Gerdau S A : Investor Presentation - August

INSTITUTIONAL PRESENTATION

Miguel Burnier Mine

Dry stacking of iron ore tailings

August | 2023

Industrial	32 units of
presence in	steel production
9countries

36,000

74 Comercial	direct
and indirect
Gerdau Stores
employees
	worldwide

OPERATING AND COMMERCIAL UNITS		INNOVATION OUTPOSTS	GERDAU

THE LARGEST BRAZILIAN STEEL PRODUCER

CANADÁENGLAND

Manchester

USA

USA

Sillicon Valley

MEXICODOMINICAN

REPUBLIC

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

2

CORPORATE GOVERNANCE

CORPORATE STRUCTURE

MG 27% Controlling Shareholders

GSA

33%

Controlling

Shareholders

BOARD OF DIRECTORS

	Outstanding	67%
GOAU3	73%
Shares
GOAU4
(Free Float)
GGBR3	Outstanding	67%%

GGBR4	Shares
(Free Float)
GGB

INDEXES GGBR
IBOVESPA B3 ICO2 B3	IBXL B3
INDX B3	ITAG B3	IBRX B3
IGCT B3	IGCX B3	IBRA B3
IVBX B3	MLCX B3	IMAT B3

Guilherme	André Bier Gerdau	Claudio	Gustavo	Claudia	Márcio Hamilton	Alberto
Chagas Gerdau	Johannpeter	Johannpeter	Werneck ¹	Sender	Ferreira	Fernandes
Chairman	Vice	Vice	Member	Independent	Independent	Independent
	President	President		Member	Member	Member
¹ Also CEO of the Company		This content is Public.		3

+120

YEARS OF

HISTORY

GERDAU'S SUSTAINABLE GROWTH

BEFORE...

Operation in 16

countries

R$ 43 billion of Net Revenue1

SG&A as 6.3%1 of the Net Revenue

2014 to 2018

PROCESS OF DIVESTMENTS

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

	STRATEGIC ADVANTAGES
...AFTER
Operation in 9	Focus on America
countries	Profitability of
	our operations
R$ 82 billion of	Focus on our
Net Revenue2
Core Business
SG&A as 2.7%2 of	Commercial and
operational
the Net Revenue
strategies better
	aligned with Culture
	| People.

EBITDA Margin:

11.3%1

Financial Cycle:

Colombia

Brazil

EBITDA Margin:	Competitive advantage
26.1%2
in both Cost and CO2
	emission per ton
Financial Cycle:	Local competition and

84 days1

Net Debt/EBITDA:

2.4x1

Joint ventures in theSale of Special Steel

Dominican Republic	operations in India
and Colombia
	This content is Public.

81 days2	cleaner steel
	ESG in the decision-
Net Debt/EBITDA:	making process
0.33x2	Capital allocation discipline
	4
	(1) 2014 (2) 2022

REACHING HIGHER LEVELS

OF PROFITABILITY

THROUGH A MORE BALANCED PORTFOLIO

BD'S SHARE OF

EVOLUTION OF THE EBITDA	CONSOLIDATED EBITDA
MARGIN (BY BD)

21.8%

6M23

25%

50%

13%

12%

Consolidated

Brazil

14.4%

19.3%

14.5%

2022

2021

2020

31%	46%	13%	10%
56%	27%	8%	9%
53%	24%	9%	14%

North America

Special Steel

South America

28.3%

8.8%

18.2%

16.0%

30.1%

17.9%

2018	6M23
	This content is Public.

2019

2018

2017

2016

2015

2014

46%	28%	14%	12%
45%	26%	19%	10%
43%	18%	26%	13%
35%	26%	21%	17%
35%	35%	18%	12%
55%	18%	18%	9%

5