Gerdau S.A.Third Annual

Natural Resources ConferenceJP Morgan

São PauloFebruary, 2003

Steel Sector

Crude Steel Output2002

Source: IISI

1,000 tons 2002 2001 % change

China 181,552 150,866 20.3

Japan 107,748 102,866 4.7

United States 92,378 90,104 2.5

Russia 58,567 57,475 1.9

South Korea 45,390 43,852 3.5

F.R. Germany 45,004 44,803 0.4

Ukraine 34,049 33,074 2.9

Brazil 29,604 26,717 10.8

India 28,814 27,291 5.6

I taly 25,970 26,461 (1.9)

Other 237,673 230,244 3.2

TOTAL 886,748 833,752 6.4

03

Largest Crude Steel ProducersIISI - 2001

* OUTPUT OF GERDAU BASED ON 100% OF

AÇOMINAS + CO-STEEL + SOUTH AMERICA

2001 OUTPUT

Gerdau is the largest long steel producer

in the Americas

Source: IISI e Gerdau

Million tons

8 Riva 15.09 NKK 14.810 Kawasaki 13.311 USX 12.812 Sumitomo 11.713 Nucor 11.214 SAIL 10.815 GERDAU * 10.5

Million tons

04

1 Arcelor 43.1

2 Posco 27.8

3 Nippon Steel 26.2

4 Ispat 19.2

5 Shanghai 19.1

6 Corus 18.1

7 Thyssen Krupp 16.2

Brazilian OutputCRUDE STEEL 2002

Source: IBS

1,000 tons

1 Usiminas + Cosipa 8,447

2 Belgo + CST + Acesita (Arcelor) 8,439

3 Gerdau + Açominas 5,999

4 CSN 5,107

5 Villares 700

6 Other 912

TOTAL 2002 29,604

05

Gerdau S.A.

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.

15th largest world steel producer according to the IISI ranking.

Largest long steel producer in the Americas.

Gerdau S.A. is listed on the Brazilian Stock Exchanges, 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 - Rolling mill in Argentina and Gallatin - flat steel in the USA).

72 sales points in Brazil (Comercial Gerdau).

17 downstream operations and special sections (4 in Brazil e 13 in North America).

25 fabrication shops (9 in Brazil and 16 in North America).

4 service centers for flat steel in Brazil (Comercial Gerdau).

Highlights

07

Met. Gerdau S.A.

Gerdau S.A.

Seiva Gerdau Internacional Açominas

Sipar

Laisa

Aza

50%

79%100%96%

67%

38%

100%

100%

Courtice

MRM

AmeriSteel

Gallatin

Gerdau Ameristeel Corp.

100%

100%

100%

50%

Capital Structure

08

Barão de Cocais

BRAZIL 7.2 MILLION TONS OF CRUDE STEEL PER YEAR 4.7 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

Cambridge, ON (Courtice)

Jacksonville, FL

Cartersville, GA

Charlotte, NC

Knoxville, TNJackson, TN

Perth Amboy, NJSayreville, NJ

Whitby, ON

HOGallatin County, KY

MRM Special Sections

Whitby, ON

Gerdau Ameristeel

Geographical Distribution

Gerdau S.A.

Açominas

Cearense

Açonorte

Usiba

Cosigua Açominas

Guaíra

Piratini

Riograndense

Divinópolis

09

Billets, rebars, merchant bars, profiles,

wire-rod, drawn products, nails, specialty

steel.

Billets, slabs, blooms, rebars,merchant bars, profiles and structurals.

Gerdau S.A. 4,174 3,971

Açominas 3,000 740

South America 430 609

North America 6,565 6,186

TOTAL 14,169 11,506

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 & Products2002

1,000 tons

10

Output Evolution

Objectives

Strategies

Evolution

Main Events

Gerdau Ameristeel Corp.

Challenges and Forecasts

Growth Average Rate

1980 - 2002

CRUDE STEEL 10.4% year

ROLLED PRODUCTS 9.6% year

AzaChile1992

Part. Sipar

Argentina1998

MRMCanada1995

Part. Açominas

1997AmeriSteel

USA1999

CrudeSteel

Rolled Products

CearenseGuaíra1982

LaisaUruguay

1981

Hime1985

Barão de Cocais1988

CourticeCanada1989

Usiba1989

Piratini1992

Pains1994

Sipsa Argentina

1997

2002*

Açominas(control)

2002

Co-Steel2002

1980 1984 199619921988 2000

* 100% of Co-Steel

11

Business Breakdown2002

CRUDE STEEL OUTPUT

BRAZIL 64%NORTH AMERICA 33%SOUTH AMERICA 3%

100%

ROLLED PRODUCTS OUTPUT

BRAZIL 46%NORTH AMERICA 49%SOUTH AMERICA 5%

100%

NET REVENUE

BRAZIL 57%NORTH AMERICA 38%SOUTH AMERICA 5%

100%

EBITDA

BRAZIL 79%NORTH AMERICA 16%SOUTH AMERICA 5%

100%

NET INCOME

BRAZIL 83%NORTH AMERICA 13%SOUTH AMERICA 4%

100% 12

Results 2002

BRAZILNORTH

AMERICASOUTH

AMERICACONSOLIDATEDUS$ million

13

Net Sales

Ebitda

Net Income

Gross Margin

Ebitda Margin

Net Margin

1,485.3 994.3 113.3

474.0 98.3 31.1

192.3 29.7 9.5

40.1% 11.1% 31.3%

31.9% 9.9% 27.5%

12.9% 3.0% 8.4%

2,593.0

603.4

231.5

28.6%

23.3%

8.9%

Results - North AmericaCURRENT BASIS

Net Sales

Ebitda

Net Income

Ebitda Margin

Net Margin

US$

1Q02 2Q02 3Q02 4Q02 TOTAL

217 248 227 302 994

26 32 23 17 98

6 10 10 4 30

12.0% 12.9% 10.1% 5.6% 9.9%

2.8% 4.0% 4.4% 1.3% 3.0%

2.3236 2.8444 3.8949 3.5333

14

Gerdau Ameristeel Corp.Corporate Law X Pro forma figures

Gerdau S.A.Consolidated figuresOct 23 – Dec 31, 2002

Gerdau Ameristeel Pro forma figuresOct 1 – Dec 31, 2002

Net Sales: US$ 302 million Net Sales: US$ 391 million22 days more in October

Net Income: US$ 3,8 million Net Income: US$ 8,4 millionGerdau Consolidated 3,8

Adjustments 4,6

EBITDA: US$ 17 million EBITDA: US$ 39,6 millionGerdau Consolidated 17,0

Adjustments 4,6

Non-recurring pretax cash gains 6,1

Equity pick up over Dofasco JV 4,5

Depreciation 7,4 15

IndebtednessGERDAU S.A. - CONSOLIDATED

TOTAL DEBT 100%Foreign currency 35%Dometic currency 22%Abroad 43%

EXPOSUREForeign currency debt 718.1

Swap operations 580.0 Cash & equiv. in US$ 263.6 TOTAL HEDGE 843.6

HEDGE / EXPOSURE 1,2X

TOTAL DEBT

SHORT TERMDomestic currencyForeign currencyCompanies abroad

LONG TERMDomestic currencyForeign currencyCompanies abroad

CASH & EQUIVALENTSDomestic currencyForeign currencyCompanies abroad

NET DEBT

Partic. Dec.02

100% 2,028.7

52% 1,049.4 136.1 464.0 449.4

48% 979.2 310.2 254.1 414.9

- 404.9 141.3

- 263.6

- 1,623.7

Sep.02

1,824.8

1,019.2 27.8

436.4 555.0

805.6 289.7 235.2 280.7

503.9 162.2

- 341.7

1,320.8

COST OF DEBT

Brazil - in R$ 4.5%Brazil - in US$ + FX rate 6.8%Abroad 5.4%

US$ million

16

Outlook 2003

Economic growth in Brazil

U.S. economy slowly recovering from 2001 recession

Steel imports declining

Slow recovery in Argentina

Positive outlook for the Chilean operations

New federal administration in Brazil

Cost of inputs17

Capital MarketsSTOCK PERFORMANCE

600%

400%

200%

0%

-200%

+42%-18%

-14%

+45%-26%

-36%

+573%

+1%+11%

1 YEAR 3 YEARS 5 YEARS

GERDAU DOW JONES IBOVESPA

Source: Economática Date: 01/30/2003

Appreciation Chart

18

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