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

2. GERDAU
Results
Business
Capital Markets
Steel Industry
Brazil

3. Steel Industry
Brazil

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

5. 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

6. 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

7. 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

8. 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

9. GERDAU
Results
Business
Capital Markets

10. Results
In R$ million  10

11. 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

12. 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

13. 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

14. 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

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

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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. (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

26. 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

27. GERDAU
Results
Business
Capital Markets

28. 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

29. 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

30. 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

31. 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

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

33. 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

34. 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

35. 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

36. 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

37. GERDAU
Results
Business
Capital Markets

38. 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 % for preferred shares)
Has had an Investor Relations Dept. for more than years. 38

39. 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

40. Gerdau and Subsidiaries

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

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

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

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