BOLSA DE MADRID LATIBEX Madrid, Barcelona España November 28-29, 2002 Gerdau

STEEL SECTOR Gerdau S.A. - Consolidated Açominas Gerdau Ameristeel Corporate Governance Capital Markets

Source: IISI / LAFA / IBS WORLD - CRUDE STEEL OUTPUT In million metric tons 03

AMERICAS - CRUDE STEEL OUTPUT Source: IISI / LAFA / IBS In million metric tons 04

BRAZILIAN OUTPUT Growth due to: Conclusion on the refurbishment of the blast furnace at CSN. Increase in capacity of melt shop at Cosipa. Source: IBS 1,000 metric tons 05

Apparent consumption GDP Elasticity Source: IBS / Conjuntura Econômica APPARENT CONSUMPTION x GDP MARKET SHARE Long products GERDAU - 48% Belgo - 36% Others - 16% BRAZIL 13,0 4,2 -42,3 -3,5 2,7 3,9 -0,1 3,3 5,3 2,5 Elasticity (multiples) 06

Steel Sector GERDAU S.A. - CONSOLIDATED Açominas Gerdau Ameristeel Corporate Governance Capital Markets

101 years of tradition focused on the production of steel in mini-mills and in the distribution of steel products. Installed capacity of 14 million metric tons of crude steel. 15 th largest world steel producer by the IISI ranking. Largest long steel producer of the Americas and the 2 nd largest in the North America. Distribution network with 70 sales points, 5 service centers for flat steel, 25 fabrication shops for civil construction and 17 downstream and specialty facilities. 10 steel plants in Brazil, 12 abroad, 1 strategic shareholding (Argentina) and 1 joint venture (USA) in flat steel. Gerdau S.A. is listed on the Brazilian Stock Exchanges and on the NYSE and Gerdau Ameristeel Corp. is listed on the Toronto Stock Exchange. HIGHLIGHTS 08

1,000 metric tons Variation Crude steel1,30311, x Rolled products1,1828, x OUTPUT EVOLUTION CONSOLIDADED 2002 includes full year Co-Steel 09 Aza Chile 1992 Part. Sipar Argentina 1998 MRM Canada 1995 Part. Açominas 1997 AmeriSteel USA 1999 Crude steel Rolled products Cearense Guaíra 1982 Laisa Uruguay 1981 Hime 1985 Barão de Cocais 1988 Courtice Canada 1989 Usiba 1989 Piratini 1992 Pains 1994 Sipsa Argentina annualized Açominas (control) 2002 Co-Steel

Met. Gerdau S.A. Gerdau S.A. Seiva Gerdau Internacional Açominas Sipar Laisa Aza 51% 79%100%96% 67% 38% 100% Courtice MRM AmeriSteel Gallatin Gerdau Ameristeel Corp. 100% 50% CAPITAL STRUCTURE 10

(1)Flat steel mill, 50% owned JV (2) Rolling mill, 38% owned JV BRAZIL 7.2 million metric tons of crude steel 4.7 million metric tons of rolled products ABROAD 7.0 million metric tons of crude steel 6.8 million metric tons of rolled products Sipar (2) Laisa AmeriSteel Courtice MRM Gerdau S.A. Açominas Raritan plant INSTALLED CAPACITY 14,2 million metric tons/year Aza Gallatin (1) Sayreville plant Lasco plant 11

R$ million FINANCIAL STATEMENTS 12

Brazil North America South America 1,300 1,659 1,978 2,958 R$ million 4Q011Q022Q023Q02 Net Revenue Ebitda 4Q011Q022Q023Q02 R$ million Q011Q022Q023Q02 Gross Margin 42% 34% 13% Ebitda Margin 4Q011Q022Q023Q02 34% 29% 11% GERDAU S.A. CONSOLIDATED 13

INDEBTEDNESS R$ million HEDGE 14

DEBT BREAKDOWN Short term R$ 4.0 BILLION Long term R$ 3.1 BILLION Companies abroad R$ 2,162 mm Other - R$ 34 mm BNDES – R$ 91 mm Bank loan (res. 2770) – R$ 149 mm Import loan (Firce) – R$ 281 mm Pre-export /ACC – R$ 411 mm Açominas (US$) R$ 842 mm Companies abroad R$ 1,093 mm Debentures R$ 534 mm Eurobonds R$ 289 mm BNDES R$ 286 mm Açominas (R$) - R$ 223 mm Bank loan (res. 2770) - R$ 186 mm Import loan (Firce) - R$ 172 mm Açominas (US$) - R$ 156 mm Pre-export - R$ 114 mm Other - R$ 85 mm 15

RATIOS * Last 12 months 16

Crude Steel Output 1,000 metric tons 4Q01 1Q022Q023Q02 1, , , ,614 69% % 74 3% 2,049 2,227 1,957 2,334 Rolled Products Output 1,000 metric tons 4Q01 1Q022Q023Q % % 84 5% 1,4421,481 1,599 1,687 South America North America Brazil 4Q01 1Q022Q023Q02 Sales 1,000 metric tons 1, , , ,581 68% % 86 4% 1,963 2,121 1,983 2,314 South America North America Brazil 17

Steel Sector Gerdau S.A. - Consolidated AÇOMINAS Gerdau Ameristeel Corporate Governance Capital Markets

EVOLUTION OF STAKE IN AÇOMINAS 37%54% 79% US$ 212mm Stake before auction by the Brazilian Central Bank Acquisition of Natsteel´s 25% in Açominas Brazilian Central Bank Auction of 17% of former Banco Econômico SEPT.00 DEC.01 SEPT.02 US$ 180mm 19

FINANCIAL STATEMENTS R$ million * Source: Açominas´ Balance Sheet – sept/02 20

OUTPUT & SHIPMENTS Output Revamping of blast furnace of Açominas 2Q023Q021Q024Q Domestic market Exports Shipments 3Q02 (1,000 metric tons) Crude steel 651 Rolled products 91 1,000 metric tons 2Q021Q024Q013Q02 21

Steel Sector Gerdau S.A. - Consolidated Açominas GERDAU AMERISTEEL Corporate Governance Capital Markets

SYNERGIES Gerdau S.A. owns 67% of Gerdau Ameristeel and the minority shareholders the remaining 33% stake. With 11 mill locations (one Joint Venture – Gallatin), Gerdau Ameristeel is geographically positioned to service its costumers. Integrated with 29 downstream steel fabricating and specialty product businesses, aiming at better profit margins and less volatility of earnings. Listed in the Toronto Stock Exchange under the ticker symbol GNA. Gerdau AmeriSteel is the 3 rd largest crude steel producer and the 2 nd largest long steel producer in North America. Estimates of US$ 23 million in short term cost savings. The Board is comprised of 13 members of which 7 are independent. CO-STEEL + GERDAU NORTH AMERICA = GERDAU AMERISTEEL 23

* Joint Venture 50% owned. INSTALLED CAPACITY & OUTPUT CAPACITY UTILIZATION – 9 MONTHS 2002: 78% 24 1,000 metric tons

PRODUCT MIX Co-Steel Gerdau North America Gerdau Ameristeel Wire Rod 29% Flat Rolled 28% Bars 21% Rebars 18% Other 4% Wire Rod 2% Special Sections 8% Fab Shops 24% Rebars 32% Bars 34% Fab Shops 14% Flat Rolled 14% Wire Rod 15% Special Sections 4% Bars 28% Rebars 25% 25

RESULTS – PRO FORMA * Debt includes convertible debentures 26

Steel Sector Gerdau S.A. - Consolidated Açominas Gerdau Ameristeel CORPORATE GOVERNANCE Capital Markets

Objectives Increase managerial capacity Meet demand resulting from increased competitiveness in the international market. Ensure the succession process to avoid the loss of accumulated knowledge. Increase transparency for shareholders and capital market. CORPORATE GOVERNANCE 28

Processes Board Executive Committee Business Operations Clients Strategy Committee Excellence Committee CORPORATE STRUCTURE 29

BOARD General Business Orientation Jorge Gerdau Johannpeter Germano Gerdau Johannpeter Klaus Gerdau Johannpeter Frederico Gerdau Johannpeter Carlos João Petry Affonso Celso Pastore Oscar Bernardes Expedito Luz André Lara Resende Chairman of the Board Vice President Board Member Vice President Secretary Board Member 30

EXECUTIVE COMMITTEE JORGE GERDAU JOHANNPETER – global orientation of Strategic Planning – Corporate and Operations, Organizational Development, Corporate Communications and Community Relations Processes. FREDERICO GERDAU JOHANNPETER – business operation and global orientation of the following processes: Legal, Accounting, Audit and Holdings in addition to the Gerdau Forestry business. CARLOS JOÃO PETRY – guidance and support to the other members of the Corporate Executive Committee with their Business and Processes and global orientation of the following processes: Human Resources, Procurement and Logistics & Transportation. ANDRÉ JOHANNPETER – business operations in North America and global orientation of the Information Technology Process. CLÁUDIO JOHANNPETER – Long common and specialty Steel Operations in Brazil and global orientation of the Industrial Process (Production, Engineering, Health & Safety and Environment). OSVALDO SCHIRMER – operations in South America, global orientation of the Finance-related and Investors Relations Processes and Banco Gerdau. PAULO B. VASCONCELLOS – operations of Açominas and global orientation of the following processes: Marketing & Sales, Scrap Purchase and Quality Management Systems. EXPEDITO LUZ – Secretary of the Corporate Executive Committee and legal support to this Committee. 31

Steel Sector Gerdau S.A. - Consolidated Açominas Gerdau Ameristeel Corporate Governance CAPITAL MARKETS

Metalúrgica Gerdau S.A. 25% 19% 29% 27% Controllers Brazilian Institutional Investors Public Foreign Institutional Investors Date: 10/30/ % 13% 18% 15% Gerdau S.A. PARTICIPATION IN TOTAL CAPITAL 33

METALÚRGICA GERDAU S.A DIVIDENDS 1 ST HALF 2002MET. GERDAU S.A. GERDAU S.A. Dividends R$ 36.0 million R$ 79.9 million DividendsAdjusted Net Income 53% 33% 32% GERDAU S.A % 33% 32% 33% R$ million Distribution of dividends based on net income adjusted twice a year. 34

LIQUIDITY – GERDAU S.A.* Trading volume NYSE Bovespa US$ million LTM % Bovespa +440% Nyse -33 Bovespa +52% Nyse +72% Bovespa +71% Nyse * Preferred shares and ADRs 35

RETURN TO SHAREHOLDERS BOVESPA Gerdau S.A. GGBR4 IbovespaMetalúrgica Gerdau S.A. GOAU R$ R$ 66.2 (9,860 points) R$ Source: EconomáticaReference: 05/17/2002 a 11/13/

Source: Economática RETURN TO SHAREHOLDERS NYSE Gerdau S.A GGB Dow Jones US$ 77.9 (8,399 points) US$ 86.5 Reference: 05/17/2002 a 11/13/

10-YEAR TRACK RECORD Reference: 11/13/2002 Source: Economática Gerdau S.A.IbovespaDow JonesMetalúrgica Gerdau S.A. 38

INVESTOR RELATIONS AND CAPITAL MARKET Tag Along 100% to all shareholders New Corporate Governance structure Board External Members Fiscal Committee Disclosure Policy and compliance with Instruction CVM 358 Inclusion in Bovespa’s Corporate Governance Index Level I New Corporate Governance Practices: 39

New features: Shareholders Service section on the web site Quarterly Releases published in the web site Electronic mailing list service Toll Free Service for shareholders (Brazil only) Satisfaction research based on market analysts opinion Quarterly releases in quarter-over-quarter format Specific investor relations section on the web site Visits and presentations (non-deal road shows) to investors Interactive charts and key ratios on the web site (under construction) INVESTOR RELATIONS AND CAPITAL MARKET 40

INVESTOR RELATIONS SITE On our site you will find: Schedule of events, complete texts on results and complementary data, transcription and audio of conference calls, Q & A sessions in addition to information and documentation for shareholders. 41