Special Steels India Business Unit

1. Gerdau Group

2. Special Steels Business Unit

3. India Business Unit

Global Presence

• 111 years in business

• Production facilities in 14 countries

• 60 steel mills

• Near 46,000 employees

• Crude steel capacity of 25.3 million tons

• Ranked 10th in the world by 2010 steel output

• 2nd largest long steel producer in the world and the 1st in the Americas

Gerdau Profile

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Company’s Philosophy

Vision

To be a GLOBAL ORGANIZATION and a BENCHMARK in any business we conduct

Mission

To CREATE VALUE for our customers, shareholders, employees, and communities by

operating as a SUSTAINABLE steel business

Be the CUSTOMERS choice

SAFETY above all

Respected, engaged and fulfilled EMPLOYEES

Pursuing EXCELLENCE with SIMPLICITY

Focus on RESULTS

INTEGRITY with all stakeholders

Economic, social and environmental SUSTAINIBILITY

Values

110 Years in Business

1900 40’s 50’s 60’s 70’s 80’s 90’s 2000

Expansion in Brazil

Expansion Abroad

1901:

1St operation: (nail factory)

1948:

1St mill acquisition (Riograndense)

Expansion of Riograndense

(construction of 2nd steel mill)

Market Share Increase - Diversification / downstream

- Own distribution network -Acquisition of one mill

(Pernambuco)

Acquisition of one mill (Paraná)

Construction of a new mill (Rio de Janeiro)

1St mill acquisition abroad (Uruguay)

1St mill Acquisition in North America

(Canada)

Acquisition of 3 mills (Rio de Janeiro,

Minas Gerais and Bahia)

Construction of 2 new mills

(Paraná and Ceará)

Acquisition of Piratini

(Specialty steel)

Second mill in Minas Gerais

Entering in Açominas

Mills acquisitions (Chile, Canada,

Argentina and USA)

Acquisitions in USA (Chaparral, MacSteel)

Entering in Europe and Asia

(Spain and India)

Expansion in Latin America

Construction of a steel mill

(São Paulo)

Acquisition in USA (TAMCO)

16.3

16.5

16.7

16.8

17.9

19.9

20.5

22.0

23.8

24.0

29.8

29.9

30.0

31.9

33.4

37.7

39.1

43.3

44.4

97.2

2011 Top Steel Producers

Source: World Steel Association www.worldsteel.org

Million metric tons crude steel production

- ArcelorMittal

- Heibei Group

- Baosteel Group

- POSCO

- Wuhan

- Nippon Steel

- Shagang Group

- Shougang Group

- JFE

- Ansteel Group

- Shangdong Group

- Tata Steel

- United States Steel

- Gerdau

- Nucor

- ThyssenKrupp

- Evraz

- Maanshan

- Benxi

- Hyundai

1º

2º

3º

4º

5º

6º

7º

8º

9º

10º

11º

12º

13º

14º

15º

16º

17º

18º

19º

20º

2010

2005

2000

2011

- ArcelorMittal 1º

- Gerdau 2º

- Evraz 3º

- Tata Steel 4º

- Nippon Steel 5º

- JFE 7º

- Nucor 8º

- Riva 9º

- Celsa Group 10º

- Industrial Union of Dombass 6º

47.3

19.5

14.7

10.7

10.5

10.1

9.5

8.9

8.6

8.2

Source: Steel on the Net www.steelonthenet.com

2010 Top Long Steel Producer’s Capacities

Million metric tons long steel capacity

8.6

8.8

8.9

9.4

10

10.8

11.1

18.7

22.6

51.2

Products and End Users

• Billets, blooms & slabs

• Merchant bars

• SBQ

• Wire-rod

• Rebars

• Fabricated steel

• Heavy structural shapes

• Nails

• Wires

Products End Users

• Housing

• Infrastructure

• Agricultural sector

• Automotive industry

• Oil and gas sector

• Shipbuilding

• Wind power generation

• Mining

• Other industrial sectors

1st Quarter

20122011 2010 2009 2008

Net Revenues (US$ million) 4,972 20,233 18,798 13,408 22,618

Net Income (US$ million) 215 1,199 1,471 577 2,832

Total assets (US$ million) 26,826 28,499 25,683 25,605 33,914

Total shipments (thousand tonnes) 4,725 19,164 17,363 13,987 19,118

Total Output (thousand tonnes) 4,940 19,623 17,852 13,509 19,599

EBITDA (US$ million) 545 2,658 3,114 1,999 5,488

EBITDA Margin (%) 11% 13% 17% 14% 24%

Gross Margin (%) 12% 14% 18% 17% 26%

Key Financial Figures

Investment Plan (2011 – 15)

USD 6.05 billion in five years

• Heavy plate rolling mill at Ouro Branco unit

• Structural beam rolling mill expansion at Ouro Branco unit

• Commercialization of iron ore resources

• Wire rod and rebar rolling mills in Santa Cruz unit

Investment Installed capacity

Goal

USD 57 million 700 thousand tons in 2011

Expansion of mining capacity to 7 million tons Self sufficiency for 100% of Ouro Branco unit iron ore needs

USD 1.0 billion 1 million tons by the end of 2012 grow in oil and gas, shipbuilding and construction sectors

Investment Future capacity

Annual Production Goal

Investment Installed capacity

Goal

USD 1.5 billion Additional 600 thousand tons in 2013 Participate in demand due to FIFA World Cup and Rio Olympics

Board of Directors Board of Directors

Corporate Governance

Business Units

General Assembly

Functional Processes

Gerdau Executive Committee (GEC)

Board of Directors

Dr. Jorge Gerdau Johannpeter

Germano H. Gerdau Johannpeter

Klaus Gerdau Johannpeter

Frederico C. Gerdau Johannpeter

Expedito Luz General Secretary:

Affonso Celso Pastore

André Pinheiro de Lara Resende

Oscar de Paula Bernardes Neto

Cláudio Gerdau Johannpeter

André Gerdau Johannpeter

Presid

en

t V

ice-P

resid

en

ts

Cou

nselo

rs

Alfredo Huallem

Board of Directors

Gerdau Executive Committee (GEC)

Corporate Governance

Business Units

General Assembly

Functional Processes

Gerdau Executive Committee (GEC)

CLÁUDIO Gerdau Johannpeter

Osvaldo Burgos SCHIRMER

Manoel VITOR de Mendonça Filho

ANDRÉ Gerdau Johannpeter

EXPEDITO Luz

CFO COO Executive VP CEO

Executive VP

Ricardo Giuzeppe MASCHERONI

Executive VP

FRANCISCO Deppermann Fortes

Executive VP

Gerdau Executive Committee (GEC)

Board of Directors

Business Units

Corporate Governance

General Assembly

Functional Processes

Wire rod

Wires

Merchant Bars

Business Operations

GERDAU

Brazil

Long and Flat Steel North America Special Steels

Latin America North

Billets, blooms & slabs Heavy Structural Shapes

Rebars Fabricated Steel

Nails

Rolling Mill Rolls

Forged and Cast Parts

Long Steel

34% 6% 34% 20%

SBQ - Bar

SBQ - Wire rod

% of 2011 net sales

Latin America South

6%

Hot Rolled Coils Hot Rolled Heavy Plates

1. Gerdau Group

2. Special Steels Business Unit

3. India Business Unit

Brazil

Long and Flat Steel

Organizational Chart

Mr. Mark Marcucci Special Steels and India

VP

Mr. Luis Colembergue Operations

USA

Mr. Jack Finlayson

Spain

Mr. Jose Jainaga

Brazil

Mr. Joaquim Bauer

GERDAU

Latin America South North America Special Steels Latin America North

Long Steel

34% 6% 6% 20%

% of 2011 net sales

India

Mr. Arvind Mathur

34%

USA

Brazil

Spain

India

China

Locations

12 steel mills + 1 under construction

11 downstream units

10 representative offices

• 12 steel mills in 3 countries + 1 joint venture steel mill under construction in India

• Ranked 2nd in 2008 SBQ global sales

• Largest supplier of SBQ to the automotive industry in the world

• Installed capacity over 3.7 million metric tons of crude steel

• Near 8,100 employees

Special Steels Profile

102 126 149 139 120172 168 211

264 260 273 309379 388 374

754

3,214

1,870

2,796

2967

Control of Aços Villares

Entry in Europe

Entry in India

20+ Years of Special Steel Expertise

Expansion in Brazil

Expansion Abroad

Piratini mill acquisition

Kalyani Gerdau Steel

Ltd. Established

(JV Kalyani Group)

Acquisition of Sidenor

Acquisition of Aços Villares

Monroe Melt Shop Improvements

Construction of a new rolling mill in

Pindamonhangaba

1990 2006 2008 2000 1990 2006 2008 2000 2010 2012 2010 2012

Acquisition of MacSteel

US$ 1.5 billion in 2011 - 13

Entry in North America

Installation of new rolling mill at Piratini

Improvements in the continuous caster at

Pirantini

Installation of downstream

facilities at Piratini

Mordernization of melt shop at Piratini

Increase in production capacity of melt shop at Piratini

Increase in rolling mill L1 capacity at

Piratini

Investment Plan (2012 – 14)

USD 67 million Additional capacity of 200,000 tons by end of 2013

USD 322 million Additional capacity of 400,000 tons by 2014 Competitive special steel solutions to a fast recovering industry

USD 205 million 500,000 tons by the end of 2012 Accompany growth of the automotive sector in Brazil

USD 169 million approved 300,000 tons/year Strategic unit: first in Asia

• Special steel rolling mill in Brazil

• Improvement in melt shop with new continuous caster in USA

• Capacity expansion at 2 different mills in USA

• Investments in Kalyani Gerdau JV in India

USD 1.5 billion in three years

Investment Installed capacity

Goal

Investment Future capacity

Investment Future Capacity

Goal

Investment Future Capacity

Goal

Brazil

• Company Name: Gerdau

• Steel Mills: 4

• Downstream Units: 0

• Representative Offices: 1

• Employees: 4,200

• Crude Steel Capacity (1,000 metric t): 1,380

• Rolled Steel Capacity (1,000 metric t): 1,340

• Rolling Mill Rolls Capacity (1,000 metric t): 40

• Product Portfolio: SBQ, Stainless and Rolling Mill Rolls

General Info

- Steel Mills - Representative Offices

620,000 t

570,000 t

40,000 t

Brazil

Steel Mills

Pindamonhangaba

• Crude Steel Capacity:

• Rolled Steel Capacity:

• Rolling Mill Rolls Capacity:

Sorocaba

• Rolled Steel Capacity:

Mogi das Cruzes

• Crude Steel Capacity:

• Rolled Steel Capacity:

Charqueadas

• Crude Steel Capacity:

• Rolled Steel Capacity:

• Forged Steel Capacity:

30,000 t

360,000 t

190,000 t

400,000 t

550,000 t

25,000 t

- Steel Mills - Representative Offices

Industrial Capabilities – SBQ and Stainless

• Pindamonhangaba • Charqueadas • Mogi das Cruzes • Sorocaba

95 t/heat 65 t/heat 70 t/heat

VD VD/VOD VD

3.2 to 6.9 t 1.3 to 7.3 t

155 mm 150 and 240 mm 155 and 185 mm

152.4 to 560 mm

63.5 to 410 mm

2 to 31 mm 4 to 30 mm

10 to 125 mm 18 to 80 mm

10 to 100 mm 15 to 52 mm

10 to 76 mm 10 to 105 mm 14 to 130 mm

8 5 2

17.4 to 228.6 mm

76.2 to 129 mm

50 to 88.9 mm

66.7 to 450 mm

15.8 to 203 mm

50 to 82.5 mm

4.4 to 60 x 17 to 145 mm

5.5 to 33.3 mm 5.5 to 30.1 mm

4.7 to 8.2 x 60 to 90 mm

Square bars

Forging Mill Round bars

Drawing

Grinding

Inspection Lines

Number of lines

Sizes

Rolling Mill Round bars

Square bars

Flat bars

Wire Rod

Types

Heat Treatment

Ingot casting

EAF

Degassing

Billet casting

Bloom casting

Melt Shop

Other (special profile)

Cold Finishing Turning

Q+T, Annealing and Spheroidizing

Q+T, Annealing and Spheroidizing

Q+T, Annealing and Spheroidizing

5.4 to 32 x 70 to 102 mm

Spain

• Company Name: Gerdau Sidenor

• Steel Mills: 5

• Downstream Units: 5

• Representative Offices: 5

• Employees: 2,600

• Crude Steel Capacity (1,000 metric t): 1,080

• Rolled Steel Capacity (1,000 metric t): 1,040

• Forged and Casted Parts Capacity (1,000 metric t): 70

• Product Portfolio: SBQ, Stainless, Rolling Mill Rolls and Forged and Cast Parts

General Info

- Steel Mills - Representative Offices - Downstream units

Spain

Steel Mills

Basauri

• Crude Steel Capacity:

• Rolled Steel Capacity:

Reinosa

• Crude Steel Capacity:

• Rolled Steel Capacity:

• Parts Capacity:

Azkoitia

• Rolled Steel Capacity:

Vitoria

• Rolled Steel Capacity:

690,000 t

250,000 t

340,000 t

180,000 t

360,000 t

Legazpi

• Crude Steel Capacity:

• Rolled Steel Capacity:

140,000 t

10,000 t

70,000 t

150,000 t

- Steel Mills - Representative Offices - Downstream units

Industrial Capabilities – SBQ and Stainless

• Basauri • Reinosa

220 to 1500 mm

350 to 2500 mm

• Vitoria • Legazpi • Azkoitia

20 to 100 mm 95 to 300 mm

5 to 36 mm

19 to 30 mm 20 to 82 mm

Inspection Lines

Number of lines

Sizes 25 to 100 mm

4

10 to 220 mm

1 5

20 to 80 mm

4

20 to 200 mm

Rolling Mill Round bars

Square bars

Flat bars

Wire Rod

Other

25 to 100 mm

70 to 170 mm

100 to 230 mm

5.5 to 38 mm

1.5 to 15 x 1000 x 2000 mm

20 to 200 mm

65 to 200 mm

Q+T and Annealing

VD/AD

Ingot casting

EAF

Degassing

Billet casting

Bloom casting

145 t/heat

VD/VOD

155 and 180 mm

300 x 400 mm

70 t/heat

VD/AD

3.1 t

50 t/heat

2.5 t

310 x 240 mm

Melt Shop

(flat steel)

20 to 45 mm

Q+T and Annealing Q+T and Annealing Q+T and Annealing Q+T and Annealing

Square bars

Forging Mill Round bars

Drawing

Grinding

Types

Heat Treatment

Cold Finishing Turning

7 to 40 mm 35 to 88,9 mm

6 to 92 x 50 to 350 mm

Forjanor Villalba

• Business:

Forging

Legutiano

• Business:

Cold drawing

Spain

Downstream Units

Maltzaga

• Business:

Cold drawing and turning

Forjanor Elgeta

• Business:

Forging

Polinya

• Business:

Cold drawing and turning

- Steel Mills - Representative Offices - Downstream units

USA

• Company Name: Gerdau MacSteel

• Steel Mills: 3

• Downstream Units: 6

• Representative Offices: 2

• Employees: 1,700

• Crude Steel Capacity (1,000 metric t): 1,180

• Rolled Steel Capacity (1,000 metric t): 1,100

• Product Portfolio: SBQ

General Info

- Steel Mills - Representative Offices - Downstream units

USA

Steel Mills

Jackson

• Crude Steel Capacity:

• Rolled Steel Capacity:

Monroe

• Crude Steel Capacity:

• Rolled Steel Capacity:

Fort Smith

• Crude Steel Capacity:

• Rolled Steel Capacity:

250,000 t

470,000 t

460,000 t

440,000 t

230,000 t

430,000 t

- Steel Mills - Representative Offices - Downstream units

• Jackson • Fort Smith

Industrial Capabilities – SBQ

54 t/heat

VD

28 to 132 mm

31.8 to 127 mm

3

44.4 to 153 mm

• Monroe

25.4 to 88.9 mm

2

25 to 82.5 mm

14.2 to 82.55 mm

46 t/heat 128 t/heat

VAD VAD

178 and 237 mm 160 and 195 mm 152 mm

25.4 to 108 mm

19.05 to 82.5 mm

2

22 to 85 mm Inspection Lines

Number of lines

Sizes

Rolling Mill Round bars

Square bars

Flat bars

Wire Rod

Other

Ingot casting

EAF

Degassing

Billet casting

Bloom casting

Melt Shop

Square bars

Drawing

Grinding

Types

Heat Treatment

Cold Finishing Turning

Forging Mill Round bars

Annealing and Spheroidizing Annealing and Spheroidizing Annealing and Spheroidizing

USA Downstream Units

Lansing - Basset

• Business:

Forged parts coating and heat treating

Lansing – Mt. Hope

• Business:

Forged parts coating and heat treating

Pleasant Prairie

• Business:

Surface treatment (Nitrosteel)

Huntington

• Business:

Heat treatment (Quench & temper)

North Vernon

• Business:

Forged parts coating and heat treating

Canton

• Business:

Forged parts coating and heat treating - Steel Mills - Representative Offices - Downstream units

• Hot Rolled Bars

- Rounds

- RCS

- Flats

- Special Profiles

Product Portfolio: SBQ

Products

Applications

• Forged Bars • Wire Rod

- Coils

Grades

- Rounds

- RCS

- Flats

• Carbon

• Alloyed

• Micro alloyed

• Free cutting

- International specifications (SAE, DIN, AFNOR and others)

- Customers specifications

• Automotive • Non-Automotive

- Trains

- Energy (oil and gas; wind power)

- Mining

- Heavy machinery

- Agricultural equipment - Powertrain

- Suspension

- Steering

Conrods Gears Crankshafts - Camshafts - Bearings - Fasteners - Shafts

Coil springs

- Shock absorbers - Clamps - Fasteners

Leaf springs Stabilizer bars

Gear racks Wheel hubs

- Bearings - Shafts - Fasteners

Some of Our Valued Customers

Vehicles in Which Gerdau Steel Can be Found

Research and Development

• 3 research centers (Brazil, Spain and USA)

• The second best research center in the steel industry in Europe

• The best research center in the long steel industry in the Americas

• 200 engineers working with product and process development • 3,000 different steel grades every year

• 100 process development projects developed in 2007

• 1,000 product development projects in 2007 (PPAP - Production Part Approval Process )

General Info

Areas of Expertise

Steel for Automotive Components

- Conrods

- Crankshafts

- Camshafts

Engine

- Constant velocity joints (CVJs)

- Gears

Transmission

- Gear racks

- Drive shafts

Steering System

- Springs

- Shock absorbers

Suspension

- Bearings

- Fasteners

Various Systems

Parts Systems

Areas of Expertise

Steel for Non-Automotive Sectors

Energy (Wind Power, Oil and Gas)

Agricultural Equipment

Applications Sectors

Mining

Trains

Other

- Tractors components

- Subsea equipments components

- Fasteners for wind power equipment

- Grinding bars

- Electrodes for aluminum production

- Springs

- Axles

- Hand tools

- Shafts for electric motors

- Harvester blades

- Mooring chains for offshore rigs

Projects and Partnerships with Think Tanks

BFI-VDEH

Fraunhofer-Institut

IMA GmbH Dresden

IAS

Senai Cetemp

CRM

Vitkovice R&D

CEIT

Inasmet

Labein

Irsid

Leces

Pole Univesitaire Leonard de Vinci

CSM

Istituto Nazionale Galileo Ferraris

Instytut Metallurgii Zelaza

ISQ

Institutet För Metallfrskning AB

IVL

Kimab

Mefos

ASPPRC

NCMC

AISI

AIST

FIERF

FIA

ASPEX

Projects and Partnerships with Universities

Univ. Aachen

Univ. Freiberg

UFRGS

Unisinos

USP

Unicamp

UFSCar

Univ. BRNO

Univ. Mondragon

Univ. Oviedo

Univ. Pisa

Colorado School of Mines

Carnegie Mellon

Univ. of Toledo

Univ. Bristol

Projects and Partnerships with Companies

ALD

Dillinger

Georgsmarienhutte

Saarstahl

TKN

TKS

Aceralia (ArcelorMittal)

Tecnatom

Ovako-Imatra

Rautaruukki Oyj

Voestalpine Stahl

Acciai Speciali Terni

Cogne

Gianetti-Magnetto

Profilarbed (ArcelorMittal)

Corus

Outokumpu

Sandvik

Uddeholm

Daido

Sumitomo

Sanyo

Ascometal

1. Gerdau Group

2. Special Steels Business Unit

3. India Business Unit

•Company Name: Gerdau Steel India Ltd. • Mill Location: Tadipatri

• Office Location: Bangalore

• Product Portfolio: SBQ

Gerdau Steel India Ltd.

General Info

Tadipatri

• Crude Steel Capacity:

• Rolled Steel Capacity:

Steel Mill

300,000 t

300,000 t

Tadipatri

Bangalore

- Steel Mill - Office

Gerdau Steel India Ltd. Project History

Current Status

2007 2008 2009 2010

SJK Steel acquired to form a JV between

Kalyani Group and Gerdau Group

Project on hold due to global financial crisis

2011 2012

Project CAPEX approved for

300,000 tons

On Going Projects - Rolling Mill - Sinter Plant - PowerPlant

- SMS upgrades - Coke Oven - Township

Rolling Mill start - up

2013

Gerdau takes over Kalyanis

stake

Rolling Mill 1

BF 1

350 m3

BOF 1

35t

BOF 2

35t

LF 1

35t

CCM 1

3 x 150 mm 6m radius

Clients

VD 1

35 t Sinter 1 33 m2

PCM

Existing Approved Projects

CPP

6 MW

Configuration: 1,000,000 tons liquid metal

Iron Making Melt Shop Rolling Mill

SBQ: 300,000 t/y

Ø 16-65 mm

P R O D U C T S

Configuration: 300,000 tons liquid metal Project Scope

CCM 1

3 x 130 mm 6m radius

Inspection

Coke Oven

CPP

15 MW

PCI

Mines

Phase II Expansion

Iron Making Melt Shop Rolling Mill

Configuration: 1.2 million tons liquid steel

CPP 2

CPP 3

CPP 4

15 MW

15 MW

15 MW

Coke Oven

Existing Phase I (Under

Implementation) Phase II

4 Battery

4 Battery

4 Battery

Sinter 1

Sinter 2

33 m2 80 m2

Pellet Plant

400 kt/y

PCM

108 t/h

BF 1

BF 2

350 m3 900 m3

BOF 1

35 t

BOF 2

35 t

BOF 3

35 t

LF 1

35 t

LF 2

35 t

VD 1

35 t

VD 3

75 t

CCM 1

150 x 150 mm

6/11 m radius

CCM 2

160 x 160 mm

9/15 m radius

BOF 4

75 t

LF 3

75 t

LF 4

75 t

CCM 3

260 x 320 mm

120 x 120 mm

12/18 m radius

VD 2

35 t

RM 1

SBQ: Ø 16-70 mm

300 kt/y

RM 3

Wire Rod: Ø 5-17.5 mm

420 kt/y

RM 2

SBQ: Ø 50-140 mm

500 kt/y

Customers

Inspection

Inspection

CPP 1

CPP 5

6 MW 15 MW

PCI 1

PCI 2

Benefication

Special Steel: Long-Term Vision

- Quality of products and services

- Proximity to customers

- Product development

- World-Class operation

- Management technology

To be the global supplier of choice in special steel business

Special Steel Business Operation is core in Gerdau’s strategy

Is proud to announce

‘LK Group’

of companies as their

distributors for marketing

their products.

Thanks