Presentation

Apresentao Usiminas
4Q16
2T11 - APIMEC

Classification of the information: Public

Agenda

Usiminas Market Usiminas and its Financial

Profile Outlook business units Results

2
Company Profile

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

3
 Timeline

Operation Cosipa Listing on Creation of Selling of Automotiva Temporary

Start Up privatization LATIBEX Solues Ternium stake Usiminas shutdown of
stock Usiminas Joint Mining Divestment the primary
exchange One CNPJ: Agreements areas in
section Usiminas with MBL e Cubato
incorporates Ferrous
Cosipa

1962 1991 1993 1994 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016

Friables
Creation of Project
Entrance of
Acquisition Minerao conclusion
Usiminas Ternium / Tenaris R$ 1 billion
of iron ore on Mining
Usiminas Listing on into Usiminas capital
mines Acquisition (increasing
privatization ADR I on the Control Group increase
Acquisition of Codeme the capacity
Listing on OTC Market and Metform (New shareholders
of Zamprogna to 12 million Debt
BOVESPA (New York) stake agreement)
tons/year) Renegotiation

4
 Shareholding Composition

Total Capital
1,253,079,108
Voting Capital Preferred

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

Others *
23,19% Nippon Group Grupo de Controle (63,86%)
21,10%
*

*
Free Float: 54.25% Control Group: 45.75%
Ternium/ Tenaris
Ternium / Tenaris * Group
Group 19,81%
19,76%
Usiminas Pension
Fund
Nippon Group 4,84%
11,31%

Usiminas shares are traded on BM&FBovespa (So Paulo), on the OTC Market (New York) and on a LATIBEX
exchange section (Madrid). 5
Complete Solution for Products and Services
Business Units

Capital Goods
Steel Processing

Solues Usiminas Usiminas Mecnica

Steel

Ipatinga Plant

Cubato Plant
Mining
Unigal Usiminas

Minerao Usiminas

UPSTREAM DOWNSTREAM

6
Strategically Located

Mining

Steel

Steel Processing
Capital Goods
7
 Social and Environmental Initiatives

Usiminas Cultural Institute So Francisco Xavier School

Usiminas invested over R$260 million, encouraging First educational institution in Brazil
around 2,000 social projects since 1993 to obtain ISO 9001

Xerimbabo Usiminas Project

Mrcio Cunha Hospital Promotes protection and environmental education
Reference center in healthcare all over Brazil free of charge for more than 2 million young people

8
Agenda

Usiminas Market Usiminas and its Financial

Profile Outlook business units Results

9
 Brazilian Flat Steel Apparent Consumption
Thousand Tons

14.736
14.262
1.671 13.213
1.780

2.039
10.594
-13%
1.623 9.250
7.695
7.328 699
6.602

5.451
5.416

5.155 5.370
4.573
3.521 3.134

2012 2013 2014 2015 2016

Usiminas Other Companies Imports Consumption

Source: Usiminas Commercial Planning 10

Flat Steel Consumption Markets

Auto Industry Household Agricultural and Civil

Oil and Gas Pipelines
and Autoparts Appliances Road Machinery Construction

Heavy Plates,
Hot Rolled,
Cold Rolled and Heavy Plates and Hot Rolled, Heavy Plates and Heavy Plates and
Cold Rolled and
Galvanized Hot Rolled Cold Rolled and Hot Rolled Hot Rolled
Galvanized
Galvanized

11
Agenda

Usiminas Market Usiminas and its Financial

Profile Outlook business units Results

12
 Flat Steel Capacity of Production
Thousand Tons

Galvanized
Slab Caster Slabs Heavy Plates Hot Coils Cold Coils EG HDG
Placas Laminados a Eletrogalvanizados
Quente
Ipatinga Plant 5,000 1,000 3,600 2,500 360 1,050

2,100 ** - -
Cubato Plant 4,500* 1,000** 1,200
2.300

Nominal 9,500* 2,000* 8,000 3,700 360 1,050

Capacity

Optimized
Rolling - 1,900 4,200 2,200 350 1,020
Capacity
* Temporary shutdown of the primary areas of Cubato
** Temporary shutdown of the rolling mills 13
Sales Volume
Steel Business Unit Thousand Tons

1.205

323 959
903 899 891
145 71
145 115

882 814 821

758 784

4Q15 1Q16 2Q16 3Q16 4Q16

Exports Domestic Market

14
Exports Main Markets
Steel Business Unit

4Q16 Argentina
2016

Germany
8% 1%
1%
USA 2% 1%
6% 2%
0% 1%
6%
Spain
8% 31%
1%
Taiwan

11% 46% Mexico 9%

Belgique
4%
Switzerland
14%
Portugal
20% 26%
France

15
Cost of Goods Sold - COGS
Steel Business Unit

3Q16 4Q16
Other Raw Materials

Labor (direct and

indirect)
8,6% 11,3%
0,7% Coal and Coke
7,2% 25,0% 32,6%
-13,1%
Iron Ore and Pellets
7,7%
Structural Expenses 7,1%

Energy and Fuels 7,7%

9,6%
15,9% Depreciation 17,1%
4,2% 9,5%
Spare Parts 4,4%
10,3% 12,1%
10,8% 11,2%
Inventories Variation

Others

16
Adjusted EBITDA and EBITDA Margin
Steel Business Unit R$ Million

14%

11%

295
332 342 224

25 46 93 50
3% 72 3%
1 (2) 1 (14)
(52) (37) (2)(42) (35) (34)
(2) (14)
(71)
(125)
(179)

-8%

4T15 1T16 2T16 3T16 4T16

Venda/baixa de Ativos Venda de Energia EBITDA sem efeitos extraordinrios

PDD Trmino de contrato EBITDA Reportado
Margem de EBITDA Reportado 17
Investments
Steel Business Unit

Heavy Plates Hot dip galvanized Electrogalvanized

Hot Rolled Cold Rolled

Slabs

Capacity increase to generate finished products

7.2 million t 9.7 million t

(2010) (2014)

18
Investments
Steel Business Unit

CLC Technology (Accelerated Cooling Process for Heavy Plates)

Start up in 2010
Meets the requirements of
Petrobras, focused on pre-
salt, besides the
shipbuilding sector

Galvanizing Line

Start up in 2011
Double the capacity to 1
million tons /year
Higher expertise in ultra-
resistant steel production
(dual phase)
19
Investments
Steel Business Unit

Hot Strip Mill

Start up in 2012
Capacity to process 2.3 million
tons / year
Improving products portfolio
(beams, ultra resistant wheels,
higher grades APIs)

Pickling Line
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

20
Mainly Investment Concluded in 2015
Steel Business Unit

Coke Plant Revamp - Ipatinga

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

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

o Started up on May 2015

21
Description
Mining 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 Itagua Port

Shareholder Composition Production Capacity

Lump
70% 2 million
Sinter Feed
4 million
30% Pellet Feed
6 million

22
Location
Mining Business Unit

Igarap So Joaquim
De Bicas

Minerita
MUSA MMX MUSA
Leste Pau de Vinho
MUSA
Central

MUSA Ferrous
Oeste Ferrous Comisa Emicon
Arcelor (Santanense)
Mittal

MBL

Itatiaiuu

Minerao Usiminas
23
Investments
Mining Business Unit

Friables Project

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

24
Sales Volume
Mining Business Unit Thousand Tons

974

786 789
344 - - 17%
670 171 657
12 181
-
16 69
23

658 614 592 608 588

4Q15 1Q16 2Q16 3Q16 4Q16

Sales to 3rd parties - Domestic Market Exports Total 25

Iron Ore Price PLATTS (62% Fe CFR China)
US$/ton

71
56 59
47 48

4Q15 1Q16 2Q16 3Q16 4Q16

26
Adjusted EBITDA and EBITDA Margin
Mining Business Unit R$ million

30%
21% 16%
24
21
2
-11% 13

1 (3) (1)
(4)
(12)

(102)

-119%
4Q15 1Q16 2Q16 3Q16 4Q16

Sale of Energy Reported EBITDA Reported EBITDA Margin

27
 Description
Solues Usiminas - Steel Processing

o 8 industrial units in different Brazilian states:

MG, SP, RS, ES, BA and PE
o Processing capacity of 2 million tons of
steel/year Recife

o Net Revenue of R$1.9 billion in 2016

Betim
Santa Luzia
Serra

Taubat
Guarulhos
So Paulo

Porto Alegre

28
Adjusted EBITDA and EBITDA Margin
Steel Processing - R$ million

4%

3%

2%
22

14
1%
9
3
(1)
0%
4Q15 1Q16 2Q16 3Q16 4Q16

Reported EBITDA Reported EBITDA Margin

29
Description
Usiminas Mecnica - Capital Goods

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

Cubato/So 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$568 million in 2016

Steel Structures

Braslia 3rd Bridge

30
30
Adjusted EBITDA and EBITDA Margin
Capital Goods - R$ million

12%

6%
5%

1%
24

8 10
1
(7)

-7%

4Q15 1Q16 2Q16 3Q16 4Q16

Reported EBITDA Reported EBITDA Margin

31
Agenda

Usiminas Market Usiminas and its Financial

Profile Data business units Results

32
Adjusted EBITDA and EBITDA Margin
Consolidated R$ million

14%

11%

307
344 350
234
3% 3%

37 52 117 68
72 (12)
(50) (41) (44)1(6) (2)(36)
(33)
(3) (1) (17)
(71)
(196)
(250)

-10%
4Q15 1Q16 2Q16 3Q16 4Q16
Assets Sales/Write-off Energy Sales Provision for Doubtful Accounts
EBITDA excluding extraordinary effects Reported EBITDA Termination of Contract
Reported EBITDA Margin 33
Comparing Adjusted and CVM 527 EBITDA
Consolidated R$ Thousand

34
Debt Profile (Principal) - Consolidated
R$ million

Duration: R$: 51 months

US$: 53 months

2.257
111

1.071 1.069 1.068 1.067

2.146
201 201 201 201
744 790
569 151
403 142

80 869 867 867 865

85 603 639
27 563 16 323
- 69
27 6
Cash 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Local Currency Foreign Currency

35
Cash and Indebtedness
Consolidated - R$ million

7.709
7.286
7.076
6.886 6.893

5.684 4.363
5.550 4.546 4.635

2.713
2.024 2.340 2.257
1.736

4Q15 1Q16 2Q16 3Q16 4Q16

Net Debt Cash Gross Debt

36
CAPEX
Consolidated - R$ million

1.643
112

555 1.110
981 52
64 94
784
317 50
112
976 964
600 622 225
13 34
179

2012 2013 2014 2015 2016

Others Mining Steel

37
G&A Evolution
Consolidated - R$ million

4,5% 4,4%
4,2% 4,3%

3,9%

109

90 87 91
86

4Q15 1Q16 2Q16 3Q16 4Q16

G&A G&A/Net Revenues

38
Working Capital
Consolidated R$ billion

2,5

2,4
2,3

2,2
2,1

4Q15 1Q16 2Q16 3Q16 4Q16

39
Working Capital Steel Inventories
Thousand Tons

Inventory
turnover
(days)

639 648

484
439 443

65

48 48 44 42

4Q15 1Q16 2Q16 3Q16 4Q16

40
 Income Statement
Per Business Unit R$ million - Quarterly

Note: All intercompany transactions are made at arms length basis 41

 Income Statement
Per Business Unit R$ million Annual

Note: All intercompany transactions are made at arms length basis 42

 Cristina Morgan C. Drumond
Head of IR
cristina.drumond@usiminas.com
Phone: 55-31-3499-8772
Fax: 55-31-3499-9357

Leonardo Karam Rosa

IR Manager
leonardo.rosa@usiminas.com
Phone: 55-31-3499.8550

www.usiminas.com/ri

ADR
Level I

Declarations relative to business and 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 Managements
expectations in relation to future performance, these expectations are highly
dependent on market behavior, on Brazils economic situation, on the industry
and on international markets, and are therefore subject to change.