Exhibit 99.1

MAIN
INDICATORS

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MESSAGE FROM
MANAGEMENT 

CONSOLIDATED RESULTS
OPERATIONAL PERFORMANCE

PRODUCTION & SHIPMENTS

In 3Q22 and 9M22, the reduction in crude steel production followed the downtrend in shipments in the periods. In 3Q22, crude steel production came to 3 million tonnes, 13.5% lower than in 2Q22 and 13.2% lower than in 3Q21. In 9M22, crude steel production was 9.8 million tonnes, down 2.1% from the same period last year, demonstrating the resilience of the sectors served by the Company during the year, mainly construction, industrial and automotive, the latter experiencing a gradual recovery.

Shipments came to 2.9 million tonnes, decreasing 9.7% and 9.9% in the quarterly and yearly comparison, respectively. In the first nine months of the year, shipments totaled 9.2 million tonnes, down 3.4% on the same period last year.

As a result, capacity utilization stood at 72% in the quarter.

FINANCIAL PERFORMANCE

Accordingly, cost of goods sold decreased 3.8% between 2Q22 and 3Q22. Compared to 3Q21, cost of goods sold increased 10.2%, explained by higher costs with energy and reducing agents, such as coal (+118%), coke (+94%) and natural gas (+39%), and by the 19% increase in metal alloy costs, especially in the North America and Special Steel operations.

As a result of higher costs associated with volumes, gross profit was R$ 4.7 billion in 3Q22, decreasing 19.8% and 26.2% from 2Q22 and 3Q21, respectively. However, in 9M22, gross profit was R$ 15.8 billion, slightly higher than the result in the same period last year.

SELLING, GENERAL & ADMINISTRATIVE EXPENSES

EBITDA & EBITDA MARGIN 

1 – Non-accounting measure calculated in accordance with CVM Instruction 156 of June 23, 2022.
2 - Non-accounting measure reconciled with information presented in the Company's Financial Statements, as established by CVM Resolution 156 of June 23, 2022. 

(a)          Amounts presented in "Equity income (loss)" line in Note 23 of the Company's Financial Statements. 

(b)          Amounts composed by the lines “Proportional operating income before financial result and taxes of associated companies and jointly controlled entities” and “Proportional depreciation and amortization of associated companies and jointly controlled entities" lines in Note 23 of Company's Financial Statements. 

(c)          Amounts presented in "Losses due to non-recoverability of financial assets" line in Note 23 of Company's Financial Statements. 

(d)          Amounts composed of “Recovery of mandatory loans - Eletrobras” and “Recovery of tax credits and provisions” lines of Note 23 in Company's Financial Statements.

In 3Q22, adjusted EBITDA was R$ 5.4 billion, contracting 19.6% from the prior quarter, with margin of 25.4% (-3.7 p.p. vs. 2Q22). In 9M22, adjusted EBITDA came to R$ 17.9 billion, representing a new record and 3.7% increase on 9M21, confirming the continued strong demand in the sector which, combined with the capacity of teams to capture market opportunities, reaffirms the new level of results being delivered by the Company.

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ADJUSTED EBITDA (R$ MILLION) AND ADJUSTED EBITDA MARGIN (%)

FINANCIAL RESULT

(1) Includes portion of net investment hedge

(2) Non-recurring

The financial result was negative R$ 530 million in 3Q22, increasing 46.8% in relation to the previous year, mainly due to the variation in the USD exchange rate in the period, which increased from R$ 5.24 in June to R$ 5.41 in September. Year on year, the significant variations were mainly due to the non-recurring effects from inflation adjustment on tax credits in the periods and exchange rate variation.

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ADJUSTED NET INCOME

Adjusted Net Income was R$ 3.0 billion in the quarter, decreasing 29.7% in relation to 2Q22 and 33.7% in relation to 3Q21, reflecting mainly the lower shipments, higher costs and exchange rate variations in the period, as mentioned above. However, despite the lower result this quarter, Adjusted Net Income in the first nine months of the year was R$ 10.3 billion, remaining in line with results of the same period last year.

1 - Accounting measure disclosed in the consolidated Income Statement.

2 - Non-accounting measure calculated by the Company to show net profit adjusted by non-recurring events that influenced the result.

ADJUSTED NET INCOME (R$ MILLION) AND NET MARGIN (%)

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CAPITAL STRUCTURE AND INDEBTEDNESS

The Company maintains its long deb maturity profile, with 70% of its liabilities coming due in the long term. At the end of the quarter, gross debt stood at R$ 12.9 billion, stable sequentially and down 25% on 3Q21.

The cash position ended the quarter at R$ 8.6 billion, resulting in Net Debt of R$ 4.3 billion and a Net Debt/EBITDA ratio of 0.16x. Compared to prior periods, the lower net debt/EBITDA ratio is explained by higher cash generation, liability management actions and robust EBITDA generation in 3Q22.

INDEBTEDNESS (R$ BILLION) & LEVERAGE RATIO

The weighted average nominal cost of gross debt was 7.79% p.a. and the average debt term of 7.7 years attests to a debt maturity schedule that is well balanced and well distributed over the coming years. Another important liability management action in the quarter was the renewal of global credit facility of up to US$ 875 million.

INVESTMENTS

Capital expenditures amounted to R$ 1,056 million in 3Q22, with R$ 654 million allocated to Maintenance and R$ 402 million to Technological Expansion and Updating. Of the amount invested in the quarter, 58% was allocated to the Brazil BD, 23% to the North America BD, 15% to the Special Steel BD and 4% to the South America BD. Of the total capex in 3Q22, R$ 190 million represented investments in implementing technologies to improve the environmental control and performance of existing facilities.

Maintenance projects are associated with the concept of reinvestment of depreciation over the years to ensure the good functioning of plants. Meanwhile, Expansion and Technological Updating investments include expanding forestry assets, updating and improving environmental controls and technological improvements that increase energy efficiency and reduce greenhouse gas emissions.

Gerdau S.A. has been demonstrating its capacity to adapt to changing scenarios, and the expenditures in its investment plan will be directly related to the pace of demand in our markets, as well as based on criteria involving the return on capital invested and the consequent cash generation.

CAPEX PER BD - 3Q22 

MAIN PROJECTS APPROVED AND UNDER STUDY

WORKING CAPITAL & CASH CONVERSION CYCLE

RETURN ON CAPITAL EMPLOYED (ROCE)

GOVERNANCE & CAPITAL MARKETS

DIVIDENDS

On November 8, 2022, the Board of Directors of Gerdau S.A. approved the distribution of dividends in the amount of R$ 2,878 million (R$ 1.73 per share) and interest on equity in the amount of R$ 699 million (R$ 0.42 per share). Payment will be made as from December 14, 2022, based on shareholders of record on November 21, 2022, with the ex-dividend date November 22, 2022.

Management reaffirms its understanding that the best way to increase absolute dividends is through strong cash generation, which it has been delivering, enabling it to maintain its policy of distributing at least 30% of adjusted net income. This flexibility, including in the regularity of distributions, enables the Company to deliver value for shareholders in different scenarios.

SHARE BUYBACK PROGRAM

On May 5, 2022, Gerdau S.A. announced that the Board of Directors approved a share buyback program for the acquisition of up to 55,000,000 preferred shares, representing approximately 5% of the preferred shares (GGBR4) and/or ADRs backed by the preferred shares (GGB) forming the free-float, with maximum duration of 18 months.

As of October 24, 2022, the Company acquired 44,564,000 preferred shares at an average price of R$ 24.08, corresponding to 81.0% of the share buyback program.

Return to Shareholders

Adjusted net profit (R$ million)

Distributed dividends (R$ million)

Buyback (R$ million)

Payout (1)

(*) Last 12 months

NET SALES

EBITDA & EBITDA MARGIN

BRAZIL BD

PRODUCTION & SHIPMENTS

Crude steel production at the Brazil BD came to 1.3 million tonnes in 3Q22, decreasing 18.7% in relation to 2Q22. Compared to 3Q12, production decreased by 22.0%.

Total shipments in 3Q22 decreased 12.9% on the previous quarter and 14.0% compared to 3Q21. Shipments to the domestic market, driven by the construction and industry sectors, grew slightly in relation to 2Q22. Compared to the same period last year, shipments fell 11.4%, reflecting the less resilient demand. Export shipments decreased 63.1% in relation to 2Q22, due to unfavorable international prices. In relation to 3Q21, exports declined 32.9%.

Therefore, despite the scenario of high interest rates, the domestic market showed strong demand in the sectors served by the Company, reaffirming the more optimistic outlook for the coming periods.

The construction sector continued to register robust growth, with a record number of construction sites and new jobs created. As a result, our fabricated rebars portfolio remained robust, with strong demand in both the high- and medium-income segments as well as in low-income housing. Real estate inventories remain at healthy levels, despite the reduction in launches, supported by a strong foundation of six years of continuous growth. The manufacturing sector continues to benefit from steel demand from the machinery and equipment, energy, yellow line and green line segments, the latter two driven by favorable exchange rates for exports.

Therefore, although the third quarter registered lower export shipments due to poorer conditions in the international market, export shipments in 9M22 were as high as in the same period last year. Exports in 3Q22 accounted for around 9.5% of total shipments, decreasing 13 p.p. and 3 p.p. in relation to 2Q22 and 3Q21, respectively, resulting in the lower shipments in the quarter. In 9M22, the Brazil BD more than doubled its export shipments in relation to 9M21.

Regarding the product mix, domestic sales benefitted mainly from higher shipments in the long steel segment and by shipments of flat products. Shipments in the export market were influenced mainly by demand for products in the long steel segment, especially the reinforced concrete line. In 3Q22, 316,000 tonnes of iron ore were sold to third parties and 715,000 tonnes were consumed internally.

OPERATING RESULT

1 – Includes iron ore sales.

2 - Non-accounting measure reconciled with information presented in the Company's Financial Statements, as established by CVM Resolution 156 of June 23, 2022.

Net sales in 3Q22 were R$ 8.5 billion, down 11.5% from 2Q22 and 15.7% from the prior-year quarter, explained mainly by lower shipments to the export markets mentioned above. In 9M22, net sales remained in line with the previous year, at R$ 26.1 billion.

Cost of goods sold decreased 5.1% in relation to 2Q22, due to lower shipments. Meanwhile, the increase in COGs is explained mainly by higher costs for energy and reducing agents, especially coal, coke and natural gas.

In view of the above, gross profit in 3Q22 was R$ 1.4 billion, down 34.4% on the prior year and 64.0% on 3Q21.

The Brazil BD registered Adjusted EBITDA of R$ 1.6 billion in the quarter and R$ 5.8 billion in 9M22. Comparisons in the above table were affected by the strong comparison base of prior-year periods, which registered record-high EBITDA.

NORTH AMERICA BD

PRODUCTION & SHIPMENTS

In 3Q22, steel production was 1.1 million tonnes, in line with 2Q22 and down 8.3% in relation to 3Q21. In 9M22, steel production was 3.5 million tonnes, down 7.1% in relation to 9M21. Steel shipments were 988,000 tonnes, decreasing 11.8% and 12.6% in relation to 2Q22 and 3Q21, respectively. In 9M22, steel shipments came to 3.2 million tonnes, 5.7% lower than in 9M22.

Although production and shipments remained at strong levels, the lower results in the periods indicate higher risk aversion in the market due to a potential economic recession in the country. We continue to operate at high production levels to meet demand from the non-residential, industrial and distribution markets, which remain resilient.

OPERATING RESULT

1 - Non-accounting measure reconciled with information presented in the Company’s Financial Statements, as established by CVM Resolution 156 of June 23, 2022.

Net sales came to R$ 7.8 billion in 3Q22, which represents a reduction of 8.6% from 2Q22, reflecting the lower shipments, and an increase 5.2% from 3Q21, reflecting stabilization of the metals spread at high levels and the increase in net sales per tonne. In 9M22, net sales were R$ 24.6 billion, up 23.5% year over year, also influenced by the wider metals spread and increase in net sales per ton.

The decline in cost of goods sold in 3Q22 was mainly influenced by the lower volume and lower costs, especially for metals. Energy costs, however, increased in the period.

Gross profit came to R$ 2.2 billion in the quarter, 9.3% lower than in 2Q22 and 34.1% higher than in 3Q21. The results reflect not only the reasons mentioned above, but also production levels and current demand in the countries where we operate. In 9M22, gross profit grew two-fold from 9M21, supported by the growth in net sales sharply outpacing the increase in cost of goods sold.

Adjusted EBITDA was R$ 2.6 billion, the best result for a third quarter ever. In 3Q22, adjusted EBITDA margin was 32.9%, representing contraction of 0.2 p.p. from 2Q22 and expansion of 7.5 p.p. on the same period last year, with the result reflecting the market’s favorable market and the Company’s ongoing strategy of segmentation and cost control. In 9M22, adjusted EBITDA was R$ 8.1 billion, practically doubling the result of the same period last year, with margin of 33.0%, expanding 12.5 p.p. from 9M21.

SPECIAL STEEL BD

PRODUCTION & SHIPMENTS

In the quarter, special steel production came to 383,000 tonnes, decreasing 24.4% in relation to 2Q22, but in line with the prior-year period. Steel shipments totaled 403,000 tonnes, decreasing 7.4% and 1.4% in relation to 2Q22 and 3Q21, respectively. Demand in the quarter was adversely affected inventory adjustments at some clients. In 9M22, steel production was 1.4 million tonnes, up 12.7% on 9M21, with shipments in line with the same period last year. The results reinforce the outlook for growth and gradual recovery in operations this year.

Light vehicle sales volume recovered, but remained below recent periods, while the heavy vehicle and oil and gas segments registered a good performance, driven by fuel prices in the international market.

OPERATING RESULT

In the quarter, net sales were R$ 3.5 billion (-4.9% vs. 2Q22 and +21.1% vs 3Q21). Meanwhile, gross profit was R$ 560 million (-34.1% vs. 2Q22 and +20.2% vs. 3Q21). The results were mainly influenced by the imposition of a surcharge (mechanism used to adjust raw materials prices) in the North America Special Steel operation due to the variation in scrap prices during the periods.

The operation’s adjusted EBITDA accompanied the performance of gross profit, decreasing 32.0% sequentially and increasing 17.1% year over year. In 9M22, adjusted EBITDA was R$ 2.3 billion (+56.0% vs. 9M21) with adjusted EBITDA margin of 21.7% (+3.6 p.p. vs. 9M21).

SOUTH AMERICA BD

PRODUCTION & SHIPMENTS

Crude steel production at the South America BD was 175,000 tonnes in the quarter, down 13.4% from 2Q22 and up 9.4% on the same quarter last year. Steel shipments in the quarter were stable in relation to 2Q22, driven basically by higher sales volume to Peru’s construction sector, combined with the sector’s resilient volumes in Argentina. In relation to the prior year, shipments in the third quarter decreased by 6.4%, reflecting slightly weaker demand in all countries of the operation.

In the first nine months of the year, 548,000 tonnes of steel were produced, 22.6% more than in 9M21, and 922,000 tonnes of steel were sold in the same period, or 4.5% higher year over year.

OPERATING RESULT

In 3Q22, the South America BD delivered net sales of R$ 2.0 billion, representing increases oi 4.1% sequentially and 6.0% year over year. In 9M22, net sales were R$ 5.6 billion, up 21.7% on 9M21.

Cost of goods sold was R$ 1.5 billion, increasing 10.0% and 5.1% in relation to 2Q22 and 3Q21, respectively, reflecting higher raw material prices in the period.

Given the shipments and variation in cost of goods sold, gross profit was R$ 481 million, down 11.3% from 2Q22 and 9.0% from 3Q21. In 9M22, gross profit was R$ 1.3 billion, increasing 19.2% in relation to 9M21.

The BD’s adjusted EBITDA was R$ 573 million, down 22.6% and 4.8% from 2Q22 and 3Q21, respectively. Adjusted EBITDA margin was 29.0% in the quarter and 31.9% in 9M22. Despite reductions due to the reasons cited above, the results were distorted by the tough comparisons bases of periods when the operations registered two of the best four results in its history.

APPENDICES

ASSETS

LIABILITIES

INCOME STATEMENT

* Adjusted net income is a non-accounting measure calculated by the Company, reconciled with the financial statements and consists of net income (loss) adjusted by
non-recurring events that influenced profit or loss.

CASH FLOW

QUARTERLY RESULTS - 3Q22

		QUARTERLY RESULTS - 3Q22     In addition, the Company has new business arms, is a leading recycler, has forests and invests in environmental and social projects:
		Gerdau Next, holds interests or control of companies engaged in construtech, logistics, metal foundations and construction marketplaces and is a startup accelerator. Created in 2020, Gerdau Next is our business arm dedicated to diversifying Gerdau’s product and service portfolio in segments adjacent to steel that are strategic, profitable and undergoing transformation on paths to sustainability, mobility and productivity in the construction industry.   In connection with the entrepreneurship ecosystem, we have a startup accelerator, Gerdau Next Ventures, with professionals based in Silicon Valley, California (USA), whose mission is to foster shared experiences and partnerships with the region’s innovation ecosystem.
		Gerdau has two iron ore mines located in the state of Minas Gerais, which supply the integrated mill of Ouro Branco-MG and sell a portion of the volume produced.
		We are Latin America’s largest recycler of steel scrap, transforming 11 million tonnes, with 73% of our steel made from the material.
		We have 250,000 hectares of renewable eucalyptus forests in Minas Gerais. Of this total, 91,000 hectares are set aside for the conservation of native forests, which is an area larger than the city of São Paulo. Currently, Gerdau is the world’s largest producer of charcoal, which is used as bioreducer to manufacture pig iron.
		Aware of our social and environmental responsibility, our investments include contributions to 456 projects in housing, recycling and entrepreneurship education, with around 2,000 volunteer employees.
		Shell Brasil Petróleo Ltda. (Shell) and Gerdau signed a binding agreement for the formation of a joint venture, with equal participation of the two companies in the business, for the development, construction and operation of a new solar park in the State of Minas Gerais, to be built in 2023, after the final investment decision is made. Agreement, which still depends on the approval of the conditions precedent, among them the approval of the Brazilian regulatory and competition authorities, which establishes the premises for the joint-venture activity in the generation and long-term contracting for the acquisition of clean energy.