plan, the American Plan establishes specific health benefits for retired employees, so long as they retire after a certain age and after completing a specific number of years of service. The American subsidiary has the right to modify or eliminate these benefits. Contributions are based on amounts determined on an actuarial basis. 23 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- The Gerdau Plan is managed by Gerdau - Sociedade de Previdencia Privada, an entity created by the Gerdau Group for this purpose. The assets of the Gerdau Plan consist of investments in bank deposit certificates, securities and mutual investment funds. The Acominas Plan is administered by Fundacao Acominas de Seguridade Social (Acos), a private pension fund created for this specific purpose by Acominas. The Canadian and American plans are managed by Royal Trust/Great West Life and Wells Fargo, respectively. Current expenses of the defined benefit pension plan through September are as follows:
Parent company Consolidated ------------------ ----------------- 2002 2002 ------------------ ----------------- Current cost of service 3,917 17,351 Interest cost 9,118 49,596 Return on plan assets (9,693) (59,733) Amortization of cost of past service - 239 Amortization of (gain) loss - 16 ------------------- ----------------- Net cost of pension plan 3,342 7,469 =================== ================= A reconciliation of assets and liabilities of the plans is presented below: Parent company Consolidated ------------------ ------------------ 2002 2002 ------------------ ------------------ Total liabilities (138,868) (852,867) Fair value of plan assets 142,369 875,735 Asset (liability) balance 3,501 22,868 Unrecognized gains or (losses) - 42,864 Cost of past service - (754) Other - (479) ----------------- ------------------ Total assets (liabilities), net 3,501 64,499 ================= ================== Actuarial assets 3,501 102,765 Pension plan liabilities recognized in the balance sheet - (38,266) ----------------- ------------------ Assets (liabilities), net 3,501 64,499 ================= ==================
24 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- Changes in plan assets and actuarial liabilities were as follows:
Parent company Consolidated ---------------- ------------------ 2002 2002 ---------------- ------------------ Change in benefits payable Benefits payable at the beginning of the period 125,833 785,920 Cost of service 3,917 17,351 Interest cost 9,118 49,596 ----------------- ------------------ Benefits payable at the end of the period 138,868 852,867 ================= ================== Parent company Consolidated ----------------- ------------------ 2002 2002 ----------------- ------------------ Change in benefit assets Fair value of plan assets at the beginning of the period 132,676 816,002 Return on plan assets 9,693 59,733 ----------------- ------------------ Fair value of plan assets at the end of the period 142,369 875,735 ================= ==================
The table below shows a summary of the assumptions made to calculate and record the defined benefit plan for both parent company and consolidated purposes:
Gerdau plan Acominas plan Canadian plan American plan -------------- -------------- ---------------- ----------------- Average discount rate 9.73% 10.24% 7.00% 7.25% Rate of increase of remuneration 8.68% 7.75% 2.50% - 4.00% 4.50% Expected rate of return on assets 9.73% 10.24% 7.00% - 7.50% 9.25%
b) Pension plan - defined contribution The parent company is also the co-sponsor of a defined contribution pension plan administered by Gerdau - Sociedade de Previdencia Privada. Contributions are based on a percentage of the compensation of employees. Subsidiary Ameristeel Corp. has a pension plan of this type. c) Retirement and separation benefits Executives receive rewards on retirement or separation. The amounts corresponding to such compensation have been provisioned. 25 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- Taking all types of benefits granted to employees into consideration, the position of assets and liabilities was as follows as of September 30, 2002: PARENT COMPANY CONSOLIDATED -------------- ----------------- Pension plan liabilities - defined benefit - 73,428 Retirement and separation benefits payable 13,331 13,332 -------------- ----------------- Total actuarial liabilities 13,331 86,760 Actuarial assets 3,501 102,765 NOTE 14 - CAPITAL At September 30, 2002, subscribed and paid-up capital of R$ 1,335,120 thousand is comprised of 39,590,941,783 common and 74,527,528,780 preferred shares with no nominal value. NOTE 15 - OTHER OPERATING INCOME The consolidated amount of R$ 52 million for the quarter (R$ 101 million for nine-months) is mainly comprised of loss of profits insurance claims caused by damage to the Acominas blast furnace in March 2002. NOTE 16 - SUBSEQUENT EVENT On September 23, 2002, the shareholders of Co-Steel Inc. approved the unification of operations of North American Gerdau group companies and Co-Steel. This union was made effective on October 1, 2002. Accordingly, its effects will have an impact on the financial statements only from the fourth quarter of 2002. 26 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
04.01 NOTES TO THE QUARTERLY INFORMATION -------------------------------------------------------------------------------- NOTE 17 - CASH FLOWS
JANUARY TO SEPTEMBER ------------------------------------------------------------ Parent company Consolidated ----------------------------- ----------------------------- 2002 2001 2002 2001 ------------- -------------- ------------- -------------- Net income 623,250 372,076 622,886 369,922 Equity pick-up (494,690) (230,339) (588,241) (311,570) Provision for credit risks - 15,374 2,376 14,902 Gain and/or loss on sale of fixed assets 4,890 19,253 5,963 16,821 Gain and/or loss on sale of investments 4,087 - 4,089 - Debt indexation 526,733 196,918 827,403 287,522 Depreciation and amortization 137,343 131,177 385,538 303,931 Investment subsidies 33,732 25,156 33,732 25,288 Income tax and social contribution (50,903) 18,731 (61,303) 75,420 Interest on debt 157,547 134,326 331,470 195,602 Contingencies/judicial deposits (7,536) 7,462 3,783 4,808 Changes in trade accounts receivable (139,626) (100,542) (380,026) (155,147) Changes in inventory (23,300) (40,233) (68,652) (7,495) Changes in suppliers 24,663 14,980 202,594 123,032 Other operating activity accounts 26,128 (16,909) (163,363) (11,642) ------------- -------------- ------------- -------------- Net cash from operating activities 822,318 547,430 1,158,249 931,394 Purchase/sale of fixed assets (169,366) (125,796) (426,581) (260,127) Increase in deferred charges (1,188) (1,503) (6,820) (2,346) Purchase/sale of investments (1,902,630) 52,391 (1,011,841) (11,191) Dividends 13,171 - 43,957 - ------------- -------------- ------------- -------------- Cash investments (2,060,013) (74,908) (1,401,285) (273,664) Suppliers - fixed assets (10,229) (1,778) (27,146) (1,721) Working capital financing 402,726 (7,423) 503,494 12,227 Debentures 291,579 (11,885) 287,356 (11,885) Increase in financing of permanent assets 572,255 60,461 1,466,921 395,489 Amortization of financing of permanent assets (395,081) (111,381) (1,027,369) (687,339) Payment of interest on financing (82,260) (75,747) (242,203) (134,614) Loans with related companies 854,461 (31,963) (15,535) (14,268) Payment of dividends/interest and profit sharing (200,036) (125,660) (253,595) (133,345) ------------- -------------- ------------- -------------- Net cash from financial activities 1,433,415 (305,376) 691,923 (575,456) Change in cash balance 195,720 167,146 448,887 82,274 Cash and cash equivalents At the beginning of the period 177,400 188,188 1,012,822 704,169 Cash adjustment at the beginning of the period 501,149 149,114 At the end of the period 373,120 355,334 1,962,858 935,557
27 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
05.01 - Comments on the Quarterly Performance -------------------------------------------------------------------------------- The main highlights for the quarter are as follows: Net income of Gerdau S.A. reached R$ 324.8 million, 73.7% higher than the second quarter, and was R$ 623.3 million in the first nine months, a 67.5% increase compared to the same period of 2001. Consolidated sales during the quarter reached R$ 1.4 billion, 20.2% higher than in the second quarter. Up to September 2002, sales reached R$ 3.6 billion, that is, 23.2% higher than in the same period of 2001. EBITDA (Earnings before Taxes, Depreciation, and Amortization) reached R$ 378.1 million, accumulating R$ 922.2 million in 2002. The Board of Directors has another member since October 10, 2002. The shareholders approved Mr. Andre Lara Resende, and the Board now has eight members, of whom three are independent. PRODUCTION Production of crude steel totaled 962.7 thousand tons from July to September, 10.4% higher than in the second quarter. Rolled steel production reached 891.4 thousand tons, a 8.8% increase compared to the volume produced in the second quarter. SALES Total sales in the quarter reached 1.1 million tons, 11.1% higher than in the previous quarter. In the domestic market, 956 thousand tons were sold from July to September, an increase of 15.3%. Exports totaled 171 thousand tons, 8.0% less than in the second quarter. RESULTS Net sales totaled R$ 1.1 billion in the third quarter of 2002, an increase of 20.5% compared to the previous quarter, and is mainly attributable to an improvement in the mix of products sold in the domestic market. Gross profit increased from R$ 364.1 million in the second quarter to R$ 472.0 million in the third quarter. Because the cost of sales increased by only 14.6% in relation to 20.5% in net sales, the gross margin increased from 39.07% in the second quarter to 42.05% in the period from July to September. 28 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
05.01 COMMENTS ON THE QUARTERLY PERFORMANCE -------------------------------------------------------------------------------- Selling, general and administrative expenses together totaled R$ 140.4 million (+7.6% in the quarter), a much lesser increase compared to sales reached in the quarter. Because the cost of sales and operating expenses increased much less in relation to net sales, the EBITDA margin increased from 29.95% in the second quarter to 33.69% in the third quarter. EBITDA for the quarter reached R$ 378.1 million, 35.5% higher than in the previous quarter. The devaluation of the Brazilian real in relation to the U.S. dollar of 36.9% had an adverse impact on net financial expenses for the third quarter which totaled R$ 443.6 million, that is, 239.4% more than in the second quarter. If on the one side the Brazilian real devaluation had an adverse impact on financial expenses, on the other side it also resulted in a significant valuation of the Company's investments abroad. Consequently, equity in the earnings of foreign subsidiaries amounted to R$ 414.1 million in the third quarter. The provision for income tax and social contribution presented a deferred asset of R$ 37.6 million for the quarter due to deductible exchange effects. Net income reached R$ 324.8 million in the third quarter of 2002, 73.7% higher than in the prior quarter. INVESTMENTS With the objective of offering high quality products at competitive prices, the Company has maintained its investment program to improve productivity, upgrade technology of plants, and develop new products. Investments in fixed assets during the third quarter amounted to US$ 20.6 million, totaling US$ 62.7 million in the year. FINANCIAL DEBT At September 30, 2002, the gross debt was R$ 3.8 billion, of which 25% short term (R$ 941.0 million) and 75% long-term (R$ 2.8 billion). Compared to the amount as of June 30, 2002, gross debt increased by 104.5%, which is attributable to the assumption by Gerdau S.A. of debts incurred by the Canadian companies on acquisition of Ameristeel, as a result of the unification of operations of the American subsidiary companies with Co-Steel, and to the devaluation of the Brazilian real in relation to the U.S. and Canadian dollars. Short-term debt comprised R$ 102.1 million denominated in Brazilian reais and R$ 838.9 million in foreign currency. Long-term debt comprised R$ 913.2 million denominated in Brazilian reais and R$ 1.9 billion in foreign currency. Available funds and financial investments at September 30, 2002 totaled R$ 373.1 million. 29 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
05.01 COMMENTS ON THE QUARTERLY PERFORMANCE -------------------------------------------------------------------------------- CAPITAL MARKETS Interest on own capital was paid to the shareholders of Gerdau S.A. on August 15, 2002 and amounted to R$ 79.9 million, corresponding to R$ 0.70 per thousand shares. At the Sao Paulo Stock Exchange (BOVESPA), the movement on the company's shares (GGBR) amounted to R$ 978.7 million in the first nine months of 2002, 113.1% higher than in the same period of 2001, an average of R$ 5.2 million per day. During the quarter, trading involved 36,578 spot trades and 33.9 billion shares. Preferred shares appreciated 28.9% in the year. In the United States of America, 10.9 million of ADRs of Gerdau S.A were traded on the New York Stock Exchange (NYSE), moving US$ 118.0 million in the period from January to September 2002, an average of US$ 621 thousand per day. 30 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
06.01 - CONSOLIDATED BALANCE SHEET - ASSETS (R$ thousand) --------------------------------------------------------------------------------
1 - CODE 2 - DESCRIPTION 3 - 9/30/2002 4 - 6/30/2002 1 Total assets 13,102,386 10,620,207 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01 Current assets 5,431,658 3,708,311 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.01 Available funds 148,551 36,938 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02 Credits 3,128,954 1,874,943 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02.01 Trade accounts receivable 1,255,855 1,016,195 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02.02 Tax credits 58,792 54,837 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.02.03 Marketable securities 1,814,307 803,911 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03 Inventories 1,773,620 1,519,364 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.01 Finished products 736,158 600,666 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.02 Work in process 293,160 263,865 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.03 Raw materials 281,586 251,912 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.04 Warehouse materials 435,792 378,733 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.03.05 Advances to suppliers 26,924 24,188 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04 Other 380,533 277,066 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04.01 Other receivables 271,133 210,409 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04.02 Deferred income tax and social contribution 81,715 42,000 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.01.04.03 Advances to employees 27,685 24,657 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02 Long-term receivables 379,203 354,179 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.01 Sundry credits 11,198 9,345 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.01.01 Eletrobras loans 11,198 9,345 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02 Receivables from related companies 17,234 47,428 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02.01 Associated companies 17,234 47,428 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02.02 Subsidiary companies 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.02.03 Other 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.03 Other 350,771 297,406 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.03.01 Judicial deposits and other 176,948 145,758 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.02.03.02 Deferred income tax and social contribution 173,823 151,648 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03 Permanent assets 7,291,525 6,557,717 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01 Investments 475,208 356,709 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01.01 In associated companies 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01.02 In subsidiary companies 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.01.03 Other 0 0 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02 Fixed assets 6,800,127 6,184,855 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.01 Land, buildings and constructions 3,311,321 3,086,287 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.02 Machinery, equipment and installations 6,942,573 6,105,143 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.03 Furniture and fixtures 117,544 105,378 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.04 Vehicles 39,218 34,594 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.05 Electronic data equipment 167,355 163,527 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.06 Construction in progress 378,120 378,656 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.07 Forestation/reforestation 143,362 138,084 --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.02.08 Accumulated depreciation (4,299,357) (3,826,814) --------------- --------------------------------------------------- ----------------------- ----------------------- 1.03.03 Deferred charges 16,190 16,153 --------------- --------------------------------------------------- ----------------------- -----------------------
31 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
06.02 - CONSOLIDATED BALANCE SHEET - LIABILITIES AND SHAREHOLDERS' EQUITY (R$ THOUSAND)
1 - CODE 2 - DESCRIPTION 3 - 9/30/2002 4 - 6/30/2002 --------------- ----------------------------------------------- ------------------------ ------------------------ 2 Total liabilities and shareholders' equity 13,102,386 10,620,207 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01 Current liabilities 5,226,577 3,428,999 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.01 Financings 3,969,646 2,240,415 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.02 Debentures 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.03 Suppliers 738,209 700,837 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.04 Taxes, charges and contributions 185,765 158,669 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.05 Dividends payable 0 70,002 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.06 Provisions 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.07 Payables to related companies 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08 Other 332,957 259,076 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.01 Salaries payable 135,710 103,457 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.02 Deferred income tax and social contribution 1,889 1,368 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.01.08.03 Other payables 195,358 154,251 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02 Long-term liabilities 3,957,284 3,058,975 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.01 Financings 2,603,380 2,179,595 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.02 Debentures 534,240 205,522 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.03 Provisions 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.04 Payables to related companies 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05 Other 819,664 673,858 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.01 Provision for contingencies 130,247 127,075 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.02 Deferred income tax and social contribution 520,452 418,128 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.03 Other payables 82,205 64,650 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.02.05.04 Benefits to employees 86,760 64,005 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.03 Deferred income 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.04 Minority interest 636,147 1,190,300 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05 Shareholders' equity 3,282,378 2,941,933 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.01 Paid-up capital 1,335,120 1,335,120 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.02 Capital reserves 288,945 277,813 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.03 Revaluation reserves 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.03.01 Own assets 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.03.02 Subsidiary/associated companies 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04 Revenue reserves 1,110,413 1,110,413 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.01 Legal 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.02 Statutory 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.03 Contingencies 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.04 Unrealized profits 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.05 Retention of profits 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.06 Special for undistributed dividends 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.04.07 Other 0 0 --------------- ----------------------------------------------- ------------------------ ------------------------ 2.05.05 Retained earnings 547,900 218,587 --------------- ----------------------------------------------- ------------------------ ------------------------
32 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
07.01 - CONSOLIDATED STATEMENT OF INCOME (R$ THOUSAND)
Code Description 3 - 4 - 5 - 6 - 7/1/2002 1/1/2002 7/1/2001 to 1/1/2001 to to to 9/30/2001 9/30/2001 9/30/2002 9/30/2002 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.01 Gross sales and/or services 3,590,854 8,062,461 2,069,454 5,506,637 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.02 Deductions (632,397) (1,467,107) (342,915) (917,870) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.02.01 Taxes on sales (314,965) (807,749) (242,017) (653,323) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.02.02 Freights and discounts (317,432) (659,358) (100,898) (264,547) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.03 Net sales and/or services 2,958,457 6,595,354 1,726,539 4,588,767 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.04 Cost of sales and/or services rendered (2,137,035) (4,717,764) (1,207,140) (3,342,839) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.05 Gross profit 821,422 1,877,590 519,399 1,245,928 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06 Operating expenses/income (487,773) (1,181,470) (326,495) (809,655) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.01 Selling (93,340) (238,986) (70,219) (185,065) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.02 General and administrative (208,728) (490,440) (129,834) (351,995) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.03 Financial, net (730,077) (1,141,182) (288,028) (584,223) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.03.01 Financial income 160,651 238,523 34,809 90,819 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.03.02 Financial expenses (890,728) (1,379,705) (322,837) (675,042) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.04 Other operating income 52,155 100,897 0 1,284 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.05 Other operating expenses 0 0 (1,226) (1,226) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.06.06 Equity in the results of subsidiary and 492,217 588,241 162,812 311,570 associated companies ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.07 Operating profit 333,649 696,120 192,904 436,273 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.08 Non-operating results (17,933) (27,799) (4,026) (5,633) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.08.01 Income 0 0 0 0 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.08.02 Expenses (17,933) (27,799) (4,026) (5,633) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.09 Net income before taxation and participations 315,716 668,321 188,878 430,640 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.10 Provision for income tax and social 5,114 (48,572) (22,307) (38,142) contribution ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.11 Deferred income tax 10,086 11,804 (16,816) (15,594) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.12 Statutory participations and contributions (3,479) (8,667) (3,321) (6,982) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.12.01 Participations (3,479) (8,667) (3,321) (6,982) ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.12.02 Contributions 0 0 0 0 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.13 Reversal of interest on capital 0 0 0 0 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.14 Minority interest (2,657) 364 1,291 2,154 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- 3.15 Net income for the period 324,780 623,250 147,725 372,076 ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- Number of shares (thousand), excluding 114,118,471 114,118,471 113,491,706 113,491,706 treasury stock ------------- ------------------------------------------------ ------------ ------------ ------------- ------------- Net income per share 0.00285 0.00546 0.00130 0.00328 ------------- ------------------------------------------------ ------------ ------------ ------------- -------------
33 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
08.01 - Comments on the Consolidated Performance -------------------------------------------------------------------------------- The results of Gerdau S.A. and its subsidiary companies in the third quarter of 2002 reflected the good operating performance, as well as the effect of the devaluation of the Brazilian real in relation to the U.S. dollar. This performance was also enhanced by a better utilization of Acominas installed capacity, where operations were prejudiced in the previous quarter due to a temporary shutdown of the blast furnace. The highlights for the quarter are as follows: o Consolidated net income reached R$ 327.4 million in the third quarter of 2002, 92.5% higher than in the second quarter. In the first nine months of 2002, net income reached R$ 623.2 million, a 68.4% increase compared to the same period in 2001. o Consolidated sales totaled R$ 3.6 billion in the third quarter of 2002, 48.5% higher than in the second quarter. Up to September 2002, sales reached R$ 8.1 billion, that is, 46.4% higher than in the same period of 2001. o EBITDA (Earnings before Taxes, Depreciation, and Amortization) reached R$ 682.2 million, accumulating R$ 1.5 billion in 2002. o The Acominas blast furnace went back to operating at full capacity on September 1, 2002. o On August 13, 2002, the North America subsidiary companies (Courtice Steel, MRM, and AmeriSteel) and Co-Steel Inc. in Canada, announced the signing of an agreement to unify their North American operations. At the Extraordinary General Meeting on September 23, 2002, the shareholders of Co-Steel approved the proposal and the change in name of Co-Steel to Gerdau AmeriSteel Corporation. Its shares will continue to be traded on the Toronto Stock Exchange, however, under the new name when approved by this institution. o On September 6, 2002, Gerdau exercised the option to purchase the 24.8% interest held by Natsteel in Acominas for US$ 211.6 million, which is to be paid at sight on October 18, 2002. With the conclusion of this transaction, Gerdau will hold an interest of 78.9% in the capital of Acominas. Goodwill on this transaction totaled US$ 64.1 million, which was fully amortized during the quarter. o Gerdau S.A. Board of Directors has another member since October 10, 2002. The shareholders approved Mr. Andre Lara Resende and the Board now has eight members, of which three are independent. o On September 19, 2002, Gerdau was awarded, for the third consecutive time, the 7th ANEFAC-FIPECAFI-SERASA Prize for being classified among the ten best financial statements published in 2001. 34 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
08.01 - COMMENTS ON THE CONSOLIDATED PERFORMANCE -------------------------------------------------------------------------------- o On October 11, 2002, the IISI (International Iron & Steel Institute) announced, during the 36th Annual Conference held in Rome, the name of the ten best world siderurgy websites (Annual IISI Website Competition). AmeriSteel and Gerdau websites were ranked as 5th and 6th, respectively, Gerdau being the only Brazilian company awarded. PRODUCTION The recovery of Acominas production at a rhythm closer to installed capacity together with better conditions for the sale of long steel products, both in the domestic and in the foreign market, allowed Gerdau S.A. and its subsidiary companies to significantly increase the production of steel and rolled steel during the third quarter of 2002.
IN THOUSAND TONS 3RD Q 02 2ND Q 02 3RD Q 01 9 MONTHS/02 9 MONTHS/01 ------------------------------------------------------------------------------------------------------------ Crude steel Brazil 1,614 1,181 1,075 4,290 3,241 North America 646 687 557 1,996 1,752 South America 74 72 68 215 209 Total 2,334 1,940 1,700 6,501 5,202 ------------------------------------------------------------------------------------------------------------ Rolled steel Brazil 961 876 862 2,635 2,604 North America 621 634 560 1,867 1,667 South America 84 81 79 236 254 Total 1,666 1,591 1,501 4,738 4,525 ------------------------------------------------------------------------------------------------------------
o Production of crude steel totaled 2.3 million tons in the period from July to September 2002, 20.3% higher than in the second quarter, this increase arising mainly from the higher production of Acominas. Rolled steel production reached 1.7 million tons, a 4.8% increase compared to the volume produced in the second quarter. o In Brazil, the Gerdau companies produced 1.6 million tons of crude steel and 960.8 million tons of rolled steel, 36.7% and 9.6% higher, respectively, than the volumes produced in the second quarter. Gerdau S.A. produced 962.7 thousand tons of crude steel (+10.4%) and 891.4 thousand tons of rolled steel (+8.8%) during the quarter. Acominas produced 650.9 thousand tons of crude steel and 69.4 thousand tons of rolled steel, a 110.9% and 21.9% increase, respectively, compared to the second quarter. o The North America subsidiaries produced 646.0 thousand tons of crude steel and 621.7 thousand tons of rolled steel during the quarter, 6.0% and 1.9%, respectively, lower than in the second quarter. 35 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
08.01 - COMMENTS ON THE CONSOLIDATED PERFORMANCE -------------------------------------------------------------------------------- o In South America (Chile, Uruguay, and Argentina) 74.1 thousand tons of steel were produced, 2.9% higher than in the second quarter, and 83.8 thousand tons of rolled steel, a 3.9% increase compared to the volume in the second quarter. SALES The main reasons for the increase in sales during the months of July to September 2002 were the increase in Acominas production and an improved internal demand, mainly in the agricultural and livestock sector and related segments, such as farm implements and agriculture machinery.
IN THOUSAND TONS 3RD Q 02 2ND Q 02 3RD Q 01 9 MONTHS/02 9 MONTHS/01 ------------------------------------------------------------------------------------------------------------ Brazil Domestic 1,086 932 975 2,894 2,858 Exports 495 280 122 1,311 514 Total 1,581 1,212 1,097 4,205 3,372 ------------------------------------------------------------------------------------------------------------ Abroad North America 647 695 577 1,966 1,773 South America 84 75 75 247 286 Total 731 770 652 2,213 2,059 ------------------------------------------------------------------------------------------------------------ Total Consolidated 2,312 1,982 1,749 6,418 5,431 ------------------------------------------------------------------------------------------------------------
o Third quarter consolidated sales totaled 2.3 million tons, 16.6% higher than in the previous quarter, of which, 68%, that is, 1.6 million tons, was sold by companies located in Brazil and the remaining 32% (730.8 thousand tons) by companies abroad. o In the domestic market, Gerdau companies increased sales by 16.6%, selling 1.1 million tons from July to September 2002. Exports, favored by better prices in the foreign market and by the devaluation of the Brazilian currency, reached 494.8 thousand tons in the quarter, 76.7% higher than in the second quarter. o The North America subsidiaries sold 646.5 thousand tons in the quarter, a 7.0% decrease compared to the second quarter due to reduced demand both in Canada and the United States. o In South America (excluding Brazil), sales reached 84.3 thousand tons, 12.0% higher than in the previous quarter. Chile was mainly responsible for this growth (+27.3%), clearly compensating the weak demand in Uruguay and Argentina. 36 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
08.01 - COMMENTS ON THE CONSOLIDATED PERFORMANCE -------------------------------------------------------------------------------- RESULTS The increase in volume sold both in the domestic and foreign markets, the strong devaluation of the Brazilian real in relation to the U.S. dollar, and the rise in the prices of siderurgical products in the foreign market, were the main reasons which influenced the results in the third quarter of 2002.
IN R$ MILLION 3RD Q/02 2ND Q/02 3RD Q/01 9 MONTHS/02 9 MONTHS/01 ----------------------------------------------------------------------------------------------------------------- Net sales Consolidated Brazil 1,446.4 1,086.1 926.2 3,623.3 2,544.4 North America 1,372.1 818.5 706.4 2,694.1 1,780.6 South America 140.0 73.4 94.0 278.0 263.8 Total 2,958.5 1,978.0 1,726.6 6,595.4 4,588.8 ----------------------------------------------------------------------------------------------------------------- EBITDA Consolidated Brazil 491.5 310.2 307.3 1,134.8 722.8 North America 150.8 105.4 92.5 316.6 225.9 South America 39.9 23.6 30.0 82.3 64.1 Total 682.2 439.2 429.8 1,533.7 1,012.8 ----------------------------------------------------------------------------------------------------------------- Net income Consolidated Brazil 263.9 135.5 140.5 512.7 343.2 North America 56.7 31.0 4.5 101.1 21.8 South America 6.8 3.6 1.4 9.1 4.9 Total 327.4 170.1 146.4 622.9 369.9 -----------------------------------------------------------------------------------------------------------------
o Third quarter net sales reached R$ 3.0 billion, a 49.6% increase compared to the previous quarter, which is attributed to the above mentioned factors. o Gross profit increased from R$ 558.7 million in the second quarter to R$ 821.4 million in the third quarter. Because cost of sales increased by 50.6% compared to 47.0% in net sales, gross margin for the quarter was 27.77% against 28.24% in the period from April to June 2002. o Selling, general, and administrative expenses totaled R$ 302.1 million (+29.6% in the quarter), a much smaller increase compared to the net sales reached in the quarter. o Although cost of sales increased more than net sales, the smaller increase in operating expenses was decisive for the EBITDA margin to increase in the third quarter compared to the previous one. With an EBITDA of R$ 682.2 million for the quarter, the margin was 23.06% against 22.20% in the previous quarter. 37 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
08.01 - COMMENTS ON THE CONSOLIDATED PERFORMANCE -------------------------------------------------------------------------------- o Also in this quarter, Acominas recorded in results amounts relating to an indemnification for loss of profits in the period, which will be paid by the insurance company. Amounts recorded in the quarter totaled R$ 62.7 million. o The provision for income tax and social contribution presented a deferred asset of R$ 15.2 million for the quarter due to deductible exchange effects. o Consolidated net income reached R$ 324.7 million in the third quarter of 2002, 93.3% higher than in the second quarter. It should be pointed out that if the monetary and exchange effects on the debt, net of income tax (R$ 359.9 million), and on foreign investments (R$ 492.2 million) were not taken into consideration, the result would be R$ 195.1 million in the quarter INVESTMENTS With the objective of offering high quality products at competitive prices, Gerdau has maintained its investment program to improve productivity, upgrade plant technology, and develop new products. o Investments by the Brazilian companies in fixed assets during the third quarter amounted to US$ 35.5 million, accumulating US$ 126.9 million for the nine-months. Of the amount invested during the quarter, US$ 20.6 million was invested by Gerdau S.A., US$ 14.5 million by Acominas, and US$ 352 thousand by other Brazilian subsidiaries. o Gerdau S.A. foreign subsidiaries invested US$ 7.1 million during the quarter, of which US$ 6.5 million in North America and US$ 634 thousand in South America. Up to September 2002, investments made by these subsidiaries totaled US$ 27.1 million. o In September 2002, Gerdau Aza S.A., Chile, and Cia. Siderurgica Huachipato S.A., a CAP Group company, acquired, in equal parts, Comercial Acindar Chile Ltda., located in the North zone of Santiago, for US$ 4.8 million. The company acquired, a subsidiary of Argentine company Acindar S.A., started operations in 1991 as a trader of long steel products and, in 1996, specialized in the services of cutting and bending bars and rods for the civil construction segment. In 2001, it started the manufacturing of arc welded netting for civil construction. This joint venture will add value to Gerdau Aza and complete its line of civil construction products. FINANCIAL DEBT o At September 30, 2002, consolidated gross debt amounted to R$ 7.1 billion, of which 55.9% short-term (R$ 4.0 billion) and 44.1% long-term (R$ 3.1 billion). Compared to the amount as of June 30, 2002, the debt increased 53.7%, which is mainly attributable to the devaluation of the Brazilian real in relation to the U.S. and Canadian dollars. 38 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
08.01 - COMMENTS ON THE CONSOLIDATED PERFORMANCE -------------------------------------------------------------------------------- o Short-term debt comprised R$ 108.3 million denominated in Brazilian reais, R$ 1.7 billion in foreign currency contracted by Brazilian subsidiaries and R$ 2.2 billion contracted by subsidiaries abroad. o Long-term debt comprised R$ 1.1 billion denominated in Brazilian reais, R$ 916.0 million in foreign currency contracted by Brazilian subsidiaries and R$ 1.1 billion contracted by subsidiaries abroad. o Of the debt in a foreign currency contracted by Brazilian subsidiaries (R$ 2.6 billion short and long-term), R$ 1.8 billion (amount translated into reais at the contract dates) was hedged by swap transactions realized in 2001 and 2002 against fluctuations in the U.S. dollar in relation to the Brazilian real. o In September 2002, EBITDA corresponded to 4.8 times the amount of net financial expenses (excluding monetary and exchange variations) and the net debt corresponded to 2.8 times the EBITDA for the last twelve months. o Available funds and marketable securities as of September 30, 2002 totaled R$ 2.0 billion. Of this amount, R$ 1.3 billion was indexed to the U.S. dollar. CAPITAL MARKETS o On October 25, 2002, teleconferences in Portuguese and English will be held to comment on the quarterly results. For more information, those interested in participating can access our website at www.gerdau.com.br/ri. o In November 2002, Gerdau will promote three presentations to ABAMECs' associates to discuss the third quarter 2002 results. On November 18, 2002, the presentation will be in Rio de Janeiro and on November 19, 2002 in Sao Paulo and Porto Alegre. o Interest on own capital was paid on August 15, 2002 to the shareholders of Gerdau S.A. and amounted to R$ 79.9 million, corresponding to R$ 0.70 per thousand shares. o On the Sao Paulo Stock Exchange (BOVESPA), Gerdau S.A. shares (GGBR) moved a total of R$ 978.7 million in the first nine months of 2002, 113.1% higher than in the same period of 2001, an average of R$ 5.2 million per day. During the quarter, trading volume involved 36,578 trades and 33.9 billion shares. The preferred shares appreciated 28.9% during the year. o In the United States of America, 10.9 million ADRs of Gerdau S.A were traded on the New York Stock Exchange (NYSE), moving US$ 118.0 million in the period from January to September 2002, an average of US$ 621 thousand per day. 39 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
09.01 - INVESTMENTS IN SUBSIDIARY AND/OR ASSOCIATED COMPANIES --------------------------------------------------------------------------------
1 - 2 - COMPANY NAME 3 - CNPJ 4 - CLASSIFICATION 5 - % OF INVESTEES 6 - % OF SHARE ITEM CAPITAL HOLDERS' EQUITY OF INVESTOR -------------------------------------------------------------------------------------------------------------------- 7 - TYPE OF COMPANY 8 - NUMBER OF SHARES FOR THE QUARTER 9 - NUMBER OF SHARES IN THE PRIOR (THOUSANDS) QUARTER (THOUSANDS) -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- 01 Gerdau Intern. Empreend. 87.040.598/0001-Closed Subsidiary 99.78 90.49 Ltda. -------------------------------------------------------------------------------------------------------------------- Commercial, industrial and other 1,156,012 368,097 -------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------- 03 Gerdau Participacoes Ltda.02.186.673/0001-Closed Subsidiary 89.98 28.77 -------------------------------------------------------------------------------------------------------------------- Commercial, industrial and other 379,941 379,941 --------------------------------------------------------------------------------------------------------------------
40 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - Characteristics of Public or Private Issue of Debentures ----------------------------------------------------------------- 1 - ITEM 01 ----------------------------------------------------------------- 2 - ORDER NUMBER 03 ----------------------------------------------------------------- 3 - CVM REGISTRATION NUMBER DCA-82/018 ----------------------------------------------------------------- 4 - CVM REGISTRATION DATE 7/29/1982 ----------------------------------------------------------------- 5 - ISSUED SERIES A ----------------------------------------------------------------- 6 - TYPE OF ISSUANCE SIMPLE ----------------------------------------------------------------- 7 - NATURE OF ISSUANCE PUBLIC ----------------------------------------------------------------- 8 - DATE OF ISSUANCE 6/1/1982 ----------------------------------------------------------------- 9 - MATURITY DATE 6/1/2011 ----------------------------------------------------------------- 10 - TYPE OF DEBENTURE NO PREFERENCE ----------------------------------------------------------------- 11 - CONDITION OF REMUNERATION IN EFFECT 100% of CDI ----------------------------------------------------------------- 12 - PREMIUM/DISCOUNT ----------------------------------------------------------------- 13 - NOMIANAL VALUE (reais) 347.31 ----------------------------------------------------------------- 14 - ISSUED AMOUNT (thousands of reais) 8,335 ----------------------------------------------------------------- 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 24,000 ----------------------------------------------------------------- 16 - OUTSTANDING DEBENTURES (UNIT) 13,217 ----------------------------------------------------------------- 17 - TREASURY DEBENTURES (UNIT) 10,783 ----------------------------------------------------------------- 18 - REDEEMED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 19 - CONVERTED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 20 - DEBENTURES TO BE PLACED (UNIT) 0 ----------------------------------------------------------------- 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ----------------------------------------------------------------- 22 - DATE OF THE NEXT EVENT 2/1/2003 ----------------------------------------------------------------- 41 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES ----------------------------------------------------------------- 1 - ITEM 02 ----------------------------------------------------------------- 2 - ORDER NUMBER 03 ----------------------------------------------------------------- 3 - CVM REGISTRATION NUMBER DCA-82/019 ----------------------------------------------------------------- 4 - CVM REGISTRATION DATE 8/11/1982 ----------------------------------------------------------------- 5 - ISSUED SERIES B ----------------------------------------------------------------- 6 - TYPE OF ISSUANCE SIMPLE ----------------------------------------------------------------- 7 - NATURE OF ISSUANCE PUBLIC ----------------------------------------------------------------- 8 - DATE OF ISSUANCE 6/1/1982 ----------------------------------------------------------------- 9 - MATURITY DATE 6/1/2011 ----------------------------------------------------------------- 10 - TYPE OF DEBENTURE NO PREFERENCE ----------------------------------------------------------------- 11 - CONDITION OF REMUNERATION IN EFFECT 100% of CDI ----------------------------------------------------------------- 12 - PREMIUM/DISCOUNT ----------------------------------------------------------------- 13 - NOMINAL VALUE (reais) 347.31 ----------------------------------------------------------------- 14 - ISSUED AMOUNT (thousands of reais) 8,335 ----------------------------------------------------------------- 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 24,000 ----------------------------------------------------------------- 16 - OUTSTANDING DEBENTURES (UNIT) 4,562 ----------------------------------------------------------------- 17 - TREASURY DEBENTURES (UNIT) 19,438 ----------------------------------------------------------------- 18 - REDEEMED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 19 - CONVERTED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 20 - DEBENTURES TO BE PLACED (UNIT) 0 ----------------------------------------------------------------- 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ----------------------------------------------------------------- 22 - DATE OF THE NEXT EVENT 2/1/2003 ----------------------------------------------------------------- 42 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES ----------------------------------------------------------------- 1 - ITEM 03 ----------------------------------------------------------------- 2 - ORDER NUMBER 04 ----------------------------------------------------------------- 3 - CVM REGISTRATION NUMBER DCA-83/043 ----------------------------------------------------------------- 4 - CVM REGISTRATION DATE 8/8/1983 ----------------------------------------------------------------- 5 - ISSUED SERIES 1 ----------------------------------------------------------------- 6 - TYPE OF ISSUANCE SIMPLE ----------------------------------------------------------------- 7 - NATURE OF ISSUANCE PUBLIC ----------------------------------------------------------------- 8 - DATE OF ISSUANCE 5/31/1983 ----------------------------------------------------------------- 9 - MATURITY DATE 2/28/2012 ----------------------------------------------------------------- 10 - TYPE OF DEBENTURE NO PREFERENCE ----------------------------------------------------------------- 11 - CONDITION OF REMUNERATION IN EFFECT 100% of CDI ----------------------------------------------------------------- 12 - PREMIUM/DISCOUNT ----------------------------------------------------------------- 13 - NOMINAL VALUE (reais) 347.31 ----------------------------------------------------------------- 14 - ISSUED AMOUNT (thousands of reais) 14,587 ----------------------------------------------------------------- 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 42,000 ----------------------------------------------------------------- 16 - OUTSTANDING DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 17 - TREASURY DEBENTURES (UNIT) 42,000 ----------------------------------------------------------------- 18 - REDEEMED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 19 - CONVERTED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 20 - DEBENTURES TO BE PLACED (UNIT) 0 ----------------------------------------------------------------- 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ----------------------------------------------------------------- 22 - DATE OF THE NEXT EVENT 2/1/2003 ----------------------------------------------------------------- 43 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES 1 - ITEM 05 ----------------------------------------------------------------- 2 - ORDER NUMBER 7 ----------------------------------------------------------------- 3 - CVM REGISTRATION NUMBER DCA-82/024 ----------------------------------------------------------------- 4 - CVM REGISTRATION DATE 2/28/1982 ----------------------------------------------------------------- 5 - ISSUED SERIES 1 ----------------------------------------------------------------- 6 - TYPE OF ISSUANCE SIMPLE ----------------------------------------------------------------- 7 - NATURE OF ISSUANCE PUBLIC ----------------------------------------------------------------- 8 - DATE OF ISSUANCE 7/1/1982 ----------------------------------------------------------------- 9 - MATURITY DATE 7/1/2012 ----------------------------------------------------------------- 10 - TYPE OF DEBENTURE NO PREFERENCE ----------------------------------------------------------------- 11 - CONDITION OF REMUNERATION IN EFFECT 100% of CDI ----------------------------------------------------------------- 12 - PREMIUM/DISCOUNT ----------------------------------------------------------------- 13 - NOMINAL VALUE (reais) 347.31 ----------------------------------------------------------------- 14 - ISSUED AMOUNT (thousands of reais) 7,918 ----------------------------------------------------------------- 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 22,800 ----------------------------------------------------------------- 16 - OUTSTANDING DEBENTURES (UNIT) 6,539 ----------------------------------------------------------------- 17 - TREASURY DEBENTURES (UNIT) 16,261 ----------------------------------------------------------------- 18 - REDEEMED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 19 - CONVERTED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 20 - DEBENTURES TO BE PLACED (UNIT) 0 ----------------------------------------------------------------- 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ----------------------------------------------------------------- 22 - DATE OF THE NEXT EVENT 2/1/2003 ----------------------------------------------------------------- 44 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES 1 - ITEM 06 ------------------------------------------------------------------ 2 - ORDER NUMBER 8 ------------------------------------------------------------------ 3 - CVM REGISTRATION NUMBER DCA-82/004 ------------------------------------------------------------------ 4 - CVM REGISTRATION DATE 12/23/1982 ------------------------------------------------------------------ 5 - ISSUED SERIES 1 ------------------------------------------------------------------ 6 - TYPE OF ISSUANCE SIMPLE ------------------------------------------------------------------ 7 - NATURE OF ISSUANCE PUBLIC ------------------------------------------------------------------ 8 - DATE OF ISSUANCE 11/1/1982 ------------------------------------------------------------------ 9 - MATURITY DATE 5/2/2013 ------------------------------------------------------------------ 10 - TYPE OF DEBENTURE NO PREFERENCE ------------------------------------------------------------------ 11 - CONDITION OF REMUNERATION IN EFFECT 100% of CDI ------------------------------------------------------------------ 12 - PREMIUM/DISCOUNT ------------------------------------------------------------------ 13 - NOMINAL VALUE (reais) 347.31 ------------------------------------------------------------------ 14 - ISSUED AMOUNT (thousands of reais) 20,834 ------------------------------------------------------------------ 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 59,988 ------------------------------------------------------------------ 16 - OUTSTANDING DEBENTURES (UNIT) 17,232 ------------------------------------------------------------------ 17 - TREASURY DEBENTURES (UNIT) 42,756 ------------------------------------------------------------------ 18 - REDEEMED DEBENTURES (UNIT) 0 ------------------------------------------------------------------ 19 - CONVERTED DEBENTURES (UNIT) 0 ------------------------------------------------------------------ 20 - DEBENTURES TO BE PLACED (UNIT) 0 ------------------------------------------------------------------ 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ------------------------------------------------------------------ 22 - DATE OF THE NEXT EVENT 2/1/2003 ------------------------------------------------------------------ 45 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES 1 - ITEM 07 ------------------------------------------------------------------ 2 - ORDER NUMBER 9 ------------------------------------------------------------------ 3 - CVM REGISTRATION NUMBER DCA-83/044 ------------------------------------------------------------------ 4 - CVM REGISTRATION DATE 8/8/1983 ------------------------------------------------------------------ 5 - ISSUED SERIES 1 ------------------------------------------------------------------ 6 - TYPE OF ISSUANCE SIMPLE ------------------------------------------------------------------ 7 - NATURE OF ISSUANCE PUBLIC ------------------------------------------------------------------ 8 - DATE OF ISSUANCE 5/1/1983 ------------------------------------------------------------------ 9 - MATURITY DATE 9/1/2014 ------------------------------------------------------------------ 10 - TYPE OF DEBENTURE NO PREFERENCE ------------------------------------------------------------------ 11 - CONDITION OF REMUNERATION IN EFFECT 100% OF CDI ------------------------------------------------------------------ 12 - PREMIUM/DISCOUNT ------------------------------------------------------------------ 13 - NOMINAL VALUE (reais) 347.31 ------------------------------------------------------------------ 14 - ISSUED AMOUNT (thousands of reais) 14,545 ------------------------------------------------------------------ 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 41,880 ------------------------------------------------------------------ 16 - OUTSTANDING DEBENTURES (UNIT) 22,776 ------------------------------------------------------------------ 17 - TREASURY DEBENTURES (UNIT) 19,104 ------------------------------------------------------------------ 18 - REDEEMED DEBENTURES (UNIT) 0 ------------------------------------------------------------------ 19 - CONVERTED DEBENTURES (UNIT) 0 ------------------------------------------------------------------ 20 - DEBENTURES TO BE PLACED (UNIT) 0 ------------------------------------------------------------------ 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ------------------------------------------------------------------ 22 - DATE OF THE NEXT EVENT 2/1/2003 ------------------------------------------------------------------ 46 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES 1 - ITEM 08 ------------------------------------------------------------------ 2 - ORDER NUMBER 10 ------------------------------------------------------------------ 3 - CVM REGISTRATION NUMBER DEB-81/017 ------------------------------------------------------------------ 4 - CVM REGISTRATION DATE 5/7/1981 ------------------------------------------------------------------ 5 - ISSUED SERIES 1 ------------------------------------------------------------------ 6 - TYPE OF ISSUANCE SIMPLE ------------------------------------------------------------------ 7 - NATURE OF ISSUANCE PUBLIC ------------------------------------------------------------------ 8 - DATE OF ISSUANCE 2/27/1981 ------------------------------------------------------------------ 9 - MATURITY DATE 11/30/2015 ------------------------------------------------------------------ 10 - TYPE OF DEBENTURE SUBORDINATE ------------------------------------------------------------------ 11 - CONDITION OF REMUNERATION IN EFFECT ------------------------------------------------------------------ 12 - PREMIUM/DISCOUNT ------------------------------------------------------------------ 13 - NOMINAL VALUE (reais) 1,041.92 ------------------------------------------------------------------ 14 - ISSUED AMOUNT (thousands of reais) 6,720 ------------------------------------------------------------------ 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 6,450 ------------------------------------------------------------------ 16 - OUTSTANDING DEBENTURES (UNIT) 0 ------------------------------------------------------------------ 17 - TREASURY DEBENTURES (UNIT) 6,450 ------------------------------------------------------------------ 18 - REDEEMED DEBENTURES (UNIT) 0 ------------------------------------------------------------------ 19 - CONVERTED DEBENTURES (UNIT) 0 ------------------------------------------------------------------ 20 - DEBENTURES TO BE PLACED (UNIT) 0 ------------------------------------------------------------------ 21 - DATE OF THE LAST RENEGOTIATION ------------------------------------------------------------------ 22 - DATE OF THE NEXT EVENT 11/30/2015 ------------------------------------------------------------------ 47 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES 1 - ITEM 09 ----------------------------------------------------------------- 2 - ORDER NUMBER 11 ----------------------------------------------------------------- 3 - CVM REGISTRATION NUMBER DEB-90/041 ----------------------------------------------------------------- 4 - CVM REGISTRATION DATE 9/3/1990 ----------------------------------------------------------------- 5 - ISSUED SERIES A ----------------------------------------------------------------- 6 - TYPE OF ISSUANCE SIMPLE ----------------------------------------------------------------- 7 - NATURE OF ISSUANCE PUBLIC ----------------------------------------------------------------- 8 - DATE OF ISSUANCE 6/1/1990 ----------------------------------------------------------------- 9 - MATURITY DATE 6/1/2020 ----------------------------------------------------------------- 10 - TYPE OF DEBENTURE NO PREFERENCE ----------------------------------------------------------------- 11 - CONDITION OF REMUNERATION IN EFFECT 100% OF CDI ----------------------------------------------------------------- 12 - PREMIUM/DISCOUNT ----------------------------------------------------------------- 13 - NOMINAL VALUE (reais) 1,310.59 ----------------------------------------------------------------- 14 - ISSUED AMOUNT (thousands of reais) 32,764 ----------------------------------------------------------------- 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 25,000 ----------------------------------------------------------------- 16 - OUTSTANDING DEBENTURES (UNIT) 3,259 ----------------------------------------------------------------- 17 - TREASURY DEBENTURES (UNIT) 21,741 ----------------------------------------------------------------- 18 - REDEEMED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 19 - CONVERTED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 20 - DEBENTURES TO BE PLACED (UNIT) 0 ----------------------------------------------------------------- 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ----------------------------------------------------------------- 22 - DATE OF THE NEXT EVENT 2/1/2003 ----------------------------------------------------------------- 48 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES 1 - ITEM 10 ----------------------------------------------------------------- 2 - ORDER NUMBER 11 ----------------------------------------------------------------- 3 - CVM REGISTRATION NUMBER DEB-91/004 ----------------------------------------------------------------- 4 - CVM REGISTRATION DATE 1/8/1991 ----------------------------------------------------------------- 5 - ISSUED SERIES B ----------------------------------------------------------------- 6 - TYPE OF ISSUANCE SIMPLE ----------------------------------------------------------------- 7 - NATURE OF ISSUANCE PUBLIC ----------------------------------------------------------------- 8 - DATE OF ISSUANCE 6/1/1990 ----------------------------------------------------------------- 9 - MATURITY DATE 6/1/2020 ----------------------------------------------------------------- 10 - TYPE OF DEBENTURE NO PREFERENCE ----------------------------------------------------------------- 11 - CONDITION OF REMUNERATION IN EFFECT 100% OF CDI ----------------------------------------------------------------- 12 - PREMIUM/DISCOUNT ----------------------------------------------------------------- 13 - NOMINAL VALUE (reais) 1,310.59 ----------------------------------------------------------------- 14 - ISSUED AMOUNT (thousands of reais) 32,764 ----------------------------------------------------------------- 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 25,000 ----------------------------------------------------------------- 16 - OUTSTANDING DEBENTURES (UNIT) 1,403 ----------------------------------------------------------------- 17 - TREASURY DEBENTURES (UNIT) 23,597 ----------------------------------------------------------------- 18 - REDEEMED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 19 - CONVERTED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 20 - DEBENTURES TO BE PLACED (UNIT) 0 ----------------------------------------------------------------- 21 - DATE OF THE LAST RENEGOTIATION 10/1/2002 ----------------------------------------------------------------- 22 - DATE OF THE NEXT EVENT 2/1/2003 ----------------------------------------------------------------- 49 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
10.01 - CHARACTERISTICS OF PUBLIC OR PRIVATE ISSUE OF DEBENTURES 1 - ITEM 11 ----------------------------------------------------------------- 2 - ORDER NUMBER 13 ----------------------------------------------------------------- 3 - CVM REGISTRATION NUMBER CVM/SRE/DEB/2002/016 ----------------------------------------------------------------- 4 - CVM REGISTRATION DATE 5/27/2002 ----------------------------------------------------------------- 5 - ISSUED SERIES 1 ----------------------------------------------------------------- 6 - TYPE OF ISSUANCE SIMPLE ----------------------------------------------------------------- 7 - NATURE OF ISSUANCE PUBLIC ----------------------------------------------------------------- 8 - DATE OF ISSUANCE 11/1/2001 ----------------------------------------------------------------- 9 - MATURITY DATE 11/1/2008 ----------------------------------------------------------------- 10 - TYPE OF DEBENTURE SUBORDINATED ----------------------------------------------------------------- 11 - CONDITION OF REMUNERATION IN EFFECT CDI + 1% p.a. ----------------------------------------------------------------- 12 - PREMIUM/DISCOUNT ----------------------------------------------------------------- 13 - NOMINAL VALUE (reais) 10,765.59 ----------------------------------------------------------------- 14 - ISSUED AMOUNT (thousands of reais) 322,967 ----------------------------------------------------------------- 15 - NUMBER OF ISSUED DEBENTURES (UNIT) 30,000 ----------------------------------------------------------------- 16 - OUTSTANDING DEBENTURES (UNIT) 30,000 ----------------------------------------------------------------- 17 - TREASURY DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 18 - REDEEMED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 19 - CONVERTED DEBENTURES (UNIT) 0 ----------------------------------------------------------------- 20 - DEBENTURES TO BE PLACED (UNIT) 0 ----------------------------------------------------------------- 21 - DATE OF THE LAST RENEGOTIATION ----------------------------------------------------------------- 22 - DATE OF THE NEXT EVENT 11/1/2003 ----------------------------------------------------------------- 50 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT In compliance with the Differentiated Practices for Corporate Governance Regulation (Level 1), we present below spreadsheets showing ownership interests involving all direct or indirect holdings that exceed 5% of voting capital, including individual holdings.
-POSITION AS OF SEPTEMBER 30, 2002 GERDAU S.A. - CNPJ No. 33.611.500/0001-19 - Capital: R$ 1,335,120,134.51 OWNERSHIP NUMBER OF SHARES --------------------------------------------------------------------------------- SHAREHOLDER'S NAME COMMON PREFERRED TOTAL --------------------------------------------------------------------------------- NUMBER OF NUMBER OF NUMBER OF SHARES % SHARES % SHARES % METALURGICA GERDAU S/A 32,677,464,100 82.54 20,723,815,548 27.81 53,401,279,648 46.79 STA. FELICIDADE COM. EXP. DE PRODS SID LTDA 936,949,502 2.37 2,999,759,664 4.02 3,936,709,166 3.45 OTHER CONTROLLING SHAREHOLDERS 1,540,195,676 3.89 95,818,451 0.13 1,636,014,127 1.43 ------------- ---- ---------- ---- ------------- ---- SUBTOTAL 35,154,609,278 88.79 23,819,393,663 31.96 58,974,002,941 51.68 OUTSTANDING SHARES 4,436,332,505 11.21 50,708,135,117 68.04 55,144,467,622 48.32 -------------- ------ -------------- ------ --------------- ------ TOTAL ISSUED 39,590,941,783 100.00 74,527,528,780 100.00 114,118,470,563 100.00 -------------- ------ -------------- ------ --------------- ------
METALURGICA GERDAU S.A. - CNPJ No. 92.690.783/0001-09 - Capital: R$ 640,000,000.00 OWNERSHIP
NUMBER OF SHARES --------------------------------------------------------------------------------- SHAREHOLDER'S NAME COMMON PREFERRED TOTAL --------------------------------------------------------------------------------- NUMBER OF NUMBER OF NUMBER OF SHARES % SHARES % SHARES % INDAC - IND. ADM. E COM. S/A 2,238,363,245 32.30 - - 2,238,363,245 10.77 GERDAU GROUP EMPREEND. LTDA 1,772,313,022 25.57 773,150 0.01 1,773,068,172 8.53 GERSUL EMPREEND. IMOBS. LTDA 965,121,748 13.93 - - 965,121,748 4.64 -------------- ------ -------------- ------ --------------- ------ SUBTOTAL 4,975,798,015 71.80 773,150 0.01 4,976,571,165 23.94 OTHER 1,954,934,725 28.20 13,860,692,230 99.99 15,815,627,055 76.06 -------------- ------ -------------- ------ --------------- ------ TOTAL 6,930,732,740 100.00 13,861,465,480 100.00 20,792,198,220 100.00 -------------- ------ -------------- ------ --------------- ------
51 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT STA FELICIDADE COM., IMPORT. E EXPORT DE PROD. SIDERURGICOS LTDA - CNPJ NO. 78.566.288/0001-53 - CAPITAL: R$ 30,000,000.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOTAS % -------------------------------------------------------------------------------- METALURGICA GERDAU S/A 29,999,450 100.00 GRUPO GERDAU EMPREENDIMENTOS LTDA 150 0.00 --- ---- SUBTOTAL 29,999,600 100.00 OTHER 400 0.00 -------------------------------------------------------------------------------- TOTAL 30,000,000 100.00 -------------------------------------------------------------------------------- INDAC - INDUSTRIA, ADMINISTRACAO E COMERCIO S/A - CNPJ NO. 92.690.817/0001-57 - CAPITAL: R$ 199,596,393.21 OWNERSHIP
---------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES ----------------------------------------------------------------------------- SHAREHOLDER'S NAME COMMON PREFERRED TOTAL ----------------------------------------------------------------------------- NUMBER OF NUMBER OF NUMBER OF SHARES % SHARES % SHARES % ---------------------------------------------------------------------------------------------------------------- CINDAC - EMPREEND. E PART. S/A 436,019,687 100.00 - - 436,019,687 33.33 OTHER - - 872,039,374 100.00 872,039,374 66.67 ---------------------------------------------------------------------------------------------------------------- TOTAL 436,019,687 100.00 872,039,374 100.00 1,308,059,061 100.00 ----------------------------------------------------------------------------------------------------------------
GRUPO GERDAU EMPREENDIMENTOS LTDA - CNPJ NO. 87.153.730/0001-00 - CAPITAL: R$ 30,238,616.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOTAS % -------------------------------------------------------------------------------- INDAC - INDUSTRIA, ADMINISTRACAO E COMERCIO SA 26,557,324 87.83 OTHER 3,681,292 12.17 -------------------------------------------------------------------------------- TOTAL 30,238,616 100.00 -------------------------------------------------------------------------------- 52 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT GERSUL EMPREENDIMENTOS IMOBILIARIOS LTDA - CNPJ NO. 89.558.555/0001-67 - CAPITAL: R$ 15,000,000.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOTAS % -------------------------------------------------------------------------------- GRUPO GERDAU EMPREENDIMENTOS LTDA 4,599,393 30.66 ACOTER PARTICIPACOES LTDA 5,676,577 37.85 INDAC - IND. ADM. E COMERCIO S/A 3,492,430 23.28 --------- ----- SUBTOTAL 13,768,400 91.79 OTHER 1,231,600 8.21 -------------------------------------------------------------------------------- TOTAL 15,000,000 100.00 -------------------------------------------------------------------------------- CINDAC - EMPREENDIMENTOS E PARTICIPACOES S/A - CNPJ NO. 89.550.883/0001-17 - CAPITAL: R$ 41,660,000.00 OWNERSHIP
--------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES --------------------------------------------------------------------------- SHAREHOLDER'S NAME COMMON PREFERRED TOTAL --------------------------------------------------------------------------- NUMBER OF NUMBER OF NUMBER OF SHARES % SHARES % SHARES % --------------------------------------------------------------------------------------------------------------- GETER - REPRES. E ADM. LTDA 1 25.00 - - 1 25.00 KLATER - REPRES. E ADM. LTDA 1 25.00 - - 1 25.00 JOTER - REPRES. E ADM. LTDA 1 25.00 - - 1 25.00 FRETER - REPRES. E ADM. LTDA 1 25.00 - - 1 25.00 --------------------------------------------------------------------------------------------------------------- TOTAL 4 100.00 - - 4 100.00 ---------------------------------------------------------------------------------------------------------------
ACOTER PARTICIPACOES LTDA - CNPJ NO. 02.290.525/0001-34 - CAPITAL: R$ 12,800,000.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOTAS % -------------------------------------------------------------------------------- CINDAC - EMPREEND. E PARTICIPACOES S/A 10,609,500 82.89 GRUPO GERDAU EMPREENDIMENTOS LTDA 2,190,500 17.11 -------------------------------------------------------------------------------- TOTAL 12,800,000 100.00 -------------------------------------------------------------------------------- 53 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT GETER - REPRESENTACOES E ADMINISTRACAO LTDA - CNPJ NO. 92.690.833/0001-40 - CAPITAL: R$ 22,000,000.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOATS % -------------------------------------------------------------------------------- GERMANO HUGO GERDAU JOHANNPETER 21,995,674 99.98 OTHER 4,326 0.02 -------------------------------------------------------------------------------- TOTAL 22,000,000 100.00 -------------------------------------------------------------------------------- KLATER - REPRESENTACOES E ADMINISTRACAO LTDA - CNPJ NO. 92.690.841/0001-96 - CAPITAL: R$ 20,000,000.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOTAS % -------------------------------------------------------------------------------- KLAUS GERDAU JOHANNPETER 19,999,985 100.00 OTHER 15 0.00 -------------------------------------------------------------------------------- TOTAL 20,000,000 100.00 -------------------------------------------------------------------------------- JOTER - REPRESENTACOES E ADMINISTRACAO LTDA - CNPJ NO. 92.690.825/0001-01 - CAPITAL: R$ 20,000,000.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOTAS % -------------------------------------------------------------------------------- JORGE GERDAU JOHANNPETER 19,999,994 100.00 OTHER 6 0.00 -------------------------------------------------------------------------------- TOTAL 20,000,000 100.00 -------------------------------------------------------------------------------- 54 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT FRETER - REPRESENTACOES E ADMINISTRACAO LTDA - CNPJ NO. 92.807.171/0001-45 - CAPITAL: R$ 20,000,000.00 OWNERSHIP -------------------------------------------------------------------------------- TOTAL ------------------------------ QUOTAHOLDER'S NAME NUMBER OF QUOTAS % -------------------------------------------------------------------------------- FREDERICO CARLOS GERDAU JOHANNPETER 19,999,097 100.00 OTHER 903 0.00 -------------------------------------------------------------------------------- TOTAL 20,000,000 100.00 -------------------------------------------------------------------------------- In compliance with the Differentiated Practices for Corporate Governance Regulation (Level 1), we present below spreadsheets showing the number and characteristics of shares issued by the Company and which are directly or indirectly held by the Controlling Shareholders, Directors, Members of the Audit Committee, and Executive Directors.
- POSITION AS OF SEPTEMBER 30, 2002 GERDAU S.A. - CNPJ No. 33.611.500/0001-19 - Capital: R$ 1,335,120,134.51 OWNERSHIP ----------------------------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES ------------------------------------------------------------------------------------- SHAREHOLDER COMMON % PREFERRED % TOTAL % ----------------------------------------------------------------------------------------------------------------------------------- Controlling Shareholders 35,154,609,278 100.00 23,819,393,663 99.84 58,974,002,941 99.93 Directors 21,984 0.00 1,393,068 0.01 1,415,052 0.00 Audit Committee - - 8,766,402 0.04 8,766,402 0.01 Executive Directors 421,660 0.00 27,839,962 0.12 28,261,622 0.05 Total 35,155,052,922 100.00 23,857,393,095 100.00 59,012,446,017 100.00 -------------- ------ -------------- ------ -------------- ------
55 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
16.01 OTHER INFORMATION THE COMPANY CONSIDERS RELEVANT In compliance with the Differentiated Practices for Corporate Governance Regulation (Level 1), we present below spreadsheets showing the number of outstanding shares and their percentage in relation to total shares issued.
- POSITION AS OF SEPTEMBER 30, 2002 GERDAU S.A. - CNPJ NO. 33.611.500/0001-19 - CAPITAL: R$ 1, 335,120,134.51 OWNERSHIP --------------------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES --------------------------------------------------------------------------------- SHAREHOLDER COMMON PREFERRED TOTAL --------------------------------------------------------------------------------- NUMBER OF NUMBER OF NUMBER OF SHARES % SHARES % SHARES % --------------------------------------------------------------------------------------------------------------------------- METALURGICA GERDAU S/A 32,677,464,100 82.54 20,723,815,548 27.81 53,401,279,648 46.79 STA. FELICIDADE COM. EXP. DE PRODS SID 936,949,502 2.37 2,999,759,664 4.03 3,936,709,166 3.45 LTDA OTHER CONTROLLING SHAREHOLDERS 1,540,195,676 3.89 95,818,451 0.13 1,636,014,127 1.43 ------------- ---- ---------- ---- ------------- ---- SUBTOTAL 35,154,609,278 88.79 23,819,393,663 31.96 58,974,002,941 51.68 OUTSTANDING SHARES 4,436,332,505 11.21 50,708,135,117 68.04 55,144,467,622 48.32 --------------------------------------------------------------------------------------------------------------------- TOTAL ISSUED 39,590,941,783 100.00 74,527,528,780 100.00 114,118,470,563 100.00 ---------------------------------------------------------------------------------------------------------------------
56 (A free translation of the original in Portuguese) UNAUDITED FEDERAL GOVERNMENT SERVICE BRAZILIAN SECURITIES COMMISSION (CVM) CORPORATE LEGISLATION QUARTERLY INFORMATION - ITR 9/30/2002 COMMERCIAL, INDUSTRIAL AND OTHER COMPANIES
01.01 - IDENTIFICATION ----------------------------------------------------------------------------------------------------------------------------------- 1 - CVM CODE 2 - COMPANY NAME 3 - General Taxpayers' Registration (CNPJ) ----------------------------------------------------------------------------------------------------------------------------------- 00398-0 Gerdau S.A. 33.611.500/0001-19 -----------------------------------------------------------------------------------------------------------------------------------
17.01 - REPORT ON LIMITED REVIEW - UNQUALIFIED -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS ON THE LIMITED REVIEW OF THE QUARTERLY INFORMATION October 15, 2002 To the Board of Directors and Shareholders Gerdau S.A. 1 We have performed a limited review of the quarterly information of Gerdau S.A. (parent company) and of the consolidated quarterly information of Gerdau S.A. and its subsidiary companies as of and for the quarter and nine-month period ended September 30, 2002. This quarterly information is the responsibility of Company management. 2 Our reviews were conducted in accordance with specific standards established by the Brazilian Institute of Independent Auditors (IBRACON) in conjunction with the Federal Accounting Council (CFC) and consisted primarily of: (a) inquiries of and discussions with management responsible for the accounting, financial and operating areas of the companies as to the main criteria adopted in the preparation of the quarterly information, and (b) review of the information and subsequent events that have or could have significant effects on the financial position and operations of the companies. 3 Based on our limited reviews, we are not aware of any significant change that should be made to the quarterly information for it to be in conformity with accounting principles determined by Brazilian corporate law for the preparation of quarterly information and the standards established by the Brazilian Securities Commission (CVM). 4 The quarterly information (ITR) also contains accounting information for the quarter ended June 30, 2002, which was reviewed by us, and for the nine-month period ended September 30, 2001, which was reviewed by other independent accountants. Unqualified limited review reports on this quarterly information were issued on July 15, 2002 and October 16, 2001, respectively. PricewaterhouseCoopers Carlos Alberto de Sousa Auditores Independentes Partner CRC 2SP000160/O-5 "S" RS Contador CRC 1RJ056561/S-7 "S" RS 57 CONTENT
----------------------------------------------------------------------------------------------------------------- GROUP EXHIBIT DESCRIPTION PAGE ----------------------------------------------------------------------------------------------------------------- 01 01 Identification 1 ----------------------------------------------------------------------------------------------------------------- 01 02 Head office 1 ----------------------------------------------------------------------------------------------------------------- 01 03 Investor relations officer (Company mail address) 1 ----------------------------------------------------------------------------------------------------------------- 01 04 General information/Independent accountants 1 ----------------------------------------------------------------------------------------------------------------- 01 05 Capital composition 2 ----------------------------------------------------------------------------------------------------------------- 01 06 Characteristics of the company 2 ----------------------------------------------------------------------------------------------------------------- 01 07 Companies excluded from the consolidated financial statements 2 ----------------------------------------------------------------------------------------------------------------- 01 08 Dividends APPROVED AND/OR PAID DURING AND after THE QUARTER 2 ----------------------------------------------------------------------------------------------------------------- 01 09 Subscribed capital and alterations DURING the current QUARTER 3 ----------------------------------------------------------------------------------------------------------------- 01 10 Investor relations officer 3 ----------------------------------------------------------------------------------------------------------------- 02 01 Balance sheet - assets 4 ----------------------------------------------------------------------------------------------------------------- 02 02 Balance sheet - liabilities and shareholders' equity 5 ----------------------------------------------------------------------------------------------------------------- 03 01 Statement of Income 6 ----------------------------------------------------------------------------------------------------------------- 04 01 Notes to the Quarterly Information 7 ----------------------------------------------------------------------------------------------------------------- 05 01 Comments on the Quarterly Performance 26 ----------------------------------------------------------------------------------------------------------------- 06 01 Consolidated balance sheet - assets 29 ----------------------------------------------------------------------------------------------------------------- 06 02 Consolidated balance sheet - liabilities and shareholders' equity 30 ----------------------------------------------------------------------------------------------------------------- 07 01 Consolidated statement of income 31 ----------------------------------------------------------------------------------------------------------------- 08 01 Comments on the CONSOLIDATED Performance 32 ----------------------------------------------------------------------------------------------------------------- 09 01 Investments in subsidiary and/or associated companies 38 ----------------------------------------------------------------------------------------------------------------- 10 01 Characteristics of public or private debenture issues 39 ----------------------------------------------------------------------------------------------------------------- 16 01 Other information the company CONSIDERS relevant 49 ----------------------------------------------------------------------------------------------------------------- 17 01 Report on LIMITED review 55 ----------------------------------------------------------------------------------------------------------------- Gerdau Inter. Empreend. Ltda. ----------------------------------------------------------------------------------------------------------------- Gerdau Participacoes Ltda. /57
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