New York – November 17th, 2003

HIGHLIGHTS

9M03

09.30.2003

Gross Sales US$ 4.0 billion

Net Sales US$ 3.4 billion

EBITDA US$ 692 million

Net Income US$ 272 million

Output (crude steel) 9.2 million tons

Total Assets US$ 5.0 billion

Shareholders Equity US$ 1.7 billion

Employees 19 thousand

102 years of tradition focused on the production of steel

in market mills and in the distribution of steel products.

02

GEOGRAPHICAL DISTRIBUTION

(2) Rolling mill, 38% owned JV

(1) Flat steel mill, 50% owned JV

03

SOUTH AMERICA

2 mills and 1 strategic shareholding (Sipar)

3 fabrication shops

BRAZIL

10 mills

9 fabrication shops

5 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)

14 fabrication shops

12 downstream operations and special sections

Gerdau AmeriSteel Corp.

Sipar (2)

Laisa

Gerdau S.A.

Açominas

Aza

Gallatin Steel (1)

MAIN PRODUCTS

BILLETS

REBARS

MERCHANTS

FABRICATED STEEL

04

MAIN PRODUCTS

WIRES NAILS

WIRE-RODSTRUCTURAL

05

In 1,000 tons

CAPACITY & PRODUCTS

06

Billets, merchant bars, rebars, wire rod,

drawn products, welded meshes, nails,

downstream products, fabricated steel

products and specialty steel.

PRODUCTSCRUDE

STEEL

ROLLED

PRODUCTS

Billets, merchant bars, rebars,slabs, blooms, profiles and structurals.

Billets, merchant bars, rebars, wire rod,

welded meshes and fabricated steel

products

Billets, merchant bars, rebars, wire rod,

drawn products, welded meshes, nails,

downstream products, fabricated steel

products and specialty steel.

Gerdau S.A.

Açominas

South America

North America

TOTAL

4,374 4,071

3,000 740

510 634

6,567 6,187

14,451 11,632

OUTPUT EVOLUTION

07

AVERAGE GROWTH RATE

1980 - 2003Crude Steel 10.2% year

Rolled Products 9.2% year

14th largest world steel producer according to the IISI. Largest long steel producer in the Americas.

Crude Steel Rolled Products

12 million

9 million

AzaChile1992

MRMCanada1995

Part. Açominas

1997AmeriSteel

USA1999

CearenseGuaíra1982

LaisaUruguay

1981

Hime1985

Barão de Cocais1988

CourticeCanada1989

Usiba1989

Piratini1992

Pains1994

Sipsa Argentina

1997

Açominas(control)

2002

Co-Steel2002

2003*1980 1984 199619921988 2000

* 9 months annualized

Part. Sipar

Argentina1998

COMPETITIVE EDGE

Focus on long steel products manufacturing and distribution

Market mill approach

Up-to-date technology

Competitive production cost

Diversified production processes

Multiple raw materials sourcing

Vertical and horizontal integration

Relevant market share in every country where the company has operations

Financial soundness and access to international capital markets

Tested experience in turning around distressed operations

08

Adjusted Net Income

Dividend paid

Payout of 30% of the Adjusted Net Income.

Since March 2003, dividend payments are being made on a quarterly basis.

US$ million

METALÚRGICA GERDAU S.A.

1998 20001999 2001* 2002

8988 91101 117

2928 3053 40

32.8% 32.0% 32.8% 35.6% 34.9%32.0% 33.1% 32.6% 52.5% 33.9%

11.7 % 3.6 % 6.1 % 6.8 % 7.1%16.4 % 6.0 % 7.9 % 17.0 % 12.4 %

2001200019991998 2002

199

71195

64171

55150

49

216

75

GERDAU S.A.US$ million

* Higher amount due to a one-time supplementary dividend payment.

DIVIDEND POLICY

PAYOUT

YIELD

09

CAPITAL MARKETS

Public company since 1947

(Metalúrgica Gerdau at the former Porto Alegre Stock

Exchange)

Gerdau S.A. went public in 1980

Listed companies:

Metalúrgica Gerdau S.A.: ………. Bovespa

Gerdau S.A.: ………………………… Bovespa

Nyse

Latibex

Gerdau AmeriSteel Corp.: ……… Toronto

10

Other investors 34%

Foreign Inst. Investors17%

Brazilian Inst. Investors24%

Gerdau ControllingGroup

25%

METALÚRGICA GERDAU S.A.

Other investors16%

Foreign Inst. Investors21%Brazilian Inst. Investors

11%

Gerdau Companies52%

GERDAU S.A.

SHAREHOLDERS STRUCTURESeptember 2003

11

Source: Economática – Period: Jan 2nd, 2001 to Oct 31st, 2003 (Base 100)

STOCK PRICE PERFORMANCE

12

USA (NYSE)

BRAZIL (Bovespa)

100

200

300

400

2001 2002 2003

Met. Gerdau S.A - GOAU4

Gerdau S.A. – GGBR4

Ibovespa

500

100

200

300

2001 2002 2003

Gerdau S.A – GGB

Dow Jones

LIQUIDITY

13

Avg / Daily Dollar trading volume – GGBR4 (Bovespa)

Avg / Daily Dollar trading volume – GGB (NYSE)

Avg / Daily number of transactions – GGBR4 (Bovespa)

Jan 0

2

Apr 02

Jun 0

2

Oct 0

2

Jan 0

3

Apr 03

Jun 0

3

Oct 0

3

0

1000

2000

3000

4000

5000

6000

7000

US

$ m

il

0

100

200

300

400

500

600

700

Nu

mber o

f tran

sactio

ns

Source: Economática - October 31st, 2003

Profitability in US$

APPRECIATION CHART

14

USA (NYSE)

1 YEAR 3 YEARS

GGBR4+123%

Ibov+125%

GGBR4+505%

Ibov+7%

Ibov-19%

GGBR4+129%

5 YEARS

BRAZIL (Bovespa)

GGB+84%

Dow+0,3%

Dow+17%

Dow-11%

GGB+109%

GGB+340%

1 YEAR 3 YEARS 5 YEARS

COMPLEMENTARY INFORMATIONa) Sources: Economática, Yahoo Finance, Bloomberg and

company websites

b) Belgo and CSN data in lots of thousand shares

c) FX: 06/30/2003: US$ 1.00 = R$ 2.872009/30/2003: US$ 1.00 = R$ 2.923210/31/2003: US$ 1.00 = R$ 2.8562

d) EV = Enterprise Value = Market Capital + Net Debt

COMPARATIVE DATA

15

NOTES:

1) Gerdau, Nucor and Steel Dynamics: on 09/30/03Belgo, CSN and Usiminas: on 06/30/03

2) Gerdau: 9M annualized;Nucor and Steel Dynamics: TTM (Trailing Twelve Months)Belgo, CSN and Usiminas: 6M annualized

3) Gerdau, Nucor and Steel Dynamics: 9M03;Belgo, CSN and Usiminas: 6M03

Base data

10/ 31/ 2003Market Capitalization(US$mm)

2003Avg / Daily Trading Volume (US$ thousand)

Note 1 Enterprise value - EV (US$ mm)

Note 2 EBITDA annualized (US$ mm)

EV/ EBITDA annualized (X)

10/ 31/ 2003 Stock Price (US$)

Note 3 Net Income (US$mm)

Market Capital / EBITDA annualized (X)

GERDAU NUCORSTEEL

DYNAMICS

2,159 4,286 886

2,885 na na

3,936 4,207 1,252

923 502 232

BELGO CSN USIMINAS

1,359 2,951 1,720

444 5,505 3,815

1,407 3,626 3,560

402 1,060 1,148

4.3 8.4 5.4

14.6 54.8 18.6

271.8 42.2 30.4

2.3 8.5 3.8

3.5 3.4 3.1

194.5 41.3 8.0

156.5 178.6 286.9

3.4 2.8 1.5

OUTLOOK

16

Demand pick up in Brazil;

Based interest in a declining trend in Brazil;

International prices trend: stable to upward;

Brazil’s economic and political stability results in a better country risk;

Social security system reform underway;

North American operations pursuing better results;

US economy recovering, but slowly;

South American operations in very good shape and improving.

www.gerdau.com.br

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