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Public Disclosure - Belo Horizonte, July 28th, 2016 Usinas Siderrgicas de Minas Gerais S.A.

- Usiminas (BM&FBOVESPA:
USIM3, USIM5 e USIM6; OTC: USDMY and USNZY; LATIBEX: XUSIO and XUSI) today releases its second quarter (2Q16)
results. Operational and financial information of the Company, except where otherwise stated, are presented based on
consolidated figures, in Brazilian Real, according to International Financial Reporting Standards (IFRS). All comparisons made
in this release take into consideration the first quarter of 2016 (1Q16), unless stated otherwise.

Release of the 2Q16 Results


The main operating and financial indicators were:

Steel sales volume of 0.9 million tons;


Iron ore sales volume of 0.8 million tons;
Consolidated adjusted EBITDA of R$67.8 million and Adjusted EBITDA margin of 3.3%;
Working capital on 06/30/16 of R$2.1 billion;
Investments of R$50.4 million;
Cash position on 06/30/16 of R$2.7 billion.

Main Highlights
R$ million - Consolidated

1H16

1H15

1,275
1,206
2,677
(2,571)
105
(781)
(755)
-28%

Chg.
2Q16/1Q16
0%
-19%
-1%
-3%
-19%
22%
+ 1 p.p.

1,802
1,761
4,069
(4,107)
(38)
(275)
110
3%

2,531
2,345
5,357
(5,008)
349
(1,016)
(401)
-7%

Var.
1H16/1H15
-29%
-25%
-24%
-18%
-73%
+ 10 p.p.

227
8%
226
2,889

31%
-28%
56%

119
3%
121
2,713

607
11%
458
2,889

-80%
- 8 p.p.
-74%
-6%

2Q16

1Q16

2Q15

Steel Sales Volume (000 t)


Iron Ore Sales Volume (000 t)
Net Revenue
COGS
Gross Profit (Loss)
Net Income (Loss)
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)

899
787
2,028
(2,025)
3
(123)
61
3%

903
974
2,041
(2,081)
(41)
(151)
50
2%

Adjusted EBITDA
Adjusted EBITDA Margin
Investments (CAPEX)
Cash Position

68
3%
50
2,713

52
3%
70
1,736

Market Data 06/30/16

BM&FBOVESPA:

USIM5

R$1.97/share

USIM3

R$5.08/share

EUA/OTC:

USNZY

US$0.63/ADR

LATIBEX:

XUSI

0.58/share

XUSIO

1.20/share

Index

Consolidated Results
Performance of the Business Units:
- Mining
- Steel
- Steel processing
- Capital goods
Subsequent Events
Capital markets
Balance sheet, Income and Cash Flow Statements

Economic Outlook
2Q16 Results

The global outlook remained stable and had given favorable signals to the emerging markets
even in a high risk scenario with uncertainties caused by the exit of the United Kingdom from
the European Union. In the United States, the economy continued to recover, pointing to a
GDP expansion of 3% on an annual basis. In China, the growth has been stabilizing and the
economic volatility tends to reduce.
The environment improvement has driven global financial conditions and commodities prices,
and there has been a recovery in the inflows to the emerging economies, favoring the Latin
American market. This has also allowed greater exchange rate stability, having a better
perspective of the inflation outlook in the economies in this region. For the two main
economies of the region, Brazil and Argentina, the weight of domestic issues has been
material, maintaining them in recession, in spite of already existing stabilization in economic
activity, confirming expectations of a recovery from 2017 on.
In Brazil, in spite of 0.3% retraction in GDP in the 1Q16 and also an expected decline in the
2Q16, the latest economic activity data have been better than expected. Nevertheless, the
labor market continued weak, with the month of May of 2016 recording the 14th consecutive
month of employment reduction. Inflation, measured by the IPCA, although pressured by the
food price increases, should fall in the coming months and end up the year at 7%, according to
the Focus Report of the Brazilian Central Bank of 07/01/16.
Brazilian industry has showing signs of improvement, with a highlight for higher confidence
rate and signs that inventory levels have been adjusted, favoring production recovery in the
second half of 2016. Industrial production indicators have shown stability in comparison with
the last few months. Accumulated industrial production in 2016 shows a decline of 10% over
the same period of the previous year. Steel intensive industry sectors had the greatest down
falls, with capital goods production declining 23% and durable goods, 25%.

2Q16 Results

Economic and Financial Performance


Comments on Consolidated Results
Net Revenue
Net revenue in the 2Q16 was R$2.0 billion, stable in relation to the 1Q16. Domestic market
participation increased to 89% of total net revenue in the 2Q16, against 85% in the 1Q16.

Net Revenue Breakdown


Domestic Market

2Q16

1Q16

2Q15

1H16

1H15

89%

85%

76%

87%

82%

Exports

11%

15%

24%

13%

18%

Total

100%

100%

100%

100%

100%

Cost of Goods Sold (COGS)


COGS in the 2Q16 totaled R$2.0 billion, against R$2.1 billion in the 1Q16, representing a 2.7%
decrease. For detailed information, see the Business Unit sections of this document. Gross
margin was a positive 0.1% in the 2Q16, reverting a negative gross margin of 2.0% in the
1Q16, an improvement of 2.1 perceptual points, demonstrated below:

Gross Margin
2Q16

1Q16

2Q15

1H16

1H15

0.1%

-2.0%

3.9%

-0.9%

6.5%

Operating Expense and Income


In the 2Q16, selling expenses were R$55.7 million, against R$79.7 million in the 1Q16, a
30.0% decrease, mainly due to lower provisions for doubtful accounts, lower distribution costs
in function of a decrease in the steel and iron ore exports and lower labor cost and third party
services.
General and administrative expenses totaled R$86.2 million in the 2Q16, against R$89.7
million in the 1Q16, a 4.0% decrease, mainly in function of a reduction in 4.2% in direct labor
expenses and in 20.9% in general expenses.
In the 2Q16, other operating expenses totaled R$154.1 million, against R$110.1 million in the
1Q16, due to:

lower result of asset sale and write-off of assets, which totaled R$0.9 million in the
2Q16, against R$72.0 million in the 1Q16;

higher non-absorbed costs with idle production in the amount of R$127.2 million,
which R$119.0 million were related to depreciation, against R$118.8 million in the
1Q16, which R$80.3 million were related to depreciation;

higher negative result with the sale of surplus electric energy, which was a negative
R$44.5 million in the 2Q16, against a negative R$40.8 million in the 1Q16.

On the other hand, there were fiscal credits of R$53.2 million in the 2Q16, against zero in the
1Q16 and there was no impairment of assets in the 2Q16, against an impairment of assets of
R$8.0 million in the 1Q16.
Thus, net operating expenses totaled R$296.0 million in the 2Q16, against R$279.6 million in
the 1Q16. In this manner, the Companys operating margin presented the following
performance:

2Q16 Results

EBIT Margin
2Q16

1Q16

2Q15

1H16

1H15

-14.4%

-15.7%

-40.9%

-15.0%

-19.8%

Adjusted EBITDA
Adjusted EBITDA is calculated from net income (loss), reversing profit (loss) from discontinued
operations, income tax and social contribution, financial result, depreciation, amortization and
depletion, equity in the results of Associate, Joint Subsidiary and Subsidiary Companies and
not consider the impairment of assets. The adjusted EBITDA includes the proportional
participation of 70% of Unigal and others joint subsidiary companies .
EBITDA Breakdown
Consolidated (R$ thousand)

2Q16

Net Income (Loss)

1Q16

2Q15

1H16

1H15

(123,357)

(151,377)

(780,798)

(274,734)

(1,016,178)

(18,675)

(15,360)

(319,383)

(34,035)

(397,454)

(114,621)

(101,553)

317,273

318,086

60,620

49,796

Equity in the Results of Associate and Subsidiary


Companies

(36,655)

(51,845)

Joint Subsidiary Companies proportional EBITDA

44,212

Income Tax / Social Contribution


Financial Result
Depreciation, Amortization
EBITDA - Instruction CVM - 527

Impairment of Assets

67,784

(216,174)

304,342

635,359

(755,210)

110,416

401,529
610,772
(401,331)

(33,991)

(88,500)

45,597

31,361

89,809

68,987

8,030

985,046

7,637

985,046

51,578

227,206

119,362

606,740

(393)

Adjusted EBITDA

40,629

(45,962)

Adjusted EBITDA totaled R$$67.8 million in the 2Q16, against R$51.6 million in the 1Q16, an
increase of 31.4%, due to the better performance in all the Business Units of the Company,
Mining, Steel, Steel Transformation and Capital Goods. In the 2Q16, Adjusted EBITDA margin
was 3.3%, against 2.5% in the 1Q16. The Adjusted EBITDA margins are shown below:

Adjusted EBITDA Margin


2Q16

4Q15

2Q15

1H16

1H15

3.3%

2.5%

8.5%

2.9%

11.3%

Financial Results
Net financial results were R$114.6 million in the 2Q16, against R$101.6 million in the 1Q16, a
12.9% increase, mainly due to higher financial income as a result of fiscal credits of R$50.8
million and the appreciation of 9.8% of the Real against the Dollar in the 2Q16, against an
appreciation of 8.9% in the 1Q16.
Financial Result - Consolidated
R$ thousand

2Q16

Net Currency Exchange Variation


Swap Transactions Market Cap.
Income and Inflationary Variation over Financial Applications
Other Financial Income
Interest and Inflationary Variation over Financing and Taxes
Installments
Other Financial Expenses

Payable in

1Q16

2Q15

Change
2Q16/1Q16

1H16

1H15

328,090

346,957

85,830

-5%

675,047

(304,985)

(165,904)

(129,051)

(35,265)

29%

(294,955)

58,718

115,983

56,180

46,374

106%

172,163

89,020

93%

63,393

50,032

47,350

27%

113,425

94,919

19%

(166,918)

(176,913)

(140,191)

-6%

(343,831)

(256,663)

34%

(60,023)

(45,652)

(44,727)

31%

(105,675)

(82,538)

FINANCIAL RESULT

114,621

101,553

(40,629)

13%

216,174

(401,529)

+ Appreciation / - Depreciation of Exchange Rate (R$/US$)

9.8%

8.9%

3,3%

2Q16 Results

Change
1H16/1H15

-47.0%

-13.4%

-321%

28%
-154%
-

Equity in the Results of Associate and Subsidiary Companies


In the 2Q16, equity in the results of associate and subsidiary companies was R$36.7 million,
against R$51.8 million in the 1Q16, mainly due to lower contribution of Codeme Construes
em Ao and MRS Logstica in the period. MRS revenue was positively impacted in the 1Q16 by
the agreement signed with Minerao Usiminas regarding the renegotiation of domestic freight
with take or pay conditions, improving its results of that period.

Net Profit (Loss)


In the 2Q16, the Company accounted a net loss of R$123.4 million, 18.5% lower compared with
that of the 1Q16, which was R$151.4 million.

Working Capital
In the 2Q16, the Company presented working capital of R$2.1 billion, against R$2.2 billion in the
1Q16, mainly due to the reduction in inventories in Reais of raw materials and steel products, to
the reduction in the steel volumes in 9.3% and to a decrease in accounts receivable,
compensated by a decrease in other current liabilities, in function of a reduction in the
outstanding balance of forfaiting transactions.

Investments (CAPEX)
In the 2Q16, CAPEX totaled R$50.4 million, 28.2% lower compared with the 1Q16, which was
R$70.1 million, reduced at a minimum operational level according to the weak demand,
preserving the Companys operations. The main investments made were with sustaining
CAPEX, with 83% in the Steel Unit, 12% in the Mining, 4% in the Steel Transformation and 1%
in the Capital Goods Unit.

Capital Increase
For the purpose of reinforcing the Companys cash position, Usiminas issued new shares,
voting shares and preferred shares, totaling R$1,050,294,935.04.
The Board of Directors approved the Capital Increase on 06/03/16 with the subscription of
39,292,918 preferred class A shares, identical to shares of the same type and already
existing class, at the issuance price of R$1.28 per share, totaling R$50,294,935.04.
On 07/19/16, the Extraordinary General Meeting homologated the Capital Increase of
200,000,000 voting shares at the issuance price of R$5.00 per share, totaling
R$1,000,000,000.00.
Thus, the Companys equity capital was increased to R$13,200,294,935.04 divided into
1,253,079,108 shares, being 705,260,684 voting shares, 547,740,661 preferred class A shares
and 77,763 preferred class B shares, all subscribed, without nominal value.
In this manner, the Control Group participation in voting shares is:
Free Float: 54.25%

Others
23.19%

Ternium / Tenaris
Group
19.76%

2Q16 Results

Control Group: 45.75%

Nippon Group
21.10%

Ternium/ Tenaris
Group
19.81%

Usiminas Pension
Fund
4.84%
Nippon Group
11.31%

Indebtedness
In June 2016, the Company concluded another important step in its debt restructuring, signing
with Brazilian lenders (Banco do Brasil, Bradesco, Ita Unibanco and BNDES) and with
debenture holders a biding Term Sheet with specific for the final documents, including total
tenor of 10 years, grace period of three years, interest rates, obligations, covenants, among
others. The negotiation with the Japanese banks is moving on well and is forecast to be
concluded until the Standstill final deadline, 09/12/16.
Subsequently to the quarter, the amount held by court related to CSN was released, which
summed to the initial amount of the capital increase transactions of R$ 871.5 million, totaling
R$1,050,294,935.04 of capital increase (voting shares and preferred shares).
On 06/30/16, consolidated gross debt was R$7.2 billion, against R$7.4 billion on 03/31/16, a
2.6% decrease. Debt by maturity composition was 42% short term and 58% long term. Since
the Standstill agreement was signed with creditors, there was no verification of financial
covenants on 06/30/16.
The chart below demonstrates the consolidated debt indexes:
Total Indebtedness by Index - Consolidated
30-Jun-16

R$ thousand

Short Term

Local Currency
TJLP
CDI
Others
Foreign Currency (*)
Gross Debt

Long Term

TOTAL

31-Mar-16
TOTAL

58%

Change
Jun16/Mar16

30-Jun-15
TOTAL

Change
Jun16/Jun15

2,166,970

2,034,749

4,201,719

4,096,296

3%

4,277,111

-2%

174,316

206,002

380,318

380,136

0%

507,697

-25%

1,902,113

1,733,783

3,635,896

3,583,170

1%

3,631,126

90,541

94,964

185,505

132,990

39%

138,288

34%

908,937

2,127,008

3,035,945

42%

3,331,822

-9%

3,327,611

-9%

3,075,907

4,161,757

7,237,664

100%

7,428,118

-3%

7,604,722

-5%

0%

Cash and Cash Equivalents

2,712,903

1,735,627

56%

2,889,080

-6%

Net Debt

4,524,761

5,692,491

-21%

4,715,642

-4%

(*) 99% of total foreign currency is US dollars denominated

The graph below demonstrates the cash position and debt profile (principal only) in millions of
Reais on 06/30/16, before conclusion of the debt renegotiation forecast to 09/12/16:

2,713

Duration: R$: 29 months


US$: 27 months

225

1,618

1,710

1,871

523
2,488

590

1,334

1,003
68

1,029

1,187
935

810

491

538

Cash

2016

2017

2018
Local Currency

2Q16 Results

2019

318

15
0
14

13
13-

33
33

2020

2021

2022

2023 on

Foreign Currency

Performance of the Business Units


Intercompany transactions are on arms-length basis (market prices and conditions) and sales
between Business Units are carried out as sales between independent parties.
Usiminas - Unidades de Negcios

Minerao

Transformao do
Ao

Siderurgia

Minerao Usiminas

Usina de Ipatinga
Usina de Cubato
Unigal

Bens de Capital

Solues Usiminas

Usiminas Mecnica

Income Statement per Business Units - Non Audited - Quarterly


R$ million

Mining
2Q16

Net Revenue

Steel
Processing

Steel*

1Q16

2Q16

1Q16

2Q16

Capital Goods

1Q16

2Q16

1Q16

Adjustment
2Q16

Consolidated

1Q16

2Q16

1Q16

101

106

1,778

1,739

432

431

155

170

(438)

(405)

2,028

2,041

Domestic Market

77

56

1,570

1,476

432

431

155

170

(438)

(405)

1,796

1,728

Exports

25

50

207

263

232

313

(105)

(1,780)

(1,786)

(398)

(410)

(141)

(152)

374

372

(2,025)

(2,081)

(3)

(47)

34

21

14

17

(64)

(33)

COGS

(80)

Gross Profit (Loss)

21

(41)

Operating Income (Expenses)

(39)

(53)

(220)

(188)

(27)

(25)

(10)

(15)

(296)

(280)

EBIT

(18)

(52)

(223)

(235)

(4)

(63)

(31)

(293)

(320)

14

10

(27)

Adjusted EBITDA
Adj.EBITDA Margin

21

(12)

21%

-11%

50

46

3%

3%

3%

1%

6%

5%

6
-

68
3%

52
3%

*Consolidated 70% of Unigal

Income Statement per Business Units - Non Audited


R$ million

Mining
1H16

Net Revenue
Domestic Market
Exports

1H16

1H16

1H15

1H16

1H15

1H16

1H15

1H16

1H15

4,957

863

1,016

325

440

(843)

(1,283)

4,069

5,357

133

227

3,046

3,994

862

1,011

325

440

(843)

(1,283)

3,524

4,390

471

963

546

967

(233)

(3,567)

(4,633)

(808)

(990)

1,227

(4,107)

(5,008)

(6)

(50)

22

(92)

(1,037)

(408)

EBIT

(70)

(1,043)

(458)

Adjusted EBITDA

9
4%

37
16%

96
3%

(293)

(379)

324

55

25

32

61

(286)

(52)

(52)

(26)

(34)

746
(97)

(56)

(38)

(1,407)
(1,058)

(27)

28

(94)

(54)

(613)

543

17

(13)

18

40

(21)

(1)

119

11%

2%

1%

6%

9%

349

(576)

38

*Consolidated 70% of Unigal

2Q16 Results

Consolidated

3,517

Operating Income (Expenses)

Adj.EBITDA Margin

1H15

Adjustment

227

(186)

Gross Profit (Loss)

1H15

Capital Goods

207

74

COGS

Steel
Processing

Steel*

3%

607
11%

I.

MINING

Contrary to all expectations, in the 2Q16, the average price of iron ore in the international market
presented an increase of around 15% in relation to the 1Q16, with the quarterly average price
reaching US$56/t (62%Fe, CFR China). This behavior does not have a clear explanation from a
purely market standpoint and was mainly attributed to speculative movements in futures markets
and to the increase in profitability of the Chinese mills, due to the increase in the steel price in the
country. It is worthwhile mentioning that in the period a peak price of US$71/t was recorded, the
highest amount registered in the last 18 months.
In regards to the outlook for the near future, the general view is that there will be a downfall in
prices, mainly in the 4th quarter of 2016. Recent data show a considerable advance in iron ore
production in Australia, which may result in the addition in of around 55 million tons annualized of
new supply 2016. In parallel, the start up of the second half of Vales S11D project of around 90
million tons, on an annual basis, will add even more pressure on supply side and, consequently, on
prices.

Operational and Sales Performance - Mining


In the 2Q16, production volume totaled 691 thousand tons, stable compared with the 1Q16. Sales
volume accounted for was 787 thousand tons, against 974 thousand tons in the 1Q16, a 19.2%
decrease, mainly due to a reduction in exports.
Production and sales volumes are demonstrated in the chart below:
Iron Ore
Thousand tons

Production
Sales - Third Parties - Domestic Market
Sales - Exports
Sales to Usiminas
Total Sales

2Q16

1Q16

2Q15

Chg.
2Q16/1Q16
-1%

691

701

1,009

17

16

135

177

344

6%
-49%

1H16

Chg.
1H16/1H15

1H15

1,392

2,470

-44%

33

226

-85%

521

593

614

1,071

-3%

1,207

2,119

-43%

787

974

1,206

-19%

1,761

2,345

-25%

Comments on the Business Unit Results - Mining


Net revenue was R$101.3 million in the 2Q16, against R$106.1 million in the 1Q16, 4.5% lower,
due to lower export volume and to the exchange appreciation of the Real against the Dollar, on
average, of 9.1% in the period, which partially compensated by a 34.5% increase on the average
price of PLATTS (62% Fe, CFR China), adjusted for the period of sales price formation of the
Mining Unit.
In the 2Q16, cash cost per ton was R$53.3/t, against R$54.5/t in the 1Q16, mainly due to lower
costs with leasing mining rights. In the 2Q16, Cost of Goods Sold (COGS) was R$80.3 million,
against R$105.4/ton in the 1Q16. COGS/t was R$102.1/ton in the 2Q16, against R$108.3/ton in
the 1Q16, a 6.1% decrease due to lower freight costs and lower inventory adjustments in the
period.
In the 2Q16, net operating expenses totaled R$39.5 million, against R$52.6 million in the 1Q16,
mainly due to lower sales expenses in the period, as well as lower negative result with the sale of
surplus electric energy, which was a negative R$2.6 million in the 2Q16.
Adjusted EBITDA was a positive R$20.8 million in the 2Q16, against a negative R$11.9 million in
the 1Q16. Adjusted EBITDA margin was 20.5%, against a negative 11.3% in the previous quarter.

2Q16 Results

Investments (CAPEX)
In the 2Q16, investments totaled R$5.9 million, against R$3.7 million in the 1Q16, reffering to
sustaining CAPEX.

Stake in MRS Logstica


Minerao Usiminas holds a stake in the MRS Logstica through its subsidiary UPL Usiminas
Participaes e Logstica S.A.
MRS Logstica is a concession that controls, operates and monitors the Brazilian Southeastern
Federal Railroad Network (Malha Sudeste da Rede Ferroviria Federal). The company operates
in the railway transportation segment, connecting the states of Rio de Janeiro, Minas Gerais
and So Paulo, and its core business is transporting, with integrated logistics, cargo in general,
such as iron ore, finished steel products, cement, bauxite, agricultural products, pet coke and
containers.
In the 2Q16, MRS transported 44 million tons, a 10% increase over the volume transported in
the 1Q16, as a result of higher iron ore flow in the period.

II)

STEEL

After four consecutive quarters of decline, Brazilian flat steel consumption returned to grow in
the 2Q16, reaching 2.3 million tons, which represents a growth of 6.3% in relation to the
1Q16. Local plants accounted for 94% of volume and imports, 6%. Although the share of
imports grew 17% in comparison with the 1Q16, they remained at a low level, approximately
138 thousand tons in the quarter, the lowest share since 2007.
Among the segments, a positive highlight to White Goods, with 17% growth, to Automotive,
with 13%, and to Distribution, with 6%.
In terms of product lines, heavy plates consumption fell 18.4% in the 2Q16 against the 1Q16,
in every sector in which it is consumed. On the other hand, other products showed a recovery
of 8.2% jointly.

Production - Ipatinga and Cubato Plants


Crude steel production in the Ipatinga and Cubato plants was 776 thousand tons in the 2Q16,
a 2.3% drop in relation to the 1Q16, as a result of the full effect of temporary production
stoppage of pig iron at the Cubato plant, due to the temporary shutdown of the primary areas at
this plant.
Production (Crude Steel)
Thousand tons
Ipatinga Mill
Cubato Mill
Total

2Q16

1Q16

2Q15

Chg.
2Q16/1Q16

1H16

1H15

Chg.
1H16/1H15

776

777

746

0%

1,553

1,485

5%

-100%

17

1,220

-99%

-2%

1,570

2,705

-42%

17

580

776

794

1,326

Sales
In the 2Q16, total sales volume was 899 thousand tons of steel, stable in relation to the 1Q16.
Domestic market sales totaled 784 thousand tons, 3.4% greater than in the 1Q16, while exports
decreased 20.5%, totaling 115 thousand tons. There was a greater selectivity in exports, made
possible by the decrease in the excess of production in the Cubato plant. There was a

2Q16 Results

substantial improvement in the market mix, with sales volume registering 87% to the domestic
market and 13% for exports.
1,205

1,275

1,179

424

323

427

850

751

2Q15

3Q15

903

882

4Q15

Domestic Market

145

899
115

758

784

1Q16

2Q16

Exports

The main export destinations are shown in the charts below:

2Q16
8% 6%

1H16
Argentina

2%

Germany

27%

USA

9%

5%

10%
4%

26%

Taiwan
7%

Spain
9%

Belgique

9%

In

Mexico

21%
19%

20%

Others

19%

Sales Volume Breakdown


Thousand tons

2Q16

1Q16

Change
2Q16/1Q16

2Q15

1H16

Change
2015/2014

1H15

899

100%

903

100%

1,275

100%

1,802

100%

2,531

100%

-29%

Heavy Plates

109

12%

145

16%

244

19%

-24%

254

14%

531

21%

-52%

Hot Rolled

240

27%

260

29%

392

31%

-8%

500

28%

809

32%

-38%

Cold Rolled

277

31%

239

26%

248

19%

16%

516

29%

561

22%

-8%

Galvanized

251

28%

229

25%

196

15%

10%

481

27%

410

16%

17%

Total Sales

Processed Products
Slabs

0%

0%

0%

0%

20

2%

30

3%

191

15%

-34%

0%

0%

50

3%

210

8%

-76%

783

87%

758

84%

850

67%

3%

1,540

86%

1,956

77%

-21%

Heavy Plates

102

13%

135

15%

217

17%

-24%

237

15%

478

19%

-50%

Hot Coils

219

28%

219

24%

216

17%

0%

439

28%

557

22%

-21%

Cold Coils

236

30%

205

23%

226

18%

15%

441

29%

512

20%

-14%

Galvanized

205

26%

179

20%

165

13%

14%

384

25%

358

14%

7%

0%

0%

0%

0%

0%

20

3%

20

2%

23

2%

1%

40

3%

42

2%

-4%

115

13%

145

16%

424

33%

-21%

261

14%

575

23%

-55%

6%

10

1%

27

2%

-28%

17

7%

53

2%

-68%

Hot Rolled

21

18%

40

4%

175

14%

-49%

61

23%

252

10%

-76%

Cold Rolled

41

35%

34

4%

23

2%

20%

75

29%

49

2%

53%

Galvanized

47

41%

51

6%

31

2%

-7%

97

37%

52

2%

89%

Processed Products

0%

0%

0%

0%

0%

Slabs

0%

10

1%

169

13%

10

4%

169

7%

-94%

Domestic Market

Processed Products
Slabs
Exports
Heavy Plates

2Q16 Results

10

Comments on the Business Unit Results - Steel


In the 2Q16, net revenue in the Steel Unit was R$1.8 billion, 2.2% higher than in the 1Q16,
due to higher domestic market average price, which increased 3.8%, compared with the 1Q16,
which partially compensated the reduction in exports by 20.5%.
In the 2Q16, cash cost per ton of steel was R$1,459/t, stable in relation to the 1Q16, which was
R$1,461/t. Although there was an increase in iron ore costs, there was a reduction in the cost of
coal and coke and of labor and third party services. Additionally, there was an average exchange
appreciation of the Real against the Dollar of 10.1%, which impacted approximately 40% of total
costs, contributing also to the decrease in production costs.
Cost of Goods Sold (COGS) was R$1.8 billion in the 2Q16, stable in relation to the 1Q16. COGS
per ton was R$1,980/t, against 1,978/t in the 1Q16, also stable comparing both periods.
In the 2Q16, selling expenses totaled R$30.8 million, against R$44.5 million in the 1Q16, a
30.8% decrease, mainly due to lower provision for doubtful accounts.
General and administrative expenses totaled R$64.3 million in the 2Q16, stable in relation to
the 1Q16.
Other operating expenses totaled R$125.2 million, against R$79.3 million in the 1Q16, a
57.9% increase, due to:

lower result of asset sale and write-off of assets, which totaled R$0.8 million in the
2Q16, against R$72.0 million in the 1Q16;

higher non-absorbed costs with idle production in the amount of R$106.6 million, which
R$99.1 million were related to depreciation, against R$98.0 million in the 1Q16, which
R$60.4 million were related to depreciation;

higher negative result with the sale of surplus electric energy, which was a negative
R$41.9 million in the 2Q16, against a negative R$36.8 million in the 1Q16.

On the other hand, there were fiscal credits of R$53.2 million in the 2Q16, against zero in the
1Q16, and there was no impairment of assets in the 2Q16, against an impairment of assets of
R$8.0 million in the 1Q16.
Net operating expenses totaled R$220.2 million in the 2Q16, against R$188.2 million in the
1Q16.
Thus, Adjusted EBITDA in the 2Q16 totaled R$49.7 million, against R$45.9 million in the 1Q16, a
8.1% increase. Adjusted EBITDA margin was 2.8% in the 2Q16, against 2.6% in the 1Q16, a 0.2
perceptual points increase.

Investments (CAPEX)
Investments totaled R$41.8 million in the 2Q16, against R$64.3 million in the 1Q16, mainly
applied to sustaining CAPEX, reduced at a minimum operational level according to the weak
demand, preserving the Companys operations

III)

STEEL PROCESSING

Solues Usiminas SU
Solues Usiminas operates in the distribution, services and small-diameter tubes markets
nationwide, offering its customers high-value added products. It serves several economic
segments, such as automotive, auto parts, civil construction, distribution, electro-electronics,
machinery and equipment and household appliances, among others.
2Q16 Results

11

Sales of the Distribution, Services/Just-In-Time and Tubes were responsible for 46%, 46% and
8%, respectively, of the total sales volume in the 2Q16.

Comments of the Results of the Business Units - Steel Processing


In the 2Q16, net revenue was R$431.9 million, stable in comparison with the 1Q16. There was
an increase in the sale average price of 3.8%, which compensated the reduction of 2.8% in the
volume of sales and services.
Cost of goods sold totaled R$397.9 million in the 2Q16, against R$409.7 million in the 1Q16, a
2.7% decrease, in function of lower volume of sales and services.
Net operating expenses totaled R$26.9 million in the 2Q16, against R$25.2 million in the 1Q16,
a 6.5% increase, due to the provisions for doubtful accounts in the period.
Thus, Adjusted EBITDA in the 2Q16 was R$14.4 million, against R$3.0 million in the 1Q16.
Adjusted EBITDA margin was 3.3% in the 2Q16, against 0.7% in the 1Q16.

IV)

CAPITAL GOODS

Usiminas Mecnica S.A.


Usiminas Mecncia is a capital goods company in Brazil, which operates in metallic structures,
shipbuilding and offshore, oil and gas, assemblies and industrial equipment and foundry and
railcars.

Main Contracts
In the 2Q16, the main projects were for the railcar segment for pulp and structures for bridges
and viaducts.

Comments of the Business Unit Results Capital Goods


In the 2Q16, net revenue was R$155.1 million, against R$169.7 million in the 1Q16, an 8.6%
decrease, as a consequence of market stagnation in the oil and gas and infrastructure sectors
in the country.
In the 2Q16, gross profit was R$14.3 million, against R$17.3 million in the 1Q16, 17.2% below
that in the 1Q16, in function of lower revenues in the segments it operates in.
In the 2Q16, Adjusted EBITDA was R$9.9 million, against R$8.3 million in the 1Q16, an
increase of 20.5%, due to a 30.9% decrease in expenses. Adjusted EBITDA margin was 6.4%
in the 2Q16, against 4.9% in the 1Q16.

Subsequent Events to the End of the Quarter


Extraordinary General Meeting - EGM
On 07/19/16, the Companys Capital Increase was homologated, through private subscription
in the amount of R$1,000,000,000.00 (one billion reais) by issuing 200,000,000.00 (two
hundred million) new ordinary shares, the same of the already existing kind, in the issue price
2Q16 Results

12

of R$5.00 (five reais) per share. Bylaws amendments were approved to reflect the changes
concerning the Company's Social Capital.
The documents related to the issue are available on the websites of CVM (www.cvm.gov.br),
BM&FBOVESPA (www.bmfbovespa.com.br) and the Company (www.usiminas.com/ri).
Extension of Standstill
Usiminas agreed with its creditors to extend to September 12, 2016 the period of suspension
of payment obligations of the principal amount and of compliance with financial covenants.
This extension was necessary in order to provide enough time for the conclusion of the final
documentation regarding the debt renegotiation and to the approval of final documentation by
the creditors internal committees.
All other conditions that had been settled in the Standstill Agreement and in the biding Term
Sheets signed between Usiminas, Brazilian Banks and Debenture holders remain in full force.

2Q16 Results

13

Capital Markets
Usiminas Performance Summary - BM&FBOVESPA (USIM5)
2Q16
Number of Deals

Change
2Q16/1Q16

1Q16

Change
2Q16/2Q15

2Q15

738,205

719,719

3%

500,667

11,718

11,995

-2%

8,208

1,741,154

1,304,536

33%

457,804

280%

27,637

21,742

27%

7,505

268%

3,665

1,763

108%

2,462

49%

58

29

97%

40

Maximum

2.60

2.11

23%

6.97

-63%

Minimum

1.45

0.85

71%

4.12

-65%

Closing

1.97

1.81

9%

4.12

-52%

1,997

1,834

9%

4,177

-52%

Daily Average
Traded - thousand shares
Daily Average
Financial Volume - R$ million
Daily Average

Market Capitalization - R$ million

47%
43%

44%

Performance on the BM&FBOVESPA


Usiminas Common shares (USIM3) closed the 2Q16 quoted at R$5.08 and its Preferred share
(USIM5) at R$1.97. In the 2Q16, USIM3 and USIM5 appreciated 24.2% and 8.8%,
respectively. In the same period, the IBOVESPA index appreciated 2.9%.

Foreign Stock Markets


OTC New York
Usiminas has American Depositary Receipts (ADRs) traded on the over-the-counter market:
USDMY is backed by common shares and USNZY, by Class A preferred shares. On 06/30/16,
USNZY ADRs, that have higher liquidity, were quoted at US$0.63 and appreciated 28.6% in
the quarter.

Latibex Madrid
Usiminas shares are traded on the LATIBEX the Madrid Stock Exchange: XUSI as preferred
shares and XUSIO as common shares. On 06/30/16, XUSI closed quoted at 0.58,
appreciating 28.9% in the quarter. XUSIO shares closed quoted at 01.20, appreciating 16.5%
in the period.

2Q16 Results

14

For further information, please contact:


INVESTOR RELATIONS DEPARTMENT

Cristina Morgan Cavalcanti


Leonardo Karam Rosa
Diogo Dias Gonalves
Renata Costa Couto

cristina.morgan@usiminas.com
leonardo.rosa@usiminas.com
diogo.goncalves@usiminas.com
r.couto@usiminas.com

55
55
55
55

31
31
31
31

3499-8772
3499-8550
3499-8710
3499-8619

For press, please contact us at imprensa@usiminas.com

Visite o Visit the Investor Relations site: www.usiminas.com/ri


or access by your mobile phone: m.usiminas.com/ri

2Q16 Conference Call Results - Date 07/28/2016


In Portuguese - Simultaneous Translation into English
Braslia time: at 01:00 p.m.

New York time: at 12:00 p.m.

Dial-in Numbers:

Dial-in Numbers:

Brazil: (55 11) 3193-1001 / 2820-4001

USA: (1 786) 924-6977

Audio replay available at (55 11) 3193-1012


Pincode for replay: 1494981# - Portuguese

Pincode for replay: 3357910# - English

Audio of the conference call will be transmitted live via Internet

See the slide presentation on our website: www.usiminas.com/ri

Statements contained in this release, relative to the business outlook of the Company, forecasts of operating and financial income and references
to growth prospects are mere forecasts and were based on the expectations of Management in relation to future performance. These expectations
are highly dependent on market conduct, the economic situation in Brazil, its industry and international markets and, therefore, are subject to
change.

2Q16 Results

15

Balance Sheet - Assets - Consolidated | IFRS - R$ thousand


Assets
Current Assets
Cash and Cash Equivalents
Trade Accounts Receivable
Taxes Recoverable
Inventories
Advances to suppliers
Financial Instruments
Other Securities Receivables

30-Jun-16

31-Mar-16

30-Jun-15

6,739,085
2,712,903
1,233,438
284,585
2,305,591
8,709
58,746
135,113

6,099,534
1,735,627
1,289,168
317,430
2,481,868
10,574
78,040
186,827

8,560,921
2,889,080
1,357,433
367,277
3,595,707
17,611
108,699
225,114

20,516,248
4,553,616
3,322,746
610,238
4,302
87,722
342,097
186,511
1,122,739
14,491,957
347,936

21,752,966

Long-Term Receivable
Deferred Income Tax & Social Contribution
Deposits at Law
Accounts Receiv. Affiliated Companies
Taxes Recoverable
Financial Instruments
Others
Investments
Property, Plant and Equipment
Intangible

20,117,670
4,432,189
3,361,515
625,730
4,300
83,011
170,670
186,963
1,157,844
14,191,715
335,922

Total Assets

26,856,755

26,615,782

Non-Current Assets

3,805,774
2,481,044
599,420
4,630
87,418
335,582
297,680
1,145,575
15,408,654
1,392,963
30,313,887

Balance Sheet - Liabilities and Shareholders' Equity - Consolidated | IFRS - R$ thousand


Liabilities and Shareholders' Equity
30-Jun-16
31-Mar-16
30-Jun-15
Current Liabilities
Loans and Financing and Taxes Payable in Installments
Suppliers, Subcontractors and Freight
Wages and Social Charges
Taxes and Taxes Payables
Accounts Payable Forfaiting
Financial Instruments
Dividends Payable
Customers Advances
Advances to Future Capital Increase
Others

5,843,359
3,075,907
852,326
245,170
108,447
478,837
119,314
140
80,077
821,159
61,982

4,884,036
2,683,255
836,683
241,759
128,740
706,873
131,505
140
59,002
0
96,079

4,718,708
1,723,993
2,069,668
319,435
98,461
188,279
146,731
141
69,897
0
102,103

Long-Term Liabilities
Loans and Financing and Taxes Payable in Installments
Actuarial Liability
Provision for Legal Liabilities
Financial Instruments
Environmental Protection Provision
Others

6,303,747
4,161,757
1,184,437
539,918
44,838
134,838
237,959

6,920,481
4,744,863
1,158,741
572,214
78,248
130,913
235,502

7,916,813
5,880,729
1,213,051
501,267
198,335
92,149
31,282

Shareholders' Equity
Capital
Reserves & Revenues from Fiscal Year
Non-controlling shareholders participation
Total Liabilities and Shareholders' Equity

2Q16 Results

14,709,649
12,200,295
916,997
1,592,357

14,811,265
12,150,000
1,074,987
1,586,278

17,678,366
12,150,000
3,661,445
1,866,921

26,856,755

26,615,782

30,313,887

16

Income Statement - Consolidated | IFRS


R$ thousand

2Q16

Net Revenues
Domestic Market
Exports
COGS
Gross Profit
Gross Margin
Operating Income (Expenses)
Selling Expenses
Provision for Doubtful Accounts
Other Selling Expenses

General and Administrative


Other Operating Income (expenses)
Provision for Legal Liabilities
Result of the Non Operating Asset Sale/Write-Off
Result of the Sale of the Surplus Electric Energy
Temporary Equipments Shutdown (includes depreciation)
Impairment of Assets
Other Operating Income (Expenses), Net

EBIT
EBIT Margin
Financial Result
Financial Income
Financial Expenses
Equity in the Results of Associate and Subsidiary Companies
Operating Profit (Loss)
Income Tax / Social Contribution
Net Income (Loss)
Net Margin
Attributable:
Shareholders
Minority Shareholders
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)
Adjusted EBITDA - Joint Subsidiary Companies proportional EBITDA
Adjusted EBITDA Margin
Depreciation and Amortization

1Q16

2Q15

Chg.
2Q16/1Q16

2,028,012
1,795,984
232,028
(2,025,315)
2,697
0.1%
(296,005)
(55,746)
(5,778)
(49,968)
(86,152)
(154,107)
(3,579)
883
(44,465)
(127,236)
393
19,897
(293,308)
-14.5%
114,621
145,707
(31,086)
36,655
(142,032)
18,675
(123,357)
-6.1%

2,040,890
1,727,749
313,141
(2,081,470)
(40,580)
-2.0%
(279,555)
(79,690)
(16,910)
(62,780)
(89,744)
(110,121)
(14,609)
71,972
(40,797)
(118,751)
(8,030)
94
(320,135)
-15.7%
101,553
99,122
2,431
51,845
(166,737)
15,360
(151,377)
-7.4%

2,676,762
2,039,974
636,788
(2,571,385)
105,377
3.9%
(1,198,920)
(60,535)
(1,917)
(58,618)
(107,821)
(1,030,564)
(12,360)
4,085
40,938
(31,020)
(985,046)
(49,200)
(1,093,543)
-40.9%
(40,629)
52,673
(93,302)
33,991
(1,100,181)
319,383
(780,798)
-29.2%

-1%
4%
-26%
-3%
+ 2.1 p.p.
6%
-30%
-66%
-20%
-4%
40%
-76%
-99%
9%
7%
21067%
-8%
+ 1.2 p.p.
13%
47%
-29%
-15%
22%
-19%
+ 1.3 p.p.

(129,432)
6,075
60,620
3.0%
67,784
3.3%
317,273

(152,770)
1,393
49,796
2.4%
51,578
2.5%
318,086

(602,187)
(178,611)
(755,210)
-28.2%
227,206
8.5%
304,342

-15%
336%
22%
+ 0.6 p.p.
31%
+ 0.8 p.p.
0%

Income Statement - Consolidated | IFRS


R$ thousand
Net Revenues
Domestic Market
Exports
COGS
Gross Profit
Gross Margin
Operating Income (Expenses)
Selling Expenses
Provision for Doubtful Accounts
Other Selling Expenses

General and Administrative


Other Operating Income (Expenses)
Provision for Legal Liabilities
Result of the Non Operating Asset Sale/Write-Off
Result of the Sale of the Surplus Electric Energy
Temporary Equipments Shutdown (includes depreciation)
Impairment of Assets
Other Operating Income (Expenses), Net

EBIT
EBIT Margin
Financial Result
Financial Income
Financial Expenses
Equity in the Results of Associate and Subsidiary Companies
Operating Profit (Loss)
Income Tax / Social Contribution
Net Income (Loss)
Net Margin
Attributable:
Shareholders
Minority Shareholders
EBITDA (Instruction CVM 527)
EBITDA Margin (Instruction CVM 527)
Adjusted EBITDA - Joint Subsidiary Companies proportional EBITDA
Adjusted EBITDA Margin
Depreciation and Amortization

2Q16 Results

1H16

Chg.
1H16/1H15

1H15

4,068,902
3,523,733
545,169
(4,106,785)
(37,883)
-0.9%
(575,560)
(135,436)
(22,688)
(112,748)
(175,896)
(264,228)
(16,317)
72,855
(85,262)
(245,987)
(7,637)
18,120
(613,443)
-15.1%
216,174
244,829
(28,655)
88,500
(308,769)
34,035
(274,734)
-6.8%

5,357,184
4,389,680
967,504
(5,008,185)
348,999
6.5%
(1,407,064)
(111,689)
(732)
(110,957)
(230,292)
(1,065,083)
(43,644)
4,458
68,803
(31,020)
(985,046)
(78,634)
(1,058,065)
-19.8%
(401,529)
421,536
(823,065)
45,962
(1,413,632)
397,454
(1,016,178)
-19.0%

-24%
-20%
-44%
-18%
- 7.4 p.p.
-59%
21%
2999%
2%
-24%
-75%
-63%
1534%
693%
-99%
-42%
+ 4.7 p.p.
-42%
-97%
93%
-78%
-91%
-73%
+ 12.2 p.p.

(282,202)
748
110,416
2.7%
119,362
2.9%
635,359

(849,647)
(166,531)
(401,331)
-7.5%
606,739
11.3%
610,772

-67%
+ 10.2 p.p.
-80%
- 8.4 p.p.
4%

17

Cash Flow - Consolidated | IFRS


R$ thousand

2Q16

1Q16

(123,357)
(90,664)
88,477
317,273
(883)
(36,655)
(393)
(20,855)
(9,422)
(372)
(5,515)
117,634

(151,377)
(54,411)
70,502
318,086
(1,972)
(51,845)
8,030
(20,441)
2,572
(350)
1,209
120,003

(Increase)/Decrease of Assets
Accounts Receivables Customer
Inventories
Recovery of Taxes
Judicial Deposits
Accounts Receiv. Affiliated Companies
Others
Total

51,725
192,095
37,836
(17,311)
2
44,097
308,444

127,563
288,733
51,389
(12,844)
110
(32,793)
422,158

Increase /(Decrease) of Liabilities


Suppliers, Contractors and Freights
Amounts Owed to Affiliated Companies
Customers Advances
Tax Payable
Securities Payable Forfaiting
Actuarial Liability Payments
Others
Total

15,643
4,697
21,075
(18,918)
(21,351)
(21,575)
(50,474)
(70,903)

16,112
(24,262)
18,203
38,016
(184,626)
(51,384)
(137,779)
(325,720)

Operating Activities Cash Flow


Net Income (Loss) in the Period
Financial Expenses and Monetary Var. / Net Exchge Var.
Interest Expenses
Depreciation and Amortization
Losses/(gains) on Sale of Property, Plant and Equipment
Equity in the Results of Subsidiaries/Associated Companies
Impairment of Assets
Difered Income Tax and Social Contribution
Constitution (reversal) of Provisions
Actuarial Gains and losses
Stock Option Plan
Total

Cash Generated from Operating Activities


Interest Paid
Income Tax and Social Contribution
Net Cash Generated from Operating Activities
Investments activities cash flow
Marketable Securities
Amount Received on Disposal of Investments
Amount Paid on the Acquisition of Investments
Fixed Asset Acquisition
Fixed Asset Sale Receipt
Additions to / Payments of Intangible Assets
Dividends Received
Purchase of Software
Net Cash Employed on Investments Activities
Financial Activities Cash Flow
Assigned Credits
Settled Credits assignments
Inflow of Loans, Financing and Debentures
Payment of Loans, Financ. & Debent.
Shares Issued / Capital Increase
Payment of Taxes Installments
Swap Operations Liquidations
Dividends and Interest on Capital
Net Cash Generated from (Employed on) Financial Activities

355,175

216,441

(126,129)
(3,835)

(240,115)
(4,135)

225,211

(27,809)

(923,314)
(36,772)
54,699
1,624
(4,575)

111,194
(64,859)
2,364
855
(4,576)

(908,338)

44,978

19,007
(109,975)
(12,741)
871,454
(316)
(20,786)

24,825
(87,487)
(90,104)
(552)
(30,723)

(2)

Exchange Variation on Cash and Cash Equivalents

746,643
(9,554)

(184,043)
(10,762)

Net Increase (Decrease) of Cash and Cash Equivalents

875,121

(177,636)

Cash and Cash Equivalents at the Beginning of the Period

622,636

800,272

1,497,757

622,636

Cash and Cash Equivalents at the Beginning of the Period


Marketable Securities at the Beginning of the Period
Cash and Cash Equivalents at the Beginning of the Period
Net Increase (Decrease) of Cash and Cash Equivalentes
Net Increase (Decrease) of Marketable Securities

622,636
1,112,991
1,735,627
53,962
923,314

800,272
1,224,185
2,024,457
(177,636)
(111,194)

Cash and Cash Equivalents at the End of the Period


Marketable Securities at the End of the Period
Cash and Cash Equivalents at the End of the Period

676,598
2,036,305
2,712,903

Cash and Cash Equivalents at the End of The Period


RECONCILIATION WITH BALANCE SHEET

2Q16 Results

18

622,636
1,112,991
1,735,627

Cash Flow - Consolidated | IFRS


R$ thousand
Operating Activities Cash Flow
Net Income (Loss) in the Period
Financial Expenses and Monetary Var. / Net Exchge Var.
Interest Expenses
Depreciation and Amortization
Losses/(gains) on sale of property, plant and equipment
Equity in the Results of Subsidiaries/Associated Companies
Impairment of Assets
Difered Income Tax and Social Contribution
Constitution (reversal) of Provisions
Actuarial Gains and losses
Stock Option Plan
Total
Increase/Decrease of Assets
Accounts Receivables Customer
Inventories
Recovery of Taxes
Judicial Deposits
Accounts Receiv. Affiliated Companies
Others
Total
Increase /(Decrease) of Liabilities
Suppliers, contractors and freights
Amounts Owed to Affiliated Companies
Customers Advances
Tax Payable
Securities Payable Derived from Suppliers
Actuarial Liability payments
Others
Total
Cash Generated from Operating Activities
Interest Paid
Income Tax and Social Contribution
Net Cash Generated from Operating Activities
Investments activities cash flow
Marketable Securities
Amount received on disposal of investments
Amount paid on the acquisition of investments
Fixed asset acquisition
Fixed asset sale receipt
Additions to / payments of Intangible Assets
Dividends Received
Software Purchase
Net Cash Employed on Investments Activities
Financial Activities Cash Flow
Assigned Credits
Settled Credits assignments
Inflow of Loans, Financing and Debentures
Payment of Loans, Financ. & Debent.
Shares Issued / Capital Increase
Payment of Taxes Installments
Swap Operations Liquidations

1H16

1H15

(274,734)
(145,075)
158,979
635,359
(2,855)
(88,500)
7,637
(41,296)
(6,850)
(722)
(4,306)
237,637

(1,016,178)
575,016
67,779
610,772
(4,630)
(45,962)
985,046
(423,530)
25,993
8,258
5,416
787,980

179,288
480,828
89,225
(30,155)
112
11,304
730,602

(110,951)
(45,084)
(11,561)
(33,151)
17,753
(112,876)
(295,870)

31,755
(19,565)
39,278
19,098
(205,977)
(72,959)
(188,253)
(396,623)

120,924
(150,078)
(40,282)
(26,836)
(87,254)
8,040
(175,486)

571,616

316,624

(366,244)
(7,970)

(278,677)
(6,609)

197,402

31,338

(812,120)
(101,631)
57,063
2,479
(9,151)

(150,330)
0
0
(444,237)
6,315
0
38,119
(14,215)

(863,360)

(564,348)

43,832
(197,462)
0
(102,845)
871,454
(868)
(51,509)

1,698,925
(1,223,887)
(577)
662

Dividends and Interest on Capital


Net Cash Generated from (Employed on) Financial Activities

(2)
562,600

(39,295)
435,828

Exchange Variation on Cash and Cash Equivalents

(20,316)

(15,971)

(123,674)

(113,153)

Net Increase (Decrease) of Cash and Cash Equivalents


Cash and Cash Equivalents at the Beginning of the Period

800,272

2,109,812

Cash and Cash Equivalents at the End of The Period

676,598

1,996,659

Cash and cash equivalents at the beginning of the period


Marketable securities at the beginning of the period
Cash and cash equivalents at the beginning of the period
Net increase (decrease) of cash and cash equivalentes
Net increase (decrease) of marketable securities

800,272
1,224,185
2,024,457
(123,674)
812,120

2,109,812
742,091
2,851,903
(113,153)
150,330

Cash and cash equivalents at the end of the period


Marketable securities at the end of the period
Cash and cash equivalents at the end of the period

676,598
2,036,305
2,712,903

RECONCILIATION WITH BALANCE SHEET

2Q16 Results

19

1,996,659
892,421
2,889,080