Tenth Annual Latin America Conference New York - March 2002

Steel Sector Company Overview Recent Facts Operating Performance Financial Performance Growth Strategy All data contained in this presentation pertains to Gerdau S.A. consolidated

Steel Sector World * Excess capacity * Lower prices * Economic slowdown * Long products * Consolidation South America * Crisis in Argentina * Gerdau companies Brazil * Power rationing * Strong demand USA * Anti-dumping process * Section 201 * Economic recovery 03

Source: IISI World output As published by Metal Bulletin, Gerdau is the 24 th largest crude steel producer in the world 04 In million metric tons Country 2001Variation2000

Source: IISI In million metric tons Apparent consumption in Latin America Region 2000 Average annual growth % 2005 Estimate 05A

Brazil % -5% 0% 5% 10% 15% 20% Elasticity (multiples) Apparent consumption - Brazil GDP Elasticity Source: IISI/ IBS APPARENT CONSUMPTION Brazil x GDP 05B MARKET SHARE Long products GERDAU 48% Belgo 36% Others 16%

Source: IBS/ Gerdau Includes stake in Açominas since 1999 Crude steel Long rolled % 12% 17% 21% 32% 48% % CST GERDAU Usiminas CSN Belgo 4,784 4,662 4,620 4,048 2,668 LARGEST CRUDE STEEL PRODUCERS GERDAU’S PARTICIPATION IN THE NATIONAL PRODUCTION 06 Brazil 1,000 metric tons

Steel Sector Company Overview Recent Facts Operating Performance Financial Performance Growth Strategy

Gerdau 08 * 100 years of tradition focused on the production of steel in mini-mills and in the distribution of steel products. * Installed capacity of 11 million metric tons of crude steel (including 100% of Açominas and the Cartersville unit). * 24th largest world steel producer and the best ranked Brazilian company. * Largest Latin American long steel producer. * Distribution network with 70 sales points, 3 service centers for flat steel and 27 fabrication shops for civil construction. * 10 steel plants in Brazil (including Açominas), 10 abroad and 1 strategic shareholding.

Capital structure Met. Gerdau S.A. Gerdau S.A. Seiva Gerdau International Açominas AmeriSteel Courtice MRM Sipsa Laisa Aza Sipar 51% 56%100%96% 85% 100% 38% 72% 100% 09

Participation in total capital Metalúrgica Gerdau S.A. 19% 26% 27% Controllers Brazilian Institutional Investors Public Foreign Institutional Investors Date: 12/31/ % 14% 16% Gerdau S.A.

Output evolution Aza Chile 1992 Part. Sipar 1998 MRM Canada 1995 Açominas 1997 AmeriSteel USA 1999 Crude steel Rolled products 11 Cearense Guaíra 1982 Laisa Uruguay 1981 Hime 1985 Barão de Cocais 1988 Courtice Canada 1989 Usiba 1989 Piratini 1992 Pains 1994 Sipsa Argentina ,000 metric tons Variation Crude steel1,3037, x Rolled products 1,1826, x

Installed capacity BRAZIL * 7.2 million metric tons of crude steel * 4.7 million ** metric tons of rolled products 11 MILLION METRIC TONS ABROAD * 3.8 million metric tons of crude steel * 3.6 million metric tons of rolled products ** Includes the new Açominas’ rolling mill 12

Geographical distribution Sipar Aza Sipsa Laisa AmeriSteel (with Cartersville) Courtice MRM Gerdau S.A. Açominas Cearense Açonorte Usiba Cosigua Barão de Cocais Açominas Guaíra PiratiniRiograndense Divinópolis GERDAU S.A. AÇOMINAS 13

Steel Sector Company Overview Recent Facts Operating Performance Financial Performance Growth Strategy

Recent facts 15 ** In December 2001, through an auction organized by the Brazilian Central Bank, Gerdau acquired an additional 17.67% of Açominas' total capital. ** Also in December 2001, Gerdau acquired the operating assets of Birmingham Southeast, through AmeriSteel, its subsidiary in the United States. ** In February 2002, Gerdau signed contracts to acquire 24.8% of Natsteel's stake in Açominas’ total capital. This agreement must be implemented by September 9 th, 2002.

Açominas Source: Açominas PRODUCTS: BilletsBlooms Slabs RebarsMerchants Structurals Shapes and Profiles INSTALLED CAPACITY (metric tons): Crude Steel3.0 million Rolled Products740 thousand YEAR 2001: NET SALES:R$ 1,025 million EBITDA:R$ 265 million NET INCOME: R$ 93 million 16

Steel Sector Company Overview Recent Facts Operating Performance Financial Performance Growth Strategy

Output 1,000 metric tons 3,6615,066 7,058 7,242 2, ,875 1, ,450 2, ,662 2, CRUDE STEEL ,3984,272 5,901 6,059 2, , ,390 2, ,528 2, ROLLED PRODUCTS 1,000 metric tons Brazil South America North America

Sales 3,811 5,094 7,213 7,394 3, , ,598 2, ,724 2, IN METRIC TONS ,060 NET SALES 271 2,178 2,353 3,149 3, , ,8885,196 3,3102,178 In R$ million Brazil South America North America

Industry 51% Civil construction 46% Agriculture 3% SALES BY MARKET SEGMENTS Gerdau S.A. non-consolidated Sales SALES BY PRODUCT LINE In metric tons Common long rolled 67% Specialty 4% Drawn 10% Flat 6% Semi-finished 13% 20

Steel Sector Company Overview Recent Facts Operating Performance Financial Performance Growth Strategy

Highlights

Ebitda & Net income R$ million Gross Margin EBITDA Margin Net Margin BrazilNorth Am.South Am , ,310 1, EBITDA BrazilNorth Am.South Am NET INCOME 23

Investments 304 Average US$ million investments include the payments of: Açominas’ auction (17.7%)US$ 180 Natsteel’s stake in Açominas (24.8%)US$ 210

Indebtedness LONG TERM R$ 2.1 Bi BNDES R$316M Companies abroad R$602M Pre Export R$104M FIRCE R$142M Açominas (US$) R$227M Açominas (R$) R$148M Others R$ 15M Eurobonds R$287M Debentures R$ 219 M 25 BNDES R$102M ACC / Pre Export R$ 71M FIRCE R$159M Brazilian Central Bank R$333M Açominas (US$) R$391M Açominas (R$) R$46M Others R$ 12M SHORT TERM R$ 2.1 Bi Companies abroad R$993M

Amortization 26

Ratios %57.53% 56.55% 51.55% 25.93%50.87% 50.35%44.61% 2.4X3.5X3.0X3.2X 1.4X2.7X2.3X2.4X Total debt/ Total capitalization Net debt/ Total Capitalization Total debt/ EBITDA Net debt/ EBITDA EBITDA/ Net financial expenses ( minus monetary & exchange rate var. ) - 3.9X 5.7X 27

R$ million Cash flow 28

Steel Sector Company Overview Recent Facts Operating Performance Financial Performance Growth Strategy

Growth strategy * Mini-mills * Acquisitions * Internationalization * Standing out between peers * Barriers to entry * Market Segments (Civil Construction, Industrial and Agriculture) 30