Gerdau S.a. · BMFBOVESPA:GGBR3
Gerdau — Investor Day (October 2025)
47 slides from Gerdau's investor day presentation, Oct 1, 2025
Slide 1: Gerdau Investor Day 2025
GERDAU ~~ Investor Day 2025
Slide 2: Agenda
AGENDA Opening Gustavo Werneck CAPEX and Financial Management Rafael Japur Brazil Maurício Metz North America Chia Wang Q&A Miguel Burnier sustainable mining platform - screening 2
Slide 3: Path to sustainable value creation and key themes in investment thesis
Path to sustainable value creation and the key themes in Gerdau’s investment thesis Safety and high - performance people Steel industry outlook Structural competitiveness and diversification Financial discipline and excellence in capital allocation
Slide 4: Workplace Safety
Workplace Safety Continued focus on people ’ s safety Accident Frequency Rate¹ 0.71 in 2Q25 0.99 1.16 1.28 1.10 1.08 0.87 0.83 0.76 0.70 0.59 0.61 0.71 // 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1T25 2T25 1. Number of Accidents per Million Hours Worked per each Gerdau Employee.
Slide 5: CAPEX
CAPEX Rafael Japur Continous casting – Gerdau Pindamonhangaba (SP)
Slide 6: CAPEX 2025e and 2026e
CAPEX 6 2026e¹ 2.8 3.0 Investments in growth, competitiveness and maintenance 2025e¹ 0.2 Maintenance Coking plants +blast furnaces Competitiveness R$6.0 b² 2.3 1.8 0.6 R$4.7 b² 1 Does not include investments in joint ventures and affiliates. 2 Exposure by currency: 2025 ~60% in US$ and ~40% in R$; 2
Slide 7: Competitiveness CAPEX
Competitiveness CAPEX Investments in business growth and competitiveness 7 NORTH BRAZIL TOTAL AMERICA MAIN PROJECTS (R$ billion) NORTH AMERICA BRAZIL TOTAL STRATEGIC CAPEX (R$ billion) Midlothian Expansion Downstream Scrap Processing in Pindamonhangaba Miguel Burnier Mining Hot - Rolled Coil Expansi
Slide 8: Competitiveness CAPEX execution schedule and financial progress
NORTH AMERICA BRAZIL TOTAL 0.9 0.1 1.2 3.1 0.1 3.6 0.5 0$,1 352-(&76 5 ELOOLRQ EXECUTION SCHEDULE FINANCIAL PROGRESS (R$ billion) Competitiveness CAPEX Of the total estimated for 2026, ~45% corresponds to 3 main projects 1 After investment matures. 150 Midlothian Expansion Scrap Processing in Pi
Slide 9: Maintenance CAPEX 2026-2030
Maintenance CAPEX 2026 - 2030 2027 2028 Maintenance Coking plant 2029 Blast furnaces 2030 5 - year average R$ 3 bi %ODVW IXUQDFH 9 Blast furnace 2 2028 2027 2029 Overhaul 10 years (2038) 10 years (2039) 6HUYLFH OLIH H[WHQVLRQ ~R$2.3 b ~R$1.2 b Disbursement 2026 - 2030 Coking Plants 1 and 2 Until
Slide 10: Self-production of energy in Brazil
Self - production of energy in Brazil : Low - carbon economy and cost - savings 10 Typical energy bill breakdown: 6HOI SURGXFWLRQ EHQHILWV JHQHUDWH DQ DSSUR[LPDWH UHGXFWLRQ LQ ELOOV ࡳ &KDUJHV H[HPSWLRQ SS UHGXFWLRQ ࡳ (QHUJ\ DW FRVW SS UHGXFWLRQ ࡳ 1HWZRUN HFRQRP\ SS UHGXFWLRQ
Slide 11: Financial Management
Rafael Japur 11 FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT
Slide 12: Liquidity and Indebtedness
Liquidity and Indebtedness Financial Management Metrics 2Q25 Net Debt / EBITDA <= 1.5x 0.85x Cash,Equiv. Invest. RCF ¹ Bonds Debentures 1 Global Revolving Credit Facility | 2 Calculated as Adjusted EBITDA - Capex. Bank loans Liquidity 2025 2026 2027 2028 2029 2030 2032 2035 2036 onwards 13.8 AVERAGE
Slide 13: Bonds & Debentures
Bonds & Debentures Local and offshore fixed income portfolio 149 283 155 275 187 133 144 185 243 112 194 111 195 112 67 79 95 162 112 194 223 186 111 201 112 70 79 95 177 200.0 150.0 100.0 50.0 0.0 300.0 268 250.0 Last Analysis of G - Spread volatility during the year¹ (bps) G - spread difference be
Slide 14: Indebtedness leverage consistently below policy
2.72x 4.24x 3.49x 2.98x 1.71x 1.67x 1.25x 0.30x 0.33x 0.40x 0.48x 0.85x 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x 3.50x 4.00x 4.50x 5.00x Indebtedness Leverage¹ consistently below policy over the past 5 years Flexibility in capital allocation Limit for rating maintenance by agencies CURRENT RATINGS:
Slide 15: Return to Shareholders
Return to Shareholders Distribution of dividends above the mandatory minimum and solid implementation of the share buyback program Free Cash Flow Shareholder remuneration Buybacks Dividends Shareholder remuneration (R$ billion) from 1Q18 to 2Q25 ~ 75% of free cash flow generation in the period was a
Slide 16: Share buyback 2025
Share buyback 2025 Share buyback program GGBR Total program: up to 64.5 million shares Financial amount repurchased by September 30, 2025: R$852.5 million GGBR4/GGBR3/GGB (2.8% of outstanding shares) Cancellation of 71.2% of the total repurchased 85% To repurchase 15% Repurchased 100 16 98 98 95 93
Slide 17: Revaluation potential: sum of parties vs. peers
Revaluation potential: sum of parties vs. peers Based on 2Q25 EBITDA (US$ million) EV/EBITDA 2Q25: 5.4X ~38% Median EV/EBITDA 2Q25 of comparables¹ 4.0x 6.6x 4.2x 861 14.6% 45.9% 139 13.6% 7.4% Brazil North America Implicit Enterprise Value Net Debt and Other Implicit Equity Value Market Cap 06/30/20
Slide 18: Brazil
BRAZIL Mauricio Metz Miguel Burnier sustainable mining platform - crushing
Slide 19: Industrial units throughout Brazil
13 industrial units throughout Brazil Regional presence and competitive advantage in customer service Wide portfolio of products and services Operating in more than 30 market segments: construction, industry, retail and others Production: 50% integrated route and 50% mini mills Flexibility and steel
Slide 20: Moderate growth prospects for the segments in which we operate
Moderate growth prospects for the segments in which we operate Sector trend in 2026 Automotive 4 +1.4% ~15% Road implements Heavy Vehicles Light Vehicles Auto parts Industry, Agriculture and Other² ³ ~45% +1.7% Retail Agribusiness Oil & Gas / Naval Wind Energy Solar Energy Energy Transmission Machin
Slide 21: Moderate growth prospects; segments exposed to U.S. tariffs
Moderate growth prospects for the segments in which we operate Automotive 4 +1.4% ~15% Implementos Rodoviários Pesados Leves Industry, Agriculture and Other ² ³ ~45% +1.7% Transmissão de Energia Máquinas / Impl. Agrícolas Óleo & Gás / Naval Energia Eólica Energia Solar Varejo Agro Sector trend in 20
Slide 22: Lack of competitive isonomy and ineffective trade defense measures
Lack of competitive isonomy and ineffective trade defense measures Steel imports could reach all - time high in the Brazilian market for the second consecutive year 0.6 0.4 1.4 0.9 1.6 1.7 1.2 0.9 1.5 1.5 2.6 2.2 2.8 3.1 2.5 1.7 2.2 2.0 4.0 3.1 4.4 4.8 6.3 2019 2020 2021 2022 2023 2024 Inside Gerdau
Slide 23: Key strategic drivers to leverage business transformation
Key strategic drivers to leverage the transformation of our business over upcoming years Strategic optimization of mini mills 23 Flat steel growth Verticalization of Ouro Branco's assets ࡳ 1HZ KRW FRLO UROOLQJ FDSDFLW\ ‡ 7RWDO DYDLODEOH FDSDFLW\ LQ 4 RI W\HDU ‡ 4XDOLW\ JDLQV ‡ 3RWHQWLDO (%,7'$
Slide 24: Key strategic drivers to leverage business transformation
Key strategic drivers to leverage the transformation of our business over upcoming years Strategic optimization of mini mills Flat steel growth Verticalization of Ouro Branco's assets ࡳ 1HZ KRW FRLO UROOLQJ FDSDFLW\ ‡ 7RWDO DYDLODEOH FDSDFLW\ LQ 4 RI W\HDU ‡ 4XDOLW\ JDLQV ‡ 3RWHQWLDO (%,7'$ RI
Slide 25: Miguel Burnier sustainable mining platform
Miguel Burnier sustainable mining platform Transformational investment to position Ouro Branco as Brazil’s most competitive integrated industrial unit 25 IRMA standard, reinforcing its commitment to sustainability and business integrity. &$3(; RI 5 ELOOLRQ EHWZHHQ DQG ï 0WSD of high - g
Slide 26: QR code: sustainable mining platform video
Use your camera or c B li c R k o A n S th e I L QR Code to watch a vídeo on our SUSTAINABLE MINING PLATFORM
Slide 27: Mining: estimated gains
Mining: estimated gains Supply to Ouro Branco unit 3RWHQWLDO (%,7'$ JDLQ\HDU ï ([SHFWHG JDLQ DIWHU LQYHVWPHQW PDWXUHV $VVXPHV D ORQJ WHUP LURQ RUH SULFH RI 86 W &,) &KLQD IRU )H DGMXVWHG IRUIUHLJKW DQG )H TXDOLW\ ~ R$ 1.1 b Cash cost of iron ore basket US$ 55/t US$ 60/t 86
Slide 28: Key strategic drivers to leverage business transformation
Key strategic drivers to leverage the transformation of our business over upcoming years 6WUDWHJLF RSWLPL]DWLRQ RI PLQL PLOOV Flat steel growth Verticalization of Ouro Branco's assets ࡳ 1HZ KRW FRLO UROOLQJ FDSDFLW\ ‡ 7RWDO DYDLODEOH FDSDFLW\ LQ 4 RI W\HDU ‡ 4XDOLW\ JDLQV ‡ 3RWHQWLDO (%,7'$ RI
Slide 29: Flat steel growth
Flat steel growth End - to - end operation improvement, with capacity, quality and competitiveness gains 1HZ FDSDFLW\ DQG TXDOLW\ JDLQV Solid own distribution network and service centers Development of new products and access to new markets
Slide 30: QR code: new hot coil mill video
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Slide 31: Flat steel growth: hot coil rolling capacity expansion
Flat steel growth Expansion of hot coil rolling capacity by 250kt/year 15% Potential EBITDA R$400 M/year¹ 5% 5HYHQXH 3HUIRUPDQFH &RVW UHGXFWLRQ $FKLHYHPHQW RI QRPLQDO FDSDFLW\ LQ 4 NW 161 184 191 4 4 4 H 4Q25e ([SHFWHG JDLQ DIWHU LQYHVWPHQW PDWXUHV Ramp up Evolution of hourly p
Slide 32: Flat steel growth: new capacity, products and services
Flat steel growth New capacity, products and services reinforce our presence in relevant hot coil markets, expanding beyond distribution 3RWHQWLDO PDUNHWV IRU KRW FRLOV 0DFKLQHU\ DQG (TXLSPHQW <HOORZ /LQH +HOLFDO 3LSHV DQG 6DQLWDWLRQ Auto parts *HUGDX VHUYLFH FHQWHUV 2SHUDWHG E\ &RPHUFLDO *HUGDX WK
Slide 33: Key strategic drivers to leverage business transformation
.H\ VWUDWHJLF GULYHUV WR OHYHUDJH WKH WUDQVIRUPDWLRQ RI RXU EXVLQHVV RYHU XSFRPLQJ \HDUV Strategic optimization of mini mills Verticalization of Ouro Branco's assets )ODW VWHHO JURZWK ࡳ 1HZ KRW FRLO UROOLQJ FDSDFLW\ ‡ 7RWDO DYDLODEOH FDSDFLW\ LQ 4 RI W\HDU ‡ 4XDOLW\ JDLQV ‡ 3RWHQWLDO (%,7'$ RI
Slide 34: Strategic optimization of mini mills
Strategic optimization of mini mills &HDUHQVH Caucaia Açonorte *DUJDQWD GD -DUDUDFD DQG 3DUDWLQLQJD ,, 6+3 3KRWRYROWDLF SODQWV %DUUR $OWR DQG $ULQRV %DUmR GH &RFDLV Divinópolis &RVLJXD Araçariguama Pindamonhangaba 0RJL GDV &UX]HV $UDXFiULD 5LRJUDQGHQVH &KDUTXHDGDV Hydroelectric plant Dona Francisca
Slide 35: North America
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Slide 36: Steel tariffs: overview and impact on imports
6WHHO WDULIIV 38 Overview and impact on imports CURRENT TARIFFS IN PLACE 86 ࡳ 6HFWLRQ WDULIIV RQ VWHHO ࡳ 5DWH RI H[FHSW IRU WKH 8. ࡳ 1R H[FOXVLRQV RU TXRWDV ࡳ ï WDULII RQ DXWRPRELOHV DQG DXWRSDUWV ࡳ 6HFWLRQ H[SDQGHG WR GHULYDWLYHV H[SDQVLRQ ð &DQDGD ࡳ 86 WDULII RQ VWHHO UHWDOLDWL
Slide 37: Steel tariffs: Gerdau North America impact
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Slide 38: U.S. steel demand: end-market outlook
U.S. steel demand: end - market outlook Impact on Gerdau Demand drivers Sector 3URGXFW VERY POSITIVE Impacts demand for beams and processed solar piles. One Big Beautiful Bill (OBBB) expected to accelerate renewable energy spending (changes in tax incentives); Renewable energy is still competitive w
Slide 39: Supply balance
Supply balance ࡳ 7KH 1RUWK $PHULFDQ VWHHO LQGXVWU\ KDV HQRXJK FDSDFLW\ WR DEVRUE WKH LPSRUW UHGXFWLRQ WULJJHUHG E\ WKH LPSOHPHQWDWLRQ RI WUDGH WDULIIV ࡳ 1HZ FDSDFLW\ FRQFHQWUDWHG LQ IODW UROO DQG UHEDU GULYHQ E\ WHFKQRORJ\ VKLIWV ¾ )ODW 5ROO VKLIW IURP ,QWHJUDWHG WR ($) ¾ 5HEDU DGYHQW RI PLFUR P
Slide 40: Strong business foundation to serve North America
Strong business foundation to serve North America 2XU WUDQVIRUPDWLRQ MRXUQH\ ࡳ 6DOH RI UHEDU ZLUH URG DVVHWV ࡳ 0RQURH 0, VWDUW 2018 2026+ :HOO SRVLWLRQHG WR PD[LPL]H UHWXUQV LQ 1RUWK $PHULFD GXH WR RXU DVVHW IOH[LELOLW\ DQG JR WR PDUNHW VWUDWHJ\ ࡳ 2SSRUWXQLVWLF H[SDQVLRQ RI FRQ
Slide 41: Well positioned in high-growth end-markets: solar
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Slide 42: Downstream investment: Solar Pile
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Slide 43: Well positioned in high-growth end-markets: data centers
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Slide 44: Midlothian capacity increase
Midlothian capacity increase Higher competitiveness of our largest asset in North America WŽǁĞƌĞĚ ďLJ ŝŶŐ Ξ 'ĞŽEĂŵĞƐ͕ DŝĐƌŽƐŽĨƚ͕ dŽŵdŽŵ 0LGORWKLDQ 5HGXFWLRQ RI LQWHUQDO WUDQVIHUV ,PSURYLQJ SURGXFWLYLW\ LQ PHOW VKRS WR PHHW ELOOHW UHTXLUHPHQWV ZLOO UHGXFH WKH QHHG IRU LQWHUQDO WUDQVIHUV WR IXOILOO SO
Slide 45: Lil
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Slide 46: Gerdau APIMEC Brasil
GERDALU S.A. Selo Ancient: APIMEC Brasil Esmeralda, E925
Slide 47: Thank you!
GERDAU GERDAU Thank you! Investor Day 2025