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Gerdau
JP MORGAN 2002 Latin America Equity Conference
November 4-5, 2002
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GERDAU S.A. - CONSOLIDATED Açominas Gerdau
Ameristeel Corporate Governance Capital Markets
All tonnage expressed in metric tons
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FINANCIAL STATEMENTS
R million
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Net Revenue
R million
2,958
1,978
1,659
1,300
4Q01
1Q02
2Q02
3Q02
Gross Margin
Ebitda Margin
42
34
34
28
13
11
4Q01
1Q02
2Q02
3Q02
4Q01
1Q02
2Q02
3Q02
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INDEBTEDNESS
R million
HEDGE
05
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DEBT BREAKDOWN
Short term
R 4.0 BILLION
Long term
R 3.1 BILLION
Eurobonds R 289 mm
BNDES R 286 mm
Açominas (R) - R 223 mm
Debentures R 534 mm
Bank loan - R 186 mm
Import loan - R 172 mm
Açominas (R) - R 156 mm
Pre-export - R 114 mm
Companies abroad R 1,093 mm
Other - R 85 mm
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RATIOS
Last 12 months
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08
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Gerdau S.A. - Consolidated AÇOMINAS Gerdau
Ameristeel Corporate Governance Capital Markets
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EVOLUTION OF STAKE IN AÇOMINAS
SEP.00
SEP.02
DEC.01
79
37
54
Stake before Brazilian Central Bank Auction
Natsteel buyout
Brazilian Central Bank Auction
17 ECONÔMICO US 180mm
25 NATSTEEL US 212mm
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FINANCIAL STATEMENTS
R million
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OUTPUT SHIPMENTS
Output Revamping of blast furnace of Açominas
1,000 tons
3Q2002 (1,000 tons) Crude steel 651 Rolled
products 69
Shipments
1,000 tons
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Gerdau S.A. - Consolidated Açominas GERDAU
AMERISTEEL Corporate Governance Capital Markets
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SYNERGIES
CO-STEEL GERDAU NORTH AMERICA GERDAU
AMERISTEEL

• Minority shareholders retain a 33 interest in
  Gerdau Ameristeel and Gerdau S.A. owns 67 of
  the new company.
• With 11 mill locations, Gerdau Ameristeel is
  geographically positioned to service long
  product costumers and is integrated with 29
  downstream steel fabricating and specialty
  product business, increasing profit margins and
  reducing the volatility of earnings.
• Listed in the Toronto Stock Exchange under the
  ticker symbol GNA.
• Gerdau AmeriSteel is the 3rd largest steel
  producer and the 2nd largest long steel
  producer in North America.
• Estimate of US 23 million in near-term cost
  savings.
• The Board is comprised of a majority of
  outside, independent directors 8 from
  Co-Steel, including 7 independent directors and 5
  Gerdau directors.

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INSTALLED CAPACITY OUTPUT
UTILIZATION 9 MONTHS 2002 77
Jointventure 50 owned.
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PRODUCT MIX - 2001
Gerdau North America
Co-Steel
Gerdau AmeriSteel
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RESULTS PRO FORMA
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Gerdau S.A. - Consolidated Açominas Gerdau
Ameristeel CORPORATE GOVERNANCE Capital Markets
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CORPORATE STRUCTURE
Objectives

• 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.

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CORPORATE GOVERNANCE
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BOARD
General Business Orientation
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EXECUTIVE COMMITEE

• JORGE GERDAU JOHANNPETER Strategic planning
  Group Operations Public community
  relations
• FREDERICO GERDAU JOHANNPETER Support and
  guidance to accounting auditing Holding
  Legal Gerdau Forestry.
• CARLOS JOÃO PETRY Personnel Logistics
  Freight - Supplies
• ANDRÉ JOHANNPETER North America Global
  Information Systems
• CLÁUDIO JOHANNPETER Long Steel Brazil
  Specialty steels - Industrial
• OSVALDO SCHIRMER Finance Investor Relations
  Argentina, Chile and Uruguay Banco Gerdau
• PAULO VASCONCELLOS Açominas Marketing Sales
  Management of quality and technology
  Metallic Input
• EXPEDITO LUZ Secretary

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Gerdau S.A. - Consolidated Açominas Gerdau
Ameristeel Corporate Governance CAPITAL MARKETS
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COMPARATIVE DATABRAZIL
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COMPARATIVE DATA NORTH AMERICA
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COMPARATIVE DATA OTHER
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DIVIDEND
1st half 2002 MET. GERDAU S.A. GERDAU
S.A. Dividends R 36.0 million R 79.9
million Net income R 296.4 million R 295.4
million

• The payout in the 1st half is an advancement of
  the full years dividend.
• The 2nd half dividend completes the minimum
  dividend payout as stated in the by-laws of
  the Company.

METALÚRGICA GERDAU S.A.
GERDAU S.A.
Dividends
Net income
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LIQUIDITY GERDAU SHARES
Trading volume
US million
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