CEO’s Roundtable Conference UBS WARBURG “Brazil 2001” CEO’s Roundtable Conference FEBRUARY 05-07, 2001 RIO DE JANEIRO - BRAZIL

GERDAU Results Business Capital Markets Steel Industry Brazil

Steel Industry Brazil

Crude Steel Production 27.8 million metric tons in 2000 2000 % * Does not included stake in Açominas source: IBS 04

Rolled Products Output In thousand metric tons 18.2 million metric tons in 2000 Gerdau* is the largest long steel producer in Brazil. Output was 3.3 million metric tons in 2000, a 46% market share for long steel. Long Rolled Products 6,969 Flat Rolled 11,212 In thousand metric tons Source: IBS * Does not included stake in Açominas 05

Apparent Consumption Million metric tons 1997 1998 1999 2000 2001 15.3 14.5 14.1 15.8 16.5 18.0 2002 Source: IBS 06

Steel Sector represents 1.8% of GDP GDP Contribution Steel Sector represents 1.8% of GDP 1.8% Exports 26% Domestic Market 74% GDP 2000 US$ 565 billion Steel Sector Turnover US$ 10 billion 2000 data estimated Source: IBS 07

Investments 40% 20% 3% 4% Energy 15% 4% Environmental 6% 8% Continuous US$ 6.6 billion from 2000 to 2004 20% Reduction 40% Rolling Mills 3% IS & Automation 4% Energy 4% Environmental 6% Continuous Casting 8% Melt Shops 15% Other Source: IBS 08

GERDAU Results Business Capital Markets

Results In R$ million  10

Net Revenue In R$ million 3.6% 1,363 1,316 4Q00 3Q00 Revenues generated abroad present gains when converted to Reais due to currency devaluation. (+6% for 4th quarter only) As vendas físicas cresceram 8,5%, impulsionadas pelas vendas domésticas e exportações que cresceram 14,2%. Os preços no mercado interno permaneceram praticamente estáveis, enquanto as exportações e o exterior apresentaram queda significativa, -13% nas exportações, -3,9% na américa do norte e -5,2% na américa do sul. Na Gerdau S.A., os fretes acompanharam o crecimento das vendas, passando de 26,6 p/ 30,1 milhões (+13%). A maior variação do periodo foi na AmeriSteel, onde houve um diferimento de 16,7milhões referente ao 1° semestre. Mais uma parcela de mesmo valor será diferida no 4°T. Ano que vem a situação ficará regularizada. 11

Gross Profit In R$ million 0.3% 336 337 3Q00 4Q00 Export prices in Açominas suffered some reduction vis-à-vis production cost. Gross margin changed to 24.6% in 4th quarter from 25.6% in the 3th quarter. 12

Net Financial Expenses In R$ million 65.6% 4Q00 96 159 3Q00 Impact of the exchange rate on the debt in U.S Dollars. 13

Equity Pick-up In R$ million 188.2% 3Q00 49 17 4Q00 Impact of the exchange rate on the net worth of the subsidiaries abroad. 14

Other Oper. Revenues In R$ million 18.2% 3Q00 4Q00 11 13 Negative goodwill amortization of investment in Açominas. 15

Non-operating Expenses/Revenues In R$ million 3Q00 4Q00 (2) 13 Tax recovery in Açominas and SIPSA (REFIS & IVA). 16

Income Tax & Social Contribution In R$ million 2 (8) 4Q00 3Q00 Reversion of provision for Income Tax due to increase in financial expenses and payment of interest over capital stock. 17

Net Income In R$ million 13.1% 99 86 4Q00 3Q00 Increase in financial expenses and lower margins reduced net income. Net margin in 4th quarter was 6.3%. 18

Crude Steel Output 7.1 million metric tons in 2000 + 39.5% over 1999 In 1,000 metric tons 1,189 542 76 1,143 558 55 1,110 625 66 1,013 626 63 1,702 1,801 1,756 1,808 Brazil North America South America 4Q00 3Q00 2Q00 1Q00 19

Rolled Products Output 5.9 million metric tons in 2000 + 37% over 1999 In 1,000 metric tons 809 508 93 873 538 71 859 550 75 799 601 77 1,477 1,484 1,482 1,409 1Q00 2Q00 3Q00 4Q00 Brazil North America South America 20

Gross Revenue R$ 6.2 billion in 2000 + 53.8% over 1999 1,627 1,619 In R$ million Foreign Companies Exports Domestic Market 1,627 1,434 1,546 1,619 21

7.2 million of metric tons in 2000 Sales Volume 7.2 million of metric tons in 2000 + 41.5% over 1999 Domestic Market Foreign Companies Exports 1,833 1,714 1,756 1,906 957 882 838 870 342 218 205 288 661 669 658 621 1Q00 2Q00 3Q00 4Q00 In 1,000 metric tons 22

EBITDA R$ 1.1 billion in 2000 + 26.9% over 1999 Abroad Brazil 261 253 In R$ million Abroad Brazil 261 253 282 264 1Q00 2Q00 4Q00 3Q00 209 205 77 55 177 76 192 69 23

Indebtedness Mar 00 Dec 00 Jun 00 Sep 00 w.a. cost 12.6% p.a. Short In US$ million w.a. cost 12.6% p.a. Short Term Long 1,661 1,592 1,634 1, 629 879 880 842 973 755 749 750 688 Mar 00 Dec 00 Jun 00 Sep 00 Cash position Dec 00: US$ 360 MM, 58% in U.S. dollars 24

(proportional to 37% stake) Debt Breakdown AÇOMINAS 6% (proportional to 37% stake) EUROBONDS 14% ACC/PRE- EXPORT 7% DEBENTURES BNDES OTHERS 8% FOREIGN COMPANIES 44% 25

EBITDA and financial expenses of last 12 months. Ratios JUN00 SEP00 MAR00 DEC00 2.5x 2.3x 3.8x 3.5x 4.2x Net Debt EBITDA Net Financial Expenses 2.7x EBITDA and financial expenses of last 12 months. 26

GERDAU Results Business Capital Markets

The Company 100 years of tradition focused in the production of steel in mini-mills and in the distribution of steel products. Installed capacity of 8 million metric tons of crude steel. 25th largest world steel producer and best ranked Brazilian Company. Largest Latin American long steel producer. Distribution network with 63 sales points, 3 service centers for flat steel and 24 fab shops for civil construction. 28

The Focus Focus on long rolled steel and stake in flat and semi-finished products (slabs and billets) through Comercial Gerdau and Açominas. Common Long Rolled Products 67% Specialty Long 4% Flat Steel (Resale) 7% Semi-finished (slabs and billets) 12% Drawn Products 10% Breakdown of Sales 81% long steel products 29

21 Plants 10 in Brazil 9 abroad 2 shareholdings GERDAU S.A. MRM * Minority Shareholdings * Sipar Aza Sipsa Laisa AmeriSteel Courtice MRM Açominas * GERDAU S.A. 10 in Brazil 9 abroad 2 shareholdings 30

Goals BRAZIL ABROAD Maintain its leadership in Long Steel Market the long steel market. Increase supply by offering new products and services. Gerdau 46% Belgo 35% Others 19% Long Steel Market ABROAD Consolidate recent acquisitions and enhance synergies. 31

Management Strive for excellence through variable compensation programs. Stimulate empowerment and value pro-active attitude of associates. 32

How to Add Value Fabrication Shops abroad. Advantages: Enhance the Armafer (cut & bend) network in Brazil and of Fabrication Shops abroad. BRAZIL In operation Under construction USA Advantages: Enhance quality Increase productivity Reduce waste Reduce working capital 33

Sales BUSINESS-TO-BUSINESS Distribution through the industrial units and Comercial Gerdau branches. Sales team acting as consultants and presenting technological innovations to clients and posting orders through the web. BUSINESS-TO-BUSINESS Proprietary sales site as an additional tool to service clients. 34

Depreciation figures based at the exchange rate on December 2000 Investments US$ 220 million in 2000 Brazil Abroad CAPEX Total DEPRECIATION 1Q00 2Q00 3Q00 42 41 40 19 15 14 56 59 37 46 44 4Q00 36 13 49 47 Depreciation figures based at the exchange rate on December 2000 35

Environment In the last decade Gerdau invested US$ 150 million to ensure its ecoefficiency. Investments in dust collection systems were well over US$ 45 million and an additional US$ 11 million are scheduled for investments through 2003. 36

GERDAU Results Business Capital Markets

Gerdau Experience In 1947 Gerdau lists for the first time at the Stock Exchange in Porto Alegre, in 1966 at the Bovespa and in 1999 at the NYSE. Gerdau S.A. is part of the Bovespa Index. Since 1977 Gerdau guarantees the payment of a minimum 30% dividends over adjusted net income (since 1997 33% for preferred shares) Has had an Investor Relations Dept. for more than 30 years. 38

Gerdau Experience Gerdau promoted the restructuring of its subsidiaries in 1995. In 1996, Gerdau began disclosing voluntarily its cash flow. Endeavors to become a benchmark in early disclosure . Bilingual conference calls on the web. Brazil 36% Others 39% USA 25% 20,000 visits/month. 10% visit the financial section. 64% of visits to site are abroad. Site 39

Gerdau and Subsidiaries

In thousand metric tons Gerdau S.A. In thousand metric tons 2000 In R$ million 41

In thousand metric tons Açominas - 37% In thousand metric tons 2000 In R$ million 42

In thousand metric tons South America Except Brazil In thousand metric tons 2000 In R$ million Includes Stake of 38% in Sipar. 43

In thousand metric tons North America In thousand metric tons 2000 In R$ million 44

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