1. New York, September 3-5, 2003 DEUTSCH BANK Second Annual Global Emerging Markets One-on-One Conference

2. STEEL SECTOR GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

3. WORLD PRODUCTION Crude Steel Source: IISI 3 In 1,000 tons

4. LARGEST PRODUCERS Crude Steel 2002 Source: IISI In million tons 4 Company Production Company Production

5. INTERNATIONAL PRICES & COST OF MAIN INPUTS Average world steel transaction price Source: MEPS/ USGS / EIA 350 300 250 200 Jan. 02Jul. 02Jul. 03Jan. 03 333 $/t – Hot Rolled Coil 322 $/t - Merchant Bar 307 $/t - Wire Rod 311 $/t - Rebar US$/ton 5 Retail Sales of Electricity Industrial Sector Composite Prices for Steel Scrap

6. CRUDE STEEL OUTPUT 6M2003 Source: IBS In 1,000 tons Usiminas/Cosipa Gerdau/Açominas Belgo/CST/Acesita (Arcelor) CSN Aços Villares V&M do Brasil Barra Mansa 4,296.7 3,366.4 4,192.8 2,607.9 397.0 259.2 189.4 Brazilian Crude Steel Producers 6 Brazilian Long Steel Producers Gerdau 48% Belgo (Arcelor) 35% Aços Villares 6% Barra Mansa 5% V&M do Brasil 6%

7. STEEL SECTOR GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

8. 102 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. 14 th largest world steel producer according to IISI. Largest long steel producer in the Americas. Metalúrgica Gerdau S.A. is listed on the São Paulo Stock Exchange, Gerdau S.A. is listed on the São Paulo Stock Exchange, on the NYSE and on the Latibex (Madrid Stock Exchange). Gerdau Ameristeel Corp. is listed on the Toronto Stock Exchange. 10 units in Brazil, 12 abroad and 2 strategic shareholdings (Sipar and Gallatin Steel). 68 sales points in Brazil (Comercial Gerdau). 17 downstream operations and special sections (5 in Brazil e 12 in North America). 26 fabrication shops (9 in Brazil, 03 in South America and 14 in North America). 4 service centers for flat steel in Brazil (Comercial Gerdau). HIGHLIGHTS 8

9. Barão de Cocais BRAZIL 7.4 MILLION TONS OF CRUDE STEEL PER YEAR 4.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR ABROAD 7.0 MILLION TONS OF CRUDE STEEL PER YEAR 6.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR SIPAR LAISA GERDAU AMERISTEEL GERDAU S.A. AÇOMINAS AZA GEOGRAPHICAL DISTRIBUTION Gerdau S.A. Açominas Cearense Açonorte Usiba Cosigua Açominas Guaíra Piratini Riograndense Divinópolis 9

10. Billets, rebars, merchant bars, profiles, wire rod, drawn products, nails, specialty steel. Billets, slabs, blooms, rebars, merchant bars, profiles and structurals. Rebars, merchant bars, profiles and wire rod Products Rebars, merchant bars, profiles, wire rod, downstream products, special sections and flat products. Crude Steel Rolled Products CAPACITY & PRODUCTS 2003 10 In 1,000 tons

11. OUTPUT EVOLUTION Growth Average Rate 1980 - 2002 CRUDE STEEL 10.4% year ROLLED PRODUCTS 9.6% year 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 1997 2002* Açominas (control) 2002 Co-Steel 2002 1980 19841996199219882000 * 100% of Co-Steel 11

12. STEEL SECTOR GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

13. HIGHLIGHTS 6M2003 Net Income of R$ 262 million in 2Q03 and R$ 549 million in 1H03. Net Sales of R$ 3.0 billion in 2Q03 and of R$ 6.4 billion in 1H03. Crude steel Output in March reached 1 million metric tons, a historical high. Dividends now paid quarterly. Stock Bonus of 100% for Metalúrgica Gerdau S.A. shareholders and 30% to Gerdau S.A. shareholders. Reverse split of 1,000:1 and shares quoted as single units. Stock option plan for management and employees. Metalúrgica Gerdau S.A. listed as Level 1 in Bovespa’s Corporate Governance Index. 13

14. RESULTS 6M2003 14

15. Gross MarginEbitda Margin Brazil North America South America COMPARISON OF RESULTS 15 Ebitda 2Q021Q03 2Q03 546 70 29 38 47 620 310 105 24 439 706 646 R$ million Net Sales 2Q021Q032Q03 1,769 1,166 96 R$ million 1,717 1,490 120 1,086 819 73 1,978 3,327 3,030 2Q 6% 31% 1Q022Q3Q4Q1Q032Q1Q022Q3Q4Q1Q03 7% 38% 32%

16. Slight increase in volumes. Higher international prices and stronger exports could counterbalance the lower domestic market demand. SHIPMENTS Brazil – Domestic Market Brazil – Exports North America South America 793 1,284 101 854 657 1,271 107 932 280 695 76 2Q021Q032Q03 2,976 2,889 1,983 16 In 1,000 tons Exports increased +183% 2Q02/2Q03 798

17. 2nd QUARTER 2003 SALES BY SEGMENT 41% Civil Construction, 58% Industry and 2% Agriculture (Gerdau S.A. non consolidated) SALES BY PRODUCT LINE Domestic Market 14% Exports 86% Semi-finished products Domestic Market 54% Exports 46% Common long steel products Abroad 39% Common long steel products Brazil 22% Semi-finished 22% Specialty steel 3% Drawn products 5% Flat steel 9% 17

18. OUTPUT CRUDE STEEL OUTPUTROLLED PRODUCTS OUTPUT 885 633 81 921 1,122 92 940 1,216 83 1,599 2,135 2,239 1,679 2Q021Q032Q03 1,198 687 72 1,688 1,195 85 1,321 85 1,957 2,968 3,085 South America North America Brazil 18 In 1,000 tons 2Q021Q032Q03

19. INDEBTEDNESS June 2003 In R$ million 19 * US$ debt contracted in Brazil

20. DEBT BREAKDOWN June 2003 LONG TERM – R$ 3.6 billion Companies abroad 1,647.8 million Açominas (US$) 254.3 million Debentures (R$) 545.9 million Debentures (US$) – 205.3 million BNDES – 264.0 million Other – 154.9 million Açominas (R$) – 150.2 million ACC/Pre-export – 177.7 million Working Capital – 199.3 million SHORT TERM – R$ 3.2 billion BNDES – 103.9 million Other – 261.9 million Açominas (R$) – 74.1 million ACC/Pre-export – 219.2 million Eurobond – 344.3 million Import loans – 323.6 million Working Capital 354.2 million Companies abroad 927.0 million Açominas (US$) – 609.1 million Debentures (R$) – 11.8 million Import loans – 14.2 million 20

21. FINANCIAL RATIOS * EBITDA of last 12 months. 21

22. INVESTMENTS 2 nd QUARTER 2003 US$ 72 MM Açominas US$ 34 mm Gerdau US$ 23 mm South America US$ 4 mm North America US$ 11 mm Stronger investments in 2003 due to the new wire rod rolling mill facility. HIGHLIGHTS Conclusion of the new wire rod rolling mill in Açominas in December 2003. Increase of electric furnace at Piratini for a 15% increase in melt shop capacity. Installation of a new continuous caster at the Usiba mill (conclusion in 2004). Improvement and technological update of units in North America. São Paulo Greenfield project will be re-visited in the 2 nd half of 2003. 2003 FORECAST US$ 230 MM 22

23. STEEL SECTOR GERDAU S.A. CONSOLIDATED Highlights Consolidated Figures Capital Markets

24. Other investors 16% Foreign Inst. Investors 20% Brazilian Inst. Investors 12% Gerdau Companies 52% SHAREHOLDERS STRUCTURE June 2003 Other investors 35% Foreign Inst. Investors 18% Brazilian Inst. Investors 22% Gerdau Controlling Group 25% METALÚRGICA GERDAU S.A. GERDAU S.A. 24

25. DIVIDEND POLICY Adjusted Net IncomeDividend paid Distributes at least 30% of the Adjusted Net Income. As of March 2003, dividend payments are being made on a quarterly basis. 1998 R$ million METALÚRGICA GERDAU S.A. 2000 174 57 106 34 1999 163 54 2001* 234 123 2002 412 140 Pay out 32.8%32.0%32.8%35.6%34.9%32.0%33.1%32.6%52.5%33.9% 25 Yield 11.7 %3.6 %6.1 %6.8 %7.1%16.4 %6.0 %7.9 %17.0 %12.4 % GERDAU S.A. 2001 461 164 2000 382 125 1999 306 98 1998 181 59 2002 763 266 R$ million * Higher amount due to a supplementary dividend payment.

26. APPRECIATION CHART Date: 08/19/2003 Source: Economatica GGBR4 +79% Ibov +56% GGBR4 +56% GGBR4 +257% Dow +9% Ibov -35% Dow +5% Dow -15% Ibov -50% GOAU4 +112% GOAU4 +80% GOAU4 +244% 1 year 3 years 5 years Met. Gerdau – GOAU4 Gerdau - GGBR4 Ibovespa Dow Jones PROFITABILITY IN US$ 26

27. Metalúrgica Gerdau S.A Gerdau S.AIbovespa Period: From 02/21/2001 to 08/19/2003 Source: Economatica PRICE EVOLUTION 27

28. www.gerdau.com.br inform@gerdau.com.br