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Usiminas Presentation 1Q12

Usiminas Presentation 1Q12. Agenda. Market Overview. Usiminas and its Business Units. Financial Highlights. Clique para editar o texto mestre. 2. World Production - 2011. Total 1,490 million tons. Production per Company – 2010*.

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Usiminas Presentation 1Q12

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  1. UsiminasPresentation 1Q12

  2. Agenda Market Overview Usiminas and its Business Units Financial Highlights Clique para editar o texto mestre 2

  3. World Production - 2011 Total 1,490 million tons Production per Company – 2010* Source: World Steel * 2011 data not available yet

  4. Value Transfer on the Steel Chain Profit distribution on the steel production chain – % Source: Mckinsey

  5. Brazilian Market Flat Steel Production– million tons ApparentConsumption– million tons InventoriesintheDistributionNetwork Flat Steel Imports – thousand tons Source: IABR / INDA

  6. Domestic Market Benefit from the Brazilian positive outlook • 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$279 billion MEDIUM AND LONG TERM PROJECTS 2012 ~ R$ 230 millions 2012 ~ R$ 761 millions 2012 ~ R$ 25,6 Bi 2012 ~ R$ 11.1 Bi 2011-2015 ~ US$ 389 Bi Source: Valor Economico, PAC’s website, Petrobras’swebsite,Portal da Copa – Governo Federal

  7. Agenda Market Overview Usiminas and its Business Units Financial Highlights Clique para editar o texto mestre

  8. Time line 2012 Entrance ofTernium/ Tenaris in Usiminas’ ControlGroup NewshareholdersagreementsingnedamongNiipponGroup, Ternium / Tenarisand Usiminas Pension Fund. 2011 2010 Selling of Ternium shares Joint Mining and Cooperation Agreement with MMX, MBL and Ferrous Negociation with J. Mendes concluded Acquisition of Litigation Area Creation of MineraçãoUsiminas Port Agreement MineraçãoUsiminas and MMX 2009 2008 SoluçõesUsiminas, con-solidation of the companies Rio Negro, Dufer, Fasal and Zamprogna and industrial units Usial and Usicort Single CNPJ: Cosipa is incorporated by Usiminas 2005 Aquisition of J. Mendes iron ore mines Aquisition of Zamprogna 1991 Listing on Latibex 1956 Privatization Usiminas:1991 Cosipa: 1993 Foundationof Usiminas OperationStart Up 8

  9. Strategically Located Mining Steel Steel processing Capital Goods

  10. Everyday Steel Application Autoparts Hot Rolled Ship-Building Pipelines PressureVessels Civil Construction Agricultural Machines HouseholdAppliances Auto Industries HeavyPlates, Coldand Hot RolledandGalvanized (EG and HDG) HeavyPlates HeavyPlatesand Hot Rolled HeavyPlates ColdRolledandGalvanized (EG and HDG) HeavyPlatesand Hot Rolled ColdRolledandGalvanized (EG and HDG)

  11. Shareholder Composition Voting Capital – ON Total Capital 1,013,786,190 Control Group: 63.86% of Voting Capital ON 505,260,684 PN 508,525,506 The highlighted shareholders are the ones in the control group and those represented on the Board of Directors. The Board of Directors is represented by: 3 representatives from Ternium / Tenaris, 3 from Nippon Group, 1 from Usiminas Pension Fund, 1 from the Employees Representative, 1 from Previ and 1 from Geração Futuro Funds.

  12. Complete solution of services and value added products through its Business Units SteelProcessing Capital Goods DOWNSTREAM Steel Mining Soluções Usiminas * Usiminas Mecânica * Automotiva Usiminas * Ipatinga MetformandCodemestake ** Cubatão UPSTREAM Unigal Usiminas * Mineração Usiminas * * Controled by Usiminas ** Results accounted through equity income

  13. Investments Total amount for 2011 R$ 2.5 billion Strategic focus on enhancing competitiveness of current operations In operation Hot Run Hot Strip Mill 2.3 million tons (Usiminas Cubatão) Foundry 24,000 tons (Usiminas Mecânica) CokePlant 3 750,000 tons (Usiminas Ipatinga) CLC 500,000 tons (Usiminas Ipatinga) Galvanizing Line 550,000 tons (Unigal) Ongoing Projects 4Q10 1Q12 3Q10 4Q11 2Q11 Energy self sufficiency Reach total capacity of 500 MW Mining Production Reach total capacity of 29 million tons

  14. Results Accounted by Business Unit Income Statement per Business Units - Non Audited (R$ million) Note: All transactions among the business units are made at market price. MRS results are accounted through equity on Equity Income.

  15. Steel Ipatinga Cubatão 15

  16. Flat Steel Production Usiminas has a full range of flat steel products Installed Nominal Capacity : 9.5 million tons / year Galvanized Slab Caster Slabs Heavy Plates Hot Coils Cold Coils EG HDG 5,000,000t 1,000,000t 3,550,000t 2,500,000t 360,000t 1,050,000t Ipatinga Plant 4,500,000t 1,000,000t 2,100,000t 1,200,000t - - Cubatão Plant Nominal Capacity 9,500,000t 2,000,000t 5,650,000t 3,700,000t 360,000t 1,050,000t Optmized Rolling Capacity - 1,900,000t 2,000,000t 1,950,000t 350,000t 1,020,000t 16

  17. Domestic Market Usiminas is focused on the domestic market with a product range tosupply different sectors Sales – thousand tons SegmentsBreakdownof Sales – 1Q12

  18. EBITDA / ton SteelBusiness Unit US$* R$* *Iron Ore at Market price

  19. Mining and Logistics Belo Horizonte Itabira IPATINGA Vitória ITAÚNA TUBARÃO Port São Paulo ITAGUAÍ Port CUBATÃO Port 19

  20. Logistics MODAL Mineração Usiminas 40 Km TCS / TSA 60 Km IPATINGA Mill EFVM Trammel CUBATÃO Plant / Port SepetibaPort Itaguaí Port (Ingá) Tubarão Port Exports Exports Exports ExistingRoutes New Routes 20

  21. 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 Mining and Logistics Current status Production – MM ton: • 1Q12: production of 1.9 million tons • MRS: 20% of voting shares and part of the Control Group • Land in Itaguaí-RJ, acquired in 2008 21

  22. MiningandLogistics Strategicpartnership • AcquisitionbySumitomoCorporationof 30% of Mineração Usiminas S.A., throughthesubscriptionofnewshares, up to the total amountof US$ 1.9 billion. US$ 6.4 billion MineraçãoUsiminas S.A Estimated Market Value 22

  23. Expansion Plan Mining • Capex until 2015 is estimated at R$4.5 billion including new processing lines/plants, industrial facilities projects, equipment, loading terminals, etc. • Lifetime until 2045 Iron Ore Production Capacity – million tons by the end of the year Lump

  24. Agreements Mining • MMX Port and Joint Mining Agreements • MBL JointMiningAgreement • New mine acquired from MineraçãoOuro Negro (former litigation area) • Conclusion of the negotiation with J. Mendes • Right of way agreement with Ferrous Lump

  25. Mineração Usiminas Serra Azul Igarapé São Joaquim De Bicas Minerita MUSA East MMX MUSA Pau de Vinho MUSA Central MUSA West Ferrous Emicon Comisa Ferrous (Santanense) Arcelor Mittal MBL Itatiaiuçu Mineração Usiminas miningoperation is highlighted in yellow.

  26. Itaguaí Port 26

  27. Soluções Usiminas SteelProcessing Recife Camaçari Betim Santa Luzia Serra Campo Limpo Paulista Taubaté Guarulhos São Paulo Cachoeirinha Porto Alegre

  28. Soluções Usiminas Steel Processing • 11 industrial units in MG, SP, RS, ES and PE. Processing capacity of 2 million tons/year. • 1Q12 Net Revenues of R$239 million • Leadership: • Is the leader in the steel distribution sector since 2010, according to INDA.

  29. Steel Processing Automotiva Usiminas 1.500 km 1.000 km 500 km Pouso Alegre Unit Clients

  30. Automotiva Usiminas Steel Processing • Pouso Alegre – MG • Close to major auto makers. • Full service company. • 1Q12 Net Revenues of R$58 million • Major Clients: • Ford, Mercedes Benz, Fiat, Volkswagen, Volvo, General Motors, InternationalTrucks, Honda Toyota, PSA Peugeot Citroën, Scania. 30

  31. Capital Goods 31

  32. Usiminas Mecânica Capital Goods • Ipatinga – MG • It is one of the largest capital goods’ company in the country. • 1Q12 Net Revenues of R$251 million • Market Sectors: • Industrial Assembly • Structures / Metal Bridges and Blanks • Industrial Equipment • Industrial Erection • Foundry and Railcars • Highlights: • Electrical-mechanical Assembly Services for Mineração Usiminas andSitrel (Votorantim). • Supply of the steel beams for the lane change of the urban transportation compositions - São Paulo Expresso Tiradentes Project. 32

  33. Usiminas Mecânica Capital Goods – some of its projects Ship Blocks Plant Design Ship Block 3rd Bridge in Brasília

  34. Agenda Market Overview Usiminas and its Business Units Financial Highlights Clique para editar o texto mestre 34

  35. 4Q11 Consolidated Results Highlights* EBITDA – R$ Million Net Income – R$ Million Sales – thousand tons (steelproducts) Net Revenues – R$ Million 1Q12

  36. EBITDA / EBITDA Margin *IFRS

  37. Debt Profile Debt - R$ million Duration: R$: 39 months US$: 43 months

  38. Leverage – Consolidated Basis Net Debt / EBITDA * * For the purpose of covenant calculation, this ratio was in the range of 2.94 times and 3.10 times, depending on the criteria used by the lenders, even though there is no measurement in the 1Q12.

  39. Balance Sheet Structure 1Q12 Capital Employed FundedBy Net Fixed Assets Net Debt Net Working Capital Shareholders Equity Total: 22,958 Million

  40. 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 leonardo.rosa@usiminas.com Phone: 55-31-3499.8056 Diogo Dias Gonçalves diogo.goncalves@usiminas.com Phone: 55-31-3499.8710 Luciana Valadares dos Santos luciana.santos@usiminas.com Phone: 55-31-3499.8619 Mariana Paes Campolina mariana.paes@usiminas.com Phone: 55-31-3499.8617 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 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.

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