Presentation

Apresentao Usiminas
1Q17
2T11 - APIMEC

Classification of the information: Confidential

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, First educational institution in Brazil
encouraging around 2,000 social projects 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
 World Crude Steel Market in 2016
Million Tons

China 808.4

Japan 104.8

India 95.6

USA 78.6

Russia 70.8

South Korea 68.6

Excess of Capacity
Germany 42.1 741
Nominal
Turkey 33.2
Capacity
Brazil 30.2 Production
2,351
Ukraine 24.2 1,610

Source: World Steel Association/OECD

10
 World Crude Steel Production

2005 2016

10%
17% 2%
21% 21%
European Union
6%
2% Europe (others)
Others
7%
North America
12%
South America 2%
1%
Africa
China
31% 11% Asia and Oceania*

4% 50%
2%

+40%
1,149 million tons 1,610 million tons

*Except China
Source: World Steel Association 11
 Crude Steel Consumption per Capita
Kg per habitant

1980 2000 2015

China 34 98 489
South Korea 160 818 1.113
Japan 611 601 497
United States 376 425 297
Germany 469 475 484
Spain 202 435 275
Brazil 101 93 103
Mexico 120 142 191

World Average 152 133 208

Source: World Steel Association 12

 Brazilian Flat Steel Apparent Consumption
Evolution
Quarterly - Thousand Tons

2,434 2,419 2,452

2,250 162
2,147 281 311
138
118

1,467
1,351 1,317 1,316
1,263

766 761 805 821 825

1Q16 2Q16 3Q16 4Q16 1Q17

Usiminas Other Companies Imports Total

Source: Usiminas Commercial Planning 13
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

14
Agenda

Usiminas Market Usiminas and its Financial

Profile Outlook business units Results

15
 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 16
Sales Volume
Steel Business Unit Quarterly - Thousand Tons

959
930
903 899 891
145 105
115 71
145

814 821
784 825
758

1Q16 2Q16 3Q16 4Q16 1Q17

Exports Domestic Market

17
Exports Main Markets
Steel Business Unit

4Q16 1Q17
Germany
2% 0%
Argentina
3% 3% 1%0%
0% 13% United Kingdom 3%
1% 20%
0% Mexico
1% 4%
4% Switzerland 5% 36%
China
8%
USA 8%
Spain
0%
6% Portugal
0% Belgium
Canada
46% Others
35%

18
Cost of Goods Sold - COGS
Steel Business Unit

4Q16 1Q17

11% 7%
Other Raw Materials -11%
33% 31%
-13% Labor (direct and indirect)
4%
Coal and Coke
4% Iron Ore and Pellets
7%

7% Structural Expenses
7%
Energy and Fuels
8% Depreciation 17%
17% 10%
Spare Parts
10% Inventories Variation
12% 12%
11% Others 16%

19
Adjusted EBITDA and EBITDA Margin
Steel Business Unit Quarterly - R$ Million

21%

14%

11%

488
3% 3% 465
332 342
295
224
25
72 46 93 50
1 (2)(35) (14) 1 1
(37)
(14) (42)(2) (34) (1) (23)
(71)

1T16 2T16 3T16 4T16 1T17

20
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)

21
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)
22
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

23
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

24
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

25
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
26
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

27
Sales Volume
Mining Business Unit Quarterly - Thousand Tons

974

786 789
344 -

171 181 657 643

-
16 28
23 69

614 592 608 588 615

1Q16 2Q16 3Q16 4Q16 1Q17

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

28
Iron Ore Price PLATTS (62% Fe CFR China)
US$/ton

86

71

56 59
48

1Q16 2Q16 3Q16 4Q16 1Q17

29
Adjusted EBITDA and EBITDA Margin
Mining Business Unit Quarterly - R$ million

48%

30%

21% 52

16%
21 24
13

(3) 2 0
(4) (1)

(12)
-11%

1Q16 2Q16 3Q16 4Q16 1Q17

Sale of Energy Reported EBITDA Reported EBITDA Margin

30
 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$1.3 billion in 9M16

Betim
Santa Luzia
Serra

Taubat
Guarulhos
So Paulo

Porto Alegre

31
Adjusted EBITDA and EBITDA Margin
Steel Processing Quarterly - R$ million

7%

4%
3%
2%
1%

37

22

14
9
3

1Q16 2Q16 3Q16 4Q16 1Q17

Reported EBITDA Reported EBITDA Margin

32
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$462 million in 9M16

Steel Structures

Braslia 3rd Bridge

33
33
Adjusted EBITDA and EBITDA Margin
Capital Goods - Quarterly - R$ million

6%
5%

1%

8 10
1
(7) (4)
-5%
-7%

1Q16 2Q16 3Q16 4Q16 1Q17

Reported EBITDA Reported EBITDA Margin

34
Agenda

Usiminas Market Usiminas and its Financial

Profile Data business units Results

35
Adjusted EBITDA and EBITDA Margin
Consolidated Quarterly - R$ million

23%

14%
11%

3%
3% 559 533
344 307 350
234
37
117
72 52 68 (2) 0 (12) 1 (23)
(44) 1 (36) (4)
(17)(41) (6) (33)
(71)

1T16 2T16 3T16 4T16 1T17

36
36
 Comparing Adjusted and CVM 527 EBITDA
Consolidated R$ Thousand

Consolidated (R$ thousand) 1Q17 4Q16 1Q16

Net (Loss) Income 108,318 (194,971) (151,377)

Income Tax / Social Contribution 58,855 418,323 (15,360)
Financial Result 54,581 87,053 (101,553)
Depreciation, Amortization 306,341 273,502 318,086

EBITDA - Instruction CVM - 527 528,095 583,907 49,796

Equity in the Results of Associate and Subsidiary

(37,080) (27,314) (51,845)
Companies

Joint Subsidiary Companies proportional EBITDA 27,973 27,973 45,597

Impairment of Assets - (350,449) 8,030

Adjusted EBITDA 532,769 234,117 51,578

37
Debt Profile (Principal)
Consolidated - R$ Million

2,416

239

1,073 1,074 1,074 1,073

2,177
199 199 199 199 796
745
564 149
406 137

73 875 875 875 875

93 608 647
14 548 15 333
0 78
14 16
Cash 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Local Currency Foreing Currency

38
Cash Position and Indebtedness (with interest money)
Consolidated - R$ Million

7,428 7,238
6,948 6,942 6,879

4,525
5,692 4,609 4,684 4,464

2,713 2,416
2,340 2,257
1,736

1Q16 2Q16 3Q16 4Q16 1Q17

Net Debt Cash Gross Debt

39
CAPEX
Consolidated - R$ million

70
67
2
4 5

50 14
3
6
37
2
64
10 23
48 3
42 3
25
18

1Q16 2Q16 3Q16 4Q16 1Q17

Others Mining Steel

40
G&A Evolution
Consolidated - R$ million

4.4%
4.2% 4.3%
4.0%
3.9%

93
90 91
86 87

1Q16 2Q16 3Q16 4Q16 1Q17

G&A G&A/Net Revenues

41
Working Capital
Consolidated R$ billion

2.6
2.5
2.4
2.2 2.1

1Q16 2Q16 3Q16 4Q16 1Q17

42
Working Capital Steel Inventories
Thousand Tons

Inventory
turnover
(days) 648 648

484

439 443

48 44 65 63
42

1Q16 2Q16 3Q16 4Q16 1Q17

43
 Gross Profit, EBIT and Net Income - Quarterly
Consolidated - R$ million

481

266 259

283*
185

3 108
(41)

(34)

(123) (107)
(151)
(195)

(293)
(320)

1Q16 2Q16 3Q16 4Q16 1Q17

USD/BRL 3,904 3.558 3.210 3.246 3.259

End of period

Gross Profit EBIT Net Income

*Reversion of impairment in the Mining Unit of R$357.7 million,
44
 Income Statement
Per Business Unit R$ million - Quarterly

Income Statement per Business Units - Non Audited - Quarterly

R$ million Mining Steel* Steel Processing Capital Goods Adjustment Consolidated

1Q17 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17 4Q16

Net Revenue 108 79 2,219 1,959 567 480 83 106 (626) (504) 2,351 2,120

Domestic Market 108 79 1,978 1,797 567 480 82 105 (626) (504) 2,110 1,958

Exports - - 240 161 0 0 1 1 - - 241 162

COGS (53) (47) (1,798) (1,725) (512) (453) (82) (103) 575 467 (1,870) (1,861)

Gross Profit (Loss) 55 31 421 233 55 27 1 4 (51) (36) 481 259

Operating Income (Expenses) (42) 319 (218) (246) (26) (26) (11) (25) 1 2 (296) 24

EBIT 13 350 203 (13) 29 2 (10) (21) (50) (35) 185 283

Adjusted EBITDA 52 24 465 224 37 9 (4) (7) (16) (15) 533 234

Adj.EBITDA Margin 48% 30% 21% 11% 7% 2% -5% -7% 3% 3% 23% 11%

Note: All intercompany transactions are made at arms length basis 45

 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.