Gerdau Group UBS Sixth Annual CEO Conference Rio de Janeiro, March 7-8, 2005

Steel Sector Gerdau S.A. Consolidated Consolidated Figures Capital Markets All data presented in R$ and metric tons, except when indicated

+23.2% +2.6% +3.5% +4.9% +5.7% +2.7% +5.3% +2.0% +5.6% +4.6% World Output Crude Steel In million tons 3 The world production of crude steel surpassed the mark of 1 billion tons in 2004, an increase of 8.9% over the previous year. The growth average has been 4.6% year over year if China was not included. Source: IISI

4 Source: Metal Bulletin COMPANY OUTPUT 2003 RANKING 2002 After the investment program in Brazil is completed, Gerdau will have an installed capacity of 21 million tons of crude steel per year. Mittal Steel (Ispat, LNM and ISG) will be the biggest world steel company with 60 million tons of installed capacity. World Top Producers Crude Steel COMPANY OUTPUT 2003 RANKING 2002 In million tons

Steel Sector Gerdau S.A. Consolidated Consolidated Figures Capital Markets

NORTH AMERICA 14 mills and 1 strategic shareholding (Gallatin Steel) 29 fabrication shops 13 downstream operations and special sections BRAZIL 10 mills 11 fabrication shops 8 downstream operations and special sections 75 sales points (Comercial Gerdau) and flat steel service centers SOUTH AMERICA 2 mills and 1 strategic shareholding (Sipar) 4 fabrication shops 4 sales points Sipar** Laisa Gerdau Açominas S.A. Aza Gerdau Ameristeel Corp. Gallatin Steel* Units Distribution ** Rolling mill, 38% stake JV * Flat steel mill, 50% stake JV 6

12,970 7, ,730 ROLLED PRODUCTS Billets, merchant bars, rebars, wire rod, drawn products, welded meshes, nails, downstream products, fabricated steel products, flat steel products and grinding balls. -8,290 NORTH AMERICA 2,610 - SLABS, BLOOMS & BILLETS 16,380TOTAL Billets, merchant bars, rebars and wire rod. 510SOUTH AMERICA Billets, slabs, blooms, merchant bars, rebars, wire rod, drawn products, welded wire meshes, structurals, nails, downstream products, fabricated steel products and specialty steel. 7,580BRAZIL MAIN PRODUCTSCRUDE STEEL 7 In thousand tons Installed Capacity December 2004

10,274 9,045 6,933 5,968 5,836 8 Output Evolution CRUDE STEEL In thousand tons ROLLED PRODUCTS In thousand tons Abroad Brazil 13,448 12,343 9,441 7,251 7,065 Utilization rate: Brazil: 91.7% Abroad: 83.7% Utilization rate: Brazil: 96.2% Abroad: 83.9%

12,560 12,144 9,151 7,394 7,213 Shipments In thousand tons 74% increase in sales in the last 5 years 9 Abroad BrazilAverage price (Net sales (R$)/ton)

10 ASIA 51% SOUTH AMERICA 6% NORTH AMERICA 9% CENTRAL AMERICA 11% AFRICA 11% EUROPE 12% ASIA 34% SOUTH AMERICA 15% NORTH AMERICA 15% CENTRAL AMERICA 17% AFRICA 8% EUROPE 11% Exports EXPORTS 2004 Shipments from Brazil reached 2.7 million tons in 2004 Revenues generated by exports reached US$ 1.1 billion in 2004 Average price 57.9% greater than in 2003 (in US$)

Financials In R$ million 11 NET SALES REVENUE +46.6% - Better prices in the international market; - Recovery of the domestic demand; - Consolidation of the units acquired in NET FINANCIAL EXPENSES -72.8% - Increase in financial investments of the cash generated in the period; OTHER OPERATING INCOME +1,153.3% - Favorable outcome of a legal suite due to the improper collection of PIS. EQUITY PICK UP +14.7% - FX variation over investments abroad; - Fiscal incentives reserves; - Goodwill amortization. MAIN VARIATIONS (YoY):

12 Results by Region 2004 Var. % BRAZIL NORTH AMERICA SOUTH AMERICA In R$ million Gross Revenue 12,914 9,453 1,040 23,407 15,78348% Net Revenue 9,976 8, ,597 13,36747% Gross Profit 4,307 1, ,245 3,29090% EBITDA 3,705 1, ,553 2,683107% Net Income 2, ,235 1,255158% In R$/Ton Gross Revenue 1,948 1,747 1,996 1,864 1,30043% Net Revenue 1,505 1,637 1,466 1,560 1,10142% Gross Profit % EBITDA % Net Income % In % Gross Margin43%19%36%32%25% EBITDA Margin37%18%33%28%20% Net Margin22%10%23%17%9%

992 1,055 1,1951,217 1,435 1,705 1,830 1,844 US$ million NET REVENUE US$ million EBITDA Brazil North America South America GROSS MARGIN EBITDA MARGIN 2.9% 14.9% 42.0%43.6% 34.1% 30.3% 3.6% 13.5% 36.2% 35.8% 32.1% 25.3% Evolution of Results 13

COST OF DEBT (per annum) Brazil - Domestic currency 15.2% Brazil – Foreign currency FX+4.4% Companies abroad 7.2% Indebtedness HEDGE In R$ million Foreign currency debt 2,358 Swap operations 225 Exports2,904 Cash in US$ 1,393 TOTAL HEDGE 4,522 COVERAGE RATIO 1.9x DEBT AVERAGE LIFE 4.1 years In R$ million 14

15 In US$ million Capital Expenditures 772 Abroad Brazil Scheduled 1,140 1, North Star Assets (USA) Investments in São Paulo Acquisition of stakes in Colombia Melt shop start up in São Paulo Acquisition of stakes in Colombia Improvements at Piratini Improvements at Cosigua Rolling mill start up in São Paulo Improvements in Colombia New blast furnace in Ouro Branco Improvements at Brazilian mills New Specialty Steel mill in Rio

Main Investments Brazil 16 DISBURSEMENT SCHEDULE Brazil:Expansion: US$ 1,620 mm Update: US$ 750 mm TOTAL INVESTMENT: US$ 3.2 BILLION Abroad: Update: US$ 800 mm INSTALLED CAPACITY Brazil – Crude Steel Current: 7,580 k tons New: 11,720 k tons Brazil – Rolled Products Current : 4,730 k tons New: 6,610 k tons Consolidated – Crude Steel Current : 16,380 k tons New: 20,950 k tons Consolidated – Rolled Products Current : 12,970 k tons New: 15,490 k tons 2005: US$ 1,140 mm 2006: US$ 1,260 mm 2007: US$ 770 mm

Outlook In general terms, the expectation is that 2005 will be similar to 2004 both in Brazil and abroad. Increase in cost of coking coal and iron ore brings repercussions to the steel products international prices. In the short term there is a decline in scrap and pig iron prices. In Brazil the trend is to see margins in the 1Q05 at the same levels as those of the 4Q04. In the 1Q05, volumes in Brazil seasonally low, compensated by exports. In Brazil GDP should grow around 4% leading to an increase in the demand for steel products. Investments in infrastructure in Brazil are expected to grow sharply in The increase in interest rates in North America brings uncertainties. The role of China. 17

Steel Sector Gerdau S.A. Consolidated Consolidated Figures Capital Markets

GGBR4 – GERDAU S.A. GNA – GERDAU AMERISTEEL CORP. GGB – GERDAU S.A. ADRs GOAU4 – METALÚRGICA GERDAU S.A. Stock Performance Source: Economática/Bloomberg - Period: to (Base 100). Metalúrgica Gerdau S.A. Ibovespa Market Cap: US$ 1.9 bi +99% +22% ADRs - Gerdau S.A. Dow Jones Market Cap: US$ 5.1 bi +68% +3% Gerdau Ameristeel Corp. S&P TSX Market Cap: US$ 2.0 bi +71% +17% +54% +22% Gerdau S.A. Ibovespa Market Cap: US$ 5.1 bi 19

,100 1,200 1,300 1, Dec 03 Jan 04 Feb 04 Mar 04 Apr 04 May 04 Jun 04 Jul 04 Aug 04 Sep 04 Oct 04 Nov 04 Dec 04 Jan 05 30% Stock bonus + 70% Split (GOAU) 100% Stock bonus (GGBR) METALÚRGICA GERDAU S.A. (GOAU4) Monthly daily average # of trades Monthly daily volume Monthly daily average # of trades Monthly daily volume GERDAU S.A. (GGBR4) 20 GOAU4: 109 trades US$ 1.6 mm GGBR4: 492 trades US$ 5.4 mm Stock Liquidity Bovespa GOAU4: 240 trades US$ 2.5 mm GGBR4: 862 trades US$ 8.7 mm Source: Economática

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