Apresentação Usiminas

2T11 - APIMEC3Q13 Results

Information Classification: Public

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mestre

Usiminas and its

Business Units

Operational

Improvement

and Financial

Results

Company

Profile and

Market Data

Agenda

2

Aquisition of

J. Mendes

iron ore

mines

Aquisition of

Zamprogna

Foundation

of Soluções

Usiminas due

to the

consolidation

of the

companies

Rio

Negro, Dufer

, Fasal and

Zamprogna,

Usial and

Usicort

Single CNPJ:

Cosipa is

incorporated

by Usiminas

Foundation

of Usiminas

1962-

Operation

Start Up

Privatization

of

Usiminas:19

91

Cosipa: 1993

Listing on

BOVESPA

Listing on

Latibex

Creation of MineraçãoUsiminas

Partnership with Codemeand Metform

Selling of

Ternium

shares

Joint Mining

and

Cooperation

Agreements

with MBL and

Ferrous

Commercial

Agreements

with MMX to

explore Pau

de Vinho and

to use the

Southest Port

Negociation

with J.

Mendes

concluded

1956

1991

2005

2008

2009

2010

2011 Entrance of Ternium/ Tenaris

into Usiminas’ Control Group

New shareholders agreement

signed among Nippon Group,

Ternium / Tenaris and

Usiminas Pension Fund

until 2031

2012

Time Line and Shareholder Composition

3

Sale of

Automotiva

Usiminas *

2013

Listing on

ADR I - NY

* Conditioned to CADE’s approval (CADE is the Brazilian Antitrust Regulator)

1994

4

Mining

Steel

Steel processing

Capital Goods

Strategically Located

Mining

Steel

Steel Processing Capital Goods

UPST

REA

MD

OW

NST

REA

M

IpatingaMetform and Codeme

stake

Cubatão

Unigal Usiminas Mineração Usiminas

Soluções Usiminas Usiminas Mecânica

Complete Solution of Products and Services

5

Automotiva Usiminas

Million tons

32.9

34.7

35.9

42.7

69.3

70.6

76.7

88.6

107.2

708.8

Ukraine

Brazil

Turkey

Germany

South Korea

Russia

India

USA

Japan

China

Source: World Steel Association 6

Capacity

2,090

Production

1,548

Consumption

1,409

Excess of Capacity

542

Excess of Production

139

World Crude Steel Production in 2012

Flat Steel Brazilian Market

Imports (thousand tons)

7

Production (million tons)

Inventories in the Distribution Network

Apparent Consumption (million tons)

Source: IABR / INDA / Usiminas

3.5 3.53.6

3.4 3.4

3.7

4.0

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

3.8

3.9 3.9 3.9

3.6

3.8 3.8

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

519

413

512

335 319 323

607

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

2.8 2.8 2.7 2.62.8

3.12.7

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Million tons Monthly Basis

1.0 1.0 1.0 0.9 1.0 1.1 1.1

Usiminas and its

Business Units

Operational

Improvement

and Financial

Results

Agenda

8

Company

Profile and

Market Data

Installed Nominal Capacity : 9.5 million tons / year

Slabs Hot Coils Cold CoilsHeavy PlatesSlab Caster EG HDG

2,200,000tons

Optimized

Rolling

Capacity

4,200,000tons 1,900,000tons 1,020,000tons350,000tons

Cubatão Plant -1,200,000tons -4,400,000tons1,000,000tons 4,500,000tons

3,700,000tons Nominal

Capacity8,000,000tons 2,000,000tons 9,500,000tons 1,050,000tons360,000tons

-

Ipatinga Plant 1,050,000tons360,000tons 2,500,000tons 3,600,000tons1,000,000tons5,000,000tons

Galvanized

Flat steel production

Steel Business Unit

9

Auto Industries

Cold Rolled and

Galvanized (EG and HDG)

Ship-Building

Heavy Plates

Pipelines

Heavy Plates and Hot

Rolled

Pressure Vessels

Heavy Plates

Agricultural

Machines

Heavy Plates and Hot

Rolled

Civil Construction

Heavy Plates, Hot and Cold

Rolled and Galvanized (EG

and HDG)

Autoparts

Hot Rolled

Household

Appliances

Cold Rolled and

Galvanized (EG and HDG)

Steel Business Unit

Everyday steel application

10

Steel Business Unit

Crude steel production – Thousand tons

Cubatão

Ipatinga

11

1,7831,858

1,549 1,509

1,672

1,845 1,837 1,8041,662

1,749 1,782

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Sales Breakdown by

Segments – 3Q13

Sales – Thousand tons

12

Steel Business Unit

33%

15%7%

10%

36%Auto Industry

Industry in general

Household Appliances

Civil Construction

Distribution

1,246 1,327 1,262 1,209 1,2261,428 1,453

266

561487 522 365

144 112

1,512

1,8881,749 1,731

1,591 1,572 1,565

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Exports Domestic Market

Steel BusinessAdjusted EBITDA / adjusted EBITDA Margin – R$ million

13

117

189

83 74100

201

57 20

178

289

376

4%

7%

3% 3%4%

7%

2%1%

7%

10%

13%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Adjusted EBITDA Adjusted EBITDA Margin

13

The highest EBITDA and EBITDA margin in the Steel Business in the last 3 years

Steel Business Unit

Production capacity of 2.3

million tons per year

Main Applications

Exclusive coils dimensions in Brazil

Pickled Coils up to 1,800 mm wide

Higher product performance and efficiency

Higher productivity for customers

High automation and lower electric energy consumption

High-strength and technology content to the steel products

14

Hot Strip Mill II and New

Pickling Line - CubatãoGalvanizing Line II - Ipatinga

Higher production capacity

Products portfolio increase

Deep drawing steel

Products Inovation

High-strength steels

Excellent flatness

Production capacity of 550

thousand tons per year

Concluded investments

Located in Serra Azul/MG

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

Reserves of 2.6 billion tons of iron ore

Life time until 2045

MRS: 20% of voting shares, being part of the Control Group

Retroarea in Itaguaí Port

MBL

Arcelor Mittal

Ferrous(Santanense)

Comisa

Emicon

MMX

Ferrous

MUSAPau de Vinho

MUSALeste

Minerita

MUSACentral

MUSAOeste

Itatiaiuçu

Igarapé São JoaquimDe Bicas

70.0%

30.0%

Mining - Mineração Usiminas

Mineração Usiminas15

Description

Production - Thousand tons

16

Mining - Mineração Usiminas

1,854

1,517

1,785

1,496

1,649 1,621

1,213

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Sales – Thousand tons

Mining - Mineração Usiminas

17

The Mining sales volume presented a strong growth due to the increase in the domestic sales - Historical record

1,2511,072

771

1,2371,133

994 1,043

322

60

47

1748

206

787

156

365

324

493

165 166

1,729

1,497

1,142

1,747

1,346 1,366

1,830

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Sales to Usiminas Sales to 3rd parties - DM Exports Total

+34%

18

Adjusted EBITDA / adjusted EBITDA Margin – R$ million

Mining - Mineração Usiminas

139

180156

129111 100

56

173

144119

139

65%68%

61%

54%

46% 47%

36%

59% 58%53%

49%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Adjusted EBITDA Adjusted EBITDA Margin 18

The Mining EBITDA margin remained at a high leveleven with the higher sales volume in the domestic market

Iron Ore Production Capacity – million tons by the end of the year

Friable Project: ongoing

Estimated Capex of R$800 millionCompact Project:

under detailing phase

Investment Plan

19

Mining - Mineração Usiminas

20

Retroarea in Itaguaí Port

20

10 industrial units in MG, SP, RS, ES, BA

and PE

Processing capacity of 2 million tons/year

Net Revenue of R$1,573 million until

September 2013

Steel Processing

Soluções Usiminas and Automotiva Usiminas

21Soluções Usiminas

Automotiva

Camaçari

Porto Alegre

Campo Limpo Paulista

Guarulhos BonsucessoGuarulhos São Roque

Taubaté

Recife

Serra

Betim

Santa Luzia

Soluções Usiminas

Automotiva Usiminas

In the 2Q13, Usiminas entered into an Agreement with

Aethra Sistemas Automotivos S.A., for the amount of R$210

million (enterprise value) to transfer 100% of its

shares, aligned with Usiminas´strategy to focus on its core

business and maximize its competitive positioning.

On 10/23/13, it was published on Diário Oficial da União

(Brazilian Federal Register) that such transaction was

approved by CADE (Brazilian Antitrust Regulator) without

any restriction. The transaction conclusion is subjected to

certain conditions precedent.

Located in Ipatinga/MG, it is one of the largest capital goods companies in Brazil

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

Industrial Equipment, Industrial Assembly, Foundry and Railcars

Net Revenue of R$770 million until September 2013

Usiminas Mecânica

Capital Goods

22

Brasília 3rd Bridge

22

Oil Platform

Usiminas and its

Business Units

Operational

Improvement

and Financial

Results

Agenda

23

Company

Profile and

Market Data

Increasing Coke ProductionCoke Plant #3 (Ipatinga) – Thousand tons

24

55,3 54,6

60,3 58,861,9

64,167,3 67,5

63,7 63,5

59,0

63,166,2

62,265,3 65,8

68,5 67,0 68,8 68,0 66,569,2

66,168,1 69,0

61,5

69,867,2

69,367,1

69,3 69,8 67,1

Average 2011: 61.6+9.1%

Average 2012/2013:

67.2

Improving Continuous Casting Productivity (CC)

Slab Production

Increasing slab production – Thousand tons

25

557

594

1Q12 3Q13

+6,6%

8 CCs

6 CCs

Gross Profit, EBIT and Net ProfitConsolidated - R$ million

26

In the 3Q13, the net profit reached R$115 million

376

455

142

226

-22

115

2Q13 3Q13

Gross Profit

EBIT

Net Income

+R$84 Mi

+R$137 Mi

+R$79 Mi

27

Adjusted EBITDA and adjusted EBITDA Margin

Consolidated - R$ million

337365

343

218190

232

150

226

313

441

538

11%12%

12%

8%

7% 7%

4%

7%

10%

14%

17%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

110

210

310

410

510

610

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Adjusted EBITDA Adjusted EBITDA Margin

The highest EBITDA and EBITDA margin in the last 3 years

+22%

28

Working Capital

Consolidated – Focus on Working Capital control

4.8

2.6 2.72.2

2.8

Dec/11 Dec/12 Mar/13 Jun/13 Sep/13

Average

2.6R$ billion

1,512

1,031 903 916

1,028

4Q11 4Q12 1Q13 2Q13 3Q13

102 54 51 52 Inventory days59

R$ million

29

Capex Evolution

Consolidated- R$ million

45

142 172

359

112

104 56

272

175

261435

673

1Q13 2Q13 3Q13 9M13

Capital Goods

Steel Processing

Mining

Steel

Strict CAPEX control

Total

Debt Profile and Cash Position

Consolidated - R$ million

30

2,201

158

730 905

735 982

301 671

26

1,788

82

394 389 758 266

1,100 3

2

Cash 2013 2014 2015 2016 2017 2018 2019 2020 on

Local Currency Foreign Currency

3,990

239

1,124

1,493

1,2481,401

28

673

1,293

Duration: R$: 45 months

US$: 44 months

Net DebtConsolidated - R$ million

31

The strong financial position allowed a better cashmanagement through voluntary debt prepayment

3,410

3,611

3,280

3,509

4.44.0

2.92.3

4Q12 1Q13 2Q13 3Q13

Net debt Net debt / Adjusted EBITDA (x)

Results achieved in the 3Q13

32

Historical Record of sales in the Minning Segment

Highest steel sales volume in the domestic market in 5 years

Highest EBITDA and EBITDA Margin in the Steel Sector in 3 years

Highest EBITDA and EBITDA Margin on a Consolidated basis in 3 years

Strong financial position with substancial reduction in the leverage ratio

Final Message

Costs

CAPEX

Working Capital

Productivity Increase

Industrial Engineering

Benchmarking

Operational Efficiency

Domestic Sales Increase

Leverage Reduction

Company’s Profitability

Recovery

Fase I

Control

Fase II

Improvement

Continuous

Process

33

Quarterly Results Accounted

34

Per Business Unit

Note: All intercompany transactions are made on arm´s length.

R$ million

3Q13 2Q13 3Q13 2Q13 3Q13 2Q13 3Q13 2Q13 3Q13 2Q13 3Q13 2Q13

Net Revenue 283 223 2.949 2.898 667 639 246 265 (946) (780) 3.198 3.244

Domestic Market 283 191 2.758 2.683 662 634 246 265 (946) (780) 3.003 2.992

Exports 0 33 191 215 5 5 0 0 0 0 196 252

COGS (127) (90) (2.672) (2.707) (604) (570) (235) (249) 896 749 (2.742) (2.868)

Gross Profit 156 133 276 190 63 68 10 16 (50) (31) 456 376

Operating Income

(Expenses)(29) (24) (135) (141) (49) (49) (16) (22) 1 1 (229) (234)

EBIT 126 109 141 50 14 19 (6) (6) (49) (30) 227 142

Adjusted EBITDA 139 119 376 289 28 33 0 1 (6) (1) 538 441

Adj.EBITDA Margin 49% 53% 13% 10% 4% 5% 0% 0% - - 17% 14%

* Consolidates 70% of Unigal

Income Statement per Business Units - Non Audited

ConsolidatedMining Steel*Steel

ProcessingCapital Goods Adjustment

Results Accounted until September 2013

35

Per Business Unit

R$ million

9M13 9M12 9M13 9M12 9M13 9M12 9M13 9M12 9M13 9M12 9M13 9M12

Net Revenue 754 607 8.512 8.625 1.852 1.570 770 761 (2.251) (2.059) 9.637 9.503

Domestic Market 680 456 7.664 6.866 1.835 1.544 770 759 (2.251) (1.995) 8.698 7.629

Export Market 74 150 848 1.759 18 26 0 2 0 (64) 939 1.874

COGS (303) (234) (7.970) (8.581) (1.670) (1.423) (734) (761) 2.079 1.857 (8.598) (9.142)

Gross Profit 451 373 542 44 182 146 36 0 (172) (202) 1.039 362

Operating Income

(Expenses)(83) (132) (409) (330) (146) (154) (53) (38) 3 6 (687) (647)

EBIT 368 241 133 (285) 36 (7) (17) (37) (169) (196) 352 (285)

Adjusted EBITDA 402 267 843 358 77 31 3 (19) (33) (66) 1.292 572

Adj.EBITDA Margin 53% 44% 10% 4% 4% 2% 0% -2% - - 13% 6%

* Consolidates 70% of Unigal

Mining Steel*Steel

ProcessingCapital Goods ConsolidatedAdjustment

Note: All intercompany transactions are made on arm´s length.

www.usiminas.com/ri

ADR

Level I

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.

Cristina Morgan C. DrumondHead of IR

cristina.drumond@usiminas.comPhone: 55-31-3499.8772

Fax: 55-31-3499.9357

Leonardo Karam Rosaleonardo.rosa@usiminas.com

Phone: 55-31-3499.8550

Diogo Dias Gonçalvesdiogo.goncalves@usiminas.com

Phone: 55-31-3499.8710

Renata Moura TerraRenata.terra@usiminas.com

Tel: 55-31-3499.8619