Gerdau S A : Investor Presentation - August

INSTITUTIONAL

PRESENTATION

August | 2022

GERDAU

THE LARGEST BRAZILIAN STEEL PRODUCER

Industrial	32
steel
presence in
production
9countries
units

75Comercial	36,000
direct
Gerdau stores	and indirect
	employees
	worldwide

CANADÁ

USA

USA

Sillicon

Valley

DOMINICAN

MEXICO

REPUBLIC

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

2iron ore mines

COLOMBIA
PERU								BRAZIL
								URUGUAY
						ARGENTINA

INNOVATION OUTPOSTS

OPERATING AND COMMERCIAL UNITS

This content is Public.

CORPORATE GOVERNANCE

CORPORATE STRUCTURE
			67%			INDEXES GGBR
33%	Controlling	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
				GGB				IVBX B3	MLCX B3	IMAT B3
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

GERDAU'S SUSTAINABLE GROWTH

PROCESS OF DIVESTMENTS

+120

YEARS OF HISTORY

BEFORE

Operation in 30

countries

R$ 10.4 billion of

Net Revenue1

SG&A as 6.5%1 of the Net Revenue

EBITDA Margin:

11.2%1

Financial Cycle:

85 days1

Net Debt/EBITDA:

2.41x1

2014/15 2016 2017 2018

R$ 1.1	R$ 1.3	R$ 0.8	R$ 4.2
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$ 23 billion of
	Profitability of our	Net Revenue2
	operations	SG&A as 2.2%2 of
			the Net Revenue
	Focus on our Core	EBITDA Margin:
	Business
	29.1%2
	Commercial and	Financial Cycle:
	64 days2
operational strategies
	better aligned with	Net Debt/EBITDA:
	Culture | People.
	0.18x2

(1) 2Q14. (2) 2Q22

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BUSINESS MODEL STRENGHTS

BRAZIL/

LATIN AMERICA

STRENGHTS

SECTOR/PRODUCTS

NORTH AMERICA

SPECIAL STEEL

• Integration of production routes.
• Presence in different segments of construction and industry.
• Higher added value products and profitability.
• On-stop-shopconcept.

■ Commercial strategy review.

• Presence in Brazil and US.

■ Light and heavy vehicles and O&G segments.

• Civil construction 41%
• Industry 35% (flat steel)
• Industry 24% (long steel)
• Distribution 52%
• Construction 23%
• Industry 25%
• Brazil:
• • Automotive 80%
  • Industry (energy) 20%

• • Rebar 24%
  • Flat steel 36%
  • Drawn 12%
  • Others 28%
  • Merchant bar 53%
  • Beams 36%
  • Rebar 11%
• US:
• • Automotive 70%
  • Industry (energy) 30%

Local competition and cleaner steel.

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

Cost competitivity and CO2 emission.

ESG in the decision-making process.

Focus on Americas with higher added value products.

Capital allocation discipline.

Cultural and digital transformation.