Gerdau Exane BNP Paribas Basic Materials Seminar 2007 March 28, 2007

Highlights One of the world’s lowest cost steel companies Strong cost position as a result of diversified production processes and multiple raw material sourcing Strong foreign currency generation Large export base International subsidiaries Ranked 14th globally by steel output for year 2005 with an output of 13.7m tons Largest long steel producer in the Americas 2nd largest long steel producer in North America 32 mills, integrated and mini mills, with state of the art technology Relevant market share and diversified product range through downstream and service centers Strong balance sheet, low leverage and strong cash generation Gerdau S.A. shares are listed on the São Paulo, New York and Madrid Stock Exchanges

An International Company CANADA Total Capacity (Includes Strategic Shareholdings) 19.2 million tonnes of crude steel 17.0 million tonnes of rolled steel products Brazil 9.2 million tonnes of crude steel 6.3 million tonnes of rolled steel products 11 steel units 12 fabrication shops 6 downstream operations 74 sales points and flat steel service centers Abroad 10.0 million tonnes of crude steel 10.7 million tonnes of rolled steel products 21 steel units 44 fabrication shops 17 downstream operations 1 associated company (Sidenor) 1 joint venture (Gallatin)

Solid Track Record 21,605 TOTAL INVESTED (1981 - 2006): In thousand tonnes 21,605 TOTAL INVESTED (1981 - 2006): Brazil = US$ 5.2 billion + Debt North America = US$ 2.0 billion + Debt South America = US$ 654 million + Debt Europe = US$ 380 million + Debt Installed Capacity Expansion 19,230 Araçariguama (Brazil) Sidenor (Spain) Sheffield (USA) Siderperú (Peru) GSB (Spain) 7,696 16,372 CAGR 1996-2006: 15% p.a. Ameristeel (USA) AZA New Plant (Chile) Additional stake in Açominas (Brazil) North Star (USA) 11,076 Control of Açominas (Brazil) Co-Steel (USA) 3,072 16,709 Diaco (Colombia) Cambridge (Canada) Usiba (Brazil) 3,934 4,568 Piratini (Brazil) AZA (Chile) 4,595 Stake in Açominas (Brazil) Manitoba (Canada) 2,611 1,757 Barão de Cocais (Brazil) Laisa - 1980 (Uruguay) 2009e Brazil – Installed Capacity of Crude Steel Abroad – Installed capacity of Crude Steel e: estimated Besides the mills acquired, as related above, Gerdau acquired many fab shops in order to add value to its products and offer services and products to its clients according to their needs.

Markets BRAZIL - 2006 COUNTRY MARKET SHARE MAIN COMPETITORS Gerdau 47% Arcelor Brasil 37% Gerdau 47% Other 5% Barra Mansa 5% V&M do Brasil 6% COUNTRY MARKET SHARE MAIN COMPETITORS NORTH AMERICA 17% Nucor + ArcelorMittal + CMC CHILE * 44% CAP + Imports URUGUAY 83% Imports ARGENTINA 19% Acindar + Bragado + Zapla COLOMBIA 37% Acerias Paz Del Rio + Imports SPAIN 43% Aceralia + Saarsthal PERU ** 45% Aceros Arequipa + Imports * Market share of rebars, profiles and wire-rod. ** Market share of long products, it doesn’t include flat steel.

Historical Financial Performance FINANCIAL PERFORMANCE 2001 TO 2006 Group sales have risen strongly in recent years following the global recovery of the steel business and the company’s growth Brazilian domestic shipments increased 12.6% in 2006, compared to the 2005, reflecting the most improved civil construction sector 2006 results show Gerdau’s Brazilian operations contributing approximately 41.0% of net sales, North America 45.6%, South America 9.9% and Spain 3.5% HISTORICAL PERFORMANCE * In US$ millions * All data in BR GAAP converted by R$ 2.138

Costs and Prices BRAZIL SOUTH AMERICA CONSOLIDATED NORTH AMERICA Net Sales and Cost of Sales per tonne (US$/tonne) BRAZIL SOUTH AMERICA Cost of Sales/t Net Sales/t CONSOLIDATED Net Sales/t Cost of Sales/t NORTH AMERICA EUROPE Cost of Sales/t Net Sales/t All data in BR GAAP converted by R$ 2.138

Investment Plan INSTALLED CAPACITY EVOLUTION Crude Steel INVESTMENT PLAN 2007 – 2009: US$ 4.0 billion ACTUAL 2006* In million US$ In million US$ BRAZIL 694.4 ABROAD 1,308.2 North America 537.6 South America 255.5 Europe 515.1 TOTAL 2,002.6 2007 2008 2009 TOTAL BRAZIL 820 570 1,000 2,390 ABROAD 580 530 500 1,610 North America 260 360 315 935 South America 125 142 527 Europe 60 45 43 148 1,400 1,100 1,500 4,000 * Including acquisitions in the period. INSTALLED CAPACITY EVOLUTION In thousand metric tons Crude Steel Rolling Products Investments in the fourth quarter of 2006 totaled US$ 605 million of which half was used for acquisitions and the balance in the improvement of several industrial units and enhancing the existing capacity at other mills. CAPEX in 2006 totaled US$ 2.0 billion, and as in the fourth quarter, 50% for acquisitions and 50% for the technological update and capacity expansion, with the spotlight going to Açominas and the new mill in São Paulo. Where acquisitions are concerned, we set foot in Europe by way of Sidenor at the beginning of 2006 and GSB in December, and in Peru, with Siderperú in the second half of last year. In North America we continue to be a player in the steel sector’s consolidation process with the acquisition of Sheffield Steel and several downstream and fabrication shops as well as with steel scrap collection and processing units. For the period between 2007 through 2009 plans call for approximately US$ 4 billion in expansions and improvements in mills in Brazil and abroad. Of this total, 60% will be invested in mills in Brazil and the balance in mills abroad. Most of the investments will be made in the expansion of the integrated mill at Ouro Branco (Açominas), in which the installed capacity will go from 3 to 4.5 million metric tons. This increase in capacity should be available in the second half of 2007. + 12% 21,605 19,230 + 8% 18,435 17,040 + 10% 11,005 9,970 + 12% 11,985 Abroad Abroad 10,680 10,600 9,260 + 14% Brazil Brazil + 1% 6,360 6,450 2007 2009 2007 2009

INVESTMENT PLAN 2007 – 2009: US$ 148 million European Investment Plan INVESTMENT PLAN 2007 – 2009: US$ 148 million ACTUAL 2006 In million US$ In million US$ EUROPE 515.1 CAPEX 17.9 ACQUISITIONS 497.2 2007 2008 2009 TOTAL EUROPE 60 45 43 148 MAIN INVESTMENTS: Acquisition of 40% stake in Corporación Sidenor (Jan./06) Investment of US$ 219.2 million plus US$ 121.0 million in liabilities Acquisition of 100% of GSB Acero through Corporación Sidenor (Dec./06) Investment of US$ 143.0 million plus US$ 14.0 million in liabilities Capital expenditures totaled US$ 17.9 million in synergies and improvements in the mills Gerdau plans to invest more than US$ 30 million in a new bloom caster

Outlook BRAZIL NORTH AMERICA SOUTH AMERICA EUROPE Growing volumes in the domestic market: 6 to 8% in 2007 Industrial and residential construction sectors revving up Recovery of agricultural sector Prices in reais stable Costs relatively stable NORTH AMERICA Demand remains strong for rebars, merchant bars and profiles Imports falling Increase in supply of higher value added products SOUTH AMERICA Strong growth in the economy Civil construction sector strengthening Increase in public investments Demand in line with economic growth EUROPE Demand continues strong Price increases Specialty steel sector performing well Growing market share

Disclaimer This document can contain statements which constitute forward-looking statements. Such forward-looking statements are dependent on estimates, data or methods that may be incorrect or imprecise and that may be incapable of being realized. These estimates also are subject to risk, uncertainties and suppositions and include, among other, overall economic, political and commercial environment, in Brazil and in the markets we are present in addition to government regulations, present and future. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements, which speak only as of the date made. Abro a sessão para perguntas e respostas. Como parece não haver mais perguntas, gostaria de agradecer a participação e o interesse de vocês e convidá-los para estarem conosco na próxima divulgação de resultados. Obrigado e boa tarde para todos.

Gerdau S.A. www.gerdau.com.br inform@gerdau.com.br +55 51 3323 2703