7/31/2019 A Present A
1/38
1
2Q082Q08
7/31/2019 A Present A
2/38
2
Agenda
Global View
Usiminas
Investments
Mining & Logistics
Financials
Corporate Governance and Social Responsability
7/31/2019 A Present A
3/38
3
Agenda
Global View
Usiminas
Investments
Mining & Logistics
Financials
Corporate Governance and Social Responsability
7/31/2019 A Present A
4/38
4
327 350 372 395428 456
147 135 153141 146
210225 220
246 255260259
297 353384
428477
126
757164
596052
2003 2004 2005 2006 2007 2008F
Other USA/Canada LATAM Europe China
St eel Consum pt ion - W or ld( m i l l io n t )
So u r c e: I I SI - 2 0 0 8
Substantial growth in the past few years,mainly coming from China ...
974 1,079
1,1391,242
1,3231,414
7/31/2019 A Present A
5/38
5
31 . 533 . 842 . 848 . 651 . 653 . 1
72 . 498 . 2
1 2 0 . 2
4 8 9 . 2
W or ld St eel Prod uc t ionW or ld St eel Prod uc t ion
Brazil is the 9th largest producer...
So u r c e: I n t e r n a t i o n a l I r o n a n d St e e l I n s t i t u t e - I I SI - 2 0 0 8
2007
(million t.)
Chin a Japan USA Russ ia I nd ia S . Korea Germ any Ukra in e Braz i l I ta ly
7/31/2019 A Present A
6/38
6
416 449 462517 528
558 567602 615 627
650 655
779
595
Brazil
Mexic
oInd
ia
Australia
CIS
USAInt
egChina
South
Korea
(Inte
g)
Canada
Eastern
Europe
W
ester
nEu
rope
Japan
USAMi
ni
Glob
alAv
erage
Sour ce: WSD, May 200 8
Brazil has the lowest production cost in the world
Cost com pet i t i venessCos t com pet i t i veness
Production Cost USD / ton
(Slabs May 2008)
7/31/2019 A Present A
7/38
7
Agenda
Global View
Usiminas
Investments
Mining & Logistics
Financials
Corporate Governance and Social Responsability
7/31/2019 A Present A
8/38
8
Usiminas System is the 36th largest producer in the world and 1st f l a t s tee l
producer in Latin America
Brazi l ian St ee l Pr odu ct ionBrazi l i an St ee l Pro du c t ion
Top Braz i l ian Stee l
Produce rs - 200 7
( 33 .8 m i l l i on ton = Brazi l s c rude
stee l p roduct ion)
Gerdau
21.5%
ArcelorMit ta l
30 .3%
Usiminas
25.7%
Othe rs
6.7%
CSN
15.8%
Majo r P roduce rs 2007( c rude s tee l p roduc t i on - m i l l i on t . )
20,2
20,5
22,8
22,9
26,5
28,6
32,8
33,8
34,5
116,4
8 ,735 - U SI M I N AS
10 - W uhan
9 - US Steel
8 - Tangshan
7 - J iangsu Shagang
6 - Tat a St ee l
5 - Baos tee l
4 - Posco
3 - JFE
2 - N ipp on S tee l
1 - A rcelo r M i t ta l
Source : I BS - 200 8 and Me ta l Bu l l e t i n - 2 008
7/31/2019 A Present A
9/38
9
iBoard of Directors from solid Brazilian and foreign groups
iLong-term commitment
iExcellence and experience of management
Exce l l ence o f t h e m a in shareho lde rsShareho lde r St ru ct u r eShareho ld e r St ru ct u r e
Free Float
50 .2%
Previ
5 .2%
Free Float12 .9%
Votorantim /
Camargo
Corr a Group
11 .5%
Usiminas
Pensions Fund
5.0%
VALE
2.9%
Nippon Group
12 .3%
ControlGroup31.9
%
Total Capital
June , 2008
PN s - 5 0 .2 %ON s - 4 9 .8 %
7/31/2019 A Present A
10/38
10
Usim inas i s s t r a t eg ica l l y locat edUsim inas i s s t r a t eg ica l l y locat edClo se t o m a jo r d o m e st i c m a rk e t s
I r o n O r e Mi n e
2 p o r t s
Rai l road ( MRS)
Braz i lB raz i l
(Minas Gerais)
(So Paulo)(Rio de Janeiro)
(Esprito Santo)
Praia Mole
Terminal
IngTerminal
Cubato
Terminal
So Paulo
BeloHorizonte
MRS
J. Bon i fJ. Bon i f ciocio
PlantP lant
I n tI n t . C. C m a r am a r a
PlantP lant
I r o n Or eI r o n Or e
MinesMines
San tanaSan tana
ParaPara soso PlantP lant
7/31/2019 A Present A
11/38
11
Opera t ing Pro f i t Ma rg ins %
High quality, value-added products (from slabs to coated products)
Among the lowest cost producers in the world
Source : I n tege r Research
Cost com pet i t i venessCos t com pet i t i veness
2005 2006 2Q 2007
43,040,8
39,4
35,233,4
0
10
20
30
40
50
China Steel
Tata SteelUsiminas
Novolipetsk CSN
37,134,6
28,7 28,2 27,5
0
10
20
30
40
50
Magnitogorsk
Tata Steel
UsiminasNovolipetsk
CSN
40,0
37,5
31,7 30,929,9
0
10
20
30
40
50
JSW Steel
CSN
Novolipetsk Usiminas
Ezz
7/31/2019 A Present A
12/38
12
M aj o r con su m e r s
Heavy p la te 1 ,0 0 0 ,0 0 0 1 ,0 0 0 ,0 0 0
Ho t co il 3 ,5 5 0 ,0 0 0 2 ,1 0 0 ,0 0 0
Cold coi l 2 ,5 0 0 ,0 0 0 1 ,2 0 0 ,0 0 0
-
-
Capac i t y ( t onnage / yea r )
3 6 0 ,0 0 0
4 8 0 ,0 0 0
Slab 5 ,0 0 0 ,0 0 0 4 ,5 0 0 ,0 0 0
Elec t ro ga lvan ized co i l
Ho t d i p ga l van i zed co i l
Pipelines, pressure vessels,
shipbuilding, general structures.
Agricultural machinery, pipe and tube,chassis, gas cylinders, containers,general structures.
Auto industry, household appliances,
packaging.
Auto industry, household appliances.
Auto industry, household appliances,civil construction.
Rolling mills.
I p a t i n g aPlant
Cubato
Plant
Produc tsProduc ts
Complete product lines: from slabs to coated products
Uncoa
te
d
Coated
7/31/2019 A Present A
13/38
13
SalesSales
( m i l l io n t o n . )( m i l l io n t o n . )
Domestic market is a priority
As o f June, 20 08
84%
77%
67%
72%69%70%
67%
16%
23%
33%
28%
31%30%33%
2002 2003 2004 2005 2006 2007 1H08
7 ,7 2 2 7 ,7 1 08 ,0 6 2
7 ,3 4 8
7 ,9 4 5
Dom est ic Mar k et Fo r eign Mar k et
7 ,9 9 0
3 ,8 0 3
7/31/2019 A Present A
14/38
14
SalesSales
Domestic Market(Volume: 3.194 million t. - 1H08)
Combination of market leadershipand diversified customer base
reduces market risk
Spain
14%
Argentina
21%
USA
14%
Indonesia
2%
Bolivia
3%
Mexico6%
Taiwan
5%
South Korea
7%
Chile
11%
Germany6%
Others
11%
Distributors
23%
Autoparts
18%
Auto
Industry
13%
CivilConstruction
6%
Household
Appliances
2%
Industrial
Equipment
9%
Elect-
Equipment
4%
Packaging
1%
Pipelines
7%
Others
10%
Small Diam.
Tubes
7%
International Market(Volume: 0.609 million t. - 1H08)
Diversified geographic sales
As o f June, 20 08
7/31/2019 A Present A
15/38
15
USIMINAS
15%
Others
17%
ArcelorMittal
14%
CSN / Inal11%
Gerdau
8%
Armco
4%
Benafer
4% Pires do Rio /
Cibrao
4%
Tuper
4%
Frefer
4%
Tyco Metal
4%
Zamprogna
7%
Mangels4%
SteelSteel D ist r i bu t i on Sect o rD ist r i bu t i on Sect o r
Source : I NDA - June , 2008
7/31/2019 A Present A
16/38
16
Mark e t ShareMarke t Share
Do m est i c M ar k e t ( % ) - 1 H0 8Do m est i c Mar k e t ( % ) - 1 H0 8Combination of market leadership and diversified customer base reduces market risk
* F la t Stee l m ark et : Us im inas System , CSN, Aces i ta and Arce lor Bras i l .
4 9 % M ar k e t sh a r e *
8 9 %
2 9 %
6 8 %
6 6 %
6 1 %
1 0 %
4 2 %
4 7 %
5 2 %
6 0 %
0,0% 20,0% 40,0% 60,0% 80,0% 100,0%
Distributors
Packaging
Civil Construction
Shipbuilding
Elect. Equipment
Household Appliances
Pipelines
Small Diam. Tubes
Autoparts
Auto Industry
TOTAL
OthersI pa t ing a and Cubato P lan t s
4 8 %
5 3 %
4 0 %
5 8 %
3 9 %
8 6 %
3 3 %
7 1 %
1 0 0 %
3 4 %
1 2 %
Flat St eel
As o f June, 20 08
7/31/2019 A Present A
17/38
17
Braz i lBraz i l s ou t l ook - 2008s ou t l ook - 20 08
i Flat steel demand is expected to exceed 10%
Vehicle production may reach 3.400 million (Anfavea)
Industrial segment should outperform, growth to exceed 10%
Civil Construction growing activities
So u r c e: I B S / U si m i n a s / A n f av e a
8,576 8,90810,109
9,2299,902
11,66912,922
2002 2003 2004 2005 2006 2007 2008E
+ 1 8 %
1 ,793 1 ,828
2 ,2102 ,528 2 ,611
2 ,973
3 ,400
2002 2003 2004 2005 2006 2007 2008E
+ 1 4 %
Vehicle Production (1,000 vehicles)Flat Steel Demand (1,000 t.)
+ 1 1 %
+ 1 4 %
7/31/2019 A Present A
18/38
18
I nv est m en ts & Techno logyI nv est m en ts & Techno logy
Commitment to the best technology
Partnership with Nippon Steel assures access to state-of-the-art technology
in steel production, including high value-added products
6th Technology Transfer Agreement with Nippon Steel, valid until 2009
425 received patents, of which 23 are international
150 researchers
Usiminas sells US$ 2 for each US$ 1of acquired technology.
7/31/2019 A Present A
19/38
19
Agenda
Global View
Usiminas
Investments
Mining & Logistics
Financials
Corporate Governance and Social Responsability
7/31/2019 A Present A
20/38
20
Production capacity
5 million tons/yr
Start of works1st Half 2009
Start up
2.5 million t/yr in 20112.5 million t/yr in 2012
Coke plant2.0 million t/yr
Power plant250 MW
TOTALTOTAL InvestmentsInvestments: US$ 5.7: US$ 5.7 billionbillion **
* Does not include investment in thermoelectric powerplant of approximately US$ 400 million
NewNew Slab PlantSlab Plan t ( San t ana do Para( San t ana do Para so )so)
7/31/2019 A Present A
21/38
7/31/2019 A Present A
22/38
22
LINEVOLUME
thsd tons
START UP
FORECASTPROJECT VALUE
Hot Strip Mill 2,300 / 4,800 1st Half 2011 US$ 1.0 billion
BF1 Revamping 3.5 thsd/day => 4.5 thsd/day Concluded US$ 170 million
Continuous Casting
Machine+350 / ano Concluded US$ 140 million
Other US$ 1.1 billion
Total Investments
Technology updating, cost savings andenvironmental control
US$ 2.4 billion
JosJos Bon i fBon i f ciocio Plan t ( Cub atPlan t ( Cub at o)o )
Investments
7/31/2019 A Present A
23/38
23
Plant / EquipCAPACITY
tonsPROJECT VALUE
Concentration Plant 16 million US$ 650 million
Pellet Plant 7 million US$ 750 million
Mining Equip. - US$ 90 million
Railroad conection - US$ 60 million
Others - US$ 20 million
Acquisition 1,4 billion US$ 1,9 billion
Total Investments US$ 3.47 billion
Mi n i ngM i n i ng
Investments
7/31/2019 A Present A
24/38
24
Usi m i nas 2013Usi m i nas 2013
Techn ica l con f igu r a t i onTechn ica l con f ig ur a t i on o f t h eo f t h e p l an t s af t e rp l an t s af t e r t h et h e
i n v est m en t p r o g r a mi n v est m en t p r o g r a m
Current After Current After
Slabs 5.00 5.00 4.50 4.80 ( 1)
Hvy Plate 1.00 1.50 1.00 1.00
Hot Strip 3.60 3.80 2.10 4.40 / 6.10 ( 2 )
Cold Strip 2.50 2.50 1.20 1.20
EG 0.36 0.36 - -
HDG 0.48 1.03 - -
Intendente Cmara Plant
million tons
Jos Bonifcio Plant Santana do Paraso
New Plant
-
-
5.00
-
-
-
Source: Usiminas
(1) Concluded - May/2008(2) Additional expansion - up to 6.10 million tons/year
7/31/2019 A Present A
25/38
25
Agenda
Global View
Usiminas
Investments
Mining & Logistics
Financials
Corporate Governance and Social Responsability
7/31/2019 A Present A
26/38
26
J. Mendes is the last sizeable mining asset available in the Quadriltero Ferrfero,a major iron ore province in Brazil
The acquired company is comprised of four mining sites with total expectedr esour ces o f 2 .7 to 3 .0 Bt and expect ed reserv es o f 1 .1 t o 1 .8 B t
Expected mine use fu l l i f e of at least 2 5 y e a rs
Expected iron content between 4 6 a n d 4 8 %
Current production level at roughly 5 MMt / y ear
J. Mend es b r ie f o ver v iewJ. Mend es b r ie f over v iew
Som isa Glob al / Cam ar g os J Men des Pau de Vin h o
7/31/2019 A Present A
27/38
27
0
10
20
30
2008 2009 2010 2011 2012 2013 2014
Pellet Feed
Sinter Feed
Lump
Min in g Asse t sMin ing Asset s
Source: Usiminas
5.2 5.8
8.8 9.010.5
27.729.2
13.0
2.2
14.0
7/31/2019 A Present A
28/38
28
Min ing Asset sMin in g Asse t s
A l t h o u g hA l t h o u g h I pa t i nga and San tana do Pa r aI pa t i nga and San tana do Pa r a so doso do n o t h a v en o t h a v e
log is t ics accesslog is t ics access t ot o be supp l i ed by i t sbe supp l i ed by i t s m i n e sm i n e s onon Ser raSer ra
Azu lAzu l , Us im inas, Us im inas w i l l h av ew i l l h av e t h et h e bene f i tbene f i t o fo f f u l lf u l l hedgehedge
aga ins t i r onaga inst i r on o r eo r e p r i ce f l uc tu a t ion sp r i ce f l uc tu a t i ons
Mining29.2 MM t/yr
J. Bonifcio Plant10.3 MM t/yr
Dom. Mkt. Sales
2.2 MM t/yr
Exports
16.7 MM t/yr
Supply
IntendIntend. C. Cmaramara PlantPlant8.0 MM t/8.0 MM t/yryr
Santana do ParaSantana do Parasoso
8.0 MM t/8.0 MM t/yryr
JosJos BonfBonfcio Plantcio Plant
2.0 MM t/2.0 MM t/yryr
HedgeHedge
Source: Usiminas
7/31/2019 A Present A
29/38
29
Start of operations2012
Logis t ics Asset sLog is t ics Asset s
Area w ill be a benchmark f rom t he environm ental point of view
Amount est imat ed for environm ental recovery - up to R$ 40 m illion
PriceR$ 72 million
Land850 thousand m
Shipping capacity25 million tons of Iron Ore,
in addition to other products
Usiminas acquired land in Sepetiba Bay where it will build a maritime terminal
7/31/2019 A Present A
30/38
30
Agenda
Global View
Usiminas
Investments
Mining & Logistics
Financials
Corporate Governance and Social Responsability
7/31/2019 A Present A
31/38
31
STEELMAKING MINING TOTAL
2008 1,480 960 2,440
2009 2,550 1,060 3,610
2010 4,410 480 4,890
2011 1,830 770 2,600
2012 360 200 560
TOTAL 10,630 3,470 14,100
Estimated Capex for the Investment Program fits into thecapital structure considered adequate for the company
US$ million
7/31/2019 A Present A
32/38
32
530734 657
831999
1,9222,269 2,010
2,581
1.181
1.602
31%35% 32%
35% 35%
46%42%
35% 36% 35%37%
1999
1,81
2000
1,83
2001
2,35
2002
2,92
2003
3,07
2004
2,93
2005
2,44
2006
2,18
2007
1,95
1H07
1,75
1H08
1,74
Ebitda Ebitda Margin
AVG.
R$/US$
Consol idatedConso l idated Ebi tdaEbi tda
Investment return and market conditions have allowed consistent cash generation
US$ Million
As o f June, 20 08
7/31/2019 A Present A
33/38
33
83
2,841
238 434 358 284 473 460138 216 9
409
86
Cash 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
on
Debt has an adequate maturity profile
SwapCDI5%
Long8 3 %
US$ 2,659 M
Shor t1 7 %
US$ 529 M
Fore ign6 5 %
Local3 5 %
TERM CURRENCY
Stand by Facility - US$ 300 million
Note: Pr inc ipa l Va lues
US$ Million
Conso l ida ted Deb t Mat u r i t yConso l ida t ed Deb t Ma tu r i t y
As o f June, 20 08
7/31/2019 A Present A
34/38
34
3 4 6(537)
355
860
1,317
2,3342,491 0,1-0,20,20,4
0,7
2,33,1
0
1.000
.000
3.000
.000
2002
3,53
2003
2,89
2004
2,65
2005
2,34
2006
2,14
2007
1,77
1H08
1,59
Net Debt Net Debt / Ebitda
R$/US$
Tot a l Ne t DebtTo t a l Net Debt
And have made it possible to considerably reduce debt
US$ Million
As o f June, 20 08
7/31/2019 A Present A
35/38
35
Con sol idat ed Figu r es
Finan cia l H igh l igh t sFinan cia l H igh l ig h t s
Jun 30/08 Dec 31/07 Dec 31/06 Dec 31/05 Dec 31/04
Crude Steel Produc. (thsd t) 3,983 8,675 8,770 8,661 8,951
Sales (thsd t) 3,803 7,990 7,945 7,348 8,062
Net sales (US$ million) 4,443 7,131 5,709 5,354 4,197
EBITDA (US$ million) 1,602 2,581 2,010 2,269 1,922Net Profit (US$ million) 892 1,607 1,156 1,609 1,033
Gross Debt (US$ million) 3,187 1,693 1,628 1,685 2,033
Net Debt / EBITDA 0.1 (0.2) 0.2 0.4 0.7
EBITDA / Interest 14.4 20.0 16.9 11.8 11.3
7/31/2019 A Present A
36/38
36
Agenda
Global View
Usiminas
Investments
Mining & Logistics
Financials
Corporate Governance and Social Responsability
7/31/2019 A Present A
37/38
37
I nv est m en t s i n Socia l Respons ib i l i t yI nves tm en t s i n Socia l Respons ib i l i t y
Env i r onm en ta l Pro t ect i on
C o m m u n i t y
- More than R$ 2 billion invested in Ipatinga and Cubato plantssince 1992.
- Usiminas and Cosipa were the 2nd and 3rd steel companies in theworld to be certified with ISO 14001.
- Fresh water recirculation rate above 93%.
- Green belt in Ipatinga area is 10 times above
recommended level (World Health Organization).
- More than R$ 139 million invested in cultural activities in thelast fifteen years (tax incentives), involving 3 thousandartists and 200 thousand spectators.
- Construction of its 2nd hospital, one of three in Brazilaccredited by ONA (National Accreditation Organization),
through USIMINAS Foundation, which is self sustaining. Bothhospitals provide healthcare to a region with 600 thousandinhabitants.
- Investment in education through So Francisco Xavier School,maintained by USIMINAS foundation, teaching more than 3thousand children and young people.
- The city of Ipatinga holds a high standard of humandevelopment, as defined by the UN - United Nations.
7/31/2019 A Present A
38/38
38
w w w .u si m i n as.co m .b r / r i
Investor Relations:
Bruno Seno Fusaro (Head of IR) Matheus Perdigo Rosa Luciana Valadares dos Santos
[email protected] [email protected] [email protected].: + 55-31-3499-8772 Tel.: + 55-31-3499-8056 Tel.: + 55-31-3499-8619Fax: + 55-31-3499-9357
Gilson Rodrigues Bentes Diogo Dias GonalvesCosipa (So Paulo Office) [email protected]@cosipa.com.br Tel.: + 55-31-3499-8710
Tel.: + 55-11-5070-8980
Declarations relative to business perspectives of the Company, operating andfinancial results and projections, and references to the growth of the Company,constitute mere forecasts and were based on Managements expectations inrelation to future performance. These expectations are highly dependent on
market behavior, of Brazils economic situation, on the industry and oninternational markets, and are therefore subject to change.
ADRLevel I