Classification of Information

Grupo de Acesso:

1Q18 Presentation

Public

Agenda

Usiminas and its

business units

Market

Outlook

Financial Results Usiminas

Profile

2

Company Profile

3

Complete solution for products and services

Steel company with the largest number of patents rights in Latin America

Largest Research Center in the steel sector in Latin America

First Brazilian steel company to have its quality system certified by ISO 9001 in 1992

First Brazilian steel company and second in the world to achieve the ISO 14001 environmental

management certificate in 1996

Founded of the most enduring environmental education project of the private sector since 1984

4

Operation

Start Up

Cosipa

privatization

Launch of

ADR I program

on the OTC

Market (New

York)

•Acquisition

of iron ore

mines

•Acquisition

of

Zamprogna

•Creation of Soluções Usiminas

•One CNPJ: Usiminas

incorporates Cosipa

•Creation of Mineração Usiminas

•Acquisition of Codeme

and Metform stake

Automotiva

Usiminas

Divestment

•Selling of

Ternium stake

•Joint Mining

Agreements

with MBL e

Ferrous

Entrance of

Ternium /

Tenaris into

Usiminas

Control Group

(New

shareholders

agreement)

•Usiminas

privatization

•Listing on

BOVESPA

1993

Listing on

LATIBEX

stock

exchange

section

2011

2012 1962

2005

1994

2013

1991

2008

2010

2009

2014

Friables Project

conclusion on Mining

2015

Temporary

shutdown

of the

primary

areas in

Cubatão

2016

•R$ 1 billion

capital

increase

•Debt

Renegotiation

2017

R$ 1 billion

Mineração

Usiminas’

capital

reduction

2018

BF #1 Relight in Ipatinga (Shutted

down in Jun. 2015)

Timeline

Control Group:

68,57% of Voting Capital

Total Capital

1,253,079,108

Voting Capital Preferred

ON 56.28% 705,260,684 PN 43.72% 547,818,424

Shareholding Composition

5

Usiminas shares are traded on B3 (São Paulo), on the OTC Market (New York) and on a LATIBEX exchange

section (Madrid).

Nippon Group

0.57%

Others

97.64%

Ternium/Tenaris Group 1.79%

Controllers Agreement

Nippon Group

31.45%

Usiminas Pension

Fund

4.84%

Others

23.19%

Nippon Group

0.95%

Ternium/Tenaris Group 7,29%

Ternium/Tenaris

Group

32,28%

6

Complete Solution for Products and Services

Business Units

Mineração Usiminas

Mining

Steel

Ipatinga Plant

Cubatão Plant

Unigal Usiminas

Steel Processing

Soluções Usiminas

Capital Goods

Usiminas Mecânica

DOWNSTREAM UPSTREAM

Mining

Steel

Steel Processing

Capital Goods

Strategically Located

7

Social and Environmental Initiatives

8

Usiminas Cultural Institute

Usiminas invested over R$260 million,

encouraging around 2,000 social projects First educational institution in Brazil

to obtain ISO 9001

São Francisco Xavier School

Márcio Cunha Hospital

Reference center in healthcare all over Brazil

Xerimbabo Usiminas Project Promotes protection and environmental education

free of charge for more than 2 million young people

11,62 10,55

12,30

4,02

8,26

10,83 12,31

10,12 10,52

5,05

1,55

4,10

9,10

10,92

2012 2013 2014 2015 2016 2017 1T18

USIM3 USIM5

Note: The prices are adjusted by removing the effects of events such as Bonus and Unfolding

9

Shares’ Quotation on B3 R$/share - Up to 03/31/2018

Agenda

Usiminas and its

business units

Market

Outlook

Financial

Results

Usiminas Profile

10

24,1

34,4

37,5

43,3

71,1

71,3

81,6

101,4

104,7

831,7

Italy

Brazil

Turkey

Germany

South Korea

Russia

USA

India

Japan

China

World Crude Steel Market in 2017

Million Tons

Source: World Steel Association/OECD

11

Nominal

Capacity

2,351

Production

1,690

Excess of Capacity 661

36%

22%

16%

10%

4%

2% 1%

9%

China

Asia and Oceania

European Union

North America

South America

Europe (others)

Africa

Others

49%

22%

10%

7%

3% 3%

1% 6%

World Crude Steel Production

1,348 million tons 1,690 million tons

12 Source: World Steel Association

2017 2007

*Except China

+25%

Brazilian Flat Steel Market

13

Million Tons

Source: Instituto Aço Brasil / Usiminas – Excludes Slabs

14,3

11,9

15,2 14,3

14,9 15,0 14,2

13,4

12,3

13,7 13,1

10,2

14,5 13,7

14,3 14,7

13,2

10,6

9,3

10,4

7%

11%

22%

14% 13% 12%

15% 15%

8%

13%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production Consumption Imports

2.141 2.209 2.347 2.351 2.330

311 302

393 308 317 2.141 2.209

2.347 2.351 2.330

1Q17 2Q17 3Q17 4Q17 1Q18

Sales of the Plants Imports Total Source: Usiminas – Commercial Planning 14

+2,9%

-0,9%

Brazilian Flat Steel Apparent Consumption Evolution

Quarterly - Thousand Tons

Auto Industry

and Autoparts Oil and Gas Pipelines

Agricultural and

Road Machinery

Heavy Plates and

Hot Rolled

Civil

Construction

Household

Appliances

Cold Rolled and

Galvanized

15

Flat Steel Consumption Markets

Hot Rolled,

Cold Rolled and

Galvanized

Heavy Plates,

Hot Rolled,

Cold Rolled and

Galvanized

Heavy Plates and

Hot Rolled

Heavy Plates and

Hot Rolled

Agenda

Usiminas and its

business units

Market

Outlook

Financial

Results

Usiminas Profile

16

825 840 882 894 919

105 150

134 196 170

930 990 1.016

1.090 1.089

1Q17 2Q17 3Q17 4Q17 1Q18

Exports Domestic Market

17

Vendas de Aço – Siderurgia - Trimestral

+3%

-14%

SALES VOLUME- STEEL

Steel Business Unit – Quarterly - Thousand Tons

37%

27%

6%

5%

5%

4%

4% 3%

2%

1% 6%

1Q18

28%

31% 5%

3%

13%

1%

1% 1% 5%

10% 2%

4Q17

Argentina

Germany

Belgium

Mexico

United Kingdom

Switzerland

Italy

Colombia

Portugal

Spain

Luxembourg

Others

18

Europe: 49% Europe: 66%

Exports – Main Markets

%

36%

14% 13%

8%

7%

6%

5%

3%

9%

1Q18

Steel Business Unit

19

Cost of Goods Sold - COGS

35%

15%

13%

9%

8%

6%

5%

3% -4%

10%

4Q17

Other Raw Materials

Labor (direct and indirect)

Coal and Coke

Energy and Fuels

Iron Ore and Pellets

Spare Parts

Depreciation

Structural Expenses

Inventories Variation

Others

20

EBITDA AND EBITDA MARGIN

465 498 438 405

569

21% 20%

17%

15%

19%

1Q17 2Q17 3Q17 4Q17 1Q18

Reported EBITDA Reported EBITDA Margin

Steel Business Unit – Quarterly - R$ Million

Capacity increase to generate finished products

7.2 million t 9.7 million t

(2010) (2014)

Investments

21

Steel Business Unit

Slabs

Heavy Plates

Hot Rolled Cold Rolled

Hot dip galvanized Electrogalvanized

Total Hot Rolled Cold Rolled Heavy Plates Electrogalvanized HDG

2,200 Total production capacity of

products for sale 4,200 1,900 1,020 350

Galvanized

Theoretical nominal capacity * of production and sale

22

* According to the theoretical mix of sales in the implementation of the line;

** Excluding the temporarily suspended capacities of Heavy Plates and Hot Strip Laminator #1 in Cubatão.

2,200 2,070 900 900 350 Generation of products for sale

with the equipment in operation **

9,670

6,620

Crude steel capacity of 9.5 million tons, being 5 million tons in Ipatinga and 4.5 million in Cubatão, which had the operation of its

primary areas temporarily suspended and currently processes acquired plates.

Thousand Tons

Start up in 2010

Meets the requirements of

Petrobras, focused on pre-

salt, besides the

shipbuilding sector

CLC Technology (Accelerated Cooling Process for Heavy Plates)

Galvanizing Line

Start up in 2011

Double the capacity to 1

million tons /year

Higher expertise in ultra-

resistant steel production

(dual phase)

23

Investments Steel Business Unit

Start up in 2012

Capacity to process 2.3 million

tons / year

Improving products’ portfolio

(beams, ultra resistant wheels,

higher grades API’s)

Hot Strip Mill

Start up in 2013

Capacity to process 1.7 million

tons / year

Better thickness tolerance,

flatness and surface controls

of materials for wheels, beams

and compressors

Pickling Line

24

Investments Steel Business Unit

o Met coke with adequate specifications for pig iron production in the blast furnace process

o Started up on May 2015

25

Coke Plant Revamp - Ipatinga

o Reduction of particle emissions, gases and volatile substances

o Coke gas to be used in the operational

facilities of Ipating Mill and electric energy

production

o Coke plant total capacity of 1,1 million

tons/year

Mainly Investment Concluded in 2015 Steel Business Unit

o Located in Serra Azul/Minas Gerais state

o 4 mining sites, acquired from J. Mendes in February, 2008

o Reserves of 2.6 billion tons of iron ore

o It has 20% of voting shares of MRS Logistica, being part of the Control Group

o Retroarea in Itaguaí Port

Description

26

Mining Business Unit

Production Capacity

Lump 2 million

Sinter Feed

4 million

Pellet Feed

6 million

70%

30%

Shareholder Composition

MBL

Arcelor Mittal

Ferrous (Santanense)

Comisa Emicon

MMX

Ferrous

MUSA Pau de Vinho

MUSA Leste

Minerita

MUSA Central

MUSA Oeste

Itatiaiuçu

Igarapé São Joaquim De Bicas

Mineração Usiminas

Location

Mining Business Unit

27

Increased capacity from 8 million to 12 million tons / year of iron ore

Iron ore with better quality, higher concentration of iron content and

lower impurity level

Two iron ore processing plants

Friables Project

28

Investments

Mining Business Unit

615 596 676

605 555

28 33

53 179 167

175

716

1.084

643 629

904

1.500

1.806

1Q17 2Q17 3Q17 4Q17 1Q18

Sales to Usiminas Sales to 3rd parties - Domestic Market Exports Total29

+20%

IRON ORE SALES Mining Business Unit – Quarterly - Thousand Tons

30

Iron Ore Price – PLATTS (62% Fe CFR China)

US$/ton

86

63 71

66 74

1Q17 2Q17 3Q17 4Q17 1Q18

Iron Ore Price - US$/t CFR China

EBITDA AND EBITDA MARGIN

31

52

226

27 41 49

48%

253%

22% 20% 19%

1Q17 2Q17 3Q17 4Q17 1Q18

Reported EBITDA Reported EBITDA Margin

*Extraordinary effect of R$ 201 milhões from Porto Sudeste’s agreement

*

Mining Business Unit – Quarterly - R$ million

o 6 industrial units in different Brazilian states:

MG, SP, RS, ES and PE

o Processing capacity of 2 million tons of

steel/year

o Net Revenue of R$2.5 billion in 2017

Description

Soluções Usiminas - Steel Processing

32

Porto Alegre

Guarulhos

Taubaté

Suape

Betim

Santa Luzia

33

37

27

18 19

29

7%

5%

3% 3%

4%

1Q17 2Q17 3Q17 4Q17 1Q18

Reported EBITDA Reported EBITDA Margin

EBITDA AND EBITDA MARGIN

Steel Transformation - Soluções USIMINAS – Quarterly - R$ Million

o Facilities in Ipatinga/Minas Gerais state, Congonhas/Minas Gerais state and in

Cubatão/São Paulo state

o Market Segments: Steel Structures, Shipbuilding and Offshore, Oil and Gas, Industrial

Assembly and Equipment, Foundry and Railcars

o Net Revenue of R$288 million in 2017

Usiminas Mecânica - Capital Goods

Description

Brasília 3rd Bridge

34

Steel Structures

35

EBITDA AND EBITDA MARGIN

(4) (2)

(25)

(2)

33

-5%

-2%

-35%

-4%

29%

1Q17 2Q17 3Q17 4Q17 1Q18

Reported EBITDA Reported EBITDA Margin

*

*Extraordinary effect of R$ 22 million negative related to Regularize Program adherence.

Capital Goods – USIMINAS Mecânica – Quarterly - R$ Million

Agenda

Usiminas and its

business units

Market

Data

Financial

Results

Usiminas

Profile

36

37

EBITDA AND EBITDA MARGIN

533

750

453 450

641

23%

29%

17%

15%

20%

1Q17 2Q17 3Q17 4Q17 1Q18Reported EBITDA Reported EBITDA Margin

* **

*Extraordinary effect of R$ 201 million from Porto Sudeste’s agreement

**Extraordinary effect of R$ 40 million negative related to Regularize Program participation.

Consolidated– Quarterly - R$ Million

1.260

11 77

331

610

877 875 875 874

107

303

15

77

144

208 208 208 208

26

1.563

11 92

408

754

1.086 1.083 1.083 1.083

133

Cash 2018 2019 2020 2021 2022 2023 2024 2025 2026

Local Currency Foreign Currency

Duration: R$: 50 months US$: 56 months

38

Consolidated – R$ millions

Debt Profile (Principal)

CASH POSTION AND INDEBTEDNESS (WITH INTEREST MONEY)

Duration : R$: 50 months US$: 56 months

39

Consolidated – R$ millions

2.416 1.951 2.138 2.314

1.563

4.464 4.998 4.722 4.342

4.117

6.879 6.950 6.860 6.656

5.680

1Q17 2Q17 3Q17 4Q17 1Q18

Net Debt Cash Gross Debt

40

CAPEX Consolidated – R$ millions

18 25

42

90

56

2

2

1

5

1

1

2

3

4

4

3

5

5

9

4

23

34

52

107

65

1Q17 2Q17 3Q17 4Q17 1Q18

Steel Capital Goods Steel Transformation Mining Total

41

93 97

106 109 103

4,0% 3,8%

3,9%

3,5%

3,2%

1Q17 2Q17 3Q17 4Q17 1Q18

G&A G&A/Net Revenues

G&A EVOLUTION - CONSOLIDATED

R$ million

2,6

3,1 3,1

2,8 3,0

1Q17 2Q17 3Q17 4Q17 1Q18

Working Capital42

Consolidated – R$ billions

WORKING CAPITAL

+5.6 %

648 620

599

554 566

1Q17 2Q17 3Q17 4Q17 1Q18

Inventory turnover (days)

63 56 54 47 47

43

WORKING CAPITAL: STEEL INVENTORIES

Thousand tons

481

382 358

414

612

185

367

107

71

324

108

176

76

(45)

157

1Q17 2Q17 3Q17 4Q17 1Q18

Gross Profit EBIT Net Income44

USD/BRL 3.168 3.308 3.168 3.308 3.324 END OF PERIOD

Gross Profit, EBIT and Net Income

Consolidated - R$ million

Income Statement

Per Business Unit – R$ million - Quarterly

Note: All intercompany transactions are made at arm´s length basis

45

R$ million

1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17 1Q18 4Q17

Net Revenue 252 206 3,003 2,761 703 667 113 51 (827) (608) 3,244 3,077

Domestic Market 77 61 2,580 2,329 703 667 113 51 (827) (608) 2,646 2,500

Exports 175 145 423 432 - - - - - - 598 577

COGS (179) (154) (2,460) (2,371) (656) (629) (74) (54) 737 545 (2,632) (2,662)

Gross Profit (Loss) 73 52 543 390 47 38 39 (4) (90) (62) 612 415

Operating Income (Expenses) (56) (48) (196) (267) (26) (28) (12) (3) 2 2 (288) (344)

Selling (25) (18) (37) (36) (10) (11) (3) (4) (1) (1) (76) (70)

General and Administrative (6) (3) (78) (86) (13) (14) (9) (8) 3 3 (103) (108)

Others, Net (25) (27) (81) (145) (3) (2) - 8 - - (109) (166)

EBIT 17 4 347 123 21 11 27 (7) (88) (60) 324 71

Adjusted EBITDA 49 42 568 404 29 19 32 (2) (37) (12) 641 451

Adj.EBITDA Margin 19% 20% 19% 15% 4% 3% 29% -4% 5% 2% 20% 15%

*Consolidated 70% of Unigal   

AdjustmentCapital GoodsSteel

ProcessingSteel*Mining Consolidated

Income Statement per Business Units - Non Audited - Quarterly

Declarations relative to business perspectives of the Company, operating and

financial results and projections, and references to the growth of the Company,

constitute mere forecasts and were based on Management’s expectations in

relation to future performance. These expectations are highly dependent on

market behavior, on Brazil’s economic situation, on the industry and on

international markets, and are therefore subject to change.

www.usiminas.com/ri

ADR

Nível I

Leonardo Karam Rosa IR Manager

leonardo.rosa@usiminas.com Tel: 55 31 3499-8550

Danielle Ap. Maia IR Analyst

danielle.aparecida@usiminas.com Tel: 55 31 3499-8550

Investors Relations