2015.05 - GERDAU DAY NYSE - GERDAU DAY NYSE - final.pdf · providers is a top priority for Gerdau Accident frequency rate 1 1- Lost-time accident (LTA) frequency rates per million

GERDAU DAY NYSE

June, 2015

Speakers: Andre B. Gerdau Johannpeter

Chief Executive Officer

Agenda

2

Andre Pires de Oliveira Dias

Chief Financial Officer

�SECTOR

�CORPORATE OVERVIEW AND STRATEGY

�NORTH AMERICA BUSINESS OPERATION

�PERFORMANCE AND OUTLOOK

�CLOSING REMARKS

Peter Campo

President, Long Steel North America Operation

Speakers:

Agenda

3

�SECTOR




�CLOSING REMARKS

Peter Campo


Andre B. Gerdau Johannpeter




Worldsteel projections revised downward

Source: worldsteel – SRO April 2015.

Apparent steel use

million tonnes growth rates

2014 2015 (f) 2016 (f) 15/14 16/15World 1,537.3 1,544.4 1,565.5 0.5% 1.4%

European Union (28) 146.8 149.9 154.1 2.1% 2.8%

NAFTA 144.6 143.3 145.1 -0.9% 1.3%

Central & South America 48.1 46.5 48.1 -3.3% 3.4%

Asia & Oceania 1,015.6 1,021.5 1,030.4 0.6% 0.9%

China 710.8 707.2 703.7 -0.5% -0.5%Others 182.2 183.2 187.8 0.5% 2.5%

4

5

Source: worldsteel.*forecast

Excess capacity grew, although it seems to be stabilizing

Capacity vs. Apparent Steel Use

2007 2008 2009 2010 2011 2012 2013 2014Jan. - Apr.

2015World steel capacity utilization rate

89.4% 81.6% 70.8% 77.2% 79.3% 77.9% 77.3% 75.5% 71.8%

Source: worldsteel; SBB World Steel Price (Jan 2000 = 100).

6

Global overcapacity continues to affect industry profitability

7

China: production levels are stabilizing at a high level

� Finished Steel Exports Jan-Apr.15 :

34.3 million tonnes, growth of 32.7%*.

� Finished Steel Imports Jan-Apr.15 :

4.4 million tonnes, decrease of 9.5%*.

� Steel Production Jan-Apr.15 :

200 million tonnes, 0.3%* lower.Crude Steel Production(million tonnes)

Source: worldsteel e Platts.* In relation to the same period last year.

6462

66 66 6765 65 66 65 65

61 62

69

62

70 6970 69 68 69 68 68

63

68 69

62

70 6912%

11%

6%

8%

10%

8%

5%

12%12%

10%

3%

9%

7%

0%

6%

4%5%

7%

5%4%

4% 4% 4%

10%

0% 0%-1%

0%

Jan-

13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep

-13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb

-14

Mar

-14

Apr

-14

May

-14

Jun-

14

Jul-1

4

Aug

-14

Sep

-14

Oct

-14

Nov

-14

Dec

-14

Jan-

15

Feb

-15

Mar

-15

Apr

-15

China ∆% over the same period of last year

Speakers: Andre B. Gerdau Johannpeter

CEO

Agenda

8


CFO and IR Director

�SECTOR




�CLOSING REMARKS

Peter Campo


9

Steel industry faces challenges in 2015

Current challengesare transforming Gerdau

CAPEX discipline

Asset optimization and divestment of non-core assets

Costs and SG&A reduction

Modernizing the culture, structure and leadership

Main initiatives:

1

2

3

4

1,400

671735

1,159

1,605

1,202

960

209

2008 2009 2010 2011 2012 2013 2014 2015e

10

Continuing to be selective in capital expenditures

CAPEX disbursement (US$ million)

700

e: expected.* Refers to 1Q2015

1

*

Expected approval for 2015: US$ 381 millionExpected approval for 2015: US$ 381 million

11

Adjusting Gerdau’s operations to ensure the sustainability of the business 2

Jun.14 Sep.14 Oct.142014 Jul.14 2015

Sales of real state and property

Sale of a railway in US: US$ 12.4 million

Operating asset optimization: Sorocaba: 23kt (rolled)

Sale of 50% stake in Gallatin: US$ 385 million

Sale of Forjanor: US$ 28 million

Merger with Metaldom – Dominican Republic

Nov.14

Operating assets optimization:Água Funda (SP): 104 kt (rolled);Guaíra (PR): 541kt (crude), 166kt (rolled);Usiba (BA): 495kt (crude).

Operating asset optimization:Colombia: 300 kt (crude), 186 kt (rolled) and closing of 4 fabshops.

Operating asset optimization:Mogi das Cruzes: 375 kt (crude)Pinda: 200 kt (crude), 500 kt (rolled).

Total crude steel: 1.911 ktTotal rolled steel: 979 kt

Operating asset optimization: Mexico: 150kt* (crude)

* Refers to a joint venture in Mexico (Corsa), capacity is not included in Gerdau’s total capacity.

1,620

1,072

1,340 1,434

1,264 1,209

299 229

1,158

892

7.1%8.1% 7.5%

6.8% 6.5% 6.6% 6.4%

2008 2009 2010 2011 2012 2013 2014 2015 (f)

SG&A (US$) 1st Quarter SG&A / Net Sales (%)

Delivering reduction on costs and SG&A

12

SG&A (US$ million)

3

-23%

4

Management Systems Evolution

1980 1981 1984 1988 1989 1990 1993 1995 1996 1997 1998 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

FA Module

Integrated Policy

Technical Assistance with

BadischeStandardization

Technical assistance with Japan

QCCs

PIP

Business Cells

EMSEnvironmental Management

System

Suggestions Program

Rec.of Work Groups

Working Cells

GPP Process Management

Safety in Action

PNQPiratini

Strategic Map

Evolution of Working Cells

Self -Management

1st Gerdau QIS Contest

Seminarwith Falconi

Training in Quality

GSPs (problem solution groups)

Software

PNQ Riograndense

Knowledge Managemen

t (KM)

Certif. IntegradaCearense

GMR Basis Integration

EBITDA Deployment

Innovation Management –

Knowledge : Definition of the

Innovation management

model

2013

Definition of GAPS

for all processes

Innovation management –

Practice: Innovation Pilots

Projects

13

Modernizing the culture, structure and leadership

14

4

Wide range of products

Brazil North America Special Steel

Ready-to-use products

►Housing

► Infrastructure

► Industry and commercial buildings

►Agricultural

►Exports of slabs, blooms and billets

► Infrastructure

►Non-residential

► Industrial

►Automotive

►Shipbuilding

►Energy

Billets, blooms& slabs

Merchant bars

Rebars

Fabricated steel

Heavystructural shapes

Wire-rodWires

NailsSBQ

Latin America

►Housing

► Infrastructure

► Industry and commercial buildings

Innovative initiatives to enhance the preference of our customers

HRC

Iron Ore

►Raw material for

the steel

industry – focus

on self

sufficiency.

Iron Ore

15

32% of Net Sales

49% of EBITDA

33% of Net Sales

21% of EBITDA

13% of Net Sales

9% of EBITDA

20% of Net Sales

20% of EBITDA

Note: Net Sales and EBITDA LTM as of march, 31.

2% of Net Sales

1% of EBITDA

Global player with dominant regional presence

16

► Relevant level of direct purchase and captive scrap (50%).

► 6.3 billion tonnes of iron ore resources:

• Self-sufficiency at Ouro Branco mill.

► Coke unit and coking coal mine in Colombia.

► Partial level of energy self generation:

• 40% in Brazil (3 HPPs and thermal power generation in Ouro Branco).

Upstream

Vertically integrated operations – flexible production base

► Focus of Gerdau’s operations.

► Low cost structure.

► Mini-mills and integrated mills key to low cost strategy.

► Flexible cost structure:• 25% fixed costs

► Latest generation technology

Steel

► Reinforcing steel fabrication facilities (Fab Shops).

► Drawn products.

► Multi-product distribution network.

► Tailor-made added-value approach:• ~40% of sales to civil

construction.

Downstream

17

18

Latest generation technology – investments in Mexico

► Construction of a new mill to produce structural shapes, in partnership with Gerdau Corsa

(joint venture).

► Annual installed capacity of 1 million tonnes of crude steel and 700k tonnes of rolled steel.

Construction of the new plant in Ciudad Sahagún in the state of Hidalgo.

► Hot testing in the melt shop

started in the end of 2014 and the

rolling mil started operating on

May 2015.

► Project will meet demand from the

construction and manufacturing

industries in Mexico and other

NAFTA countries.

19

Latest generation technology – special steel rolling mil in Monroe

► New rolling mil with annual capacity of 300k tonnes started operations at the end of 2014.

► New reheating furnace, that will increase productivity at the mil, begun operations in the

1st quarter of 2015.

Reheating furnace. Cooling bed.

�Civil Works for plate

rolling mill completed

3Q

2013

2Q

2015

2Q

2016

4Q

2016

� Plate Machinery Installation

complete

� Capacity: 1,100 mt

Timeline

Latest generation technology - flat products project

� Start of HRC rolling mill

� Start of Plate rolling mill� Capacity: 800 kt

20

5

37 23 27

59

83 81

116

68

5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

5.6

1.5

4.4

Capacity

Plants from partners

OTP I

OTP II

21

Iron ore project – focus on self sufficiency

CAPEX (US$ million)

11.5

► Self sufficiency brings cost benefits for the Ouro Branco mill:

� Annual iron ore need: 6.5 MMt*.

► Capacity expansion project on hold.

► No long-term commitment (volumes and logistics).

CAPACITY (million t)

CAPEX + Mine Acquisition: US$ 45/t

* Considering 90% capacity utilization.

Total: US$ 503

Ensuring the safety of employees and service providers is a top priority for Gerdau

Accident frequency rate1

1- Lost-time accident (LTA) frequency rates per million hours worked, including employees and service providers. The data also includes restricted work and change of function (OSHA recordable treated as LT accidents).

Gerdau received for the fifth

time the Safety and Health

Excellence Recognition

Award given annually by the

World Steel Association in

recognition of successful

programs in the area

occupational safety .

1.59

1.06 1.11 1.090.89

2011 2012 2013 2014 YTD 2015

22

� Gerdau leadership and employees dedicated their day to promote safety in our locations.

� Checklists of critical risks: in the days following the World Safety Day, leaders went to theshop floor evaluate critical risks, give feedback and talk about safety with our employees.

World Safety Day

Safety, a commitment to life.

23

Corporate Governance

► Independent Board Members

► Sarbanes Oxley Compliant

► Tag Along (100% common and preferred share)

► Bylaw minimum dividend: 30% of adjusted net income

Best Practices

Century-old values guide the search for greater efficiency and business competitiveness.

24

► Bovespa’s level 1 corporate governance listing

► New York Stock Exchange

► LATIBEX – Madri

� Renovation of the Corporate Governance structure, representing another phase in theGerdau Johannpeter family succession process.

André B. Gerdau Johannpeter MG Chairman

Claudio Gerdau Johannpeter GSA Chairman

Affonso Celso Pastore

Oscar de Paula Bernardes

Re-elected Members

Jorge JohannpeterGermano Johannpeter

Klaus JohannpeterFrederico Johannpeter

Advisory Board

Guilherme C. Gerdau Johannpeter

Richard C. Gerdau Johannpeter

Expedito Luz

New Members

MG: Metalúrgica Gerdau S.A.GSA: Gerdau S.A.

Speakers:

Agenda

25

�SECTOR




�CLOSING REMARKS

Peter Campo






26

North America Business Operation� Annual manufacturing capacity of over 9.1 million metric tons of finished steel

products in North America.

� Employs approximately 9,200 people in the United States and Canada at over 104locations – mills, reinforcing steel fabrication and placement, metallics and rawmaterials.

� 2014 revenue of Gerdau Long Steel North America was US$ 6.2 billion.

� We operate in 29 U.S. states and 2 Canadian provinces.

* EBITDA adjusted by gains in joint venture operations.

30.1

126.0

149.4

83.7 79.0

2.1%

7.8%9.1%

5.7% 6.2%

1Q14 2Q14 3Q14 4Q14 1Q15

EBITDA (US$ million) EBITDA Margin

*

27

� Minimill technology in all locations – no blast furnaces in North America.

� Vertical integration across the value stream – metallics, mills, downstream:

► Provides some commercial defense from imported rebar.

� Coast to Coast coverage in the USA for key products:

► Products can be produced in multiple mills – provides customers with a reliable supply chain.

► Assets are operated as one network of mills – customer places an order, it is fulfilled within the network balancing the customer’s requirements with the lowest total delivered cost to fulfill.

North America key differentiators

28

North America Business Operation - Product Mix

Structural25%

MBQ/SBQ Rebar Fabricated

Rebar 31%� Offers a diverse and balanced

product mix of merchant bar

quality (MBQ), special bar

quality (SBQ), rebar and

wire rod.

Wire RodStructural

Rebar17%

Fabricated14%

WireRod7%

Merchants/SBQ36%

29

North America Business Operation - Principal locations

62Reinforcing

Steel Locations

16Steel Mills

23RecyclingLocations

Serve customers throughout the United States and Canada

30

Gerdau Long Steel North America - Mill Locations

Rancho Cucamonga

Midlothian

Beaumont

Jacksonville

Petersburg

Charlotte

Cartersville

KnoxvilleJackson

Calvert City

Manitoba

Cambridge

Whitby

SayrevilleWilton

St. Paul

Tampa

Merchants

Wire Rod/Rebar

Structurals/SBQ

31

Gerdau Long Steel North America:Metallics Raw Materials Locations

Bismarck

Buffalo

Cornwall

Dexter

Fargo

JamestownMinot

TorontoMississauga

London

Oshawa

Sand Springs

Guelph Guelph Fair Rd Division

Manitoba

Midlothian

St. Paul

Jacksonville

Jackson

WiltonPerth Amboy

Tampa

Roanoke

Lynchburg

Covington Waynesborough

Harrisonburg

PetersburgCharlottesville

South BostonMartinsville

32

Gerdau Long Steel North America:Downstream Locations – Western N.A.

Reinforcing Steel West

Construction Products, BB, Wire and Rail

Northern Fabrication Group

Southern Fabrication Group

MFT Light Beams

Draper

Denver

Kansas City

HoustonBeaumont

Lindon

Auburn

San Diego

Henderson Sand Springs

Muskogee

Napa

Fairfield

Glendale

DallasArlington

Carrollton

San Bernardino

Santa Fe Springs

Gerdau Long Steel North America:Downstream Locations – Eastern N.A.

Grinding Ball

Construction Products, BB, Wire and Rail

Northern Fabrication Group

Southern Fabrication Group

Technical Resource Center

Atlanta

AlbanySavannah

TrussvilleBirmingham

New Orleans

Duluth

Charlotte

Raleigh

Jacksonville

Fort Lauderdale

Madison

Appleton

Knoxville

Johnson City

St. Louis

Memphis

Nashville

Northern Virginia

Tampa

York

Foxboro

Perth Amboy

Lancaster

MuncieOrrville

Paragould

Cincinnati

Louisville

EldridgeSayrevilleBelvidere

Sterling Decatur

Urbana

33

34

Gerdau Long Steel North America - All Locations

35

North America imports are increasingLong ProductImports

Flat imports significantly higher than longs, surges in rebar / rod.

36

* Residential does not include improvements.Source: US Census Bureau.

Most project categories are recording gains

Total Construction CPIP

37

Better metal spread increases profitability

North America Operation Average Metal Spread (Base 100)

100

84

101

Jan

-12

Fe

b-1

2

Ma

r-1

2

Ap

r-1

2

Ma

y-1

2

Jun

-12

Jul-

12

Au

g-1

2

Se

p-1

2

Oct

-12

No

v-1

2

De

c-1

2

Jan

-13

Fe

b-1

3

Ma

r-1

3

Ap

r-1

3

Ma

y-1

3

Jun

-13

Jul-

13

Au

g-1

3

Se

p-1

3

Oct

-13

No

v-1

3

De

c-1

3

Jan

-14

Fe

b-1

4

Ma

r-1

4

Ap

r-1

4

Ma

y-1

4

Jun

-14

Jul-

14

Au

g-1

4

Se

p-1

4

Oct

-14

No

v-1

4

De

c-1

4

Jan

-15

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Average Metal Spread (Base 100; 100 = Jan.12)

Speakers:

Agenda

38

�SECTOR




�CLOSING REMARKS

Peter Campo






Lower steel shipments impacted results in 1Q15

39

Evolution of EBITDA (R$ million) EBITDA (R$ million) and EBITDA Margin

* Includes net sales from iron ore shipments.¹ EBITDA adjusted by gains in joint venture operations

1,196 1,170 1,224 1,2381,089

11.3% 11.2% 11.4% 11.4%10.4%

1Q14 2Q14 3Q14 4Q14 1Q15EBITDA EBITDA Margin

¹

1,196 1,089(587)

480

(36)

47(11)

EBITDA1Q14

Shipments NetSales/t*

Cost ofSales

SG&A Others EBITDA1Q15

40

Challenging 2015 for Brazil business operation

2015 Outlook

► GDP forecast: -1,1%► Apparent steel consumption: -7,8%

Source: Brazil Central Bank, Brazil Steel Institute – IABr and Criative.

Civil Construction Segment

% of Consolidated Net Sales - LTM

84.4 87.6

106.8

79.4

68.161.3

38.5

7.4 6.9 8.715.2

9.8 10.35.1

1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15

Residential Commercial

Number of New Starts(thousand units)

-10.0%

-37.2%

+5.1%-50.5%

193.7

39.6 37.224.4

9.6

42.148.962.1

189.9

21.92.1

22.1

Oil&Gas Energy Transport /Urban roads

Industrial Sanitation Other

Ongoing projects Projects scheduled to start

Infrastructure projects(2015 – 2020 in R$ MM)

28%4.0%- Exports

- Domestic

41

Significant growth of the non-residential construction sector in the US

Source: IMF, worldsteel and PCA – Americas’ Cement Manufectures.

*Forecast


2015 Outlook (US)

► GDP forecast: +3.1%► Apparent steel consumption: -0.4%

175.3189.7

206.5223.6

237.6

10,572

13,048

15,232

17,256

19,220

2013 2014 2015* 2016* 2017*

Nonresidential Construction (US$ billion)

Portland Cement Consumption (000 tonnes)

212.5

208.5

213.4

218.9

225.3

34,39936,657

38,00239,426

40,925

2013 2014 2015* 2016* 2017*

Public Construction (US$ billion)

Portland Cement Consumption (000 tonnes)

Non-residential Construction vs. Portland Cement Consumption

Public Construction vs. Portland Cement Consumption

+8.9%

+2.4%

33%

42

►Access to US market►New structural shapes plant

Mexico

►Coal resources and coke production

Colombia

►Excellent logistics

►Strong growth

Peru

►Mature market

►Good distribution network

Chile

Source: worldsteel and IMF.

13%


Steel consumption in Latin America should follow the economic growth in the region

2014 2015 (f) 2016 (f)

Others

Mexico

Venezuela

Peru

Colombia

Chile

Argentina

Apparent Steel UseSRO Apr.2015

(million tonnes)

45.9 46.9 48.7

2015 Outlook

► Apparent steel consumption: +2.2%

► GDP forecast: Mexico: +3.8%; Peru: +4.5%; Colombia: +4.3%; Chile: +3.9%

+2.2% +3.9%

8.79.1 9.3

5.7 6.05.4

3.3 3.7 3.9

1.4 1.21.0

2013 2014 2015f

Europe North America India Brazil

43

Good outlook for the automotive sector in USA and India

Source: ANFAVEA, ACEA, IHS, LCA.

2015 Vehicle Production Growth

• Light vehicles: +2.7%

• Heavy vehicles: +7.1%

North America

• Light vehicles: 0%

• Heavy vehicles: +2.1% Europe

• Light vehicles : -10%

• Heavy vehicles: -30%Brazil

• Light vehicles: +7.5%

• Heavy vehicles: +5.5%India

Special steel market size(million tonnes)

-16.7%

+5.4%

-10.0%

+ 2.2%

► One of the largest special steel producer globally, being the main supplier to

the automotive industry.

► Global coverage, with operations in Brazil, USA, Spain and India.

20%


16.4 16.418.1

19.2

22.9

3.5 4.0 4.75.8 5.8

2.5x 2.4x 2.7x

2.4x

3.2x

mar.14 jun.14 sep.14 dec.14 mar.15Gross Debt Principal (R$ billion)

Cash (R$ billion)

Net Debt/EBITDA¹

(1) EBITDA LTM.

44

R$ billion

Debt and Leverage ratio

Debt impacted by exchange variation

Brazillian real 4,062 17.4%

U.S. dollar 17,776 76.4%

Euro 282 1.2%

Other currencies 1,162 5.0%

Gross debt (principal + interest) by currency ($ million)

03.31.2015 % of total

Main covenants:• EBITDA¹ / Net financial Expense ≥ 3 • Net debt / EBITDA¹ < 4x

Debt with covenant agreement on March 31, 2015: US$ 1.6 billion (22% of total debt)

Short Term 2,366 2,038

Long Term 20,916 17,484 Gross Debt (principal + interest) 23,282 19,522

Interest on debt (400) (344)

Gross Debt (principal) 22,882 19,178 Cash, cash equivalents and short-term investments 5,847 5,849

Net Debt¹ 17,035 13,329 1 - Net debt = gross debt (principal) - cash, cash equivalents and short-term investments

Debt composition(R$ million)

03.31.2015 12.31.2014

1.2 1.5

4.0

0.8 0.9

5.4

9.1

2015 2016 2017 2018 2019 2020 2021andafter

(1) EBITDA LTM.

45

Debt maturity schedule

Average debt term: 6.9 years

R$ billion

Average maturity term

Investment grade Moody’s: Baa3 (stable); Standard & Poors: BBB- (stable); Fitch: BBB- (stable)

Local currency 10.1%

Foreign currency 6.0% + FX

Companies abroad 5.9%Average 6.6%

Cost of Debt 03.31.2015

Capital markets 69.5%

Commercial banks 17.5%

BNDES 8.8%Export and credit agencies 4.2%

Debt by origin 03.31.2015

Trade accounts receivable (+) 4,492 4,439 5,272 Inventories (+) 8,689 8,867 10,190 Trade accounts payable (-) 3,183 3,236 3,745 Working Capital 9,998 10,070 11,717

Working Capital(R$ million)

03.31.2014 12.31.2014 03.31.2015

FX effect on working capital increased the cash conversion cycle by approximately 10 days

46

10.0 9.9 10.2 10.1

11.7

85 85 85 84

101

mar.14 jun.14 sep.14 dec.14 mar.15

Working Capital (R$ billions) Cash Conversion Cicle (days)

Positive free cash flow generation

47

4,784

1,408

(407) (810)

866

(2,598)(427)

EBITDA 2013 Income Tax Net FinancialExpenses

Change in WK -cash effect

CAPEX Dividends & IOCS Free Cash Flow

4,828

969

637

(452)

(860)(462)

(2,267)(455)

EBITDA 2014 Gains with JVoperations

Income Tax Net FinancialExpenses

Change in WK -cash effect

CAPEX Dividends &IOCS

Free Cash Flow

FY2013

FY2014

R$ billion

R$ billion

Speakers:

Agenda

48

�SECTOR




�CLOSING REMARKS

Peter Campo






Strengths:

• Experienced, qualified and tested management team

• Diversified portfolio:

• Wide product range

• Geographic diversification

• Flexible production base (mini-mill/integrated)

• Focus on customer service (value creation)

• Balance sheet discipline

Searching for greater competitiveness in a challenging environment

49

• Gerdau’s strategy of geographic diversification, combined withmanagement’s efforts at all operations, minimized the impacts on Gerdau’sperformance of this challenging period in the global steel industry.

• Cautious monitoring of all market developments in this scenario of globalovercapacity and economic uncertainties in Brazil.

• Strong level of imports in the markets where we operate.

• Ongoing efforts to improve operational efficiency and optimize workingcapital.

• New compositions of the Board of Directors of Gerdau S.A. and MetalúrgicaGerdau S.A, marking a new phase in the succession process of the GerdauJohannpeter family.

• Confidence in the management experience and in the flexibility of Gerdau’soperations.

Closing remarks

50

This presentation may contain forward-looking statements. These forward-looking

statements rely upon estimates, information or methods that may be incorrect or

inaccurate and may not actually occur. These estimates are also subject to risks,

uncertainties and assumptions, including, among others: general economic, political

and commercial conditions in Brazil and in the markets where we operate and existing

and future government regulations. Potential investors are hereby informed that these

estimates do not constitute a guarantee of future performance as they involve risks and

uncertainties. The Company does not undertake, and specifically denies, any obligation

to update any estimate, which only speak as of the date they are made.

Statement

51

Q & A

www.gerdau.com/[email protected]

+55 51 3323 2703

Documents

2015.05 - GERDAU DAY NYSE - GERDAU DAY NYSE - final.pdf · providers is a top priority for Gerdau Accident frequency rate 1 1- Lost-time accident (LTA) frequency rates per million