GERDAU December 2005 Deutsche Bank - Investor Trip to Brazil

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 2

A low cost international steel company with operations in Brazil, Uruguay, Canada, Chile, Argentina, Colombia and the United States Substantial international profile – foreign exchange generation through divisions abroad and export sales amount approximately 61% of consolidated revenues in 9M05 Ranked 12 th globally by steel output in 2004 with an output of 13.4m tons (includes one joint venture) 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 28 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 1.4x in 9M05) and strong cash generation Shares of Gerdau S.A. are currently traded at the São Paulo, New York and Madrid exchanges Investment Considerations 3

Shareholding Structure Gerdau Chile Gerdau Laisa S.A. Sipar Aceros S.A. 100% 74.4% 100% 44.8% 97.1% Metalúrgica Gerdau S.A. 77.2% 66.5% 50% Gallatin Steel Gerdau Açominas S.A. Gerdau Aços Longos S.A. Gerdau Aços Especiais S.A. 89.3% Gerdau S.A. 89.3% Gerdau Ameristeel Corporation 89.3% Gerdau Comercial de Aços S.A. 22.8% Banco Gerdau S.A. 99% Gerdau Colômbia Gerdau AZA S.A. 100% 57.1% Gerdau América do Sul Participações S.A. Gerdau Internacional Empreend. Ltda. Seiva S.A. Florestas e Indústrias 4

THROUGHOUT THE 40’s THE 60’s THE 50’s 1901 – First operation: nail factory First steel mill acquisition – Siderúrgica Riograndense (1948) Expansion of Siderúrgica Riograndense Construction of second mill at Riograndense Market share increase by: - Diversification and verticalization of product line - Structuring of distribution network (today more than 77 sales points) - Acquisition of mill in Pernambuco 100+ Years in Business Capacity expansion with acquisition of two mills (Alagoas and Paraná) and construction of largest mill (Rio de Janeiro) Diversification in reforestation THE 70’s 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 5

Cartersville Mill Orrvile Drawing (USA) Laisa (Uruguay) AZA (Chile) SIPAR (Arg.) Ameristeel (USA) AZA New Plant (Chile) Potter Form Gate City & RJ North Star (USA) SACK (Chile) DIACO and SIDELPA (Colombia) Cambridge (Canada) Manitoba (Canada) SIPSA (Argentina) Cartersville Drawing Co-Steel (USA) 1,757 3,072 3,934 4,595 7,696 14,450 16,830 Abroad – Crude Steel Installed Capacity TOTAL INVESTED ABROAD ( ): North America = US$ 1.3 billion + Debt South America = US$ 314 million + Debt In thousand tons THE NEW MILLENNIUM Expansion abroad – reverse takeover of Co-Steel and acquisition of North Star Mills Acquisition of stake in Açominas – controller since 2002 Strategic alliance in Colombia Solid Track Record Includes a pending transaction in Colombia Brazil – Crude Steel Installed Capacity 6

Brazil 7.6 million tons of crude steel 4.8 million tons of rolled steel products Abroad 9.2 million tons of crude steel 9.1 million tons of rolled steel products Total Capacity (Includes 1 Joint Venture) 16.8 million tons of crude steel 13.9 million tons of rolled steel products Steel mills Joint venture Rolling mill 10 mills 11 fabrication shops 6 downstream operations and special sections 75 sales points and flat steel service centers 18 mills and 1 rolling mill 38 fabrication shops 15 downstream operations and special sections An International Company 1 joint venture 7

Crude Steel – Output 2004 In million tons 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 (U.K.) 8 ThyssenKrupp (GER) 10 Riva Group (ITA) 11 Nucor (USA) 9 Gerdau Group (BRA) 12 Sumitomo (JAP) 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 Source: IISI Among the Leaders * * Includes ISG acquired by Mittal Steel in

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 9

LONG STEEL PRODUCTS (Brazil) Maintenance of market share Enhancement of current installed capacity New steel mill in São Paulo Continuous improvements SPECIALTY STEEL Growth in the domestic and export markets New mill in Rio de Janeiro New markets/regions AÇOMINAS (Ouro Branco mill) New 1.5 mm ton blast furnace Next phase: +3 mm tons Growth platform for slabs, blooms and billets Export-oriented sales Growth Strategies SOUTH AMERICA Maintenance of leadership in the long steel sector New markets NORTH AMERICA Efficiency and productivity gains (Gaps) Active role in the steel sector consolidation process NEW OPPORTUNITIES Mexico, Asia, South America… Flat Steel Iron ore and pig iron 10

Shipments Brazil – Domestic Market Brazil – Exports South America North America In thousand tons Billets, blooms & slabs Merchant bars Rebars Fabricated steel Heavy structural shapes Wire-rod Wires Nails 7,213 7,394 9,151 12,560 12,144 13, * Annualized data

Strong Export Business Asia 44% Central America 12% South America 21% North America 4% Africa 8% 9M05 SHIPMENTS BY REGION SHIPMENTS BY SEGMENT Asia 34% Europe 11% Africa 8% Central America 15% North America 15% South America 17% Industry 57% Agricultural 2% 2004 Civil Construction 41% Industry 62% Agricultural 1% Civil Construction 37% Europe 11% 12

Costs and Prices Net Sales Revenue and Cost of Sales per ton Brazil North America South America Net Sales Revenue Cost of Sales Net Sales Revenue Cost of Sales 1Q032Q033Q033Q044Q031Q042Q04 4Q04 1Q052Q In US Dollars/ton 3Q Q032Q033Q033Q044Q031Q042Q044Q041Q052Q05 3Q Q032Q033Q033Q044Q031Q042Q04 4Q04 1Q05 3Q Q All data in BR GAAP converted by R$ /US$

Consolidated Financials In US$ millions M04 Income Statement Net revenue Gross profit Operating income Net income EBITDA 9M05 7,383 2,353 1,678 1,219 2,092 5,143 1,666 1, ,492 7,362 1,996 1,424 1,132 1,743 Balance Sheet Current assets Non-current assets Fixed assets Total Current liabilities Non-current liabilities Shareholders’ equity Total 3, ,041 7,031 1,977 2,186 2,868 7,031 2, ,662 5,889 1,654 1,827 2,407 5,888 5, ,794 9,311 1,698 3,267 4,346 9,311 Ratios Gross margin EBITDA margin Total debt / EBITDA Net debt / EBITDA EBITDA/Net Financial Expenses 31.9% 28.3% 1.1x 0.8x 19.8x 32.4% 29.0% 1.2x 0.8x 14.3x 27.1% 23.7% 1.4x 0.5x 23.3x 14

Liquidity Management Gerdau maintains a strong liquidity policy to ensure that ample resources are available in the case of a downturn in market conditions or any deterioration of the sovereign environment 15 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

GROSS DEBT 3,261100% SHORT TERM 57018% Domestic Currency107 3% Foreign Currency151 5% Companies Abroad312 10% LONG TERM 2,691 82% Domestic Currency691 21% Foreign Currency1,328 41% Companies Abroad672 20% CASH & CASH AND EQUIV. 2,111100% Domestic Currency1,363 65% Foreign Currency748 35% NET DEBT 1,150 Sep./05 In US$ millions Consolidated Debt Profile 16 DEBT STRUCTURE Domestic Currency 24% Foreign Currency 46% Companies Abroad 30% COST OF DEBT (per year) In R$ In US$ Brazil Domestic Currency16.5%39.1%* Foreign Currency FX+ 5.8% 5.8% Companies Abroad-7.3% DEBT MATURITY9.1 years * Includes exchange and monetary variation in the last 9 months

Schedule of Amortization In US$ million Q051S After S Comp. Abroad = 211 Comp. Abroad = 136 BNDES = 83 Imports = 108 Comp. Abroad = 396 Debentures = 75 Pre-export = 113 BNDES = 68 Imports = 62 Pre-export = 639 Debentures = 280

Guaranteed Perpetual Senior Notes ISSUERGerdau S.A. GUARANTORSGerdau Açominas S.A., Gerdau Aços Longos S.A., Gerdau Aços Especiais S.A., Gerdau Comercial de Aços S.A. RATINGSMoody’s: Ba1 (stable) / S&P: BB- (stable) / Fitch: BB- (stable) LEAD MANAGERSHSBC / Citigroup ISSUE AMOUNTUS$ 600,000,000 SETTLEMENTSeptember 22, 2005 MATURITYPerpetual OPTIONAL REDEMPTION Callable at Par on any interest payment date on or after September 22, 2010 INTEREST PAYMENTPayable Quarterly on September, December, March & June 22 COUPON8.875% (First Coupon Payment Date: December 22, 2005) LISTINGSingapore Stock Exchange Obs.: 1) The offering orders exceeded US$ 3.5 billion. 2) The geographic distribution of the offering was as follows: 46% Asian, 32% European, 20% U.S. and 2% Brazilian investors. 18

Euro Commercial Paper ISSUERGTL Trade Finance, Inc. GUARANTORGerdau S.A. LEAD MANAGERSantander Investment Limited PROGRAM AMOUNTUS$ 300,000,000 ISSUEThird ISSUE AMOUNTUS$ 200,000,000 SETTLEMENTOctober 12, 2005 MATURITYOctober 11, 2006 INTEREST PAYMENTPayable Quarterly, starting in April 11, 2006 COUPON5.00% Obs.: 1) This is the second issuance on a programme which started with US$ 100 mm in ) Coupons of each issue: 2003 – 4.125% (275 bps above Libor of 1 year) 2004 – 3.125% (67.5 bps above Libor of 1 year) 2005 – 5.000% (45.5 bps above Libor of 1 year) 19

Capital Expenditures INVESTMENTS - 9M ,800 7,580 9,730 11,720 16,380 21, % + 11% + 28% EVOLUTION OF INSTALLED CAPACITY Investment Program 2005 – 2007: US$ 3.2 billion ,240 4,730 8,880 6,610 12,970 15, % + 8% + 19% BraZilAbroad BrazilAbroad Crude SteelRolled Steel BRAZIL410.4 ABROAD248.2 North America114.4 South Amerca133.8 TOTAL658.6 In thousand tons In US$ millions 20

Statements relative to business perspectives are based on current expectations of future events and trends that may affect our business. These estimates 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. Safe Harbor Statement

Gerdau S.A.