Gerdau S A : Investor Presentation - September

INSTITUTIONAL

PRESENTATION

Miguel Burnier Mine

Dry stacking of iron ore tailings

August | 2023

	Industrial
	presence in
2iron ore	9countries
mines

GERDAU

THE LARGEST BRAZILIAN STEEL PRODUCER

74 Comercial		36,000
Direct and indirect
	employees
Gerdau Stores		worldwide
32 units of	11million
steel production
tons of scrap steel
		in its operations in
Shares		Brazil and abroad
traded on the São Paulo,	250,000 hectares of
New York, and Madrid
Stock Exchanges		forest base, including
	eucalyptus plantations and
		preservation areas

1. BROAD PORTFOLIO

USA

USA

CANADÁ

Sillicon

Valley

DOMINICAN

MEXICO

REPUBLIC

COLOMBIA

PERU

BRAZIL

URUGUAY

ARGENTINA

ENGLAND

Manchester

OPERATING AND COMMERCIAL UNITS

INNOVATION OUTPOSTS

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

BEFORE...

Operation in 16

countries

R$ 43 billion of Net Revenue1

SG&A as 6.3%1 of the Net Revenue

SUSTAINABLE GROWTH

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

+120

YEARS OF

HISTORY

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

EBITDA Margin:

11.3%1

Financial Cycle:

Colombia

Brazil

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

84 days1

Net Debt/EBITDA:

2.4x1

Joint ventures in the	Sale of Special Steel
Dominican Republic	operations in India
and Colombia
	This content is Public.

81 days2
	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

EVOLUTION OF THE EBITDA

MARGIN (BY BD)

21.8%

6M23

BD'S SHARE OF

CONSOLIDATED EBITDA

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