Dividend Policy

All publicly-held companies pay part of their profits to shareholders as dividends or interest on equity (IOE) in proportion to the number of shares held by them.

Metalúrgica Gerdau S.A and Gerdau S.A. pay dividends and/or IOE equivalent to at least 30% of the year’s adjusted net income, calculated in accordance with the accounting practices in Brazil.

As of March 31, 2003, the Gerdau Group companies have been paying dividends and/or IOE quarterly as advance payment of the mandatory dividend.

Payout e Yield

DIVIDEND DISTRIBUTION (R$ million)

	2011	2012	2013	2014	2015	2016	2017	2018	2019
Gerdau S.A.
Adjusted net income (Base of Dividend) *	1,863	1,292	1,435	1,282	(4,551)	(2,891)	(359)	2,171	1,062
Dividend deliberated	597	408	477	426	253	85	136	765	356
Pay-out	32.0%	31.6%	33.2%	33.2%	–	–	–	35.2%	33.5%
Yield **	1.5%	1.7%	1.6%	1.4%	1.6%	1.1%	0.7%	3.6%	1.32%

* Note of stockholders’ equity.
** Historical dividend deliberated in the year paid per share / historical price per share.