Exhibit 99.1

GERDAU S.A. and subsidiaries

Quarterly Results - 4Q13

Feb. 21, 2014

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. Recently it began operating in two new markets in Brazil with its entry into the production of flat steel and the expansion of its iron ore activities, initiatives which expanded its product mix and made its operations even more competitive. With over 45,000 employees, Gerdau has industrial operations in 14 countries in the Americas, Europe and Asia, which together represent installed capacity of over 25 million tonnes 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 120,000 shareholders, Gerdau is listed on the São Paulo, New York and Madrid stock exchanges.

Highlights in the fourth quarter of 2013

	4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
Key Information	2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Production of Crude Steel (1,000 tonnes)	4,446		4,186		6.2	%	4,507		-1.4	%	18,009		18,920		-4.8	%
Shipments (1,000 t)	4,555		4,317		5.5	%	4,775		-4.6	%	18,519		18,594		-0.4	%
Net Sales (R$ million)	10,321		8,988		14.8	%	10,494		-1.6	%	39,863		37,982		5.0	%
EBITDA (R$ million)	1,370		891		53.8	%	1,413		-3.0	%	4,784		4,176		14.6	%
Net Income (R$ million)	492		143		244.1	%	642		-23.4	%	1,694		1,496		13.2	%
Gross margin	13.1	%	11.3	%			14.6	%			12.9	%	12.5	%
EBITDA Margin	13.3	%	9.9	%			13.5	%			12.0	%	11.0	%
Shareholders’ equity (R$ million)	32,021		28,798				31,136				32,021		28,798
Total Assets (R$ million)	58,215		53,093				56,208				58,215		53,093
Gross debt / Total capitalization (1)	34.0	%	33.0	%			33.0	%			34.0	%	33.0	%
Net debt(2) / EBITDA (3)	2,5x		2,8x				2,8x				2,5x		2,8x

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

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

(3) EBITDA in the last 12 months

World steel market

Steel Industry Production	4th Quarter	4th Quarter	Variation		3rd Quarter	Variation		Fiscal Year	Fiscal Year	Variation
(1,000 tonnes)	2013	2012	4Q13/4Q12		2013	4Q13/3Q13		2013	2012	2013/2012
Crude Steel
Brazil	8,340	8,445	-1.2	%	8,877	-6.0	%	34,178	34,524	-1.0	%
North America (except Mexico)	24,876	24,107	3.2	%	25,293	-1.6	%	99,415	102,202	-2.7	%
Latin America (except Brazil)	8,238	8,683	-5.1	%	8,580	-4.0	%	31,692	31,347	1.1	%
China	188,311	176,591	6.6	%	197,510	-4.7	%	779,040	724,688	7.5	%
Others	191,221	180,284	6.1	%	156,158	22.5	%	662,876	660,139	0.4	%
Total (1)	420,986	398,110	5.7	%	396,418	6.2	%	1,607,200	1,552,900	3.5	%

Source: worldsteel and Gerdau

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

· In 4Q13, world steel production grew in relation to 4Q12 (see table above), led by China. Production performance in the regions where Gerdau operates was as follows: (i) in Brazil, the reduction was due to lower exports in the quarter and the destocking trend in the steel chain; (ii) in North America, the increase was driven by the gradual recovery in demand; and (iii) in Latin America, the reduction was mainly due to the high levels of imports in the region’s various countries. China remained an important player in the international market, accounting for 44.7% of world steel production. Average capacity utilization in the world steel industry stood at 78.1% in 2013. However, in December, capacity utilization stood at 74.2% due to seasonal factors.

· On October 7, 2013, World Steel Association released its Short Range Outlook (latest available data) containing forecasts for global apparent steel consumption in 2014, in which it estimated growth at 3.3%. 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 - stabilized over the course of the year. In 2013, some emerging countries did not perform as expected, although China has been an exception. For 2014, worldsteel expects continued recovery in world steel demand, 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 weigh on growth in these economies.

Gerdau’s performance in the fourth 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 steel operations in Brazil (except special steel), the iron ore operation in Brazil 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;

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

Crude steel production

Production	4th Quarter	4th Quarter	Variation		3rd Quarter	Variation		Fiscal Year	Fiscal Year	Variation
(1,000 tons)	2013	2012	4Q13/4Q12		2013	4Q13/3Q13		2013	2012	2013/2012
Crude Steel (slabs/blooms/billets)
Brazil	1,691	1,702	-0.6	%	1,794	-5.7	%	6,963	7,204	-3.3	%
North America	1,549	1,425	8.7	%	1,457	6.3	%	6,121	6,900	-11.3	%
Latin America	426	408	4.4	%	444	-4.1	%	1,726	1,840	-6.2	%
Special Steel	780	651	19.8	%	812	-3.9	%	3,199	2,976	7.5	%
Total	4,446	4,186	6.2	%	4,507	-1.4	%	18,009	18,920	-4.8	%

· On a consolidated basis, production in 4Q13 grew in relation to 4Q12, driven by higher shipments, especially in the Special Steel and North America BOs. In the Special Steel BO, the higher production volumes in 4Q13 also consider the new mill in India, which had not yet started operations in 4Q12.

· Compared to 3Q13, the slight reduction in consolidated production was due to the seasonality of 4Q13, with the exception the North America BO, which in 3Q13 underwent a process to optimize inventories, with production growth lagging the growth in shipments.

· In fiscal year 2013 compared to 2012, the growth in production lagged the growth in shipments in virtually all Business Operations due to the efforts made to optimize working capital, especially the reduction in inventories.

Crude Steel Production

(in thousands of tonnes)

Shipments

Consolidated Shipments	4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
(1,000 tons)	2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Brazil (1)	1,792		1,814		-1.2	%	1,913		-6.3	%	7,281		7,299		-0.2	%
Domestic Market	1,416		1,294		9.4	%	1,544		-8.3	%	5,883		5,320		10.6	%
Exports	376		520		-27.7	%	369		1.9	%	1,398		1,979		-29.4	%
North America	1,476		1,359		8.6	%	1,608		-8.2	%	6,145		6,472		-5.1	%
Latin America	715		647		10.5	%	720		-0.7	%	2,807		2,707		3.7	%
Special Steel	711		603		17.9	%	713		-0.3	%	2,857		2,657		7.5	%
Eliminations and Adjustments	(139	)	(106	)			(179	)			(571	)	(541	)
Total	4,555		4,317		5.5	%	4,775		-4.6	%	18,519		18,594		-0.4	%

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

· Consolidated shipments registered growth in 4Q13 compared to 4Q12, with distinct performances in the various business operations. In the Brazil BO, shipments to the domestic

market grew driven by strong demand, especially in the infrastructure and commercial construction sectors. On the other hand, exports were reduced by the international market still slightly demanded and by steel overcapacity in the world. In the North America BO, the growth in shipments in 4Q13 was due to the better current economic scenario and the low level of shipments in 4Q12, a period that reflected the uncertainties regarding U.S. fiscal policy. In the Special Steel BO, shipments grew in all countries where Gerdau operates, including India, where the new rolling mill began operations in early 2013. In the Latin America BO, stronger shipments were observed mainly at the units in Colombia, Peru and Chile.

· Compared to 3Q13, the decrease in consolidated shipments is attributed to the typical seasonality of the fourth quarter.

· In fiscal year 2013, consolidated shipments were virtually stable in relation to 2012. In the Brazil BO, as was the case in the consolidated result, sales remained stable but posted significant growth in the domestic market. On the other hand, exports were reduced by the international market still slightly demanded and by steel overcapacity in the world. In the North America BO, the lower shipments in the period are explained by the market’s slow growth in 2013 and by the growing share of imported products due to the stronger U.S. dollar. In the Latin America BO, shipments increased in the period driven by the solid economic growth observed in the countries in which Gerdau operates. In the Special Steel BO, the recovery in shipments was driven by the improvement in Brazil’s heavy vehicle industry, following implementation of the Euro 5 emissions standard, and by the shipments resulting from the first year of operations of the mill in India.

Consolidated Shipments

(breakdown by BO)

Net sales

Net Sales	4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
(R$ million)	2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Brazil (1)	3,988		3,589		11.1	%	3,986		0.1	%	15,111		14,100		7.2	%
Domestic Market	3,229		2,792		15.7	%	3,457		-6.6	%	12,921		11,341		13.9	%
Exports	759		797		-4.8	%	529		43.5	%	2,190		2,759		-20.6	%
North America	3,102		2,709		14.5	%	3,443		-9.9	%	12,562		12,450		0.9	%
Latin America	1,464		1,219		20.1	%	1,426		2.7	%	5,366		4,964		8.1	%
Special Steel	2,044		1,713		19.3	%	2,045		0.0	%	8,023		7,389		8.6	%
Eliminations and Adjustments	(277	)	(242	)			(406	)			(1,199	)	(921	)
Total	10,321		8,988		14.8	%	10,494		-1.6	%	39,863		37,982		5.0	%

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

· In 4Q13, consolidated net sales grew in relation to 4Q12 in all Business Operations due to different reasons. In the Brazil BO, the growth in net sales was due to higher shipments of steel products to the domestic market and to the increase in net sales per tonne sold. Moreover, the higher shipments of iron ore in 4Q13 in relation to 4Q12 prevented export net sales from suffering the effects from lower exports of steel products. In the North America BO, the growth in net sales was driven by higher shipments and higher net sales per tonne sold, which was influenced by exchange variation in the period (depreciation of +10.6% in the Brazilian real against the U.S. dollar, average in period). In the Latin America BO, the growth in net sales growth was due to

the higher shipments and higher net sales per tonne sold. In the Special Steel BO, the growth in net sales is explained mainly by the higher shipments in all countries where Gerdau operates.

· In relation to 3Q13, consolidated net sales decreased in relation to 4Q13, mainly due to the lower shipments in all Business Operations. In the Brazil BO, the decrease in net sales due to lower shipments of steel products was offset mainly by the higher net sales driven by the growth in iron ore shipments to third parties, which resulted in stable net sales in the business operation.

· In fiscal year 2013 compared to 2012, consolidated net sales grew influenced by different aspects in each Business Operation. In the Brazil BO, net sales grew driven primarily by higher shipments to the domestic market. In the Special Steel and Latin America BOs, higher shipments and the increase in net sales per tonne sold were the main factors influencing net sales growth. In the North America BO, net sales were virtually stable, with the increase in net sales per tonne sold, which was influenced by exchange variation in the period (depreciation of 10.4% in the Brazilian real against the U.S. dollar, average in period), offsetting the reduction in shipments.

Cost of goods sold and gross margin

		4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
Cost of Goods Sold and Gross Margin		2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Brazil	Net sales (R$ million)	3,988		3,589		11.1	%	3,986		0.1	%	15,111		14,100		7.2	%
	Cost of goods sold (R$ million)	(3,081	)	(2,872	)	7.3	%	(2,981	)	3.4	%	(11,894	)	(11,630	)	2.3	%
	Gross profit (R$ million)	907		717		26.5	%	1,005		-9.8	%	3,217		2,470		30.2	%
	Gross margin (%)	22.7	%	20.0	%			25.2	%			21.3	%	17.5	%

North America	Net sales (R$ million)	3,102		2,709		14.5	%	3,443		-9.9	%	12,562		12,450		0.9	%
	Cost of goods sold (R$ million)	(2,964	)	(2,621	)	13.1	%	(3,295	)	-10.0	%	(11,919	)	(11,453	)	4.1	%
	Gross profit (R$ million)	138		88		56.8	%	148		-6.8	%	643		997		-35.5	%
	Gross margin (%)	4.4	%	3.2	%			4.3	%			5.1	%	8.0	%

Latin America	Net sales (R$ million)	1,464		1,219		20.1	%	1,426		2.7	%	5,366		4,964		8.1	%
	Cost of goods sold (R$ million)	(1,295	)	(1,175	)	10.2	%	(1,264	)	2.5	%	(4,801	)	(4,635	)	3.6	%
	Gross profit (R$ million)	169		44		284.1	%	162		4.3	%	565		329		71.7	%
	Gross margin (%)	11.5	%	3.6	%			11.4	%			10.5	%	6.6	%

Special Steel	Net sales (R$ million)	2,044		1,713		19.3	%	2,045		0.0	%	8,023		7,389		8.6	%
	Cost of goods sold (R$ million)	(1,911	)	(1,528	)	25.1	%	(1,823	)	4.8	%	(7,309	)	(6,421	)	13.8	%
	Gross profit (R$ million)	133		185		-28.1	%	222		-40.1	%	714		968		-26.2	%
	Gross margin (%)	6.5	%	10.8	%			10.9	%			8.9	%	13.1	%

Eliminations and Adjustments	Net sales (R$ million)	(277	)	(242	)			(406	)			(1,199	)	(921	)
Eliminations and Adjustments	Cost of goods sold (R$ million)	280		227				403				1,195		905
	Gross profit (R$ million)	3		(15	)			(3	)			(4	)	(16	)

Consolidated	Net sales (R$ million)	10,321		8,988		14.8	%	10,494		-1.6	%	39,863		37,982		5.0	%
	Cost of goods sold (R$ million)	(8,971	)	(7,969	)	12.6	%	(8,960	)	0.1	%	(34,728	)	(33,234	)	4.5	%
	Gross profit (R$ million)	1,350		1,019		32.5	%	1,534		-12.0	%	5,135		4,748		8.2	%
	*Gross margin (%)*	*13.1*	%	*11.3*	%			*14.6*	%			*12.9*	%	*12.5*	%

· In the comparison of 4Q13 with 4Q12 on a consolidated basis, cost of goods sold increased due to the higher shipments and higher cost per tonne sold, which, however, was lower than the increase in net sales per tonne sold, leading to gross margin expansion. In the Brazil BO, the increase in cost of goods sold is explained mainly by the higher shipments of iron ore in 4Q13. However, the increase in net sales was higher than the increase in cost of goods sold, leading to gross margin expansion in the period. In the Latin America and North America BOs, the increase in cost of goods sold was mainly due to the higher shipments. This increase in shipments led to higher dilution of fixed costs and consequently to gross margin expansion. 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 2013.

· On a consolidated basis, gross margin decreased in 4Q13 compared to 3Q13, reflecting the weaker performances of the Brazil and Special Steel BOs. In the Brazil BO, the decrease in gross margin was due to the reduction in shipments of steel products to the domestic market, which was partially offset by the increase in gross profit resulting from the growth in iron ore shipments. In the Special Steel BO, the gross margin compression in the period was due to

changes in the geographic mix of shipments, with a lower share of Brazil and a higher share of Spain and India, which have lower margins. On the other hand, in the North America BO, gross margin was flat, with net sales and cost of goods sold decreasing in the same proportion.

· In fiscal year 2013, consolidated gross margin expanded slightly in relation to fiscal year 2012, influenced by different aspects in each Business Operation. In the Brazil BO, gross margin expanded driven by higher shipments to the domestic market and by the growth in net sales per tonne sold outpacing the growth in cost per tonne sold in this market. In the North America BO, gross margin contracted due to the lower gross profit resulting from the lower shipments in the period. In the Latin America BO, the improvement in gross margin was due to the higher dilution of fixed costs resulting from the growth in shipments and the efforts to optimize costs. In the Special Steel BO, the contraction in gross margin is explained by the higher costs related to the learning curve in the India operation and by the reduction in net sales per tonne sold in Spain and the United States.

Selling, general and administrative expenses

SG&A	4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
(R$ million)	2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Selling expenses	165		156		5.8	%	177		-6.8	%	659		587		12.3	%
General and administrative expenses	504		450		12.0	%	495		1.8	%	1,953		1,884		3.7	%
Total	669		606		10.4	%	672		-0.4	%	2,612		2,471		5.7	%
Net Sales	10,321		8,988		14.8	%	10,494		-1.6	%	39,863		37,982		5.0	%
% of net sales	6.5	%	6.7	%			6.4	%			6.6	%	6.5	%

· Selling, general and administrative expenses as a ratio of net sales remained flat in all comparison periods. This demonstrates the Company’s efforts to rationalize these expenses, especially in a period marked by cost pressures and Brazilian real depreciation, which impacts these expenses in our international operations when translated into real.

Equity income

· The jointly controlled entities and associate companies, whose results are calculated using the equity method, recorded steel shipments of 285,000 metric tons in 4Q13, based on their respective equity interests, resulting in net sales of R$ 537.8 million.

· Based on the performance of jointly controlled entities and associate companies, equity income was positive R$ 19.3 million in 4Q13, compared to negative R$ 5.8 million in 4Q12.

EBITDA

Breakdown of Consolidated EBITDA (1)	4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
(R$ million)	2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Net income	492		143		244.1	%	642		-23.4	%	1,694		1,496		13.2	%
Net financial result	355		222		59.9	%	206		72.3	%	1,301		789		64.9	%
Provision for income and social contribution taxes	(39	)	60		—		37		—		(241	)	63		—
Depreciation and amortization	562		466		20.6	%	528		6.4	%	2,030		1,828		11.1	%
EBITDA	1,370		891		53.8	%	1,413		-3.0	%	4,784		4,176		14.6	%
EBITDA Margin	13.3	%	9.9	%			13.5	%			12.0	%	11.0	%

(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	4th Quarter		4th Quarter		3rd Quarter		Fiscal Year		Fiscal Year
(R$ million)	2013		2012		2013		2013		2012
EBITDA (1)	1,370		891		1,413		4,784		4,176
Depreciation and amortization	(562	)	(466	)	(528	)	(2,030	)	(1,828	)
OPERATING INCOME BEFORE FINANCIAL RESULT AND TAXES(2)	808		425		885		2,754		2,348

(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

EBITDA

(breakdown by BO)

		4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
EBITDA by Business Operation		2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Brazil	EBITDA (R$million)	990		703		40.8	%	982		0.8	%	3,228		2,395		34.8	%
	EBITDA margin (%)	24.8	%	19.6	%			24.6	%			21.4	%	17.0	%

North America	EBITDA (R$million)	139		59		135.6	%	129		7.8	%	575		922		-37.6	%
	EBITDA margin (%)	4.5	%	2.2	%			3.7	%			4.6	%	7.4	%

Latin America	EBITDA (R$million)	136		21		547.6	%	131		3.8	%	428		180		137.8	%
	EBITDA margin (%)	9.3	%	1.7	%			9.2	%			8.0	%	3.6	%

Special Steel	EBITDA (R$million)	205		218		-6.0	%	273		-24.9	%	909		1,073		-15.3	%
	EBITDA margin (%)	10.0	%	12.7	%			13.3	%			11.3	%	14.5	%

Eliminations and Adjustments	EBITDA (R$million)	(100	)	(110	)			(102	)			(356	)	(394	)

Consolidated	EBITDA (R$million)	1,370		891		53.8	%	1,413		-3.0	%	4,784		4,176		14.6	%
	*EBITDA margin (%)*	*13.3*	%	*9.9*	%			*13.5*	%			*12.0*	%	*11.0*	%

· Consolidated EBITDA and EBITDA margin increased in 4Q13 compared to 4Q12, due to the growth in consolidated gross profit and the net proceeds from the divestment of commercial properties recorded in the line “other operating income” in the Brazil BO. Note that the divestment of properties is consistent with the Company’s objective of focusing on the strength of its balance sheet and improving the return on its assets. In the Brazil BO, which accounted for 67.3% of EBITDA, the absolute value and margin increased reflecting the improvement in gross profit, as mentioned in the section “Cost of goods sold and gross margin” and the proceeds from the divestment of commercial properties. In the North America BO, which accounted for 9.5% of EBITDA, the improvement in EBITDA and EBITDA margin mainly reflects the gross profit growth driven by higher shipments in the period. In the Latin America BO, which accounted for 9.3% of EBITDA, both EBITDA and EBITDA margin increased, mainly due to the higher shipments and resulting higher dilution of fixed costs. In the Special Steel BO, which accounted for 13.9% of EBITDA, EBITDA and EBITDA margin decreased, mainly explained by the performance of the operation in India, which is in the ramp-up phase.

· On a consolidated basis and comparing 4Q13 with 3Q13, EBITDA decreased slightly, while EBITDA margin was flat, with the performance of each Business Operation varying. In the Brazil BO, the gross margin compression described in the section “Cost of goods sold and gross margin” was offset by the divestment of properties recorded in the line “Other operating income” in 4Q13, leading to a virtually stable absolute EBITDA and EBITDA margin. In the North America BO, despite the stability in gross margin, the increases in EBITDA and EBITDA margin are mainly

explained by the better result in equity income. In the Special Steel BO, the reductions in EBITDA and EBITDA margin were due to the changes in the geographic mix of shipments, with a lower share of Brazil and a higher share of Spain and India, which have lower margins.

· In 2013 compared to 2012, consolidated EBITDA and EBITDA margin grew, driven in large part by the higher share of the Brazil BO, which is explained by the improvement in the performance of the domestic market between the comparison periods and the better results on Latin America BO.

Financial result

Financial Result	4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
(R$ million)	2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Financial income	91		69		31.9	%	95		-4.2	%	293		317		-7.6	%
Financial expenses	(280	)	(272	)	2.9	%	(258	)	8.5	%	(1,053	)	(953	)	10.5	%
Exchange variation, net	(177	)	(14	)	1164.3	%	(45	)	293.3	%	(544	)	(134	)	306.0	%
Exchange variation on net investment hedge	(118	)	(11	)	972.7	%	(15	)	686.7	%	(323	)	(176	)	83.5	%
Exchange variation - other lines	(59	)	(3	)	1866.7	%	(30	)	96.7	%	(221	)	42		—
Gains (losses) on financial instruments, net	11		(5	)	—		2		450.0	%	3		(19	)	—
Financial Result	(355	)	(222	)	59.9	%	(206	)	72.3	%	(1,301	)	(789	)	64.9	%

· In 4Q13 compared to 4Q12, the higher negative financial result mainly reflects the lower negative net exchange variation on liabilities contracted in U.S. dollar, due to the depreciation in the Brazilian real against the U.S. dollar (end of period) of 5.0% in 4Q13 and 0.6% in 4Q12.

· Compared to 3Q13, the higher negative financial result is mainly explained by the negative net exchange variation in 4Q13 due to the depreciation in the Brazilian real against the U.S. dollar (end of period) of 5.0% in 4Q13 and 0.6% in 3Q13.

· In 2013 compared to 2012, the higher negative financial result was mainly due to the exchange variation on liabilities contracted in currencies other than the Brazilian real, mainly the U.S. dollar, and, to a lesser extent, to the higher financial expense caused by the increase in the average interest rate between the periods.

· Note that, in accordance with IFRS, the Company designated the bulk of its debt in foreign currency contracted by companies in Brazil as a hedge for a portion of the investments in subsidiaries located abroad. As a result, only the effect from exchange variation on the portion of debt not linked to investment hedge is recognized in the financial result, with this effect neutralized by the line “Income and Social Contribution taxes on net investment hedge.”

Net income

Net Income	4th Quarter		4th Quarter		Variation		3rd Quarter		Variation		Fiscal Year		Fiscal Year		Variation
(R$ million)	2013		2012		4Q13/4Q12		2013		4Q13/3Q13		2013		2012		2013/2012
Income before taxes (1)	453		203		123.2	%	679		-33.3	%	1,453		1,559		-6.8	%
Income and social contribution taxes (IR/CS)	39		(60	)	—		(37	)	—		241		(63	)	—
IR/CS on net investment hedge	118		11		972.7	%	15		686.7	%	323		134		141.0	%
IR/CS - other lines	(79	)	(71	)	11.3	%	(52	)	51.9	%	(82	)	(197	)	-58.4	%
Consolidated Net Income (1)	492		143		244.1	%	642		-23.4	%	1,694		1,496		13.2	%

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

· Consolidated net income in 4Q13 grew in relation to 4T12, reflecting the higher operating income between the periods. Compared to 3Q13, the decrease in net income is explained by the weaker operating performance due to seasonality and by the higher negative financial result.

· Consolidated net income increased in fiscal year 2013 compared to 2012, driven by the improved operating result, which was partially offset by the negative financial result.

Dividends

· The companies Metalúrgica Gerdau S.A. and Gerdau S.A. approved, based on the results recorded in 4Q13, the prepayment of the minimum mandatory dividend for fiscal year 2013 in the form of dividends, as shown below:

· Payment date: March 17th, 2014

· Record date: March 5th, 2014

· Ex-dividend date: March 6th, 2014

· Metalúrgica Gerdau S.A.

· R$ 32.5 million (R$ 0.08 per share)

· Gerdau S.A.

· R$ 119.3 million (R$ 0.07 per share)

· For 2013, Metalúrgica Gerdau S.A. and Gerdau S.A. have approved the payment of R$ 150.4 million (R$ 0.37 per share) and R$ 476.7 million (R$ 0.28 per share), respectively, in the form of dividends and/or interest on capital.

Investments

· In 4Q13, investments in fixed assets amounted to R$ 677.2 million, bringing total investments in the year to R$ 2.6 billion. Of the amount invested in the year, 58.9% was allocated to the Brazil BO, 20.2% to the Special Steel BO, 14.2% to the North America BO and 6.7% to the Latin America BO.

· In the year, the main investments made in capacity expansion projects were: the expansion of iron ore activities, with the startup of the new ore treatment unit in Miguel Burnier (Minas Gerais) which increased annual production capacity to 11.5 million tonnes; the completion of the installation of the rolling mill to produce coiled hot-rolled strips in Ouro Branco (Minas Gerais) with annual capacity of 800,000 tonnes; the startup of the new rolling mills to produce special steel in Pindamonhangaba (São Paulo) with annual production capacity of 500,000 tonnes, and in India, with annual production capacity of 300,000 tonnes.

· Progress was also made on construction of the new unit in Mexico in conjunction with Corsa to produce structural shapes, with annual capacity of 1 million tonnes of steel and 700,000 tonnes of rolled steel.

Working capital and Cash conversion cycle

· In December 2013, working capital was flat in relation to September 2013, with the cash conversion cycle (working capital divided by daily net sales in the quarter) increasing slightly due to the reduction in net sales between the quarters.

· In December 2013, working capital decreased by 3.6% from December 2012, despite the 14.8% growth in net sales in 4Q13 compared to 4Q12, which demonstrates the Company’s efforts to optimize 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 16 days in relation to December 2012.

· Note that the reduction in working capital of R$ 350.2 million between December 2012 and December 2013 includes the effects from exchange variation, especially on the working capital of companies abroad. Excluding this variation, the cash effect of this reduction in the period was R$ 935.0 million.

Financial liabilities

Debt composition (R$ million)	12.31.2013		9.30.2013		12.31.2012
Short Term	1,838		1,769		2,583
Local Currency (Brazil)	491		435		652
Foreign Currency (Brazil)	262		272		469
Companies abroad	1,085		1,062		1,462
Long Term	14,869		14,022		12,086
Local Currency (Brazil)	2,927		2,506		2,240
Foreign Currency (Brazil)	8,725		8,146		6,422
Companies abroad	3,217		3,370		3,424
Gross Debt (principal + interest)	16,707		15,791		14,669
Interest on the debt	(391	)	(338	)	(309	)
Gross Debt (principal)	16,316		15,453		14,360
Cash, cash equivalents and short-term investments	4,222		3,512		2,497
Net Debt(1)	12,094		11,941		11,863

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

· On December 31, 2013, the composition of gross debt (principal) was 8.9% short term and 91.1% long term. The increase in gross debt on December 31, 2013 compared to December 31, 2012 is mainly due to the effect of exchange variation on loans denominated in currencies other than the Brazilian real in the comparison periods.

· The exposure of gross debt to foreign currency decreased slightly, from 80.3% on December 31, 2012 to 79.5% on December 31, 2013, despite the 14.6% depreciation in the Brazilian real against the U.S. dollar in the period. The reduction in this exposure was due to the Company’s

financial management efforts to reduce currency risk during a period marked by high volatility in the Brazilian real.

· The growth in cash (cash, cash equivalents and financial investments) of R$ 1.7 billion between December 2012 and December 2013 was due to lower working capital needs and higher free cash flow. On December 31, 2013, 49.3% of this cash was held by Gerdau companies abroad and denominated mainly in U.S. dollar.

· The 1.9% increase in the balance of net debt on December 31, 2013 compared to December 31, 2012 is explained by the growth in the Company’s gross debt, which was partially offset by the increase in its cash position in the period.

· On December 31, 2013, the nominal weighted average cost of gross debt (principal) was 6.5%, being 8.6% for the portion denominated in Brazilian real, 5.9% plus exchange variation for the portion denominated in U.S. dollar contracted by companies in Brazil, and 6.1% for the portion contracted by subsidiaries abroad. On December 31, 2013, the average gross debt term was 5.3 years.

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

Indicators	12.31.2013		9.30.2013		12.31.2012
Gross debt / Total capitalization (1)	34	%	33	%	33	%
Net debt(2) / EBITDA (3)	2,5x		2,8x		2,8x
EBITDA (3) / Net financial expenses (3)	6,3x		5,5x		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 ratio on December 31, 2013 improved from December 31, 2012, reflecting the Company’s efforts to reduce working capital needs and improve the cash generation of its businesses.

Indebtedness

(R$ billion)

· On December 31, 2013, the gross debt (principal) payment schedule was as follows:

Amortization schedule of gross debt (principal)

Short Term		R$ million
1st quarter of 2014		462
2nd quarter of 2014		484
3rd quarter of 2014		316
4th quarter of 2014		186
Total		1,448

Long Term		R$ million
2015		959
2016		592
2017		4,058
2018 and after		9,259
Total		14,868

Corporate governance

Corporate Sustainability Index (ISE)

· For the eighth consecutive year, Gerdau S.A. and Metalúrgica Gerdau S.A. figured among the 40 companies forming the new portfolio of the Corporate Sustainability Index (ISE) of the BM&FBOVESPA, which will be valid from January 6, 2014 to January 2, 2015. The index is formed by the stocks of companies that present the most sustainable practices over the long term and a high level of commitment to the themes of corporate governance, social responsibility and environmental aspects.

Apimec Meeting

· In November 2013, Gerdau held meetings in São Paulo and Rio de Janeiro sponsored by the Capital Market Professionals and Investors Association (Apimec) in which approximately 200 people attended.

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.

GERDAU S.A.

CONSOLIDATED BALANCE SHEETS

as of December 31, 2013 and 2012

In thousands of Brazilian reais (R$)

	2013	2012
CURRENT ASSETS
Cash and cash equivalents	2,099,224	1,437,235
Short-term investments
Held for Trading	2,123,168	1,059,605
Trade accounts receivable - net	4,078,806	3,695,381
Inventories	8,499,691	9,021,542
Tax credits	716,806	601,148
Income and social contribution taxes recoverable	367,963	335,600
Unrealized gains on financial instruments	319	0
Other current assets	291,245	259,886
	18,177,222	16,410,397

NON-CURRENT ASSETS
Tax credits	103,469	119,582
Deferred income taxes	2,056,445	2,210,300
Related parties	87,159	132,478
Judicial deposits	1,155,407	922,578
Other non-current assets	220,085	231,130
Prepaid pension cost	555,184	553,095
Investments in associates and jointly-controlled entities	1,590,031	1,425,605
Goodwill	11,353,045	10,033,396
Other Intangibles	1,497,919	1,364,416
Property, plant and equipment, net	21,419,074	19,690,181
	40,037,818	36,682,761

TOTAL ASSETS	58,215,040	53,093,158

GERDAU S.A.

CONSOLIDATED BALANCE SHEETS

as of December 31, 2013 and 2012

In thousands of Brazilian reais (R$)

	2013		2012
CURRENT LIABILITIES
Trade accounts payable	3,271,419		3,059,684
Short-term debt	1,810,783		2,324,374
Debentures	27,584		257,979
Taxes payable	473,773		440,754
Income and social contribution taxes payable	177,434		87,944
Payroll and related liabilities	655,962		558,634
Dividends payable	119,455		47,379
Employee benefits	50,036		53,930
Environmental liabilities	15,149		24,536
Unrealized losses on financial instruments	274		1,535
Put options on non-controlling interests	—		607,760
Other current liabilities	634,761		358,673
	7,236,630		7,823,182

NON-CURRENT LIABILITIES
Long-term debt	14,481,497		11,725,868
Debentures	386,911		360,334
Related parties	43		15
Deferred income taxes	1,187,252		1,795,963
Unrealized losses on financial instruments	3,009		6,664
Provision for tax, civil and labor liabilities	1,294,598		1,081,381
Environmental liabilities	90,514		42,395
Employee benefits	942,319		1,187,621
Other non-current liabilities	571,510		271,818
	18,957,653		16,472,059

EQUITY
Capital	19,249,181		19,249,181
Treasury stocks	(238,971	)	(290,240	)
Capital reserves	11,597		11,597
Retained earnings	10,472,752		9,180,210
Operations with non-controlling interests	(1,732,962	)	(1,728,627	)
Other reserves	2,577,482		823,483
EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT	30,339,079		27,245,604

NON-CONTROLLING INTERESTS	1,681,678		1,552,313

EQUITY	32,020,757		28,797,917

TOTAL LIABILITIES AND EQUITY	58,215,040		53,093,158

GERDAU S.A.

CONSOLIDATED STATEMENTS OF INCOME

for the years ended December 31, 2013 and 2012

In thousands of Brazilian reais (R$)

	For the three-month period ended				For the years ended
	December 31, 2013		December 31, 2012		2013		2012

NET SALES	10,320,997		8,987,704		39,863,037		37,981,668
Cost of sales	(8,971,343	)	(7,969,258	)	(34,728,460	)	(33,234,102	)
GROSS PROFIT	1,349,654		1,018,446		5,134,577		4,747,566
Selling expenses	(165,240	)	(156,316	)	(658,862	)	(587,369	)
General and administrative expenses	(504,020	)	(450,477	)	(1,953,014	)	(1,884,306	)
Other operating income	172,704		117,983		318,256		244,414
Other operating expenses	(64,162	)	(98,351	)	(140,535	)	(180,453	)
Equity in earnings of unconsolidated companies	19,337		(5,834	)	54,001		8,353
INCOME BEFORE FINANCIAL INCOME(EXPENSES) AND TAXES	808,273		425,451		2,754,423		2,348,205
Financial income	90,610		68,541		292,910		316,611
Financial expenses	(279,890	)	(271,851	)	(1,053,385	)	(952,679	)
Exchange variations, net	(176,619	)	(14,230	)	(544,156	)	(134,128	)
Gain and losses on financial instruments, net	10,537		(4,836	)	2,854		(18,547	)
INCOME BEFORE TAXES	452,911		203,075		1,452,646		1,559,462
Income and social contribution taxes
Current	(67,913	)	25,732		(318,422	)	(316,271	)
Deferred	106,609		(86,146	)	559,478		253,049

NET INCOME	491,607		142,661		1,693,702		1,496,240
ATTRIBUTABLE TO:
Owners of the parent	450,094		131,022		1,583,731		1,425,633
Non-controlling interests	41,513		11,639		109,971		70,607
	491,607		142,661		1,693,702		1,496,240

GERDAU S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS

for the years ended December 31, 2013 and 2012

In thousands of Brazilian reais (R$)

	2013		2012

Cash flows from operating activities
Net income for the year	1,693,702		1,496,240
Adjustments to reconcile net income for the year to net cash provided by operating activities
Depreciation and amortization	2,029,507		1,827,499
Equity in earnings of unconsolidated companies	(54,001	)	(8,353	)
Exchange variation, net	544,156		134,128
(Gains) Losses on financial instruments, net	(2,854	)	18,547
Post-employment benefits	95,514		38,665
Stock based remuneration	38,223		36,699
Income tax	(241,056	)	63,222
(Gains) Losses on disposal of property, plant and equipment and investments, net	(133,593	)	7,890
Allowance for doubtful accounts	47,345		50,084
Provision for tax, labor and civil claims	205,167		171,264
Interest income on investments	(135,040	)	(155,638	)
Interest expense on loans	901,273		811,416
Interest on loans with related parties	(1,573	)	(1,594	)
Provision for net realisable value adjustment in inventory	56,752		141,121
Release of allowance for inventory against cost upon sale of the inventory	(61,453	)	(86,710	)
	4,982,069		4,544,480
Changes in assets and liabilities
(Increase) Decrease in trade accounts receivable	(23,790	)	168,134
Decrease (Increase) in inventories	1,018,398		(264,366	)
Decrease in trade accounts payable	(128,942	)	(522,870	)
Decrease (Increase) in other receivables	120,645		(664,819	)
Increase (Decrease) in other payables	162,863		(314,906	)
Dividends from jointly-controlled entities	63,073		47,667
Purchases of trading securities	(3,360,144	)	(2,060,511	)
Proceeds from maturities and sales of trading securities	2,481,935		4,444,636
Cash provided by operating activities	5,316,107		5,377,445

Interest paid on loans and financing	(810,362	)	(698,070	)
Income and social contribution taxes paid	(407,333	)	(335,328	)
Net cash provided by operating activities	4,098,412		4,344,047

Cash flows from investing activities
Additions to property, plant and equipment	(2,598,265	)	(3,127,256	)
Proceeds from sales of property, plant and equipment, investments and other intangibles	237,203		35,334
Additions to other intangibles	(158,395	)	(156,805	)
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	)	—
Increase in controlling interest in associated companies	(51,383	)	—
Net cash used in investing activities	(2,703,565	)	(3,438,025	)

Cash flows from financing activities
Increase (Reduction) of capital by non-controlling interests in subsidiaries	383,788		(116,685	)
Purchase of treasury shares	—		(44,932	)
Proceeds from exercise of shares	35,465		5,269
Dividends and interest on capital paid	(426,988	)	(523,076	)
Proceeds from loans and financing	5,011,654		1,767,350
Repayment of loans and financing	(5,223,100	)	(2,105,228	)
Intercompany loans, net	46,933		(18,992	)
Increase in controlling interest in subsidiaries	(33,090	)	—
Put-Options on non-controlling interest	(599,195	)	—
Net cash (used in) provided by financing activities	(804,533	)	(1,036,294	)

Exchange variation on cash and cash equivalents	71,675		90,908

Increase (Decrease) in cash and cash equivalents	661,989		(39,364	)
Cash and cash equivalents at beginning of year	1,437,235		1,476,599
Cash and cash equivalents at end of year	2,099,224		1,437,235