Classification of Information

Grupo de Acesso:

2Q18 Presentation

Public

Agenda

Usiminas and its

business units

Market

Outlook

Financial Results Usiminas

Profile

2

Company Profile

3

Complete solution for products and services

Steel company with the largest number of patents rights in Latin America

Largest Research Center in the steel sector 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

4

Operation

Start Up

Cosipa

privatization

Launch of

ADR I program

on the OTC

Market (New

York)

•Acquisition

of iron ore

mines

•Acquisition

of

Zamprogna

•Creation of Soluções Usiminas

•One CNPJ: Usiminas

incorporates Cosipa

•Creation of Mineração Usiminas

•Acquisition of Codeme

and Metform stake

Automotiva

Usiminas

Divestment

•Selling of

Ternium stake

•Joint Mining

Agreements

with MBL e

Ferrous

Entrance of

Ternium /

Tenaris into

Usiminas

Control Group

(New

shareholders

agreement)

•Usiminas

privatization

•Listing on

BOVESPA

1993

Listing on

LATIBEX

stock

exchange

section

2011

2012 1962

2005

1994

2013

1991

2008

2010

2009

2014

Friables Project

conclusion on Mining

2015

Temporary

shutdown

of the

primary

areas in

Cubatão

2016

•R$ 1 billion

capital

increase

•Debt

Renegotiation

2017

R$ 1 billion

Mineração

Usiminas’

capital

reduction

2018

BF #1 Relight in Ipatinga (Shutted

down in Jun. 2015)

Timeline

Control Group:

68,57% of Voting Capital

Total Capital

1,253,079,108

Voting Capital Preferred

ON 56.28% 705,260,684 PN 43.72% 547,818,424

Shareholding Composition

5

Usiminas shares are traded on B3 (São Paulo), on the OTC Market (New York) and on a LATIBEX exchange

section (Madrid).

Nippon Group

0.57%

Others

97.64%

Ternium/Tenaris Group 1.79%

Controllers Agreement

Nippon Group

31.45%

Usiminas Pension

Fund

4.84%

Others

23.19%

Nippon Group

0.95%

Ternium/Tenaris Group 7,29%

Ternium/Tenaris

Group

32,28%

6

Complete Solution for Products and Services

Business Units

Mineração Usiminas

Mining

Steel

Ipatinga Plant

Cubatão Plant

Unigal Usiminas

Steel Processing

Soluções Usiminas

Capital Goods

Usiminas Mecânica

DOWNSTREAM UPSTREAM

Mining

Steel

Steel Processing

Capital Goods

Strategically Located

7

Social and Environmental Initiatives

8

Usiminas Cultural Institute

Usiminas invested over R$260 million,

encouraging around 2,000 social projects First educational institution in Brazil

to obtain ISO 9001

São Francisco Xavier School

Márcio Cunha Hospital

Reference center in healthcare all over Brazil

Xerimbabo Usiminas Project Promotes protection and environmental education

free of charge for more than 2 million young people

Note: The prices are adjusted by removing the effects of events such as Bonus and Unfolding

9

Shares’ Quotation on B3 R$/share - Up to 06/30/2018

11.62

10.55

12.30

4.02

8.26

10.83 11.23

10.12 10.52

5.05

1.55

4.10

9.10

7.32

2012 2013 2014 2015 2016 2017 2Q18

USIM3 USIM5

Agenda

Usiminas and its

business units

Market

Outlook

Financial

Results

Usiminas Profile

10

24.1

34.4

37.5

43.3

71.1

71.3

81.6

101.4

104.7

831.7

Italy

Brazil

Turkey

Germany

South Korea

Russia

USA

India

Japan

China

World Crude Steel Market in 2017

Million Tons

Source: World Steel Association/OECD

11

Nominal

Capacity

2,351

Production

1,690

Excess of Capacity 661

36%

22%

16%

10%

4%

2% 1%

9%

China

Asia and Oceania

European Union

North America

South America

Europe (others)

Africa

Others

49%

22%

10%

7%

3% 3%

1% 6%

World Crude Steel Production

1,348 million tons 1,690 million tons

12 Source: World Steel Association

2017 2007

*Except China

+25%

Brazilian Flat Steel Market

13

Million Tons

Source: Instituto Aço Brasil / Usiminas – Excludes Slabs

14.3

11.9

15.2 14.3

14.9 15.0 14.2

13.4

12.3

13.7 13.1

10.2

14.5 13.7

14.3 14.7

13.2

10.6

9.3

10.4

7%

11%

22%

14% 13% 12%

15% 15%

8%

13%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production Consumption Imports

Auto Industry

and Autoparts Oil and Gas Pipelines

Agricultural and

Road Machinery

Heavy Plates and

Hot Rolled

Civil

Construction

Household

Appliances

Cold Rolled and

Galvanized

14

Flat Steel Consumption Markets

Hot Rolled,

Cold Rolled and

Galvanized

Heavy Plates,

Hot Rolled,

Cold Rolled and

Galvanized

Heavy Plates and

Hot Rolled

Heavy Plates and

Hot Rolled

Agenda

Usiminas and its

business units

Market

Outlook

Financial

Results

Usiminas Profile

15

840 882 894

919

834

150 134

196 170

143

990 1,016

1,090 1,089

977

2Q17 3Q17 4Q17 1Q18 2Q18

Exports Domestic Market

16

Vendas de Aço – Siderurgia - Trimestral SALES VOLUME- STEEL Thousand tons- Quarterly

-9%

-10%

34%

25%

11%

10%

4%

4%

4% 3%

2%

1%

1% 1%

2Q18

37%

27%

1%

6%

5%

2%

5%

3%

4%

4% 6%

1Q18

Argentina

Germany

Spain

Belgium

United Kingdom

Portugal

Vietnam

Mexico

Colombia

Italy

France

Switzerland

Others

17

Europe: 56% Europe: 49%

EXPORTS – MAIN MARKETS

%

38%

13% 11%

8%

7%

6%

5%

3%

0% 9%

1Q18

Other Raw Materials

Coal and Coke

Labor (direct and indirect)

Energy and Fuels

Iron Ore and Pellets

Spare Parts

Depreciation

Structural Expenses

Inventories Variation

Others

45%

15%

12%

9%

9%

7%

6%

3%

-15%

9%

2Q18

Steel Business Unit

18

COST OF GOODS SOLD - COGS

Note: New consolidation methodology from 1Q18.

19

EBITDA AND EBITDA MARGIN Steel Business Unit – Quarterly - R$ Million

498 438

405

569

471

(62)

533

20%

17%

15%

19%

16%

18%

2Q17 3Q17 4Q17 1Q18 2Q18

Reported EBITDA RS government tax provision

Reported EBITDA Margin EBITDA and EBITDA Margin excluding provision

Capacity increase to generate finished products

7.2 million t 9.7 million t

(2010) (2014)

Investments

20

Steel Business Unit

Slabs

Heavy Plates

Hot Rolled Cold Rolled

Hot dip galvanized Electrogalvanized

Total Hot Rolled Cold Rolled Heavy Plates Electrogalvanized HDG

2,200 Total production capacity of

products for sale 4,200 1,900 1,020 350

Galvanized

Theoretical nominal capacity * of production and sale

21

* According to the theoretical mix of sales in the implementation of the line;

** Excluding the temporarily suspended capacities of Heavy Plates and Hot Strip Laminator #1 in Cubatão.

2,200 2,070 900 900 350 Generation of products for sale

with the equipment in operation **

9,670

6,620

Crude steel capacity of 9.5 million tons, being 5 million tons in Ipatinga and 4.5 million in Cubatão, which had the operation of its

primary areas temporarily suspended and currently processes acquired plates.

Thousand Tons

Start up in 2010

Meets the requirements of

Petrobras, focused on pre-

salt, besides the

shipbuilding sector

CLC Technology (Accelerated Cooling Process for Heavy Plates)

Galvanizing Line

Start up in 2011

Double the capacity to 1

million tons /year

Higher expertise in ultra-

resistant steel production

(dual phase)

22

Investments Steel Business Unit

Start up in 2012

Capacity to process 2.3 million

tons / year

Improving products’ portfolio

(beams, ultra resistant wheels,

higher grades API’s)

Hot Strip Mill

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

Pickling Line

23

Investments Steel Business Unit

o Met coke with adequate specifications for pig iron production in the blast furnace process

o Started up on May 2015

24

Coke Plant Revamp - Ipatinga

o Reduction of particle emissions, gases and volatile substances

o Coke gas to be used in the operational

facilities of Ipating Mill and electric energy

production

o Coke plant total capacity of 1,1 million

tons/year

Mainly Investment Concluded in 2015 Steel Business Unit

o Located in Serra Azul/Minas Gerais state

o 4 mining sites, acquired from J. Mendes in February, 2008

o Reserves of 2.6 billion tons of iron ore

o It has 20% of voting shares of MRS Logistica, being part of the Control Group

o Retroarea in Itaguaí Port

Description

25

Mining Business Unit

Production Capacity

Lump 2 million

Sinter Feed

4 million

Pellet Feed

6 million

70%

30%

Shareholder Composition

MBL

Arcelor Mittal

Ferrous (Santanense)

Comisa Emicon

MMX

Ferrous

MUSA Pau de Vinho

MUSA Leste

Minerita

MUSA Central

MUSA Oeste

Itatiaiuçu

Igarapé São Joaquim De Bicas

Mineração Usiminas

Location

Mining Business Unit

26

Increased capacity from 8 million to 12 million tons / year of iron ore

Iron ore with better quality, higher concentration of iron content and

lower impurity level

Two iron ore processing plants

Friables Project

27

Investments

Mining Business Unit

596 676

605 555 569

33

53 179 167 136

175

716

1,084

681

629

904

1,500

1,806

1,386

2Q17 3Q17 4Q17 1Q18 2Q18

Sales to Usiminas Sales to 3rd parties - Domestic Market Exports Total

28

-23%

IRON ORE SALES - MINING

Thousand tons- Quarterly

63 71

66

74

65

2Q17 3Q17 4Q17 1Q18 2Q18

Iron Ore Price - US$/t CFR China

29

IRON ORE PRICE – PLATTS (62% FE CFR CHINA)

US$/ton

226

27 41 49

33

253%

22% 20% 19% 16%

2Q17 3Q17 4Q17 1Q18 2Q18

Reported EBITDA Reported EBITDA Margin

EBITDA AND EBITDA MARGIN

30

Mining Business Unit – Quarterly - R$ Million

*Extraordinary effect of R$ 201 million from Porto Sudeste’s agreement

*

o 6 industrial units in different Brazilian states:

MG, SP, RS, ES and PE

o Processing capacity of 2 million tons of

steel/year

o Net Revenue of R$1.5 billion in 1H18

Description Soluções Usiminas - Steel Processing

31

Porto Alegre

Guarulhos

Taubaté

Suape

Betim

Santa Luzia

32

EBITDA AND EBITDA MARGIN

Steel Transformation - Soluções USIMINAS – Quarterly - R$ Million

27

18 19

29

37

5%

3% 3%

4%

5%

2Q17 3Q17 4Q17 1Q18 2Q18

Reported EBITDA Reported EBITDA Margin

o Facilities in Ipatinga/Minas Gerais state, Congonhas/Minas Gerais state and in

Cubatão/São Paulo state

o Market Segments: Steel Structures, Shipbuilding and Offshore, Oil and Gas, Industrial

Assembly and Equipment, Foundry and Railcars

o Net Revenue of R$215 million in 1H18

Usiminas Mecânica - Capital Goods

Description

Brasília 3rd Bridge

33

Steel Structures

(2)

(25)

(2)

33

(20) -2%

-35%

-4%

29%

-20%

2Q17 3Q17 4Q17 1Q18 2Q18

Reported EBITDA Reported EBITDA Margin

34

EBITDA AND EBITDA MARGIN

Capital Goods – USIMINAS Mecânica – Quarterly - R$ Million

*

*Extraordinary effect of R$ 22 million negative, related to Regularize Program adherence.

Agenda

Usiminas and its

business units

Market

Data

Financial

Results

Usiminas

Profile

35

36

EBITDA AND EBITDA MARGIN

Consolidated – Quarterly - R$ Million

* **

*Extraordinary effect of R$ 201 million from Porto Sudeste’s agreement

**Extraordinary effect of R$ 40 million negative, related to Regularize Program adherence.

750

453 450

641

519

(62)

581

29%

17%

15%

20% 18%

2Q17 3Q17 4Q17 1Q18 2Q18

Reported EBITDA Provisão ICMS RS

Reported EBITDA Margin EBITDA and EBITDA Margin excluding provision

16%

926

5 77

331

610

877 875 874 873

107

177

0 18

89

167

242 242 242 242

30

1,104

5 95

420

778

1,119 1,116 1,116 1,115

137

Cash 2018 2019 2020 2021 2022 2023 2024 2025 2026

Local Currency Foreign Currency

Duration: R$: 48 months US$: 54 months

37

Consolidated – R$ millions

DEBT PROFILE (PRINCIPAL)

1,951 2,138 2,314

1,563 1,104

4,998 4,722 4,342

4,117 4,739

6,949 6,860 6,656

5,680 5,843

2Q17 3Q17 4Q17 1Q18 2Q18

Net Debt Cash Gross Debt

CASH POSTION AND INDEBTEDNESS (WITH INTEREST)

Duration : R$: 48 months US$: 54 months

38

Consolidated – R$ millions

39

CAPEX Consolidated – R$ millions

25

43

90

56 57 2

1

4

1 1

2

3

4

4 3

5

5

9

4 6

34

52

107

65 67

2Q17 3Q17 4Q17 1Q18 2Q18

Steel Capital Goods Steel Transformation Mining Total

40

G&A EVOLUTION - CONSOLIDATED

R$ million

97

106 109

103

113

3.8% 3.9% 3.5%

3.2% 3.5%

2Q17 3Q17 4Q17 1Q18 2Q18

G&A G&A/Net Revenues

3.1 3.1

2.8 3.0

3.7

2Q17 3Q17 4Q17 1Q18 2Q18

41

Consolidated – R$ billions

WORKING CAPITAL

+22 %

181

254

195

208

190

271

620 599

554 566

733

2Q17 3Q17 4Q17 1Q18 2Q18

Slabs (In progress and finished) Products in progress Finished Products

Inventory turnover (days)

56 54 47 47 68

42

WORKING CAPITAL: STEEL INVENTORIES

Thousand tons

+43%

+7%

+40%

382 358

414

612

583

367

107

71

324

209

176

76

(45)

157

(19)

2Q17 3Q17 4Q17 1Q18 2Q18

Gross Profit EBIT Net Income43

USD/BRL 3.308 3.168 3.308 3.324 3.856 END OF PERIOD

GROSS PROFIT, EBIT AND NET INCOME

Consolidated - R$ million

INCOME STATEMENT

Per Business Unit – R$ million - Quarterly

Note: All intercompany transactions are made at arm´s length basis

44

R$ million

2Q18 1Q18 2Q18 1Q18 2Q18 1Q18 2Q18 1Q18 2Q18 1Q18 2Q18 1Q18

Net Revenue 202.1 251.9 2,923.6 3,003.4 770.6 702.8 101.6 113.3 (793.8) (827.2) 3,204.1 3,244.2

Domestic Market 79.3 77.1 2,498.9 2,580.3 770.3 702.8 101.6 113.2 (793.8) (827.2) 2,656.3 2,646.2

Exports 122.8 174.8 424.7 423.0 0.3 0.1 - 0.1 - - 547.8 598.1

COGS (140.2) (178.6) (2,389.8) (2,460.1) (721.1) (656.0) (111.0) (73.8) 740.9 736.4 (2,621.3) (2,632.1)

Gross Profit (Loss) 61.9 73.2 533.8 543.3 49.5 46.8 (9.5) 39.6 (52.9) (90.8) 582.8 612.1

Operating Income (Expenses) (58.4) (56.4) (285.5) (195.5) (20.0) (26.1) (15.2) (11.6) 5.4 1.1 (373.7) (288.5)

Selling (19.1) (25.3) (39.0) (36.7) (11.2) (9.8) (3.2) (3.2) (1.1) (1.2) (73.7) (76.1)

General and Administrative (7.0) (6.3) (85.1) (77.7) (14.7) (13.3) (9.5) (8.8) 3.4 3.3 (112.9) (102.8)

Others, Net (32.4) (24.8) (161.4) (81.1) 5.9 (3.0) (2.5) 0.3 3.2 (1.1) (187.2) (109.6)

EBIT 3.4 16.9 248.2 347.8 29.5 20.7 (24.7) 27.9 (47.4) (89.7) 209.1 323.6

Adjusted EBITDA 33.3 49.0 470.6 568.6 37.3 28.5 (19.9) 32.7 (2.4) (37.7) 518.8 641.2

Adj.EBITDA Margin 16.5% 19.5% 16.1% 18.9% 4.8% 4.1% -19.6% 28.9% 0.3% 4.6% 16.2% 19.8%

*Consolidated 70% of Unigal   

Consolidated

Income Statement per Business Units - Non Audited - Quarterly

Mining Steel*Steel

ProcessingCapital Goods Adjustment

INCOME STATEMENT

Per Business Unit – R$ million – Semi-annually

Note: All intercompany transactions are made at arm´s length basis

45

R$ million

2H18 2H17 2H18 2H17 2H18 2H17 2H18 2H17 2H18 2H17 2H18 2H17

Net Revenue 454.0 197.5 5,926.9 4,676.3 1,473.4 1,156.7 214.9 163.1 (1,621.0) (1,273.3) 6,448.3 4,920.3

Domestic Market 156.3 197.5 5,079.2 4,078.5 1,473.1 1,156.3 214.8 162.4 (1,621.0) (1,273.3) 5,302.4 4,321.3

Exports 297.6 - 847.7 597.8 0.4 - 0.1 0.7 - - 1,145.8 599.0

COGS (318.9) (106.2) (4,849.8) (3,908.7) (1,377.1) (1,060.6) (184.8) (157.3) 1,477.3 1,175.4 (5,253.4) (4,057.4)

Gross Profit (Loss) 135.1 91.3 1,077.1 767.6 96.3 96.1 30.1 5.8 (143.7) (97.8) 1,194.9 863.0

Operating Income (Expenses) (114.8) 108.5 (481.0) (350.6) (46.1) (47.9) (26.8) (23.7) 6.5 2.1 (662.2) (311.6)

Selling (44.4) (6.1) (75.7) (79.0) (21.1) (24.3) (6.4) (6.1) (2.3) (2.3) (149.8) (117.8)

General and Administrative (13.3) (10.6) (162.8) (143.6) (28.0) (26.1) (18.3) (15.7) 6.7 6.2 (215.7) (189.8)

Others, Net 20.3 199.8 596.1 417.0 50.2 48.2 3.3 (17.9) (137.2) (95.8) 532.7 551.3

EBIT 20.3 199.8 596.1 417.0 50.2 48.2 3.3 (17.9) (137.2) (95.8) 532.7 551.3

Adjusted EBITDA 82.3 277.4 1,039.2 962.9 65.8 64.2 12.8 (5.7) (40.1) (16.1) 1,160.0 1,282.6

Adj.EBITDA Margin 18.1% 140.4% 17.5% 20.6% 4.5% 5.6% 6.0% -3.5% 2.5% 1.3% 18.0% 26.1%

*Consolidated 70% of Unigal   

AdjustmentMining Steel* Steel Processing Capital Goods

Income Statement per Business Units - Non Audited - Semi-annually

Consolidated

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.

www.usiminas.com/ri

ADR

Nível I

Leonardo Karam Rosa IR Manager

leonardo.rosa@usiminas.com Tel: 55 31 3499-8550

Danielle Ap. Maia IR Analyst

danielle.aparecida@usiminas.com Tel: 55 31 3499-8550

Investors Relations