Exhibit 99.1

GERDAU S.A. and subsidiaries
Quarterly Results — 3Q13     October 31, 2013

Mission

To create value for our customers, shareholders, employees and communities by operating as a sustainable steel business.

Vision

To be a global organization and a benchmark in any business we conduct.

Values

Be the CUSTOMER’S choice

SAFETY above all

Respected, engaged and fulfilled EMPLOYEES

Pursuing EXCELLENCE with SIMPLICITY

Focus on RESULTS

INTEGRITY with all stakeholders

Economic, social and environmental SUSTAINABILITY

Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. With over 45,000 employees, it has industrial operations in 14 countries - in the Americas, Europe and Asia - which together represent an installed capacity of over 25 million metric tons of steel per year. It is the largest recycler in Latin America and around the world it transforms each year millions of tons of scrap into steel, reinforcing its commitment to sustainable development in the regions where it operates. With more than 130,000 shareholders, the Company is listed on the stock exchanges of São Paulo, New York and Madrid.

Highlights in the Third Quarter of 2013

	3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
Key Information	2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Production of Crude Steel (1,000 tonnes)	4,507		4,747		-5.1	%	4,646		-3.0	%	13,561		14,733		-8.0	%
Shipments (1,000 tonnes)	4,775		4,774		0.0	%	4,634		3.0	%	13,964		14,277		-2.2	%
Net Sales (R$ million)	10,494		9,819		6.9	%	9,882		6.2	%	29,542		28,994		1.9	%
EBITDA (R$ million)	1,413		1,033		36.8	%	1,196		18.1	%	3,414		3,285		3.9	%
Net Income (R$ million)	642		408		57.4	%	401		60.1	%	1,202		1,354		-11.2	%
Gross margin	14.6	%	12.2	%			13.6	%			12.8	%	12.9	%
EBITDA Margin	13.5	%	10.5	%			12.1	%			11.6	%	11.3	%
Shareholders’ equity (R$ million)	31,136		28,886				30,464				31,136		28,886
Total Assets (R$ million)	56,208		53,599				55,056				56,208		53,599
Gross debt / Total capitalization (1)	33	%	34	%			33	%			33	%	34	%
Net debt (2) / EBITDA (3)	2,8	x	2,7	x			3,1	x			2,8	x	2,7	x

(1) Total capitalization = shareholders’ equity + gross debt (principal)

(2) Net debt = gross debt (principal) - cash, cash equivalents and short-term investments

(3) EBITDA in the last 12 months

1

World Steel Market

Crude Steel Industry Production	3rd Quarter	3rd Quarter	Variation		2nd Quarter	Variation		9 months	9 months	Variation
(1,000 tonnes)	2013	2012	3Q13/3Q12		2013	3Q13/2Q13		2013	2012	9M13/9M12
Brazil	8,943	8,729	2.5	%	8,629	3.6	%	25,917	26,079	-0.6	%
North America (except Mexico)	24,576	25,116	-2.2	%	24,698	-0.5	%	74,108	78,237	-5.3	%
Latin America (except Brazil)	8,580	7,728	11.0	%	7,600	12.9	%	23,794	23,548	1.0	%
China	197,510	180,863	9.2	%	197,979	-0.2	%	587,380	543,870	8.0	%
Others	156,809	158,310	-0.9	%	162,194	-3.3	%	475,015	483,056	-1.7	%
Total(1)	396,418	380,746	4.1	%	401,100	-1.2	%	1,186,214	1,154,790	2.7	%

Source: worldsteel and Gerdau

(1) Figures represent approximately 98% of total production in 62 countries.

·In 3Q13, world steel production grew in relation to 3Q12 (see table above), led by China. Production performance in the regions where Gerdau operates was as follows: (i) in Brazil, growth was driven by the stronger demand in the period; (ii) in North America, the reduction is explained by the adjustment trend in the steel chain; and (iii) in Latin America, production growth mainly reflects the GDP growth in the region’s various countries. China remained an important player in the international market, accounting for 49.8% of world steel production. Average capacity utilization in the world steel industry stood at 79.3% in September 2013.

·On October 7, 2013, World Steel Association released its latest Short Range Outlook containing forecasts for global apparent steel consumption in 2013 and 2014, in which it estimated growth of 3.1% and 3.3%, respectively. The main risks that were expected to affect the global economy in early 2013 - the eurozone crisis and a sharp slowdown in China’s economy - have stabilized over the last six months. Besides that, the uncertainties regarding U.S. fiscal policy should also be resolved soon. In 2013, a few emerging countries are not performing as expected, although China has been an exception to the rule, posting estimated annual growth of 6.0%. For 2014, worldsteel expects continued recovery in steel demand worldwide, led by developed countries, where growth is expected to recover. On the other hand, slower growth is expected in China’s steel consumption in 2014 (+3.0%). In addition, structural problems, political instability and volatility in financial markets in emerging countries should reduce growth in these economies.

Gerdau’s performance in the third quarter of 2013

The Consolidated Financial Statements of Gerdau S.A. are presented in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the accounting practices adopted in Brazil, which are fully aligned with the international accounting standards issued by the Accounting Pronouncement Committee (CPC).

The information in this report does not include data for jointly controlled entities and associate companies, except where stated otherwise.

Business Operations

The information in this report is presented in accordance with Gerdau’s corporate governance, as follows:

·Brazil (Brazil BO) — includes the operations in Brazil (except special steel) and the metallurgical and coking coal operation in Colombia;

·North America (North America BO) — includes all North American operations, except Mexico and special steel;

·Latin America (Latin America BO) — includes all Latin American operations, except the operations in Brazil and the metallurgical and coking coal operation in Colombia;

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·Special Steel (Special Steel BO) — includes the special steel operations in Brazil, Spain, United States and India.

Crude steel production

Crude steel production	3rd Quarter	3rd Quarter	Variation		2nd Quarter	Variation		9 months	9 months	Variation
(1,000 tonnes)	2013	2012	3Q13/3Q12		2013	3Q13/2Q13		2013	2012	9M13/9M12
Brazil	1,794	1,925	-6.8	%	1,771	1.3	%	5,272	5,501	-4.2	%
North America	1,457	1,734	-16.0	%	1,640	-11.2	%	4,571	5,475	-16.5	%
Latin America	444	444	0.0	%	429	3.5	%	1,299	1,432	-9.3	%
Special Steel	812	644	26.1	%	806	0.7	%	2,419	2,325	4.0	%
Total	4,507	4,747	-5.1	%	4,646	-3.0	%	13,561	14,733	-8.0	%

·On a consolidated basis, production in 3Q13 decreased compared to 3Q12 due to the efforts to optimize working capital, especially at the North America and Brazil BOs. The Special Steel BO registered higher production in all regions in 3Q13, led by the operation in Brazil, which benefitted from the recovery in demand for heavy vehicles.

·Compared to 2Q13, the reduction in consolidated production is explained by the efforts to optimize inventories in the North America BO.

Crude Steel Production

(in thousands of metric tons)

Shipments

Consolidated Shipments	3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
(1,000 tonnes)	2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Brazil (1)	1,913		1,791		6.8	%	1,768		8.2	%	5,489		5,485		0.1	%
Domestic Market	1,544		1,339		15.3	%	1,506		2.5	%	4,466		4,026		10.9	%
Exports	369		452		-18.4	%	262		40.8	%	1,023		1,459		-29.9	%
North America	1,608		1,768		-9.0	%	1,545		4.1	%	4,669		5,113		-8.7	%
Latin America	720		705		2.1	%	726		-0.8	%	2,092		2,061		1.5	%
Special Steel	713		625		14.1	%	766		-6.9	%	2,146		2,054		4.5	%
Eliminations and Adjustments	(179	)	(115	)			(171	)			(432	)	(436	)
Total	4,775		4,774		0.0	%	4,634		3.0	%	13,964		14,277		-2.2	%

(1) - Does not consider coking coal, coke and iron ore shipments.

·Consolidated shipments remained stable between 3Q13 and 3Q12, with distinct performances in the various business operations. In the Brazil BO, the growth in shipments was driven by stronger domestic market demand, especially in the commercial construction and infrastructure sectors, and to a lesser extent in the industrial sector, led by capital goods. On the other hand, exports

3

from the Brazil BO decreased, mainly due to the redirecting products to the domestic market. In the Special Steel BO, the growth in shipments was led by Brazil, where a recovery was observed in vehicle production, especially of trucks, and by India, where product sales were launched in 1Q13. On the other hand, in North America BO, the reduction in shipments is mainly explained by the high share of imports in the period and by the installation of new management software over the last 12 months.

·The growth in consolidated shipments in relation to 2Q13 is explained by the better performance in the Brazil BO due to the stronger exports and in the North America BO due to the recovery in demand in the period. In the Special Steel BO, however, the lower shipments in the period reflected the lower volumes in Spain due to the seasonally weaker month of August.

Consolidated Shipments

(breakdown by BO)

Net sales

Net Sales	3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
(R$ million)	2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Brazil	3,986		3,567		11.7	%	3,679		8.3	%	11,123		10,511		5.8	%
Domestic Market	3,453		2,931		17.8	%	3,233		6.8	%	9,688		8,549		13.3	%
Exports (1)	533		636		-16.2	%	446		19.5	%	1,435		1,962		-26.9	%
North America	3,443		3,415		0.8	%	3,092		11.4	%	9,460		9,740		-2.9	%
Latin America	1,426		1,322		7.9	%	1,332		7.1	%	3,902		3,745		4.2	%
Special Steel	2,045		1,750		16.9	%	2,122		-3.6	%	5,979		5,676		5.3	%
Eliminations and Adjustments	(406	)	(235	)			(343	)			(922	)	(678	)
Total	10,494		9,819		6.9	%	9,882		6.2	%	29,542		28,994		1.9	%

(1) - Includes coking coal, coke and iron ore net sales.

·In 3Q13, consolidated net sales grew in relation to 3Q12, due to different reasons at each Business Operation. In the Brazil BO, the net sales growth is explained by the higher shipments in the domestic market and, to a lesser extent, by the higher net sales per metric ton shipped to both the domestic and export markets. In the Latin America BO, net sales growth is mainly explained by the higher net sales per metric ton shipped. In the Special Steel BO, net sales growth is mainly explained by the higher shipments. In the North America BO, despite the lower shipments, net sales were virtually stable due to the exchange variation in the period (+12.8% depreciation in the average price of the Brazilian real against the U.S. dollar).

·Compared to 2Q13, consolidated net sales also registered growth, reflecting the increases in net sales per metric ton shipped and in shipments. In the Brazil BO, the increase in net sales was driven by the better mix of products in the domestic market and by the higher net sales per metric ton shipped in the market. In the North America BO, net sales growth is attributed to the increase in net sales per metric ton shipped, which was influenced by the exchange variation in the period (+10.7% depreciation in the average price of the Brazilian real against the U.S. dollar) and, to a lesser extent, by the growth in shipments.

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Cost of goods sold and gross margin

Cost of Goods Sold and Gross Margin		3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
		2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Brazil	Net sales (R$ million)	3,986		3,567		11.7	%	3,679		8.3	%	11,123		10,511		5.8	%
	Cost of goods sold (R$ million)	(2,981	)	(2,851	)	4.6	%	(2,903	)	2.7	%	(8,813	)	(8,758	)	0.6	%
	Gross profit (R$ million)	1,005		716		40.4	%	776		29.5	%	2,310		1,753		31.8	%
	Gross margin (%)	25.2	%	20.1	%			21.1	%			20.8	%	16.7	%
North America	Net sales (R$ million)	3,443		3,415		0.8	%	3,092		11.4	%	9,460		9,740		-2.9	%
	Cost of goods sold (R$ million)	(3,295	)	(3,192	)	3.2	%	(2,905	)	13.4	%	(8,955	)	(8,832	)	1.4	%
	Gross profit (R$ million)	148		223		-33.6	%	187		-20.9	%	505		908		-44.4	%
	Gross margin (%)	4.3	%	6.5	%			6.0	%			5.3	%	9.3	%
Latin America	Net sales (R$ million)	1,426		1,322		7.9	%	1,332		7.1	%	3,902		3,745		4.2	%
	Cost of goods sold (R$ million)	(1,264	)	(1,264	)	0.0	%	(1,193	)	6.0	%	(3,506	)	(3,460	)	1.3	%
	Gross profit (R$ million)	162		58		179.3	%	139		16.5	%	396		285		38.9	%
	Gross margin (%)	11.4	%	4.4	%			10.4	%			10.1	%	7.6	%
Special Steel	Net sales (R$ million)	2,045		1,750		16.9	%	2,122		-3.6	%	5,979		5,676		5.3	%
	Cost of goods sold (R$ million)	(1,823	)	(1,544	)	18.1	%	(1,881	)	-3.1	%	(5,398	)	(4,892	)	10.3	%
	Gross profit (R$ million)	222		206		7.8	%	241		-7.9	%	581		784		-25.9	%
	Gross margin (%)	10.9	%	11.8	%			11.4	%			9.7	%	13.8	%
Eliminations	Net sales (R$ million)	(406	)	(235	)			(343	)			(922	)	(678	)
and Adjustments	Cost of goods sold (R$ million)	403		230				342				915		677
	Gross profit (R$ million)	(3	)	(5	)			(1	)			(7	)	(1	)
Consolidated	Net sales (R$ million)	10,494		9,819		6.9	%	9,882		6.2	%	29,542		28,994		1.9	%
	Cost of goods sold (R$ million)	(8,960	)	(8,621	)	3.9	%	(8,540	)	4.9	%	(25,757	)	(25,265	)	1.9	%
	Gross profit (R$ million)	1,534		1,198		28.0	%	1,342		14.3	%	3,785		3,729		1.5	%
	Gross margin (%)	14.6	%	12.2	%			13.6	%			12.8	%	12.9	%

·In a comparison of 3Q13 with 3Q12 and on a consolidated basis, cost of goods sold increased due to the higher cost per metric ton shipped, however, lower than the increase in net sales per metric ton shipped, leading to a gross margin expansion. In the Brazil BO, the increase in cost of goods sold is explained by the higher shipments in the period. The increased dilution of fixed costs resulting from these higher shipments, combined with the increase in net sales per metric ton shipped, supported gross margin expansion in the period. In the Latin America BO, the stability in costs coupled with the higher net sales per metric ton shipped supported gross margin expansion. In the North America BO, the increase in cost of goods sold mainly reflected the exchange variation in the period (+12.8% depreciation in the average price of the Brazilian real against the U.S. dollar) and occurred despite the lower shipments. This reduction led to the lower dilution of fixed costs, which, combined with the lower prices in U.S. dollar and costs of temporary closure of a melt shop in Canada, resulted in gross margin compression in the period. In the Special Steel BO, the increase in cost of goods sold was mainly due to the growth in shipments. Despite the higher volume, gross margin decreased, which is mainly explained by the learning curve in the India operation, where production started in January of this year, and by the higher cost per metric ton shipped in Spain.

·On a consolidated basis, in 3Q13 compared to 2Q13, gross margin expanded, mainly due to the higher shipments in the Brazil BO and the increased net sales per metric ton shipped in the domestic market of this operation.

5

Selling, general and administrative expenses

SG&A	3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
(R$ million)	2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Selling expenses	177		150		18.0	%	165		7.3	%	494		431		14.6	%
General and administrative expenses	495		480		3.1	%	471		5.1	%	1,449		1,434		1.0	%
Total	672		630		6.7	%	636		5.7	%	1,943		1,865		4.2	%
Net Sales	10,494		9,819		6.9	%	9,882		6.2	%	29,542		28,994		1.9	%
% of net sales	6.4	%	6.4	%			6.4	%			6.6	%	6.4	%

·Selling, general and administrative expenses as a ratio of net sales remained flat in 3Q13 compared to both the same period last year and 2Q13. This demonstrates the Company’s efforts to optimize these costs, especially in a period of cost pressures and devaluation of the real, which impacts these expenses in the international operations when translated into reais.

Equity income

·The jointly controlled entities and associate companies, whose results are calculated using the equity method, recorded steel shipments of 390,000 metric tons in 3Q13, based on their respective equity interests, resulting in net sales of R$ 510.5 million.

·Based on the performance of jointly controlled entities and associate companies, equity income was positive R$ 18.4 million in 3Q13, compared to negative R$ 3.1 million in 3Q12.

EBITDA

Breakdown of Consolidated EBITDA (1)	3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
(R$ million)	2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Net income	642		408		57.4	%	401		60.1	%	1,202		1,354		-11.2	%
Net financial result	206		134		53.7	%	548		-62.4	%	946		566		67.1	%
Provision for income and social contribution taxes	37		26		42.3	%	(230	)	—		(202	)	3		—
Depreciation and amortization	528		465		13.5	%	477		10.7	%	1,468		1,362		7.8	%
EBITDA	1,413		1,033		36.8	%	1,196		18.1	%	3,414		3,285		3.9	%
EBITDA Margin	13.5	%	10.5	%			12.1	%			11.6	%	11.3	%

(1) Includes the results from jointly controlled entities and associate companies based on the equity income method.

Note: EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is not a method used in accounting practices, does not represent cash flow for the periods in question and should not be considered an alternative to cash flow as an indicator of liquidity. The Company's EBITDA is already calculated pursuant to Instruction 527 of the CVM.

Conciliation of Consolidated EBITDA	3rd Quarter		3rd Quarter		2nd Quarter		9 months		9 months
(R$ million)	2013		2012		2013		2013		2012
EBITDA (1)	1,413		1,033		1,196		3,414		3,285
Depreciation and amortization	(528	)	(465	)	(477	)	(1,468	)	(1,362	)
OPERATING INCOME BEFORE FINANCIAL RESULT AND TAXES (2)	885		568		719		1,946		1,923

(1) Non-accounting measurement adopted by the Company.

(2) Accounting measurement disclosed in consolidated Statements of Income.

Consolidated EBITDA and EBITDA Margin (R$ million) EBITDA Margin

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EBITDA

(Breakdown by BO)

		3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
EBITDA by Business Operation		2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Brazil	EBITDA (R$ million)	982		691		42.1	%	748		31.3	%	2,240		1,691		32.5	%
	EBITDA margin (%)	24.6	%	19.4	%			20.3	%			20.1	%	16.1	%
North America	EBITDA (R$ million)	129		205		-37.1	%	158		-18.4	%	435		863		-49.6	%
	EBITDA margin (%)	3.7	%	6.0	%			5.1	%			4.6	%	8.9	%
Latin America	EBITDA (R$ million)	131		(3	)	—		109		20.2	%	293		159		84.3	%
	EBITDA margin (%)	9.2	%	-0.2	%			8.2	%			7.5	%	4.2	%
Special Steel	EBITDA (R$ million)	273		233		17.2	%	276		-1.1	%	704		855		-17.7	%
	EBITDA margin (%)	13.3	%	13.3	%			13.0	%			11.8	%	15.1	%
Eliminations and Adjustments	EBITDA (R$ million)	(102	)	(93	)			(95	)			(258	)	(283	)
Consolidated	EBITDA (R$ million)	1,413		1,033		36.8	%	1,196		18.1	%	3,414		3,285		3.9	%
	EBITDA margin (%)	13.5	%	10.5	%			12.1	%			11.6	%	11.3	%

·Consolidated EBITDA increased in 3Q13 compared to 3Q12 due to the higher consolidated gross profit, resulting in an improvement in consolidated EBITDA margin. In the Brazil BO, which accounted for 64.8% of EBITDA, the increases in EBITDA and EBITDA margin are explained by the higher shipments and consequent higher dilution of fixed costs, combined with the increase in net sales per metric ton shipped. In the Latin America BO, which accounted for 8.7% of EBITDA, both EBITDA and EBITDA Margin increased, driven by the stability in costs and by the growth in both net sales per metric ton shipped and equity income. In the Special Steel BO, which accounted for 18.0% of EBITDA in 3Q13, EBITDA margin was unchanged. In the North America BO, which accounted for 8.5% of EBITDA, the lower EBITDA and EBITDA margin mainly reflects the lower gross profit, as described in the section “Cost of sales and gross margin.”

·On a consolidated basis and comparing 3Q13 to 2Q13, EBITDA and EBITDA margin both increased, which is mainly explained by the better operating performance of the Brazil BO.

Financial result

Financial Result	3rd Quarter		3rd Quarter		Variation		2nd Quarter		Variation		9 months		9 months		Variation
(R$ million)	2013		2012		3Q13/3Q12		2013		3Q13/2Q13		2013		2012		9M13/9M12
Financial income	95		66		43.9	%	64		48.4	%	202		248		-18.5	%
Financial expenses	(258	)	(217	)	18.9	%	(264	)	-2.3	%	(773	)	(681	)	13.5	%
Exchange variation, net	(45	)	21		—		(344	)	-86.9	%	(367	)	(120	)	205.8	%
Exchange variation on net investment hedge	(15	)	(8	)	87.5	%	(214	)	-93.0	%	(205	)	(165	)	24.2	%
Exchange variation - other lines	(30	)	29		—		(130	)	-76.9	%	(162	)	45		—
Losses on financial instruments, net	2		(4	)	—		(4	)	—		(8	)	(13	)	-38.5	%
Financial Result	(206	)	(134	)	53.7	%	(548	)	-62.4	%	(946	)	(566	)	67.1	%

·In 3Q13 compared to 3Q12, the higher negative financial result mainly reflects the negative net exchange variation, since the variations in financial income and expenses largely offset each other.

·Compared to 2Q13, the lower negative financial result is mainly explained by the lower negative net exchange variation in 3Q13 (depreciation of the closing quote of the Brazilian real against the U.S. dollar of 0.6% in 3Q13 and 10.0% in 2Q13), and, to a lesser extent, by the higher financial income.

7

Net income

Net Income	3rd Quarter		3rd Quarter		Variation		2nd Quarter	Variation		9 months		9 months		Variation
(R$ million)	2013		2012		3Q13/3Q12		2013	3Q13/2Q13		2013		2012		9M13/9M12
Income before taxes (1)	679		434		56.5	%	171	297.1	%	1,000		1,357		-26.3	%
Income and social contribution taxes	(37	)	(26	)	42.3	%	230	—		202		(3	)	—
Income taxes - net investment hedge	15		8		87.5	%	214	-93.0	%	205		122		68.0	%
Income taxes - other lines	(52	)	(34	)	52.9	%	16	—		(3	)	(125	)	-97.6	%
Consolidated Net Income (1)	642		408		57.4	%	401	60.1	%	1,202		1,354		-11.2	%

(1) Includes the results from jointly controlled entities and associate companies based on the equity income method.

·Consolidated net income in 3Q13 grew in relation to 3Q12, reflecting the higher operating income between the periods. Compared to 2Q13, net income increased driven by the better operating performance and financial result.

Dividends

·The companies Metalúrgica Gerdau S.A. and Gerdau S.A. approved, based on the results recorded in 3Q13, the prepayment of the minimum mandatory dividend for fiscal year 2013 in the form of interest on capital stock, as shown below:

·Payment date: November 22, 2013

·Record date: shareholder positions on November 11, 2013

·Ex-dividend date: November 12, 2013

·  Metalúrgica Gerdau S.A.

·R$ 65.0 million (R$ 0.16 per share)

·  Gerdau S.A.

·R$ 204.1 million (R$ 0.12 per share)

·In the first nine months of 2013, Metalúrgica Gerdau S.A. and Gerdau S.A. have already approved the payment of R$ 117.9 million and R$ 357.2 million, respectively.

Investments

·In 3Q13, investments in fixed assets amounted to R$ 714.9 million, bringing total investments in the first nine months of the year to R$ 1.9 billion. Of the total invested in the first nine months of the year, 64.3% was allocated to units in Brazil and the remaining 35.7% to units in other countries. In addition to the investments in maintenance and technological upgrades, other investments included: the startup of the new iron ore treatment unit in Miguel Burnier (Minas Gerais) which increased the annual iron ore production capacity to 11.5 million metric tons; the startup of the rolling mill to produce coiled hot-rolled strips in Ouro Branco (Minas Gerais) with annual capacity of 800,000 metric tons; the conclusion of the installation of the special steel rolling mill in Pindamonhangaba (São Paulo) with annual capacity of 500,000 metric tons; and the construction of a new plant to produce structural shapes in Mexico, with annual capacity of 700,000 metric tons of rolled products.

8

Cash conversion cycle and working capital

·In September 2013, working capital decreased slightly from June 2013, despite the 6.2% growth in net sales in 3Q13 compared to 2Q13, which demonstrates the Company’s efforts to reduce its working capital needs and improve its liquidity. As a result, the cash conversion cycle (working capital divided by daily net sales in the quarter) decreased by five days in relation to June 2013.

Financial liabilities

Gross debt (principal)

(R$ billion)

·On September 30, 2013, the composition of gross debt (principal) was 9.3% short term and 90.7% long term. The exposure of gross debt to foreign currencies decreased from 85.0% in June to 81.4% in September, reflecting the Company’s financial management initiatives to reduce foreign exchange risk in a period of volatility in the Brazilian real.

·The increase in cash (cash, cash equivalents and short-term investments) between June 2013 and September 2013 was due to the higher cash generation in the period and, to a lesser extent, to the lower working capital needs. On September 30, 2013, 45.3% of this cash was held by Gerdau companies abroad and denominated mainly in U.S. dollar.

·The 3.3% decrease in the balance of net debt on September 30, 2013 compared to June 30, 2013 is explained by the increase in the Company’s cash position in the period.

·On September 30, 2013, the nominal weighted average cost of gross debt (principal) was 6.4%, or 8.1% for the portion denominated in Brazilian real, 6.0% plus foreign exchange variation for the portion denominated in U.S. dollar contracted by companies in Brazil, and 5.9% for the portion contracted by subsidiaries abroad.

9

Debt composition
(R$ million)	09.30.2013		06.30.2013		12.31.2012
Short Term	1,769		1,770		2,583
Local Currency (Brazil)	435		382		652
Foreign Currency (Brazil)	272		295		469
Companies abroad	1,062		1,093		1,462
Long Term	14,022		13,889		12,086
Local Currency (Brazil)	2,506		1,964		2,240
Foreign Currency (Brazil)	8,146		8,500		6,422
Companies abroad	3,370		3,425		3,424
Gross Debt (principal + interest)	15,791		15,659		14,669
Interest on the debt	(338	)	(344	)	(309	)
Gross Debt (principal)	15,453		15,315		14,360
Cash, cash equivalents and short-term investments	3,512		2,972		2,497
Net Debt (1)	11,941		12,343		11,863

(1) Net debt = gross debt (principal) - cash, cash equivalents and short-term investments

·On September 30, 2013, the gross debt (principal) payment schedule was as follows:

Amortization schedule of gross debt (principal)

Short Term	R$ million
4th quarter of 2013	309
1st quarter of 2014	402
2nd quarter of 2014	276
3rd quarter of 2014	444
Total	1,431

Long Term	R$ million
2014	183
2015	899
2016	395
2017 and after	12,545
Total	14,022

·The Company’s main debt indicators are shown below:

Indicators	09.30.2013		06.30.2013		12.31.2012
Gross debt / Total capitalization (1)	33	%	33	%	33	%
Net debt (2) / EBITDA (3)	2,8x		3,1x		2,8x
EBITDA (3) / Net financial expenses (3)	5,5x		5,0x		6,4x

(1) Total capitalization = shareholders’ equity + gross debt (principal)

(2) Net debt = gross debt (principal) - cash, cash equivalents and short-term investments

(3) Last 12 months

·The net debt/EBITDA indicator on September 30 improved from June 30, reflecting the Company’s efforts to reduce working capital needs and improve the cash generation of its businesses.

10

Corporate governance

Anefac-Fipecafi-Serasa Prize - Transparency Award

·Gerdau won the 17th Anefac-Fipecafi-Serasa - Transparency Award for its 2012 financial statements. This marks the 14th consecutive time that Gerdau was shortlisted among the ten companies presenting the best financial statements and the fourth time that it has received the main award. The companies that entered are headquartered from across the nation and selected from the 500 largest and best private companies in the retail, industrial and services sectors, excluding financial services, as well as from among the 50 largest state-owned companies.

Institutional Investor Ranking 2013

·Gerdau was recognized by the 2013 edition of the ranking sponsored by the magazine Institutional Investor in the Metals & Mining category for Latin American companies. The ranking is based on an annual survey of buy and sell side analysts and aims to identify the best IR, CEO and CFO professionals, as well as the best IR teams. This year Gerdau received the following recognitions:

1st Place — Best Investor Relations Professional

2nd Place — Best Investor Relations Team

2nd Place — Best CEO

3rd Place — Best CFO

Gerdau highlighted as one of the best companies to work for

·Gerdau was recognized as the company with the best performance in the Leadership category of the Você S/A Exame Guide — Best Companies to Work at 2013. The Company also figured among the 24 organizations with the highest scores in the ranking. Developed by the magazines Você S/A and Exame in partnership with the business school Fundação Instituto Administração (FIA), since 1997, the ranking has assessed and selected the 150 companies with the best organizational climate based on the opinions of employees and good people management practices.

World Steel Association recognizes Gerdau for excellence in Health and Safety

·On October 8, during the 47th Annual Conference of World Steel Association, Gerdau was awarded the Safety and Health Excellence Recognition 2013, which assesses successful programs implemented in the steel industry in the fields of occupational health and safety. This is the fourth time that Gerdau has received the recognition. In this edition, Gerdau was awarded for its “Manual of Behavioral Management in Occupational Safety,” which was published in 2012. The manual presents the Company’s best practices in behavioral management for occupational safety, which were compiled based on the experiences implemented at Gerdau units worldwide. Using the manual helps further solidify a culture of safety in the work environment at the global level.

Gerdau launches social media channels

·To improve its interaction with stakeholders, Gerdau launched new social media channels. Now you can obtain information on the Company’s activities through its profiles on Facebook, Twitter, YouTube and LinkedIn.

THE MANAGEMENT

This document contains forward-looking statements. These statements are based on estimates, information or methods that may be incorrect or inaccurate and that may not occur. These estimates are also subject to risk, uncertainties and assumptions that include, among other factors: general economic, political and commercial conditions in Brazil and in the markets where we operate and existing and future government regulations. Potential investors are cautioned that these forward-looking statements do not constitute guarantees of future performance, given that they involve risks and uncertainties. Gerdau does not undertake and expressly waives any obligation to update any of these forward-looking statements, which are valid only on the date on which they were made.

11

GERDAU S.A.

CONSOLIDATED BALANCE SHEETS

In thousands of Brazilian reais (R$)

(Unaudited)

	September 30, 2013	December 31, 2012
CURRENT ASSETS
Cash and cash equivalents	1,965,451	1,437,235
Short-term investments
Held for Trading	1,546,514	1,059,605
Trade accounts receivable - net	4,440,800	3,695,381
Inventories	8,196,754	9,021,542
Tax credits	608,365	601,148
Income and social contribution taxes recoverable	336,355	335,600
Unrealized gains on financial instruments	418	—
Other current assets	304,946	259,886
	17,399,603	16,410,397
NON-CURRENT ASSETS
Tax credits	110,030	119,582
Deferred income taxes	2,164,589	2,210,300
Unrealized gains on financial instruments	678	—
Related parties	82,994	132,478
Judicial deposits	1,090,000	922,578
Other non-current assets	219,202	231,130
Prepaid pension cost	537,711	553,095
Investments in associates and jointly-controlled entities	1,496,801	1,425,605
Goodwill	10,843,579	10,033,396
Other Intangibles	1,456,447	1,364,416
Property, plant and equipment, net	20,806,805	19,690,181
	38,808,836	36,682,761
TOTAL ASSETS	56,208,439	53,093,158

12

GERDAU S.A.

CONSOLIDATED BALANCE SHEETS

In thousands of  Brazilian reais (R$)

(Unaudited)

	September 30, 2013		December 31, 2012
CURRENT LIABILITIES
Trade accounts payable	3,289,279		3,059,684
Short-term debt	1,742,269		2,324,374
Debentures	26,943		257,979
Taxes payable	511,757		440,754
Income and social contribution taxes payable	101,073		87,944
Payroll and related liabilities	706,760		558,634
Dividends payable	—		47,379
Employee benefits	60,038		53,930
Environmental liabilities	14,051		24,536
Unrealized losses on financial instruments	514		1,535
Put options on non-controlling interests	—		607,760
Other current liabilities	496,868		358,673
	6,949,552		7,823,182
NON-CURRENT LIABILITIES
Long-term debt	13,621,990		11,725,868
Debentures	400,168		360,334
Related parties	—		15
Deferred income taxes	1,283,703		1,795,963
Unrealized losses on financial instruments	147		6,664
Provision for tax, civil and labor liabilities	1,253,793		1,081,381
Environmental liabilities	49,657		42,395
Employee benefits	1,204,509		1,187,621
Other non-current liabilities	309,183		271,818
	18,123,150		16,472,059
EQUITY
Capital	19,249,181		19,249,181
Treasury stocks	(283,163	)	(290,240	)
Capital reserves	11,597		11,597
Retained earnings	10,156,760		9,180,210
Operations with non-controlling interests	(1,732,962	)	(1,728,627	)
Other reserves	1,801,697		823,483
EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT	29,203,110		27,245,604
NON-CONTROLLING INTERESTS	1,932,627		1,552,313
EQUITY	31,135,737		28,797,917
TOTAL LIABILITIES AND EQUITY	56,208,439		53,093,158

13

GERDAU S.A.

CONSOLIDATED STATEMENTS OF INCOME

In thousands of Brazilian reais (R$)

(Unaudited)

	For the three-month period ended				For the nine-month period ended
	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
NET SALES	10,494,025		9,819,092		29,542,040		28,993,964
Cost of sales	(8,959,637	)	(8,621,389	)	(25,757,117	)	(25,264,844	)
GROSS PROFIT	1,534,388		1,197,703		3,784,923		3,729,120
Selling expenses	(177,393	)	(150,338	)	(493,622	)	(431,053	)
General and administrative expenses	(494,686	)	(480,084	)	(1,448,994	)	(1,433,829	)
Other operating income	46,229		53,551		145,552		126,431
Other operating expenses	(41,257	)	(49,934	)	(76,373	)	(82,102	)
Equity in earnings of unconsolidated companies	18,363		(3,144	)	34,664		14,187
INCOME BEFORE FINANCIAL INCOME (EXPENSES) AND TAXES	885,644		567,754		1,946,150		1,922,754
Financial income	95,041		66,309		202,300		248,070
Financial expenses	(258,098	)	(216,710	)	(773,495	)	(680,828	)
Exchange variations, net	(45,145	)	21,017		(367,537	)	(119,898	)
Gain and losses on financial instruments, net	2,043		(4,554	)	(7,683	)	(13,711	)
INCOME BEFORE TAXES	679,485		433,816		999,735		1,356,387
Income and social contribution taxes
Current	(113,680	)	(93,287	)	(250,509	)	(342,003	)
Deferred	75,804		67,888		452,869		339,195
NET INCOME	641,609		408,417		1,202,095		1,353,579
ATTRIBUTABLE TO:
Owners of the parent	595,060		389,176		1,133,637		1,294,611
Non-controlling interests	46,549		19,241		68,458		58,968
	641,609		408,417		1,202,095		1,353,579

14

GERDAU S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS

In thousands of Brazilian reais (R$)

(Unaudited)

	For the nine-month period ended
	September 30, 2013		September 30, 2012
Cash flows from operating activities
Net income for the period	1,202,095		1,353,579
Adjustments to reconcile net income for the period to net cash provided by operating activities
Depreciation and amortization	1,468,004		1,362,084
Equity in earnings of unconsolidated companies	(34,664	)	(14,187	)
Exchange variation, net	367,537		119,898
Losses on financial instruments, net	7,683		13,711
Post-employment benefits	87,489		137,951
Stock based remuneration	25,223		30,857
Income tax	(202,360	)	2,808
Gains on disposal of property, plant and equipment and investments, net	(39,840	)	(6,184	)
Allowance for doubtful accounts	41,248		31,915
Provision for tax, labor and civil claims	167,124		141,730
Interest income on investments	(83,311	)	(132,362	)
Interest expense on loans	652,990		592,059
Interest on loans with related parties	(1,522	)	(729	)
Provision for net realizable value adjustment in inventory	30,573		86,901
Release of allowance for inventory against cost upon sale of the inventory	(54,016	)	(37,321	)
	3,634,253		3,682,710
Changes in assets and liabilities
Increase in trade accounts receivable	(522,228	)	(409,914	)
Decrease (Increase) in inventories	1,125,335		(469,336	)
Increase (Decrease) in trade accounts payable	28,498		(217,923	)
Increase in other receivables	(163,439	)	(603,421	)
Increase (Decrease) in other payables	274,840		(86,681	)
Dividends from jointly-controlled entities	36,296		46,614
Purchases of trading securities	(2,170,059	)	(1,561,682	)
Proceeds from maturities and sales of trading securities	1,793,347		3,539,548
Cash provided by operating activities	4,036,843		3,919,915
Interest paid on loans and financing	(554,605	)	(481,351	)
Income and social contribution taxes paid	(274,499	)	(275,701	)
Net cash provided by operating activities	3,207,739		3,162,863
Cash flows from investing activities
Additions to property, plant and equipment	(1,921,005	)	(2,445,274	)
Proceeds from sales of property, plant and equipment, investments and other intangibles	122,091		34,578
Additions to other intangibles	(115,327	)	(104,865	)
Advance for capital increase in jointly-controlled entity	(77,103	)	(206,214	)
Cash and cash equivalents consolidated in business combinations	—		16,916
Payment for business acquisitions, net of cash of acquired entities	(55,622	)	—
Net cash used in investing activities	(2,046,966	)	(2,704,859	)
Cash flows from financing activities
Increase (Reduction) of capital by non-controlling interests in subsidiaries	348,823		(76,623	)
Purchase of treasury shares	—		(44,932	)
Proceeds from exercise of shares	3,050		5,536
Dividends and interest on capital paid	(237,617	)	(416,342	)
Proceeds from loans and financing	4,039,613		1,196,308
Repayment of loans and financing	(4,223,637	)	(1,023,333	)
Intercompany loans, net	50,992		(267	)
Increase in controlling interest in subsidiaries	(33,090	)	—
Put-Options on non-controlling interest	(599,195	)	—
Net cash (used) provided in financing activities	(651,061	)	(359,653	)
Exchange variation on cash and cash equivalents	18,504		90,611
Increase in cash and cash equivalents	528,216		188,962
Cash and cash equivalents at beginning of period	1,437,235		1,476,599
Cash and cash equivalents at end of period	1,965,451		1,665,561

15