USIMINAS 2012

Tokyo, 16th and 17th of July - 2008

USIMINAS 2012USIMINAS 2012

Tokyo, 16th and 17th of July - 2008

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USIMINAS IN BRAZILUSIMINAS IN BRAZIL

Others74%

Usiminas26%

BRAZILIAN CRUDE STEEL PRODUCTION BRAZILIAN FLAT STEEL MARKET

IN 2007, USIMINAS, THE MAJOR PLAYER OF THE BRAZILIAN FLAT STEEL, MARKET WAS RESPONSIBLE FOR 26% OF THE COUNTRY’S CRUDE STEEL PRODUCTION AND IT WAS.

33,8 Mty in 2007Flat & Long Steel Producers

Others49%Usiminas

51%

11,7 Mty in 2007Flat Steel Producers

USIMINAS’ FINISHED PRODUCTS PORTFOLIO:HEAVY PLATES, HOT AND COLD ROLLED COILS & SHEETS, ELECTROGALVANIZED & HOT DIP GALVANIZED PRODUCTS.

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BREAKDOWN OF USIMINASBREAKDOWN OF USIMINAS’’ DOMESTIC MARKET SHAREDOMESTIC MARKET SHARE

USIMINAS IS THE MARKET LEADER, WITH AN OUTSTANDING SHARE IN THE HIGH ADDED VALUE SEGMENTS.

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73

88

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HOME APPLIANCES

CONSTRUCTION

SMALL DIAMETER TUBES

DISTRIBUTION

OEMs

AUTO-PARTS

ELECTRIC & ELECTRONIC

PIPES

INDUSTRIAL

SHAPES

SHIPBUILDING

DOMESTIC MARKET SHARE BY SEGMENT IN 2007 (%)

TOTAL: 51%TOTAL: 51%

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RAILROAD

HIGHWAY

CVRD

ESPÍR

ITO

SA

NTO

SÃO PAULO

BAHIA

MINAS GERAIS

ATLANTIC OCEAN

Itabira

Vitória

Port of Praia Mole

Santos

RIO DE

JANEIRO

Ipatinga

Usiminas

Belo HorizonteUsiminas

Headquarters

Sepetiba Port

Rio de JaneiroSão Paulo

Cosipa

Cubatão

USIMINASUSIMINAS’’ PLANTSPLANTS

SÃO PAULO: Cubatão - José Bonifácio Mill 4,65 MtyMINAS GERAIS: Ipatinga - Intendente Câmara Mill 4,60 Mty

Santana do Paraíso 5,00 Mty14,25 Mty

NEW SITE!2011

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2

3

State Plant Steel Capacity

NEW SITE!7 Km from Ipatinga

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MAJOR INVESTMENTS IN THE PERIOD 2008MAJOR INVESTMENTS IN THE PERIOD 2008--20122012

Production

CubatãoJosé Bonifácio Mill

CubatãoJosé Bonifácio Mill

IpatingaIntendente Câmara Mill

IpatingaIntendente Câmara Mill

Santana do Paraíso

Santana do Paraíso

Steel Production:+ 350 thousand t/year

(ongoing)

New Hot Strip Mill+ 2.3 Mty

• New Power Plant of 75 MW

• Top Blowing Turbine (12 MW)

• Technical updating & environmental

protection program• Dredging of José

Bonifácio Mill’s Port Canal

Steel Production:5 Mty

Portfolio Improvement

Hot Rolled Products:+ 150 thousand t/year

Heavy Plates:+ 500 thousand t/year

HDG (Unigal II):+ 550 thousand t/year

• New Power Plant of 60 MW

• New Coke Plant (750 kt/year)

• Technical updating & environmental

protection programs

STEEL MILLSSTEEL MILLS STEEL CHAINSTEEL CHAIN

MiningMining LogisticsLogistics

Others(mainly CostReduction)

• Power plant of 250 MW

Iron Ore Production:Increase to 29 Mty,

from 5 Mty

Concentration & Pellets

1 2 3 4 5

Acquisition of a property in Sepetiba’s

Bay (RJ) & investments in a shipping terminal

US$ 2.4 billion US$ 1.2 billion US$ 6.1 billion* US$ 3.5 billion** US$ 0,9 billion** Including acquisition

INVESTMENT PLAN BUDGET = US$ 14.1 billionINVESTMENT PLAN BUDGET = US$ 14.1 billion

* Including Power Plant

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TIME SCALE OF THE MAJOR INVESTMENTSTIME SCALE OF THE MAJOR INVESTMENTS

Increase to 29 million tons of iron ore (5 millions tons in 2008).Investments in concentrations and pellet plantMINING

Acquisition of a property in Sepetiba’s Bay and investment in a shipping terminalSHIPPING TERMINAL

New Hot Strip MillPhase 1: 2,3 Mt

New Power Plant

• Modernization of a continuous casting machine• # 1 Blast Furnace revamp • Top Blowing Turbine• Dredging of Jose Bonifácio mill’s Port Canal

CUBATÃO

New Power Plant

2008

# 3 Coke Oven Plant Continuos Casting Machine revamp

2009

New Steel Shop Phase 2: total of 5,0 Mt of crude steel/year

# 2 Coke oven Plant revampVertical mill in the HSM

2012

New Steel Shop Phase1: 2,5 Mt of crude steel/yearCoke Oven PlantBlast FurnacePower Plant (250 MW)Sintering Plant

New Galvanizing Line (Unigal II)Slabs re-heating furnace

2011

SANTANA PARAÍSO

Expansion of the Plate Mill (New Stand Rougher mill)New Accelerated Cooling SystemUltra Sonic – Plate Mill

Tandem Cold Mill revamp

IPATINGA

2010Plant

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USIMINAS SALES FORECASTUSIMINAS SALES FORECAST

IN 2007, USIMINAS SOLD 7.3 MILLION TONS OF FINISHED PRODUCTS, BOTH TO THE DOMESTIC AND EXPORT MARKETS. IN THE NEAR FUTURE, IT WILL BE SELLING ~9 MILLION AND, IN THE MEDIUM TERM, 9.5~10 MILLION TONS/YEAR. CONSIDERING THE SEMI-FINISHED PRODUCT - SLABS, THAT TOTAL WILL GO TO ~ 14 Mty.

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2007 2009 2011 2013 2015 2017 2019

Mt

HDG

EG

CRC

HRC

HeavyPlates

SALES OF FINISHED PRODUCTS TOTAL SALES

Thousand tons

Product 2007 2008 2010 2012 2013

Heavy Plates 1.941 1.853 1.727 2.297 2.259

HRC 2.365 2.348 2.427 3.398 3.513

CRC 2.242 1.970 2.089 2.326 2.420

Galvanized 738 783 729 1.268 1.265

EG 290 283 274 280 280

HDG 447 500 455 988 986

Sub-total 7.286 6.954 6.972 9.289 9.458

Slabs 788 923 1.550 4.176 4.806

Total 8.074 7.877 8.522 13.465 14.264

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IMPORTANT INVESTMENTS FOCUS ON HEAVY INDUSTRIESIMPORTANT INVESTMENTS FOCUS ON HEAVY INDUSTRIES

HEAVY PLATES

HOT ROLLEDCOILS

Drivers Portfolio of Steel Families

AFTER THE NEW STEEL SHOP, THE NEW HOT STRIP MILL START UP AND THE ACCELERATED COOLING SYSTEM INSTALLMENT, THE COMPANY WILL BE PREPARED TO SUPPLY ADVANCED AND NEW TYPES OF STEEL GRADES.

Increasing requirements of high technological content products.

Increasing use of TMCP (Thermomechanical Control Process) e AC (Accelerated Cooling) in plate production.

Expansion of dimensional ranges, flatness tolerances and superficial and inner quality improvements.Technical changes of standards and greater severity

regarding specification criteria.Global projects dispute, with a higher number of

technologically capable players.

Increasing requirements of high technological content products.

Increase of thick coil usage (hot rolled) in substitution of heavy plates in Helical / ERW pipes.

Industrial segment high growth rates

API, including grades > X80BOILER & PRESSURE VESSELSTRUCTURAL (low, medium & high resistance)LONGITUDINAL GIRDERS (high & ultra-high

resistance).MEDIUM & HIGH CARBON (SAE 1050 ~ 1080)SHIPBUILDING/OFF SHORE PLATAFORM (low,

medium & high resistance)QUENCHED & TEMPERED

API (<= X46, X52~X80, CASING) DUAL PHASE - DPDRAWINGSTRUCTURAL (low, high & corrosion resistance)HSLA LONGITUDINAL GIRDERS (low & ultra-high

resistance)MEDIUM & HIGH CARBON (SAE 1050 ~ 1080)SHIPBUILDING/OFF SHORE PLATAFORM (low,

medium & high resistance)STEEL FOR QUENCH PURPOSESWHEELSEXTRA-THIN

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FINAL MESSAGESFINAL MESSAGES

USIMINAS will expand and speed along its investment plan. It will be US$ 14.1 Billion in the period of 2008-2012.

Through organic growth, expansion of product portfolio and higher added value steel grades, the new investment cycle focus both on consolidating its domestic market

leadership and also on creating solid bases for future internationalization movements.

USIMINAS believes in the Brazilian industry segment growth potential, specially in Petrobras’, and that has driven a significant part of our investment plan. Brazil has shown

structural economic stability and USIMINAS believes in the country’s growth and in the improvement of the Brazilian industry’s competitiveness.

The investment cycle will play a great role in USIMINAS’ future. However, besides all the ‘hardware’, partnership with our major customers will be the most important part . Therefore,

USIMINAS encourages the relationship improvement in the steel supply chain and will continue to pursue it as one of its main drivers of success.