Usiminas Presentation

3Q12

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mestre

Usiminas and its

Business Units

Operational and

Financial

Highlights

Market

Overview

2

Agenda

Total 1,527 million tons

Source: World Steel

683.3

107.6 86.2 72.2 68.7 68.5 44.3 35.3 35.2 34.1

China Japan USA India Russia South Korea

Germany Ukraine Brazil Turkey

Production per company – 2011

97.2 44.4 43.3

39.1 37.7

33.4 31.9 30.0 29.9 29.8

9.5

6.8

Arcelor Mittal

Hebei Group

Baosteel

Posco

Wuhan Group

Nippon Steel

Shagang Group

Shougang Group

JFE

Ansteel Group

36º - Techint Group

51º - Usiminas

World Production - 2011

3

Capacity of Crude Steel

1,988 million tons

Excess of Capacity

461 million tons

Production

1,527 million tons

Production of Crude Steel

1,527 million tons

Excess of production

149 million tons

Consumption

1,378 million tons

World - 2011

World Production and Capacity of Crude Steel

4

78

61 68

76 83

61 57

72

35 28 29

15

21 14

12 9

17 21

18

26 41 39

7 18 18 13 9

22 22 10

39 31 32

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Steel Iron Ore Coal

Source: Mckinsey

Profit distribution on the steel production chain – %

Value Transfer on the Steel Chain

5

Production – million tons

Source: IABR / INDA / Usiminas

Inventories in the Distribution Network

Apparent Consumption – million tons

15.614.0

3.8 3.9 3.9

2010 2011 1Q12 2Q12 3Q12

13.7 12.6

3.5 3.5 3.4

2010 2011 1Q12 2Q12 3Q12

1.21.0 1.0 1.0 1.0

4.1

2.9 2.8 2.8 2.7

2010 2011 1Q12 2Q12 3Q12

Million tons Monthly basis

Flat steel

Brazilian Market

6

11.6 10.4

439

369

325 321

355 378

392

500

316 317

182 185 175 175 173 172

275 265 260

163 194

266

238

204 209

148 158

212 194

216 219

118

Source: Usiminas - Sistema Aliceweb - MDIC/Secex

Average 2011: 207

thousand tons Average 10M12: 192

thousand tons

Thousand tons

Imports

7

Investments in industry in 2012: R$17.1 billion

Investments in infrastructure in 2012: R$105.3 billion

Investments in housing during the period of 2011/2014 : R$279 billion

MEDIUM AND LONG TERM PROJECTS

2012-2016

~ US$ 237 Bi

2012

~ R$ 761 millions

2012

~ R$ 230 millions

Source: Valor Economico, PAC’s website, Petrobras’s website,Portal da Copa – Governo Federal

2012

~ R$ 25,6 Bi

2012

~ R$ 11.1 Bi

4.5 million tons of steel

2.7 long

1.8 flat

1.5 million tons of steel

0.9 long

0.6 flat

Benefit from the Brazilian positive outlook

Domestic Market

8

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Usiminas and its

Business Units

Operational and

Financial

Highlights

Market

Overview

Agenda

9

Foundation

of Usiminas

Operation

Start Up

Privatization

Usiminas:1991

Cosipa: 1993

Listing on

Latibex

Aquisition of J.

Mendes iron ore

mines

Aquisition of

Zamprogna

Soluções

Usiminas,

con-solidation

of the

companies Rio

Negro, Dufer,

Fasal and

Zamprogna

and industrial

units Usial and

Usicort

Single CNPJ:

Cosipa is

incorporated

by Usiminas

Creation of Mineração Usiminas

Port Agreement

Mineração Usiminas and

MMX

Selling of

Ternium shares

Joint Mining

and

Cooperation

Agreement

with MMX, MBL

and Ferrous

Negociation

with J. Mendes

concluded

Acquisition of

Litigation Area

1956

1991

2005

2008

2009

2010

2011

2012

Entrance of Ternium/ Tenaris

in Usiminas’ Control Group

New shareholders

agreement singned among Niippon Group,

Ternium / Tenaris and Usiminas Pension Fund

until 2031

Time Line

10

Mining

Steel

Steel processing

Capital Goods

Strategically Located

11

Shareholder Composition

12

Controlling Shareholders: • Nippon Group 3 members • Ternium/Tenaris 3 members • Usiminas Pension Fund 1 member • Employees Representative 1 member

Minority Shareholders: • Previ 1 member • Geração Futuro Funds 1 member

There are 10 members on the

Board of Directors :

Mining

Steel

Steel Processing Capital Goods

UPST

REA

M

DO

WN

ST

REA

M

* Controled by Usiminas ** Results accounted through equity income

Ipatinga

Automotiva Usiminas *

Metform and Codeme

stake **

Cubatão

Unigal Usiminas * Mineração Usiminas *

Soluções Usiminas * Usiminas Mecânica *

Complete Solution of Products and Services

through the Value Chain

13

Ongoing Projects

Galvanizing

Line

550 thousand

tons (Unigal)

Hot Strip Mill

2.3 million tons

(Usiminas

Cubatão)

Mining

Production

Reach total

capacity of

12 million

tons in 2013

In operation

2Q11

Foundry 24

thousand tons

(Usiminas

Mecânica)

4Q11 4Q12 Pickling line

III (Cubatão)

Revamping of

Coke Plant II

(Ipatinga)

Investments

14

Strategic focus on enhancing competitiveness

Increasing competitiveness, higher performance and efficiency

New Hot Strip Mill

Investment of

R$ 2.5 billion

Production capacity of

2.3 million tons per year

Increases product performance and efficiency

Higher productivity for customers

Exclusive coils dimensions in Brasil

Higher level of automation

Lower consumption of electric energy

Higher gases reutilization

Improvements

Main Application

15

Income Statement per Business Units - Non Audited (Quarterly)

Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity

Income.

R$ million

3Q12 2Q12 3Q12 2Q12 3Q12 2Q12 3Q12 2Q12 3Q12 2Q12 3Q12 2Q12

Net Revenue 154 213 2,955 3,097 540 533 305 205 (564) (823) 3,390 3,225

Domestic Market 95 143 2,284 2,348 532 522 305 203 (533) (811) 2,683 2,405

Export Market 59 70 671 749 8 11 0 2 (31) (12) 707 820

COGS (61) (73) 2,950 (3,057) (481) (495) (278) (225) 546 783 (3,224) (3,067)

Gross Profit 93 140 5 39 59 37 27 (19) (18) (39) 166 158

Operating Income (Expenses) (47) (49) (186) (43) (52) (50) 2 (17) (1) 0 (284) (159)

EBIT 46 91 (181) (4) 7 (13) 29 (36) (19) (39) (118) (1)

EBITDA 56 100 57 201 20 0 36 (29) (19) (40) 150 232

EBITDA Margin 36% 47% 2% 6% 4% 0% 12% -14% - - 4% 7%

Mining SteelSteel

Processing

Capital

GoodsAdjustment Consolidated

Results Accounted by Business Unit

16

Income Statement per Business Units - Non Audited (9M12)

Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity

Income.

R$ million

9M12 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 9M11

Net Revenue 607 733 8,625 7,995 1,570 1,630 761 1,050 (2,062) (2,322) 9,501 9,087

Domestic Market 456 608 6,866 6,907 1,544 1,600 759 1,049 (1,998) (2,321) 7,627 7,843

Export Market 151 125 1,759 1,089 26 30 2 1 (64) (1) 1,874 1,244

COGS (234) (192) (8,581) (7,791) (1,423) (1,483) (761) (924) 1,995 2,370 (9,004) (8,020)

Gross Profit 373 541 45 204 147 147 0 126 (68) 48 497 1,067

Operating Income (Expenses) (132) (88) (330) (163) (154) (130) (38) (75) 2 4 (652) (452)

EBIT 241 453 (285) 41 (7) 17 (38) 51 (66) 52 (155) 615

EBITDA 267 474 358 389 31 62 (19) 71 (65) 48 572 1,046

EBITDA Margin 44% 65% 4% 5% 2% 4% -3% 7% - - 6% 12%

Mining SteelSteel

Processing

Capital

GoodsAdjustment Consolidated

Results Accounted by Business Unit

17

Cubatão

Ipatinga

18

Steel

18

Installed Nominal Capacity : 9.5 million tons / year

Slabs Hot Coils Cold Coils Heavy Plates Slab Caster EG HDG

1,950,000tons

Optmized

Rolling

Capacity

3,200,000tons* 1,900,000tons 1,020,000tons 350,000tons

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

3,700,000tons Nominal

Capacity 8,000,000tons 2,000,000tons 9,500,000tons 1,050,000tons 360,000tons

-

Ipatinga Plant 1,050,000tons 360,000tons 2,500,000tons 3,600,000tons 1,000,000tons 5,000,000tons

Galvanized

* HCR mill # 2 under ramp up.

Usiminas has a full range of flat steel products

Flat Steel Production

19

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, Cold and Hot

Rolled and Galvanized (EG

and HDG)

Autoparts

Hot Rolled

Household

Appliances

Cold Rolled and

Galvanized (EG and

HDG)

Everyday Steel Application

20

1,163 1,136

1,246 1,327 1,262

243 204

266

561 487

3Q11 4Q11 1Q12 2Q12 3Q12

Domestic Market Foreing Market

1,406

1,512

1,888

1,749

1,340

Sales – thousand tons

Sales Breakdown by

Segments - 3Q12

Domestic Market

Usiminas is focused in a product range to supply different sectors

21

Average: 1,579

17%14%

3%

7%

7%

6%

28%

8%

10%

Auto Parts

Auto industries

Rolled Machinery

Small Diameter Tubes

Civil Construction/Shapes

Household Appliances

Distribuitors

Industrial Equipment

Other

US$/ton

R$ /ton

101 119

227291

236299

420

111158

47 37 5216

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12 2Q12 3Q12

294 367

664 709

513 581

771

221 277

78 66 107 33

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12 2Q12 3Q12

US$ /R$ 1.67 1.77 2.04 2,02

Ebitda per Ton

22

COGS per Ton

1,690

1,660

1,763

1,821

1,702

1,619

1,687

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

R$

23

24

Belo Horizonte Itabira

IPATINGA

São

Paulo

ITAÚNA

Vitória

TUBARÃO

Port

ITAGUAÍ Port

CUBATÃO

Port

Mining and Logistics

24

Tubarão Port Itaguaí Port

(Ingá)

MODAL

Mineração

Usiminas

EFVM

Existing Routes

CUBATÃO Plant / Port

New Routes

TCS / TSA

Trammel

Sepetiba Port

Exports Exports Exports

40 Km

60 Km

IPATINGA Mill

Logistics

25

4 mining sites, acquired from J. Mendes Group in

Feb/2008

Reserves of 2.6 billion tons

Located in Serra Azul-MG, one of the richest iron

ore sites in Brazil

MRS: 20% of voting shares and part of the

Control Group

Land in Itaguaí-RJ, acquired in 2008

Production – Million tons:

3.8

5.5 6.8 6.3

5.2

2008 2009 2010 2011 9M12

Mining and Logistics

Current status

26

US$ 6.4 billion Mineração Usiminas S.A Estimated Market Value

Acquisition by Sumitomo Corporation of

30% of Mineração Usiminas S.A., through

the subscription of new shares, up to the

total amount of US$ 1.9 billion.

70.0%

30.0%

Mining and Logistics

Strategic partnership

27

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

Friable Project : ongoing

Estimated Capex of R$800 million Compact Project:

under detailing phase

Expansion Plan

Mining

28

MBL

Arcelor Mittal

Ferrous (Santanense)

Comisa Emicon

MMX

Ferrous

MUSA Pau de Vinho

MUSA East

Minerita

MUSA Central

MUSA West

Itatiaiuçu

Igarapé São Joaquim De Bicas

Mineração Usiminas mining operation is highlighted in yellow.

Mineração Usiminas

Serra Azul

29

30

Itaguaí Port

30

Camaçari

Cachoeirinha

Porto Alegre

Campo Limpo Paulista

São Paulo Guarulhos

Taubaté

Recife

Serra

Betim

Santa Luzia

Steel Processing

Soluções Usiminas

31

11 industrial units in MG, SP, RS, ES and PE.

Processing capacity of 2 million tons/year.

3Q12 Net Revenues of R$440 million

Leadership:

Is the leader in the steel distribution

sector since 2010, according to INDA.

Soluções Usiminas

Steel Processing

32

Clients 500

km

1.000

km

1.500

km

Pouso Alegre Unit

Steel Processing

33

Automotiva Usiminas

34

Pouso Alegre – MG

– Close to major auto makers.

– Full service company.

3Q12 Net Revenues of R$82 million

Major Clients:

Ford, Mercedes Benz, Fiat, Volkswagen,

Volvo, General Motors, International Trucks,

Honda Toyota, PSA Peugeot Citroën, Scania.

Automotiva Usiminas

Steel Processing

34

Capital Goods

35

Usiminas Mecânica

Ipatinga – MG

It is one of the largest capital goods’ company in the

country.

3Q12 Net Revenues of R$305 million

Market Sectors:

– Industrial Assembly

– Structures / Metal Bridges and Blanks

– Industrial Equipment

– Industrial Erection

– Foundry and Railcars

Highlights:

– Manufacture and assembly of the bridge over Rio Sereno

and the supply of steel structures for mining and

petroleum exploration platforms.

Usiminas Mecânica

Capital Goods

36

3rd Bridge in Brasília

Usiminas Mecânica

Capital Goods – some of its main projects

37

Ship Panel

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Usiminas and its

Business Units

Operational and

Financial

Highlights

Market

Overview

Agenda

38

55.3 54.6

60.3 58.8 61.9 64.1

67.3 67.5 63.7 63.5

59.0 63.1

66.2 62.2

65.3 65.8 68.5 67.0 68.8 68.0 66.5

Average last 5M:

67.8

Increasing Coke Production Coke Plant #3 (Ipatinga) – Production in thousand tons

39

Average 2011: 61.6 +10.7%

Lump

Pellet

23.66 21.42

25.36

14.90 18.05

0.00

Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12

%

23.70 24.40 19.16

27.43 31.32

35.40

Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12

%

-23.7%

+11.7%

40

Cheaper Blend of Iron Ore Better metallic burden in Blast Furnace #1 (Cubatão)

40 48 49 33

95

134

162 170 180

jan/12 feb/12 mar/12 apr/12 may/12 jun/12 jul/12 aug/12 sep/12

Slab production – thousand tons

heat

+350%

554

622

First Quarter 2012 Last two months 2012

8 CC’s 6 CC’s

+12.4%

Focus on Productivity Improving Continuous Casting productivity in the steel mills

41

Continuous Casting sequence

Third Quarter 2012

17.1

28.7

19.6

25.5

10.9

1.9 2 0.2 0

Jan/12 Feb/12 Mar/12 Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12

-100%

Transfer of slabs from Cubatão to Ipatinga – thousand tons

42

Focus on Productivity

EBITDA – R$ Million

Sales – thousand tons (steel products)

Net Revenues – R$ Million

Crude Steel Production – thousand tons

3Q12 Main Highlights

1,549

1,845 1,837

3Q11 2Q12 3Q12

1,406

1,888 1,749

3Q11 2Q12 3Q12

2,998

3,225

3,390

3Q11 2Q12 3Q12

343

232

150

3Q11 2Q12 3Q12

43

*IFRS

Ebitda / Ebitda Margin

R$ million

337

365

343

218

190

232

150

11%

12% 12%

8%

7% 7%

4%

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

EBITDA EBITDA Margin

44

Capex Evolution – Accumulated 9 Months

R$ million

1,762

1,413

802

14

195

391

424

235

94

2,200

1,843

1,288

9M10 9M11 9M12

Steel Mining Others

- 16%

- 30%

45

Leverage – Consolidated Basis

R$ billion

46

3.3

4.1

4.9

3.6

2.3 2.8

3.4

3.9 3.9 4.2 4.1

1.7 1.5 1.6 1.4 1.0 1.6 2.5 3.1 3.6 4.2

5.2

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Net Debt Net Debt/EBITDA (x)

Working Capital - Consolidated

R$ billion

5.4 5.3 5.2

5.0 4.7

4.3

3.8

3.3

4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

Reduction of R$1.5 billion

-14%

-11%

-10%

47

48

1,513 1,491

1,281

1,126

4Q11 1Q12 2Q12 3Q12

Inventories

90 80 62 55

Inventories in days

Working Capital - Consolidated

Reduction of 387 thousand tons on the inventories since 4Q11

5,191

4,834 4,844

4,775

4Q11 1Q12 2Q12 3Q12

49

Cash Position – Consolidated

R$ million

Stable cash position comparing 3Q12 x 2Q12

Debt Profile

R$ million

2,450

332

874 929 909 740 396 307

33 150

2,325

101

983 633 490 727

269

1028

3 1

Cash 4Q12 2013 2014 2015 2016 2017 2018 2019 2020 on

Local Currency Foreign Currency

433

4,775

1,857

1,562 1,467

665

1,335

151 36

1,399

Duration: R$: 42 months US$: 46 months

50

Cristina Morgan C. Drumond Head of IR

cristina.drumond@usiminas.com Phone: 55-31-3499.8772

Fax: 55-31-3499.9357

www.usiminas.com/ri

ADR

Level I

Luciana Valadares dos Santos luciana.santos@usiminas.com

Phone: 55-31-3499.8619

Leonardo Karam Rosa leonardo.rosa@usiminas.com

Phone: 55-31-3499.8056

Diogo Dias Gonçalves diogo.goncalves@usiminas.com

Phone: 55-31-3499.8710

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.