EARNINGS

RELEASE

4th QUARTER OF 2019

Sustainable House

(Ouro Branco, MG)

Free

Working Capital and

Cash

Flow

FCF

Cash Conversion Cycle

INDEBTEDNESS

Longer debt maturity profile

Debt Leverage and Ratio

Average debt

Average debt

5.5%

7.4 anos

R$ billion

cost

term

Debt amortization schedule

EBITDA

b u s i n e s s d i v i s i o n

BRAZIL

Properties launches - SP

33.2% 29.2%

18.4%

4.1%

-13.4%-13.2%

-38.6%

2014 2015 2016 2017 2018 2019 2020 e

Properties sales- SP

20.0% 22.5%

8.6% 9%

-8.9%

-13.6%

-31.0%

2014 2015 2016 2017 2018 2019 2020 e

Source: Tendências

b u s i n e s s d i v i s i o n

SPECIAL STEEL BRAZIL

Vehicles Production

Vehicles Sales

thousand

thousand

3,713

2,944 3,158

3,802

3,4183,403

3,146

3,633

3,767

3,498

2,699

2,881

2,787

3,050

2,429

2,569

2,156

2,566

2,0512,240

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 e

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 e

Annual production of

Annual production of

Annual sale of

Annual sale of

light vehicles

heavy vehicles

light vehicles

heavy vehicles

Source: Anfavea

b u s i n e s s d i v i s i o n

NORTH AMERICA

l o n g s t e e l

m e t a l s p r e a d

US$ per short ton

502

344 351

443

407

b u s i n e s s d i v i s i o n

SPECIAL STEEL NORTH AMERICA

Light vehicle production

thousand

17,800

17,500

17,100

17,00017,200

17,200

17,300

17,000

16,800

16,900

16,600

16,400

2015 2016 2017 2018 2019 2020 e 2021e 2022 e 2023 e 2024 e 2025 e 2026 e

Annual production of light vehicles

Source: IHS Market

PIB outlook for 2020

+3.8%

+3.6% -1.3%

Peru

Colombia

Argentina

b u s i n e s s d i v i s i o n

Steel demand

(million of tonnes)

45.5

SOUTH AMERICA

Steel consumption should accompany economic growth

43.9 43.8

South and Central America

2018

2019 e

2020 e

Source: Banco Central do Peru, FMI e Worldsteel

CAPEX

R$ 7 billion

2,599

2,637

in 3 years

874

912

(R$ million)

1,746

525

562

593

424

797

1,163

1,132

2019

2020e

2021e

Technological expansion and update

Ouro Branco Maintenance

General Maintenance

*Estimated Information

Mainly investments

on going

Capacity Increase

Location

Value

Additional Capacity (1.000

Start-up date

(R$ million)

tonnes)

Beams and Merchant Bar

North America

456

530

2021

SBQ

Pindamonhangaba-SP

532

400

2021

SBQ

Monroe-Michigan

266

160

2020

F U T U R E

Sustainability

Creating value for

costumers

Operational profitability

Free Cash Flow

Digital Transformation

SAVE THE DATE | MAY, 6

EARNINGS

RELEASE

1st QUARTER OF 2020

Sustainable house

(Ouro Branco, MG)

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Gerdau SA published this content on 19 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 February 2020 16:04:07 UTC