Gerdau ends 2022 making history by recording highest ever annual net sales


The Company registered the highest net sales in its history last year: R$ 82.4 billion, an increase of 5% from 2021.

– Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) reached R$ 21.5 billion in 2022, with EBITDA margin of 26.1%.

São Paulo, March 1, 2023 – Gerdau, Brazil’s largest steel producer, ended 2022 with the
highest net sales in its history: R$ 82.4 billion. In 2022, the Company’s adjusted EBITDA was R$
21.5 billion, EBITDA margin was 26.1%, and net income was R$ 11.6 billion. Meanwhile, steel
shipments totaled 11.9 million tonnes.

In the fourth quarter of 2022, the Company posted adjusted EBITDA of R$ 3.6 billion,
representing adjusted EBITDA margin of 20.2%. Adjusted net income totaled R$ 1.3 billion in
4Q22, net sales amounted to R$ 18 billion and steel shipments reached 2.7 million tonnes.

“2022 was yet another extraordinary year for Gerdau, which reported its best net sales ever
and second best annual adjusted EBITDA (R$ 21.5 billion), underscoring its ability to transform
itself and continue to share value with its clients and other stakeholders, while offering the
market increasingly innovative and sustainable products and services,” said Gustavo Werneck,
CEO of Gerdau.

“The solid financial result in 2022, marked by strong adjusted EBITDA registered in the year,
contributed to record free cash flow of R$ 10.5 billion. I also wish to highlight the dividend
payments and share buyback, which were records in 2022, underlining our commitment to
create increasingly more value for our investors,” said Rafael Japur, CFO of Gerdau.

Investments reach R$ 4.3 billion in 2022

In 2022, Gerdau invested R$ 4.3 billion, of which R$ 2.6 billion went to maintenance and R$ 1.7
billion to expansion projects and technological upgrade. Of the total invested in 2022, R$ 640
million was allocated to expanding the forest assets, as well as upgrading and streamlining
environmental controls and technologies, all of which resulted in energy efficiency and lower
greenhouse gas emissions.

For 2023, the Company’s new investment plan is estimated at R$ 5 billion, including Capex on
maintenance, expansion and technological modernization of the operations.

Dividends will be paid on March 23 and 24, 2023

Gerdau S.A. and Metalúrgica Gerdau S.A. will pay dividends on March 23 and 24, 2023,
respectively. Gerdau S.A. will pay R$ 332.7 million (R$ 0.20 per share) and Metalúrgica Gerdau
S.A. will pay R$ 103.3 million (R$ 0.10 per share) to shareholders of record on March 14, 2023.
In 2022, R$ 6.1 billion was distributed to the shareholders of Gerdau S.A. (R$ 3.63 per share)
and R$ 1.3 billion to the shareholders of Metalúrgica Gerdau S.A. (R$ 1.25 per share),
representing total earnings on the year’s adjusted net income of 58.7% and 38.8%,

Shareholder returns

Until December 31, 2022, Gerdau S.A. and Metalúrgica Gerdau S.A. had repurchased
44,564,000 GGBR4 shares and 48,279,200 GOAU4 shares, respectively. With this, the
companies have completed 81% and 70%, respectively, of the share buyback programs
approved on May 4, 2022. Considering the amounts invested in share repurchases and to be
paid as dividends in 2022, the companies will have distributed R$ 7.2 billion and R$ 1.8 billion,
respectively, to their shareholders during the period, reaffirming both Gerdau’s commitment
to create value for shareholders and the confidence in its capacity to generate cash and deliver
solid results over time.


Gerdau obtained the B Corp certification for its second business division. Siderperu, the
Company’s steel production division in Peru, joins Gerdau Summit, its joint venture that
supplies parts for wind power generation, as the first two steel producers worldwide to receive
the B Corp certification.

The new certification reflects Gerdau’s commitment to the B Movement Builders program and
its ambition to get all its operations certified by 2025. As part of its sustainability agenda, the
certification recognizes that Brazil’s largest steel producer follows good sustainability practices
and effectively connects its business to its purpose of empowering people to build the future
and leave a legacy for society.

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

For more information contact:

Corporate Communication

Pedro Torres –
Ana Paula Camargo –

Gerdau media relations

Amanda Barbieri | (13) 98181-9009