Gerdau S A : Apresentação Institucional - Outubro*

INSTITUTIONAL

PRESENTATION

November| 2022

GERDAU

THE LARGEST BRAZILIAN STEEL PRODUCER

Industrial	32units of
presence in	steel production
9countries
75Comercial	36,000
direct
Gerdau stores	and indirect
	employees
	worldwide

						USA				CANADÁ
USA
Sillicon		Valley			DOMINICAN
MEXICO
			REPUBLIC
COLOMBIA

ENGLAND Manchester

Shares

traded on the São Paulo, New York, and Madrid

Stock Exchanges

250,000 hectares of forest base, including eucalyptus plantations and preservation areas

11million

tons of scrap steel in its operations in Brazil and abroad

2 iron ore

mines

PERU							BRAZIL
						URUGUAY
				ARGENTINA

INNOVATION OUTPOSTS

OPERATING AND COMMERCIAL UNITS

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CORPORATE GOVERNANCE

CORPORATE STRUCTURE

INDEXES GGBR

33%

Controlling

67%

Outstanding

IBOVESPA B3

ICO2 B3

IBXL B3

Shares

Shareholders

(Free Float)

INDX B3

ITAG B3

IBRX B3

GGBR3

IGCT B3

IGCX B3

IBRA B3

GGBR4

IVBX B3

MLCX B3

IMAT B3

GGB

BOARD OF DIRECTORS

Guilherme

André Bier

Claudio

Gustavo

Claudia

Augusto

Alberto

Gerdau

Brauna

Chagas Gerdau

Johannpeter

Werneck ¹

Sender

Fernandes

Johannpeter

Pinheiro

Chairman

Vice

Vice

Member

Independent

Independent

Independent

President

President

Member

Member

Member

¹ Also CEO of the Company	3

+120

YEARS OF

HISTORY

GERDAU'S SUSTAINABLE GROWTH

BEFORE

Operation in 16

countries

R$ 10.8 billion of

Net Revenue1

SG&A as 6.3%1 of the Net Revenue

EBITDA Margin:

14.2%1

Financial Cycle:

84 days1

Net Debt/EBITDA:

2.4x1

PROCESS OF DIVESTMENTS

2014 to 2018

R$ 7.4 billion

Sales of operations	Sales of mills, processing
in Spain and Chile	plants and real estate
	assets in the US
Sales of the mill	Hydropower sales in
and coal assets in
Brazil
Colombia
Joint ventures in the	Sale of Special Steel
Dominican Republic	operations in India
and Colombia

	STRATEGY		AFTER
	Focus on	Operation in 9
	countries
	America
			R$ 21 billion of
	Profitability of our	Net Revenue2
	operations	SG&A as 2.8%2 of
			the Net Revenue
	Focus on our Core	EBITDA Margin:
	Business
	25.4%2
	Commercial and	Financial Cycle:
	70 days2
operational strategies
	better aligned with	Net Debt/EBITDA:
	Culture | People.
	0.16x2

(1) 2014. (2) 3Q22

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BRAZILSTRENGHTS

BUSINESS MODEL

STRENGHTS

SECTOR/PRODUCTS

• Integration of production routes
• Presence in different segments of construction and industry

LATIN AMERICA

■ Presence in different segments of construction, featuring infrastructure, agriculture sectors and industry

NORTH AMERICA

• Higher added value products and profitability
• One-stop-shopconcept

■ Commercial strategy review

SPECIAL STEEL

• Presence in Brazil and US

■ Light and heavy vehicles and O&G segments

• Distribution ~ 50%
• Industry ~ 30%
• Construction ~ 20%
• Distribution ~ 60%
• Industry ~ 30%
• Construction ~ 10%
• Distribution ~ 50%
• Construction ~ 25%
• Manufacturing ~ 25%

Brazil:

• Automotive ~ 80%
• Non automotive ~ 20%

• Long steel ~ 55%
• Flat steel ~ 30%
• Semi finished ~ 15%
• Long steel 100%
• Structurals ~ 45%
• Merchants/ Other Long Products ~ 45%
• Rebar ~ 10%

US:

• Automotive ~ 80%
• Non automotive ~20%

Local competition and cleaner steel.

Broad product portfolio, geographic diversification, proximity to raw materials and clients.

Competitive advantage in both Cost and CO2 emission per ton.

ESG in the decision-making process.

Focus on Americas, with higher added value products.

Capital allocation discipline.

Cultural and digital transformation.

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