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Apresentao Usiminas
4Q16
2T11 - APIMEC
2
Company Profile
Steel company with the largest number of patents rights in Latin America
First Brazilian steel company to have its quality system certified by ISO 9001 in 1992
First Brazilian steel company and second in the world to achieve the ISO 14001 environmental management
certificate in 1996
Founded of the most enduring environmental education project of the private sector since 1984
3
Timeline
1962 1991 1993 1994 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016
Friables
Creation of Project
Entrance of
Acquisition Minerao conclusion
Usiminas Ternium / Tenaris R$ 1 billion
of iron ore on Mining
Usiminas Listing on into Usiminas capital
mines Acquisition (increasing
privatization ADR I on the Control Group increase
Acquisition of Codeme the capacity
Listing on OTC Market and Metform (New shareholders
of Zamprogna to 12 million Debt
BOVESPA (New York) stake agreement)
tons/year) Renegotiation
4
Shareholding Composition
Total Capital
1,253,079,108
Voting Capital Preferred
Others *
23,19% Nippon Group Grupo de Controle (63,86%)
21,10%
*
*
Free Float: 54.25% Control Group: 45.75%
Ternium/ Tenaris
Ternium / Tenaris * Group
Group 19,81%
19,76%
Usiminas Pension
Fund
Nippon Group 4,84%
11,31%
Usiminas shares are traded on BM&FBovespa (So Paulo), on the OTC Market (New York) and on a LATIBEX
exchange section (Madrid). 5
Complete Solution for Products and Services
Business Units
Capital Goods
Steel Processing
Ipatinga Plant
Cubato Plant
Mining
Unigal Usiminas
Minerao Usiminas
UPSTREAM DOWNSTREAM
6
Strategically Located
Mining
Steel
Steel Processing
Capital Goods
7
Social and Environmental Initiatives
8
Agenda
9
Brazilian Flat Steel Apparent Consumption
Thousand Tons
14.736
14.262
1.671 13.213
1.780
2.039
10.594
-13%
1.623 9.250
7.695
7.328 699
6.602
5.451
5.416
5.155 5.370
4.573
3.521 3.134
Heavy Plates,
Hot Rolled,
Cold Rolled and Heavy Plates and Hot Rolled, Heavy Plates and Heavy Plates and
Cold Rolled and
Galvanized Hot Rolled Cold Rolled and Hot Rolled Hot Rolled
Galvanized
Galvanized
11
Agenda
12
Flat Steel Capacity of Production
Thousand Tons
Galvanized
Slab Caster Slabs Heavy Plates Hot Coils Cold Coils EG HDG
Placas Laminados a Eletrogalvanizados
Quente
Ipatinga Plant 5,000 1,000 3,600 2,500 360 1,050
2,100 ** - -
Cubato Plant 4,500* 1,000** 1,200
2.300
Optimized
Rolling - 1,900 4,200 2,200 350 1,020
Capacity
* Temporary shutdown of the primary areas of Cubato
** Temporary shutdown of the rolling mills 13
Sales Volume
Steel Business Unit Thousand Tons
1.205
323 959
903 899 891
145 71
145 115
4Q16 Argentina
2016
Germany
8% 1%
1%
USA 2% 1%
6% 2%
0% 1%
6%
Spain
8% 31%
1%
Taiwan
Belgique
4%
Switzerland
14%
Portugal
20% 26%
France
15
Cost of Goods Sold - COGS
Steel Business Unit
3Q16 4Q16
Other Raw Materials
Others
16
Adjusted EBITDA and EBITDA Margin
Steel Business Unit R$ Million
14%
11%
295
332 342 224
25 46 93 50
3% 72 3%
1 (2) 1 (14)
(52) (37) (2)(42) (35) (34)
(2) (14)
(71)
(125)
(179)
-8%
18
Investments
Steel Business Unit
Start up in 2010
Meets the requirements of
Petrobras, focused on pre-
salt, besides the
shipbuilding sector
Galvanizing Line
Start up in 2011
Double the capacity to 1
million tons /year
Higher expertise in ultra-
resistant steel production
(dual phase)
19
Investments
Steel Business Unit
Pickling Line
Start up in 2013
Capacity to process 1.7 million
tons / year
Better thickness tolerance,
flatness and surface controls
of materials for wheels, beams
and compressors
20
Mainly Investment Concluded in 2015
Steel Business Unit
o Met coke with adequate specifications for pig iron production in the blast furnace process
21
Description
Mining Business Unit
Lump
70% 2 million
Sinter Feed
4 million
30% Pellet Feed
6 million
22
Location
Mining Business Unit
Igarap So Joaquim
De Bicas
Minerita
MUSA MMX MUSA
Leste Pau de Vinho
MUSA
Central
MUSA Ferrous
Oeste Ferrous Comisa Emicon
Arcelor (Santanense)
Mittal
MBL
Itatiaiuu
Minerao Usiminas
23
Investments
Mining Business Unit
Friables Project
Iron ore with better quality, higher concentration of iron content and
lower impurity level
24
Sales Volume
Mining Business Unit Thousand Tons
974
786 789
344 - - 17%
670 171 657
12 181
-
16 69
23
71
56 59
47 48
26
Adjusted EBITDA and EBITDA Margin
Mining Business Unit R$ million
30%
21% 16%
24
21
2
-11% 13
1 (3) (1)
(4)
(12)
(102)
-119%
4Q15 1Q16 2Q16 3Q16 4Q16
Betim
Santa Luzia
Serra
Taubat
Guarulhos
So Paulo
Porto Alegre
28
Adjusted EBITDA and EBITDA Margin
Steel Processing - R$ million
4%
3%
2%
22
14
1%
9
3
(1)
0%
4Q15 1Q16 2Q16 3Q16 4Q16
Steel Structures
30
30
Adjusted EBITDA and EBITDA Margin
Capital Goods - R$ million
12%
6%
5%
1%
24
8 10
1
(7)
-7%
31
Agenda
32
Adjusted EBITDA and EBITDA Margin
Consolidated R$ million
14%
11%
307
344 350
234
3% 3%
37 52 117 68
72 (12)
(50) (41) (44)1(6) (2)(36)
(33)
(3) (1) (17)
(71)
(196)
(250)
-10%
4Q15 1Q16 2Q16 3Q16 4Q16
Assets Sales/Write-off Energy Sales Provision for Doubtful Accounts
EBITDA excluding extraordinary effects Reported EBITDA Termination of Contract
Reported EBITDA Margin 33
Comparing Adjusted and CVM 527 EBITDA
Consolidated R$ Thousand
34
Debt Profile (Principal) - Consolidated
R$ million
2.257
111
7.709
7.286
7.076
6.886 6.893
5.684 4.363
5.550 4.546 4.635
2.713
2.024 2.340 2.257
1.736
36
CAPEX
Consolidated - R$ million
1.643
112
555 1.110
981 52
64 94
784
317 50
112
976 964
600 622 225
13 34
179
37
G&A Evolution
Consolidated - R$ million
4,5% 4,4%
4,2% 4,3%
3,9%
109
90 87 91
86
38
Working Capital
Consolidated R$ billion
2,5
2,4
2,3
2,2
2,1
Inventory
turnover
(days)
639 648
484
439 443
65
48 48 44 42
40
Income Statement
Per Business Unit R$ million - Quarterly
www.usiminas.com/ri
ADR
Level I