GERDAU S.A. INSTITUTIONAL PRESENTATION
June | 2022
BUSINESS MODEL STRENGHTS
STRENGHTS
BRAZIL
- Integration of production routes.
- Presence in different segments of construction and industry.
NORTH AMERICA
- Higher added value products and profitability.
- On-stop-shopconcept.
- Commercial strategy review.
SPECIAL STEEL
- Presence in Brazil and US.
■ Light and heavy vehicles and O&G segments.
SECTOR/PRODUCTS
■ Civil construction 41% | ■ Rebar 24% | |
■ Industry 35% (flat steel) | ■ Flat steel 36% | |
■ Industry 24% (long steel) | ■ Drawn 12% | |
■ Distribution 52% | ■ Merchant bar 53% | |
■ Construction 23% | ■ Beams 36% | |
■ Industry 25% | ■ Rebar 11% | |
■ Brazil: | ■ | US: |
■ Automotive 80% | ■ Automotive 70% | |
■ Industry (energy) 20% | ■ Industry (energy) 30% |
- Local competition and cleaner steel.
- 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.
This content is Public.
MACRO ENVIRONMENT 1Q22
- 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).
Turkish rebar | End of 1st | quarter | st | quarter | |||||
Raw Materials | End of 1 | ||||||||
960 | |||||||||
Russia-Ukraine conflict | Russia-Ukraine conflict | ||||||||
t | 456 | 515 | |||||||
t | 1 year ago | 1 year ago | |||||||
USD/m | 740 | USD/m | |||||||
625 | 167 | 138 | 158 | ||||||
114 | |||||||||
1 Apr 21 14 Apr 21 27 Apr 21 10 May 21 21 May 21 3 Jun 21 16 Jun 21 29 Jun 21 12 Jul 21 23 Jul 21 5 Aug 21 18 Aug 21 31 Aug 21 13 Sep 21 24 Sep 21 7 Oct 21 20 Oct 21 2 Nov 21 15 Nov 21 26 Nov 21 9 Dec 21 22 Dec 21 4 Jan 22 17 Jan 22 28 Jan 22 10 Feb 22 23 Feb 22 8 Mar 22 21 Mar 22 | 1 Apr 21 14 Apr 21 27 Apr 21 10 May 21 21 May 21 | 3 Jun 21 16 Jun 21 29 Jun 21 12 Jul 21 23 Jul 21 5 Aug 21 18 Aug 21 31 Aug 21 13 Sep 21 24 Sep 21 7 Oct 21 20 Oct 21 2 Nov 21 15 Nov 21 26 Nov 21 9 Dec 21 22 Dec 21 4 Jan 22 17 Jan 22 28 Jan 22 10 Feb 22 23 Feb 22 | 8 Mar 22 | 21 Mar 22 | |||||
Rebar FOB Turkey | IODEX 62% CFR China |
Spot HCC Peak Downs FOB
Australia
Source: S&P Global Commodity Insights
End of 1st quarter
Scrap & Pig iron
950 | |||
Russia-Ukraine conflict | |||
t | |||
USD/m | 1 year ago | 570 | 650 |
525 | 543 | 654 | |
442 | 507 | ||
430 | |||
1 Apr 21 14 Apr 21 27 Apr 21 10 May 21 21 May 21 3 Jun 21 16 Jun 21 29 Jun 21 12 Jul 21 23 Jul 21 5 Aug 21 18 Aug 21 31 Aug 21 13 Sep 21 24 Sep 21 7 Oct 21 | 20 Oct 21 2 Nov 21 15 Nov 21 26 Nov 21 9 Dec 21 22 Dec 21 4 Jan 22 17 Jan 22 28 Jan 22 10 Feb 22 23 Feb 22 8 Mar 22 | 21 Mar 22 |
USA Scrap Turkey CFR
Scrap East Asia import CFR
Pig Iron FOB Brazil Southeastern
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CONSOLIDATED - 1Q22 HIGHLIGHTS
Shipments (1,000 tonnes) | Net sales (R$ million) | Adjusted EBITDA(1) (R$ million) | ||||
3,055
-1% vs 1Q21 -3% vs 4Q21
Adjusted EBITDA Margin(1)
28.7%
+2.2 p.p. vs 1Q21
+0.9 p.p. vs 4Q21
R$ 20,330
+24% vs 1Q21
-6% vs 4Q21
Net income(R$ million)
R$ 2,940
+19 %. vs 1Q21 -16% vs 4Q21
R$ 5,827
+35% vs 1Q21
-3% vs 4Q21
Safety
Frequency Rate(2) - 0.57
vs 0.83 in 4Q21
- Adjusted by non-recurring items that impacted the result.
- Number of lost-time injuries for every 1,000,000 hours worked (the lower, the better)
This content is Public.
PERFORMANCE BY BUSINESS DIVISION
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Disclaimer
Gerdau SA published this content on 28 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 01:56:05 UTC.
