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    Gabriel Baja • Citigroup

    Gabriel Baja's questions to Gerdau SA (GGB) leadership

    Gabriel Baja's questions to Gerdau SA (GGB) leadership • Q2 2025

    Question

    Gabriel Baja focused on future capital allocation, asking how Gerdau plans to use the increased cash flow expected from maturing projects and lower CapEx. He also questioned if the future EBITDA uplift could exceed current guidance, considering the reversal of one-off costs.

    Answer

    CFO Rafael Japur confirmed that with the current share price, share buybacks are the company's top priority for capital allocation. He agreed that the combination of maturing projects and the normalization of production costs at the Ouro Branco mill provides 'important room to increase our EBITDA in Brazil' next year.

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    Gabriel Baja's questions to Companhia Siderurgica Nacional SA (SID) leadership

    Gabriel Baja's questions to Companhia Siderurgica Nacional SA (SID) leadership • Q2 2025

    Question

    Gabriel Baja from Citigroup asked for clarification on the Usiminas stake sale's connection to the CADE agreement, inquired about the company's view on potential tariff changes for the auto industry, and requested insight into the medium-term deleveraging path to 2026.

    Answer

    An executive clarified the Usiminas sale was a "very important, relevant, and material part" of complying with the CADE agreement. Regarding deleveraging, he outlined a path driven by operational improvements across all segments and asset sales, reaffirming the goal of getting below 3.0x net debt/EBITDA this year and targeting a level around 2.0x in the long term. An executive, Martinez, added that the core issue with trade is a lack of political will from the government to implement technically justified anti-dumping measures.

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