Twelfth Annual Latin America Conference New York, March , 2004

Steel Sector Gerdau S.A. Consolidated Stock Market

World Production Crude Steel In million tons Sources: IISI In 2003, the world produced million tons of steel. Brazil contributed with 3.3% of this tonnage. 03

Largest Producers Crude Steel 2002 Source: IISI In million tons Production Company (LUX) (ENG) (JAP) (KOR) (CHI) (ENG) (GER) (JAP) Company Production (ITA) (USA) (JAP) (USA) (JAP) (BRA) (ENG) 04

North America REBAR PRICESMERCHANT BARS PRICES PRICE INCREASE (LTM): +33% PRICE INCREASE (LTM): +34% End-use demand is improving for all long steel products, although cost pressures remain the dominant influence on prices everywhere… December shipments were up by 10% YoY. While one month of positive data is not enough to confirm that an upward trend in demand has set in, December´s growth marks a significant turnaround after one year of uninterrupted contraction. Source: MEPS/Metal Bulletin STEEL SCRAP PRICES PRICE INCREASE (LTM): +52% 05

Overview Brazilian Steel Sector Belgo (Arcelor) – 33.8% 2,654 thousand tons Gerdau Açominas – 49.6% 3,894 thousand tons Barra Mansa - 5% 385 thousand tons Aços Villares - 6% 456 thousand tons V&M do Brasil - 6% 466 thousand tons LONG STEEL PRODUCERS IN BRAZIL Source: IBS CRUDE STEEL PRODUCERS IN BRAZIL In thousand tons Usiminas/Cosipa Gerdau Açominas Belgo/CST/Acesita (Arcelor) CSN Aços Villares V&M do Brasil Barra Mansa 8,624 6,976 8,449 5, MWL Brasil36 06 TOTAL 2003: 7,855 thousand tons TOTAL 2003: 31,150 thousand tons

Exports of Long Steel Products Brazilian Steel Sector - 9M2003 Source: IBS Exports Domestic Sales Exports of long steel products reached 2.2 million tons in 2003, an increase of 78% YoY. In million tons Domestic Sales Sep.2003/ % Exports Sep.2003/ % Monthly Average thousand tons Monthly Average thousand tons Monthly Average thousand tons Monthly Average 84.4 thousand tons Monthly Average 99.2 thousand tons Monthly Average thousand tons 07

Competitiveness Brazilian Steel Sector Source: IBS EBITDA MARGIN BrazilAsia* * Does not include Japan JapanEUNorth America Others (World) In % Despite increases in the prices of main inputs, Brazil has the highest operating margin in the world. The mills operate with up-to-date technology due to a permanent investment program. 35% 08

Investments Brazilian Steel Sector Source: IBS INVESTMENT SCHEDULE In US$ million In million tons Apparent Consumption Installed Capacity Crude Steel Production INSTALLED CAPACITY X PRODUCTION X APPARENT CONSUMPTION 09

Steel Sector Gerdau S.A. Consolidated Stock Market

Main Products BILLETS MERCHANTS AND STRUCTURALS REBARS FABRICATED STEEL STRUCTURAL SHAPES WIRE-ROD WIRES NAILS 11

Gerdau Açominas7,3744,811 South America North6,5676,187 America TOTAL14,451 11,632 Billets, merchant bars, rebars, wire rod, drawn products, welded meshes, nails, downstream products and fabricated steel products. Installed Capacity Billets, slabs, blooms, merchant bars, rebars, wire rod, drawn products, welded wire meshes, structurals, nails, downstream products, fabricated steel products and specialty steel. Billets, merchant bars, rebars and wire rod. CRUDE STEEL ROLLED PRODUCTS 12 In thousand tons

Output Evolution AVERAGE GROWTH RATE Crude Steel 10.2% per year Rolled Products 9.2% per year 14 th largest world steel producer according to the IISI. Largest long steel producer in the Americas. Crude SteelRolled Products 12.3 million 9.0 million Aza Chile 1992 MRM Canada 1995 Part. Açominas 1997 AmeriSteel USA 1999 Cearense Guaíra 1982 Laisa Uruguay 1981 Hime 1985 Barão de Cocais 1988 Courtice Canada 1989 Usiba 1989 Piratini 1992 Pains 1994 Sipsa Argentina 1997 Açominas (control) 2002 Co-Steel Part. Sipar Argentina

Geographical Distribution (2) Rolling mill, 38% stake JV (1) Flat steel mill, 50% stake JV SOUTH AMERICA 2 mills and 1 strategic shareholding (Sipar) 3 fabrication shops BRAZIL 10 mills 11 fabrication shops 6 downstream operations and special sections 73 sales points (Comercial Gerdau). 5 service centers for flat steel (Comercial Gerdau). NORTH AMERICA 10 mills and 1 strategic shareholding (Gallatin Steel) 20 fabrication shops 12 downstream operations and special sections Gerdau AmeriSteel Corp. Sipar (2) Laisa Gerdau Açominas S.A. AZA Gallatin Steel (1) 14

Competitive Edge Focus on long steel products manufacturing and distribution Market mill approach Up-to-date technology Competitive production costs Diversified production processes Multiple raw materials sourcing Vertical and horizontal integration Relevant market share in every country in which the Company has operations Financial soundness and access to international capital markets Confirmed experience in turning around distressed operations 15

Results In R$ million 16

Main Variations COST OF GOODS SOLD NET SALES In R$ thousand 9,162 13,367 In R$ thousand 6,539 10,077 The great performance of exports in the period as well as the incorporation of the new North American units in October 2002 and the recovery of full productive capacity of Gerdau Açominas allowed for the 45.9% increase in net sales revenues. The increase of 54.1% YoY was due to the price increases in the main inputs of Gerdau such as scrap and pig iron in Brazil, and scrap, energy and natural gas in North America. 17

1,002 1,212 In R$ thousand SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Main Variations (80) 141 In R$ thousand PROVISION FOR INCOME TAX AND SOCIAL CONTRIBUTION As a consequence of the integration of the operating assets of Gerdau S.A. into Gerdau Açominas, the latter was able to create a positive income tax and social contribution provision, in the year, of R$ million based on the recognition of R$ million in tax credits resulting from fiscal losses. Operating expenses (SG&A) increased by 21% resulting mainly from the greater costs involved in exporting (port services and freight) and the increase in Gerdau Ameristeel's expenses. 18

Results by Region

Sales Track Record In 1,000 tons 1Q032Q033Q ,271 1,284 1, ,8892,976 3,156 TOTAL SHIPMENTS Brazil (domestic sales) Brazil (exports) North America South America 4Q , ,123 TOTAL SHIPMENTS IN 2003: 12,144 thousand tons (+32.7%) 20

Exports DESTINATION OF EXPORTS 2002DESTINATION OF EXPORTS 2003 Asia 52% Africa 3% South America 6% North America 14% Europe 11% Central America 14% Asia 51% Africa 11% South America 6% North America 9% Europe 12% Central America 11% EXPORTS IN 2003: 3.2 MILLION TONS (+69.9%) Export revenues US$ (+125%) Strong demand in the international markets Very attractive prices Average price increase of 30.9% 21

ROLLED PRODUCTS In 1,000 tons 1,012 1, , , ,299 2,246 2,135 1,018 1, ,366 Output CRUDE STEEL In 1,000 tons 3,123 3,0852,968 1,790 1, ,679 1, ,688 1, ,166 1,818 1, Gerdau S.A. North America South America 22 TOTAL 2003: 9,045 thousand tons (+30.5%) TOTAL 2003: 12,343 thousand tons (+30.7%)

23 Indebtedness SENIOR SECURED CREDIT FACILITY US$ 350/SENIOR UNSECURED NOTES US$ 405 (June) Total volume:US$ 755 mm Bond portion swapped to floating: US$ 200 mm Average cost:7.7% Average term:6.6 years SECURED EXPORT NOTES PROGRAM (September) Total volume:US$ 400 mm 1 st tranche:US$ 105 mm Cost:7.37% p.y. Term:7 years Grace period: 2 years EURO-COMMERCIAL PAPER PROGRAM (October) Total volume:US$ 300 mm 1 st tranche:US$ 100 mm Cost:4.125% p.y. Term:1 year SEP 2003DEC 2003 GROSS DEBT6, ,943.7 Short Term2, ,153.2 Local Currency Foreign Currency1, ,576.0 Companies Abroad Long Term 3, ,790.5 Local Currency Foreign Currency1, ,047.2 Companies Abroad2, ,980.4 CASH & EQUIV.1, ,497.6 Local Currency Companies Abroad NET DEBT5, ,446.1 In R$ million

Investments 2003 Gerdau Açominas US$ 230 mm South America US$ 7 mm North America US$ 59 mm NEW WIRE-ROD MILL Installed capacity: 550 thousand tons/year Total investment: US$ 66 mm TOTAL IN 2003: US$ 295 MM FORECAST FOR 2004: US$ 300 MM 24

Operational Integration Combination of strengths of both companies: greater competitiveness Project developed in partnership between Gerdau and CEA (partner-contributor) Headquarters in Ouro Branco - MG Gerdau Açominas S.A.Gerdau S.A.Aço Minas Gerais S.A. Açominas NEW CORPORATE GOVERNANCE Met. Gerdau S.A. Gerdau Açominas S.A. BrazilNorth America South America Gerdau Ameristeel Gerdau AZA Gerdau Laisa Sipar Gerdau S.A. 25

Stronger demand in Brazil (domestic market); Lower interest rates in Brazil expected for the end of the year; Economic stability in Brazil and uncertainty in the political scenario; International prices trend: stable to upwards; North American operations pursuing better results; US economy recovering; South American operations in very good shape and improving. Outlook 26

Steel Sector Gerdau S.A. Consolidated Stock Market

Shareholders Structure Metalúrgica Gerdau S.A. Other Gerdau Companies 25% Brazilian Inst. Investors 24% Foreign Inst. Investors 15% Other Shareholders 36% Gerdau S.A. Met. Gerdau and other Gerdau companies 52% Brazilian Inst. Investors 10% Foreign Inst. Investors 22% Other Shareholders 16% Gerdau Açominas S.A. Gerdau Group 92% CEA Clube / Fund. Aços 4% Other Shareholders 4% 28

Adjusted Net IncomeDividends paid Payout of 30% of the Adjusted Net Income. Since March 2003, dividend payments are being made on a quarterly basis. Dividend Policy METALÚRGICA GERDAU S.A. In US$ million GERDAU S.A. In US$ million In 2001, Met. Gerdau paid a higher amount due to a one-time supplementary dividend payment. 33.0%32.6%52.5%34.2% PAY OUT YIELD 6.0%7.9%17.0%12.4 % 32.2%32.8%35.7%34.7%32.5% 3.6%6.1%6.8%7.1 %3.9% 31.5% 6.2 % 29

Stock Price Performance Period: to Source: Economática/Bloomberg USA (New York Stock Exchange) Canada (Toronto Stock Exchange) > GGBR4: + 152% GOAU4 : + 161% 2004 > GGBR4: + 8% GOAU4 : + 16% 2003 > GGB: + 195% 2004 > GGB: + 11% 2003 > GNA: +149% 2004 > GNA: - 3% Brazil (São Paulo Stock Exchange)

Appreciation Chart In US$ Source: Economática Base: Dividend-adjusted USA (NYSE) GGB +221% GGB +223% GGB na DOW +36% DOW +0.3% DOW 9% BRAZIL (Bovespa) GGBR4 +242% GGBR4 +1,047% GGBR4 +293% GOAU4 +295% GOAU +1,322% GOAU4 +349% IBOV +175% IBOV +67% IBOV -3% Gerdau S.A. Metalúrgica Gerdau S.A. Ibovespa Gerdau - ADR Dow Jones 31

Comparative Chart Source: Economática and company websites Belgo figures are referred to Sep results (annualized) EV = Market Cap. + Net Debt 32