GRUPO GERDAU SEPTEMBER 7 th, 2001 New York Stock Exchange COMPANY * 100 years of tradition focused on the production of steel in mini-mills and the distribution of steel products. * Installed capacity of 8.4 million metric tons of crude steel. * 24 th largest world steel producer and the best ranked Brazilian Company. * Largest Latin American long steel producer. * Distribution network with 64 sales points, 3 service centers for flat steel and 27 fab shops for civil construction. * 9 steel plants in Brazil, 9 abroad and 2 strategic shareholdings. 02 VOCATION FOR STEEL MAKING Nail Factory Acquisition of Sid. Riograndense Mill Expansion in Brazil Construction of Cosigua largest Latin American market mill Expanding internationally Privatization 20 market mills in the Americas 1901 40 60 70 80 90 Decades 03 MARKET SHARE * 90% of total sales are shipped to the manufacturing and civil construction sectors. The balance goes to the agriculture and specialty segments. MARKET LEADER OF ROLLED PRODUCTS IN BRAZIL Gerdau 46% Belgo 35% Other 19% 04 STRATEGY * Focus on long steel products output and distribution * Vertical and horizontal integration * Market mills * Geographical expansion through acquisitions and greenfield projects * Professionalism * Empowerment 05 OTHER INVESTMENTS * Reforestation * Retail sales * Bank * Power generation * Fabrication shops JOINT VENTURES * Aominas * Sipsa/Sipar * Monteferro 06 GEOGRAPHICAL DISTRIBUTION Sipar Aza Sipsa Laisa AmeriSteel Courtice MRM Gerdau S.A. Aominas 07 CAPITAL MARKETS Begins trading in: Porto Alegre Stock Exchange 1970 Listing of shares on the Rio de Janeiro and So Paulo Stock Exchanges 1984 Listing of Cosiguas shares 1999 Listing of ADR level II on the NYSE 2000 Bovespa Index (Ibovespa) 2001 Corporate Governance Index (IGC - level I) - Bovespa 08 WHAT STILL NEEDS TO BE DONE * Increase liquidity in the US * Further consolidation of North American operations * Enhance the presence in Brazilian growing markets 09 GROSS SALES: R$ 6.2 billion NET INCOME: R$ 398 million EBITDA: R$ 1.1 billion TOTAL ASSETS: R$ 6.9 billion SHAREHOLDERS EQUITY: R$ 2.4 billion PRODUCTION: 7.1 MILLION METRIC TONS OF CRUDE STEEL GERDAU US$ 1 = R$ Source: Gerdau 10 EARNINGS DISTRIBUTION AS A % OF EBITDA 0% 5% 10% 15% 20% % 19% Source: Gerdau 11 EBITDA , R$ million US$ million Source: Gerdau 12 TOTAL RETURN TO SHAREHOLDERS IN DOLLARS Source: Economatica Gerdau Dow Jones T- Bond 30Y Index 13 APPRECIATION CHART FROM 1992 TO % 200% 100% -20% GerdauIbovespaDow Jones 3 years5 years10 years Reference: 8/27/2001 Source: Economatica14 PRICE / EARNINGS (P/E) Jun 99 Nov 99Apr 00Sep 00Feb 01Jul Jan GerdauBrazilian Steel Sector Gerdau average (99-01): 6.12 Brazilian steel sector average (99-01): 6.18 Source: Economatica15 PRICE / BOOK VALUE 100% Jan 99Jun 99Nov 99Apr 00Sep 00Feb 01Jul 01 72% Gerdau Source: Economatica16 MARKET CAPITALIZATION US$ Jan 99Jun 99Nov 99Apr 00Sep 00Feb 01Jul 01 2,0 1,0 US$ billion0,5 1,5 US$ 1.1 billion GerdauAverage Market Capitalization Source: Economatica17