Usiminas

ApresentaoResults
Usiminas
4Q12
2T11 - and 2012
APIMEC

Information Classification: Public

Agenda

Operational
Clique para Improvements
Profile
editar oand
texto Usiminas and its and Financials
Markets
mestre Business Units Results
2
 Time Line and Shareholder Composition

2012
2011 Entrance of
Ternium/ Tenaris
2010 Selling of Ternium in Usiminas
shares Control Group
2009
Creation of Joint Mining and New shareholders
2008 Foundation of Minerao Cooperation agreement
Solues Usiminas Usiminas Agreement with singned among
2005 Aquisition of J. due the MBL and Ferrous Niippon Group,
Mendes iron ore consolidation of Partnership with Ternium / Tenaris
mines the companies Rio Codeme and
1991 Listing on Latibex
Metform
Commercials and Usiminas
Negro, Dufer, Agreements with Pension Fund
Privatization Aquisition of Fasal and until 2031
1956 Zamprogna
MMX to explore
Usiminas:1991 Zamprogna, Pau de Vinho and
Foundation Cosipa: 1993 Usial and Usicort to use the
of Usiminas Southest Port
Single CNPJ:
1962- Operation Cosipa is Negociation with
Start Up incorporated by J. Mendes
Usiminas concluded

Acquisition of the
former Litigation
Area 3
Strategically Located

Mining

Steel

Steel processing

Capital Goods
4
 Complete Solution of Products and Services

Steel Processing Capital Goods

DOWNSTREAM

Steel

Mining Solues Usiminas * Usiminas Mecnica *

Automotiva Usiminas *

Ipatinga Metform and Codeme

stake **

Cubato
UPSTREAM

Minerao Usiminas * Unigal Usiminas *

* Controled by Usiminas ** Results accounted through equity income 5

 World Crude Steel Production in 2012
Million tons

China 708.8

Japan 107.2

USA 88.6

India 76.7

Russia 70.6

South Korea 69.3

Excess of
Germany 42.7 Capacity
542
Turkey 35.9 Excess of
Production
139
Brazil 34.7 Capacity Production
Consumption
Ukraine 32.9 2,090 1,548
1,409

Source: World Steel Association

6
 Flat Steel Brazilian Market
Million tons

Production Apparent Consumption

15.6 15.4
14.5
14.0
14.0
13.6

2010 2011 2012 2010 2011 2012 *

Inventories in the Distribution Network Imports

Million Tons Monthly basis

3,145
2.8 2.8 2.7 2.6
1,929 1,779
1.0 1.0 1.0 0.9

1Q12 2Q12 3Q12 4Q12 2010 2011 2012

Source: IABR / INDA / Usiminas * Estimated 7
Agenda

Operational
Improvements
Profile and Usiminas and its and Financials
Markets Business Units Results
8
 Steel Business Unit
Flat steel production

Installed Nominal Capacity : 9.5 million tons / year

Galvanized
Slab Caster Slabs Heavy Plates Hot Coils Cold Coils EG HDG

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

Cubato Plant 4,500,000tons 1,000,000tons 4,400,000tons 1,200,000tons - -

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

Optimized
Rolling - 1,900,000tons 3,200,000tons 1,950,000tons 350,000tons 1,020,000tons
Capacity

9
Steel Business Unit
Everyday steel application

Agricultural Household
Auto Industries Autoparts Machines Appliances

Cold Rolled and

Cold Rolled and Heavy Plates and Hot
Hot Rolled Galvanized (EG and
Galvanized (EG and HDG) Rolled
HDG)

Civil Construction Ship-Building Pipelines Pressure Vessels

Heavy Plates, Hot and Cold

Heavy Plates and Hot
Rolled and Galvanized (EG Heavy Plates Heavy Plates
and HDG) Rolled

10
Steel Business Unit
Crude steel production Thousand tons

Annual
7,299 7,158
6,699
5,637

2009 2010 2011 2012

Quarterly

1,783 1,858 1,845 1,837 1,804

1,672 Ipatinga
1,549 1,509

Cubato

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

11
Steel Business Unit
Sales Thousand tons

Exports Domestic Market

6,881
6,565
Sales Breakdown by
5,916
5,631
1,651
1,837 Segments 2012
1,045
Distributors
1,588
Auto Parts
23%
18% Auto Industries
1% Industrial Equipment
5,044 3%
4,914 4,871 Civil Construction
4,043 7%
16% Small Diameter Tubes
8% Household Appliances
10% 14% Rolled Machinery
2009 2010 2011 2012 Other

12
Steel Business Unit
Concluded investments

Hot Strip Mill II - Cubato Galvanizing Line II - Ipatinga

Higher product performance and efficiency Bigger production capacity

Exclusive coils dimensions in Brazil Increase in products portfolio

Higher productivity for customers Deep drawing steel

High level of automation Products Inovation

Lower electric energy consumption High-strength steels

High-strength steels Excellent flatness

Main Applications

Production capacity of 2.3 Production capacity of 550

million tons per year thousand tons per year
13
Mining - Minerao Usiminas

Located in Serra Azul/MG

4 mining sites, acquired from J. Mendes Group in February 2008
Reserves of 2.6 billion tons of iron ore
Life time until 2045
MRS: 20% of voting shares, being part of the Control Group
Retroarea in Itagua Port

Igarap So Joaquim
De Bicas

Minerita
MUSA MMX MUSA
MUSA Leste Pau de Vinho
70.0% Central

MUSA Ferrous
Oeste Ferrous Com Emicon
Arcelor (Santanense) isa
30.0% Mittal

MBL

Itatiaiuu

Minerao Usiminas
14
Mining - Minerao Usiminas
Million tons

Production:

6.8 6.7
6.3
5.5
3.8

2008 2009 2010 2011 2012

Sales:

6.0 6.1
5.3 5.6
4.2

2008 2009 2010 2011 2012

15
Mining - Minerao Usiminas
Investment Plan

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

Friable Project : ongoing Compact Project:

Estimated Capex of R$800 million under detailing phase

16
Retroarea Itagua Port

17
17
 Steel Processing
Solues Usiminas and Automotiva Usiminas

Solues Usiminas

11 industrial units in MG, SP, RS, ES, BA

and PE
Processing capacity of 2 million tons/year
Net Revenue of R$1.7 billion in 2012 Recife
Camaari

Automotiva Usiminas Betim

Santa Luzia
Serra
Located in Pouso Alegre/MG, close to Campo Limpo Paulista
major auto makers Taubat
Guarulhos
Offers wide solutions to the Automobile So Paulo

Industry
Cachoeirinha
Net Revenue of R$291.8 million in 2012 Porto Alegre

Automotiva
Solues Usiminas
18
Capital Goods
Usiminas Mecnica

Braslia 3rd Bridge

Located in Ipatinga/MG, It is one of the
largest capital goods companies in Brazil
Market Sectors: Steel Structures,
Shipbuilding and Offshore, Oil and Gas,
Industrial Equipment, Industrial Assembly,
Foundry and Railcars
Net Revenue of R$1.0 billion in 2012

Platform Ship Panel

19
19
Agenda

Operational
Improvements
Profile and Usiminas and its and Financials
Markets Business Units Results
20
 Increasing Coke Production
Coke Plant #3 (Ipatinga) Thousand tons

Average 2012:
+8.4% 66.8
Average 2011: 61.6

67.3 67.5 66.2 68.5 67.0 68.8 68.0 66.5 69.2 66.1 68.1
65.3 65.8
60.3 58.8 61.9 64.1 63.7 63.5 63.1 62.2
59.0
55.3 54.6

21
Lower Cost Iron Ore Blend
Blast Furnaces (Cubato) Thousand tons

Metallic burden optimization in Blast Furnaces in Cubato

Pellet

148
120
103
86 78

0 0 0 0

Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12

Lump
224
203
186 183
162
146 137 132
93

Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12

22
R$/t
j
Cost Reduction with Natural Gas Utilization
US$/ ton

10.9

9.0

4.9 4.6
3.6 3.2
2.1 2.3 2.5 2.3
1.8
0.2
-0.3

23
Improving Continuous Casting Productivity (CC)
Increasing slabs production Thousand tons

Slab Production

+7.9%

601

557

6 CCs
8 CCs

First1Q2012
Quarter 2012 4Q2012
Last two months 2012

24
Net Revenue - Consolidated
R$ million

12,962
12,709
11,902

10,924

2009 2010 2011 2012

25
EBITDA - Consolidated
R$ million

Annual
38%
35% 36%

6,008
5,003
4,368 20%
16%

2,650 11%
1,716 6%
1,264
798

2006 2007 2008 2009 2010 2011 2012

Quarterly
12%
11% 12% EBITDA EBITDA Margin

365 8%
337 343 7% 7%
7%

4%
218 232 226
190
150

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 26

Working Capital
R$ billion (Consolidated) / Thousand tons (Steel Business)

5.4 5.3 R$ 2.2 billion Reduction

5.2 5.0 4.7
4.3
3.8
3.3
2.6

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

Reduction of 482 mil thousand tons in inventories
1,513 1,491
1,281
1,126
1,031

90 80 62 55 51

4Q11 1Q12 2Q12 3Q12 4Q12

Inventories Inventories in days 27
Capex Evolution Consolidated
R$ million

3,192
81 - 22%
41

2,490

276 - 34%

365
1,652
3,070 112

555

1,849

985

2010 2011 2012

Steel Mining Others

28
Leverage Consolidated Basis
R$ billion

5.2
4.7
4.2
3.6
3.1
2.5
4.2 4.1
1.6 3.9 3.9 3.7
1.0
3.4
2.8
2.3

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

Net Debt Net Debt/EBITDA (x)

29
Debt Profile and Cash Position - Consolidated
R$ million

4,718

Duration: R$: 2.6 years

1,708 US$: 3.1 years

1,723
1,593
1,418 1,490
3,010 1,353
631
638
495 734
683
1,037
1,092 273 35 151
955 923
756
410 2 1
316
33 150
Cash 2013 2014 2015 2016 2017 2018 2019 2020 on

Local Currency Foreign Currency

30
 Quarterly Results Accounted
Business Unit

Steel
R$ million Mining Steel Capital Goods Adjustment Consolidated
Processing

4Q12 3Q12 4Q12 3Q12 4Q12 3Q12 4Q12 3Q12 4Q12 3Q12 4Q12 3Q12

Net Revenue 292 154 2,827 2,955 508 540 257 305 (676) (564) 3,208 3,390

Domestic Market 213 95 2,188 2,284 502 532 257 305 (676) (533) 2,484 2,683

Exports 79 59 639 671 6 8 0 0 (0) (31) 724 707

COGS (108) (61) (2,908) (2,950) (464) (481) (237) (278) 673 546 (3,044) (3,224)

Gross Profit 184 93 (81) 5 44 59 20 27 (4) (18) 163 166

Operating Income
(20) (47) (140) (187) (30) (52) (18) 2 (0) (0) (208) (284)
(Expenses)

EBIT 164 46 (221) (182) 14 7 2 29 (4) (18) (45) (118)

EBITDA 173 56 20 57 28 20 8 36 (3) (19) 226 150

EBITDA Margin 59% 36% 1% 2% 6% 4% 3% 12% - - 7% 4%

Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity
Income. 31
 Annual Results Accounted
Business Unit

Income Statement per Business Units - Non Audited - 2012

Steel
R$ million Mining Steel Capital Goods Adjustment Consolidated
Processing

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Net Revenue 898 974 11,453 10,421 2,077 2,149 1,017 1,419 (2,736) (3,061) 12,709 11,902

Domestic Market 669 822 9,054 9,047 2,046 2,107 1,015 1,418 (2,673) (3,049) 10,111 10,345

Export Market 229 152 2,399 1,374 31 42 2 1 (63) (12) 2,598 1,557

COGS (342) (270) (11,489) (10,231) (1,887) (1,977) (997) (1,235) 2,667 3,105 (12,048) (10,608)

Gross Profit 556 704 (36) 190 190 172 20 184 (70) 44 660 1,294

Operating Income
(151) (138) (470) (244) (183) (192) (56) (99) 0 5 (860) (668)
(Expenses)

EBIT 405 566 (506) (54) 7 (20) (36) 85 (70) 49 (200) 626

EBITDA 439 604 378 463 60 41 (11) 112 (68) 44 798 1,264

EBITDA Margin 49% 62% 3% 4% 3% 2% -1% 8% - - 6% 11%

Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity
Income. 32
 ADR
Level I

Cristina Morgan C. Drumond

Head of IR
cristina.drumond@usiminas.com
Phone: 55-31-3499.8772
Fax: 55-31-3499.9357

Leonardo Karam Rosa Diogo Dias Gonalves Luciana Valadares dos Santos
leonardo.rosa@usiminas.com diogo.goncalves@usiminas.com luciana.santos@usiminas.com
Phone: 55-31-3499.8550 Phone: 55-31-3499.8710 Phone: 55-31-3499.8619

www.usiminas.com/ri

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 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.