Gerdau S A : Investor Presentation - April

INSTITUTIONAL

PRESENTATION

April| 2023

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						USA				CANADÁ
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

This content is Public.

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CORPORATE GOVERNANCE

CORPORATE STRUCTUREINDEXES GGBR

		25%						67%
	MG
		Controlling					75%
							Outstanding
			Shareholders					Shares	IBOVESPA B3	ICO2 B3	IBXL B3
				GOAU3	(Free Float)
				GOAU4	67%%	INDX B3	ITAG B3	IBRX B3
	GSA	33%
		100%
				IGCT B3	IGCX B3	IBRA B3
			Controlling			Outstanding
			Shareholders		GGBR3		Shares	IVBX B3	MLCX B3	IMAT B3
						(Free Float)

GGBR4

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

+120

						YEARS OF
						HISTORY
	GERDAU'S SUSTAINABLE GROWTH
			PROCESS OF DIVESTMENTS
			2014 to 2018
	BEFORE				STRATEGY			AFTER
			R$ 7.4 billion

Operation in 16

countries

R$ 43 billion of

Net Revenue1

SG&A as 6.3%1 of

the Net Revenue

EBITDA Margin:

11.3%1

Financial Cycle:

84 days1

Net Debt/EBITDA:

2.4x1

(1) 2014. (2) 2022

Sales of operations in Spain and Chile

Sales of the mill and coal assets in Colombia

Joint ventures in the Dominican Republic and Colombia

Sales of mills, processing

plants and real estate

assets in the US

Hydropower sales in

Brazil

Sale of Special Steel operations in India

This content is Public.

Focus on	Operation in 9
countries
America
	R$ 82 billion of
Profitability of our	Net Revenue2
operations	SG&A as 2.7%2 of
	the Net Revenue
Focus on our Core	EBITDA Margin:
Business
26.1%2
Commercial and	Financial Cycle:
81 days2
operational strategies
better aligned with	Net Debt/EBITDA:
Culture | People.
0.33x2

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BRAZILSTRENGHTS

BUSINESS MODEL

STRENGHTS

SECTOR/PRODUCTS

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

SOUTH 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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