1

Corporate Presentation

2

This presentation may contain certain forward-looking statements and information relating to Paranapanema S.A. (the

“Company”) that reflect the current views and/or expectations of the Company and its management with respect to its

performance, business and future events. Forward-looking statements include, without limitation, any statement that may

predict, forecast, indicate or imply future results, performance or achievements, and may contain words and/or any other

phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you

that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations,

estimates and intentions expressed in this presentation.

In no event, neither the Company nor any of its subsidiaries, affiliates, directors, officers, agents or employees shall be liable

before any third party (including investors) for any investment or business decision made or action taken in reliance on the

information and statements contained in this presentation or for any consequential, special or similar damages.

This presentation and all its contents are proprietary information and may not be reproduced or otherwise disseminated in

whole or in part without the prior written consent of the Company. The information contained in this presentation is subject to

change from time to time without notice and the Company is under no obligation to keep you advised of such changes

Disclaimer

3

1

2 5

4

3

Company Overview

Financials

Copper Sector

Agenda

Business Model

PMAM at a glance

6 Attachments

4

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2 5

4

3

Company Overview

Financials

Copper Sector

Agenda

Business Model

PMAM at a glance

6 Attachments

5

Key Figures

2014 Revenues R$4.7 billion

2014 Adj. EBITDA Margin 7.6%

Number of plants 3

Employees ~2,000

Brazilian market share (refined copper) 100%

Shareholding Structure

PMAM at a Glance

24%

17%

12%9%6%

11%

8%

13%

Individuals

Locals

Foreign

Figures in kt refer to annual capacityYTD September 2015

Cathodes (280 kt) – premium quality (LME certified)

Brands: CbM, CbM P

Destination: Worldwide

Primary Copper(35-45%)

Rods (220 kt) Wires (80 kt)Tubes (35 kt) Rolled (26 kt) Bars (12 kt) Fittings (4 kt)

Destination: Worldwide

Copper Products

(50-55%)

Sulfuric Acid (560 kt) Anodic Slimes (540 kt)Iron Silicate (396 kt)

Destination: Anodic Slimes worldwide and Sulfuric Acid and Iron Silicate Northeast of Brazil

By-Products

(5-15%)

Business Segments*

Largest Brazilian non-integrated producer of refined copper, rods, wires, rolled, bars, tubes and fittings

2015 YTD Revenues R$2.9 billion

2015 YTD Adj. EBITDA Margin 7.0%

6

2013- 2018

PMA Transformation – Time LineFocus on transformation of copper and increased industrial availability

Number of initiatives to ensure greater industrial availability, operating leverage, profitability and consequent results stability

2000-20121960 - 2000

Constitution in 1961 – heavy

construction

IPO in 1971

Pension funds become major

shareholders (1996)

Concentration in non-ferrous

(largest copper producer in

Brazil)

Processes reengineering

60% of the leadership replaced, including CEO (commodities sector)

PMA 2018 Project

Construction of tube plant

New Cast&Roll plant launched

Smelter plant recovery (Dias d’Ávila)

Risk and financial management

Commercial strategy in transformation

Assets base reorganization

Entrance to Novo Mercado

(BM&FBOVESPA) (2012)

Investment plan for expansion

and modernization (R$ 702

million)

Foundation and Expansion Focus on Copper Operational Efficiency and Risk Management

7

Scheduled maintenance for recovery of smelter

New Sulfuric Acid Unit (UAS) Maximizing Cast & Roll New straight tube plant Inauguration of Trefila IV Closed Capuava plant (savings of R$9

million/year) Renegotiation of logistic contracts

(eg: transportation of copper concentrate, with economy of US$5 million/year)

CHESF renewal (energy supply assurance)

Redesign of commercial structure Implementation of a market

intelligence cell Developing relationships in foreign

markets ( focus on the Americas) Credit policy review SKUs review (more than 2,000 items) Protection and growth of liquidity Reduction of recurring expenses by

17% (2014 x 2013) Renegotiation of contracts with

suppliers on several fronts

Risk policy Debt qualification Review and better understanding of

legal proceedings (eg: reversal drawback process)

60 % of the management renewed with market professionals

Board of Directors – Independent Chairman

Advisory Committees supporting the Board of Directors: Audit Committee Finance, Risks and

Contingencies Committee Personnel and Sustainability

Management Committee

Operational Commercial and SG&AFinancial Management and

Corporate Governance

Key Action PointsDeep changes in the Company’s structures

Comprehensive view of its markets, operational efficiency, financial management and reduction of costs and expenses

Increased industrial availability and cost control

Intelligence to diversify between customers and clients and

rationalization of resources

Focus on financial management being driven by a high corporate

governance

8

Global Supplier of Refined Copper & ProductsMarket intelligence to expand customer base

Exceptional quality, large production and global supply capacity

Increase in Rods capacity (80 kt): new drawing mill inaugurated in 2015

Close to maximum industrial efficiency, reducing destocking risks:

— capability to import anodes / cathode to guarantee supply

Commercial strategy gaining power, with penetration into new markets growing constantly

Developing relationships in foreign markets

North America

Asia

Australia/Oceania

Europe

Africa

Latin America

Central America

PMA has 3 processing plants:

• Dias D’Ávila – (BA)

• Utinga – Santo André (SP)

• Serra – (ES)

9

Actions on Commercial FrontFocus on Market intelligence

% Revenues

Domestic Market (MI) Export Market (ME)

3Q14

PrimaryCopper

36%

Copper Products

54%

2Q15 3Q15

PrimaryCopper

30%

Copper Products

57%

By-products13%

By-products10%

PrimaryCopper

46%

Copper Products

46%

By-products8%

39%

61%

80%

20%

31%

69%

MI ME MI ME MI ME

12%

88%

68%

32%37%

63%

MI ME MI ME MI ME

9%

91%

68%

32%

48%52%

MI ME MI ME MI ME

Accurate commercial management using Premium Matrix (different margins between products and destinations), maximized result of industrial flexibility

10

Operational efficiency and higher ROIC will position PMA as a dividend play

Risk management

Increasing Marginsand ROIC

Discipline in capital usage

Capacity utilization + costs reduction

Relevant market share in a region with protected premiums

Focus on operational and commercial efficiency

Reduce capital applied to business, especially inventories

Metal and cash flow hedges strongly reducing volatility on results

Equity Story: Copper Fixed Income

11

Committed in working for value creation to shareholders

Why PMAM?

Sole Brazilian smelter and refiner, with strong positioning in the value chain

Diversification between products and markets protects margins

Exceptional quality, large production and global supply capacity

Recent organizational emphasizes corporate governance

New management has shifted focus to increase ROIC

Current focus is to maximize capacity utilization, reduce costs and improve risk management seeking sustainable and improved results

12

Expected Results in Coming Quarters

Maintenance will allow greater volume of industrial production (higher dilution of costs)

Commercial strategy gaining power, with penetration into new markets growing constantly

Reduction of costs and expenses not fully captured yet

Appreciation of the US dollar affecting the coming quarters

Improvement of risk management policy

Monetization of non-operating assets

Lengthening debt profile

Important actions being implemented that bear fruit in the short and long term

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Company Overview

Financials

Copper Sector

Agenda

Business Model

PMAM at a glance

6 Attachments

14

Co

mp

etit

ors

Domestic:- Ibrame - Prysmian

Foreign:- Codelco (Chile)- ILO (Peru)- Aurubis (Germany)- Antofagasta (Chile)- Glencore (UK/Switzerland)

Domestic:- Termomecânica- Cecil- Ibrame- Plasinco

Foreign:- Nacobre and IUSA (Mexico)- Ceper and Indeco (Peru) - Nexans (Canada) - Aurubis (Germany)

Domestic:- Termomecânica

Foreign:- Aurubis (Germany)

Pro

du

cts

Copper Rod WireCathodes

Rolled

Copper Products

Semi-Finished Finished

Primary Copper (smelting and refining)

By-ProductsSemi-Finished

Copper Products

Finished

Industrial Tubes Bars and Profiles

Tubes Connections Wires

Anodic Slime

Sulfuric Acid

Iron Silicate

Domestic:- Galvani- Vale

Foreign:- Aurubis (Germany)- Glencore (UK/Switzerland)

Company OverviewBusiness segments and competition overview

15

49%

27%

9%

4%3%

10%

Argentina

Japan

USA

UKOthers

International Trading

Companies

32%

27%

7%

7%

6%

5%

3%2%

12%

Eletroelectronics

CivilConstruction

Enamelled

Re-sale

Energy

Mecanic andMetallurgy

CoolingFertilizer

Others

2014 Revenue Per Segment and Markets Revenue Per Sector

Exports Per Region

Company OverviewRevenue breakdown per segment

Segment diversification and strong positioning reduces impacts from markets fluctuations

Primary Copper (refining - cathodes)– 100% of refined copper in Brazil

Copper Products – B2B and B2C (semi-finished and finished products)– Different types of sectors and clients

By-products (B2B products)– Very low associated cost

44%

56%

78%

22%

35%

65%

MI ME MI ME MI ME

PrimaryCopper

34%

Copper Products

58%

By-products8%

Domestic Market (MI) Export Market (ME)

16

Production plants

Distribution center

Paranapanema has 3 processing plants and one distribution center

Proximity between facilities and main customers (South and Southeast regions, country’s highest GDPs) is a strategic advantage

Imported copper concentrate arrives at Aratú Port (Bahia), 24 km distant from the plant

Estimated 62% market share in scrap origination all over Brazil

Sulfuric acid sales (by-product) within a 50km radius

Copper Concentrate Origin

Utinga – Santo André (SP)

Production of copper and brass bars, wires, rolled,

tubes and bronze

Serra – (ES)Production of copper and

bronze fittings for civil construction

Dias D’Ávila – (BA)Smelting and refining of

primary copper, cathodes, rods, drawn wire and by-

products

ChileMain supplier

of copper concentrate

PeruSupplier of

copper concentrate

Production Facilities and Raw Materials Supply

Company OverviewWell located facilities: smart logistics and arbitrage between domestic and export sales

Casting

Refining

Electrolysis

Lamination

Stretching

Copper concentrate

(Third-party raw materials)

Estimated time between purchasing concentrate and

delivering products

1 m

on

th1

0

Day

s1

0

Day

s2

2

day

s1

0

Day

s1

0

Day

s

Total cycle: 90 days

Production Timing

17

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Company Overview

Financials

Copper Sector

Agenda

Business Model

PMAM at a glance

6 Attachments

18

Risk Management

- R$ 5 bi

- R$ 4 bi

Tota

l Re

ven

ues

Met

al R

eve

nu

es

TC/R

C +

P

rem

ium

s +

By-

pro

du

cts

Metal C

ost

Financial + D&ACT* +SG&A

EBTEBITDA

*CT: transformation cost

Risk Management Premium Management Costs Control

Mitigate FX and commodity volatility impact on results— Hedge of metal exposure— Strict dollar-denominated cash flow

hedge Well structured governance, policies and

controls

TC/RC Optimization of premium matrix Price premiums denominated in US

dollars Premiums not linked to LME quotes Arbitrage between products to maximize

premiums

Implementation of Zero Base Budgeting Leveraging on improved technologies Processes/plants consolidation Increasing operational leverage More efficient funding structure Transformation costs mostly in Reais

(95%)

Business ModelPremium management and cost control aligned with efficient risk management

USD

USD USD

BRL

USD

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Company Overview

Financials

Copper Sector

Agenda

Business Model

PMAM at a glance

6 Attachments

20

Sales Volume*(K t)

Production stoppages during 1H14 (maintenance)

5% recovery in production volume during 2H14

* Sales volume net of intra-operating eliminations

Production Volume(K t)

Sustainable trend already clear, despite production and sales impacted by domestic environment and production stoppages

244

366

305

2012 2013 2014

246

330

267

2012 2013 2014

Net Revenues(R$ M)

4,026

5,549

4,734

2012 2013 2014

Better commercial arbitrage opportunity between products and markets than in 2013

Lower sales volume and LME quote in 2014 impacted Revenues

FinancialsProduction, Sales and Revenues

21

Transformation cost down 5% even considering 2014 inflation

Gross Profit and Gross Margin(R$ M)

Margin gain: higher operating efficiency and Transformation Cost reduction

COGS(R$ M)

184

395 384

4.6%

7.1%

8.1%

-01%

00%

01%

02%

03%

04%

05%

06%

07%

08%

,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

450,0

2012 2013 2014

Gross Profit Gross Margin

3,361

4,570

3,798

480

584

5533,842

5,154

4,350

2012 2013 2014

Metal Cost Transformation Cost

-5%

Efforts to reduce Transformation Cost resulted in Gross Margin gain, despite decrease in Net Revenues

FinancialsCOGS and Gross Profit

22

Operating efficiency, costs reduction and hedge accounting are reflected in EBITDA and Net Profit

20 times growth

2015: Accumulated Losses could be fully compensated

Adjusted EBITDA (R$ M)

Recurring EBITDA Margin gain

Net Profit(R$ M)

20x higher

(206)

6

124

2012 2013 2014

125

332358

3.1%

6.0%

7.6%

2012 2013 2014

EBITDA EBITDA Margin

FinancialsAdjusted EBITDA and Net Profit

23

Efforts in reducing expenses and risk management policy contributed to results recovery

Financial Result(R$ M)

Hedge Accounting adoption already presented relevant effect in 2014 Efforts in expenses review resulted in 15% decrease in recurring expenses

Zero Base Budgeting has already allowed further reductions

Recurring Expenses(R$ M)

-15%

138

168

143

2012 2013 2014

(71)

(163)

22

2012 2013 2014

FinancialsExpenses and Financial Result

24

-261

-482

604

2012 2013 2014

Free Cash Flow (R$ M)

Debt Maturity Schedule (R$ M) Net Debt/LTM Adjusted EBITDA

Cash & Debt (R$ M)

FinancialsImproving Balance Sheet and Free Cash Flow

1,079 999

1,590

174

304 70 42

Cash 2015 2016 2017 2018 2019 Gross Debt

Cash = ~2 years of amortization

1,362 1,457

1,796

2,095

2,919

325 274

656 869

1,336

133 103 204 280 336

988 1,048 1,079 1,127 1,322

-2.000

-1.500

-1.000

-500

-

500

1.00 0

-

500

1.00 0

1.50 0

2.00 0

2.50 0

3.00 0

3.50 0

3Q14 4Q14 1Q15 2Q15 3Q15

Gross Debt (R$) Net Debt (R$) Net Debt (US$) Cash

1.5x 1.5x1.0x

0.8x

1.6x

2.5x

3.4x

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

25

FinancialsROIC - PMA vs. Peer Group

PMA’s ROIC greater than peer group, with growth in last 10 quarters

ROIC Peer Group 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Paranapanema 3.8% 4.9% 8.9% 8.9% 7.9% 8.3% 7.6% 9.9% 12.7% 9.8% 11.9%

Aurubis 5.8% -2.9% -4.5% -6.7% -9.1% 2.8% 2.4% 5.2% 9.7% 8.0%

Ferbasa 5.1% 4.5% 3.9% 5.1% 6.3% 7.0% 6.1% 4.9% 5.9% 8.2%

Magnesita 8.6% 8.9% 8.1% 9.0% 8.0% 7.0% 7.5% 3.5% 4.1% 4.0%

CSN -0.5% 5.4% 6.7% 8.4% 10.2% 11.9% 11.2% 8.1% 6.3% 3.9%

Usiminas -1.4% -0.8% 0.6% 1.8% 3.0% 3.2% 2.5% 1.8% 0.8% -3.7%

Gerdau 4.6% 4.4% 5.0% 5.7% 6.2% 5.9% 5.3% 5.6% 5.1% 4.9%

Vale 9.2% 8.9% 10.3% 11.5% 10.9% 10.7% 8.5% 5.7% 4.0% 2.9%

Peer Group Average 4.5% 4.0% 4.3% 5.0% 5.1% 6.9% 6.2% 4.9% 5.1% 4.0%

ROIC potential growth :

Operating Result (NOPAT): higher capacity utilization (higher dilution of fixed costs)

Invested Capital:

— Working Capital management

— Cash is King Program: monetization of non-operating assets

Note: Considers 12 last months prior to the measurement date

26

FinancialsQuarterly overview

In R$ thd, except otherwise

stated3Q14 3Q15 ∆ % 2Q15 ∆ %

Sales Volume (ton) 70,784 77,323 9% 65,411 18%

Domestic Market 35,335 27,253 -23% 28,934 -6%

Export Market 21,722 43,878 102% 28,044 56%

Toll 13,727 6,193 -55% 8,433 -27%

Net Revenues 1,238,165 1,537,875 24% 1,167,872 32%

Domestic Market 711,157 588,363 -17% 530,523 11%

Export Market 491,960 932,035 89% 616,334 51%

Toll 35,047 17,477 -50% 21,016 -17%

Cost of Goods Sold (COGS) 1,132,930 1,354,821 20% 1,162,660 17%

Gross Profit 105,235 183,054 74% 5,212 3412%

% Revenues 8.5% 11.9% 3.4 p.p. 0.4% 11.5 p.p.

Operating Expenses (41,159) (81,377) 98% (41,872) 94%

Financial Result 112,047 151,270 35% (96,928) -256%

Taxes (45,210) (66,567) 47% 25,448 -362%

Net Result 130,913 186,380 42% (108,140) -272%

% Revenues 10.6% 12.1% 1.5 p.p. -9.3% 21.4 p.p.

Adjusted EBITDA 109,204 160,393 47% 4,431 3520%

% Revenues 8.8% 10.4% 1.6 p.p. 0.4% 10.0 p.p.

27

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Company Overview

Financials

Copper Sector

Agenda

Business Model

PMAM at a glance

6 Attachments

28

Copper Market Outlook – Key Factors

0

5

10

15

20

25

30

35

40

1992 1997 2002 2007 2012 2017 2022 2027

Possible Projects

Probable Projects

Highly Probable Projects

Base Case Production Capability

Primary Demand

Global copper imbalance to sustain high TC/RCs that together with efficient risk management should continue to benefit margins

Global Copper Production and Primary Demand (Mt)1

TC/RCs (US$/t and R$/t) 2 – Quoted Benchmark

1 Source: Wood Mackenzie March 2015 2TC/RC = Treatment Charge/Refining Charge (discount miners give to smelters to transform concentrate in refined copper)3 Bloomberg, Company data

Replacement cost

Comparable smelter valuations Year Country Capacity (Kt) Costs (US$ M) Cost/t

Jinjian (Tongling) 2008 China 40,8 66 1,618

Nchanga (Konkola) 2010 Zambia 300 450 1,500

Yunnan 2010 China 100 155 1,550

Tuticorin (Sterlite) 2012 India 400 500 1,250

Jinchuan Copper (phase 1) 2014 China 400 2,000 5,000

First Quantum Sentinel Smelter 2015 Zambia 300 690 2,300

Freeport / PT Aneka Tambang(estimate)

2015 Indonesia 300 2,200 7,333

Average (in US$) 866 2,936

Country Capacity (Kt)Market Cap

(US$ M)* Cost/t

Paranapanema Brazil 280 165 591

-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

20

22

20

24

20

26

20

28

20

30

20

32

20

34

OthersZambiaSpainMexicoGermanyPeruSouth KoreaKazakhstanAustraliaPolandCanadaRussiaUnited StatesChinaJapanChile

Evolution of Smelter Capacity by Country (kt)1

* Market Cap on 09/30/2015

254 310 352 388 510610

447 519 688

838

1,199

2,373

2010 2011 2012 2013 2014 2015 YTD

US$/t R$/t

29

Copper Market Outlook – Key Factors

0

5

10

15

20

25

30

35

40

1992 1997 2002 2007 2012 2017 2022 2027

Possible Projects

Probable Projects

Highly Probable Projects

Base Case Production Capability

Primary Demand

Global copper imbalance to sustain high TC/RCs that together with efficient risk management should continue to benefit margins

Global Copper Production and Primary Demand (Mt)1

TC/RCs (US$/t and R$/t) 2 – Quoted Benchmark

1 Source: Wood Mackenzie March 2015 2TC/RC = Treatment Charge/Refining Charge (discount miners give to smelters to transform concentrate in refined copper)3 Bloomberg, Company data

Replacement cost

Comparable smelter valuations Year Country Capacity (Kt) Costs (US$ M) Cost/t

Jinjian (Tongling) 2008 China 40,8 66 1,618

Nchanga (Konkola) 2010 Zambia 300 450 1,500

Yunnan 2010 China 100 155 1,550

Tuticorin (Sterlite) 2012 India 400 500 1,250

Jinchuan Copper (phase 1) 2014 China 400 2,000 5,000

First Quantum Sentinel Smelter 2015 Zambia 300 690 2,300

Freeport / PT Aneka Tambang(estimate)

2015 Indonesia 300 2,200 7,333

Average (in US$) 866 2,936

Country Capacity (Kt)Market Cap

(US$ M)* Cost/t

Paranapanema Brazil 280 165 591

-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

20

18

20

20

20

22

20

24

20

26

20

28

20

30

20

32

20

34

OthersZambiaSpainMexicoGermanyPeruSouth KoreaKazakhstanAustraliaPolandCanadaRussiaUnited StatesChinaJapanChile

Evolution of Smelter Capacity by Country (kt)1

* Market Cap on 09/30/2015

254 310 352 388 510610

447 519 688

838

1,199

2,373

2010 2011 2012 2013 2014 2015 YTD

US$/t R$/t

30

Malleable & Ductile

Corrosion Resistant,

Machinable & Formable

Excellent Conductor &

Heat Transferer

Copper Key Physical Properties

Copper’s benefits extend beyond mechanical characteristics:

- Essential to the health of plants, animal and humans. Deficiencies, as well as excesses, can be detrimental to health

- Recycling: copper is one of the most recycled off all metals. Virtually all products made from copper can be recycled and recycled copper loses none of its chemical or physical properties

- Energy Efficiency: copper can improve the efficiency of energy production and distribution systems

- Antimicrobial Properties: copper and copper alloy products can be used to eliminate pathogens and reduce the spread of diseases

Copper SectorCopper is the base of society’s infrastructure and is present everywhere

31

Tubes and accessories, gas heating, bars,

switch, sockets, electric energy

wires and cables

Civil Construction

Electric vehicles,

brake pads, radiators and heat diffusors

Automotive Sector

Copper-nickel alloys to prevent corrosion

Naval Construction

Water and gas tubes, electronic connectors, heat diffusors, electric

engines and cables

Industry

Wires and connectors

Telecommunications

Circuits, wires and

connectors

Eletroelectronics

Copper alloys used in buttons, zipper, buckle,

jewelry, surgical instruments and

military applications

Dressing, Decoration and Specialties

Wires and energy cables, solar panels,

wind turbine and ethanol production

Energy

Copper SectorCopper is widely used in all sectors

32

1.0

2.5

0.3

1.4

2.2

2.72.9

3.1

2012 2013 2014 2015E 2016E 2017E 2018E 2019E

7.7 7.77.4

7.1 6.8 6.6 6.4 6.3

2012 2013 2014 2015E 2016E 2017E 2018E 2019E

3.4 3.3 3.33.5

3.7

4.1 4.0 4.0

2012 2013 2014 2015E 2016E 2017E 2018E 2019E

Global GDP Growth (%) China GDP Growth (%) Brazil GDP Growth (%)

Global economy with sustainable growth in coming years will support copper demand

Despite Chinese deceleration, growth rates are still very high, while Brazil presents a high potential growing market

Source: IMF

Copper SectorGlobal GDP drives copper demand

33

Concentrate Production (Mt) Smelter Production (Mt) Refined Consumption (Mt)

China is the most important player accounting for 44% of global consumption

China also holds a disproportionate amount of global stocks

Strong growth of copper mining supply in 2013/2014 puts award pressure leading to higher TC/RC (large discount to

smelters)

Expected growth in refined consumption will surpass growth in production, supporting higher premiums

Refined copper prices to come under downward pressure over the next few years

Source: WoodMackenzie, December 2014

11.1 10.9 11.0 11.4 11.2 11.6

4.3 4.7 5.3 6.0 7.1 7.7

2011 2012 2013 2014 2015E 2016E

15.4 15.6 16.317.5 18.3

19.3

14.8 15.2 16.5 17.0 17.7 18.7

1.4 1.51.6 1.7 1.7

1.8

2011 2012 2013 2014 2015E 2016E

16.2 16.818.1

18.7 19.520.5

11.8 11.4 11.4 11.9 12.3 12.6

7.8 8.2 9.2 9.9 10.3 10.7

2011 2012 2013 2014 2015E 2016E

19.6 19.620.6 21.8 22.6

23.3

RoW China RoW China RoW China

Copper SectorProduction, refining and consumption drive copper price

34Source: WoodMackenzie, LME

Copper SectorRecent drop in copper prices caused by macro scenario and oil prices

5.000

5.500

6.000

6.500

7.000

7.500

Improving economic sentiment and declining LME stocks boost prices

Sharp price fall leads to

scrap vacuum

Weak manufacturing data and credit issues

in China

SRB buying

Quingdao warehouse

fraud uncovered

Generally positive macro-indicators and falling

stocks supports prices

Prices slides as global

growth fears escalate as oil price tumbles

Strong USD pressuring

commodities

LME

US$

/t

Increasing concerns over US and China

economies

35

0

5

10

15

20

25

30

35

2000 2005 2010 2015E 2020E 2025E 2030E 2035E

mill

ion

to

nes

North America Europe China Other Asia Row

0

5

10

15

20

25

30

35

40

45

2000 2005 2010 2015E 2020E 2025E 2030E 2035E

mill

ion

to

nn

es

Construction Electrical Network Industrial Machinery Transport Consumer & general

Wire rod74%

Billet13%

Cake/Slab13%

Electrical conductivity

59%

Heat transfer

9%

Aesthetics/malleable

28%

Signal transfer

4%

Refined Consumption by Region Total Consumption by Industry Sector

By First Use By Market Sector By Property

Construction30%

Electrical Network

19%Industrial

Machinery11%

Transport12%

Consumer & general

28%

Source: WoodMackenzie, December 2014

Copper SectorSustainable global copper consumption growth

36

China (kt) Brazil (kt)

0

5000

10000

15000

20000

25000

30000

35000

1960 1970 1980 1990 2000 2010 2020 2030

1970 - 19793.4% growth p.a.

1960 - 19694.7% growth p.a.

1980 - 19891.8% growth p.a.

1990 - 19993% growth p.a.

2000 - 20091.5% growth p.a.

2010 - 20193% growth p.a.

2020 - 20351.5% growth p.a.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1960 1970 1980 1990 2000 2010 2020 2030

1970 - 19798% growth p.a.

1960 - 19693.5% growth p.a.

1980 - 19895.9% growth p.a.

1990 - 19999.6% growth p.a.

2000 - 200915% growth p.a.

2010 - 20195.7% growth p.a.

2020 - 20352% growth p.a.

0

100

200

300

400

500

600

700

800

900

1960 1970 1980 1990 2000 2010 2020 2030

1970 - 197913.1% growth p.a.

1960 - 19698.7% growth p.a.

1980 - 1989-3% contraction p.a.

1990 - 19999.2% growth p.a.

2000 - 2009-0.5% contraction p.a.

2010 - 20192.2% growth p.a.

2020 - 20352.4% growth p.a.

Global (kt)

Global refined copper demand still driven by China (44% of global demand in 2013 – expected 48% in 2020, a 7% CAGR)

Main drivers:— Global GDP growth— Emerging markets growth— Infrastructure and consumer goods sectors— Use of new technologies

Source: WoodMackenzie, December 2014

Copper SectorChina still is the main driver of global copper consumption

37

19.7 20.2 20.822.1

23.024.0 24.3 24.4

2011 2012 2013 2014 2015E 2016E 2017E 2018E

Global Refined Production (Mt) Global Refined Consumption (Mt)

19.6 19.620.6

21.822.6 23.3 23.9 24.4

2011 2012 2013 2014 2015E 2016E 2017E 2018E

Consumption to outpace production in next years, supporting current premium levels

Source: WoodMackenzie, December 2014

Copper SectorRefined copper imbalance continues to benefit smelters

38Source: WoodMackenzie, December 2014

0.6

2.3

0.7

3.6

0.2

13.6

0.7

0.1+2.7

-0.4-0.6

+1.1

-0.4

+0.6

-2.9

+0.4

Demand

Surplus

Deficit

Cathode deficit in China and other regions create exports opportunities, also benefited by USD appreciation

Global Cathode Demand per Region - Mt

2014e demand: 21.8 million t2014e output: 22.1 million t

Copper SectorRegional imbalance creates interesting export opportunities

39

212

175

257

238

280 280

2011 2012 2013 2014 2015E 2016E

214221

269

294

356377

2011 2012 2013 2014 2015E 2016E

452

395419

442 453474

2011 2012 2013 2014 2015E 2016E

Concentrate Production (Kt) Smelter Production (Kt) Refined Consumption (Kt)

Refined consumption still expected to increase despite economic slowdown

Copper consumption growth in Brazil is expected to resume by:

— recovery in domestic industrial production (end of “Port War”)

— growth in primary consumption and Real Estate sectors

— investments in ground transportation, electricity and infrastructure

Paranapanema is the only Brazilian smelter with 100% refined copper domestic production

Source: WoodMackenzie, December 2014

Copper SectorBrazilian copper industry follows the global path, despite consumption affected by economic slowdown

40

1

2

4

3

Company Overview

Financials

Copper Sector

Agenda

Business Model

PMAM at a glance

6 Attachments

5

41

Attachment I – Income Statement

[BRL thousand] 3Q14 3Q15 Change % 2Q15 Change %

Net Revenues 1,238,165 1,537,875 24% 1,167,872 32%

Domestic Market 711,157 588,363 -17% 530,523 11%

Export Market 491,960 932,035 89% 616,334 51%

Transformation/Toll 35,047 17,477 -50% 21,016 -17%

Cost of Goods Sold (1,132,930) (1,354,821) 20% (1,162,660) 17%

Gross Profit 105,235 183,054 74% 5,212 3412%

% of Revenues 8.5% 11.9% 3.4 p.p. 0.4% 11.5 p.p.

Sales Expenses (7,201) (11,010) 53% (8,003) 38%

General and Administrative (5,149) (18,523) 260% (23,624) -22%

Management Compensation (1,562) (1,852) 19% (1,661) 11%

Employee Profit Sharing (5,316) (13,761) 159% (2,412) 471%

Other Operating, net (21,931) (36,231) 65% (6,172) 487%

EBIT 64,076 101,677 59% (36,660) -377%

% of Revenues 5.2% 6.6% 1.4 p.p. -3.1% 9.7 p.p.

Financial Result 112,047 151,270 35% (96,928) -256%

Financial Income 245,879 840,273 242% 120,087 600%

Financial Expenses (133,832) (689,003) 415% (217,015) 217%

Taxes (45,210) (66,567) 47% 25,448 -362%

IR and CSLL – Current 327 (5,570) -1803% 15,666 -136%

IR and CSLL – Deferred (45,537) (60,997) 34% 9,782 -724%

Net Result 130,913 186,380 42% (108,140) -272%

% of Revenues 10.6% 12.1% 1.5 p.p. -9.3% 21.4 p.p.

Adjusted EBITDA 109,204 160,393 47% 4,431 3520%

% of Revenues 8.8% 10.4% 1.6 p.p. 0.4% 10.0 p.p.

42

Attachment II – Balance Sheet

[BRL thousand] 3Q14 3Q15 ∆ % 2Q15

Assets 4,755,386 5,724,574 20% 5,209,975

Current 2,938,173 3,847,263 31% 3,251,451

Cash and cash equivalents 176,975 687,814 289% 438,508

Financial Investments 741,946 609,309 -18% 612,328

Accounts receivable 391,966 655,795 67% 479,281

Inventories 1,386,153 1,464,696 6% 1,433,048

Tax recoverable 171,277 142,769 -17% 150,942

Anticipated expenses 6,129 11,696 91% 10,965

Derivatives 48,121 260,980 442% 99,831

Other current assets 15,606 14,204 -9% 26,548

Non-current 1,817,213 1,877,311 3% 1,958,524

Financial investments at fair value 69,553 24,446 -65% 75,701

Accounts receivable 1,966 3,077 57% 3,373

Deferred taxes 93,545 47,933 -49% 108,929

Tax recoverable 177,417 260,621 47% 282,720

Legal deposits 58,336 49,367 -15% 49,708

Assets for sale 9,535 112,195 1077% 102,248

Other non-current assets 65,489 109,550 67% 80,842

Other investments 10,548 646 -94% 10,548

Fixed assets 1,326,315 1,260,597 -5% 1,235,467

Intangible 4,509 8,879 97% 8,988

[BRL thousand] 3Q14 3Q15 ∆ % 2Q15

Liabilities 3,466,022 5,483,068 58% 4,164,343

Current 2,710,824 4,133,386 52% 3,271,930

Local suppliers 97,391 73,935 -24% 77,753

Foreign suppliers 1,646,712 1,822,806 11% 1,487,480

Salaries and social charges 43,035 54,706 27% 36,668

Tax payable 15,196 30,571 101% 8,588

Loans and financings 678,522 1,423,864 110% 1,302,987

Derivatives 116,275 355,869 206% 100,230

Other accounts payable 113,693 371,635 227% 258,224

Non-current 755,198 1,349,682 79% 892,413

Suppliers 3,731 1,142 -69% 1,429

Loans and financings 567,096 1,138,951 101% 691,839

Contingencies provisions 183,956 208,766 13% 199,091

Tax payable 415 823 98% 54

Shareholders’ equity 1,289,364 241,506 -81% 1,045,632

Paid in capital 1,382,990 1,382,990 0% 1,382,990

Capital reserves 26,452 (741) -103% (741)

Revaluation reserves 250,700 238,895 -5% 241,762

Profit reserves 14,294 0 n.a. 0

Accumulated profit (losses) (168,956) 116,423 -169% (72,824)

Equity valuation adjustments (216,116) (1,496,061) 592% (505,555)

Total Liabilities + Shareholders’ Equity 4,755,386 5,724,574 20% 5,209,975

43

Attachment I – Cash Flow

[BRL thousand] 2Q15 3Q15 ∆ %

Cash flow from operating activities (393,847) (133,082) -66%

Profit before taxes (133,588) 252,947 -289%

Adjustments to reconcile net income to cash flow from operating activities

Residual value of asset write-off 2,104 289 -86%

Depreciation and amortization 28,957 29,742 3%

Provision for judicial losses 1,239 17,953 1349%

(Reversion)/Provision recoverable value estimated loss (2,294) 3,031 -232%

Residual value of asset write-off (158) (44) -72%

Long term financial expenses (57,839) (131,199) 127%

Present value adjustment - receivables and suppliers 3,393 814 -76%

Change in operating assets and liabilities 72,857 (180,475) -348%

Accounts receivable (29,617) (31,648) 7%

Inventories (45,426) 30,272 -167%

Tax recoverable 1,580 (731) -146%

Prepaid expenses (602) 385 -164%

Legal deposits 5,265 (425,735) -8186%

Derivatives 32,124 (16,310) -151%

Other assets (195,721) (78,318) -60%

Accounts payable (4,912) 10,160 -307%

Current income tax and social contribution - 7,022 n.a.

Legal deposits additions and reductions (7,562) (8,278) 9%

Payroll and social charges (6,203) 18,038 -391%

Derivatives (105,875) 255,639 -341%

Other liabilities 48,431 113,409 134%

[BRL thousand] 2Q15 3Q15 ∆ %

Cash flow from investing activities Financial investments 188,565 (1,200) -101%

Resources from the incorporation of subsidiaries 244,937 54,274 -78%

Fixed assets and intangible additions (56,372) (55,474) -2%

Cash flow from financing activities 497,704 383,588 -23%

Raise of loans and financing 807,130 806,897 0%

Payment of loans and financing (309,426) (423,309) 37%

Increase (decrease) of cash and cash equivalents 292,422 249,306 -15%

Cash and cash equivalents at the beginning of the period 146,086 438,508 200%

Cash and cash equivalents at the end of the period 438,508 687,814 57%

44

IR Contacts:

ri@paranapanema.com.br+55 11 2199-7914/7945

http://ri.paranapanema.com.br

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