BOLSA DE MADRIDLATIBEX

Madrid, BarcelonaEspaña

November 28-29, 2002

Gerdau

STEEL SECTOR

Gerdau S.A. - Consolidated

Açominas

Gerdau Ameristeel

Corporate Governance

Capital Markets

Source: IISI / LAFA / IBS

WORLD - CRUDE STEEL OUTPUTIn million metric tons

Country 9M02 9M01 Variation

1 China 130.5 104.9 +24.4%

2 Japan 79.7 78.1 +2.0%

3 USA 68.3 69.7 -2.0%

4 Russia 43.7 43.3 +0.9%

5 Germany 33.8 34.0 -0.6%

6 Korea 33.6 32.6 +3.1%

7 Ukraine 25.2 25.1 +0.4%

8 Brazil 21.8 19.9 +9.5%

9 India 21.3 20.3 +4.9%

10 I taly 19.3 19.9 -3.0%

Others 177.0 174.6 +1.4%

TOTAL 654.2 622.4 +5.1%

03

AMERICAS - CRUDE STEEL OUTPUT

Source: IISI / LAFA / IBS

In million metric tons

Country 9M02 Contribution

USA 68.3 56.0%

Brazil 21.8 17.9%

Canada 12.1 9.9%

Mexico 10.5 8.6%

Venezuela 3.2 2.6%

Argentina 3.2 2.6%

Others 2.9 2.4%

TOTAL 122.0 100.0%

04

9m02 9m02/ 01 9m02 9m02/ 01 9m02 9m02/ 01

3,789 +37% 3,104 +14% - -

3,643 +1% 1 - - -

3,404 -1% 2,889 -5% - -

2,772 +42% 1,890 +1% - -

2,651 +1% - - 2,440 -3%

2,109 +7% - - 2,041 +2%

1,657 +2% - - 231 +15%

552 -15% 421 -3% 1 -58%

543 +13% - - 320 +4%

370 -8% - - 334 -4%

284 -6% - - 265 -4%

20 -20% - - - -

21,794 +10% 8,305 +3% 5,632 -1%

Crude Steel Flat Rolled Products Long Rolled Products

BRAZILIAN OUTPUT

Growth due to: Conclusion on the refurbishment of the blast furnace at CSN. Increase in capacity of melt shop at Cosipa.Source: IBS

1,000 metric tons

05

1 CSN

2 CST

3 Usiminas

4 Cosipa

5 Gerdau

6 Belgo

7 Açominas

8 Acesita

9 Aços Villares

10 V&M do Brasil

11 Barra Mansa

12 MWL Brasil

TOTAL

-10%

-5%

0%

5%

10%

15%

20%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

(50)

(40)

(30)

(20)

(10)

-

10

20

Apparent consumption

GDPElasticity

Source: IBS / Conjuntura Econômica

APPARENT CONSUMPTION x GDP

MARKET SHARELong products

GERDAU - 48%

Belgo - 36%

Others - 16%

BRAZIL

13,04,2

-42,3

-3,5

2,73,9

-0,13,3

5,3

2,5

Ela

sti

cit

y

(mu

ltip

les)

06

Steel Sector

GERDAU S.A. - CONSOLIDATED

Açominas

Gerdau Ameristeel

Corporate Governance

Capital Markets

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.

HIGHLIGHTS

08

1,000 metric tons 1980 2002 Variation

Crude steel 1,303 11,500 +8.8 x

Rolled products 1,182 8,800 +7.4 x

OUTPUT EVOLUTIONCONSOLIDADED

2002 includes full year Co-Steel09

AzaChile1992

Part. Sipar

Argentina1998

MRMCanada1995

Part. Açominas

1997AmeriSteel

USA1999

Crudesteel

Rolledproducts

CearenseGuaíra1982

LaisaUruguay

1981

Hime1985

Barão de Cocais1988

CourticeCanada1989

Usiba1989

Piratini1992

Pains1994

Sipsa Argentina

1997

2002annualized

Açominas(control)

2002

Co-Steel2002

1980 1984 199619921988 2000

Met. Gerdau S.A.

Gerdau S.A.

Seiva Gerdau Internacional Açominas

Sipar

Laisa

Aza

51%

79%100%96%

67%

38%

100%

100%

Courtice

MRM

AmeriSteel

Gallatin

Gerdau Ameristeel Corp.

100%

100%

100%

50%

CAPITAL STRUCTURE

10

(1) Flat steel mill, 50% owned JV(2) Rolling mill, 38% owned JV

BRAZIL

7.2 million metric tons of crude steel

4.7 million metric tons of rolled products

ABROAD

7.0 million metric tonsof crude steel

6.8 million metric tons of rolled products

Sipar (2)

Laisa

AmeriSteel

Courtice

MRM

Gerdau S.A.

Açominas

Raritan plant

INSTALLED CAPACITY14,2 million metric tons/year

Aza

Gallatin (1)

Sayreville plant

Lasco plant

11

Gerdau S.A. - Consolidated

Net sales

Cost of sales

Gross profit

SG&A

Other operational revenues

Net financial expenses

Equity pick-up

Operating profit

Non-operational rev./ expenses

Income tax and social contribution

Statutory participation

Net income

Depreciation and amortizations

EBITDA

R$ million

FINANCIAL STATEMENTS

3Q02 2Q02 9M02 9M01

2,958 1,978 6,596 4,589

(2,137) (1,419) (4,718) (3,343)

821 559 1,878 1,246

(302) (233) (729) (537)

52 50 101 0

(730) (286) (1,141) (584)

492 109 588 312

333 199 697 437

(18) 2 (28) (6)

15 (26) (37) (54)

(3) (5) (9) (7)

327 170 623 370

163 113 385 304

682 439 1,534 1,013

12

Brazil North America South America

1,300

1,6591,978

2,958

R$ million

4Q01 1Q02 2Q02 3Q02

Net Revenue Ebitda

4Q01 1Q02 2Q02 3Q02

R$ million

297

412 439

682

4Q01 1Q02 2Q02 3Q02

Gross Margin

42%

34%

13%

Ebitda Margin

4Q01 1Q02 2Q02 3Q02

34%

29%

11%

GERDAU S.A. CONSOLIDATED

13

INDEBTEDNESSR$ million

Cost of Debt Sept.02 Dec.01

Brazil - in R$ 13.6% 15.2%Brazil - in US$ + FX 9.4% 7.7%Abroad 4.4% 6.5%

Gerdau S.A. Consolidated Sept.02 Dec.01

TOTAL DEBT 100% 7,107.3 4,166.8

SHORT TERM 56% 3,969.7 2,106.7

Domestic currency 108.3 471.3

Foreign currency 1,699.6 642.8

Companies abroad 2,161.8 992.6

LONG TERM 44% 3,137.6 2,060.1

Domestic currency 1,128.2 665.2

Foreign currency 916.0 793.0

Companies abroad 1,093.4 601.9

CASH & EQUIVALENTS 28% 1,962.8 1,012.8

Domestic currency 631.9 416.5

Foreign currency - -

Companies abroad 1,330.9 596.3

NET DEBT 72% 5,144.5 3,154.0

HEDGE

TOTAL DEBT

Domestic currencyForeign currencyAbroad

FX EXPOSURE

Foreign currency debt

Swap operationsCash & equivalents in US$TOTAL HEDGE

HEDGE/ EXPOSURE

100%

17%37%46%

R$ bi

2.6

1.81.33.1

1.2x

14

DEBT BREAKDOWN

Short termR$ 4.0 BILLION

Long termR$ 3.1 BILLION

Companies abroad

R$ 2,162 mm

Other - R$ 34 mm

BNDES – R$ 91 mmBank loan (res. 2770) – R$ 149 mm

Import loan (Firce) – R$ 281 mm

Pre-export /ACC – R$ 411 mm

Açominas (US$)

R$ 842 mm

Companies abroadR$ 1,093 mm

DebenturesR$ 534 mm

EurobondsR$ 289 mm

BNDESR$ 286 mm

Açominas (R$) - R$ 223 mm

Bank loan (res. 2770) - R$ 186 mm

Import loan (Firce) - R$ 172 mm

Açominas (US$) - R$ 156 mm

Pre-export - R$ 114 mm

Other - R$ 85 mm

15

RATIOS

Gerdau S.A. Consolidaded Sept.02 Dec.01

Total debt/ Total capitalization 64.5% 51.6%

Net debt/ Total capitalization 56.8% 44.6%

Total debt/ EBITDA* 3.9X 3.2X

Net debt/ EBITDA* 2.8X 2.4X

Ebitda/ Net financial expenses 4.8X 5.7X(minus monetary & exchange rate var.)

EV/ EBITDA* 4.4X 4.3X

* Last 12 months

16

Crude Steel Output1,000 metric tons

4Q01 1Q02 2Q02 3Q02

1,430

542

77

1,496

662

69

1,198

687

72

1,61469%

64628%

743%

2,0492,227

1,957

2,334

Rolled Products Output1,000 metric tons

4Q01 1Q02 2Q02 3Q02

832

526

84

798

612

71

885

633

81

98258%

62137%

845%1,442 1,481

1,5991,687

South AmericaNorth AmericaBrazil

4Q01 1Q02 2Q02 3Q02

Sales

1,000 metric tons

1,352

521

90

1,412

625

84

1,212

695

76

1,58168%

64728%

864%

1,9632,121

1,9832,314

South AmericaNorth AmericaBrazil 17

Steel Sector

Gerdau S.A. - Consolidated

AÇOMINAS

Gerdau Ameristeel

Corporate Governance

Capital Markets

EVOLUTION OF STAKE IN AÇOMINAS

37% 54% 79%

US$ 212mm

Stake before auction by the Brazilian

Central Bank

Acquisition of Natsteel´s 25%

in Açominas

Brazilian Central Bank Auction of 17% of former

Banco Econômico

SEPT.00 DEC.01 SEPT.02

US$ 180mm

19

FINANCIAL STATEMENTS

Açominas 3Q02 2Q02

Net sales 351 173

Cost of sales (228) (125)

Gross profit 123 48

SG&A (29) (23)

Other operational rev./ expenses 41 43

Net financial expenses (130) (130)

Equity pick-up 2 1

Operating profit 7 (61)

Income tax and social contribution (3) 18

Net income 4 (43)

Depreciation and amortizations 26 15

EBITDA 161 83

9M02 9M01

819 711

(583) (509)

236 202

(80) (69)

79 (16)

(271) (226)

4 3

(32) (106)

20 -

(12) (106)

69 55

304 172

R$ million

* Source: Açominas´ Balance Sheet – sept/02

20

OUTPUT & SHIPMENTSOutputRevamping of blast furnace of Açominas

2Q02 3Q021Q024Q01

331

184

515

102

156

258462

159

621

397

120

517Domestic market

Exports

Shipments

3Q02 (1,000 metric tons)

Crude steel 651

Rolled products 91

1,000 metric tons

1,000 metric tons

2Q021Q024Q01 3Q02

21

Steel Sector

Gerdau S.A. - Consolidated

Açominas

GERDAU AMERISTEEL

Corporate Governance

Capital Markets

SYNERGIES

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.

CO-STEEL + GERDAU NORTH AMERICA = GERDAU AMERISTEEL

23

* Joint Venture 50% owned.

INSTALLED CAPACITY & OUTPUT

CAPACITY UTILIZATION – 9 MONTHS 2002: 78%

Units

Charlotte, NCJ ackson, TNJ acksonville, FLKnoxville, TNCartersville, GA

Selkirk, MB (MRM)Courtice, ON (Courtice)

Whitby, ON (Lasco)

Perth Amboy, NJ (Raritan)Sayreville, NJ

Gallatin County, KY*

Total

Crude steel

Rolled products

Crude steel

Rolled products

417 363 231 227607 544 341 311580 558 425 422413 454 283 282780 544 261 197

349 299 227 216326 295 228 212

871 998 449 435

816 907 426 476

726 544 454 332

680 680 502 496

6,565 6,186 3,827 3,606

Installed Capacity Production 9M02

Merchant bars and rebarMerchant bars, rebar and stucturalRebar and wire-rodRebarMerchant bars and structurals

Special sectionsMerchant bars and rebar

Merchant bars, rebar and stuctural

Wire-rod

Merchant and rebar

Flat products

Products

24

1,000 metric tons

PRODUCT MIX - 2001

Co-Steel Gerdau North America

Gerdau Ameristeel

Wire Rod29%Flat Rolled

28%

Bars21%

Rebars18%

Other4%

Wire Rod2%

Special Sections8%

Fab Shops24%

Rebars32%

Bars34%

Fab Shops14%

Flat Rolled14%

Wire Rod15%

Special Sections4%

Bars28%

Rebars25%

25

RESULTS – PRO FORMA

Gerdau Ameristeel 3Q02 9M02

SHIPMENTS (1,000 metric tons)

Mill finished steel 1,164 3,572

Fabricated steel products 157 465

INCOME STATEMENT (US$mm)

Net Sales 442 1,285

Operating profit 22 63

Net income 12 22

EBITDA 46 133

BALANCE SHEET (US$mm)

Net working capital 330

Cash 15Debt* 633Book Value 541

Shares outstanding (1,000 shares) 198,092Market capitalization 330

* Debt includes convertible debentures

26

Steel Sector

Gerdau S.A. - Consolidated

Açominas

Gerdau Ameristeel

CORPORATE GOVERNANCE

Capital Markets

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.

CORPORATE GOVERNANCE

28

Processes

Board

ExecutiveCommittee

Business Operations

Clients

Strategy Committee

Excellence Committee

CORPORATE STRUCTURE

29

BOARD

General Business Orientation

Jorge Gerdau Johannpeter

Germano Gerdau Johannpeter

Klaus Gerdau Johannpeter

Frederico Gerdau Johannpeter

Carlos João Petry

Affonso Celso Pastore

Oscar Bernardes

Expedito Luz

André Lara Resende

Chairman of the Board

Vice President

Vice President

Vice President

Board Member

Board Member

Vice President

Secretary

Board Member

30

EXECUTIVE COMMITTEEJORGE 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

Steel Sector

Gerdau S.A. - Consolidated

Açominas

Gerdau Ameristeel

Corporate Governance

CAPITAL MARKETS

Metalúrgica Gerdau S.A.

25%

19%

29%

27%Controllers

Brazilian Institutional Investors

Public

Foreign Institutional InvestorsDate: 10/30/2001

54%

13%18%

15%

Gerdau S.A.

PARTICIPATION IN TOTAL CAPITAL

33

METALÚRGICA GERDAU S.A.

2000 200119991998

106

163 174

234

1235754

34

DIVIDENDS

1ST HALF 2002 MET. GERDAU S.A. GERDAU S.A.

Dividends R$ 36.0 million R$ 79.9 million

Dividends Adjusted Net Income

53%

33%33%

32%

GERDAU S.A.

2000 200119991998

181

306382

461

59

98125

16436%

33%32%

33%

R$ million

Distribution of dividends based on net income adjusted twice a year.

34

LIQUIDITY – GERDAU S.A.*

Trading volume

NYSE Bovespa

US$ million

20001999 2001 LTM

250

10 423

282

54

82

140

484

700

500

300

100

+70%Bovespa

+440%Nyse

-33Bovespa

+52%Nyse

+72%Bovespa

+71%Nyse

* Preferred shares and ADRs35

RETURN TO SHAREHOLDERSBOVESPA

Gerdau S.A.GGBR4

IbovespaMetalúrgica Gerdau S.A.GOAU4

20012000 2002

100

R$ 173.0

R$ 66.2(9,860 points)

R$ 198.1

Source: Economática Reference: 05/17/2002 a 11/13/2002

36

Source: Economática

RETURN TO SHAREHOLDERSNYSE

Gerdau S.AGGB

Dow Jones

20012000 2002

100

US$ 77.9(8,399 points)

US$ 86.5

Reference: 05/17/2002 a 11/13/2002

37

10-YEAR TRACK RECORD

Reference: 11/13/2002Source: Economática

Gerdau S.A. Ibovespa Dow JonesMetalúrgica Gerdau S.A.

-100%

0%

100%

200%

300%

400%

3 years 5 years 10 years

38

INVESTOR RELATIONS AND CAPITAL MARKET

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

New Corporate Governance Practices:

39

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)

INVESTOR RELATIONS AND CAPITAL MARKET

40

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

www.gerdau.com.br

inform@gerdau.com.br