New York – June 13th, 2003

JP Morgan

STEEL SECTOR

WORLD

Brazil

GERDAU S.A. CONSOLIDATED

Highlights

Consolidated Figures

Outlook

Capital Markets

WORLD PRODUCTIONCrude Steel

Source: IISI 3

1st China

2nd Japan

3rd USA

4th Russia

5th South Korea

6th Germany

7th Ukraine

8th Brazil

9th India

10th Italy

Other

Total

20012002In million metric tons

Var.

On 1Q 2003

Brazil

produced

7.5 million

tons, 6.9%

more than in

the 1Q 2002.

181,6 150,9 20,3%

107,7 102,9 4,7%

92,2 90,1 2,4%

59,9 59,0 1,6%

45,4 43,9 3,5%

45,0 44,8 0,5%

34,1 33,1 2,9%

29,6 26,7 10,8%

28,8 27,3 5,6%

26,0 26,7 -2,7%

236,5 228,5 3,5%

886,7 833,8 6,4%

LARGEST PRODUCERS Crude Steel 2002

Source: Metal Bulletin

In million metric tons

Gerdau pro forma

Output in 2002: 11,3 million tons

(including 12 months of Co-Steel)

1st Arcelor 44,0

2nd Nippon Steel 30,9

3rd Posco 28,9

4th LNM Group 27,5

5th Shanghai Baosteel 19,5

6th Thyssen Krupp Steel 17,0

7th Corus Group 16,8

8th NKK 16,5

9th Riva Group 15,2

10th US Steel 14,5

11th Kawasaki 13,7

12th Nucor 12,4

13th Sumitomo Metal 11,8

14th Sail 11,4

15th GERDAU 11,3 4

FEB 2003 (USA)

SCRAP PRICEUS$ 114 / TON

PIG IRONUS$ 160 / TON

INTERNATIONAL PRICES

Source: MEPS/ USGS / AMM

1Q 2003Price increases:

5% in slabs

11% in bars 12% in wire rod12% in rebars

5

US$ 294 Rebars

US$ 344 Slabs

US$ 322 Bars

US$ 306 Wire rod

Jan. 01 Jul. 01 Jan. 02 Jul. 02 Jan. 03

200

260

300

360

US$/ton.

1S 2002 (USA)Pig Iron price

+17%

1S 2002 (USA)Scrap price

+37%

1S 2002Price increases:

39% in slabs

10% in bars13% in wire rod16% in rebars

STEEL SECTOR

World

Brazil

GERDAU S.A. CONSOLIDATED

Highlights

Consolidated Figures

Outlook

Capital Markets

BRAZILIAN STEEL SECTOR

Source: IBS

12 12

29,6 26,7 10,8%

9,0 8,6 4,7%

2,9 2,3 28,3%

64,4 66,1 -2,6%

16,5 16,7 -1,1%

105,0 107,6 -2,4%

8th 9th

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

20012002 Var.

7

CRUDE STEEL OUTPUTBrazil - 2002

Source: IBS

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.

In thousand tons

Usiminas/Cosipa

Gerdau/Açominas

Belgo/CST/Acesita (Arcelor)

CSN

Aços Villares

V&M do Brasil

Barra Mansa

8,447

5,999

8,439

5,107

700

500

387

BRAZILIAN CRUDE STEEL OUTPUT PER ECONOMIC GROUP

1Q 2003

Usiminas/Cosipa – 2,083

Arcelor – 2,079

Gerdau – 1,675

CSN – 1,2728

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.

ROLLED PRODUCTS OUTPUTBrazil - 2002

Source: IBS

1Q 2003

Gerdau – 921 K ton. – 49%

Arcelor – 677 K ton. – 36%

9

Belgo/CST/Acesita(Arcelor) – 2,735 k ton.

35.9%

Gerdau/Açominas3,660 K ton. – 48.0%

Barra Mansa – 367 K ton. – 4.8%

Aços Villares – 421 K ton. – 5.5%

V&M do Brasil – 442 K ton. – 5.8%

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.

TONS SHIPPEDBrazil - 2002

Source: IBS

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.

Long Products6.7M tons

42.6%Flat Products

9.1M tons 57.4%

DOMESTIC MARKET

Long Products 1.2M t – 10.2%

Other Products0.5M t – 4.5%

Flat Products 2.2M t – 18.7%

Semi-finished7.8M t – 66.6%

EXPORTS

10

IMPORTS & EXPORTSBrazil - 2002

Source: IBS

200219991998 2000

11,686

9,291

6721,076

9,59910,017

930642

8,741

886

US$/t 250.6

US$/t 245.6

US$/t 283.1US$/t

236.1

US$/t315.0

2001

1Q 2003 - EXPORTS US$ 281.2 / ton

Imports Exports

Exports US$/ton

In thousand metric tons

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.

Dec02 / Dec01

Increases in export prices

Billets +33,2%Slabs +33,7%Bars +7,4%Rebars –4,0%

11

APPARENT CONSUMPTIONBrazil - 2002

Source: IBS

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.

2001 2002

7.0 7.0

9.7 9.5

Long Products

FlatProducts

16.7 16.5

FLAT PRODUCTS 2002

Imports0.4M tons

4.7%Domestic

sales9.1M tons

95.3%

Imports0,2M tons

3.3%

Domestic sales

6.8M tons 96.7%

LONG PRODUCTS 2002

12

STEEL SECTOR

World

Brazil

GERDAU S.A. CONSOLIDATED

Highlights

Consolidated Figures

Outlook

Capital Markets

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).

Highlights

14

Barão de Cocais

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

ABROAD 7.0 MILLION TONS OF CRUDE STEEL PER YEAR

6.8 MILLION TONS OF ROLLED PRODUCTS PER YEAR

SIPAR

LAISA

GERDAU AMERISTEEL

GERDAU S.A.

AÇOMINAS

AZA

Cambridge, ON (Courtice)

Jacksonville, FL

Cartersville, GA

Charlotte, NC

Knoxville, TNJackson, TN

Perth Amboy, NJSayreville, NJ

Whitby, ON

HOGallatin County, KY

MRM Special Sections

Whitby, ON

Gerdau Ameristeel Corp.

Geographical Distribution

Gerdau S.A.

Açominas

Cearense

Açonorte

Usiba

Cosigua Açominas

Guaíra

Piratini

Riograndense

Divinópolis

15

Billets, rebars, merchant bars, profiles,

wire rod, drawn products, nails, specialty

steel.

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

Gerdau S.A. 4.374 4.071

Açominas 3.000 740

South America 430 609

North America 6.567 6.187

TOTAL 14.371 11.607

Rebars, merchant bars, profiles and wire rod

Products

Rebars, merchant bars, profiles, wire rod,

downstream products, special sections

and flat products.

Crude

Steel

Rolled

Products

Capacity & Products2003

In thousand metric tons

16

Output Evolution

Objectives

Strategies

Evolution

Main Events

Gerdau Ameristeel Corp.

Challenges and Forecasts

Growth Average Rate1980 - 2002

CRUDE STEEL 10.4% yearROLLED PRODUCTS 9.6% year

AzaChile1992

Part. Sipar

Argentina1998

MRMCanada1995

Part. Açominas

1997AmeriSteel

USA1999

CrudeSteel

Rolled Products

CearenseGuaíra1982

LaisaUruguay

1981

Hime1985

Barão de Cocais1988

CourticeCanada1989

Usiba1989

Piratini1992

Pains1994

Sipsa Argentina

1997

2002*

Açominas(control)

2002

Co-Steel2002

1980 1984 199619921988 2000

* 100% of Co-Steel

17

STEEL SECTOR

World

Brazil

GERDAU S.A. CONSOLIDATED

Highlights

Consolidated Figures

Outlook

Capital Markets

HIGHLIGHTS1Q2003

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 1,000:1 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.

19

RESULTS1Q2003

20

In R$ million

Net Sales

Gross Profit

EBITDA

Net Income

In R$ / ton

Net Sales

Gross Profit

EBITDA

Net Income

In %

Gross Margin

EBITDA Margin

Net Margin

NORTH SOUTHBRAZIL AMERICA AMERICA TOTAL

1.717,0 1.490,0 119,8 3.326,8

733,1 57,5 40,9 831,5

620,0 47,3 38,4 705,7

287,4 (22,4) 22,3 287,3

1.137 1.174 1.115 1.152

485 45 381 288

410 37 358 244

190 (18) 208 99

42,7% 3,9% 34,1% 25,0%

36,1% 3,2% 32,1% 21,2%

16,7% -1,5% 18,6% 8,6%

Gross Margin Ebitda Margin

Brazil North America South America

R$ millionNet Sales

1Q02 4Q02 1Q03

1,659

2,566

3,327120

1,717

1,490

EbitdaR$ million

1Q02 4Q02 4Q03

412

598706 39

620

47

36%

32%

3%

1Q02 2Q02 3Q02 4Q02 1Q031Q02 2Q02 3Q02 4Q02

43%

34%

4%

1Q03

RESULTS COMPARISON

21

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.

SHIPMENTS

Brazil – Domestic Market

Brazil – Exports

North America

South America

Exports

13.3%

Domestic Market

12.9%

854

657

1,269

107

980

580

1,067

106

876

536

625

84

1Q02 4Q02 1Q03

2,8872,733

2,121

22

In thousand metric tons

Domestic Market

14%

Exports

86%

SEMI-FINISHED PRODUCTS

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.

SALES BY PRODUCT LINE

Common long steelproductsAbroad 43%

Common long steelproducts Brazil 22%

Semi-finished

19%

Specialty steel 3% Drawn products 6%

Flat steel 8%

1st QUARTER 2003

Domestic Market

72%Exports

28%

COMMON LONG STEEL PRODUCTS

SALES BY SEGMENTS

45% Civil Construction, 53% Industry and 2% Agricultural

(Gerdau S.A. non consolidated)

23

OUTPUT

CRUDE STEEL OUTPUT ROLLED PRODUCTS OUTPUT

1Q02 4Q02 1Q03

798

612

71

996

1,084

105

922

1,122

911,481

2,185 2,135

1,675

1Q02 4Q02 1Q03

1,496

662

69

1,691

1,134

97

1,195

852,227

2,922 2,955

South AmericaNorth AmericaBrazil

24

In thousand metric tons

INDEBTEDNESSMarch 2003

In R$ million

Partic. Mar.03 Dec.02

TOTAL DEBT 100% 7.259 7.168

SHORT TERM 63% 4.570 3.708 Local currency 475 481 Foreign currency 1.852 1.639 Companies abroad 2.242 1.588

LONG TERM 37% 2.690 3.460 Local currency 1.121 1.096 Foreign currency 813 898 Companies abroad 756 1.466

CASH & EQUIVALENTS 19% 1.344 1.431 Local currency 306 499 Foreign currency - - Companies abroad 1.038 932

NET DEBT 81% 5.915 5.737

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).

TOTAL DEBTLocal currencyForeign currencyCompanies abroad

FX RATE EXPOSUREForeign currency debt

Swap operationsCash & equiv. in US$

TOTAL HEDGE

HEDGE/ EXPOSURE

100%22%37%41%

2.665

1.981 1.038

3.020

1,1X

25

DEBT BREAKDOWNMarch 2003

Companies abroad

R$ 2,234 million

Other - R$ 285 million

BNDES – R$ 110 million Açominas (in R$) – R$ 114 million

Import loans – R$ 362 million

Pre-export /ACC – R$ 341 million

Açominas (in US$) - R$ 834 million

Working capital (in US$) - R$ 290 million

SHORT TERM – R$ 4.6 billion

Companies abroad

R$ 547 million

Other - R$ 165 million

BNDES – R$ 278 million

Açominas (in R$) – R$ 186 million

Debentures - Brazil– R$ 543 million

Pre-export /ACC – R$ 124 million

Açominas (in US$) - R$ 114 million

Working capital (in US$) - R$ 179 million

Import loans – R$ 28 million

Eurobonds – R$ 317 millionDebentures

Abroad– R$ 209 million

LONG TERM – R$ 2.7 billion

DEBT - Average cost

Brazil - in R$ 18.0%

Brazil - in US$ + FX 6.6%

Companies abroad 5.5%

26

FINANCIAL RATIOS

* EBITDA last 12 months.

Total debt / Total capitalization

Net debt / Total capitalization

Total debt / EBITDA*

Net debt / EBITDA*

Ebitda / Net financial expenses (-MV and FX)

EV / EBITDA*

Mar.03 Dec.02

61,1% 61,8%

56,1% 56,5%

3,0X 3,4X

2,4X 2,7X

6,0X 5,7X

3,9X 4,5X

27

INVESTMENTS

1ST QUARTER 2003 US$ 78 MM

AçominasUS$ 37 mm

GerdauUS$ 17 mm

South AmericaUS$ 2 mm

North AmericaUS$ 22 mm

Stronger investments in the 1Q 2003 due to the new wire rod

rolling mill facility.

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.

2003 FORECAST

US$ 230 MM

28

STEEL SECTOR

World

Brazil

GERDAU S.A. CONSOLIDATED

Highlights

Consolidated Figures

Outlook

Capital Markets

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

30

STEEL SECTOR

World

Brazil

GERDAU S.A. CONSOLIDATED

Highlights

Consolidated Figures

Outlook

Capital Markets

Other investors16%

Foreign Inst. Investors19%Brazilian Inst. Investors

13%

Gerdau Companies52%

SHAREHOLDERS STRUCTUREMarch 2003

Other investors 33%

Foreign Inst. Investors19%

Brazilian Inst. Investors23%

Gerdau ControllingGroup

25%

METALÚRGICA GERDAU S.A.

GERDAU S.A.

32

STOCK BONUS & REVERSE SPLIT

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: Bovespa’s auction to sell the odd lots 06.30.2003: credit in the shareholders’ bank accounts of the odd lot amounts

METALÚRGICA GERDAU S.A.

POSITION

SharesOrdinaryPreferredTOTAL

R$ millionCAPITAL STOCK

R$QUOTES

OppeningClosing

BEFORE ACTUAL

million thousand6,931 13,861

13,861 27,72320,792 41,584

640 1,280

lot unit04.30.03 05.02.03

33.20 66.40 34.01

GERDAU S.A.

POSITION

SharesOrdinaryPreferredTOTAL

R$ millionCAPITAL STOCK

R$QUOTES

OppeningClosing

BEFORE ATCUAL

million thousand39,591 51,46874,528 96,886

114,118 148,354

1,335 1,736

lot unit04.30.03 05.02.03

28.20 35.65 28.89

33

DIVIDEND POLICY

Adjusted Net Income Dividend paid

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

1998

R$ million

METALÚRGICA GERDAU S.A.

2000

17457106

34

1999

16354

2001*

234123

2002

412140

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

34

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

GERDAU S.A.

2001

461164

2000

382125

1999

30698

1998

18159

2002

763266

R$ million

* Higher amount due to the supplementary dividend payment.

LIQUIDITY OF SHARESGerdau S.A.

NYSEBovespa

20001999 2001 LTM*

250

10 423

282

54

82

143

459

700

US$ million

+70%Bovespa

+440%Nyse

-33%Bovespa

+52%Nyse

-3%Bovespa

4%Nyse

2002

500

300

100

+68%Bovespa

+68%Nyse

474

138

*Date: 04.30.2003

Traded Volume

Source: Economática 35

60

100

150

200

250

2001 2002

Base 100

Metalúrgica Gerdau S.A Gerdau S.A Ibovespa

Period: 01.01.2001 a 04.30.2003

Source: Economática

QUOTES EVOLUTION

36

APPRECIATION CHART

Date: 04.30.2003Source: Economática

GGBR4+2%

Ibov-22%

GGBR4+29%

GGBR4+84%

Dow-6%

Ibov-57%

Dow-15% Dow

-21%

Ibov-49%

GOAU4+37%

GOAU4+53%

GOAU4+98%

1 year 3 years 5 years

Met. Gerdau – GOAU4

Gerdau - GGBR4

Ibovespa

Dow Jones

37

PROFITABILITY IN US$

www.gerdau.com.br

inform@gerdau.com.br