Additional Information

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Gerdau S.A.

¹ Book Value = Equity of the parent company / (Total number of shares – treasury)
² Earnings per share of the parent company

(A) = Total shares in circulation representing the share capital of publicly-held companies controlled by Metalúrgica

Gerdau (obtained from the most recent financial statements of each company available at https://ri.gerdau.com/en/notices-and-results/results-center/).

(B) = Gerdau shares, GGBR4 (preferred). End of day quotes informed.

(C) = Corresponds to the stock market value of publicly-held companies controlled by Metalúrgica Gerdau.

(D) = Direct and indirect participation of Metalúrgica Gerdau in the company’s total capital.

(E) = Market value of the parties, that is, the portion held by Metalúrgica Gerdau in each controlled company.

(F) = Loan and Financing Note from the ITR of Metalúrgica Gerdau, found at https://ri.gerdau.com/en/notices-and-results/results-center/.

(G) = Theoretical market value of Metalúrgica Gerdau, calculated based on the sum of the market value of the interest held by Metalúrgica Gerdau in the controlled company, subtracting its liabilities.

(H) = “Real” market value, that is, the value determined through the quotation of Metalúrgica Gerdau shares on the stock exchange.

(I) = Calculated discount value.

Please note that the discount is valid for the base date on which it was calculated, as it varies daily with the prices of companies open on the market.

The Company highlights that this document is investor support material and may not represent the exact value of the holding discount as it refers to a non-accounting measure and may depend on the interpretation of each investor.

¹balance sheet data updated after earnings release.

Latest events decided by GERDAU S.A., with a change in the composition of the share capital through the issue and distribution of new shares

• 2024.04.16
  INCREASE OF SHARE CAPITAL from R$ 20,289,409,000.00 TO R$ 24,347,290,800.00 through the capitalization of part of the balance of the Profit Reserve and Reserve for Investments and Working Capital accounts.
• 2023.02.28
  BONIFICATION of 5%, through capitalization of revenue reserves, increasing the share capital from R$ 19.323.246.666,00 to R$ 20.289.409.000,00.
• 2011.04.12
  SUBSCRIPTION of 15.345%, at a price of R$ 15.60 per common share and R$ 19.25 per preferred share, increasing the share capital from R$ 15,666,547,445.00 to R$ 19,323,246,666.00.
• 2010.12.30
  INCREASE OF CAPITAL from R$ 14,200,000,000.00 TO R$ 15,666,547,445.00 due to the incorporation of Aços Villares S.A.
• 2008.05.30
  BONIFICATION of 100%, through the incorporation of Reserves, increasing the share capital from R$ 10,715,705,744.48 to R$ 14,200,000,000.00.
• 2008.05.08
  GREENSHOE of 0.572463406%, at a price of R$ 60.30 per share, increasing the share capital from R$ 10,463,652,785.28 to R$ 10,715,705,744.48.
• 2008.03.03
  SUBSCRIPTION of 6.183309416%, at a price of R$ 60.30 per share, increasing the share capital from R$ 7,810,452,785.28 to R$ 10,463,652,785.28.
• 2006.03.31
  BONIFICATION of 50%, through the incorporation of Investment and Working Capital Reserves, Legal Reserve and Retained Earnings, increasing the share capital from R$ 5,206,968,523.52 to R$ 7,810,452,785.28.
• 2005.03.31
  BONIFICATION of 50%, through the incorporation of Investment and Working Capital Reserves, increasing the share capital from R$ 3,471,312,349.01 to R$ 5,206,968,523.52.
• 2004.04.30
  BONIFICATION of 100%, through the incorporation of Investment and Working Capital Reserves, increasing the share capital from R$ 1,735,656,174.86 to R$ 3,471,312,349.01.
• 2003.04.30
  GROWTH of outstanding shares, after the bonus of this date, by replacing each lot of 1,000 (one thousand) shares with 1 (one) new share.
• 2003.04.30
  BONIFICATION of 30%, through the incorporation of Investment and Working Capital Reserves, increasing the share capital from R$ 1,335,120,134.51 to R$ 1,735,656,174.86.
• 2002.06.05
  INCREASE IN SHARE CAPITAL from R$1,320,133,000.00 to R$1,335,120,134.51, through the conversion of the balance of the value of the debentures of the 5th Issue, authorized by the AGM of 29/11/1989.
• 2000.04.28
  DISCOUNTING of outstanding shares by replacing each existing share with two new shares of the same type.
• 2000.04.28
  INCREASE IN SHARE CAPITAL from R$1,316,881,028.66 to R$1,320,133,000.00, through the incorporation of reserves, without issuing new shares.
• 1999.02.26
  INCREASE OF CAPITAL from R$ 1,316,880,093.88 to R$ 1,316,881,028.66 due to the incorporation of the subsidiary Comercial Gerdau.
• 1997.06.30
  INCREASE OF CAPITAL from R$ 954,661,170.11 to R$ 1,316,880,093.88 due to the spin-off and incorporation of the spun-off portion of Siderúrgica Riograndense S.A. resulting from operating activities and the incorporation of Cia. Siderúrgica Pains.
• 1996.10.23
  SUBSCRIPTION of 60.39848%, at a price of R$ 7.00 per lot of 1,000 shares, increasing the share capital from R$ 529,575,000.00 to R$ 605,575,000.00.
• 1996.04.26
  BONIFICATION of 15%, increasing the share capital from R$ 460,5000,000.00 to R$ 529,575,000.00.

Registered ADR Holders can contact JPMorgan Chase Bank, N.A. – Depository Bank

Contact by Phone

Shareholder Services representatives are available from 7:00 a.m. to 7:00 p.m. Central Time Monday thru Friday.

Call 1– 800 – 990 – 1135 (U.S. & Canada).  If you are calling from outside the U.S. and Canada, please call us at 1–651–453–2128

Contact by Email

Please go to https://www.shareowneronline.com/informational/contact-us/

or go to ADR.com for other general information about ADRs.

• Holding company:

A company whose main objective is to control one or more companies and does not normally carry out operations.

• Level 1 Corporate Governance:

It is a special listing segment of B3 – Brasil, Bolsa, Balcão created to offer a trading environment that stimulates investor interest and recognition of companies.

• Tag along:

A right that guarantees minority shareholders the same conditions offered to controlling shareholders in the case of sale of a controlling interest in the company.

• Interest on Equity:

The portion of the company’s profit distributed to shareholders in proportion to their interest. The minimum amount of profit to be distributed is established in the Bylaws, proposed by the Board of Directors, and approved at the Shareholders’ Meeting.

Interest on equity is interest paid or credited individually to shareholders as remuneration for their capital; it is calculated on the equity accounts and limited to the pro rata die variation of the long-term interest rate (TJLP). In order to be distributed and deductible from the calculation base of the company’s income tax and social contribution on net income, the company needs to have profit in the base period related to the payment or credit, or accumulated earnings and profits reserves from previous years. According to the law, interest on equity may replace dividends.

Interest on equity is subject to withholding income tax of 15%. For individuals, it is considered as conclusive taxation (exclusively at source) and should be reported in line 8, under Income Subject to Exclusive/Conclusive Taxation (2011 individual income tax return).

• Dividends:

The portion of the company’s profit distributed to shareholders in proportion to their interest. The minimum amount of profit to be distributed is established in the Bylaws, proposed by the Board of Directors, and approved at the Shareholders’ Meeting.

Dividends are calculated based on adjusted net income in accordance with the applicable law and are exempt from withholding income tax. In the beneficiary’s income tax return, dividends must be reported in line 5 under Exempt and Non-Taxable Income (2011 individual income tax return).

Dividends distributed are not considered deductible expenses when calculating the company’s income tax and social contribution on net income as they are considered distribution of profits, already taxed.

• Payout:

Percentage of the company’s adjusted net income distributed to shareholders as dividends or interest on equity.

• Yield:

The ratio of the dividend and/or interest on equity paid per share of a company to the market price of the same share at the end of a specific period. The higher the dividend yield is, the higher is the return on investment for shareholders.

• Bonus Shares:

New shares issued by a company as a result of a capital increase through the incorporation of reserves. These new shares are distributed free of charge to shareholders in proportion to their shareholding position.