Gerdau S A : 1Q22 Results Presentation

QUARTERLY RESULTS

1st quarter| 2022

MACRO ENVIRONMENT 1Q22

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International scenario: Russia-Ukraine conflict caused disruptions in supply of commodities, pressures on global supply chain and higher spot prices for raw materials in international market; COVID uncertainties at start of year (brazilian retail market).

USD/mt

USD/mt

USD/mt

1Apr21

14Apr21

27Apr21

10May21

21May21

3Jun21

16Jun21

29Jun21

12Jul21

23Jul21

5Aug21

18Aug21

31Aug21

13Sep21

24Sep21

7Oct21

20Oct21

2Nov21

15Nov21

26Nov21

9Dec21

22Dec21

4Jan22

17Jan22

28Jan22

10Feb22

23Feb22

8Mar22

21Mar22

1Apr21

14Apr21

27Apr21

10May21

21May21

3Jun21

16Jun21

29Jun21

12Jul21

23Jul21

5Aug21

18Aug21

31Aug21

13Sep21

24Sep21

7Oct21

20Oct21

2Nov21

15Nov21

26Nov21

9Dec21

22Dec21

4Jan22

17Jan22

28Jan22

10Feb22

23Feb22

8Mar22

21Mar22

1Apr21

14Apr21

27Apr21

10May21

21May21

3Jun21

16Jun21

29Jun21

12Jul21

23Jul21

5Aug21

18Aug21

31Aug21

13Sep21

24Sep21

7Oct21

20Oct21

2Nov21

15Nov21

26Nov21

9Dec21

22Dec21

4Jan22

17Jan22

28Jan22

10Feb22

23Feb22

8Mar22

21Mar22

Rebar FOB Turkey

Source: S&P Global Commodity Insights

IODEX 62% CFR China

Spot HCC Peak Downs FOB

Australia

USA Scrap Turkey CFRScrap East Asia import CFR

Pig Iron FOB Brazil Southeastern

CONSOLIDATED - 1Q22 HIGHLIGHTS

Shipments (1,000 tonnes)

Net sales (R$ million)

Adjusted EBITDA(1) (R$ million)

3,055

-1% vs 1Q21 -3% vs 4Q21

R$ 20,330

+24% vs 1Q21 -6% vs 4Q21

R$ 5,827

+35% vs 1Q21 -3% vs 4Q21

Adjusted EBITDA Margin(1)

Net income(1) (R$ million)

Safety

28.7%

+2.2 p.p. vs 1Q21 +0.9 p.p. vs 4Q21

• (1) Adjusted by non-recurring items that impacted the result.

  R$ 2,940

  +19 %. vs 1Q21 -16% vs 4Q21

• (2) Number of lost-time injuries for every 1,000,000 hours worked (the lower, the better)

Frequency Rate(2) - 0.57

vs 0.83 in 4Q21

PERFORMANCE BY BUSINESS DIVISION

Technological Updating Whitby Mini-Mill. Goal is to add 200 kt of steel by modernizing mini-mill in Canada Investment(3) ~R$ 300 million.

NORTH AMERICA BD

• ■ Best quarter in the history of the Operation (46% of Gerdau's Consolidated EBITDA);

• ■ Demands for non-residential construction and manufacturing remain strong;

• ■ Leading indicators for non-residential construction and manufacturing sectors improving;

• ■ Logistics and labor challenges. Inflation on the rise.

Shipments of steel (1,000 tonnes)

Net sales (R$ million)

PROJECT

OUTLOOK

• ■ Solid steel demand, specially from the Construction industry;

• ■ Order backlog above historical average (~80 days);

• ■ Instruction issued by U.S. government requiring projects in US$ 1 trillion infrastructure package to use locally produced materials, including steel ("Buy American")

(1) Rolled products. (2) As of March 2022. (3) Approximate CAPEX figures and subject to exchange rate variation