Slide 1: 4Q24 Earnings Release
4Q24 Earnings Release February 20, 2025
Slide 2: Disclaimer
DISCLAIMER This document may contain forward-looking statements. These statements are based on estimates and information that may be incorrect or inaccurate and that may not occur. These estimates are also subject to risks, uncertainties, and assumptions that include, among other factors, general ec
Slide 3: Highlights
HIGHLIGHTS PEOPLE’S SAFETY¹ STEEL IMPORTS We recorded 0.70 0.59 all-time best frequency The penetration rate of imported steel in Brazil rate in ended 2024 at 18.5%, and people’s safety remains a major impact on 2023 2024 the domestic market ADJUSTED EBITDA RENEWABLE ENERGY R$10.8B INVESTMENTS With
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS ADJ NET INCOME: EPS: FREE CASH FLOW: R$4.3B R$2.18 R$2.9B Totaling earnings per share Reflecting our competitiveness and of R$0.15 in 4Q24 financial resilience LEVERAGE: CAPEX: 0.48x R$6.2B Low level of leverage, despite more challenging Out of this total, 47% was allocated to r
Slide 5: Outlook
OUTLOOK NORTH 1Q25*: Slight margins upturn BRAZIL 1Q25*: Slight margins slowdown AMERICA ▪ Seasonal improvement in volumes ▪ Tougher market, with expectations of and backlog returning to historic macroeconomic scenario downturn and levels (> 60 days); price pressure; ▪ Spread squeeze (increased scra
Slide 6: Q&A
Q&A To ask questions, indicate your name and institution via the #Raise Hand# icon, wait to be announced to proceed with the question. When announced to ask the question, you must accept the request to activate your microphone and video.
Slide 7: Appendices
Appendices
Slide 8: Workplace Safety
WORKPLACE SAFETY We recorded all-time best results in people’s safety Accident Frequency Rate 0.59 in 2024 1,28 1,16 1,10 1,10 1,08 0,99 0,87 0,83 0,76 0,70 0,59 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Number of Accidents per Million Hours Worked per each Gerdau Employee 8
Slide 9: Brazil BD Quarterly Overview
UTILIZATION Rolled steel 58% Crude Steel 75% BRAZIL BD RATE QUARTERLY OVERVIEW EBITDA EBITDA Shipments Net Sales (1,000 tonnes) (R$ million) (R$ million) Margin ◼ Theimportedsteel penetrationrate reached 18.5% in 2024 and remains the sector's main -0.5% -1.8% -1.4% -3.2% -12.1% -4.8% issue; 1,269 1,
Slide 10: Impacts of Unfair Level of Imports
IMPACTS OF UNFAIR LEVEL OF IMPORTS Imports of Finished Products (Mt) Quota+Tariff System Relevant Regions Even with the quota+tariff system in +8.6% place since June 2024, imports in 2024 grew by +8.6% 9% YoY, reaching a 4.8 historical record; 4.8 4.4 Imports of finished 4.4 27% In 3 years, regions
Slide 11: North America BD Quarterly Overview
UTILIZATION NORTH AMERICA BD Rolled steel 70% Crude steel 65% RATE QUARTERLY OVERVIEW EBITDA EBITDA Shipments Net Sales (1,000 tonnes) (R$ million) (R$ million) Margin ◼ Shipment volume affected by the typical seasonality of the period, in addition to the -6.4% -1.9% -6.6% -3.7% -35.0% -28.5% uncert
Slide 12: Special Steel BD Quarterly Overview
UTILIZATION SPECIAL STEEL BD Rolled steel 46% Crude steel 61% RATE QUARTERLY OVERVIEW Net Sales EBITDA EBITDA Shipments BRAZIL (1,000 tonnes) (R$ million) (R$ million) Margin ◼ Lower sequential sales volume due to seasonality. Over the year, volumes grew -13.1% +0.6% -10.6% -3.5% -16.1% +2.9% signif
Slide 13: South America BD Quarterly Overview
UTILIZATION Rolled steel 58% Crude steel 66% SOUTH AMERICA BD RATE QUARTERLY OVERVIEW EBITDA EBITDA Shipments Net Sales (1,000 tonnes) (R$ million) (R$ million) Margin ARGENTINA +3.0% +17.8% +12.5% -1.3% ◼ Slight upturn in economic activity, -10.2% -39.7% benefiting from investments in primary 271 1
Slide 14: Asset Optimization and Cost-Savings Initiatives Implemented Throughout 2024
ASSET OPTIMIZATION AND COST-SAVINGS INITIATIVES IMPLEMENTED THROUGHOUT 2024 Brazil BD: Other BDs: ~R$1.0 billion/year ~R$0.5 billion/year -150 2024 Initiatives 400 ◼ North America BD -1,000 − Initiatives to control and optimize personnel, maintenance -450 and third-party hiring; − Whitby collective
Slide 15: Highlights of the Period
HIGHLIGHTS OF THE PERIOD FOCUS ON COMPETITIVENESS THROUGH ASSET OPTIMIZATION IN BRAZIL ADJUSTED EBITDA (R$ million) and ADJUSTED EBITDA MARGIN¹ NET SALES² (R$ million) 4Q24 -20.7% 4Q24 -3.2% 3,016 17.4% 17,378 16,822 2,391 -442 -91 -310 259 -405 -138 14.2% 1.156 -86 -3 8 6.657 6.215 751 -171 6.738 1
Slide 16: Cash Flow & Net Cash Variation
CASH FLOW & NET CASH VARIATION CASH FLOW (R$ million) -45 +888 -1,867 2.391 -487 +144 -176 -422 427 4Q24 Adjusted Working Income CAPEX³ Interest JVs Intangibles Other 4Q24 Free EBITDA Capital1 Tax2 Proportional & Leasing Cash Flow EBITDA NET CASH VARIATION (R$ million) 8.832 +2.974 +427 +202 8,277 -
Slide 17: Liquidity & Indebtedness
LIQUIDITY & INDEBTEDNESS CASH, DEBT AND LEVERAGE LIQUIDITY POSITION AND DEBT AMORTIZATION1 (R$ billion) (R$ billion) 0.40x 0.53x 0.40x 0.32x 0.48x 13.7 AVERAGE TERM AVERAGE COST 7.2 BRL: 106.7% CDI Y/Y 12.5 12.5 13.6 5.4 YEARS USD: 5.5% Y/Y 10.9 11.0 6.6 8.3 5.3 5.9 8.8 8.3 5.5 5.9 0.2 2.6 3.1 3.3 5
Slide 18: Return to Shareholders
RETURN TO SHAREHOLDERS DISTRIBUTION OF DIVIDENDS ABOVE THE MANDATORY MINIMUM AND SOLID IMPLEMENTATION OF THE SHARE BUYBACK PROGRAM DIVIDENDS NEW SHARE BUYBACK PROGRAM (R$ million) 69.1% 65.9% GGBR GOAU 34.3% 37.3% 41.2% 7,156 ◼ Program total : up to 63.0 million ◼ Program total: up to 6.0 million 1,
Slide 19: CAPEX
CAPEX STRATEGIC CAPEX 4Q24 | ~R$1.1 billion INVESTMENTS IN BUSINESS GROWTH AND COMPETITIVENESS 2024 | ~R$2.8 billion STRATEGIC CAPEX 2024¹ 53% 47% NORTH AMERICA BRAZIL TOTAL 500 R$6.2 b ~R$ 1.5B 350 9,200 1,750 250 1,550 4,060 3,200 2025¹ 50% 50% 250 400 450 5,140 1,500 R$6.0 b ~R$ 1.6B Roadmap Down
Slide 20: Strategic CAPEX: Main Projects
STRATEGIC CAPEX MAIN PROJECTS ROADMAP MIDLOTHIAN “PHASE 1” ITABIRITOS PROJECT HRC PROJECT PHYSICAL FINANCIAL PHYSICAL FINANCIAL PHYSICAL FINANCIAL ADVANCE ADVANCE ADVANCE ADVANCE ADVANCE ADVANCE 49% 36% 55% 60% 97% 93% INOP (PHASE 1): 2ND SEMESTER 2025 INOP: 2ND SEMESTER 2026 INOP: 1ST QUARTER 2025
Slide 21: Change in Reportable Segments
CHANGE IN REPORTABLE SEGMENTS New configuration of Business Divisions as of 1Q25: Main reasons for the change : • Brazil • The steel industry’s global scenario has • North America led to an increasing regionalization of • South America markets and business dynamics; Before • Improve the presentation
Slide 22: Next Earnings Release 1Q25
inform@gerdau.com | ri.gerdau.com Earnings Videoconference Release 1Q25 April 29, 2025 April 28, 2025 Follow Gerdau on social media.