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

2. 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

3. 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)

4. Solid Track Record 21,605 TOTAL INVESTED (1981 - 2006):
In thousand tonnes
21,605
TOTAL INVESTED ( ):
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 : 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 (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.

5. 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.

6. 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

7. 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

8. 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

9. 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$ million plus US$ million in liabilities
Acquisition of 100% of GSB Acero through Corporación Sidenor (Dec./06) Investment of US$ 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

10. 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

11. 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.

12. Gerdau S.A.