Apresentação Usiminas

2T11 - APIMEC

Usiminas Presentation

4Q11

Information Classification: Public

Agenda

2

Clique para

editar o texto

mestre

Usiminas and its

Business Units

Financial

Highlights

Market

Overview

World Production - 2011Total 1,490 million tons

3Source: World Steel * 2011 data not available yet

695.5

107.686.2 72.2 68.7 68.5

44.3 35.3 35.2 34.1

China Japan USA India Russia South

Korea

Germany Ukraine Brazil Turkey

Production per Company – 2010*

78

61 68

76 83

61 57 72

35 28 29

15

21 14

12 9

17 21

18

26 41 39

7 18 18 13 9

22 22 10

39 31 32

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Steel Iron Ore Coal

Value Transfer on the Steel Chain

Profit distribution on the steel production chain – %

4Source: Mckinsey

Brazilian MarketFlat Steel

5Source: IABR / INDA

Inventories in the Distribution Network Flat Steel Imports – thousand tons

Production – million tons Apparent Consumption – million tons

3.5 3.7 3.84.1 4.0

3.7 3.8 3.73.3 3.2

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

2.72.9

3.43.9

3.33.1 3.1 3.3 3.2 3.0

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

315 283

667

790 823 865

416 415

570500

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

775 771 7841,039

1,244 1,238 1,152 1,233 1,110 1,009

2.4 2.6 2.4

3.2

3.9 4.1

3.23.6

3.0 2.9

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Thousand tons Monthly basis

Turn over on February - 2.8 months Flat Steel Imports on January – 199,000 tons

Comparison on integrated mills

Integrated mills CAPEX - US$/ton of crude steel

6Source: McKinsey

Real appreciation

7Source: Banco Central

Almost 25% appreciationwhen compared with 2009

Domestic Market

Brazilian investments during the period of 2011/2014: R$1.6 trillion (63% growth –

2006/2009)

Industry: R$614 billion

Infrastructure: R$380 billion

Housing and sport events: R$607 billion

Benefit from the Brazilian positive outlook

8

MEDIUM AND LONG TERM PROJECTS

2009-2015

~ US$ 224 Bi

2011-2016

~ R$ 12 Bi

2010-2015

~ R$ 103 Bi

Source: BNDES

2011-2014

~ R$ 955 Bi

2011-2014

~ R$ 153 Bi

4.5 milliontons ofsteel

2.7 long

1.8 flat

1.5 milliontons ofsteel

0.9 long

0.6 flat

Market

Overview

Usiminas and its

Business Units

Financial

Highlights

9

Agenda

Time lineUsiminas delivers what it promises

Foundation

of Usiminas

Operation

Start Up

Privatization

Usiminas:1991

Cosipa: 1993

Listing on

Latibex

Aquisition of

J. Mendes

iron ore

mines

Aquisition of

Zamprogna

Soluções

Usiminas, con-

solidation of

the companies

Rio

Negro, Dufer, F

asal and

Zamprogna and

industrial units

Usial and

Usicort

Single CNPJ:

Cosipa is

incorporated

by Usiminas

Creation of MineraçãoUsiminas

Port AgreementMineração

Usiminas and MMX

New Coke Plant: the

first step to Coke self-sufficiency

Optimization Plan of the Plants and

Sincron (CLC)

Selling of

Ternium shares

ADR II approval

Joint Mining

and

Cooperation

Agreement

with MMX, MBL

and Ferrous

Negociation

with J. Mendes

concluded

Acquisition of

Litigation Area

Entrance ofTechint Group in Usiminas’ ControlGroup

1956

1991

2005

2008

2009

2010

2011

2012Self-sufficiency

Iron Ore and

Energy

2015

10

Strategically Located

11

Mining

Steel

Steel processing

Capital Goods

Everyday Steel Application

12

Auto Industries

Cold Rolled and

Galvanized (EG and HDG)

Ship-Building

Heavy Plates

Pipelines

Heavy Plates and Hot

Rolled

Pressure Vessels

Heavy Plates

Agricultural

Machines

Heavy Plates and Hot

Rolled

Civil Construction

Heavy Plates, Cold and Hot

Rolled and Galvanized (EG

and HDG)

Autoparts

Hot Rolled

Household

Appliances

Cold Rolled and

Galvanized (EG and

HDG)

Shareholder Composition

13

Voting Capital – ON*

Control Group:

63.86% of Voting

Capital

Total Capital 1,013,786,190

Nippon Group29.45%

Ternium / Tenaris Group

27.66%

Usiminas Pension Fund

6.75%

Free Float25.70%

Previ10.44%

49.84% 50.16%

PN 508,525,506ON 505,260,684

ON PN

*Highlighted only shareholders represented on the Board of Directors.

Complete solution of services and value added

products through its Business Units

14

Mining

Steel

Steel Processing Capital Goods

UPST

REA

MD

OW

NST

REA

M

* Controled by Usiminas ** Results accounted through equity income

Ipatinga

Automotiva Usiminas *

Metform and Codeme

stake **

Cubatão

Unigal Usiminas *Mineração Usiminas *

Soluções Usiminas * Usiminas Mecânica *

Results Accounted by Business Unit

15

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.

R$ million

4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11 4Q11 3Q11

Net Revenue 241 253 2,426 2,511 519 529 368 369 (739) (664) 2,815 2,998

Domestic Market 214 218 2,141 2,206 508 521 368 368 (728) (663) 2,502 2,650

Export Market 27 35 285 305 11 8 0 1 (11) (1) 313 348

COGS (78) (70) (2,439) (2,479) (494) (490) (311) (320) 735 709 (2,587) (2,650)

Gross Profit 163 184 (14) 31 25 38 58 49 (4) 45 227 348

Operating Income (Expenses) (50) (36) (81) (32) (62) (25) (24) (24) 1 1 (216) (116)

EBIT 113 148 (95) (1) (38) 13 34 25 (3) 46 11 232

EBITDA 129 156 74 83 (22) 28 41 32 (4) 45 218 343

EBITDA Margin 54% 61% 3% 3% -4% 5% 11% 9% - - 8% 11%

Capex 170 116 443 533 17 18 16 21 0 0 646 688

Mining SteelSteel

Processing

Capital

GoodsAdjustment Consolidated

Results Accounted by Business Unit

16

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.

R$ million

2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

Net Revenue 974 960 10,421 11,496 2,149 2,433 1,419 1,447 (3,061) (3,374) 11,902 12,962

Domestic Market 822 883 9,047 9,686 2,107 2,379 1,418 1,447 (3,049) (3,374) 10,345 11,022

Export Market 152 77 1,374 1,810 42 54 1 0 (12) 0 1,557 1,941

COGS (270) (288) (10,231) (10,048) (1,977) (2,190) (1,235) (1,260) 3,105 3,354 (10,608) (10,432)

Gross Profit 704 672 190 1,448 172 243 184 187 44 (20) 1,294 2,531

Operating Income (Expenses) (138) (89) (244) (230) (192) (203) (99) (107) 6 0 (668) (628)

EBIT 566 583 (54) 1,219 (21) 40 85 81 50 (20) 626 1,902

EBITDA 604 638 463 1,819 41 102 112 111 44 (20) 1,264 2,650

EBITDA Margin 62% 67% 4% 16% 2% 4% 8% 8% - - 11% 20%

Capex 365 41 1,984 3,070 72 52 69 28 0 0 2,490 3,191

Mining SteelSteel

Processing

Capital

GoodsAdjustment Consolidated

Cubatão

Ipatinga

Steel

17

Installed Nominal Capacity : 9.5 million tons / year

Flat Steel ProductionUsiminas has a full range of flat steel products

Slabs Hot Coils Cold CoilsHeavy PlatesSlab Caster EG HDG

1,950,000t

Optmized

Rolling

Capacity

2,000,000t 1,900,000t 1,020,000t350,000t

Cubatão Plant -1,200,000t -2,100,000t 1,000,000t 4,500,000t

3,700,000t Nominal

Capacity5,650,000t 2,000,000t 9,500,000t 1,050,000t360,000t

-

Ipatinga Plant 1,050,000t360,000t 2,500,000t 3,550,000t1,000,000t5,000,000t

18

Galvanized

Domestic MarketUsiminas is focused on the domestic market with a product range to

supply different sectors

19

Sales – thousand tons

Segments Breakdown of

Sales – 4Q11

68%77%

85% 83% 85%

32%23%

15% 17% 15%

4Q10 1Q11 2Q11 3Q11 4Q11

Domestic Market Export Market

1,4061,579 1,588 1,583 1,340

Investments

Total amount for 2011R$ 2.5 billion

Strategic focus on enhancing competitiveness of current operations

Ongoing Projects

Coke Plant 3

750,000 tons

(Usiminas

Ipatinga)

CLC

500,000 tons

(Usiminas

Ipatinga)

Galvanizing

Line

550,000 tons

(Unigal)

Hot Strip Mill

2.3 million tons

(Usiminas

Cubatão)

Mining

Production

Reach total

capacity of

29 million

tons

Up to 2015

In operation

3Q10 4Q10 2Q11

Foundry

24,000 tons

(Usiminas

Mecânica)

4Q11 1Q12 Energy self

sufficiency

Reach total

capacity of

500 MW

20

Hot Run

Mining and Logistics

Belo Horizonte Sabará

Itabira

Ipatinga

MarianaJeceaba

Três Rios

Barra do Piraí

B. Mansa

São

Paulo

Santos

Itaúna

Itaguaí

Vitória

Cubatão

TUBARÃO

Port

ITAGUAÍ Port

CUBATÃO

Port

21

Logistics

22

Tubarão PortItaguaí Port

(Ingá)

MODAL

Mineração

Usiminas

EFVM

Existing Routes

CUBATÃO Plant / Port

New Routes

TCS / TSA

Trammel

Sepetiba Port

ExportsExports Exports

40 Km

60 Km

IPATINGA Mill

Mining and LogisticsCurrent status

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

23

4Q11: production of 1.7 million tons

MRS: 20% of voting shares and part of the

Control Group

Land in Itaguaí-RJ, acquired in 2008

Production – MM ton:

23

5.56.8 6.3

2009 2010 2011

24

Mining and LogisticsStrategic partnership

US$ 6.4 billionMineração Usiminas S.A Estimated Market Value

Acquisition by Sumitomo Corporation of

30% of Mineração Usiminas S.A., through

the subscription of new shares, up to the

total amount of US$ 1.9 billion.

24

Expansion PlanMining

25

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

AgreementsMining

26

Agreements signed to allow the expansion plan:

MMX Port and Joint Mining Agreements

MBL Joint Mining Agreement

New mine acquired from Mineração Ouro Negro (former litigation

area)

Conclusion of the negotiation with J. Mendes

Right of way agreement with Ferrous

Mineração Usiminas

27

MBL

Arcelor Mittal

Ferrous(Santanense)

Comisa Emicon

MMX

Ferrous

MUSAPau de Vinho

MUSAEast

Minerita

MUSACentral

MUSAWest

Itatiaiuçu

Igarapé São JoaquimDe Bicas

Serra Azul

Itaguaí Port

28

29

Camaçari

Cachoeirinha

Porto Alegre

Campo Limpo Paulista

São PauloGuarulhos

Taubaté

Recife

Serra

Betim

Santa Luzia

Steel Processing

Soluções Usiminas

30

Soluções Usiminas

11 industrial units in MG, SP, RS, ES and PE.

Processing capacity of 2 million tons/year.

4Q11 Gross Revenues of R$557 million

Leadership:

– Is the leader in the steel distribution sector

since 2010, according to INDA.

Steel Processing

Steel Processing

Automotiva Usiminas

31

Clients 500

km

1.000

km

1.500

km

Pouso Alegre Unit

32

Automotiva Usiminas

Pouso Alegre – MG

– Close to major auto makers. Full service

company.

4Q11 Gross Revenues of R$118 million

Major Clients:

– Ford, Mercedes Benz, Fiat, Volkswagen,

Volvo, General Motors, International Trucks,

Honda Toyota, PSA Peugeot Citroën, Scania.

Steel Processing

Capital Goods

33

Usiminas Mecânica

Ipatinga – MG

– It is one of the largest capital goods’ company in the

country.

4Q11 Gross Revenues of R$427 million

Market Sectors:

– Industrial Assembly

– Structures / Metal Bridges and Blanks

– Industrial Equipment

– Industrial Erection

– Foundry and Railcars

Highlights:

– Supply of steel structures for the Maracanã Stadium’s

grandstand and pipe racks of the petrochemical complex

of Rio de Janeiro – COMPERJ.

– Usiminas Mecânica made industrial maintenance services

at the Ipatinga and Cubatão plants.

– Signing of an agreement for the building of a railway car

factory at Congonhas.

Capital Goods

34

35

Usiminas Mecânica

Capital Goods – some of its projects

Ship Block

3rd Bridge in Brasília

Ship Blocks Plant Design

Market

Overview

Usiminas and its

Business Units

Financial

Highlights

36

Agenda

4Q11 Consolidated ResultsHighlights*

37

EBITDA – R$ Million Net Income – R$ Million

Sales – thousand tons (steel products) Net Revenues – R$ Million

1,406 1,340

6,5655,916

3Q11 4Q11 2010 2011

2,998 2,815

12,96211,902

3Q11 4Q11 2010 2011

343 218

2,650

1,264

3Q11 4Q11 2010 2011

154 77

1,584

404

3Q11 4Q11 2010 2011

2011 Results – Consolidated Basis

EBITDA / EBITDA Margin

38*IFRS

9541,344

1,547

2,429

3,072

5,624 5,525

4,368

5,003

6,008

1,485

2,650

1,264

40%

34%32%

37%35%

46%

42%

35% 36%38%

14%

20%

11%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EBTIDA (R$) EBITDA Margin (%)(R$ million)

Results 4Q11 – Steel Business Unit

39*Iron Ore at Market price **IFRS

EBITDA / ton – US$*

91126

98 101 119

227

291236

299

420

111158

47

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009** 2010** 2011**

EBITDA / ton - R$*

166 231 230

294 367

664 709

513 581

771

221 277

78

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009** 2010** 2011**

Debt Profile

40

Debt - R$ million

2,794

679 802 923 902733

331 29834 168

2,397

522

817 584451 672

248

950

21

Cash 2012 2013 2014 2015 2016 2017 2018 2019 2020 on

Foreign Currency Local Currency

1,201

5,191

1,6191,507 1,353

1,405

579

1,248

169

36

Total Debt: R$8,943 million

Duration: R$: 48 months

US$: 55 months

Strong cash position and comfortble debt profile (R$ Million)

0.8

0.1

-0.1 -0.1

-1.0

0.7 0.6

1.6

3.2

4.3

3.8

3.12.9

3.3

4.1

4.9

3.6

2.3

2.8

3.4

3.9

0.2 0.0 0.0 0.0 -0.20.1 0.1 0.3 0.5

0.8 1.01.3

1.9 1.7 1.5 1.6 1.41.0

1.6

2.53.1

4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q08 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Net Debt (R$ bi) Net Debt/EBITDA (x)

Leverage – Consolidated Basis

41

Net Debt / EBITDA

Balance Sheet Structure4Q11

42

Capital Employed Funded By

Total: 22,941 Million

Net Working Capital

Net Fixed Assets

Shareholders Equity

Net Debt

Cristina Morgan C. DrumondHead of IR

cristina.drumond@usiminas.comPhone: 55-31-3499.8772

Fax: 55-31-3499.9357

www.usiminas.com/ri

ADR

Level I

Luciana Valadares dos Santosluciana.santos@usiminas.com

Phone: 55-31-3499.8619

Leonardo Karam Rosaleonardo.rosa@usiminas.com

Phone: 55-31-3499.8056

Diogo Dias Gonçalvesdiogo.goncalves@usiminas.com

Phone: 55-31-3499.8710

Mariana Paes Campolinamariana.paes@usiminas.com

Phone: 55-31-3499.8617

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.