1. 1 Gerdau S.A. March 2006 UBS Brazil 2006 – Seventh Annual CEO Conference

2. 2 Agenda Steel Sector Gerdau Group Operating and Financial Highlights Capital Markets

3. 3 World Steel – Supply and Demand Source: IISI / World Steel Dynamics F=Forecast Finished Steel 19851990199520002005F2010F 632 1,000 1,153 ProductionApparent Consumption 690 698 830 1,117 942 772 641655 603 + 15.3% over 2005 + 18.6% over 2005 According to a WSD forecast for 2010, 97% of the world’s production will be consumed. In million tons

4. 4 Crude Steel – Output 2004 Arcelor (LUX) 2 Mittal Steel (NET) 1 Nippon Steel (JAP) 3 JFE Steel (JAP) 4 Posco (KOR) 5 Shangai Baosteel (CHI) 6 US Steel (USA) 7 Corus Group (UK) 8 ThyssenKrupp (GER) 10 Riva Group (ITA) 11 Nucor (USA) 9 Gerdau Group (BRA) 12 Sumitomo (JAP) 13 46.9 58.9 32.4 31.6 30.2 21.4 20.8 19.0 17.9 17.6 16.7 13.4 13.0 Gerdau should have an installed capacity of approximately 21 million tons of crude steel per year after the investment program in Brazil is completed in 2007. Source: IISI * * Includes ISG acquired by Mittal Steel in 2004. Among the Leaders In million tons

5. 5 The North American crude steel output for 2005 was 127 million metric tons, a decrease of 5.3% compared to the previous year. In the USA, crude steel output reached 93.3 million metric tons in 2005 from 99.7 million metric tons in 2004 (- 6.4%). In 2005, the crude steel output reached 31.6 million metric tons, 3.9% less than in the previous year. Domestic sales of long steel products (including blooms and billets) in 2005 reached 6.3 million metric tons, a decrease of 10.7% compared to 2004. Exports of long steel products (including ingots, blooms and billets) totaled 4,3 million metric tons in 2005 (+ 25.6% YoY). In 2005, the long steel production decreased 4.8% compared to 2004, retaking the levels of 2003. Source: IBS and IISI World The world’s steel output reached 1.1 billion metric tons of crude steel in 2005, an increase of 5.9% compared to 2004. Crude steel production in China reached 349 million metric tons (31.5% of the world’s steel output), an increase of 24.6% compared to 2004. Brazil North America Steel Sector – 2005 South America The South American crude steel output for 2005 was down 1.2% at 45.3 million metric tons. Brazil is the largest producer, with 69.8% of the total output, followed by Argentina, with 11.9% of the total output in the region.

6. 6 Crude Steel Production – 2005 China USA Japan Russia South Korea Germany Ukraine Brazil India Italy Source: IISI Brazil and the Global Steel Industry In million tons Total World Production: 1,108 million tons China accounted for 31.5% of the global steel output Brazil accounted for 2.8% of the global steel output

7. 7 Agenda Steel Sector Gerdau Group Operating and Financial Highlights Capital Markets

8. 8 VISION MISSION TO BE A WORLD-CLASS INTERNATIONAL STEEL COMPANY Gerdau is an organization focused on the steel business with a mission to satisfy customers` needs and add value to shareholders, committed to the fulfillment of people and to the sustainable development of society Philosophy

9. 9 A low cost international steel company with operations in Brazil, Uruguay, Canada, Chile, Argentina, Colombia, Spain and the United States Substantial international profile – foreign exchange generation through subsidiaries abroad and export sales amount approximately 67% of consolidated revenues in 2005 Ranked 12 th globally by steel output in 2004 with an output of 13.7MM tons (including strategic shareholdings) 2 nd largest long steel producer in North America and largest long steel producer in the Americas Focused on the production of long steel products Gerdau operates 30 mills incorporating both integrated and mini mills with the latest technologies Relevant market share in every country with operations and diversified product range, with high value-added products Strong low cost strategy as a result of diversified production processes and multiple raw material sourcing Sound balance sheet (Gross Debt-to-EBITDA at approximately 1.6x in 2005) and strong cash generation Shares of Gerdau S.A. are currently traded at the São Paulo, New York and Madrid stock exchanges Shares of Metalúrgica Gerdau S.A. are traded at the São Paulo stock exchange Gerdau Ameristeel’s shares are traded at the New York and Toronto stock exchanges Investment Considerations

10. 10 THROUGH THE 40’s THE 60’s THE 50’s First steel mill acquisition – Siderúrgica Riograndense (1948) Expansion of Siderúrgica Riograndense Construction of second Riograndense’s mill Market share increase by the: - Diversification and verticalization of product line - Structuring of distribution network (today more than 75 sales points) - Acquisition of mill in Pernambuco 100+ Years in Business Acquisition of three mills (Rio de Janeiro, Minas Gerais and Bahia) Construction of two new plants (Paraná and Ceará) Operations abroad begin (Uruguay and Canada) THE 80’s THE 90’s Diversification into specialty steel – acquisition of Piratini Expansion abroad – acquisition of mills in Chile, Canada, Argentina and the USA Acquisition of second mill in Minas Gerais and rolling mill in São Paulo Shareholdings restructuring Acquisition of stake in Açominas 1901 1901 – First operation: nail factory Capacity expansion with acquisition of two mills (Alagoas and Paraná); construction of largest Gerdau mill (Rio de Janeiro) Diversification into reforestation THE 70’s THE NEW MILLENNIUM More acquisitions in the US Downstream expansion in North America Entering the European market Presence in São Paulo with a brand new steel mill

11. 11 Laisa - 1980 (Uruguay) Piratini (Brazil) AZA (Chile) Ameristeel (USA) AZA New Plant (Chile) Additional stake in Açominas (Brazil) Potter Form Gate City & RJ North Star (USA) SACK (Chile) Cambridge (Canada) Usiba (Brazil) Manitoba (Canada) Controll of Açominas (Brazil) Cartersville Drawing Co-Steel (USA) 1,757 3,072 3,934 4,595 7,696 11,076 16,372 Abroad – Crude Steel Installed Capacity TOTAL INVESTED (1981-2005): Brazil = US$ 4.0 billion + Debt North America = US$ 1.4 billion + Debt South America = US$ 468 million + Debt In thousand tons Solid Track Record Brazil – Crude Steel Installed Capacity Diaco (Col.) 16,475 Barão de Cocais (Brazil) 2,611 Stake in Açominas (Brazil) 4,568 18,658 Araçariguama (Brazil) Sidenor (Spain)

12. 12 Brazil 8.6 million tons of crude steel 5.3 million tons of rolled steel products Abroad 10.1 million tons of crude steel 9.6 million tons of rolled steel products Total Capacity (Includes Strategic Shareholdings) 18.7 million tons of crude steel 14.9 million tons of rolled steel products 11 mills 11 fabrication shops 6 downstream operations and special sections 75 sales points and flat steel service centers 19 mills 37 fabrication shops 15 downstream operations and special sections An International Company Steel mills 12 Strategic Shareholding

13. 13 BRAZIL Gerdau 48% Belgo 35% Barra Mansa 5% Other 7% NORTH AMERICA Nucor 27% Gerdau Ameristeel 19% Commercial Metals 7% Imports 18% Other 29% COUNTRY MARKET SHAREMAIN COMPETITORS Solid Market Share in Long Steel Aços Villares 5% CHILE URUGUAY ARGENTINA 53% 20% 90% CAP + Imports Acindar + Bragado + Zapla Imports COLOMBIA37%Acerias Paz Del Rio SPAIN36%*GSB * Specialty steel only

14. 14 Value Builder Company ATKearney Value Growth Revenue Growth Industry average Industry average Stelco Haynes AK Steel Smorgon Carpenter Salzgitter Onesteel 1) Boehler-Uddeholm INI Steel Ipsco Allegheny Rautaruukki Usinas Ispat Kennametal SSAB Voest-Alpine Harsco Nisshin Steel Eregli Demir Wuhan Steel 1) Kobe Dofasco Iscor Tata RIVA 1) SAIL Outokumpu Corus Gerdau CSN US Steel Acerinox Nucor Thyssenkrupp China Steel Arcelor Baoshan 1) Posco JFE Nippon Steel -10% -5% 0% 5% 10% 15% 20% 25% 30% -35%-25%-15%-5%5%15%25%35%45% Note:1) RIVA 98 02, Wuhan Steel & Onesteel 00 03, Baoshan 01 03 Source:ThyssenKrupp (segment), Kobe (segment), RIVA, Haynes: EBIT Growth Growth portfolio (CAGR 1999-2003) benchmarked against industry average

15. 15 Agenda Steel Sector Gerdau Group Operating and Financial Highlights Capital Markets

16. 16 Shipments Brazil – Domestic Market (25% in 2005) Brazil – Exports (20% in 2005) South America (10% in 2005) North America (45% in 2005) In thousand tons 7,302 7,411 9,109 12,560 12,144 13,550 Billets, blooms & slabs Merchant bars Rebars Fabricated steel Heavy structural shapes Wire-rod Wires Nails

17. 17 Strong Export Business Asia 44% Central America 13% South America 19% North America 5% Africa 8% EXPORT SHIPMENTS BY REGION Europe 11% 2005 NET REVENUE BREAKDOWN BY REGION Brazil (Domestic Market) 34% Exports (from Brazil) 13% North America 47% South America 6%

18. 18 Margin Evolution BrazilNorth AmericaSouth America Gross Margin EBITDA Margin

19. 19 Costs and Prices Net Revenue and Cost of Sales per ton Brazil North America South America Cost of Sales Net Revenue Cost of Sales In US Dollars/ton Net Revenue 486 475 467 469 518 646 696 709 717 274 294 295 284 321 355 382 404 426 420 682 673 423 1Q032Q033Q033Q044Q031Q042Q044Q041Q052Q05 3Q05 403 521 605 557 681 663 605 779 477 314 273 348 397 333 400 396 463 549 1Q032Q033Q033Q044Q031Q042Q044Q041Q05 3Q05 484 686 2Q05 694 484 388 477 486 624 822 646 710 756 501 486 361 459 464 564 616 544 549 638 1Q032Q033Q033Q044Q031Q042Q04 4Q04 1Q052Q05 580 677 3Q05 609 511 4Q05 408 626 354 518 4Q05 635 528

20. 20 Consolidated Financials In US$ millions 2003 2004 Income Statement Net revenue Gross profit Operating income Net income EBITDA 2005 4,627 1,139 397 434 929 7,383 2,353 1,678 1,219 2,092 9,077 2,446 1,727 1,386 2,098 Balance Sheet Current assets Non-current assets Fixed assets Total Current liabilities Non-current liabilities Shareholders’ equity Total 1,846 364 2,721 4,931 1,503 1,747 1,681 4,931 3,600 390 3,041 7,031 1,977 2,186 2,868 7,031 5,182 377 3,788 9,347 1,790 3,225 4,332 9,347 Ratios Gross margin EBITDA margin Total debt / EBITDA Net debt / EBITDA EBITDA/Net Financial Expenses 24.6% 20.1% 2.3x 2.0x 5.0x 31.9% 28.3% 1.1x 0.8x 19.8x 26.9% 23.1% 1.6x 0.4x 27.8x

21. 21 Liquidity Management Gerdau maintains a policy of strong liquidity to ensure that resources are available in to face opportunities or downturns in market conditions Gerdau’s liquidity policy Cash and liquid investments of at least 25% of total debt Gerdau export sales not more than 50% leveraged through export credit and receivable securitization Liquid funds are held in USD and Brazilian Reais both in offshore and onshore accounts

22. 22 Indebtedness Dec. 05 In US$ million In US$ COST OF DEBT IN DEC. 05 (per annum) DEBT AVERAGE LIFE 9.1 years Brazil – Domestic Currency Brazil – Foreign Currency Companies Abroad 32.5%* 5.9% 7.3% DEBT STRUCTURE Domestic Currency 23% Foreign Currency 46% Companies Abroad 31% *Includes 11.82% of 2005 FX

23. 23 Consolidated Debt Amortization BNDES: 106 Debentures GNA: 97 Imports: 108 BNDES: 76 Imports: 87 Pre-Export: 113 Bonds: 400 Perpetual:600 Debentures: 336 Euro Commercial Paper: 200 In US$ millions – December/05 1H06 2H06 2007 2008 2009 2010AFTER 2010 242 326 409 364 231 162 1,535 BNDES: 65 Pre-Export: 55 BNDES: 48

24. 24 + 14% Capital Expenditures INVESTMENTS - 2005 2006 2008 10,073 8,585 10,675 10,685 18,658 21,360 + 24% + 6% EVOLUTION OF INSTALLED CAPACITY Investment Program 2006 – 2008: US$ 3.8 billion 2006 2008 9,609 5,260 6,585 14,869 16,908 + 25% + 7% + 14% BrazilAbroad BrazilAbroad Crude Steel Rolled Steel BRAZIL568.8 ABROAD289.2 North America135.9 South America153.3 TOTAL858.0 In thousand tons In US$ millions 10,323

25. 25 Agenda Steel Sector Gerdau Group Operating and Financial Highlights Capital Markets

26. 26 Listed Companies GERDAU S.A. GGBR4 = R$ 51.85 Market Cap = US$ 10.9 billion METALÚRGICA GERDAU S.A. GOAU4 = R$ 61.50 Market Cap = US$ 3.6 billion BOVESPA São Paulo GERDAU S.A. GGB = US$ 24.33 GERDAU AMERISTEEL CORP. GNA = US$ 9.22 NYSE New York GERDAU AMERISTEEL CORP. GNA.TO = Cdn$ 10.63 Market Cap = Cdn$ 3.3 billion TSE Toronto GERDAU S.A. XGGB = € 19.95 LATIBEX Madrid Gerdau’s shares traded a daily volume of US$ 34.3 million during 2005 Stock prices in 03.17.2006

27. 27 30% Stock bonus + 70% Split (GOAU) 100% Stock bonus (GGBR) 0 5 10 15 300 600 1,200 900 Jan 04 Jul 05 Mar 04 May 05 May 04 Jul 04 Sep 04 Nov 04 Sep 05 Jan 05 Mar 05 GOAU4: 441 trades US$ 7.1 MM GGBR4: 1,020 trades US$ 17.6 MM Nov 05 1,500 20 25 Monthly average # of trades Monthly average volume Stock Liquidity Source: Economática In US$ million (Volume) In number of trades Monthly average # of trades Monthly average volume METALÚRGICA GERDAU S.A. (GOAU4) GERDAU S.A. (GGBR4) GGBR4: 595 trades US$ 8.3 MM GOAU4: 162 trades US$ 2.3 MM METALÚRGICA GERDAU S.A. AND GERDAU S.A. PREFERED SHARES ARE PART OF BOVESPA INDEX 50% Stock bonus (GGBR e GOAU) Jan 06

28. 28 Dividends Policy 30% of the adjusted net income (Pay-out) Dividend payments are being made on a quarterly basis In US$ million DIVIDEND YIELD 1999200020012002200320042005 GOAU46.0%7.9%17.0%11.3%6.2%7.8%6.1% GGBR43.6%6.1%6.8% 3.9%6.1%4.6% DIVIDENDS DISTRIBUTION* Metalúrgica Gerdau S.A. (GOAU4) Gerdau S.A. (GGBR4) * Dividends related to each period, but not necessarily paid in the same period.

29. 29 Outlook Brazil Greater economic growth in 2006 – 3 to 3.5% Increase in volumes shipped in the domestic market - 5 to 6% Strengthening of the civil construction sector Price stability in Brazilian currency Inventories adjusted Increase in government spending North America Consistent economic growth More investments in infrastructure (Highway Bill) Stability in production costs Stability in metal spread South America Consolidated economic growth Strengthening of the civil construction sector Demand is strong Europe Consolidation of stake in Sidenor as of the 1Q06

30. 30 Safe Harbor Statement This presentation 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.

31. 31 www.gerdau.com.br inform@gerdau.com.br +55 51 3323 2703 Gerdau S.A.