[Financial Statements](index=2&type=section&id=Financial%20Statements) [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) Gerdau S.A. reported **BRL 77.66 billion** in total assets and **BRL 47.52 billion** in equity as of June 30, 2022, driven by inventory and receivable growth Consolidated Balance Sheet Highlights (in thousands of BRL) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | 36,735,425 | 32,640,477 | | **Total Non-Current Assets** | 40,921,387 | 41,174,136 | | **Total Assets** | **77,656,812** | **73,814,613** | | **Total Current Liabilities** | 16,527,565 | 14,036,814 | | **Total Non-Current Liabilities** | 13,610,911 | 16,962,150 | | **Total Liabilities** | **30,138,476** | **30,998,964** | | **Total Equity** | **47,518,336** | **42,815,649** | | **Total Liabilities and Equity** | **77,656,812** | **73,814,613** | - Key changes in assets include a significant increase in Inventories to **BRL 18.46 billion** from **BRL 16.86 billion** and Trade accounts receivable to **BRL 7.26 billion** from **BRL 5.41 billion**[2](index=2&type=chunk) - Long-term debt decreased from **BRL 10.88 billion** at year-end 2021 to **BRL 8.10 billion** as of June 30, 2022[3](index=3&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net sales increased **22.1%** to **BRL 43.30 billion** for the six months ended June 30, 2022, with net income rising to **BRL 7.21 billion** Income Statement Summary (in thousands of BRL, except EPS) | Metric | Q2 2022 | Q2 2021 | 6 Months 2022 | 6 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | 22,968,442 | 19,130,116 | 43,298,933 | 35,473,100 | | **Gross Profit** | 5,903,931 | 5,414,187 | 11,084,933 | 9,211,096 | | **Net Income** | 4,298,499 | 3,934,477 | 7,238,884 | 6,405,013 | | **Net Income (Parent)** | 4,282,123 | 3,916,551 | 7,207,041 | 6,367,890 | | **Basic EPS (R$)** | 2.51 | 2.30 | 4.23 | 3.74 | | **Diluted EPS (R$)** | 2.50 | 2.29 | 4.20 | 3.72 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income reached **BRL 6.42 billion** for the six months ended June 30, 2022, influenced by net income and negative translation adjustments Comprehensive Income Summary (in thousands of BRL) | Metric | 6 Months 2022 | 6 Months 2021 | | :--- | :--- | :--- | | **Net income for the period** | 7,238,884 | 6,405,013 | | **Other comprehensive income (loss)** | (819,408) | (635,735) | | *Cumulative translation adjustment* | (1,206,242) | (815,629) | | *Unrealized Gains on net investment hedge* | 468,250 | 310,665 | | **Total comprehensive income** | **6,419,476** | **5,769,278** | [Consolidated Statements of Changes in Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Parent company equity increased to **BRL 47.33 billion** by June 30, 2022, driven by net income despite share buybacks and dividends - Equity attributable to the parent company increased by **BRL 4.73 billion** during the first six months of 2022[6](index=6&type=chunk) Key Changes in Equity (in thousands of BRL) - 6 Months 2022 | Description | Amount | | :--- | :--- | | **Balance as of January 1, 2022** | **42,604,282** | | Net income | 7,207,041 | | Other comprehensive income (loss) | (815,284) | | Effects of the share buyback program | (341,367) | | Dividends/interest on equity | (973,542) | | **Balance as of June 30, 2022** | **47,333,225** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased to **BRL 6.18 billion** for the six months ended June 30, 2022, leading to a **BRL 1.62 billion** net increase in cash Cash Flow Summary (in thousands of BRL) | Cash Flow Activity | 6 Months 2022 | 6 Months 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **6,177,675** | **2,119,112** | | **Net cash used in investing activities** | **(1,591,000)** | **(1,069,040)** | | **Net cash used by financing activities** | **(2,903,571)** | **(2,549,466)** | | Increase (Decrease) in cash and cash equivalents | 1,616,099 | (1,590,976) | | Cash and cash equivalents at end of period | 5,776,753 | 3,026,228 | [Notes to the Financial Statements](index=8&type=section&id=Notes%20to%20the%20Financial%20Statements) [Note 1 & 2 - General Information and Accounting Practices](index=8&type=section&id=Note%201%20%26%202%20-%20General%20Information%20and%20Accounting%20Practices) Gerdau S.A., a leading steel producer, prepares its interim financial statements under IAS 34, with no material impact expected from new IFRS standards - The company is a **leading producer of long steel in the Americas** and one of the **largest suppliers of special steel in the world**[8](index=8&type=chunk) - Financial statements are prepared in accordance with **IAS 34, Interim Financial Reporting**[10](index=10&type=chunk) - The company is assessing the impact of new IFRS standards effective in 2023 but does not expect **material impacts**[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) [Note 4, 5, 6 - Liquidity and Working Capital](index=9&type=section&id=Note%204%2C%205%2C%206%20-%20Liquidity%20and%20Working%20Capital) Liquidity improved with cash and equivalents rising to **BRL 5.78 billion**, alongside increases in trade receivables and inventories Key Working Capital Accounts (in thousands of BRL) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | 5,776,753 | 4,160,654 | | Short-term investments | 1,977,982 | 2,626,212 | | Trade accounts receivable | 7,261,198 | 5,414,075 | | Inventories | 18,464,285 | 16,861,488 | [Note 12 & 13 - Debt and Financing](index=13&type=section&id=Note%2012%20%26%2013%20-%20Debt%20and%20Financing) Total loans and financing decreased to **BRL 9.50 billion** with a **5.70%** weighted average interest cost, primarily USD-denominated debt - Total loans and financing decreased from **BRL 11.11 billion** to **BRL 9.50 billion**, with the weighted average interest cost at **5.70% p.a.**[38](index=38&type=chunk) - In Q2 2022, the company redeemed all bonds with maturity in 2024, settling a principal amount of **US$158.7 million**[42](index=42&type=chunk) Debt by Currency (in thousands of BRL) | Currency | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Brazilian Real (R$) | 463,636 | 461,187 | | U.S. Dollar (US$) | 8,752,514 | 10,535,532 | | Other currencies | 282,712 | 113,067 | | **Total** | **9,498,862** | **11,109,786** | [Note 14 - Financial Instruments and Risk Management](index=14&type=section&id=Note%2014%20-%20Financial%20Instruments%20and%20Risk%20Management) The company manages financial risks using derivatives, targeting a **1.0-1.5x** Net Debt/EBITDA ratio, with currency fluctuations impacting income - The company uses **derivative and non-derivative instruments** to hedge against exchange rate and interest rate fluctuations[46](index=46&type=chunk) - Key capital management targets include a Net Debt/EBITDA ratio of **1.0 to 1.5 times** and a gross debt limit of **BRL 12 billion**[53](index=53&type=chunk) Sensitivity Analysis Highlights (Impact on Income) | Assumption | Change | Impact (R$ thousands) | | :--- | :--- | :--- | | Foreign currency (BRL/USD) | 5% | 96,996 | | Interest rate | 10 bps | 41,124 | | Product prices | 1% | 229,684 | | Raw material prices | 1% | 145,971 | - The company designated **US$0.9 billion** of its Ten/Thirty Years Bonds as a hedge of its net investments in foreign subsidiaries[71](index=71&type=chunk) [Note 15 - Provisions and Contingencies](index=21&type=section&id=Note%2015%20-%20Provisions%20and%20Contingencies) Provisions for probable losses total **BRL 1.81 billion**, while unprovisioned contingent liabilities exceed **BRL 13 billion**, mainly from tax disputes Provisions for Probable Losses (in thousands of BRL) | Provision Type | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Tax provisions | 1,311,211 | 1,270,473 | | Labor provisions | 459,223 | 435,803 | | Civil provisions | 39,246 | 34,750 | | **Total** | **1,809,680** | **1,741,026** | - Significant unprovisioned tax contingencies (possible loss) include disputes over goodwill amortization totaling **BRL 8.50 billion** and **BRL 493 million**[89](index=89&type=chunk)[91](index=91&type=chunk) - The company has judicial deposits of **BRL 1.74 billion**, of which **BRL 1.42 billion** relates to a favorable court ruling on the exclusion of ICMS from the PIS/COFINS tax base[103](index=103&type=chunk) [Note 18 - Equity](index=28&type=section&id=Note%2018%20-%20Equity) Total capital was **BRL 19.25 billion** as of June 30, 2022, with a new share buyback program acquiring **14.1 million** preferred shares - A new share buyback program was approved in May 2022 to acquire up to **55 million preferred shares** over 18 months[133](index=133&type=chunk) - As of June 30, 2022, the company had acquired **14,065,700 preferred shares** under the new program for **BRL 341.4 million**[133](index=133&type=chunk) Dividends and Interest on Equity - 2022 | Period | Nature | R$/share | Amount (in thousands BRL) | | :--- | :--- | :--- | :--- | | 1st Quarter | Interest on income | 0.57 | 973,542 | [Note 23 - Segment Reporting](index=33&type=section&id=Note%2023%20-%20Segment%20Reporting) Brazil and North America operations led net sales, with North America generating the highest operating income for the first six months of 2022 Net Sales by Business Segment (6 Months 2022, in thousands of BRL) | Segment | Net Sales | | :--- | :--- | | Brazil Operation | 17,609,961 | | North America Operation | 16,794,996 | | Special Steels Operation | 6,875,956 | | South America Operation | 3,646,839 | Operating Income by Business Segment (6 Months 2022, in thousands of BRL) | Segment | Operating Income* | | :--- | :--- | | North America Operation | 4,977,677 | | Brazil Operation | 3,541,982 | | Special Steels Operation | 1,364,519 | | South America Operation | 1,053,597 | *Before financial income (expenses) and taxes* [Note 25 - Subsequent Events](index=35&type=section&id=Note%2025%20-%20Subsequent%20Events) A dividend payment of **BRL 1.2 billion** (**BRL 0.71 per share**) was approved on August 2, 2022, for payment later that month - A dividend of **BRL 1.2 billion** (**BRL 0.71 per share**) was approved on August 2, 2022, for payment on August 25, 2022[164](index=164&type=chunk)

QUARTERLY RESULTS Shape the future 1 st quarter| 2022 MACRO ENVIRONMENT 1Q22 1 Apr 21 14 Apr 2127 Apr 21 10 May 2121 May 213 Jun 2116 Jun 2129 Jun 2112 Jul 2123 Jul 215 Aug 2118 Aug 2131 Aug 2113 Sep 2124 Sep 217 Oct 2120 Oct 212 Nov 2115 Nov 2126 Nov 219 Dec 2122 Dec 214 Jan 2217 Jan 2228 Jan 2210 Feb 2223 Feb 228 Mar 2221 Mar 22 1 Apr 21 14 Apr 2127 Apr 21 10 May 2121 May 213 Jun 2116 Jun 2129 Jun 2112 Jul 2123 Jul 215 Aug 2118 Aug 2131 Aug 2113 Sep 2124 Sep 217 Oct 2120 Oct 212 Nov 2115 Nov 2126 Nov 219 ...

Gerdau S.A. (NYSE:GGB) Q1 2022 Earnings Conference Call May 5, 2022 1:00 PM ET Company Participants Rodrigo Maia - Investor Relations Gustavo Werneck - Chief Executive Officer Rafael Japur - Chief Financial Officer Conference Call Participants Thiago Lofiego - Bradesco Leonardo Correa - BTG Pactual Carlos de Alba - Morgan Stanley Rafael Shakur - SFA Investments Jonathan Brandt - HSBC Rafael Barcellos - Santander Disclaimer*: This transcript is designed to be used alongside the freely available audio recordi ...

GERDAU S.A. Condensed consolidated interim financial statements as of March 31, 2022 Exhibit 99.1 GERDAU S.A. CONSOLIDATED BALANCE SHEETS In thousands of Brazilian reais (R$) (Unaudited) | | Note | March 31, 2022 | December 31, 2021 | | --- | --- | --- | --- | | CURRENT ASSETS | | | | | Cash and cash equivalents | 4 | 4,895,161 | 4,160,654 | | Short-term investments | 4 | 2,695,636 | 2,626,212 | | Trade accounts receivable | 5 | 6,756,022 | 5,414,075 | | Inventories | 6 | 16,317,038 | 16,861,488 | | Tax cre ...

Gerdau SA (NYSE:GGB) Q4 2021 Earnings Conference Call February 23, 2022 12:00 PM ET Company Participants Rodrigo Maia - IR Gustavo Werneck - CEO Harley Scardoelli - CFO Rafael Japur - CFO Conference Call Participants Rodrigo Maia Good afternoon. This is Rodrigo Maia, I am Investor Relations Head at Gerdau. Welcome you all to our earnings release call for the Fourth Quarter of 2021. Here we have Gustavo Werneck, the CEO of Gerdau; and the CFO, Rafael Japur, who will do the presentation for you. Analysts and ...

Quarterly results GERDAU S.A. 3Q21 CONSOLIDATED INFORMATION São Paulo, October 27, 2021 – Gerdau S.A. (B3: GGBR / NYSE: GGB): announces its results for the third quarter of 2021. The consolidated financial statements of the Company are presented in Brazilian real (R$), in accordance with International Financial Reporting Standards (IFRS) and the accounting practices adopted in Brazil. The information in this report does not include the data of associates and jointly controlled entities, except where stated ...

G E R D A U S . A . C o n d e n s e d c o n s o l i d a t e d i n t e r i m fi n a n c i a l s t a t e m e n t s a s o f S e p t e m b e r 3 0, 2 0 2 1 E x h i b i t 9 9 . 1 GERDAU S.A. CONSOLIDATED BALANCE SHEETS In thousands of Brazilian reais (R$) (Unaudited) | | Note | September 30, 2021 | December 31, 2020 | | --- | --- | --- | --- | | CURRENT ASSETS | | | | | Cash and cash equivalents | 4 | 3,976,077 | 4,617,204 | | Short-term investments | 4 | 4,454,507 | 3,041,143 | | Trade accounts receivable - net ...

I GO GERDAU Shape the future * * * * ＊ *Quarterly results * 2¤ quarter of 2021 EBITDA 663 2,537 3,634 18.6% 36.9% 40.7% 03% 08% 13% 18% 23% 28% 33% 38% 400,0 900,0 1400,0 1900,0 2400,0 2900,0 3400,0 3900,0 4400,0 2Q20 1Q21 2Q21 20.5% North America BD 418 843 1,352 10.5% 14.3% 20.4% 00% 01% 02% 03% 04% 05% 06% 07% 08% 09% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% ,0 50,0 100,0 150,0 200,0 250,0 300,0 350,0 400,0 450,0 500,0 550,0 600,0 650,0 700,0 750,0 800,0 850,0 900,0 950,0 1000,0 1050,0 1100,0 ...

Gerdau SA (NYSE:GGB) Q2 2021 Earnings Conference Call August 4, 2021 1:00 PM ET Company Participants Rodrigo Mala - IR Gustavo Werneck - CEO Harley Scardoelli - CFO Conference Call Participants Rodolfo Angele - JPMorgan Daniel Sasson - Banco Itaú Leonardo Correa - BTG Pactual Rafael Barcellos - Santander Caio Ribeiro - Crédit Suisse Thiago Lofiego - Bradesco Andreas Bokkenheuser - UBS Rodrigo Mala Good afternoon. Good afternoon, everyone. Here is Rodrigo Mala, Investor Relations at Gerdau. Welcome to our co ...

Gerdau SA (NYSE:GGB) Q1 2021 Earnings Conference Call May 5, 2021 1:00 PM ET Company Participants Rodrigo Mala - IR Gustavo Werneck - CEO Harley Scardoelli - CFO Conference Call Participants Carlos De Alba - Morgan Stanley Caio Ribeiro - Crédit Suisse Daniel Sasson - Itaú Bank Thiago Lofiego - Bradesco Leonardo Correa - BTG Pactual Rafael Barcellos - Santander Marcio Farid - JPMorgan Geraldo Mellone Jr. - Bresser Asset Management Marcelo Audi - Cardinal Partners Markus Lesemann - GTI Rodrigo Mala Good after ...