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 and Yield

DIVIDEND DISTRIBUTION (R$ million)

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Gerdau S.A.
Adjusted net income (Base of Dividend) *	1,863	1,292	1,435	1,282	(4,551)	(2,891)	(359)	2,171	1,142	2,083	14,370	4,000
Dividend deliberated	597	408	477	426	253	85	136	765	356	715	5,355	1,200
Pay-out	32.0%	31.6%	33.2%	33.2%	–	–	–	35.2%	31.2%	34.3%	37.3%	30.0%
Yield **	1.5%	1.7%	1.6%	1.4%	1.6%	1.1%	0.7%	3.6%	1.4%	2.1%	12.8%	11.8%

* Note of stockholders’ equity.
** Dividends paid per share during the fiscal year/ initial share price of the fiscal year.