Apresenta

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JP Morgan
New York June 13th, 2003
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STEEL SECTORWORLD Brazil GERDAU S.A.
CONSOLIDATED Highlights Consolidated
Figures Outlook Capital Markets
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WORLD PRODUCTION Crude Steel
Source IISI
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LARGEST PRODUCERS Crude Steel 2002
In million metric tons
Gerdau pro forma Output in 2002 11,3 million
tons (including 12 months of Co-Steel)
Source Metal Bulletin
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INTERNATIONAL PRICES
FEB 2003 (USA) SCRAP PRICE US 114 / TON PIG
IRON US 160 / TON
1S 2002Price increases 39 in slabs 10 in
bars13 in wire rod16 in rebars
1Q 2003Price increases5 in slabs 11 in bars
12 in wire rod12 in rebars
Source MEPS/ USGS / AMM
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STEEL SECTORWorld Brazil GERDAU S.A.
CONSOLIDATED Highlights Consolidated
Figures Outlook Capital Markets
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BRAZILIAN STEEL SECTOR
2001
2002
Var.
Steel companies
Crude Steel output (million tons)
Revenues (US billion)
Exports (US billion)
Number of employees (thousand)
Steel apparent consumption (million tons)
Crude steel
per capita
consump. (kg/inhab.)
World Ranking
Source IBS
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CRUDE STEEL OUTPUT Brazil - 2002

• In 2002, the output of crude steel reached 29.6
  million tons compared to 26.7 million in
  2001, an increase of 10.8.
• Consolidating companies by economic groups,
  Gerdau is the 3rd largest producer in
  Brazil. Individually, Gerdau ranks 5th and
  Açominas 7th.

BRAZILIAN CRUDE STEEL OUTPUT PER ECONOMIC GROUP
In thousand tons
1Q 2003 Usiminas/Cosipa 2,083 Arcelor
2,079 Gerdau 1,675 CSN 1,272
Source IBS
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ROLLED PRODUCTS OUTPUT Brazil - 2002

• Output of long steel, sector in which Gerdau is
  present, totaled 7.6 million tons in 2002.
  This is an increase of 4.7 compared to 2001,
  when output reached 7.3 million tons.

1Q 2003 Gerdau 921 K ton. 49 Arcelor 677
K ton. 36
Source IBS
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TONS SHIPPED Brazil - 2002
DOMESTIC MARKET
TOTAL SHIPMENTS WERE 27.5 MILLION TONS IN 2002,
10,1 HIGHER THAN IN 2001. OF THIS TOTAL, 58
WENT TO THE DOMESTIC MARKET AND 42 TO EXPORTS.
Long Products 6.7M tons 42.6
Flat Products9.1M tons 57.4

• Exports of flat steel increased most 46.6
  semi- finished products increased 22.2 long
  products increased 17.3
• Total volume exported increased by 25.8 in
  2002, reaching 11.7 million tons.

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Source IBS
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IMPORTS EXPORTS Brazil - 2002
In thousand metric tons
1Q 2003 - EXPORTS US 281.2 / ton
Dec02 / Dec01 Increases in export
prices Billets 33,2 Slabs
33,7 Bars 7,4 Rebars
4,0
In 2002 exports increased by 25,8. The
devaluation of the real and the price increases
in the international markets were the main
variables in explaining this growth.
Source IBS
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APPARENT CONSUMPTION Brazil - 2002

• Apparent consumption in 2002 decreased 1,1
  compared to 2001, basically due to the
  reduction in demand for flat steel (-1,8).
• Long steel products represent 42 of
  apparent consumption.

Source IBS
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STEEL SECTORWorld Brazil GERDAU S.A.
CONSOLIDATED Highlights Consolidated
Figures Outlook Capital Markets
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Highlights

• 102 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.
• 19th largest world steel producer according to
  Metal Bulletin Magazine (15th including 12
  months of Co-Steel) .
• Largest long steel producer in the Americas.
• Gerdau S.A. is listed on the Brazilian Stock
  Exchanges, on the NYSE and on the Latibex
  (Madrid Stock Exchange). Gerdau Ameristeel Corp.
  is listed on the Toronto Stock Exchange.
• 10 units in Brazil, 12 abroad and 2 strategic
  shareholdings (Sipar and Gallatin Steel).
• 68 sales points in Brazil (Comercial Gerdau).
• 17 downstream operations and special sections
  (5 in Brazil e 12 in North America).
• 26 fabrication shops (9 in Brazil, 03 in South
  America and 14 in North America).
• 4 service centers for flat steel in Brazil
  (Comercial Gerdau).

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Geographical Distribution

• ABROAD
• 7.0 MILLION TONS OF CRUDE STEEL PER YEAR
• 6.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR

Barão de Cocais

• BRAZIL
• 7.4 MILLION TONS OF CRUDE STEEL PER YEAR
• 4.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR

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Capacity Products 2003
In thousand metric tons
Crude Steel
Rolled Products
Products
Billets, rebars, merchant bars, profiles, wire
rod, drawn products, nails, specialty steel.
Billets, slabs, blooms, rebars,merchant bars,
profiles and structurals.
Rebars, merchant bars, profiles and wire rod
Rebars, merchant bars, profiles, wire rod,
downstream products, special sections and flat
products.
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Output Evolution
Growth Average Rate 1980 - 2002 CRUDE STEEL 10.4
year ROLLED PRODUCTS 9.6 year

• Objectives
• Strategies
• Evolution

• Main Events
• Gerdau Ameristeel Corp.
• Challenges and Forecasts

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STEEL SECTORWorld Brazil GERDAU S.A.
CONSOLIDATED Highlights Consolidated
Figures Outlook Capital Markets
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HIGHLIGHTS 1Q2003

• Net Income of R 287 million in the 1st quarter
  (129).
• Net Sales of R 3.3 billion in the 1st quarter
  (101).
• Output recorded 1 million metric tons of crude
  steel in March.
• Dividends paid in a quarterly basis.
• Stock Bonus of 100 to Metalúrgica Gerdau S.A.
  shareholders and 30 to Gerdau S.A
  shareholders.
• Shares reduced by 1,0001 reverse split and
  shares traded as single units.
• Stock option plan to the management and
  employees.
• Gerdau is the 19th largest crude steel producer
  in the world as published by Metal Bulletin.
• Metalúrgica Gerdau S.A. will be listed in the
  Level I of Bovespa Corporate Governance
  Index.

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RESULTS 1Q2003
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RESULTS COMPARISON
Net Sales
Ebitda
R million
R million
Gross Margin
Ebitda Margin
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SHIPMENTS
In thousand metric tons
Good market condition in Chile.
Merger with Co-Steel and recovery of demand
after the harsh seasonal weather.
Açominas operating in full capacity. Better
international prices and stronger exports could
balance the lower domestic market demand.
Exports13.3 Domestic Market
12.9
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SALES BY PRODUCT LINE

• Gerdau has 49 of the market share in the
  Brazilian long steel market.
• The strong participation of common long steel
  products abroad is due to the merger with
  Co-Steel.

COMMON LONG STEEL PRODUCTS
1st QUARTER 2003
Common long steelproducts Abroad 43
Common long steelproducts Brazil 22
Domestic Market 72
Exports 28
Semi-finished 19
SEMI-FINISHED PRODUCTS
Exports 86
Specialty steel 3
Drawn products 6
Flat steel 8
Domestic Market 14
SALES BY SEGMENTS 45 Civil Construction, 53
Industry and 2 Agricultural (Gerdau S.A. non
consolidated)
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OUTPUT
In thousand metric tons
CRUDE STEEL OUTPUT
ROLLED PRODUCTS OUTPUT
2,955
2,185
2,135
2,922
105
2,227
97
85
91
1,481
69
1,134
1,195
71
1,084
1,122
662
612
1,675
1,691
1,496
798
996
922
1Q02
4Q02
1Q03
1Q02
4Q02
1Q03
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INDEBTEDNESSMarch 2003
In R million

• The increase in the ST portion is due to the
  reclassification of North American debt - LT x
  ST(refinancing process under development)
• Cash equivalents reduction due to the dividend
  payment made in the 1st quarter of 2003 (R 186
  million).

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DEBT BREAKDOWNMarch 2003
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FINANCIAL RATIOS
EBITDA last 12 months.
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INVESTMENTS
1ST QUARTER 2003 US 78 MM
2003 FORECAST US 230 MM
Gerdau US 17 mm
South America US 2 mm
Stronger investments in the 1Q 2003 due to the
new wire rod rolling mill facility.
North America US 22 mm
Açominas US 37 mm
HIGHLIGHTS

• Conclusion of the new wire rod rolling mill in
  Açominas.
• Enlargement of electric furnace of Piratini and
  an increase of 15 in the melt shop capacity.
• Implantation of a new continuous casting in
  Usiba mill (conclusion in 2004).
• Improvements and technological update of the
  facilities in North America.
• The São Paulo Greenfield project will be
  analyzed in the 2nd half of 2003.

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STEEL SECTORWorld Brazil GERDAU S.A.
CONSOLIDATED Highlights Consolidated
Figures Outlook Capital Markets
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FORECASTS

• BRAZIL
• Increase of 2.0 in GDP
• Increase of exports
• Decrease of the Brazilian risk
• Better risk perception by foreign investors
• Record year of Agricultural output
• Impact of the Asian economy slowdown

• NORTH AMERICA
• End of the war and slow economic recovery
• End of winter time and increase in demand
• Price increases will enhance 2Q2003 results
• Main inputs cost decreasing

• SOUTH AMERICA
• Good condition of the Chilean economy
• Slow recovery of Argentinean economy

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STEEL SECTORWorld Brazil GERDAU S.A.
CONSOLIDATED Highlights Consolidated
Figures Outlook Capital Markets
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SHAREHOLDERS STRUCTURE March 2003
METALÚRGICA GERDAU S.A.
GERDAU S.A.
Other investors 16
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STOCK BONUS REVERSE SPLIT
METALÚRGICA GERDAU S.A.
GERDAU S.A.

• Events schedule
• 05.02.2003 shares traded with all adjustments
  (ex-rights)
• 05.15.2003 dividend payment based on positions
  held on 03.31.2003
• 06.10.2003 deadline to shareholders compose
  their odd lots
• 06.23.2003 Bovespas auction to sell the odd
  lots
• 06.30.2003 credit in the shareholders bank
  accounts of the odd lot amounts

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DIVIDEND POLICY

• Distribute, at least, 30 of the Adjusted Net
  Income.
• Since March 2003, the dividend payment started to
  be made on a quarterly basis.

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Higher amount due to the supplementary dividend
payment.
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LIQUIDITY OF SHARES Gerdau S.A.
US million
Traded Volume
700
143
138
500
54
82
300
423
459
10
474
282
250
100
2000
1999
2001
2002
LTM
Date 04.30.2003
Source Economática
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QUOTES EVOLUTION
Period 01.01.2001 a 04.30.2003
Source Economática
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APPRECIATION CHART
PROFITABILITY IN US
Source Economática
Date 04.30.2003
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