Gerdau ends 1st quarter with adjusted EBITDA of R$ 4.3 billion

Company continues to deliver solid financial results amid a challenging global scenario, underlining its capacity to transform and innovate

– Adjusted net income of R$ 2.4 billion in the first quarter of 2023.

São Paulo, May 3, 2023 – Gerdau, Brazil’s largest steel producer, ended the first quarter of 2023 with adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of R$ 4.3 billion and adjusted EBITDA margin of 22.9%. Adjusted EBITDA from the North America Business Division was R$ 2.4 billion in the period, with adjusted EBITDA margin of 30.2%.

Adjusted net income reached R$ 2.4 billion between January and March this year. During this
period, Gerdau registered net sales of R$ 18.9 billion, selling 3 million tonnes of steel.

“Despite the challenging global scenario, the period between January and March 2023 was
another quarter of solid results for Gerdau, which registered the second best adjusted EBITDA
for the period, totaling R$ 4.3 billion. This performance reflects stable demand for steel during
the initial months of the year, the resilience of our business models, and the Company’s agile
and innovative mindset centered on the challenges and needs of its customers and other
stakeholders,” said Gustavo Werneck, CEO of Gerdau.

“The strong financial results in the first quarter of 2023 reflect the efforts of our teams in the
constant pursuit of operational excellence. During the period, we observed an important
recovery in physical steel sales and a reduction in costs, which improved margins across all our
businesses compared to the fourth quarter of 2022”, said Rafael Japur, CFO of Gerdau.

Capex reaches R$ 954 million in the 1 st quarter of 2023

During the first quarter of 2023, Gerdau invested R$ 954 million, of which R$ 676 million went
to maintenance and R$ 279 million to expansion and technological upgrades. The Company’s
capex plan for 2023 is estimated at R$ 5 billion, which covers maintenance, expansion and
technological modernization of its operations.

Mining Activities

Since February 2023, Gerdau has been employing the best sustainable mining practices and
most modern technologies to dispose of 100% of the tailings from its iron ore production
process in the state of Minas Gerais using only the dry stacking method.

Dividends will be paid on May 29 and 30, 2023

Gerdau S.A. and Metalúrgica Gerdau S.A. will pay dividends on May 29 and 30, respectively.
Gerdau S.A. will pay R$ 892.0 million as interest on equity (R$ 0.51 per share), while
Metalúrgica Gerdau S.A. will pay R$ 309.8 million, which includes interest on equity of R$
258.2 million (R$ 0.25 per share) and dividends of R$ 51.6 million (R$ 0.05 per share) on the
shareholding position on May 15, 2023.

About Gerdau
With a history spanning 122 years, Gerdau is Brazil’s largest steel producer and
one of the leading producers of long steel in the Americas and special steel in the world. In
Brazil, Gerdau also produces flat steel and iron ore for its own use. It also has a new business
division, Gerdau Next, which fosters entrepreneurship in segments adjacent to the steel
industry. Guided by its purpose of empowering people who build the future, the company
operates in nine countries and has over 36,000 direct and indirect employees. Gerdau is the
largest recycling company in Latin America and uses scrap as an important input: 71% of its
steel is produced from scrap. Every year, Gerdau transforms 11 million tonnes of scrap into a
variety of steel products. The Company is also the world’s largest charcoal producer, with over
250 hectares of planted forests in the state of Minas Gerais. As a result of its sustainable
production matrix, Gerdau currently has one of the industry’s lowest average greenhouse gas
emissions (CO₂e) of 0.89 per tonne of steel, which is about half the global industry average of
1.91 t/CO₂e per tonne of steel (worldsteel). Gerdau’s target is to reduce its carbon emissions
to 0.83 t/CO₂e per tonne of steel by 2031. Gerdau’s shares are listed on the São Paulo (B3),
New York (NYSE) and Madrid (Latibex) stock exchanges.

São Paulo, May 3, 2023
www.gerdau.com.br

For more information contact:

Corporate Communication

Pedro Torres – pedro.torres@gerdau.com.br
Ana Paula Camargo – ana.camargo@gerdau.com.br

Gerdau media relations

Amanda Barbieri | (13) 98181-9009
atendimentogerdau.br@bcw-global.com