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BOLSA DE MADRID LATIBEX

Gerdau. BOLSA DE MADRID LATIBEX. Madrid, Barcelona España November 28-29, 2002. STEEL SECTOR Gerdau S.A. - Consolidated Açominas Gerdau Ameristeel Corporate Governance Capital Markets. WORLD - CRUDE STEEL OUTPUT. In million metric tons. 03. Source: IISI / LAFA / IBS.

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BOLSA DE MADRID LATIBEX

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  1. Gerdau BOLSA DE MADRID LATIBEX Madrid, Barcelona España November 28-29, 2002

  2. STEEL SECTOR Gerdau S.A. - Consolidated Açominas Gerdau Ameristeel Corporate Governance Capital Markets

  3. WORLD - CRUDE STEEL OUTPUT In million metric tons 03 Source: IISI / LAFA / IBS

  4. AMERICAS - CRUDE STEEL OUTPUT In million metric tons 04 Source: IISI / LAFA / IBS

  5. BRAZILIAN OUTPUT 1,000 metric tons • Growth due to: • Conclusion on the refurbishment of the blast furnace at CSN. • Increase in capacity of melt shop at Cosipa. Source: IBS 05

  6. 13,0 4,2 5,3 2,5 3,9 3,3 2,7 -0,1 -3,5 Apparent consumption GDP Elasticity -42,3 BRAZIL MARKET SHARELong products Belgo - 36% GERDAU - 48% Others - 16% APPARENT CONSUMPTION x GDP Elasticity (multiples) Source: IBS / ConjunturaEconômica 06

  7. Steel Sector GERDAU S.A. - CONSOLIDATED Açominas Gerdau Ameristeel Corporate Governance Capital Markets

  8. HIGHLIGHTS • 101 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 by the IISI ranking. • Largest long steel producer of the Americas and the 2nd largest in the North America. • Distribution network with 70 sales points, 5 service centers for flat steel, 25 fabrication shops for civil construction and 17 downstream and specialty facilities. • 10 steel plants in Brazil, 12 abroad, 1 strategic shareholding (Argentina) and 1 joint venture (USA) in flat steel. • Gerdau S.A. is listed on the Brazilian Stock Exchanges and on the NYSE and Gerdau Ameristeel Corp. is listed on the Toronto Stock Exchange. 08

  9. Co-Steel 2002 Part. Açominas 1997 Usiba1989 Piratini1992 Crude steel AmeriSteel USA 1999 Pains1994 Sipsa Argentina1997 Barão de Cocais1988 CearenseGuaíra1982 Rolledproducts Part. Sipar Argentina 1998 MRM Canada 1995 Hime1985 Aza Chile 1992 Courtice Canada 1989 Laisa Uruguay 1981 Açominas (control) 2002 1980 2002 annualized 1984 1988 1992 1996 2000 OUTPUT EVOLUTION CONSOLIDADED 2002 includes full year Co-Steel 09

  10. Met. Gerdau S.A. 51% Gerdau S.A. 96% 100% 79% Seiva Gerdau Internacional Açominas Gerdau Ameristeel Corp. 67% Aza 100% Courtice Gallatin Laisa 100% 50% 100% MRM 100% Sipar 38% AmeriSteel 100% CAPITAL STRUCTURE 10

  11. MRM Courtice Raritan plant AmeriSteel Gerdau S.A. Açominas Aza Laisa Sipar (2) INSTALLED CAPACITY 14,2 million metric tons/year • ABROAD • 7.0 million metric tonsof crude steel • 6.8 million metric tons of rolled products Lasco plant Sayreville plant Gallatin (1) • BRAZIL • 7.2 million metric tons of crude steel • 4.7 million metric tons of rolled products • Flat steel mill, 50% owned JV • (2) Rolling mill, 38% owned JV 11

  12. FINANCIAL STATEMENTS R$ million 12

  13. Ebitda Net Revenue R$ million 682 412 439 297 4Q01 1Q02 2Q02 3Q02 Gross Margin Ebitda Margin 34% 29% 11% 4Q01 1Q02 2Q02 3Q02 GERDAU S.A. CONSOLIDATED R$ million 2,958 1,978 1,659 1,300 4Q01 1Q02 2Q02 3Q02 42% 34% 13% 4Q01 1Q02 2Q02 3Q02 Brazil North America South America 13

  14. HEDGE INDEBTEDNESS R$ million 14

  15. Other - R$ 34 mm Companies abroad R$ 2,162 mm BNDES – R$ 91 mm Bank loan (res. 2770) – R$ 149 mm Import loan (Firce) – R$ 281 mm Pre-export /ACC – R$ 411 mm Açominas (US$) R$ 842 mm Eurobonds R$ 289 mm BNDES R$ 286 mm Açominas (R$) - R$ 223 mm Debentures R$ 534 mm Bank loan (res. 2770) - R$ 186 mm Import loan (Firce) - R$ 172 mm Açominas (US$) - R$ 156 mm Companies abroad R$ 1,093 mm Pre-export - R$ 114 mm Other - R$ 85 mm DEBT BREAKDOWN Short term R$ 4.0 BILLION Long term R$ 3.1 BILLION 15

  16. RATIOS * Last 12 months 16

  17. Crude Steel Output Rolled Products Output 1,000 metric tons 1,000 metric tons 2,334 2,227 2,049 743% 1,957 1,687 1,599 69 845% 1,442 1,481 77 81 72 64628% 662 71 542 84 62137% 687 633 612 526 1,496 1,430 1,198 1,61469% 982 58% 832 798 885 4Q01 1Q02 2Q02 3Q02 4Q01 1Q02 2Q02 3Q02 Sales 2,314 2,121 1,000 metric tons 1,963 1,983 864% 84 90 76 64728% 625 521 695 1,58168% 1,352 1,412 1,212 South America Brazil North America 4Q01 1Q02 2Q02 3Q02 South America Brazil North America 17

  18. Steel Sector Gerdau S.A. - Consolidated AÇOMINAS Gerdau Ameristeel Corporate Governance Capital Markets

  19. 79% 37% 54% Stake before auction by the Brazilian Central Bank Acquisition of Natsteel´s 25%in Açominas US$ 212mm EVOLUTION OF STAKE IN AÇOMINAS SEPT.00 SEPT.02 DEC.01 Brazilian Central Bank Auction of 17% of former Banco Econômico US$ 180mm 19

  20. FINANCIAL STATEMENTS R$ million * Source: Açominas´ Balance Sheet – sept/02 20

  21. 621 517 515 159 Domestic market 120 184 258 Exports 397 462 331 156 102 4Q01 1Q02 2Q02 3Q02 OUTPUT & SHIPMENTS Output Revamping of blast furnace of Açominas 1,000 metric tons 3Q02 (1,000 metric tons) Crude steel 651 Rolled products 91 4Q01 1Q02 2Q02 3Q02 Shipments 1,000 metric tons 21

  22. Steel Sector Gerdau S.A. - Consolidated Açominas GERDAU AMERISTEEL Corporate Governance Capital Markets

  23. SYNERGIES CO-STEEL + GERDAU NORTH AMERICA = GERDAU AMERISTEEL • Gerdau S.A. owns 67% of Gerdau Ameristeel and the minority shareholders the remaining 33% stake. • With 11 mill locations (one Joint Venture – Gallatin), Gerdau Ameristeel is geographically positioned to service its costumers. • Integrated with 29 downstream steel fabricating and specialty product businesses, aiming at better profit margins and less volatility of earnings. • Listed in the Toronto Stock Exchange under the ticker symbol GNA. • Gerdau AmeriSteel is the 3rd largest crude steel producer and the 2nd largest long steel producer in North America. • Estimates of US$ 23 million in short term cost savings. • The Board is comprised of 13 members of which 7 are independent. 23

  24. INSTALLED CAPACITY & OUTPUT 1,000 metric tons CAPACITY UTILIZATION – 9 MONTHS 2002: 78% * Joint Venture 50% owned. 24

  25. Rebars 18% Bars 21% Rebars 32% Other 4% Wire Rod 2% Bars 34% Wire Rod 29% Special Sections 8% Flat Rolled 28% Fab Shops 24% Special Sections 4% Rebars 25% Fab Shops 14% Bars 28% Flat Rolled 14% Wire Rod 15% PRODUCT MIX - 2001 Gerdau North America Co-Steel Gerdau Ameristeel 25

  26. RESULTS – PRO FORMA * Debt includes convertible debentures 26

  27. Steel Sector Gerdau S.A. - Consolidated Açominas Gerdau Ameristeel CORPORATE GOVERNANCE Capital Markets

  28. Increase managerial capacity Meet demand resulting from increased competitiveness in the international market. • Ensure the succession process to avoid the loss of accumulated knowledge. • Increase transparency for shareholders and capital market. CORPORATE GOVERNANCE Objectives 28

  29. Board Strategy Committee Executive Committee Excellence Committee Processes Business Operations Clients CORPORATE STRUCTURE 29

  30. Chairman of the Board Jorge Gerdau Johannpeter Vice President Germano Gerdau Johannpeter Vice President Klaus Gerdau Johannpeter Vice President Frederico Gerdau Johannpeter Vice President Carlos João Petry Board Member Affonso Celso Pastore Board Member André Lara Resende Board Member Oscar Bernardes Secretary Expedito Luz BOARD General Business Orientation 30

  31. EXECUTIVE COMMITTEE JORGE GERDAU JOHANNPETER – global orientation of Strategic Planning – Corporate and Operations, Organizational Development, Corporate Communications and Community Relations Processes.FREDERICO GERDAU JOHANNPETER – business operation and global orientation of the following processes: Legal, Accounting, Audit and Holdings in addition to the Gerdau Forestry business. CARLOS JOÃO PETRY – guidance and support to the other members of the Corporate Executive Committee with their Business and Processes and global orientation of the following processes: Human Resources, Procurement and Logistics & Transportation. ANDRÉ JOHANNPETER –business operations in North America and global orientation of the Information Technology Process. CLÁUDIO JOHANNPETER – Long common and specialty Steel Operations in Brazil and global orientation of the Industrial Process (Production, Engineering, Health & Safety and Environment). OSVALDO SCHIRMER – operations in South America, global orientation of the Finance-related and Investors Relations Processes and Banco Gerdau. PAULO B. VASCONCELLOS – operations of Açominas and global orientation of the following processes: Marketing & Sales, Scrap Purchase and Quality Management Systems. EXPEDITO LUZ –Secretary of the Corporate Executive Committee and legal support to this Committee. 31

  32. Steel Sector Gerdau S.A. - Consolidated Açominas Gerdau Ameristeel Corporate Governance CAPITAL MARKETS

  33. 13% 18% 15% 19% 54% 29% 25% 27% PARTICIPATION IN TOTAL CAPITAL Gerdau S.A. Metalúrgica Gerdau S.A. Controllers Brazilian Institutional Investors Foreign Institutional Investors Date: 10/30/2001 Public 33

  34. 234 461 382 164 163 174 GERDAU S.A. 306 METALÚRGICA GERDAU S.A. 125 106 123 57 181 98 54 34 59 36% 1998 1999 2000 2001 1998 1999 2000 2001 33% 32% 33% Dividends Adjusted Net Income DIVIDENDS Distribution of dividends based on net income adjusted twice a year. 1ST HALF 2002 MET. GERDAU S.A. GERDAU S.A. Dividends R$ 36.0 million R$ 79.9 million R$ million 53% 33% 33% 32% 34

  35. +52% Nyse 700 +440% Nyse -33 Bovespa 140 500 54 +70% Bovespa +71% Nyse 82 484 300 423 10 +72% Bovespa 282 250 100 NYSE Bovespa 1999 2000 2001 LTM LIQUIDITY – GERDAU S.A.* Trading volume US$ million * Preferred shares and ADRs 35

  36. R$ 198.1 R$ 173.0 100 R$ 66.2 (9,860 points) 2000 2001 2002 Gerdau S.A. GGBR4 Metalúrgica Gerdau S.A. GOAU4 Ibovespa RETURN TO SHAREHOLDERS BOVESPA Source: Economática Reference: 05/17/2002 a 11/13/2002 36

  37. 100 US$ 86.5 US$ 77.9 (8,399 points) 2000 2001 2002 RETURN TO SHAREHOLDERS NYSE Gerdau S.A GGB Dow Jones Source: Economática Reference: 05/17/2002 a 11/13/2002 37

  38. Metalúrgica Gerdau S.A. Gerdau S.A. Ibovespa Dow Jones 10-YEAR TRACK RECORD Source: Economática Reference: 11/13/2002 38

  39. INVESTOR RELATIONS AND CAPITAL MARKET New Corporate Governance Practices: • Tag Along 100% to all shareholders • New Corporate Governance structure • Board External Members • Fiscal Committee • Disclosure Policy and compliance with Instruction CVM 358 • Inclusion in Bovespa’s Corporate Governance Index Level I 39

  40. INVESTOR RELATIONS AND CAPITAL MARKET New features: • Shareholders Service section on the web site • Quarterly Releases published in the web site • Electronic mailing list service • Toll Free Service for shareholders (Brazil only) • Satisfaction research based on market analysts opinion • Quarterly releases in quarter-over-quarter format • Specific investor relations section on the web site • Visits and presentations (non-deal road shows) to investors • Interactive charts and key ratios on the web site (under construction) 40

  41. INVESTOR RELATIONS SITE On our site you will find: Schedule of events, complete texts on results and complementary data, transcription and audio of conference calls, Q & A sessions in addition to information and documentation for shareholders. 41

  42. www.gerdau.com.br inform@gerdau.com.br

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